91998E3526

WRITTEN QUESTION E-3526/98

by Amedeo Amadeo (NI) to the Commission

(25 November 1998)

Subject: Reform of the common organisation of the market/Common Agricultural Policy (Agenda 2000)

With reference to the proposal for a Council Regulation (EC) 1766/92 on the common organisation of the market in cereals and repealing Regulation (EEC) 2731/75 fixing standard qualities for common wheat, rye, barley, maize and durum wheat and to the proposal for a Council Regulation (EC) establishing a support system for producers of certain arable crops (COM(98) 0158 final - 98/0107 CNS and 98/0108 CNS)(1).

In the case of cereals, a 10 % reduction in prices is sufficient instead of the 20 % proposed by the Commission and the proposal relating to maize is unacceptable.

The proposal relating to oil seeds is not well-founded (a 30 % reduction compared with the current aid level) as it would considerably jeopardise the competitiveness of these crops.

The situation would also worsen vis-à-vis the United States since the latter has strengthened its aid system. The sector would probably feel even more strongly the effects of enlargement to the East.

Can the Commission therefore ensure that the EU does not align its aid for oil seeds on the levels laid down with regard to cereals until there has been a transitional period during which a supplement should be granted for oil seeds?

Answer given by Mr Fischler on behalf of the Commission

(28 January 1999)

The Commission has already had the opportunity to explain to Parliament in detail the reasons underlying the Agenda 2000(2) proposals for agriculture.

With particular regard to oilseeds, bringing aid per hectare into line with that for other crops (including cereals) and voluntary freezing would greatly simplify the scheme and obviate its current specific character.

The Commission has therefore been able to propose that the oilseeds maximum guaranteed area (MGA) scheme should no longer be applied, since - under the Blair House agreement from which the scheme derived - the hectare limit applied to specific payments in respect of oilseeds. It should be borne in mind that the scheme currently in force provides for aid to be adjusted in line with oilseed prices in Europe and for penalties to be imposed if the MGA is exceeded - penalties which can quickly become very substantial, since they are cumulative if the limit is breached more than once.

Gradual adjustment over a transitional period as suggested by the Honourable Member would entail retaining these complex rules, thereby denying producers both the greater simplification and transparency of the scheme proposed from 1 July 2000 and the opportunity to adjust their crop rotations more freely in response to the likely increase in world oilseed prices brought about by the vegetable oil component.

Under the Blair House agreement, these provisions would have to be retained throughout the transitional period in order to cover any divergence between oilseed aid and cereal or freezing aid - thereby making oilseed aid specific in character.

(1) OJ C 170, 4.6.1998, p. 1.

(2) COM(97) 2000 final.