Proposal for a COUNCIL REGULATION (EEC) on the part-financing by the Community of remote sensing checks and amending Council Regulation (EEC) N° 3508/92 of 27 November 1992 establishing an integrated administration and control system for certain Community aid schemes
Date: 1993-09-30
Institutions: European Commission
Subjects: administrative check, co-financing, remote sensing, utilised agricultural area

COMMISSION  OF  THE  EUROPEAN  COMMUNITIES 

COM(93) 455 final 

Brussels»  30 September  1993 

Proposal  for a 

COUNCIL REGULATION  (EEC) 

on the part-financing by the 

Community  of  remote  sensing  checks  and  amending  Council  Regulation 
(EEC)  N°  3508/92  of  27  November  1992  establishing  an  integrated 
administration  and control system  for certain Community  aid schemes. 

(presented  by  the Commission) 

~ 1-

Explanatory  memorandum 

Remote sensing, used to monitor  areas under cultivation  for which  subsidies 
are granted, was first tested by the Commission  alone, starting  in 1990, 
then proposed on a cooperative basis to the Member States, which are nov 
being asked to take over responsibility  for it in their own countries, with 
technical back-up from the  Commission. 

Official authorization  for this monitoring  technique was given by Article 8 
of Council Regulation  (EEC) No  1703/91 of  13 June  1991 introducing a 
temporary  set-aside scheme for arable land  for the  1991/92 marketing 
yearI1) and subsequently by Article 9 of Council Regulation  (EEC) 
No 3766/91 of 12 December  1991 establishing  a support  system  for producers 
of soya beans, rape seed and sunflower  seed(2). 

These provisions, which applied  for a single marketing year, have now been 
replaced by Article 8(4) of Council Regulation  (EEC) No 3508/92 of 27 
November  1992 establishing  an integrated  administration  and control  system 
for certain Commmunity  aid  schemes^3). For  1993 approximately  35 000 files 
will have been checked using remote sensing  in 11 Member States, which is 
equivalent  to around one quarter of the minimum  number  of checks required 
under the new Regulation. The rest, generally  speaking, are being  checked 
using traditional methods. 

Since  1970 national budgets have had to bear the administrative  cost of 
controls under Article  1(4) of Council Regulation  (EEC) No 729/70 of 
21 April  1970 on the  financing of the common  agricultural policy^4). The 
use of remote sensing  is still a fairly new and complex technique, however, 
and although unit costs are falling rapidly,  at the moment control by this 
method  is still giving  rise to considerable expenditure.  The  Commission 
considers that this should be part-financed out of Community  funds in order 
to allow all the Member  States which so wish to update their control 
systems more speedily. Part-financing could be limited, however, to the 
time required  for the change-over. 

For that reason, as an exception to the general rule, Commission 
Regulations  (EEC) Nos 2069/91<5) and 615/92(6) laying down detailed  rules 
for the application of the temporary  set-aside scheme  for arable land and 
for a support  system  for producers of oilseeds respectively  already 
provided  for the possibility  of  financing checks carried out by remote 
sensing out of the Commission  budget. This option was extended by 
Commission  Regulation  (EEC) No 3887/92  laying down detailed rules for 
applying the integrated  administration  and control  system^7). 

Steps should be taken moreover to remove any ambiguity  in Article  10(1) of 
Regulation  (EEC) No 3508/92 between  investment  expenditure on the 

(1) O J N oL  162, 26. 6.1991, p. 1. 
(2) OJ No L 356, 24.12.1991, p. 17. 
(3) OJ No L 355, 5.12.1992, p. 1. 
(4) OJ No L  94, 28. 4.1970, p. 13. 
(5) OJ No L 191, 11. 7.1991, p. 19. 
(6) OJ No L  67, 10. 3.1992, p. 11. 
(7) OJ No L 391, 31.12.1992, p. 36. 

-  2 -

establishment  of the integrated  system and the costs of annual checks 
carried out by aerial or satellite-borne means of remote  sensing. 

Experience has shown furthermore that negotiations  for the purchase of the 
necessary  satellite pictures conducted  at Community  level together with the 
joint management  of archive pictures provide opportunities which are 
unavailable to the Member  States acting  individually. 

Remote sensing,  lastly,  is still developing and the Member States' 
requirements regarding the checking of areas have not yet all been 
identified,  expressed or met.  The Commission  intends therefore to continue 
carrying out  specific tests related to checking requirements. Provision 
should be made also for establishing  a legal basis for their  financing. 

All these considerations have resulted  in the proposal below which  is for a 
specific Regulation consolidating the provisions of Article 10 of Regulation 
(EEC) No 3508/92 and Article 7 of Regulation  (EEC) No 3887/92 and 
introducing  a number of new provisions, namely: 

- 

the part-financing of up to 50% of expenditure  for a maximum of 5 
years ; 
specific technical  support  and test measures to be carried out by 
the Commission  without  a time  limit; 
the centralized  purchase of satellite pictures; 
the determination  of a clear distinction between the establishment 
of the integrated  system and the annual costs of remote sensing. 

-3 

Proposal  for 

Council  Regulation  (EEC)  No 
on  the  part-financing  by  the 
Community  of  remote  sensing  checks  and  amending  Council  Regulation  (EEC) 
No 3508/92 of 27 November  1992 establishing an integrated  administration and 
control system  for certain Commmunity aid schemes 

/ 

TUB COUNCIL OF THE EUROPEAN COMMUNITIES, 

Having  regard  to  the  Treaty  establishing  the  European  Economic  Community, 
and  in particular Article 43 thereof, 

Having regard to the proposal  from the Commission, 

Having regard to the opinion of the European Parliament, 

Whereas  Article  8(4) of  Council  Regulation  (EEC) No  3508/92  of  27  November 
1992  establishing  an  integrated  administration  and  control  system  for 
certain  Commmunity  aid  schemes*  provides  that  Member  States may  use  remote 
sensing  to  determine  the  area  of  agricultural  parcels,  identify  crops  and 
verify their status; 

Whereas, on account  of  its novelty  and  complexity,  remote sensing  is giving 
rise  to  further  major  expenditure  which  should  be  covered  partly  out  of 
Community  funds  in order  to enable  all  Member States who  so wish  to  update 
their  control  techniques  more  rapidly;  whereas,  however,  provision  should 
be made for part-financing which is limited  in time; 

Whereas  the  part-financing must  be granted  only  for  techniques  applied  and 
may  not  result  in  the  charging  to  the  Community  budget  of  purely 
administrative  expenditure  which, under  Article  1(4)  of  Council  Regulation 
(EEC) No 729/70 of 21 April 1970 on the financing of the common agricultural 
policy^, is chargeable to national budgets; 

Whereas  provision  should  be made  for the Commission  to  be consulted  on the 
technical  and  financial  aspects  of  projects  drawn  up  by  the  Member  States 
and  on  the  award  of  contracts  in  order  to  ensure  satisfactory  uniformity 
between Member States; 

Whereas  since  the  funds  available  are  limited,  it  is  essential  that 
provision be made for their fair distribution among the Member States on the 
basis of a maximum rate of part-financing and a distribution scale; 

Whereas  experience  has  shown  that  negotiations  centralised  at  Community 
level,  for the  purchase  of  the  necessary  satellite  pictures, and  the  joint 
management  of  archive  pictures, open  up  opportunités which  are  unavailable 
to individual Member states; 

1  OJ Ito L 355, S.12.1992, p. 1. 
2  OJ M OL  94, 28. 4.1970, p. 13. 

Whereas  remote  sensing  is  undergoing  constant  development;  whereas,. 
moreover,  the  Member  States'  requirements  regarding  the  control  of 
agricultural  areas  have  not  yet  all  been  identified,  expressed  or  met? 
whereas  provision  should  be  made  therefore  for  specific  tests  related  to 
control requirements to be  financed; 

Whereas  it  is  essential,  for  the  satisfactory  management  of  the  funds, to 
have currency exchange rates which remain  fixed throughout  the budget year; 

Whereas  steps should be taken to eliminate all ambiguity  in Article 10(1) of 
Regulation  (EEC)  No  3508/92  between  investment  expenditure  linked  with  the 
establishment  of  the  integrated  system  and  the  costs  of  the  annual  checks 
carried out by aerial or satellite remote  sensing, 

HAS ADOPTED THIS REGULATION: 

Article 1 

1.  The  Community  may  contribute,  towards  the  costs  incurred  by  the  Member 
States,  in  réponse  to  an  annual  request  to  the  Commission,  for  the  use of 
aerial  or  satellite  remote  sensing  during  checks  on  agricultural  areas 
pursuant to Article 8(1) of Regulation  (EEC) No 729/70. 

Without  prejudice  to  Article  1(4) of  that  Regulation,  for  the  purposes  of 
this Regulation  "technical costs" means the costs of: 

acquiring  satellite pictures or aerial photographs; 
the photointerpretation  of the above; 

-  the processing of documents or the use of techniques  for locating parcels 
shown  in  applications  for  assistance  for  the  purpose  of  surveying  the 
areas under crops and measuring the areas declared. 

2.  The  part-financing  referred  to  in  this  Article  may  only  be  granted  by 
calendar  year  for  a  period  of  five  consecutive  years  as  from  the  date  of 
entry  into  force  of  this  Regulation.  It  shall  be  granted  within  the  limit 
of the appropriations allocated  for this purpose  in the Community  budget and 
may  not  exceed  50% of  the  actual  expenditure  incurred  by  the  Member  State 
concerned  in respect of the relevant budget year. 

The appropriations  available shall be distributed  among the Member  States in 
accordance  with  the  scale  shown  in the  Annex,  less, where  appropriate,  the 
costs  and  work  expenditure  referred  to  in  Article  2  of  this  Regulation. 
Appropriations  for which  application  has not  been made may be used  again in 
accordance with Article 2, or redistributed, without  taking  into account the 
distribution  scale,  among  the  Member  States which  satisfy  the  requirements 
of this Regulation. 

3.  The grant of part-financing shall be conditional on: 

-  the  presentation  of  a declaration  of  intent  from  the  Member  State  to be 
sent before a date to be determined  by the Commission,  prior to 1 January 
of the budget year  concerned; 

the submission before  15 January of a specification setting out  in detail 
the  work  for  which  part-financing  is  requested.  The  Commission  may 
request  that changes be made to it; 

-  the  consultation  of  the  Commission  before  31 March,  on  the  award  of the 
contract,  and  on  a  budget  estimate.  Irrespective  of  the  form  given  to 
this  contract  by  the  Member  State,  the  Commission's  consent  to 
part-financing must be renewed  annually. 

In  all  three  cases  a  negative  opinion  on  the  part  of  the  Commission  or 
failure  to  consult  within  the  prescribed  period  shall  mean  that  part-
financing will be refused. The Commission may  itself propose a specification 
to  those  Member  States  that  desire  it.  In which  case,  it  is  considered  as 
approved. 

4.  Community  payment  shall  be  made  upon  submission  of  supporting 
documents.  These  shall  comprise  at  least  the  principal  components  of  the 
agreement between the Member State and the supplier or suppliers of services 
as well  as the corresponding  proof  of payment.  In order to be eligible  for 
reimbursement,  proof  of  payment  must  reach  the  Commission  at  the  latest  on 
15 June of the year  following the budget year  concerned. 

5.  The  Commission  may,  on  receipt  of  a  duly  substantiated  request  from  a 
Member  State,  advance  all  or  part  of  the  amounts  covering  the  annual 
payments referred to  in the preceding paragraph. 

6.  The  conversion  into  national  currency  of  the  amounts  expressed  in ecus 
shall  be  made  by  applying  the  exchange  rate  in  force  on  the  first  working 
day  of  the  calendar  year  concerned,  as  published  in  the  C  series  of  the 
Official Journal of the European Communities. 

Article 2 

The  Commission  may  acquire  and  supply  free  of  charge  to  the  control 
agencies,  or  to  suppliers  of  services  authorized  by  those  agencies  to 
represent  them,  the  satellite pictures  required  for the  checks, the  list of 
which  shall  be  agreed  with  the  Member  State  in  accordance  with  the 
specification  referred  to  in Article  1(3). The Commission  shall  continue to 
own the pictures  supplied  and  shall  recover them on completion  of the work. 
It may  also  see to  it  that  work  is carried  out  on  perfecting  the  technique 
and working methods  for checking agricultural  areas by remote  sensing. 

Article 3 

The  Community  part-financing  provided  for  in this  Regulation,  in  the  areas 
referred  to  in  Articles  1 and  2, may  not  be  aggregated  with  the  financial 
contribution provided  for in other Regulations, in particular: 

-  Council  Regulation  (EEC) No  3508/92  of  27 November  1992  establishing  an 
integrated  administration  and  control  system  for  certain  Commmunity  aid 
schemes; 

-  Council  Regulation  (EEC) No 307/91 of 4 February  1991 on  reinforcing the 
monitoring  of  certain  expenditure chargeable  to the Guarantee  Section of 
the European Agricultural Guidance and Guarantee  Fund3. 

$  « l l Ml  1?9  »*a«t9»l,  9.  9. 

Article 4 

The  Commission  shall  adopt  detailed  rules  for  the  application  of  this 
Regulation  in  accordance  with  the  procedure  laid  down  in  Article  13  of 
Regulation  (EEC) No 729/70. 

Article 5 

In  Article  10(1)  of  Regulation  (EEC)  No  3508/92,  the  words  "and  for  the 
acquisition  of  aerial  photographs  or  satellite  pictures  and  the  analysis 
thereof  are hereby  deleted. 

Article 6 

1 

This  Regulation  shall  enter  into  force  on  the  seventh  day  following  its 
publication  in  the  Official Journal  of  the  European  Communities.  It  shall 
apply with  effect  from  1 January  1994. However,  for expenditure  incurred by 
the  Member  States  before  the  entry  into  force  of  this  Regulation,  the  old 
version  of  Article  10  of  Regulation  (EEC)  No 3508/92  shall  continue  to 
apply. 

This Regulation  shall be binding  in its entirety  and directly  applicable  in 
all Member States. 

Done at 

For the Council 

s 

ANNEX 

Method of  calculation 

The maximum authorized  appropriation is: 

. ECU 15 million in the first year; 
. ECU 20 million  in the four subsequent years; 
. ECU  3 million thereafter. 

It is broken down as follows: 

(1) 

Part-financing: maximum  reimbursement  of ECU 12 million  in 1994 and 
ECU 17 million  for four years 
(50% of Member  States' actual expenditure); 

(2) 

Ancillary services: 

- 

satellite pictures or aerial photographs: 
ECU 2.5 million/year, based on expenditure in 1992 and 1993; 

technical  assistance  for Member States: 
estimated ECU 0.5 million/year. 

(3) 

Amendment  of Regulation  (EEC) No 3508/92: neutral from budgetary 
point of view. 

J 

ISSN 0254-1475 

COM(93) 455 final 

DOCUMENTS 

EN 

03 

Catalogue number : CB-CO-93-502-EN-C 

ISBN 92-77-59562-0 

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