Select Committee on European Legislation Tenth Report


EUROPEAN AGRICULTURAL GUIDANCE AND GUARANTEE FUND: GUARANTEE SECTION

7. We have given further consideration to the following on the basis of further information from the Government. We maintain our opinion[14] that it raises questions of political importance, but now make no recommendation for its further consideration:-

MINISTRY OF AGRICULTURE, FISHERIES AND FOOD
(17610) 11133/96 COM(96)504 Financial Report on the EAGGF Guarantee Section 1995.
Legal base: Article 10 of Council Regulation (EEC) No.729/70.
      Background

      7.1  The 25th Report on the EAGGF Guarantee Section was presented to the Council in a new format which did not cover all the issues previously addressed. At our request, we were supplied with a copy of a working document which set out the information in the traditional format. Although the Commission document covered its relations with European Parliament, it did not emphasise the role of the Council of Ministers - which is significant in relation to the Guarantee Section of the EAGGF budget because it is compulsory expenditure. We asked for the Minister's views on whether the shortened report was adequate and on points of concern in the working document in respect of fraud.

      The Government's view

      7.2  In a letter of 16 December the Minister of State at the Ministry of Agriculture, Fisheries and Food (Mr Baldry) said that the Commission's decision to change the presentation was "essentially resource driven". On the question of fraud he told us that it was for the Commission's services to ensure that proper penalties are in force. In a further letter of 21 January 1997 the Minister expands on the reference to "essentially resource driven". He points out that a formal report needs to be translated into all eleven languages, which delays consideration of official text by two to three months. He emphasises that the Council and its working groups have been regarding the formal report and the working document as one, and that their ability to scrutinise the Commission's discharge of its financial responsibilities has not been diminished. He considers that this development is an opportunity for examining whether further changes could be made to improve transparency and accountability.

      7.3  On relations between the Commission and the Council, the Minister of State confirms that "where compulsory expenditure such as a CAP spending is concerned, the Commission and the Council necessarily work very closely together". He says that there have been no new developments in this relationship, but that relations with the European Parliament have been evolving and were therefore mentioned in the report.

      Conclusion

      7.4  In view of this further information and the Minister's assurance that the formal report and the working document are considered as an entity, we are now clearing the document.


14  (17610) 11133/96; see HC 36-v (1996-96), paragraph 5 (4 December 1996). Back


 


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Prepared 31 January 1997