WRITTEN QUESTION E-0998/01 by Paulo Casaca (PSE) to the Commission. 1999 discharge - agriculture.
Date: 2001-03-30
Institutions: European Parliament, Provisional data
Subjects: EAGGF, closing of accounts, dairy production, financial control, fraud against the EU, olive oil, production aid

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(2001/C 364 E/035)

WRITTEN QUESTION E-0953/01

by Mar(cid:237)a Ayuso GonzÆlez (PPE-DE) to the Commission

(28 March 2001)

Subject: Packaging for fruit and vegetables

The Commission wishes to repeal Regulation (EC) No 411/97 (1)
laying down detailed rules for the
application of Regulation (EC) No 2200/96 (2) (COM in fruit and vegetables) as regards operational funds
and programmes and Community financial assistance. In paragraph 1 of the Annex to a subsequent
amendment of
is specifically stated that, amongst other environmental measures,
(cid:145)recyclable packaging(cid:146) could be eligible for funding during the period of implementation of a single
operational programme. However,
the new Commission regulation the term
(cid:145)reusable packing(cid:146) is used.

in Article 8(2)(b)(iii) of

that regulation it

In the light of the Green Paper on integrated products policy and since there will at some stage in the
future be a new proposal for a directive on packaging, could the Commission explain the reasons which
prompted the switch to a different criterion, with particular reference to the fruit and vegetable sector?

(1) OJ L 62, 4.3.1997, p. 9.
(2) OJ L 297, 21.11.1996, p. 1.

Answer given by Mr Fischler on behalf of the Commission

(29 May 2001)

laying down detailed rules for the
Commission Regulation (EC) No 609/2001 of 28 March 2001,
application of Council Regulation (EC) No 2200/96 as regards operational programmes, operational funds
and Community financial assistance, and repealing Regulation (EC) No 411/97 (1) in application of Council
Regulation (EC) No 2200/96 and repealing Regulation (EC) No 411/97, provides that certain specific costs
within approved operational programmes of producer organisations may be eligible for Community
financing.

As far as packaging for fruit and vegetables is concerned, Article 8(2)(b)(iii) specifies that operational
programmes may cover specific costs for environmental measures, which may include recyclable and / or
re-useable packaging.

(1) OJ L 90, 30.3.2001.

(2001/C 364 E/036)

WRITTEN QUESTION E-0998/01

by Paulo Casaca (PSE) to the Commission

(30 March 2001)

Subject: 1999 discharge (cid:129) agriculture

The information provided by the Commission in connection with question 2.7 of the second questionnaire
on the granting of the discharge in respect of the implementation of the general budget of the European
Union for the 1999 financial year does not reply to the questions raised in various aspects. Can the
Commission therefore clarify the following points:

With regard to question 2.7(d):

(cid:129) Can the Commission clarify the concept of production aid in the context of its answer in relation to
the support scheme for olive oil? With regard to both olive oil and milk, is the Commission referring
to the reports made by the Member States during 1999 or to irregularities occurring in 1999?

(cid:129) Table 2 on the clearance of accounts process is also difficult to understand. Can the Commission make
these comparisons in the context of fraud and irregularities, excluding market mechanisms intended to
restrict surplus production?

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(cid:129) Can the Commission make a comparison between the two sectors based on the same timescale? Can
the Commission confirm that, as regards the milk sector, the Member States notified only € 4,2
million in fraud in 1999? Can the Commission confirm that no deduction was made from the milk
sector in 1999 as part of the clearance of accounts process? Can the Commission explain how the
organisation of payment schemes can justify the disparities between the milk sector and the olive oil
sector?

(cid:129) Given the difference in scale between these sectors, the Commission(cid:146)s figures show that the Member
States are detecting hundreds of times more irregularities involving olive oil than involving milk. Does
the Commission consider it reasonable to assume that olive oil producers are hundreds of times more
predisposed to commit irregularities than milk producers?

Supplementary answer
given by Mr Fischler on behalf of the Commission

(18 July 2001)

By (cid:145)production aid(cid:146), in the olive-oil sector the Commission is referring to aid granted under Article 5 of
Council Regulation No 133/66/EEC of 22 September 1966 on the establishment of a common
organisation of the market in oils and fats (1).

Table 2 shows the financial corrections relating to decisions under the European Agricultural Guidance and
Guarantee Fund (EAGGF) accounts clearance procedure. These financial corrections cover the milk and
milk products sector and specific measures such as butter for pastrymaking, casein and the additional levy
(under the milk-quota system).

Excepting that for casein (NL), none of the corrections arise from irregularities or fraud. Those relating to
the additional
levy concern neither aid nor expenditure, but revenue ((cid:145)negative expenditure(cid:146)) for the
EAGGF, which must only be collected or credited by the Member States where there is an overrun in the
national quantity available. If a Member State fails to credit those amounts to the EAGGF, once all checks
have been completed by the authorities and the Commission, a correction covering 100 % of the additional
levy, plus interest for late payment, is proposed.

For one and the same period, i.e. 1998, 1999 and 2000, Member States(cid:146) communications on irregularities
which have been the subject of the primary administrative or judicial findings of fact under Council
Regulation (EEC) No 595/91 of 4 March 1991 concerning irregularities and the recovery of sums wrongly
paid in connection with the financing of the common agricultural policy and the organisation of an
information system in this field and repealing Regulation (EEC) No 283/72 (2) show:

(cid:129) as regards consumption aid for olive oil, a total of € 136 million, including € 131 million involving
Italy for irregularities communicated in 1998 (but relating to irregularities which occurred between
1990 and 1996). The scheme to provide olive-oil consumption aid has since been abandoned, in
particular on account of the high risk of fraud;

(cid:129) as regards production aid for olive oil, a total of € 20 million (including € 9 million for 1999 and

€ 3,7 million for 2000);

(cid:129) in the milk sector, a total of almost € 32 million (€ 30.5 million for market-support measures and
€ 1,3 million for production aid). For 1999 alone, the amounts concerned here equal € 8,8 million.

In the Commission(cid:146)s reply to point 2.7(d) of the (cid:145)Blak(cid:146) questionnaire, only production aid for olive oil was
referred to. As indicated above, the irregularities reported by the Member States in fact concerned both
production and consumption aid. The figures relating to the irregularities reported have also been verified
and updated in the meantime.

In 1999 the Commission adopted five accounts clearance decisions. The financial corrections imposed on
Member States totalled € 757,8 million. Of this only € 7,8 million concerned the milk sector.

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As the annex to the Commission(cid:146)s reply to point 2.7(d) of the (cid:145)Blak(cid:146) questionnaire for the 1999 discharge
stated, in total substantial financial corrections concerning the milk sector have nevertheless been imposed
on Member States under the Commission(cid:146)s clearance of accounts decisions adopted in 2000 and 2001.

As regards the Honourable Member(cid:146)s request for an explanation as to how the organisation of payment
schemes can justify the discrepancies between the sectors, the types of aid schemes and their inherent risks
should be considered.

In the olive-oil sector:

(cid:129) production aid is paid to the individual producer on the basis of the quantity of olive oil declared.
There is a direct relationship between the quantity declared by the oil mill and the financial aid
received by the individual producer. Controls introduced by the specific olive-oil inspection bodies
have become more effective;

(cid:129) consumption aid was paid on the basis of quality requirements and the quantity placed on the
consumer market. Despite all the controls introduced, there were numerous possibilities of corrupt
practice. This was one of the reasons for abandoning the aid scheme.

In the milk sector there are neither direct payments to producers nor payments based on the quality or
quantity of fresh whole milk; the (cid:145)aid to producers(cid:146) is paid on the basis of milk products (cid:129) casein, milk
powder, butter (cid:129) at the next stage in the processing chain: an intermediate dairy (thus not to individual
farmers).

The Commission has no reason to believe that producers in one sector are as such more likely to commit
irregularities than producers in another sector.

(1) OJ B 172, 30.9.1966.
(2) OJ L 67, 14.3.1991.

(2001/C 364 E/037)

WRITTEN QUESTION E-1004/01

by Edward McMillan-Scott (PPE-DE) to the Commission

Subject: European Initiative for Democracy and Human Rights

(30 March 2001)

What plans does the Commission have for the continued administration, monitoring and evaluation of
projects financed from Chapter B7-70?

Answer given by Mr Patten on behalf of the Commission

(3 July 2001)

On 29 April 1999 the Council adopted two Regulations (1) laying down procedures for the implemen-
tation of Community development cooperation operations contributing to the objective of consolidating
democracy and the rule of law and to that of respecting human rights and fundamental freedoms; they
provide a legal basis for all human rights and democratisation operations financed by Chapter B7-70 of the
Community budget.

Under the reform of external aid, the Directorate General (DG) for External Relations initially undertakes
programming,
to establish
in consultation with the geographical departments and the delegations,
priorities based on objectives covered by regulations on human rights and taking the EU(cid:146)s political
priorities into account. The programming is then implemented by Cooperation Office departments.