Brussels, 01/03/2001 (Agence Europe) - By adopted the report by Joseph Daul (EPP, French) on the reform of the common market organisation (CMO) for sugar, the EP Agriculture Committee rejected with a crushing majority (only one vote against and two abstentions) the Commission's draft regulation. The Commission suggested maintaining the present system of quotas until the 2002-2003 harvest year, with a few arrangements, while awaiting the more in-depth reforms in 2003. The MEPs feel that the present system being enforced, which expires on 30 June 2001, worked well for more than 30 years and that it should thus be extended until the deadline of the Berlin budgetary agreement, that is to say until 2006. The Dual report, which contains more than 30 amendments, was supported by all the political groups and all the national delegations, except the British Labour members.
The MEPs oppose not only the 115,000 tonnes per year reduction in production quotas, but also the ending of the compensation system for storage costs (this would allow, according to the Commission, to generate savings of EUR 300 million for the agricultural policy budget). The rapporteur suggests a reduction in institutional prices for white sugar, raw sugar and beetroot from 2001/2002 to 2005/2006 (against 2001/2002 to 2002/2003 according to the Commission) and an increase in production quotas. Mr Dual claims that the introduction of a reform until 2003 (date which coincides with the mid way revision period for the cereals, oil seed and milk sectors) seriously perturb the producers and the processing industry and do not benefit consumers in any way. The rapporteur adds that in-depth studies will be necessary before considering changes in 2006 and emphasises that these proposals would empty of meaning the undertakings made by the Union to the ACP and Indian producers. The plenary debate will take place on 12 March.