(2004/C 78 E/0106)

WRITTEN QUESTION E-2349/03

by Camilo Nogueira Román (Verts/ALE) to the Commission

(16 July 2003)

Subject:   Galicia and CAP reform

What will be the situation of Galician agriculture when the CAP reform approved by the Council is implemented, bearing in mind that the Galician farming industry is characterised by the predominance of milk production, land-based family farms and a clear vocation and capacity for modernisation and, on the other hand, that the milk quota is totally inadequate to allow aspirations of non-Malthusian development? How will the measures taken as regards rural development affect Galician society? The Galician Government has stated that, in order to offset the fall in milk prices, Galicia will receive a sum of EUR 530 million in direct aid for the milk sector between now and 2014: what will be the significance of these funds, and where will they come from?

Answer given by Mr Fischler on behalf of the Commission

(11 September 2003)

The Commission considers that the latest CAP Reform offers to European farmers a clear, long-term planning framework for their business decisions, which allows them the flexibility to respond to future market demands, while at the same time contributing substantially to the stability of their incomes. The Commission believes that the reform will enhance quality, will make prices more a reflection of market demand and will allow the CAP to respond better to societal concerns regarding the environment and animal welfare. This will increase the support of consumers and taxpayers for the CAP, thus improving the image of farmers in European society.

Regarding the reform of the milk sector, the Honourable Member will recall that Commission's proposal to increase quotas by 1 % in each of the years 2007 and 2008 was turned down and that the Council decided to postpone, by one year to 2006, the 1,5 % increases already foreseen in the Agenda 2000 reform of 0,5 % in each of the years 2005, 2006 and 2007. However, the additional cuts agreed in the intervention price for butter have been compensated with higher levels of dairy premiums and additional payments to producers, now up to EUR 35,5 per tonne, which will be incorporated in the single payment scheme from 2007. These dairy premiums, which will be granted to dairy producers, are calculated from the payment rate multiplied by the individual reference quantity for milk available on the holding on 31 March of the calendar year concerned.

As for rural development, the CAP Reform package includes a number of new or reinforced measures that could be useful for Galician agriculture, during the transition to the new economic conditions expected. These measures include support for participation in food quality schemes and temporary support for compliance with new statutory standards and entry into the voluntary farm advisory system. In addition, support measures for young farmers will be reinforced and Community support for agri-environment measures strengthened. Extra funding for rural development will be made available as from 2006 by means of the compulsory modulation mechanism.