WRITTEN QUESTION E-0430/97 by Sebastiano Musumeci (NI) to the Commission (19 February 1997)

Subject: Extension of deadline for payment of fines for exceeding milk quotas

1. The quota arrangements for Community milk production aimed at maintaining prices are acceptable so long as their application does not generate imbalances between production potential and domestic demand in the various Member States.

2. The fine imposed wherever quotas are exceeded is a legitimate penalty so long as the producers concerned are directly and consciously responsible for the offence.

3. In Italy, the fact that many farmers have exceeded the quotas is not due to a voluntary act on their part but

(a) to the incompetence of an Italian minister who, at the time of the Community negotiations, merely accepted a quota equal to slightly more than half of Italian domestic demand, thereby condemning Italy to become a net importer of milk from Germany, France and the Netherlands, whose quota is far higher than their internal demand;

(b) to the inconsistencies inherent in the various Italian laws which, in addition to the superficial and even dishonest attitude of trade union organizations and professional associations and the general confusion that has for a long time characterised the relevant government departments, have misled many Italian farmers: on the one hand, they were encouraged to produce more and more, and on the other they were informed of quantitative restrictions when they had already exceeded the relevant quotas. At the same time, the scandalous 'paper quota' market was being set up and encouraged, while milk imports at unbeatable prices from non-Community countries were being promoted.

Without calling for a reduction in the fines, I would ask the Commission to consider extending the deadline for payment so that investigations can be carried out into the degree of responsibility of administrative departments, trade union organizations and professional associations.

Answer given by Mr Fischler on behalf of the Commission (17 March 1997)

The Commission considers that when quotas were introduced in Italy producers were given several opportunities to rectify errors made in the allocation of individual reference quantities. This could have been done either through the regional authorities or by a direct approach to the State Board for Agricultural Market Intervention (AIMA), in both cases without prejudice to legal action.

As regards payment of the additional levy for the 1995/96 milk year, the Commission has opened an infringement procedure over the provisions for calculating the levy due at producer association level. Italy has in consequence adopted Decree-Laws No 353 of 8 July 1996 and No 463 of 6 September 1996 terminating compensation at milk producer association level with effect from the 1995/96 milk year.

The Commission is aware that these changes with retroactive effect have caused serious management problems directly affecting respect for the date of 1 September 1996 for payment of the additional levy on the part of purchasers. They do not however affect purchasers' responsibility to collect the levy or producers' to pay it.

The Commission does not think that a further extension of the time limit for payment to the European Agricultural Guidance and Guarantee Fund will resolve the problem.