91998E2215

WRITTEN QUESTION E-2215/98

by David Thomas (PSE) to the Commission

(16 July 1998)

Subject: Payments for intervention storage

What level of payments are made by the Commission to Member States for in situ intervention storage of cereals? In addition, what additional payments are made for handling cereals entering and leaving intervention stores?

What correlation is there between payments made in Member States and the rates set by the EU? Can the Commission publish the rates of payment made in Member States?

Does the Commission consider that different payments rates for storage across the EU distort competition?

Answer given by Mr Fischler on behalf of the Commission

(8 September 1998)

The intervention storage costs of cereals are reimbursed to the Member States on the basis of standard amounts fixed from time to time by Commission decision. The standard amounts applicable for the 1998 financial year are ECU 1,76 per ton entry costs(1), ECU 1,71 per ton removal costs with tolerance(2) (ECU 1,98 per ton without tolerance) and ECU 1,11 per ton per month storage costs.

The method of calculation of these standard amounts, which are applied across the Community, is laid down in Commission Regulation (EEC) 1643/89 of 12 June 1989 defining the standard amounts to be used for financing material operations arising from the public storage of agricultural products(3) and is based on the weighted average of the real costs communicated by the four least expensive Member States, provided that those Member States hold at least 33 % of the quantities of the product in question. The Commission does not have a policy of publishing the real rates communicated to it for the purpose of this calculation.

Since the Commission pays a uniform rate throughout the Community, the suggestion that different payment rates for storage across the Community distort competition is not relevant. Although the real rates applicable from one Member State to another may vary, this is a reflection of the market conditions in each Member State.

(1) If no physical movement of product takes place, the standard amount is reduced by ECU 0,72 per ton.

(2) Article 4 of Commission Regulation (EEC) 3597/90 of 12 December 1990 on the accounting rules for intervention measures involving the buying-in, storage and sale of agricultural products by intervention agencies, OJ L 350, 14.12.1990.

(3) OJ L 162, 13.6.1989.