3. FromaEuropeanperspective,theroleofthestatutoryauditordoesnotincludeaspecificdutyin
relationtotaxadviceorotherformsofadvicebutdealsexclusivelywithprovidinganopiniononthetrueandfairviewoffinancialstatements.
4. Theresponsibilityofthestatutoryauditoristoperformthoroughauditsofthefinancialstatements
inthepublicinterest.Businessandfinancialrelationshipsandtheprovisionofnon-auditservicestotheauditclientmaynotunderminethisresponsibility.Thisdoesnotimplyastrictprohibitionofnonauditservices.TheCommissionisawarethatthereispressuretorestrictevenfurtherthepossibilityforanauditor to provide additional services and will conduct a study on the impact of a more restrictiveapproach.
ThisstudyisoneoftheactionsincludedintheCommunicationonreinforcingstatutoryauditinthe
UnionwhichtheCommissionissuedon21May2003.Theprovisionofadditionalservicesisprohibited
inGreece,FranceandItaly(forlistedcompanies).
PublicoversightoftheauditprofessionintheUnionisoneoftheotherprioritiesintheCommunication.
Froma European perspective, it is important that Member States’ oversight fulfilscertain (functional)qualitycriteria.However,thestructureofoversightisprimarilyaresponsibilityforMemberStates.
5. Theaforementionedstudyintotheconsequencesofastrict(er)prohibitionaswellasthepractical
experiencewiththeimplementationoftheCommissionRecommendation,willallowtheCommissiontodecideinduecoursewhetherandwhichfurtheractionmaybeneededinthisarea.
(1) OJL191,19.7.2002.
(2004/C58E/097) WRITTENQUESTIONE-1574/03
byChrisDavies(ELDR)totheCommission
(8May2003)
Subject:Stateaidapprovalforcoalminemethaneextraction
HastheCommissionreceivedanapplicationfromtheUKGovernmentforstateaidapprovaltograntthe
coalminemethaneindustryan80%exemptionfromtheUKclimatechangelevy?
Ifso,whatresponsehastheCommissionmadeorwhenwillitdoso?
AnswergivenbyMrMontionbehalfoftheCommission
(16June2003)
TheCommissionhasnotreceivedanapplicationfromtheBritishGovernmentforstateaidapprovalto
grantthecoalminemethaneindustryan80%exemptionfromtheBritishClimateChangeLevy(CCL).
The Commission has, however, received a notification from the British Government to grant the
productionofelectricityusingcoalminemethaneafullexemptionfromtheBritishCCL.TheCommissionhasopenedtheformalinvestigationprocedureaccordingtoArticle88(2)ECTreatyonthisnotificationasithasdoubts,atfirstsight,thattheaidgrantediscompatiblewithStateaidrules.ThisdecisionwaspublishedintheOfficialJournal(
1),andthirdpartieswereinvitedtosubmitcommentswithinonemonth
fromthedateofpublication.TheCommissionhasreceivedthirdparty’scommentsattheendofAprilC58E/80 EN6.3.2004 OfficialJournaloftheEuropeanUnion
2003 and forwarded them according to Article 6(2) of the Procedural Regulation(2) to the British
authoritiesforareplywithinonemonth.TheCommissionisawaitingthereplyoftheBritishauthoritiesandwillthentakeafinaldecision.
(1) OJC69,22.3.2003,p.9.
(2) CouncilRegulation(EC)No659/1999of22.3.1999layingdowndetailedrulesfortheapplicationofArticle93of
theECTreaty,OJL83,27.3.1999.
(2004/C58E/098) WRITTENQUESTIONE-1615/03
byJoanVallvé(ELDR)totheCommission
(13May2003)
Subject:Aidforricegrowing
TheCommissionCommunicationtotheCouncilandtheEuropeanParliamentof10July2002(1)stated,
inthesectiononrice(p.15oftheEnglishversionofthetext):
Theglobalpricereductionwillbecompensatedatarateof88%…Thisleadstocompensationof
177EUR/t,…Ofthis,102EUR/tmultipliedbythe1995reformyieldwouldbecomeanincomepaymentpaidperfarm.Theremaining75EUR/tmultipliedbythe1995reformyieldwouldbepaid
asacropspecificaidreflectingtheroleofriceproductionintraditionalproductionareas.
Thisadditionalaidrecognisingthespecificcharacteristicsoftraditionalrice-growingareaswasparticularly
welcomeinareassuchastheEbroyPalsdeltainBaixEmpordà,Girona,wherericeproductionhasbeenwell established for some time. Although they did not agree with the basic philosophy behind theCommissionproposalsnorthefutureprospectsindicatedforthiscrop,thericegrowersandtheCatalanGovernmentalikeconsideredthatthisadditionalaidcouldalleviate,ifonlypartly,thelossofincomewhichapplicationofthereformwouldentail.
However,inthetextofthelegislativeproposalssubmittedinJanuary2003,thisspecificaidhasbeen
extendedtoallareasofriceproduction,withnoterritorialdifferentiation,andbasedonestablishingabasicareaofcultivationforeachcountryandimposingpenaltiesifthisisexceeded.InthecaseofSpain,thearealaiddownis104973hectares.
ThisnewapproachwillgreatlyexacerbatethedamagethattheCAPreformwillinflictonCatalanrice
growers,sincetheycultivateareaswheretherearenoalternativecropsand,inaddition,theircropshave
greatecologicalvalueasmostoftheseareasareprotectedbytheRamsarTreaty.Ifriceproductionisno
longerviable,thiswillnotonlyhaveaconsiderableimpactonincomes,butwillalsodamageecosystemsandeventuallythreatenthesurvivalofanexceptionalenvironmentwhichisuniqueinEurope.
DoestheCommissionnotthinkthat,fortheseareasofgreatecologicalvalue,thespecificaidthatwaslaid
downshouldbemaintainedinitsentiretyandthat,ifthebasicareaisexceeded,thepenaltiesshouldnotaffectthegrowerswhoareestablishedintheseareas?
(1) COM(2002)394final.
AnswergivenbyMrFischleronbehalfoftheCommission
(17June2003)
Underitsproposedreformofthecommonagriculturalpolicy(CAP),whichitpresentedtotheCounciland
ParliamentinJanuary2003,theCommissionissuggestingthatspecificaidforrice,underthesupportregimes,shouldbegrantedtoallriceproducers,irrespectiveoftheirareaofproduction.6.3.2004EN C58E/81 OfficialJournaloftheEuropeanUnion