Brussels, 23/10/2000 (Agence Europe) - The European Parliament's Agricultural Committee has adopted a report by the French Socialist MEP Georges Garot, which recommends an in-depth reform of the European Commission's proposal for Regulation to create a national solidarity fund. The Commission plan is for the money to be paid directly to pig farmers, whereas the Garot report calls for the regulation fund to give rise to Community co-funding that would match the resources secured via the levies paid by each farmer or producer group. Administrative costs would also be chargeable to the Community budget (the European Commission wanted the costs to be met by the Member States that so wish, in full the first year, then gradually reduced by 20% a year). The Agricultural Committee feels that if the Member States had to pay for the administrative costs this would represent a precedent for reinvesting the Common Agricultural Policy (CAP) with a national dimension and would inevitably lead to anti-competitive practices. The Committee wants farmers to be able to choose whether or not to join a regulation fund, but those rallying to the scheme would undertake to stabilise production during a five-year period.. During a crisis period, the regulation fund would step in with a 100% contribution per farm for the first 2,000 pigs slaughtered or the first 100 sows. Over and above this the fund would be responsible for 75% of the pigs. If farmers provide proof that they have cut back production by 25% during the crisis period, the regulation fund would cover 100% of the output after the reduction. When the regulation fund is unable to provide the funding to help out in a crisis period, the EU Member States would lend their support to the fund by way cheap loans.
The report is due to be submitted to MEPs when they meet for their October plenary session.