WRITTEN QUESTION P-3134/01

by Jan Mulder (ELDR) to the Commission

(6 November 2001)

Subject: Impact of public funding for measures to prevent BSE

As early as January of this year, the Commission asked Member States to forward information concerning national contributions towards the cost of measures to prevent BSE and, further to the Agriculture Council meeting on 26 February 2001, the Commission announced that information on this was insufficient and of varying quality (press release of 27 February 2001). Over the last eight months, that situation has evidently remained unchanged, since, in its answer of 3 September 2001 to Written Question E-1821/01(1), the Commission again said that it did not have sufficient information in this connection.

In view of the above, why has the Commission not yet produced an overview of measures in Member States and their regions, including any policy measures needed?

In its answer of 3 September 2001 to Written Question E-1821/01, the Commission states that longer-lasting substantial differences between levels of public funding for measures to prevent BSE may have an impact on the relative competitive position of producers.

Furthermore, the considerable differences in government and to meet the cost of BSE testing, the differences in the cost of BSE tests in the Member States, and the differences in public funding for animal meal processing are resulting in artificial flows of cattle for slaughter to Member States with the lowest overall costs. The same adverse impact resulting from differences in the cost of processing animal meal is also to be found in the pig and poultry sectors.

Are such artificial trade flows involving cattle for slaughter between Member States compatible with the objectives included in EC Regulation No 1254/1999(2) for the common organisation of the market in the beef and veal sector, and does the Commission agree that, on the basis of the above considerations, it is imperative that there should be parity between national and European authorities' policies on aid to meet the cost of BSE testing and animal meal processing, and that competition between registered BSE test laboratories in the EU should be allowed, for the proper functioning of the European internal market?

On what timescale does the Commission intend to take action in this connection, and what is the general thrust of the solution it has in mind?

(1) OJ C 40 E, 14.2.2002, p. 113.

(2) OJ L 160, 26.6.1999, p. 21.

Answer given by Mr Fischler on behalf of the Commission

(6 December 2001)

The Commission has in the meantime received additional information concerning the cost of bovine spongiform encephalopathy (BSE) tests and the financing of certain measures linked to the fight against BSE. This information is currently being assessed. Since part of this information has only become available recently, this assessment has not been finalised. Once this has been done, the Commission will decide what further steps shall be taken, and to what extent further harmonisation concerning aid to meet the costs of BSE testing and animal meal processing is necessary. It is not possible to indicate a timescale yet.

The Commission does not think that the fact that operators are taking advantage of lower cost slaughter facilities or cheaper BSE tests in other Member States is a bad thing. It is rather an indication of a functioning internal market. The possibility of using cheaper slaughterhouses and taking advantage of lower costs for BSE tests in other Member States should increase overall pressure on the transformation sector to lower prices and become more competitive. Competition between registered BSE test laboratories in the Community should be allowed. All this would be to the advantage of farmers, and be in line with the objectives of Council Regulation (EC) No 1254/1999 of 17 May 1999 on the common organisation of the market in beef and veal(1).

However, if the Honourable Member has information available which would show that cross-border trade is being distorted by illegal state aids, the Commission would ask him to provide any such information to the Commission.

In the meantime, the attention of the Honourable Member is drawn to the fact that, after having given the Member State concerned the opportunity to ask for the deletion of business secrets, all decisions taken by the Commission concerning state aid related to BSE measures are made publicly available on the internet, under the following address: http://europa.eu.int/comm/secretariat general/sgb/droit com/index en.htm

aides.

(1) OJ L 160, 26.6.1999.