Proposal for a COUNCIL REGULATION (EC) establishing a European Agency for Veterinary and Phytosanitary Inspection
Date: 1996-05-29
Institutions: European Commission
Subjects: Food and Veterinary Office, application of EU law, institutional activity, plant health control, veterinary inspection

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COMMISSION  OF THE  EUROPEAN  COMMUNITIES 

Brussels,  29.05.1996 
COM(96) 223 final 

96/0143  (CNS) 

Proposal  for  a 
COUNCIL  REGULATION  (EC) 
establishing  a European  Agency  for  Veterinary  and  Phytosanitary  Inspection 

(presented  by  the  Commission) 

EXPLANATORY  MEMORANDUM 

I.  Responsibilities  involved 

For  the  purposes  of  completion  of  the  internal  market  all  rules  in  the  veterinary  field 
(including  animal  husbandry  and  animal  protection)  and  the  plant-health  field  were 
harmonized  at  Community  level. 

The need was expressed  at the  same time  for  these  provisions  to be  applied  effectively 
and  uniformly  so that: 

protection  of  public,  animal  and  plant  health  would  in  fact  be  harmonized; 

competition  would  not  be  distorted  by  trade  restrictions;  and 

the necessary  climate  of  confidence  would  be  fostered  for  liberalization  of  trade 
in  animals  and  products  of  animal  origin. 

The  Commission  was  accordingly  given  responsibility  for  monitoring  uniform 
application  of  the  Community  rules  by  means  of  inspection  on  the  spot: 

in  Member  States,  in  order  to  ensure  that  Community  legislation  was  being 
correctly  applied  and  veterinary/plant-health  controls  were  properly  carried  out; 

in  third  countries  wishing  to  export  to  the  Community,  to  check  that  the 
requirements of Community veterinary  and plant-health legislation were being met. 

The  work  of  the  Commission's  veterinary  inspection  service,  set  up  in  1983,  was 
therefore  extended  to the  whole  field  of  animals,  products  of  animal  origin,  plants  and 
products of plant origin  and to preparation  of decisions for  adoption by the  Commission 
in  follow-up  to  its inspection  work. 

H.  Establishment of the Office of Veterinary and Phytosanitary Inspection and Control 

(OVPIC) 

The  importance  of  the  tasks  entrusted  to  the  Commission  and  the  timetable  set  for 
establishment  of  the  internal  market  led  it  to  establish  the  OVPIC  (decision  of 
19 December  1991).  Its  main  fields  of  inspection  so far  are: 

live  animals  (cattle,  pigs,  sheep,  goats  and  horses); 

fresh  meat  (red  and  poultry); 

hormone use; 

fishery  products; 

animal  transport  (welfare); 

veterinary  and  plant-health  controls  on  entry  into  Community  territory; 

plant-health  quarantining; 

organisms  harmful  to  plants  and  plant  products; 

surveillance  of  protected  phytosanitary  zones. 

Further  expansion  is  planned  so that  all  areas  falling  within  the  scope  of  Community 
legislation  are  covered. 

At  the  Brussels  European  Council  on  29  October  1993  the  representatives  of  the 
Member  States'  Governments  decided  that  the  OVPIC  would  be  located  in  Ireland,  in 
a  town  to  be  decided  by  the  Irish  Government.  The  site  of  Grange  was  announced  in 
this  context. 

HI.  Purpose 

of 
Phytosanitary  Inspection 

setting 

up 

a  European  Agency 

for  Veterinary 

and 

It  is  clear  from  what  has  already  been  achieved  and  given  future  expansion  plans  that 
the  present  structures  must  be  reinforced  if  proper  guarantees  are  to  be  given  of 
protection  of  public,  animal  and  plant  health  covering  the full  range of  animals,  plants 
and  products  of  animal  and  plant  origin. 

Conversion  of 
the  OVPIC 
Phytosanitary  Inspection  would: 

into  a  European  Agency 

for  Veterinary  and 

develop  the  principle  of  its inspectors'  autonomy  and  thus  enhance  the  credibility 
of their work.  The specific  tasks of an inspection  service differentiate  it from  other 
Commission  departments.  Highly  specialized  personnel,  with  the  autonomy  and 
authority  needed  for  tasks  of  this  type,  are  an  indispensable  requirement  of  any 
inspection  service and  it is important  to this end that they belong to a service with 
its  own  identity; 

allow  for  the deployment  within  a short  space of time of the number  of  inspectors 
needed  to  cover  all  areas  harmonized  at  Community  level;  this is  not  possible  in 
the  present  situation; 

adjust  the  OVPIC's  structure  for  its  move  to  Ireland,  a  political  decision  of  the 
Council.  Administrative  and  financial  autonomy  would  permit  the  Community 
inspectorate to preserve the effectiveness  and rapidity of action required particularly 
in  emergency  situations  possibly  requiring  adoption  of  protective  measures  by 
the  Commission. 

IV.  Tasks  and  structures  of Agency 

It  is  important  to  note  that  the  Agency  would  be  in  charge  of  on-the-spot 
checks  and  assessment  in  Member  States  and  third  countries  and  reporting  its 
findings  to  the  Commission.  This  work  would  not  be  duplicated  by  that  of 
Commission  experts. 

, 

Its  activities  could  extend  to  other  work  entrusted  to it  by  the  Commission. 

The Commission  would  therefore  retain  the  competences  in  relation  to  legislation 
such  as  drafting  and  follow-up  of  decisions  which  it  alone  has  the  power 
to  exercise. 

The  Agency's  mission  as  defined,  if  it  is to  be  adequately  achieved,  presupposes 
a very  substantial  reinforcement  of the number of personnel  actually  available; the 
activities  of  the  Agency  would  in  effect  encompass  sectors  which  the  OVPIC 
covers  only  partially  or  not  at  all,  owing to  insufficient  staff  numbers. 

The  Agency  would  be  run  by  a Management  Board  consisting  of  representatives 
of  the  Member  States,  the  Commission  and  scientific  experts  and  by  a  Director 
responsible inter alia for ensuring proper implementation  of the programmes set by 
the Management  Board. 

The  Agency's  income  would,  without  prejudice  to  other  resources,  b e j%  of  the 
fees  that  under  Community  rules  should  be  charged  by  Member  States  for 
veterinary  inspections,  plus  (if  needed)  a Community  subsidy. 

It  is estimated  that  for  the  first  year  of  operation  the  Agency's  costs  (40  posts  of 
which  30  inspectors)  would  be  covered  in  full  by  a Community  subsidy  pending 
establishment  of  a fee  transfer  system. 

The  subsidy  would  be gradually  reduced  in  future  years  as it was  replaced  by  the 
Agency's  own  resources. 

The  Agency's  status would  guarantee  the necessary  independence  of  its  staff. 

Proposal  for  a 
COUNCIL  REGULATION  (EC) 
establishing  a European  Agency  for  Veterinary  and  Phytosanitary  Inspection 

THE  COUNCIL  OF  THE  EUROPEAN  UNION, 

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

Having  regard  to the  proposal  from  the  Commission(1), 

Having  regard  to the  opinion  of  the European  Parliament^, 

Having  regard  to  the  opinion  of  the Economic  and  Social  Committee(3), 

Whereas  live  animals,  animal  products,  plants  and  plant  products  are  included  in  the  list  of 
products in Annex  II to the Treaty; whereas production  and trade in these  sectors  constitutes 
an  important  source  of  income  for  the  farming  population; 

Whereas  the  Commission  is  required,  in  accordance  with  the  Community  veterinary  and 
phytosanitary  legislation, to ensure the uniform  application of this legislation in order to avoid 
discrepancies between the controls carried out by competent national authorities, and to ensure 
a uniform  regime  as regards  imports  from  third  countries; 

Whereas a uniform  application  of the legislation would lead to the protection of public health, 
animal  health,  and  plant  health  and  would  prevent  the  distortion  of  competition; 

Whereas,  therefore,  such  uniform  application  is  essential  in  order  to  maintain  confidence 
among  Member  States in the  framework  of free  circulation  of the  relevant  goods  within  the 
internal  market; 

Whereas the best way to achieve this objective whilst observing the principle of independence 
and the specifics  of the tasks is to create an Agency,  the personnel  of which  will  concentrate 
on  monitoring  the  application  of  Community  veterinary  and  phytosanitary  legislation; 

(1)  OJ No 
(2)  OJ No 
(3)  OJ No 

Whereas  a  Decision  was  taken  by  common  agreement  between  the  Representatives  of 
the  Governments  of  the  Member  States,  meeting  at  Head  of  State  and  Government  level 
on  29  October  1993,  on  the  location  of  the  seats  of  certain  bodies  and  departments  of  the 
European  Communities  and  of  Europol(4);  whereas  it  was  stipulated  that  the  Office  of 
Veterinary  and  Phytosanitary  Inspection  was  to  have  its  seat  in  Ireland,  in  a  town  to  be 
determined  by  the  Irish  Government; 

Whereas  Grange,  Co. Meath  has been  announced  by  the  Irish  authorities  in  this  regard; 

Whereas the  rules  and  structure  of  the  Agency  must  be  geared  towards  the  objective  nature 
of  the  results  desired  and  should  be  such  that  it  can  carry  out  its  work  in  cooperation  with 
existing  Community  and  international  bodies; 

Whereas the Agency  should  have  legal  personality  while  collaborating  closely  with  existing 
Community  bodies  and  programmes,  in  order  to  avoid  any  duplication; 

Whereas with regard to its translations, the Agency will use the Translation Centre for  bodies 
of  the European  Union,  set  up  by  Council  Regulation  (EC)  No  2965/94(5),  once  the  Centre 
becomes  operational; 

Whereas  among  other  revenues  obtained  from  the  collection  of  fees  for  veterinary  controls, 
the  general  budget  of  the  European  Communities  should  contribute  to  the  operation  of  the 
Agency; whereas the  amount  of this contribution  deemed  necessary  is to be laid  down  under 
the  annual  budget  procedure,  in  accordance  with  the  financial  estimates, 

HAS  ADOPTED  THIS  REGULATION: 

Article 1 

Establishment  of  the  Agency 

A European  Agency  for  Veterinary  and  Phytosanitary  Inspection,  hereinafter  referred  to  as 
"the Agency",  is  hereby  established. 

The  Agency  shall  be  established  in  premises  designated  by  the  Commission  in  consultation 
with  the relevant  Member  State. 

(4)  O J N oC  323,  30.11.1993,  p.  1. 
(5)  OJ No L  314,  7.12.1994,  p.  1; Regulation  as amended  by  Regulation  (EC) No  2610/95 

(OJNoL  268,  10.11.1995,  p.  1). 

Article  2 

Objective 

1.  The  Agency's  role  shall  be to: 

carry  out  inspections  within  the  Community  to  ensure  the  uniform  application  of 
Community  veterinary  and  phytosanitary  legislation; 

verify  the  veterinary  and  phytosanitary  controls  in  third  countries  of  live  animals, 
products  of  animal  origin,  plants  and  plant  products  intended  for  export  to 
the  Community; 

submit  reports  of  the  abcve  activities;  and 

to  carry  out  any  other  task  which  the  Commission  may  confer  on  it. 

2. 

In  order  to  avoid  duplication  of  work,  the  staff  of  the  Agency  shall  carry  out  the 
inspections  and  controls  referred  to  in  paragraph  1  in  place  of  the  experts  of 
the  Commission. 

Article 3 

Legal  personality 

1.  The  Agency  shall  have  legal  personality. 

2. 

It  shall  enjoy  in  all  the  Member  States  the  most  extensive  legal  capacity  accorded  to 
legal  persons under  their  laws; in  particular  it may  purchase  or dispose  of  movable  and 
immovable  property  and  may  institute  legal  proceedings. 

Article 4 

Management  Board 

1.  The Agency  shall  have a Management  Board  consisting of one representative.from  each 
Member  State,  two representatives  from  the  Commission  and two  scientists  specifically 
qualified  in the field of veterinary  and phytosanitary  sciences, the latter being designated 
by  the European  Parliament  on  the basis  of their  particular  qualification  in  that  field. 

Each member of the Management Board may be assisted or represented  by an alternative 
member.  In  the  absence  of  the  full  member,  the  alternative  member  may  exercise  his 
right  to vote.  The  Management  Board  may  call  in  non-voting  observers. 

2.  The term  of  office  of  representatives  shall  be three  years.  It  shall  be  renewable. 

3.  Each  member  of  the  Management  Board  shall  have  one vote. 

4.  The Management  Board  shall  elect  a Chairman  and  a Deputy  Chairman  from  among  its 
members.  The Deputy  Chairman  shall  automatically  replace the Chairman  in the  event 
of  his being  prevented  from  attending to  his duties. 

The Chairman and the Deputy  Chairman  shall be elected by its members for a three year 
period.  The terms  of  office  shall  be  renewable  once. 

5.  The Management  Board  shall  draw up  its own  rules  of  procedure. 

6.  The Management  Board  shall  meet  at least  once  a year. 

7.  The Management Board  shall adopt a three-year work programme on the basis of a  draft 
submitted  by the  Agency's Director,  after  seeking the opinion  of the Commission.  The 
first  three-year  programme  shall  be adopted  within  nine months  of the  entry  into  force 
of  this  Regulation. 

8.  Under the three-year work programme, the Management Board shall  each year adopt the 
Agency's annual work programme on the basis of a draft  submitted by the Director,  after 
seeking the Commission's opinion.  The programme may be adjusted  in the course of the 
year  in  accordance  with  the  same  procedure. 

9.  By  31  January  each  year  at  the  latest,  the  Management  Board  shall  adopt  an  annual 
general  report  on  the  activities  of  the  Agency  on  the  basis  of  a draft  submitted  by  the 
Director.  The Director shall forward this report to the European Parliament, the Council, 
the  Commission  and the Member  States. 

10.  The Management Board  shall take its Decisions by an absolute majority  of its members. 
However,  a  majority  of  two  thirds  of  its  members  shall  be  required  for  the 
decisions which  the  Management  Board  is  empowered  to  take  under  paragraph  4  or 
under  Articles  5(1),  7,  8(4)  or 9. 

Article 5 

The  Director 

1.  The  Agency  shall  be  headed  by  a  Director  appointed  by  the  Management  Board  on  a 
proposal  from  the  Commission  for  a period  of  five  years,  which  shall  be  renewable. 

The  Director  shall  be  assisted  by  a  Deputy  Director  appointed  by  the  same  procedure 
as the  Director.  If  the  Director  is  absent  or  indisposed,  the' Deputy  Director  shall 
replace  him. 

2.  The Director  shall  be the  official  representative  of  the  Agency. 

3.  The  Director  shall  be  responsible  for: 

the proper  preparation  and  execution  of the  decisions  and  programmes  adopted  by 
the Management  Board; 

the  day-to-day  administration  of  the  Agency; 

the  preparation  of  the  report  referred  to  in  Article 4(9); 

the  performance  of the tasks  set  out  in  Article  2; 

all  staff  matters; 

the  preparation  of  Management  Board  meetings. 

4.  The Director  shall  be  accountable  to  the Management  Board  for  his  activities. 

Article 6 

Budget 

1.  Estimates  shall  be  drawn  up  of  all  the  Agency's  revenue  and  expenditure  for  each 
financial  year,  which  shall  correspond  to  the  calendar  year  and  shall  be  entered  in  the 
Agency's  budget. 

2.  The  revenue  and  expenditure  shown  in  the  budget  shall  be  in  balance. 

3.  The  revenues  of  the  Agency  shall  without  prejudice  to  other  resources  consist  of: 

1%  of 
the  fees 
veterinary  controls; 

to  be  collected  by  Member  States 

for  carrying  out 

whenever expenditure shown in the budget exceeds  1% of the fees mentioned  above 
and to  the extent  necessary,  a subsidy  from  the Community  entered  in the  general 
budget  of  the European  Communities. 

Detailed  rules for  the  application  of this paragraph  shall  be  adopted  in  accordance  with 
the  procedure  laid  down  in  Article  38  of  Council  Regulation  No  136/66/EEC(6). 

4.  The expenditure of the Agency shall include, inter alia, staff remuneration,  administrative 
and  infrastructure  expenses,  operating  costs  and  expenditure  relating  to  contracts 
concluded  with  institutions  or bodies  in  implementation  of  the  work  programmes. 

(6)  OJ No  172,  30.9.1966,  p.  3025/66. 

Article  7 

Draft  estimate  - Adoption  of  the  budget 

1.  By  15  January  each  year  at  the  latest,  the  Director  shall  draw  up  a  preliminary  draft 
budget  preceded  by  an  explanatory  memorandum  for  the  following  financial  year  and 
shall  forward  it,  together  with  a  structural  plan  and  a  schedule  of  employees,  to 
the Management  Board. 

2.  The Management  Board  shall  prepare the  draft  budget  together  with  the  structural  plan 
and  the  schedule  of  employees,  and  forward  them  no  later  than  1  February  to  the 
Commission.  On  that  basis  the  Commission  shall  determine  the  corresponding 
subsidy  estimates  to  be  entered  in  the  preliminary  draft  general  budget  of  the 
European  Communities  which  it  places  before  the  Council  pursuant  to  Article  203  of 
the  Treaty. 

3.  The  Management  Board  shall  adopt 

the 
structural  plan,  before  the beginning  of the  financial  year,  adjusting  it  where  necessary 
to the  Community  subsidy  and  to the  Agency's  other  resources. 

the  Agency's  budget, 

together  with 

Article  8 

Implementation  of  the  budget 

1.  The  Director  shall  implement  the  budget  of the  Agency. 

2.  The monitoring  of the commitment  and payment  of  all  the Agency's  expenditure  and of 
the  establishment  and  recovery  of  all  the  Agency's  revenue  shall  be  carried  out  by  the 
Commission's  financial  controller. 

3.  By  31  March  each  year  at  the  latest  the  Director  shall  send  the  Commission,  the 
Management  Board  and the Court  of Auditors the accounts for  all the Agency's  revenue 
and  expenditure  in  respect  of  the  preceding  financial  year. 

The Court  of  Auditors  shall  examine those  accounts in  accordance  with  Article  188c of 
the  Treaty. 

4.  The  Management  Board  shall  give  a  discharge  to  the  Director  in  respect  of  the 

implementation  of  the  budget. 

Article  9 

Internal  financial  provisions 

After  the  Court  of  Auditors  has  delivered  its  opinion,  the  Management  Board  shall,  in 
agreement  with  the  Commission,  adopt  the  internal  financial  provisions,  specifying  in 
particular  the  procedure  for  establishing  and  implementing  the  Agency's  budget. 

Article  10 

Professional  Secrecy 

Members  of  the  Management  Board,  the  Director,  the  staff  and  all  other  persons 
participating  in  the  activities  of  the  Agency  shall  be  required,  even  after  their  duties 
have  ceased,  not  to  disclose  information  of  the  kind  covered  by  the  obligation  of 
professional  secrecy. 

Article  11 

Language  arrangements 

The  language  rules  of  the institutions  of  the  Community  shall  apply  to the  Agency. 

Article  12 

Translation  services 

The  translation  services  needed  for  the  operation  of  the  Agency  shall  be  provided  by  the 
Translation  Centre for  the Bodies of the Union  set up by Regulation  (EC) No 2965/94  once 
that  centre becomes  operational. 

Article  13 

Privileges  and  immunities 

The Protocol  on the Privileges  and Immunities of the European  Communities  shall  apply  to 
the  Agency. 

Article  14 

Staff 

1.  The  staff  of  the  Agency  shall  be  subject  to  the  Regulations  and  Rules  applicable  to 

officials  and  other  servants  of  the  European  Communities. 

2.  The  Agency  shall  exercise  in  respect  of  its  staff  the  powers  devolved  upon  the 

Appointing  Authority. 

3.  The Management  Board  shall, in agreement with the Commission,  adopt the appropriate 

implementing  rules. 

11 

Article  15 

Liability 

1.  The Agency's contractual  liability  shall be governed by the law applicable to the contract 

in  question. 

The Court of First Instance of the European  Communities  shall  have jurisdiction  to give 
judgment  pursuant  to  an  arbitration  clause  contained  in  a  contract  concluded  by 
the  Agency. 

2. 

In the case of  non-contractual  liability the Agency  shall,  in  accordance with the general 
principles common to the laws of the Member  States, make good any damage caused by 
the  Agency  or  its  servants  in  the performance  of  their  duties. 

The  Court  of  First  Instance  shall  have jurisdiction  in  disputes  relating to  compensation 
for  any  such  damage. 

3.  The  personal  liability  of  servants  towards  the  Agency  shall  be  governed  by  the 

provisions  applying  to the  staff  of the  Agency. 

Article  16 

Examination  of  legality 

Member States, members of the Management Board and third parties directly  and  personally 
involved  may  refer  to the  Commission  any  act of the  Agency,  whether  express  or  implied, 
for  the  Commission  to  examine the  legality  of  that  act. 

Referral  shall  be made to the Commission  within  one month  of the day  on  which  the party 
concerned  first  became  aware  of the  act  in  question. 

The  Commission  shall  take  a  decision  within  two  months.  If  no  decision  has  been  taken 
within  this  period,  the  case  shall  be  deemed  to have been  dismissed. 

Article  17 

Review  clause 

No  later than  five  years  after  the entry  into force  of  this  Regulation,  acting  on the  basis of 
a  Commission  report,  accompanied  where  appropriate  by  a  proposal,  the  Council,  having 
consulted the European  Parliament,  may review this Regulation  and any new assignment  for 
the Agency  that  proves  necessary. 

12 

Article  18 

Entry  into  force 

This Regulation  shall  enter into force  on the 90th  day  following  that  of its publication  in the 
Official  Journal  of  the European  Communities. 

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

Done  at Brussels, 

For  the  Council 
The  President 

13 

FINANCIAL  STATEMENT 

1.  TITLE  OF  OPERATION 

Draft  Council  Regulation  establishing  a  European  Agency  for  Veterinary  and 
Phytosanitary  Inspection 

2.  BUDGET  HEADING  INVOLVED 

B2  -5104 

3.  LEGAL  BASIS 

4.  DESCRIPTION  OF  OPERATION 

4.1  General  objective 

To ensure the uniform  application  of Community  legislation  in the veterinary  and plant-
health  field  with  a view to preventing  disparities  in  controls by  the Member  States  and 
to  providing  for  uniform  arrangements  covering  imports  from  non-member  countries. 

4.2  Period  covered  and  arrangements  for  renewal  or  extension 

Open-ended. 

5.  CLASSIFICATION  OF  EXPENDITURE  OR  REVENUE 

5.1  Non-compulsory  expenditure 

5.2  Differentiated  appropriations 

5.3  Type  of  revenue  involved: 

The  measure  is  not  liable  to  generate  revenue  for  the  Community  budget. 

6.  TYPE OF EXPENDITURE OR REVENUE 

subsidy 

100% 
(where  required). 

for 

launching  of  measure.  Balancing 

subsidy 

thereafter 

Subsidy  for joint  financing  with  other  sources  in the  public  and/or  private  sector. 

14 

Interest  subsidy 
Not  applicable. 

Other 
Not  applicable. 

Should  the  operation  prove  an  economic  success,  is there  provision  for  all  or  part 
of the  Community  contribution  to be  reimbursed? 

If  the  Agency's  budget  has  the  resources  as  from  the  first  year,  all  or  part  of  the 
Community  contribution  could  be  reimbursed. 

Will  the  proposed  operation  cause any  change in the  level  of  revenue?  If  so,  what 
sort  of  change  and  what  type  of  revenue  is  involved? 

Not  applicable. 

7.  FINANCIAL  IMPACT 

7.1  Method  of  calculating  total  cost  of  operation  for  1997 (definition  of  unit  costs) 

7.2  Itemized  breakdown  of  cost 

Breakdown 

Budget 
year  (1997) 

n  + 1 
(1998) 

n + 2 

n  + 3 

n  + 4 

(ECU  million - CA) 

% 
change 

n  + 5 
and 
subs, 
yrs 

2 

4,7 

1 

1 

1 

1 

pm 

Community 
subsidy 

Total 

15 

7.3  Indicative  schedule  of  appropriations/Schedule  for  proposed  new  operation 

Breakdown 

n 

n  + 1 

n  + 2 

n  + 3 

n  + 4 

(ECU  million - CA) 

n  + 5 
and 
subs,  yrs 

% 
change 

Commitment 
appropriations 

2 

4.7 

1 

1 

1 

1 

pm 

Payment  appropriations 

2 

4.7 

n 
n  + 1 
n  + 2 
n  + 3 
n + 4 
n  + 5 
and  subsequent 
years 

-

TOTAL 

2 

4.7 

1 

1 

1 

1 

pm 

(a)  The Community  launching  aid  had  been  estimated  to  cover  100% of  the  costs  of  the 
Agency  in the first year, namely ECU 2 million  in  1997 and ECU  4.7 million  in  1998. 
These  estimates  were  arrived  at  as  follows: 

1997: 

ESTIMATED COST OF FIRST YEAR OF OPERATION WITH 40 POSTS(1) 
INCLUDING  30  INSPECTORS: 

1.  Salaries, miscellaneous  benefits  and  allowances,  missions,  social  and  medical  services 

and  facilities  (Titles  Al  and  A4  of  the budget): 

40  x ECU  39  000 

ECU  1 560  000 

2.  Operating  expenditure  covering  buildings,  furniture  and  data-processing  equipment 

(Titles  A2  and  A5  of  the budget): 

40  x ECU  11 000 

ECU  440  000 
ECU  2 000  000 

Based  on  the  assumption  the  Agency  can  be  set  up  on  1 September  1997,  this  estimate 
covers four  months' actual  operation  only.  Since the above estimate is based on the standard 
cost  of  a  new  post  (1997),  the  expenditure  is  not  broken  down  by  category /grade  but  is 
grouped  in  accordance  with  the  corresponding  EC  budget  titles. 

(1)  Calculated  using  the  average .cost  of  a post  in  1995. 

16 

However,  as  a guideline,  the  40  posts  concerned  could  probably  be  structured  as  follows: 

Category  A 
Category  B 
Category  C 

1  A2,  4  A4,  10 A5  and  15 A7 
1 Bl,  1 B3  and 2B5 
1  CI,  1 C3  and  3 C5. 

1998: 

ESTIMATED  COST  OF  SECOND  YEAR  OF  OPERATION  WITH 
40  POSTS(1)  INCLUDING  30  INSPECTORS 

Category/ 
Grade 

Titles  A1 
and A4(2> 

Titles A2 
and A5(3) 

Subtotal 
(gross) 

Number  of 
staff 

Total  cost 
(gross) 

A2 

A4 

A5 

A7 

B1 

B3 

B5 

C1 

C3 

C5 

178 881 

130 975 

105 081 

74 747 

97 225 

64 824 

48 883 

63 646 

49 450 

39 172 

16 869 

16 869 

16 869 

16 869 

16 869 

16 869 

16 869 

16 869 

16 869 

16 869 

195 750 

147 844 

121 950 

91 616 

114 094 

81 693 

65 752 

80 515 

66 319 

56 041 

1 

4 

10 

15 

1 

1 

2 

1 

2 

3 

195 750 

591 376 

1 219 500 

1 374 240 

114 094 

81 693 

131 504 

80 515 

132 638 

168123 

TOTAL 

40 

4 089 433 

That  total  should  be  supplemented  by  the  additional  cost  of missions (4). 

of  inspectors  (30  x ECU  15 000) 
of  experts  from  the Member  States 

ECU 
ECU 

450  000 
150 000 

GRAND  TOTAL 

ECU 

4 689  433 

8.  FRAUD  PREVENTION  MEASURES 

Specific  controls  contemplated:  the  Court  of  Auditors  is  responsible  for  examining  the 
Agency's accounts in accordance with Article  188c of the Treaty. The Agency is to establish 
a  financial  regulation. 

(2) 

(3) 

(4) 

Salaries,  miscellaneous  benefits  and  allowances,  missions,  social  and  medical  services 
and  facilities. 
Operating  expenditure  covering  buildings,  furniture  and  data-processing  equipment. 
The  average  annual  cost  of  missions  per  inspector  is  around  ECU  15 000. 

17 

9. 

ELEMENTS  OF  COST-EFFEVTIVENESS  ANALYSIS 

9.1 

Specific  and  quantified  objectives;  target  population 

9.1.1  Specific  objectives 

To  provide  back-up  and  support  for  measures  under  Community  regulations  in  the 
veterinary  and  plant-health  field. 

9.1.2  Target  population 

Community  and  national  inspectors. 

9.2  Grounds  for  the  operation 

9.2.1  Need  for  Community  financial  aid,  in  accordance  with  the  principle  of  subsidiarity. 

The  Community's  financial  aid  is  vital  to  launch  the  measure.  As  the  Agency's  budget 
will  subsequently  come in  principle  from  own  resources,  the aid  will  fall  to  a  negligible 
amount  or  zero. 

9.2.2  Choice  of  ways  and  means 

no  alternative 
in  line with  other  agencies. 

9.3  Monitoring  and  evaluation  of  the  operation 

The  Agency's  work  will  be  covered  by  reports  to the  Commission. 
The  Agency's  activities  will  be  subject  to  supervision  by  its  Management  Board. 

10.  ADMINISTRATIVE  EXPENDITURE 

(PART  A  OF  SECTION 

II  OF 

THE  BUDGET) 

Not  applicable. 

18 

ISSN 0254-1475 

COM(96) 223  final 

DOCUMENTS 

EN 

01  03 

Catalogue number  : CB-CO-96-261-EN-C 

ISBN 92-78-05158-6 

Office  for Official  Publications  of the European Communities 

L-2985  Luxembourg 

19