WRITTEN QUESTION P-0598/96 by Stefano De Luca (UPE) to the Commission (6 March 1996)

Subject: Unequal treatment of farming businesses for aid purposes

In the last two crop years, 1994/95 and 1995/96, Sardinia has been hit by very severe drought which has adversely affected all of the region's agricultural producers. The Regional Council has consequently issued a Directive laying down rules for implementing ministerial provisions on assistance in the form of loans for farms which have been damaged by the drought.

Following their long-running practice, however, the regional authorities have discriminated against farming businesses (natural and legal persons) considered to be different from owner-occupiers, persons whose main occupation is farming, or others treated as such (sharecroppers, tenant farmers working on a profit-sharing basis, and so forth).

The same discrimination occurs when Community regulations are enforced. Sardinia Regional Council has thus decided that owner-occupiers and persons whose main occupation is farming should receive a significantly higher premium than the amount which will be paid to other farming businesses.

Will the Commission remedy this improper infringement of the rules of competition?

Answer given by Mr Fischler on behalf of the Commission (19 March 1996)

Under Articles 92 and 93 of the EC Treaty, the Commission recently examined the emergency aid provided for under Sardinia's regional law No 16/95 following the drought. It found that the aid was in line with Community rules for compensating farmers for natural disasters.

The aid comes in a number of forms designed to indemnify farmers for the damage suffered and the Commission can find no grounds in the above Articles to query Sardinia's decision to allocate it on the basis of certain priorities.

The Honourable Member alludes to other Community rules on the matter but does not say which he means. However, the Commission would point out that Sardinia is eligible for Objective 1 assistance.

Structural fund intervention is based on the multifund operational programme (MOP) approved by a Commission decision of 25 September 1994. The aid measures for farms in the subprogrammes to boost animal husbandry, olive growing and rural development are meant for individual farmers or groupings. The level of the premium is therefore not dependent on the farmer's legal status.

As for Objective 5a measures, which are also programmed under the MOP, Sardinia is implementing two jointly funded measures on the basis of Regulation (EEC) No 2328/91 designed to make agricultural structures more effective. ((OJ L 218, 6.8.1991. )) Compensation is given primarily to persons in disadvantaged areas practising agriculture as their main occupation. While there is nothing in the Community Regulation to restrict aid to such farmers, the national or regional authorities responsible for implementing this measure may, depending on prevailing circumstances and priorities, widen or narrow the eligibility criteria. The other Objective 5a measure - help for correct book-keeping - is, however, under the Regulation, only for persons practising agriculture as their main occupation.

In view of the above, the Commission does not believe that farms are treated differently from each other for aid purposes.