Select Committee on European Scrutiny Twenty-Ninth Report


PROMOTION OF AGRICULTURAL PRODUCTS IN THE INTERNAL MARKET


(21601)
11274/00
COM(00) 538

Draft Council Regulation on information provision and promotion of
agricultural products in the internal market.
Legal base: Article 37 EC; consultation; qualified majority voting
Document originated: 8 September 2000
Forwarded to the Council: 11 September 2000
Deposited in Parliament: 28 September 2000
Department: Agriculture, Fisheries and Food
Basis of consideration: EM of 12 October 2000
Previous Committee Report: None, but see (18901) 5386/99: HC 34-xii (1998-99), paragraph 16 (10 March 1999)
To be discussed in Council: Following receipt of European Parliament opinion
Committee's assessment: Politically important
Committee's decision: Not cleared; further information requested

Background

  20.1  At present, the Commission operates 12 promotional schemes for agricultural products, selected over the years by the Council. Each scheme follows its own rules, and falls into one of two categories: those run directly by the Commission (olive oil, flax, nuts, and logos), and those run indirectly through the Member States or trade organisations (beef, milk products, apples and citrus fruit, grape juice, flowers, and labelling). According to the Commission, there is a need for this whole system to be simplified and made more uniform, so as to make a more effective use of the resources available. It has therefore proposed in this document that the existing schemes should be withdrawn, and replaced by a single scheme covering all promotion of agricultural products in the internal market, thus following the approach already adopted for promotion outside the Community[76].

The current proposal

  20.2  The main rationale behind the proposal is the belief that the Community can play a part in providing information of a generic character, thereby complementing, rather than overlapping with, the promotional activities of companies and national or regional authorities. It would thus concentrate on topics such as quality, nutritional value, safety, labelling and traceability, protected designations, and organic production, with a view to upgrading the image of European products in the eyes of consumers. Programmes would be part-financed (50% on average) by the Community, and 20% by the Member State endorsing them, with the balance being met by the trade organisations proposing them; and, once precise guidelines had been established by the Commission for a particular sector, the initiative for the programmes would pass to trade organisations, with Member States being responsible for monitoring their execution. For its part, the Commission would be required every three years to draw up a list of themes and products to be covered. Under the proposal, Community budgetary expenditure would be 45 million euro (£28 million) a year.

The Government's view

  20.3  In her Explanatory Memorandum of 12 October 2000, the Minister of State at the Ministry of Agriculture, Fisheries and Food (the Rt. Hon. Joyce Quin) recalls that the UK opposed the equivalent proposal relating to Third Countries on the grounds that it was not necessary for the Commission to spend funds on generic promotion. She says that similar arguments apply to the present proposal, but that, since the previous measure was adopted in spite of "sustained opposition" from the UK and some other Member States, it is not clear at this stage how much support the UK would find for opposing this latest proposal on the same grounds. She also suggests that the proposal to harmonise a number of existing promotional schemes could be argued as resulting in a more selective and targeted use of Community funds, though she also warns that, since decisions on the sectors to receive funding would be taken under the Management Committee procedure, it would be necessary to try to ensure that these were not biased towards certain sectors or Member States.

Conclusion

  20.4  We share the Minister's reservations about this proposal, as well as her unease over the potential consequences of the way in which the Commission envisages decisions being taken on the sectors to receive support. We are therefore withholding clearance, pending any further information which the Minister can provide on this point, and on how the sum of 45 million euros envisaged by the Commission compares with expenditure under the Community's existing promotional schemes.

  20.5  We also note that she has said that some Member States' trade promotional bodies, such as Food from Britain, have been consulted by the Commission, but that she has not indicated whether those bodies consulted within the UK are in favour of what is proposed. Again, we would welcome information on this.


76  (18901) 5386/99; see headnote to this paragraph. Back


 
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