WRITTEN QUESTION No. 2359/98 by Graham WATSON to the Commission. Payments to flax farmers
C 118/60 Official Journal of the European Communities EN 29. 4. 1999 Given that it is a stated policy of the EU to promote this globally competitive company, would the Commission adopt a favourable approach under competition law in the event of a consortium being put together for other European companies to buy into PFE? Answer given by Mr Oreja on behalf of the Commission (5 October 1998) The Commission considers that Polygram Filmed Entertainment (PFE) has played a vital role in the recent revival of the European film industry. Its position as a globally competitive player is fully consistent with the aims of the Communityís audiovisual policy. This is particularly true of PFEís distribution-led production strategy. For more details on the Commissionís latest strategic thinking, the Honourable Member is referred to the Commissionís recent communication to the Parliament and the Council entitled Audiovisual policy: next stepsí (1). PFE has received support from the MEDIA II programme, for example in the framework of the Fastlaneí training programme for producers. Article 3 of Council Decision 95/563/EC (2), on which the develop- ment and distribution strand of the MEDIA II programme is based, stipulates that áthe businesses benefiting from the programme must be in the possession and continue to be in possession, whether directly or by majority participation, of the Member States and/or of nationals from Member Statesí. Under this Article therefore, businesses must be, and continue to be, at least majority European-owned to be eligible for support. Of course any deal would have to be submitted for clearance to the Commission which will examine it in the application of competition rules. (1) COM(98) 446. (2) OJ L 321, 30. 12. 1995. (1999/C 118/073) WRITTEN QUESTION E-2359/98 by Graham Watson (ELDR) to the Commission (27 July 1998) Subject: Payments to flax farmers Will the Commission explain why monies owed to arable farmers are being paid twelve months in arrears? Answer given by Mr Fischler on behalf of the Commission (17 September 1998) Community legislation on the common organisation of the market in flax and hemp has introduced new requirements for granting aid for fibre flax from the 1998/99 marketing year. To ensure that aid cannot be paid for areas that are not actually under cultivation, the rules now stipulate as a requirement for granting the aid that a contract must be signed between producer and primary processor, an undertaking must be given to process the flax, primary processors must be approved and a minimum yield of flax straw must be attained. The requirement to carry out the actual processing of flax straw from areas covered by contracts or undertakings to process does indeed lay down that this should take place at most 12 months after the end of the marketing year. However, operators are free to comply with this requirement sooner than that in order to receive the aid in question. Moreover, potential aid recipients may receive a payment before processing provided that they lodge a security with the competent authorities of the Member State