WRITTEN QUESTION E-1980/98

by Johanna Boogerd-Quaak (ELDR) to the Commission

(30 June 1998)

Subject: Delay in payments from the European Social Fund to the Netherlands Central Employment Office for 1996 and 1997

An acute cash-flow crisis has arisen in the 220 employment offices in the Netherlands, partly because the European Social Fund has still not paid out the NLG 60 million subsidy it owes to the Central Employment Office (CBA) for 1996 and 1997. Moreover the Commission will not be paying out the first NLG 180 million tranche of ESF subsidies for 1998 until September.

1. Is it true that the Commission has postponed the payment of subsidies committed to the CBA totalling NLG 60 million for 1996 and 1997 and is waiting until September to pay the first NLG 180 million tranche for 1998?

2. Is it correct that the official reason for this is that the CBA and the Netherlands Ministry of Social Affairs have not yet concluded their accounting work for 1996 and therefore have not yet submitted their closing accounts for that year?

3. Did the Commission notify the CBA and the Netherlands Ministry of Social Affairs of the administrative requirements for payment of ESF subsidies in good time, and point out to them that the closing accounts had not yet been submitted?

4. Can the Commission confirm whether the formalities in question are those which are properly being required of the CBA and the Netherlands Ministry of Social Affairs by DG V but which cannot be complied with because DG XX has not yet completed its final controls?

5. Does DG XX's control procedure have a delaying effect on the granting of appropriations by DG V?

6. Can the Commission consult with the CBA and the Netherlands Ministry of Social Affairs as quickly as possible so that urgent procedures can be applied to prevent ESF projects in the Netherlands from being jeopardised?

Answer given by Mr Flynn on behalf of the Commission

(21 September 1998)

1. Following a control mission by the Commission on the Dutch objective 3 programme in September 1996, payments were suspended. This formal suspension under Article 24 of Council Regulation 2082/93(1) was lifted in May 1997. The 1996 final payment claim was not forwarded to the Commission by the Dutch authorities until 23 June 1998. In the Netherlands single programming document for objective 3 (1994-1999), it is stated that before the first advance in respect of a year can be paid, the final payment claim for the year two years before this must be completed. Accordingly, despite the fact that the claim for the payment of the first advance for 1998 has been sent to the Commission, this cannot be treated until the final payment claim for 1996 has been received and processed.

2. Yes.

3. The Commission brought to the attention of the Member State, at the monitoring committee meeting of 31 October 1997 and in writing on 16 January 1998, the fact that payments in respect of 1998 could not be undertaken by the Commission until formalities regarding the year 1996 had been completed and that year's execution report forwarded to the Commission. As early as October 1996 the Commission convened a meeting of all parties including the Central employment office (CBA) and the ministry, drawing attention to the need to complete procedures in respect of 1996 and pointing out the gravity of the situation should the final payment claim not be completed.

4. These formalities have been in operation since 1994 and were agreed by all Member States. As stated under point 1, the suspension was lifted in May 1997 and therefore has no bearing on the fact that the 1996 final payment claim was not received by the Commission until 23 June 1998.

5. No.

6. The 1996 final payment claim was received on 23 June 1998, the payment was processed as soon as possible. Once this procedure was completed, it was then necessary to modify the Commission's decision to reflect the new 1996 situation. It was only after that decision was taken that the first advance for 1998, which represents a much higher amount, could be processed.

The 1996 final payment claim being received on 23 June 1998 and the modification request arriving on 30 June 1998, the Commission proceeded to ensure all these procedures with the minimum delay. The payment to the Dutch authorities was made in the first week of September.

(1) OJ L 193, 31.7.1993.