92000E2944

WRITTEN QUESTION E-2944/00

by Bart Staes (Verts/ALE) to the Commission

(19 September 2000)

Subject: Government subsidies for manure processing

Manure processing is one way of tackling the problem of nitrate and phosphate pollution caused by intensive pig-farming (as an alternative to reducing pig stocks).

In France and Denmark, government subsidies are paid to pig producers to enable them to process manure. This distorts competition with countries where pig-farmers do not receive subsidies for manure processing.

1. Is the Commission aware of the government subsidies paid to pig-farmers in Denmark and France for manure processing? If so, does the Commission consider them to be in accordance with European competition rules? If not, will the Commission provide information about the Danish and French government subsidies as soon as possible to make it possible to assess whether or not they are causing distortion of competition in relation to pig-farmers in countries where no subsidies are paid for manure processing?

2. What measures will the Commission adopt in the light of the answer to Question 1?

Answer given by Mr Fischler on behalf of the Commission

(18 October 2000)

The Commission has no knowledge of any aid granted to pig farmers to process manure in France or Denmark.

State aids to cover operating costs would normally not be compatible with Articles 87 and 88 (ex Articles 92 and 93) of the EC Treaty. The Commission attaches great importance to investigating allegations that (illegal) state aids are being paid. However, in order to do so the Commission would need to have more information about the nature of the aids which are being granted (is the aid granted to farmers or to the undertaking processing the manure) and about the level at which the aid is administered (national, regional or local).

The Commission would be grateful if the Honourable Member could provide the information in his possession.