WRITTEN QUESTION E-2458/98

by Honório Novo (GUE/NGL) to the Council

(30 July 1998)

Subject: Bad weather and damage to agriculture in Portugal

Recent weather conditions in Portugal (torrential rain, hail and wide fluctuations in temperature) have caused serious damage in some of the country's main agricultural sectors.

The collapse in production of pears (by around 70 to 80 % at national level), cherries (around 70 % in the Beira Interior and Trás-os-Montes regions), grapes (around 60 % in the Ribatejo, Douro-Minho and Trás-os-Montes regions) and olives (above all in the Alentejo and Trás-os-Montes regions) are some of the most serious examples. It is thus clear that there will be a sharp fall in income, especially for small farms and small family farms.

Can the Council say if it will look into the possibility of helping, through additional resources, to alleviate the damage to agriculture arising from the bad weather in Portugal?

Reply

(22 October 1998)

The Council is aware of the situation caused in Portugal because of the adverse weather conditions.

It would point out that, at a general level, Article 92(2)(b) of the EC Treaty provides that "aid to make good the damage caused by natural disasters or exceptional occurrences" is compatible with the common market. Under Articles 92 and 93 of the Treaty, the Commission monitors the compatibility of systems of aid existing in the Member States.

As far as horizontal Community legislation is concerned, the Council would point out that it does not fund losses in production occasioned by bad weather.

Nevertheless, Article 5(h) of Regulation (EEC) 4256/88 laying down provisions for implementing Regulation (EEC) 2052/88 as regards the EAGGF Guidance Section(1), stipulates that the latter may provide financial assistance for restoring agricultural and forestry production potential damaged by natural disasters.

The Council would further draw the Honourable Member's attention to certain provisions laid down in the fruit and vegetables sector by Commission Regulation (EC) 411/97 of 3 March 1997 laying down detailed rules for the application of the basic regulation on fruit and vegetables as regards operational programmes, operational funds and Community financial assistance(2).

Under Article 2(5) of that Regulation, in the case of a natural disaster recorded by the competent national authorities, the last three production years - rather than just the last preceding year stipulated as the general rule - are taken into account to calculate the value of the production marketed by a producer organisation which has submitted an operational programme.

The purpose of this is to minimise the impact of a poor harvest on the determination of the ceilings on financial assistance set by the Commission, and thus avoid compromising the implementation of the operational programme in question.

Finally, Portugal has referred the problem to the Commission which, within the scope of its powers and on the basis of the dossier submitted by the Portuguese authorities, is currently looking into the feasibility of implementing specific measures compatible with Community legislation.

(1) OJ L 374, 31.12.1988, p. 25.

(2) OJ L 63, 4.3.1997, p. 9; OJ L 202, 30.7.1997, p. 45.