WRITTEN QUESTION E-2272/99

by Alexandros Alavanos (GUE/NGL) to the Commission

(13 December 1999)

Subject: Financial support for the activities of consumer organisations

Article 6(2) of Decision No 283/99(1) of the European Parliament and of the Council establishing a general framework for Community activities in favour of consumers states that: unpaid work or donations in kind, if properly documented, may be taken into account, up to a level of 20 % of total eligible costs when assessing the organisations' revenue and costs.

In view of the difficulties raised by government bodies concerning properly documented expenditure can the Commission say:

1. What criteria will it use to assess whether unpaid work or donations in kind have been properly documented?

2. Has it sent to consumer organisations information (what is the document reference?) setting out the criteria regarding properly documented unpaid work or donations in kind?

(1) OJ L 34, 9.2.1999, p. 1.

Answer given by Mr Byrne on behalf of the Commission

(16 December 1999)

Setting sound and transparent standards for the management of Community grants has been a priority of the Commission from the very outset. A vade mecum was adopted by the Commission in 1998(1) and is applicable to all the grants in any policy area since 1 January 1999. This vade mecum provides the Commission with a common framework for awarding and monitoring direct grants.

As a general rule, contributions in kind are not eligible costs, but are taken into account in calculating the rate of Community co-financing. However, Decision No 283/1999/EC of the Parliament and of the Council of 25 January 1999 establishing a general framework for Community activities in favour of consumers, lays down, in Article 6.2 that unpaid work or donation in kind, if properly documented, may be taken into account, up to a level of 20 %, of total eligible costs, when assessing the organisations' revenue and costs.

The criteria for the evaluation of in kind expenditure are foreseen in the vade mecum. Article 6.1.5 stipulates that In particular, contributions in kind include: land, immovable property whether in its entirety or in part, durable capital goods, raw materials, unpaid charity work by a private individual or corporate body. The following conditions must be met: the amount declared by the beneficiary as contributions in kind must be valued either on the basis of objective factors or on the basis of official scales laid down by an independent authority or by an outside independent professional; the cost of private charity work must be valued in accordance with the national rules regarding the calculation of hourly, daily or weekly labour costs, if such rules exist.

This information was included as an annex to the application form which all proposers received. It was also put on the Directorate general for health and consumer protection web site. Moreover, the Commission also organised, in July 1999, a teleconference, during which the representatives of the consumer organisations were able to ask questions to Commission officials about the year 2000 subsidy exercise. Furthermore, it was announced during this teleconference that Commission staff specialised in the financial aspects of grants were available to answer any questions. Their phone numbers were also mentioned on the grant application form.

(1) http://www.cc.cec/home/dgserv/serv19/icon/documents/subventions/index.htm.