EN Official Journal of the European Union CE 84/63

(2004/C 84 E/0069)

WRITTEN QUESTION E-3491/03

by Ilda Figueiredo (GUE/NGL) to the Commission

(24 November 2003)

Subject: Single payment within the reform of the COM in olive oil

The Commission Communication on ‘accomplishing a sustainable agricultural model for Europe through the reform of the CAP — the tobacco, olive oil, cotton and sugar sectors’ (1) final states that ‘adhesion to the single farm payment’ — instead of the existing production-linked payments — ‘enables low input olive oil producing regions to maintain their overall level of income support’. But the Communication also states that this single payment ‘could bring problems to certain traditional producer regions’ and that ‘there exists a significant risk of widespread disruption to olive tree maintenance’, particularly ‘where such areas manifest a high dependency on the olive sector in their local economies’. In its previous attempts at reform, the Commission tried to abolish the current production aids against the wishes of the producer countries, who resisted the attempts, pointing out the significant risk of ‘production abandonment’. The current proposal, forming part of the recent CAP reform, goes further still, by uncoupling production subsidies.

The Commission:

1. How does it assess the impact of this proposal in the case of Portugal, specifically in terms of olive grove production in traditional producer regions? Does the Commission not believe that ending production-linked payments will seriously reduce and concentrate olive oil production, with both social and environmental repercussions?

2. How does it, given the partial uncoupling of aid based on hectares or per tree, intend to guarantee that farmers will receive the same amount as before?

3. What overall result does it envisage from ending the differentiated payments to small producers under the previous reform? How does it view the introduction of a compensatory payment for small producers?

Answer given by Mr Fischler on behalf of the Commission

(22 December 2003)

Oil sales are already producers' main source of income. On average Community support accounts for only one third of it. Thus the market rather than production aid is the essential factor inducing growers to maintain their trees and pick the olives. The reform proposal does not alter this balance and the Commission does not expect significant production reductions. Further, with the new aid for maintaining olive groves Member States will be able to concentrate support where for social or environmental reasons it is most needed.

In addition the general provisions of Regulation (EC) No 1782/2003 (2) make direct payments conditional on keeping the land in good agricultural and environmental condition. Thus Member States will be able to refuse to pay direct aid unless olive groves are maintained in good condition but they will not be able to require that the olives be harvested.

Under the CAP reform principles the overall support for the olive sector in each Member State remains that of the reference period. At individual level the proposal guarantees that producers will receive in the form of the single payment at least 60 % of the aid received during that period. The fact that this amount is decoupled will help stabilise growers' incomes since alternation, an important phenomenon in low production zones, will have no impact on the aid. On the other hand the aid for maintaining olive groves will not be granted on a historical basis but in line with their varying social and environmental importance.

Discontinuing the system of a fixed payment to small producers in 1998 served the Commission's intended purpose of stopping fraudulent double payments.

Under the Commission's proposal producers with less than 0,3 hectares will have 100 % of the aid received during the reference period converted to single payment entitlement. This will simplify their management and guarantee their present income level. They wili also have access to the olive grove maintenance aid on the same terms as other growers.

(1) COM(2003) 554 final.

(2) Council Regulation (EC) No 1782/2003 of 29 September 2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers and amending Regulations (EEC) No 2019/93, (EC) No 1452/2001, (EC) No 1453/2001, (EC) No 1454/2001, (EC) No 1868/94, (EC) No 1251/1999, (EC) No 1254/1999, (EC) No 1673/2000, (EEC) No 2358/71 and (EC) No 2529/2001, OJ L 270, 21.10.2003.