WRITTEN QUESTION E-0852/04 by Michl Ebner (PPE-DE) to the Commission. Building projects in East Africa.
Date: 2004-03-19
Institutions: European Parliament, Provisional data
Subjects: EU aid, East Africa, European Development Fund, construction policy, cooperation policy, medical institution, poverty, urban renewal

C 88 E/542

Official Journal of the European Union

EN

8.4.2004

The merits of extending the scope of reduced rates to new areas have been carefully examined. For
historical reasons, the reduced rate applies to books in 12 Member States and the zero rate in two Member
States (Denmark applies a unique rate of 25 % to all goods and services). On the other hand, all 15 Member
States apply, at the current time, the standard rate of VAT to audio supports.

The proposal for a Directive concerning reduced rates of VAT (3) of 23 July 2003 aims essentially at
improving the functioning of the Internal Market by rationalising the use of reduced rates by Member
States to avoid potential distortions and by allowing Member States equal possibilities to apply reduced
rates.

In terms of rationalising the present situation, category 6 of Annex H has not been modified by the
Commission proposal and reduced rates applied to books can be maintained. Moreover, the Commission
proposes including in category 4 the following goods:

The supply of medical equipment, aids and other appliances normally intended to alleviate or treat
disability, for the exclusive personal use of the disabled, and apparatus and electrical, electronic or
other equipment and means of transport, designed or specially adapted for the disabled. Repair of
such goods.

Should this proposal be adopted, audio, video or other supports specially designed or specially adapted for
the disabled could be subject to a reduced VAT rate. As there is no other definition at Community level,
Member States will have to determine if audio books should be considered as part of this category even if
the mainstream population can also buy and use them.

The Commission is aware of the problem the Honourable Member referred to and it will keep this
question in mind during the negotiation of the Commission proposal of 23 July 2003, currently examined
by the Council.

It is now up to the Council to decide, by unanimity, and in the light of the opinion of the Parliament, on
the future scope of the reduced rates of VAT. However, a more targeted solution to this particular problem
could perhaps be found outside the VAT system, by a national system of grants or refunds to compensate
for the VAT paid. This matter falls within the competence of the United Kingdom authorities.

(1) Council Directive 92/77/EEC of 19 October 1992 supplementing the common system of value added tax and

amending Directive 77/388/EEC (approximation of VAT rates) (cid:1) OJ L 316, 31.10.1992.

(2) Sixth Council Directive 77/388/EEC of 17 May 1977 on the harmonization of the laws of the Member States
relating to turnover taxes (cid:1) Common system of value added tax: uniform basis of assessment, OJ L 145,
13.6.1977.

(3) COM(2003) 397 final.

(2004/C 88 E/0554)

WRITTEN QUESTION E-0852/04

by Michl Ebner (PPE-DE) to the Commission

(19 March 2004)

Subject: Building projects in East Africa

East Africa covers the area east of the Central African Rift Valley between Ethiopia and the Ruvuma River
and includes the countries of Uganda, Kenya, Rwanda, Burundi and Tanzania. Typical of these countries
are weak and underfunded State institutions, often unable to fulfil important government responsibilities.
They can therefore cope with only very few of the challenges posed by sustainable development. The result
is poverty and social underdevelopment. Moreover, running water, electricity and smoothly operating
infrastructure are still rarities, with a lack of educational
institutions and poor health also impeding
progress.

8.4.2004

EN

Official Journal of the European Union

C 88 E/543

Since the regions do not possess their own financial resources to combat the poverty, they have to rely on
the transfer of capital and on development work from abroad.

In the light of the precarious situation in East Africa, will the Commission say:

(cid:1) whether there already are Commission-assisted building projects for East Africa covering all the

technical fields in construction and architecture, or

(cid:1) whether any are planned?

Answer given by Mr Nielson on behalf of the Commission

(27 April 2004)

The European Union’s development policy since November 2000 has focused on poverty reduction and
has three priority areas of cooperation: economic development, social and human development,
integration and regional cooperation.

Under this approach priorities are set on a country-by-country basis and the principle of channelling
resources to one or two focal sectors is a key element of cooperation. The part played by construction in
this cooperation varies in each individual case, but it is impossible to estimate the value of all the
assistance we have provided in this area as it forms part of broader programmes.

The majority of building projects are in two priority sectors: health and education, but other sectors also
receive aid for the rehabilitation of infrastructure to underpin broader-based programmes. The European
Development Fund (EDF) finances building and rehabilitation of health infrastructure ranging from small
health centres to referral hospitals. In the education sector the EDF provides assistance for the setting-up
and rehabilitation of primary classes,
In the 1990s alone,
EUR 150 million was provided for health infrastructure in all African, Caribbean and Pacific (ACP)
countries and accounted for some 30 % of EDF resources for the health sector. Examples include the
building of two 250-bed hospitals at a total cost of EUR 23 million each in Malawi, and, in the same
region, the decision taken by the Commission on 17 February this year to finance the rehabilitation of the
National Assembly’s buildings and the construction of a building for the Supreme Court and the Ministry
of Justice in Rwanda at a cost of EUR 8 million. The implementation of this financing demonstrates
Rwanda’s determination to move towards the rule of law and good governance with the European Union’s
active support.

technical colleges and universities.

All these projects are designed according to the highest standard by specialised EU and local consultants
which include architects, engineers and surveyors.

Projects are awarded to public works companies following invitations to tender. Because they are typically
low technology and low cost compared,
to road projects, most building projects are
undertaken by local companies and this increases their socio-economic impact.

for example,

(2004/C 88 E/0555)

WRITTEN QUESTION E-0854/04

by Roger Helmer (PPE-DE) to the Commission

(19 March 2004)

Subject: Common external tariffs

Further to the Written Question P-0472/04 (1) by Roger Helmer (PPE-DE) and the answer given by
Mrs Schreyer on behalf of the Commission on 5 March 2004:

1. What was the value in 2002 of imports of agricultural products from outside EU-15 (by total and by
Member State) on which aggregated agricultural duties of EUR 1,18 billion (before collection costs)
were charged?