WRITTEN QUESTION No. 1291/96 by Elena MARINUCCI to the Commission. Difference between aid for alcohol distilled from grape marc and alcohol distilled from wine lees
Date: 1996-05-31
Institutions: European Parliament, MARINUCCI
Subjects: State aid, distillation, production aid, production cost, vinification, wine













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91996E1291

WRITTEN QUESTION No. 1291/96 by Elena MARINUCCI to the Commission. Difference between aid for alcohol distilled from grape marc and alcohol distilled from wine lees  


Official Journal C 345 , 15/11/1996 P. 0050 





WRITTEN QUESTION E-1291/96 by Elena Marinucci (PSE) to the Commission (31 May 1996)Subject: Difference between aid for alcohol distilled from grape marc and alcohol distilled from wine leesAccording to Article 18 of EC Regulation 2046/89, ((OJ L 202, 17.7.1989, p. 14.)) Member States may decide to apply differentiated prices where the application of the standard price would or could make it impossible to have one or more of the by-products of wine-making distilled in certain regions of the Community.Since the price of products distilled from grape marc is on average three times the price of products distilled from wine lees, the application of the standard price in all regions of Italy could act to the disadvantage of those who distil from wine lees.This has created a crisis for the various companies which distil only from wine lees with serious social and employment consequences and the possibility that wine lees products will end up in the adulteration market.In view of the above consideration, will the Commission say:1. what is meant by 'would or could make it impossible to have one or more of the by-products of wine-making distilled'?2. why such a state of affairs should occur in certain regions in particular?3. which system is applied in the European States and their regions (standard or differentiated)?4. whether it feels it should clarify the matter, possibly through an appropriate decision of recommendation which would ensure the equal application of the directives in force?Answer given by Mr Fischler on behalf of the Commission (24 June 1996)Under Article 18 of Council Regulation (EEC) 2046/89, the Commission sets standard aid levels for each marketing year along with assistance that varies according to the basic product distilled.Under subparagraph 3 of Article 18(2), Member States may decide to apply the differentiated price if the flat-rate price could, because of the difference in distilling costs, lead distillers in certain areas to opt for a particular wine-making by-product instead of processing all of them.1-2. The phrase 'could make it impossible to have one or more of the by-products of wine-making distilled' refers to the economic viability of the distilled by-products -the lower the demand for such products, the greater the risk. The transfer cost of wine-making by-products may make the alcohol produced by such distillation uneconomic.3. Producer states apply one or other aid system depending on the above criteria and their own administrative structure.4. The Commission is considering whether a draft regulation amending Article 18 could usefully be proposed to the Council in order to take account of the economic requirements of businesses in the sector.