WRITTEN QUESTION E-3436/00

by Generoso Andria (PPE-DE), Stefano Zappalà (PPE-DE), Giuseppe Nisticò (PPE-DE), Vitaliano Gemelli (PPE-DE) and Guido Viceconte (PPE-DE) to the Commission

(7 November 2000)

Subject: Beet growing

Beet growers in the south of Italy have benefited from national subsidies within the meaning of the Community regulation which expires at the end of the current 2000-2001 year. Those sugar refineries which have remained operational (Celano, Foggia, Incoronata, Termoli and Villosar) employ 1 600 permanent and seasonal workers, in addition to which there are around 2000 workers in induced employment.

Clearly, productivity is inadequate (60 q of sugar per hectare) and will need to be improved through structural changes, in particular:

(a) development of water resources and of irrigation techniques;

(b) improvement projects in the agro-economic sector;

(c) coordination and wider use of modern technology.

Could the Commission defer the proposal to amend the regulation on the common organisation of the market in sugar seeking to abolish national aid to beet growing in southern regions?

This aid should be maintained for a further five years (until the end of the 2005/2006 year), so that there is sufficient time to prepare a specific project for the sector with the aim of improving structural aspects of holdings and increasing productivity of crops.

Answer given by Mr Fischler on behalf of the Commission

(12 December 2000)

Since the establishment of the common market organisation for the sugar sector in 1968, Italy has been authorised to grant national adjustment aid for improving the conditions under which sugar beet and sugar are produced. These aids have in particular been intended to improve the structural conditions under which sugar beet is grown in the southern region.

National aids in general have always been considered to be inconsistent with the letter and spirit of the objectives to be achieved by agricultural common market organisations. On the other hand, the regular renewals of the authorisation to Italy to continue granting these aids in the sugar sector have demonstrated both the gravity of the structural difficulties involved and the goodwill of the Council, the Parliament and the Commission in seeking to achieve an improvement in the conditions for the sugar beet growers directly concerned.

The last reform of the common market organisation for the sugar sector adopted in 1995 by Council Regulation (EEC) no 1101/95 of 24 April 1995 amending Regulation (EEC) no 1785/81 on the common organisation of the market in the sugar sector and Regulation (EEC) no 1010/86 laying down general rules for the production refund on certain sugar products used in the chemical industry(1) provided, however, that Italy should be granted only one further authorisation concentrating on the most critical situation of sugar beet cultivation, with a view to finally phasing out these national adjustment aids during the lifetime of the current production quota system which expires on 30 June 2001.

Subsequently the Council, after consulting the Parliament, has adopted Council Regulation (EC) no 2613/97 of 15 December 1997 authorizing Portugal to grant aid to sugar beet producers and abolishing all State aid from the 2001/2002 marketing year(2) which clearly provides that all national aids authorised by the common market organisation for the sugar sector are to be abolished with effect from 1 July 2001 onwards. In these circumstances, the Commission has not foreseen any new measures along the lines suggested by the Honourable Members in its recent proposal on the next production quota and other arrangements to apply in the sugar sector(3).

(1) OJ L 110, 17.5.1995.

(2) OJ L 353, 24.12.1997.

(3) COM(2000) 604 final.