Keywords
Summary

Keywords

1. Agriculture – Common organisation of the markets – Cereals – Quotas for the production of potato starch

(Commission Regulation No 97/95, as amended by Regulation No 1125/96, Arts 1(d) and (e), 4(5), and 13(4))

2. Agriculture – Common organisation of the markets – Cereals – Quotas for the production of potato starch

(Commission Regulation No 97/95, as amended by Regulation No 1125/96, Arts 1, 4(5), and 13(4))

3. Agriculture – Common organisation of the markets – Cereals – Quotas for the production of potato starch

(Council Regulation No 2988/95, Art. 5(1); Commission Regulation No 97/95, as amended by Regulation No 1125/96, Art. 13(4))

Summary

1. The penalty provided for in Article 13(4) of Regulation No 97/95 laying down detailed rules for the application of Regulation No 1766/92 as regards the minimum price and compensatory payment to be paid to potato producers and of Regulation No 1868/94 establishing a quota system in relation to the production of potato starch, applies to a starch-producing undertaking which, although it has not necessarily exceeded the sub-quota allocated to it, obtains potatoes from a trader obtaining them directly or indirectly from potato producers, even where the purchase and delivery contract between that undertaking and the trader in question is described as a ‘cultivation contract’ by the parties to the contract and has been accepted as such by a competent national authority under Article 4(2) of that regulation, but cannot be classified as a ‘cultivation contract’ for the purposes of Article 1(d) and (e) of that regulation.

(see para. 41, operative part 1)

2. In providing for the imposition of a penalty which is not absolute but reflects the extent and seriousness of the irregularity committed in all cases in which a starch-producing undertaking takes delivery of potatoes not covered by a cultivation contract, which must be concluded with a potato producer, Article 13(4) of Regulation No 97/95 laying down detailed rules for the application of Regulation No 1766/92 as regards the minimum price and compensatory payment to be paid to potato producers and of Regulation No 1868/94 establishing a quota system in relation to the production of potato starch, in conjunction with Article 1 and Article 4(5) of that regulation, constitutes a clear and unambiguous provision, which introduces an effective and dissuasive penalty, suitable for the purpose of achieving the desired objectives and not going beyond what is necessary to achieve them.

In view of the importance of the objective of protecting producers pursued by that article, and given the wide measure of discretion enjoyed by the Community institutions in that area, it cannot be regarded as unjustified or disproportionate to impose a dissuasive and effective penalty such as the one contained in that provision in the event of an intentionally or unintentionally incorrect statement by a starch-producing undertaking applying for a premium with regard to the description ‘producer’ for the other party to the contract.

(see paras 45, 55-58)

3. The fact that the competent national authority was informed that the starch-producing undertaking had obtained potatoes from a trader obtaining them directly or indirectly from producers cannot affect the classification of an irregularity regarded as having been ‘caused by negligence’ within the meaning of Article 5(1) of Regulation No 2988/95 on the protection of the European Communities’ financial interests, nor, therefore, affect the imposition on that undertaking of the penalty provided for in Article 13(4) of Regulation No 97/95 laying down detailed rules for the application of Regulation No 1766/92 as regards the minimum price and compensatory payment to be paid to potato producers and of Regulation No 1868/94 establishing a quota system in relation to the production of potato starch.

(see para. 64, operative part 4)