Proposal for a Council Regulation (EC) amending Regulation (EEC) No 3650/90 on measures to strengthen the application of the common quality standards for fruit and vegetables in Portugal
Date: 1997-06-03
Institutions: European Commission
Subjects: Portugal, fresh fruit, fresh vegetable, quality control of industrial products, quality standard

COMMISSION OF THE EUROPEAN  COMMUNITIES 

Brussels,  03.06.1997 
COM(97) 261  final 

97/ 0152 (CNS) 

Proposal for a 

COUNCIL REGULATION (EC) 

amending Regulation (EEC) No 3650/90 on measures to strengthen the application 
of the common quality standards for fruit and vegetables in Portugal 

(presented by the Commission) 

EXPLANATORY  MEMORANDUM 

Subject:  Amendment  to  Regulation  (EEC)  No  3650/90  on  measures  to  strengthen  the 
application of the common quality standards for fruit and vegetables in Portugal 

Between  the  first  and  the  second  stages  of  the  transitional  period  for  fruit  and  vegetables,  the 
Portuguese authorities presented a programme of measures in accordance with Council  Regulation 
(EEC) No 3650/90 and Commission Regulation (EEC) No 268/91. That programme was  approved 
by the Commission in April  1992 with a view to improving the application of the common  quality 
standards  for  fresh  fruit  and  vegetables  and  strengthening  the  arrangements  for  checking 
compliance  with  the  latter.  The  time  limit  for  implementation  was  to  last  five  years  and  thus 
expires in April 1997. 

By letter of  14 October  1996, the Portuguese  authorities  requested  the  Commission  to  extend  the 
time  limit  for  the programme  in question  to  31 December  1999. Financial  implementation  of the 
programme has fallen  far behind the schedule  laid down. According to the Portuguese  authorities, 
the  reasons  for  the  delay  in  implementation  lie  in  the  reorganization  of  the  Portuguese 
administration  as  a result  of  changes  to  government  structure  as  well  as  internal  legal  problems 
relating to the recruitment of inspectors. 

However, the Portuguese programme has already resulted  in a vertical  inspectorate being  set up in 
Portugal  and  the  activities  provided  for  in  the  programme  could  be  fully  implemented  without 
major  problems on condition  that  further  time is allowed.  Regulation  (EEC) No 3650/90  provides 
for a Community financial  contribution amounting to 80% of eligible expenditure. An extension of 
the  programme  would  not  result  in  any  change  in  the  overall  budget  as  approved  by  the 
Commission  in  1992  but  owing  to  the  non-utilization  of  Community  appropriations,  it  would 
require  that  part  of  the  commitment  and  payment  appropriations  not  used  by  the  Portuguese 
authorities  during  the  initial  implementation  period  for  the programme  (cf.  financial  analysis)  be 
included in the  1998 and  1999 Community budgets. 

The reform  of the common  organization  of the market  in  fruit  and vegetables pursuant  to  Council 
Regulation  (EC)  No  2200/96  places  special  emphasis  on  the  trade  standards  and  compliance 
therewith.  The  application  of  such  standards  is  compulsory  and  also  affects  the  producer 
(organizations), intra and extra-Community  trade and consumers. 

The  Commission  considers  that  it  is  especially  important  to  extend  the  programme  in  question. 
Although  experience  has  highlighted  the  cumbersome  procedures  involved  in  introducing  an 
operational  inspectorate,  the  latter  is  likely  to  ensure  that  compliance  with  quality  standards  for 
fresh fruit and vegetables in Portugal is sufficiently  observed and it requires Community support to 
be extended for a reasonable additional period. 

Given budget requirements, the Portuguese request  should be acceded  to and  an extension  of two 
and  a  half  years  granted  for  implementation,  expiring  on  30  September  1999,  the  financial 
schedule  and  latest  applications  for  Community  financing  needing  to  be  presented  by 
15 November  1999 so as to enable the situation to be fully  settled in the  1999 budget. 

-2 

In view of the fact that financing has hitherto covered the period from April of one year to April in 
the  following  year,  this  will  continue  to  apply  until  April  1999,  the  last  period  running  from 
5 April to 30 September 1999 (six months). 

3 

Proposal for a 

Council Regulation (EC) No 

of 

amending Regulation (EEC) No 3650/90 on measures to strengthen the application 
of the common quality standards for fruit and vegetables in Portugal 

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, 

Having regard to the opinion of the European Parliament, 

Whereas a programme of measures to improve the application of the common quality standards  for 

fruit  and  vegetables  and  to  strengthen  the  arrangements  for  checking  compliance  with  those 

standards  must  be  implemented  in  Portugal  over  a five-year period  in  accordance  with  Council 
Regulation (EEC) No 3650/901; 

Whereas  the  Portuguese  programme  was  approved  by  the  Commission  on  4 April  1992  and 

whereas Portugal has fallen behind in implementing the measures provided  for in that programme, 

which expires on 4 April  1997, for reasons connected with restructuring of the administration; 

Whereas  on  14  October  1996  the  Portuguese  authorities  requested  the  Commission  for  an 

extension of the programme to 31 December  1999; 

Whereas,  in  order to  allow  Portugal  to continue  implementing  the measures  already  approved  by 

the  Commission,  the  time  limit  for  implementation  of  the  programme  should  be  extended  to 

30 September  1999 and  all  measures,  including  Community financing, should  be  fully  settled  by 

15 November 1999, 

1  OJ No L 362, 27.12.1990, p. 22. 

4 

HAS ADOPTED THIS REGULATION: 

Regulation (EEC) No 3650/90 is hereby amended as follows: 

Article 1 

1. 

In  the  first  subparagraph  of  Article  1(1),  the  words  "over  a  five-year  period"  are 

replaced by "by 30 September  1999". 

2.  Article 3(1) is replaced by the  following: 

" 1.  The Community  shall contribute  80% of eligible  expenditure  as defined  pursuant  to 

Article 4 incurred in carrying out the measures referred to in Article 2. 

The  programme  provided  for 

in  Article  1  must  be  fully 

implemented  by 

30 September  1999  and  settled,  including  Community  financing,  by  15 November 

1999." 

Article 2 

This  Regulation  shall  enter  into  force  on  the day 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 

For the Council 

r 

FINANCIAL  STATEMENT 

Proposal  for  a  Council  Regulation  (EC)  No  ..../97  amending  Regulation  (EEC)  No  3650/90  on 
measures to strengthen the application of the common quality standards  for  fruit  and vegetables in 
Portugal. 

1. 

BUDGET ITEM:  B2  - 511 INSPECTION  IN AGRICULTURE 

2. 

APPROPRIATIONS FOR THIS ITEM FOR THE CURRENT FINANCIAL YEAR: 

Commitment appropriations:  ECU 33 million 
ECU 24 million 
Payment appropriations: 

3. 

AUTHORIZED  CARRY-OVER: 

-  Not automatic: none 

4. 

EXPENDITURE  ARISING  FROM  THE  PROPOSED  COMMISSION  DECISION  (ESTIMATE):  ECU 
4.617 MILLION 

For the current and subsequent (if necessary) financial  years: 
-  For the appropriations for the budget items referred to: 

Commitment 
appropriations 

Payment 
appropriations 

1997: 

1998 

1999 

Total 

P.M. 

0.6 

1.048 

1.648 

1.539 

1.539 

1.539 

4.617 

5.  OTHER  FINANCIAL IMPACT OF THE DECISION:  / 

6. 

CALCULATION  METHOD:  SEE EXPLANATORY NOTE 

7. 

BASIC REGULATION:  : COUNCIL REGULATION (EEC) No 3650/90 

Opinion of the Director-General  for budgets: 

Comments: 

The  Portuguese  authorities  would  like  to  be  able  to  make  use  of  the  balance  of  the  initial  sum 
provided  for  in  the  Regulation,  ECU 4.617  million.  This  means  that  the  payment  appropriations 
will  have  to  be  made  available  again  and  additional  commitment  appropriations  will  have  lo  be 
made  available  for  the  sum  requested,  minus  the  balance  still  available:  ECU 4.617  -  2.969  = 
1.648 million. 

£ 

FINANCIAL CONSEQUENCES OF THE PORTUGUESE AUTHORITIES'  REQUEST 
FOR AN EXTENSION  IN THE TIME LIMIT FOR IMPLEMENTATION 

I. 

Original Budget: 

The original financial statement provided that the funds  for the measures were to come  from 
heading B2-511 of Chapter B2-51 of the budget with execution as follows: 

Year 

1991 
1992 
1993 
1994 
1995 
1996 
1997 
Total 

CA/PA (ECU million) 

0.6 
5.5 

II. 

Utilization of Appropriations by the Portuguese Authorities: 

In  early  1997,  the  Portuguese  authorities  had  used  the  appropriations  made  available  as 
follows: 

Year 

Forecast utilization (CA/PA) 

Actual utilization  (CA/PA) 

1992 
1993 
1994 
1995 
1996 
Total 

1 100 000 
1 100 000 
1 100 000 
1 100 000 
1 100 000 
5 500 000 

52 846 
59 929 
325 442 
262 194 
132 893 
883 304  (18%) 

Theoretical balance on expiry: ECU 4 616 696 

1-

III. 

Present Budget Situation: 

It  is  clear  that  for  reasons  they  put  forward,  the  Portuguese  authorities  have  used  only  a 
small percentage of the  appropriations made available each year, which,  at least  as regards 
payment appropriations, involves a loss to the Community budget. 

The Portuguese  authorities  now  wish  to continue  to be allocated  the unused  sums,  despite 
the  way  the  Community  budget  functions  and  appropriations  lost  hitherto,  which  should 
therefore be included in the  1998 and 1999 budgets. 

Luckily, the situation  is not as negative as it appears, since in order to cover the larger part 
of the Portuguese programme, commitments  amounting to ECU 4.5 million were made and 
commitment  appropriations  amounting  to  ECU  2.969  million  remain,  expiring  on 
31 December  1997 (b97, 93, sin, 003172), which  could be  extended  to  31 December  1999 
to  cover  part  of  the  theoretical  balance  of  ECU 4 616 696  requested  by  the  Portuguese 
authorities. 

From the viewpoint of commitment appropriations, the situation is therefore  as follows: 

Balance to be covered in 1997, 1998 and  1999 
Commitment remaining 
Appropriations  requested in 1998 PDB 
Appropriations required in 1999 PDB 

ECU 4 616 696 
ECU 2 969 000 
ECU  600 000 
ECU  1  047 696 

However, from  the viewpoint of payment appropriations, the appropriations hitherto unused 
by  the  Portuguese  authorities  must  be  reconstituted  or  they  must  be  requested  from  the 
budget authority. 

This implies  identifying: 

In the  1997 budget 
In the  1998 budget 
In the  1999 budget 

ECU  600 000 
ECU 2 008 348 
ECU 2 008 348. 

f 

ISSN 0254-1475 

COM(97) 261 final 

DOCUMENTS 

EN 

03 

Catalogue number  :  CB-CO-97-249-EN-C 

ISBN 92-78-20626-1 

Office  for Official  Publications of the European Communities 

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