Opinion of the European Economic and Social Committee on the "Proposal for a Council Regulation amending Regulation No 79/65/EEC setting up a network for the collection of accountancy data on the incomes and business operation of agricultural holdings in the European Economic Community" (COM(2003) 472 final — 2003/0182 (CNS))
Date: 2003-10-29
Institutions: European Economic and Social Committee
Subjects: ESC opinion, EU Member State, disclosure of information, economic accounts for agriculture, farm accountancy data network, farm income

5.2.2004

EN

Official Journal of the European Union

C 32/101

Opinion of the European Economic and Social Committee on the ‘Proposal for a Council
Regulation amending Regulation No 79/65/EEC setting up a network for the collection of
accountancy data on the incomes and business operation of agricultural holdings in the European
Economic Community’

(COM(2003) 472 final — 2003/0182 (CNS))

(2004/C 32/22)

On 16 September 2003, the Council decided to consult the European Economic and Social Committee,
under Article 37 (2) of the Treaty establishing the European Community, on the above-mentioned
proposal.

On 23 September 2003, the Bureau of the European Economic and Social Committee instructed the
Section for Agriculture, Rural Development and the Environment to prepare the Committee’s work on
the subject.

Given the urgent nature of the work, at its 403rd plenary session of 29 and 30 October 2003 (meeting
of 29 October), the European Economic and Social Committee appointed Mr Allen as rapporteur-general
and adopted the following opinion unanimously.

1.

Introduction

The data network set up by Regulation No 79/65/
1.1.
EEC provides the Commission with objective and relevant
information on the CAP and is a useful tool for the Member
States as well as for the Community.

1.2.
The costs of the computerised systems on which the
network relies and of studies and development activities of
other aspects of the network should be eligible for Community
financing.

The purpose of this proposal is therefore to include
1.3.
these operations in Regulation No 79/65/EEC in order to
create an appropriate legal basis for their financing.

1.4. Moreover, for management reasons, it is proposed that
the Commission be authorised to amend the list of divisions
(regions) of Member States set out in the Annex to Regulation
No 79/65/EEC, at the request of a Member State.

2. Comments

In the context of the WTO negotiations it is necessary to have
up-to-date independent data on EU farm incomes so as to
evaluate the implications of the various agricultural policy
proposals coming before the WTO.

The Farm Accountancy Data Network (FADN) is the method-
ology to provide policy makers with objective independent
data on farm income and farm business throughout the EU.

The EESC fully agrees with the Commission proposal

2.2.
to amend Regulation 79/65/EEC by adding Article No 2a.

The Annex to the Regulation contains a list of the divisions
(regions), which were set out to reflect the different conditions
of agriculture in the member states. At present a Council
decision would be necessary each time a member state wished
to change a division for the purposes of the FADN.

The EESC believes that this procedure should be changed to a
more efficient system.

2.1.
The EESC believes that the collection of accountancy
data on the incomes and business operations of agricultural
holdings is essential. This data is particularly important so that
we can monitor the effects of the CAP Mid-Term Review on
farm incomes and also changes to farm incomes that may
result from any WTO agreement on agriculture.

The Commission amendment proposes that changes to div-
isions (regions) could be carried under the procedures con-
tained in Article 19 provided that the request for change
concerns the Member State’s own divisions. The matter could
then be agreed between the Commission and the Community
Committee as detailed under Article 19.

C 32/102

EN

Official Journal of the European Union

5.2.2004

The second proposed amendment to Regulation 79/
2.3.
65/EEC is the replacing of Article 22 (1). At present there is
no proper legal basis to finance the costs of the computerised
systems operated by the Commission for the reception,
verification, processing and analysis of accountancy data.
Unless a budget to finance the system is put on a proper legal
basis it will cease to function.

The EESC fully endorses as a matter of urgency the need to put
the FADN budget on proper legal basis by including it in the
Community Budget, in the Commission section. The EESC also
fully endorses the proposed Commission amendment
to
Regulation 79/65/EEC to achieve this result.

2.4.
The new member states will join the EU in May 2004.
We must ensure that proper procedures are put in place to
obtain objective data on farm incomes from the new member
states.

It is the EESC’s view that Article 19 should be amended by
adding the following paragraph:

‘The Commission and the Community Committee shall draw
up detailed special transitional procedures for the ten new
member states. These new procedures must take all necessary
steps so that the Commission and the Community Committee
are fully satisfied that the data obtained is truly independent
and objective and sufficiently reliable so that the new members
can be fully integrated into the present system over a five year
period.’

3. Conclusions

The EESC fully agrees with the Commission proposal to amend
Regulation 79/65/EEC by adding Article 2a. and replacing
Article 22

Brussels, 29 October 2003.

The President

of the European Economic and Social Committee

Roger BRIESCH