WRITTEN QUESTION No. 1382/99 by Joan COLOM I NAVAL EU aid to the Spanish flax industry
29. 1. 2000 EN Official Journal of the European Communities C 27 E/35 Information is not kept centrally in a comprehensive form. The information the Commission holds indicates that deregulation has been introduced for all bus services in the United Kingdom (other than in London and Northern Ireland), that limited competition has been introduced for some or all bus services in Denmark, Germany, Spain, France, Portugal, Finland, Sweden and the United Kingdom (London), and that limited competition has also been introduced for some or all conventional rail services in Germany, the Netherlands, Sweden and the United Kingdom. (2000/C 27 E/039) WRITTEN QUESTION P-1382/99 by Joan Colom i Naval (PSE) to the Commission (1 September 1999) Subject: EU aid to the Spanish flax industry For a number of weeks now, the Spanish press has been criticising the huge increase in EU aid to the Spanish flax industry ü which has risen from ESP 23 million in 1993-1994 to more than ESP 10 000 million in 1998-1999 ü as well as the fact that a number of public officials or their relatives have materially benefited from these large subsidies. In the wake of these reports and the ensuing political debate, a number of senior officials have felt called on to resign. Is the Commission aware of these facts? Can it state whether it has identified any cases of fraud or irregularity, or whether it intends to open an investigation to determine whether the Spanish authorities responsible for administering CAP aid can be called to account? Answer given by Mr Fischler on behalf of the Commission (9 September 1999) The increase in Community expenditure on Spanish fibre flax merely reflects how the area sown to flax in Spain has expanded over recent marketing years: 187 ha in 1993/94, 3 599 ha in 1994/95, 11 497 ha in 1995/96, 46 613 ha in 1996/97, 49 045 ha in 1997/98 and 92 202 ha in 1998/99. The Community legislation governing the common organisation of the market in flax has developed considerably over the period in question. Grant of the aid has been made subject to many conditions precisely to prevent aid being paid for areas not really used to grow flax. For instance, growers are now obliged to conclude contracts with primary processors, who must undertake to process the flax and be granted approval. From the 1998/99 marketing year, grant of the aid is also subject to a minimum yield in flax straw. Checks on the expenditure declared by Spain under the fibre flax aid scheme as part of the clearance of accounts of the European Agricultural Guidance and Guarantee Fund (EAGGF) for the 1994 and 1995 financial years revealed certain shortcomings in the current control arrangements. A flat-rate penalty of 10 % was accordingly applied to the financial years concerned. As part of the EAGGF clearance of accounts for 1996 to 1998, the Commission asked the Spanish authorities what measures they had taken to mitigate the shortcomings found previously. The work and procedures concerned are under way. The Commission has learned through the press of the events referred to by Honourable Member and the work of the committee set up by the Spanish Parliament to investigate the matter. In addition, the European Fraud Prevention Office (OLAF) has asked the Spanish courts (the fraud-prevention prosecutor, to be precise) to investigate whether Community aid for fibre flax has been being correctly administered and checked by the competent authorities and, if not, whether there are likely to be criminal proceedings. The OLAF will follow the investigation closely