WRITTEN QUESTION P-2119/01

by Fernando Fernández Martín (PPE-DE) to the Commission

(10 July 2001)

Subject: Payment of compensatory aid to Canary Island banana producers

Pursuant to Regulation 404/93(1) and subsequent amendments thereto, Canary Island banana producers receive aid to compensate for loss of income. Hitherto, such aid has been paid to producer organisations or individual producers every two months as a supplement to the payment of an advance previously calculated by the Commission on the basis of actual market prices. In 2000 the aid was approximately ESP 63 per kilo of bananas actually placed on the market. For the same year the payment advanced by the Commission was approximately ESP 47 per kilo. However, the two-monthly payments which should have been made for 2000 have still not been effected despite the length of time which has elapsed - i.e. the difference between the ESP 47 per kilo actually received and the ESP 63 per kilo to which Canary Islands banana producers are entitled on the basis of prices actually recorded on the market has not been paid.

Furthermore, the amounts for the first and second two-month periods of 2001 have not yet been paid either, despite the fact that they have already been calculated by the Commission and were published in the Official Journal of the European Communities nearly two months ago.

As a result of these delays (which have yet to be accounted for), Canary Island banana producers are still awaiting the sum of approximately ESP 8 000 million to which they are entitled, if the arrears corresponding to the outstanding payments for 2000 and the first two two-month periods of 2001 are included.

What is the cause of the considerable delay which has accumulated (and which has no precedent in earlier years), who is responsible for the serious losses suffered by Canary Island banana producers, which administrative department is responsible for the delay and what action is to be taken by the Commission in order to ensure that the outstanding payments are made immediately?

(1) OJ L 47, 25.2.1993, p. 1.

Answer given by Mr Fischler on behalf of the Commission

(4 September 2001)

Commission Regulation (EC) No 1195/2001 of 18 June 2001 fixing the compensatory aid for bananas produced and marketed in the Community in 2000, the time limit for payment of the balance of the aid and the unit value of the advances for 2001 was published in the Official Journal on 19 June 2001(1). Article 3 of this Regulation gives the Member States' authorities two months from the entry into force of the Regulation to pay the balance of the compensatory aid to be granted in respect of 2000 and the advance for bananas marketed during January and February 2001.

The procedure for the annual fixing of compensatory aid involves a series of tasks which all take time if the data is to be correct and reliable. This may explain why the annual regulation on compensatory aid is sometimes adopted and published late.

The Commission would also point out that it adopted Regulation (EC) No 471/2001 of 8 March 2001 amending Regulation (EEC) No 1858/93 laying down detailed rules for applying Council Regulation (EEC) No 404/93 as regards the aid scheme to compensate for loss of income from marketing in the banana sector. This Regulation provides for the payment of a sixth advance for bananas marketed during the months of November and December to take account of cash-flow problems on the part of producers, pending the determination of the compensatory aid and payment of the balance.

(1) OJ L 162, 19.6.2001.