WRITTEN QUESTION E-2351/01

by Marie-Arlette Carlotti (PSE) to the Commission

(3 August 2001)

Subject: Implementation of technical and financial assistance measures for ACP banana producers

In 1999 the European Union adopted a set of technical and financial assistance measures for a period of ten years (until 2008) in favour of traditional ACP banana suppliers (Council Regulation (EC) 856/1999(1) and Commission Regulation (EC) 1609/1999(2)) to improve their competitiveness and promote their adjustment to new market conditions which will enter into force in 2006.

ACP producers should benefit from such measures as rapidly as possible.

However, problems in the management of this assistance and the complexity of its procedures are causing delays in consideration of applications and the payment of the relevant funds. No payment has yet been made.

Clarifications are therefore required.

What steps does the Commission intend to take to put an end to these delays and speed up payments?

What are the Commission's intentions regarding the schedule for payment of funds under the assistance programme? Does the Commission plan, in particular, to make most of the payments in the early part of the period (before 2006)? What specific measures are planned to provide financial support and guidance for ACP producers who do not have long experience of the European market?

(1) OJ L 108, 27.4.1999, p. 2.

(2) OJ L 190, 23.7.1999, p. 14.

Answer given by Mr Nielson on behalf of the Commission

(18 October 2001)

In the period to 15 August 2001 Council Regulation (EC) No 856/1999 of 22 April 1999 establishing a special framework of assistance for traditional ACP suppliers of bananas and Commission Regulation (EC) No 1609/1999 of 22 July 1999 laying down detailed rules for the implementation of Regulation (EC) No 856/1999 were implemented in the following manner:

In the 1999 budget the Commission earmarked45 million for projects under the special framework of assistance for traditional ACP suppliers of bananas established by the above Regulations. Subsequent budget allocations were44 475 000 for 2000 and44 million for 2001. The allocation in the preliminary draft budget for 2002 is45 million.

Under the 1999 budget financing agreements were signed with nine of the 12 traditional ACP suppliers for projects totalling44.5 million. The following year saw ten agreements signed for a total of44 075 million. Overall, the signatories earmarked 77 % of funding for improving the competitiveness of their bananas in 1999 and 73 % the following year, using the rest for diversification.

Projects for financing under the 2001 budget were still being appraised at 15 August 2001.

At that date disbursements totalled9 862 million. This figure has to be set against the fact that the first project financing agreements were only signed by the Commission in August 2000 and by the beneficiary countries in the period September 2000-February 2001. The conclusion of these agreements was beset by legal problems: this being a ten-year programme with 12 beneficiary countries and, therefore, a potential 120 agreements, the Commission had to develop a system that was as simple and harmonised as the rules in force allowed. For their part, the signatory countries encountered problems arising from the fact that the status of the ultimate beneficiaries differed considerably from one country to another: from one, wholly state-owned production company in Suriname to thousands of small family plantations in the Windward Islands.

Disbursements are expected to speed up in the latter half of this year now that 19 agreements detailing specific aid arrangements have been signed.

As for the schedule of payments, the Commission has complied with Article 1(2) of Council Regulation (EC) No 856/1999 by providing an overall annual allocation since 1999, an allocation which has varied from44 to45 million for the first four years. From 2004 onwards Article 7(2) of that Regulation stipulates a maximum reduction coefficient of 15 % is to be applied to the level of assistance.

With regard to ACP producers with little experience of the European market, Article 3 of Commission Regulation (EC) No 1609/1999 provides for the competitivity gap, and therefore the financial allocation, to be determined not just by the difference between the reference price for third countries and the ACP reference price, but by the reference quantity. Though the latter is 0 tonnes for Madagascar, 20 tonnes for Cape Verde and 2 222 tonnes for Grenada, Article 6 of the same Regulation provides that where the calculation of a country's allocation results in an amount lower than500 000 per year, a minimum amount of500 000 is automatically allocated. This rule, which has been applied to the three countries concerned in the 1999, 2000 and 2001 budget years, constitutes special protection for producers with little experience of the European market.