European Scrutiny Committee Contents


8 Simplification of the Common Agricultural Policy

(30504)

7771/09

COM(09) 128

Commission Communication: A simplified CAP for Europe — a success for all

Legal base
Document originated18 March 2009
Deposited in Parliament23 March 2009
DepartmentEnvironment, Food and Rural Affairs
Basis of considerationEM of 3 April 2009
Previous Committee ReportNone
To be discussed in CouncilMay 2009
Committee's assessmentPolitically important
Committee's decisionCleared

Background

8.1 According to the Commission, the simplification of the Common Agricultural Policy (CAP) — which now forms part of its overall strategy on Better Regulation[43] — makes an essential contribution to creating a more competitive agricultural economy, and it has sought in this Communication to highlight the most recent developments, and to indicate where further simplification might be achieved in the future.

The current document

RESULTS SINCE 2005

8.2 The Commission begins by recalling what has been achieved since 2005, in terms of both technical and policy simplification. In the former case, it points to the removal of a large number of Council and Community legal acts which are now obsolescent; to the creation of a single common market organisation, bringing together all the sectoral regimes; the introduction of a streamlined policy on state aids for the sector (including a higher de minimis threshold, below which notification of an aid to the Commission is not required); the launching of a study into the administrative burden for farmers arising from the 2003 reform of the CAP; and the establishment of various forums for the sharing of best practice. As regards policy-related action, it identifies the reforms of the sugar, wine and fruit and vegetables regimes (including the inclusion of the last two of these into the Single Payment Scheme); other adaptations to that Scheme, in order to make it more "farmer-friendly"; and a greater use of impact assessments, with wider stakeholder involvement. It says that it has also provided increased training on legislative drafting, and that there has been greater use of information technology to reduce administrative burdens.

SIMPLIFICATION ACTION PLAN

8.3 The Commission points out that its Simplification Action Plan now includes 50 projects relating to the CAP, arising from suggestions made by Member States, farmers organisations, processors, and from within the Commission itself. These include the removal of a need for a beef export licence where no refund (subsidy) is involved; less burdensome requirements for the labelling of eggs; greater flexibility in the link between land ownership and a farmer's eligibility for direct support payments; a major reduction in the obligations arising from import/export licences in the sector; a reduction from 36 to 10 in the products to which fruit and vegetables grading standards apply; simpler arrangements for on-the-spot checks for cross-compliance, and the removal of any financial penalty for de minimis infringements.

8.4 The Communication goes on to highlight three particular areas which it describes as of key importance:

  • The introduction of a new single Common Market Organisation, which it says replaced all 21 individual common market organisations, thereby reducing the number of articles from 920 to about 230, and repealing 78 Council acts: as a result, it says that the CAP is now effectively regulated by only four legal acts — those on direct payments, the single Common Market Organisation, rural development, and the financing of the CAP.
  • The study on administrative burdens, which it says identified a number of elements affecting farms, notably the way in which Member States chose to apply the regulation on direct payments (including the extent to which certain elements of support have been decoupled from production); the use made by them of information technology; and structural and cultural considerations.
  • The CAP "Health Check",[44] including further decoupling and the abolition of a number of several schemes (such as payments for energy crops and durum wheat, various schemes for disposing of dairy products, and a simplification of the rules on modulation),[45] and abolition of the rules on set-aside.

Outlook

8.5 Despite the progress made so far, the Commission says that it is necessary to continue the simplification process, and it identifies a number of areas where it considers further progress can be made. These include the possibility of introducing common starting dates for legislative changes to the CAP; introducing a single legal act governing cross-compliance by harmonising the current rules; harmonising the legal framework for the communication and conservation of information and documents; providing on-farm training for its own officials to improve their understanding of the challenges facing the sector; producing a Communication on agricultural product quality as a follow up to the Green Paper[46] it put forward in October 2008; adding new projects to its rolling Action Plan, including a simplification of the administrative arrangements for the hops sector; carrying out a more regular review of the need to revise acts which have reached a certain age; seeking to make legal acts easier to read; and continuing to share best practice.

The Government's view

8.6 In her Explanatory Memorandum of 3 April 2009, the Minister of State (Farming and the Environment) at the Department for Environment, Food and Rural Affairs (Jane Kennedy) says that the UK supports measures to simplify the CAP, and is strongly in favour of encouraging the principles of Better Regulation within the Commission. She adds that unnecessary administrative burdens have an adverse economic effect on farming and related industries, not just in the UK, but across the Community, and that the Government's policy is therefore to encourage the Commission in its simplification efforts, and to work with other Member States to demand more of the Commission in this regard.

Conclusion

8.7 As this is an essentially factual document, which does not require further consideration, we are therefore clearing it. However, as it deals with an area of wider interest, and its contents reflect a number of issues on which the UK has taken an initiative, we think it right to draw it to the attention of the House.





43   (30411) 5791/09: see HC 19-xi (2008-09), chapter 9 (18 March 2009). Back

44   (29193) 15351/07: see HC 16-vii (2007-08), chapter 1 (9 January 2008). Back

45   Deductions made from support payment to fund rural development measures. Back

46   (30059) 14358/08: see HC 19-viii (2008-09), chapter 12 (25 February 2009). Back


 
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