WRITTEN QUESTION E-3019/96 by Riccardo Garosci (UPE), Gian Boniperti (UPE) and Luigi Florio (UPE) to the Commission (11 November 1996)

Subject: Milk-quota fines imposed in Italy

A Lit 421 bn fine has been imposed on Italian dairy farmers for having exceeded the milk quotas allocated to Italy by the European Union, even though it is very difficult to calculate accurately the amount of milk produced in a country which also consumes imported milk. There are only approximate AIMA estimates (ranging from 95 to 108 million quintals) of the amount of milk produced in Italy, the dairy sector has recently been affected by the 'mad cow' epidemic and this latest financial burden jeopardizes thousands of jobs and will require 120 000 animals to be slaughtered.

In view of the above, does the Commission not consider that:

1. It should suspend the fine imposed on Italian dairy farmers until new, more reliable production estimates are available, taking into account the fact that, inter alia, the Brescia Regional Administrative Tribunal has already accepted the appeal lodged by 900 farmers, thereby suspending the fine?

2. It should ensure that all communications to farmers concerning the quantity of milk to be produced and the compensation amounts available arrive on time and not always late?

3. It should guarantee both the jobs of thousands of farmers and the product quality which penalties of this nature are likely to jeopardize?

Answer given by Mr Fischler on behalf of the Commission (29 November 1996)

Community legislation states that the additional levy on milk is due on production which exceeds the total guaranteed quantity at the level of the Member State.

In the 1995/96 marketing year, eleven Member States, including Italy, exceeded the total quantity.

Operation of the arrangements requires knowledge of the quantities delivered or sold directly by milk producers. By 15 May of each year, the purchaser notifies the authority in the Member State of the total volume of milk equivalent delivered by producers and the sum of the individual reference quantities. By 1 September of each year, purchasers liable to the levy pay the amount due in accordance with arrangements to be determined by each Member State.

The Honourable Member can see that compliance with these obligations provides easy and accurate knowledge of the quantities produced. These obligations are the basis for the operation of the quota system.

In reply to the first question, the Commission does not consider that disputes and court cases have a suspensory effect on payment of the additional levy. Under Community legislation, it is the purchaser who is responsible for the levy, which he pays to the responsible authority from deductions from the price of milk paid to producers liable to the levy or, if necessary, by any other appropriate means.

In reply to the second question, the Commission regards problems concerning the communication of data for the sound management of the scheme as governed by Articles 3 and 4 of Regulation (EEC) No 536/93. ((OJ L 57, 10.3.1993. )) The methods for offsetting the excess quantities produced and unused reference quantities are likewise strict and clearly defined by legislation. Accordingly, if the Member State applies the provisions correctly, there is no reason to doubt that the compensation procedure will in due course benefit all producers who need it.

In reply to the third question, the Commission considers quotas to be of fundamental importance for the maintenance of milk production, and hence employment, in areas where there would be no other agricultural activity. The Commission also believes that the arrangements for a additional levy on milk production as a means of controlling supply has a positive influence on the quality of milk products.