WRITTEN QUESTION E-3554/01

by Antonios Trakatellis (PPE-DE), Ioannis Marínos (PPE-DE)and Christos Folias (PPE-DE) to the Commission

(8 January 2002)

Subject: Community Tobacco Fund: unused appropriations and further undue deductions from tobacco premiums

At a time when Greek tobacco processing organisations are complaining that the Community tobacco fund(1) has not spent a single euro of the 60 million euro in accumulated deductions over the three-year period 1999-2001 on agronomic research programmes to improve tobacco quality or alternative crop programmes, the Commission is attempting to impose a further unacceptable increase in the deductions from tobacco-producers' premiums used to finance the Community fund's research and information activities in the tobacco sector, thereby cutting their incomes.

With reference to the proposal for a Council Regulation(2) fixing the premiums and guarantee thresholds for leaf tobacco by variety group and Member State for the 2002, 2003 and 2004 harvests and amending Regulation (EEC) No 2075/92(3):

1. Why is the Commission seeking unduly to impose a deduction for financing the Community tobacco fund of 2 % of the premium for the 2002 harvest, 3 % for 2003 and 5 % for 2004 onwards (Article 3, paragraph 1) when there are unused appropriations remaining in the fund, and why is it seeking to abolish agronomic research in respect of this product?

2. What is the total amount of appropriations to have accumulated in the Community tobacco fund since 1992, the year in which it was established, and what amounts of appropriations have been spent per year since 1992 on the development of agronomic research into the production of less harmful tobacco, and carrying out health awareness campaigns?

3. What becomes of the unused appropriations from the Community tobacco fund, given that in 1999 only 128 308,76 euro of the 3 000 000 euro available were taken up? What amount of appropriations from the 6 000 000 euro available in 2000 and the 15 000 000 euro available in 2001 have been taken up?

4. Is it true that for the three-year period between 1999 and 2001 alone, over 60 million euro remain unused? If so, why is the deduction from tobacco-producers' premiums being increased to 5 % when the fund contains leftover appropriations?

5. Why has no finance been forthcoming to date for research into alternative crops? Can the Commission explain why only two invitations to submit projects have been issued since the inception of the fund, from which a total of nine agronomic research projects (totalling 12 441 220 euro) and 18 health awareness projects (totalling 7 898 079 euro) have received funding?

(1) Regulation (EC) No 1648/2000, OJ L 189, 27.7.2000, p. 9.

(2) COM(2001) 684.

(3) OJ L 215, 30.7.1992, p. 70, as last amended by Regulation (EC) No 1336/2000 (OJ L 154, 27.6.2000, p. 2).

Answer given by Mr Fischler on behalf of the Commission

(1 March 2002)

The Commission wishes to provide the Honourable Members with the following information:

- The Community tobacco fund was originally set up to promote agronomic research into production which is less harmful and more compatible with the environment, and to conduct information campaigns on the harmful effects of tobacco products. Experience showed that, with regard to agronomic research, the Community dimension did not contribute sufficient added value to justify and offset the complexity of managing such activities at Community level.

- Accordingly, and in view of the new guidelines contained in the Commission communication A sustainable Europe for a better world: a European Union strategy for sustainable development(1), the Commission decided to propose recasting the fund on a new basis by ceasing to finance agronomic research and by creating scope for financing specific conversion measures. The aim was to give producers wishing to move out of the sector the opportunity to switch to other crops and economic activities.

- In keeping with that new priority, it was deemed necessary to increase the amount withheld in order to make more budgetary resources available for the fund.

- The Commission considers that increasing the amount withheld will make it possible to launch representative conversion experiments which will provide valuable lessons on the real scope for converting tobacco production areas.

Regarding the questions about appropriations:

- It should be noted that the fund is not a real one into which the yield from the amounts withheld is paid annually. The Commission launches initiatives which are financed under the ad hoc heading Community fund for research and information (B1-175). The appropriations under that heading correspond to the estimated costs actually incurred during the financial year in question.

- The fund was set up pursuant to Article 13 of Council Regulation (EEC) No 2075/92 of 30 June 1992 on the common organisation of the market in raw tobacco and Commission Regulation (EEC) No 2427/93 of 1 September 1993 laying down detailed rules for the application of Council Regulation (EEC) No 2075/92 with regard to the Community fund for tobacco research and information(2). The first invitation to tender was issued in 1994 and the second in 1996.

The contract for the first research project (94/T/12) was signed in 1996 and the projects' duration is 4-5 years.

Payments by the fund are made following on-site inspection, and are based on evaluation of progress with scheduled work and on relevant supporting documents.

In the light of previous information and an extensive administration procedure, the appropriations utilised from 1996 onwards are set out below.

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It should be noted that, for 2001, 7 492 233,88 have been committed to the information component and 1 699 329 to the research component. The corresponding payments not yet made will be automatically carried forward for use in 2002.

Under the information component, on 13 June 2001 the Commission issued an invitation to tender for a three-year information campaign on preventing tobacco addiction among adolescents in the 15 Member States.

Unused budget appropriations are cancelled.

Studies on the possibilities for raw tobacco producers to switch to other crops or activities (as provided for in Article 1(1)(b) of Commission Regulation (EC) No 1648/2000 of 25 July 2000 laying down detailed rules for the application of Council Regulation (EEC) No 2075/92 with regard to the Community tobacco fund and repealing Regulation (EEC) No 2427/93) must take careful account of the local conditions with which those opportunities have to be compatible.

Under the new conversion measures proposed by the Commission, it would be possible to carry out studies at the appropriate regional or local level to form the basis for implementing operational measures.

(1) COM(2001) 264 final.

(2) OJ L 223, 2.9.1993.