92002E2175

WRITTEN QUESTION E-2175/02

by Armando Cossutta (GUE/NGL) to the Commission

(18 July 2002)

Subject: Proposed cuts in aid for citrus fruits

The Commission is currently considering a proposal to replace the current financial aid for citrus fruits to be delivered for processing with a flat-rate contribution of EUR 260 per hectare (as against the present figure of EUR 4 524,16). The current contribution is calculated by multiplying the Community aid per kilogram (EUR 0,13) by the average production per hectare (400 q), plus EUR 0,01 per kilo from the processing industry to which the fruit is delivered. The system currently being considered by the Commission would therefore cut producers' annual gross revenue from EUR 4 524,16 per hectare to EUR 260 per hectare!

Would the Commission not agree that a Community contribution of this size would result in orange growing being abandoned in most of the Union's production areas, particularly in those areas in which the bulk of the oranges grown are intended for industrial processing?

Given that the cost of producing 400 q of oranges (average production per hectare) stands at more than EUR 7 000 and the gross revenue would be EUR 260, on what basis is the Commission proposing that such a huge cut be made?

Answer given by Mr Fischler on behalf of the Commission

(12 August 2002)

The Commission is not considering changing the aid scheme for citrus fruits as described by the Honourable Member in his written question.

In the coming months the Commission will launch an evaluation of all the instruments available to the common organisation of the market in fresh and processed fruit and vegetables, starting with the aid scheme for producers of certain citrus fruits. Without wishing to prejudge the outcome of this exercise, which will be conducted by independent evaluators, it is no secret that one alternative to the present aid scheme is to provide area aid per hectare. This option will be analysed as such, among others.

The only official proposal from a Member State to convert the existing aid scheme into an area scheme per hectare was made by the Italian authorities in 1999 and again in 2002. This would indicate a consistent willingness on their part to continue promoting this policy line.

Any accusation that the Commission wishes to change the current aid scheme for citrus fruits in the way and to the extent described in the Honourable Member's question is thus totally unfounded.