WRITTEN QUESTION E-1630/99 by Paulo Casaca (PSE) to the Commission. Sugar and revision of Regulation (EEC) 1600/92.
Date: 1999-09-15
Institutions: European Parliament, Provisional data
Subjects: Azores, agricultural production, aid to agriculture, common agricultural policy, processing industry, sugar, sugar beet

C 170 E/56

Official Journal of the European Communities

EN

20.6.2000

Answer given by Mr Fischler on behalf of the Commission

(11 October 1999)

At the request of the Greek authorities, Article 6 of Council Regulation (EC) 3072/95 on the common
organisation of the market in rice (1) was amended in order to divide the Greek national base area into two
parts:

I.

Prefectures of Thessaloniki, Serres and Fthiotida: 22 330 hectares.

II. Other prefectures: 2 561 hectares.

As the Honourable Member points out, in the case of base area II (other prefectures), the land sown in
1998 (5 180 hectares) largely exceeded the base area (2 561 hectares), so the compensatory payment was
reduced by 100 % in accordance with Article 6(5) of Regulation (EC) 3072/95.

In response to a recent request made by the Greek authorities, the Commission now intends to propose to
the Council a further amendment of Article 6 of Regulation (EC) 3072/95 under which the regions of
Kavala and Etolia-Akarnania, which are currently included in base area II (other prefectures), would be
included in base area I instead.

Doing so should lessen the risk that the base area for (cid:145)other prefectures(cid:146) will be exceeded.

(1) OJ L 329, 30.12.1995.

(2000/C 170 E/063)

WRITTEN QUESTION E-1630/99

by Paulo Casaca (PSE) to the Commission

(15 September 1999)

Subject: Sugar and revision of Regulation (EEC) 1600/92

Sugar production and refining on the island of Sªo Miguel, in the Autonomous Region of the Azores, are
vital economic activities.

In the first place, they enable over a hundred jobs to be preserved at the local refinery and, secondly, act as
a fillip to an important agricultural alternative which, used in conjunction with other crops, makes for
more efficient land rotation.

Under Regulation (EEC) 1600/92 (Poseima) (1), the European institutions have been granted substantial
protection to various agricultural products including sugar beet.

However, for various reasons to do with the smallness of the quota allocated and difficulties in the
agricultural sector, sugar beet production has been falling from year to year, and the future viability of
sugar production and refining in the Azores will be jeopardised if nothing is done to remedy the problem.

In the light of the principles governing the common agricultural policy, Article 299(2) of the EC Treaty,
and the decisions taken at Cologne on the most remote regions, does the Commission not believe that
Regulation (EEC) 1600/92 should be revised to enable sugar production and refining to continue in the
Azores?

(1) OJ L 173, 27.6.1992, p. 1.

Answer given by Mr Fischler on behalf of the Commission

(25 October 1999)

Council Regulation (EEC) 1600/92 of 15 June 1992 concerning specific measures for the Azores and
Madeira relating to certain agricultural products takes particular account of the cultivation of sugar beet
and its processing into sugar. The Regulation provides per-hectare aid for sugar beet and aid for its
processing into sugar by the industry.

20.6.2000

EN

Official Journal of the European Communities

C 170 E/57

Aid for the processing of sugar beet was increased from € 10 to € 27 per 100 kilograms by Commission
Regulation (EC) 0562/98 of 12 March 1998 adjusting the special aid for the processing of sugar beet into
white sugar in the Azores provided for in Article 25 of Regulation (EEC) 1600/92 (1).

Despite these measures, the sugar beet crop, which was at first given a fresh boost by the Poseima
programme, has been falling since 1994. The processing industry is not, however, directly affected by this
disappointing development since it can import and refine raw sugar to meet the needs of the Azores.
Economic conditions for the industry have not worsened but rather improved since it can import this
sugar at world market prices (or with the equivalent aid if it purchases Community quota sugar).

If farmers in the Azores choose to grow crops other than sugar beet, the reasons must be sought in the
general conditions of agricultural production. The viability of
the sugar industry depends on the
consumption of sugar, which has been falling in recent years. It is the principles of the specific supply
arrangements, and in particular the principle of meeting local needs, which determine the utilisation of the
capacity to refine from imported raw sugar.

If the Portuguese authorities were to request it, the Commission would consider these issues as part of the
revision of Poseima now being undertaken.

(1) OJ L 76, 13.3.1998.

(2000/C 170 E/064)

WRITTEN QUESTION E-1631/99

by Paulo Casaca (PSE) to the Commission

(15 September 1999)

Subject: Sugar quota for the Autonomous Region of the Azores

The Act of Accession of Portugal to the European Union, point XIV(c), Vol. II, pp. 210-213, laid down a
quota of 10 000 tonnes of beet sugar for the (cid:145)sugar-producing undertaking(cid:146) situated in the Autonomous
Region of the Azores, coupled with the right to import a volume of unrefined sugar equal to the difference
between actual production and 20 000 tonnes, subject to payment of a reduced levy.

However, Regulation (EEC) 3484/92 (1) of 27 November 1992 reduced the above quantity to
10 000 tonnes, the figure likewise specified in Regulation (EEC) 1600/92 (2).

More recently, the Commission has interpreted the rules in force in such a way as to cut the quantity
again, to 6 500 tonnes of refined sugar produced from imported unrefined sugar, and, moreover, is not
ruling out the possibility of proposals for further reductions in the quota for the Azores.

Does the Commission believe that this systematic step-by-step reduction in sugar refining quotas for the
Azores is compatible with Article 299(2) of the EC Treaty?

(1) OJ L 353, 3.12.1992, p. 8.
(2) OJ L 173, 27.6.1992, p. 1.

Answer given by Mr Fischler on behalf of the Commission

(18 October 1999)

Before the Poseima programme, the sugar industry in the Azores was authorised to refine raw sugar
amounting to 20 000 tonnes less the production of sugar from local sugar beet. Following the
introduction of the Poseima specific supply arrangements permitting the import of raw beet sugar at
world market prices (or providing equivalent aid if Community raw quota sugar is used), this authorisation
was restricted to a maximum of 10 000 tonnes of sugar to meet the needs of the Azores on preferential
terms.