WRITTEN QUESTION E-0104/99

by Graham Mather (PPE) to the Commission

(2 February 1999)

Subject: Joint Relex Service

In reply to my earlier Written Question (E-3236/98)(1) about late payments by the Commission, particularly for work carried out under PHARE and TACIS contracts, the Commission stated that, "the new Joint Relex Service ... has undertaken to review the financial structure of and payment plans for technical assistance contracts and to align procedures and methods for drawing up technical assistance programmes."

1. What progress has been made in this area since 1 September 1998 and what timetable is envisaged for the implementation of the improvements identified by the review?

2. Will the review examine blockages which delay payments throughout the payment process?

3. Would the Commission comment on the fact that British companies awarded interest on payments made after more than 60 days will be penalised by the fact that the UK base rate is currently twice the level of that set by the ECB?

Answer given by Mr van den Broek on behalf of the Commission

(9 April 1999)

1. A document drawn up late last year on the simplification, consolidation and rationalisation of contracting procedures is currently being discussed by experts from the Member States. It will be adopted in accordance with the division of powers between the Council and the Commission and the usual procedures. It will permit uniform contracting procedures to be phased in for all external aid programmes.

2. The new standard contracts and simplified methods to speed up payments are now being finalised. Given the legal complexity of the work to be carried out and the great number of contracts to be rationalised, work will be spread across this year and the beginning of next year.

The new contracts for use by the external relations directorates-general and the terms of reference for invitations to tender (general conditions) will be completely overhauled and modernised by the summer of next year. Next year should see a significant improvement in payment procedures for all new contracts, but progress should begin to become apparent this year as work advances in the sectors already rationalised.

The Commission would point out that last year, pending this future harmonisation effort, it made a special effort to improve the processing of Phare and Tacis invoices, improving matters considerably. The situation should increasingly return to normal over the months ahead. The Commission would refer the Honourable Member to its answers to his written question E-3236/98 and Mr Cassidy's written question E-3500/98(2).

3. The rate of interest applicable in case of late payments by the Commission is calculated by reference to the rate applied to recovery of debts (Article 94 of the Commission Regulation (Euratom, ECSC, EC) No 3418/93 of 9 December 1993 laying down detailed rules for the implementation of certain provisions of the Financial Regulation of 21 December 1997(3)). This harmonised treatment of all the Community contracts ensures an equal treatment of debts within the Community. The differences of rates applicable to commercial debts should be abolished by the forthcoming "late payments directive"(4).

(1) OJ C 182, 28.6.1999, p. 53.

(2) OJ C 320, 6.11.1999, p. 51.

(3) OJ L 315, 16.12.1993.

(4) COM(98) 126 final.