Aigner, H.

English

Archive of European Integration

16 November 1977 English Edition European Communities --;_, • -,, / I t. G (~ :_--;; EUROPEAN PARLIAMENT Working Docurnents l 977 - 1978 DOCUMENT 382/'17 Report drawn up on behalf of the Committee on Budgets on the proposals from the Commission of the European Communities to the Councilf/ I. a regulation amending Council Regulations (EJE.21 _ Jos 2052/59, 1703/72 and 2681/74 on the Community fmancing of expenditure Ir!!sulting from the supply of agricultural products as food aid (Doc. 237 /77) II. a decision amending the decision of 3 August 1972 (77/335/EEC) on the Community financing of certain expendifu!l'e arising from the irnipiementation of the Food Aid Convention of 1971 (Doc. 288/77) Rapporteur: Mr H. AIGNER PE 49.901/fin. By letters of 8 August and 23 September 1977 the President of the Council of the European Communities requested the European Parliament to deliver a1: opinion on the proposals from the Commission of the European Communitiet; to the Council for (a) a regulation amending Regulations (EEC) Nos. 2052/69, 1703/72 and 2681/74 on the Community financing of expenditure resulting from the supply of agricultural products as food aid (b) a decision amending the decision of 3 August 1972 (72/335/EEC) on the Community financing of certain expenditure arising from the implementation of the Food Aid Convention of 1971. On 19 AuJust and 7 October respectively the President of the European Parliament referred these proposals to the Committee on Budgets as the committee responsible and to the Committee on Development and Cooperation for its opinion. On 21 September the Committee on Budgets appointed Mr Aigner rapporteur. At its m~eting of 2 November 1977 it decided to draw up a joint report on the two proposals in question. At the same meeting it unanimously adopted the motion for a res:> lution. Present: Mr Aigner, acting chairman and rapporteur; Mr Alber, Lord Bessborough. Mrs Dahlerup, Mr Dankert, Mr Schreiber, Mr Shaw, Mr Terrenoire and Mr Wilrtz. The opinions of the Committee on Development and Cooperation are attached. - 3 - PE 49.901/fin. CONTENTS A. MOTION FOR A RESOLUTION. • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 5 B. EXPLANATORY STATEMENT.................................... 6 Opinions of the Committee on Development and Cooperation..... 8 - 4 - PE 49.901/fin. A The co_nmittee on Budgets hereby submits to the European Parliament the following motion for a resolution, together with explanatory statement: MOTION FOR A RESOLUTION embodying the opinion of the European Parliament on the proposals from the Commission of tht European Communities to the Council for I. a regulation amending Regulations (EEC) Nos. 2052/69, 1703/72 and 2681/74 on the Community financing of expenditure resulting from the supply 0£ agricultural products as food aid II. a decision amending the decision of 3 August 1972 (72/335/EEC) on the Community financing of certain expenditure arising from the imple-mentation of the Food Aid Convention of 1971 The European Parliament, - having regard to the proposals from the Commission of the European Communities to the Council1 , - having been r.onsulted by the Council (Docs. 237/77 and 288/77), - having regard to the report of the Committee on Budgets and the opinions of the Committee on Development and Cooperation (Doc. 382/77), 1. Reaffirms its firm commitment to a Community food aid policy that is coherent and independent of the policy for supporting the agricultural markets; 2. Feels that such a policy is not possible unless the Community has an adequate budgetary structure and instruments; 3. Approves the ~ommission's initiative to propose in the preliminary draft budgtt for 1978 a grouping of the appropriations for food aid under Title 9 of the budget; 4. Feels, nonetheless, that, for reasons of budgetary transparency, the appropriations for refunds must be itemized in the columns reserved for appropriations. 1oJ No. C 228, 24.9.1977, pp. 3 and 5 - 5 - PE 49.901/fin. B EXPLANATORY STATE1"i.ENT 1. Parliament has repeatedly expressed the wish that a coherent and independent Community policy might be adopted for the food aid sector. L•nly recently it dee la.red that it would be appalling if CorCTnunit.y food aid were suspected of serving to dispose of common agrj.cultural policy surpluses and that the lack of an overall policy in this area helped to give that inrpression1 2. Through its budgetary control activities it has been able to observe that such a p~icy is difficult to carry out as long as budgetary ties persist between the guarantee section of the fill,GGF and the :i;a.rt of the budget concerned with food aid. 3. Reacting- to Parliament's concern about the question, the Commission proposeo to t~e Council the adoption of a series of measures designed to group food-aid expenditure under Title IX of the budget, to enter expenditure for food-aid refunds under separate items of the 'guarantee' section of the EAGGF2 and to facilitate transfa:1rs of appropriationd between items concerning food aid under Title 6 and Title 93 . The Council adopted the proposal, It was Parliament's wish that this problem might be solved within the general framework of the review of the Financial Regulation, and it proposed such a 4 solution in its resolution of 14 December 1976. 4. The Corrur.ission has proposed that a further step be taken in this direction by providing in the preliminary draft budget for 1978 1 2 3 4 the grouping of all food-aid appropriations under Title 9, including, therefore, refunds, These were itemized, but appeared only in the commentaries. The Committee on Budgets feels that, for reasons of budgetary transparency, these sums must be itemized in the columns fer appr::ipriations. Contribution by Mr Bangemann to the Aigner report on the discharge for 1975 - Doc. 165/77, p.101. Regulations (EEC) 2681/74 of 21 October 1974 - OJ L/288, 25 October 1974, p.l. See report by Lord Bruce of Donington on behalf of the Committee on Budgets - Doc. 445/75. Shaw report on the modification of the Financial Regulation - Doc. 469/76. - 6 - PE 49.901/fin. \ / \/ 5. The purpose of the text proposed by the Commission is to bring various regulations into line with this new budgetary layout. In particular, Regulation (EEC} No. 2681/74, which provided for the douLle entry of food-aid expenditure, must be amended. 6. However, during the adoption of the 1978 draft budget, the Council was unable to reach agreement on this new layout and decided to defer the matter in the hope that the regulation proposed b~/ the Commission might be adopted before the appropriat:~on was entered. 7. Apart from the fact that this attitude is contrary to normal budgetary practice according to which amendments to nomenclature are effected under the budgetary procedure, the position taken by thg Council runs counter to common sense. The Council intends to decide on this proposal at the end of November; however, a budgetary decision on how these appropriations are to be presented must, without fail, have been taken before this date, since the Council has to decide on Parliament's proposed modifications and draft amendments by 21 November. 8. The position of the Committee on Budgets is basically in line with that of the majority of Council delJgations. It shouLd, therefore, be ear.y for the Council and Parliament to reach agreement on this new budgetary layout. It would be deplorable if purely formal considerations were ta prevent progress on 1:asic issues. - 7 - PE 49. 901/fin. OPINION OF THE COMMITTEE ON DEVELOPMENT AND COOPERATION Letter f~om the acting chairman to Mr LANGE, chairman of the Committee on Budgets Luxembourg, 27 October 1977 Dear Mr Lange, At its meeting of 28 September 1977 the Committee on Development and Cooperation ·.::onsidered the proposal from the Commission of the European Communities to the Council for a regulation amending Regulations (EEC) Nos. 2052/69, 1703/72 and 2681/74 on the Comr.iunity financing of expenditure resulting from the supply of agricultural products as food aid (Doc. 237/77). The committee felt that, from the point of view of budgetary transparency and as a means of rationalizing the present system, the changes proposed have much to recommend them. On the other hand, the different method of presentation has certain drawbacks, since the amount entered in the budget for development aid will be artificially inflated and give an entirely misleading picture of the real value of the aid. This could easily prompt certain bodies to give too favourable an impression of the Community's aid programme. The public is entitled to receive accurate information and to be provided with figures that are not distorted for technical budgetary reasons. We would be grateful if you would bear these considerations in mind when the proposal in question comes before your committee for adoption. Yours sincerely, (sgd.) Giovanni BERSANI Present: Mr Bersani, acting chairman: Mr Broeksz, Lord Castle, Mr Dewulf, Mr Dondelinger, Mr Glinne, Mr Hunault, Mr Jakobsen, Mr Lagorce, Mr Lezzi, Mr Martinelli, Mr Nolan Mr Price and Mr Sandri - 8 - PE 49.901/fin. OPINION OF THE COMMITTEE ON DEVE.LO.l?MENT AND COOPERATION LEtter from the chairman to Mr LANGE, chairman of the Committee on Budgets Luxembourg, 24 October 1977 Dear Mr Lange, At its meeting of J.9 October 1977 the Committee on Development and Cooperati,m considered t.he proposal from the Commission of the European Cornmuni:ies to the Council for a decision amending the decision of 3 August 1972 (72/335/EE:C) on the Community financing of certain expendi-ture arising from the inplementation of the Food Aid Convention of 1971 (Doc. 288/77) . The comrrittee noteq that from the point of view of budgetary trans-parency and also to ease certain difficulties inherent in the present system it might well be desirable to intr.oduce the proposed changes. However, it was pointed out that there were a number of drawbacks to a change ir, J;resentation since the amount entered in the budget under development aid would be artificially inflated and give a totally false impression of its true value. As a result some authorities might be tempted to give an excessively favourable impression of the Cornmunity effort. The public is e.ntitled to accurate information and to figures in the budget which are not 'distorted' for technical reasons. The members stressed that if this Commission proposal is adopted now, it is vital to make a clear did'cinction in the Community budget between real expenditure on food aid and the part relating to 'EAGGF Refunds'. We sn,)uld appreciate it if you would take these points into account when the proposal is adopted by your committee. Yours sincerely, (sgd) Colette FLESCH Chairman Present: ~iss Flesch, chairman; Mr Lagorce and Mr Sandri, vice-chairmen; Mr Berkho•lWcr (deputizing for Mr Jung), Lord Castle, Mr Deschamps, Mr Dewulf, Mr Lemp (deputizing for Mr Fl~mig), ~.ir Martinelli, .Mr Pucci (deputizing for .Mr Vernaschi) and Mr Scott-Hopkins (deputizing for Lord Reay). - 9 - PE 49.901/fin. 

Report

drawn up on behalf of the Committee on Budgets

on the proposals from the Commission of the European Communities to the

Council for

I. a regulation amending Council Regulations (EEC Nos 2052/59, 1703/72 and

2681/74 on the Community financing of expenditure resulting from the

supply of agricultural products as food aid (Doc. 237 /77)

II. a decision amending the decision of 3 August 1972 (77/335/EEC) on the

Community financing of certain expenditure arising from the implementation

of the Food Aid Convention of 1971 (Doc. 288/77). EP Working Documents 1977-1978, Document 382/77. 16 November 1977

http://aei.pitt.edu/96617/1/1977%2D78.77.382.pdf

Report
drawn up on behalf of the Committee on Budgets
on the proposals from the Commission of the European Communities to the
Council for
I. a regulation amending Council Regulations (EEC Nos 2052/59, 1703/72 and
2681/74 on the Community financing of expenditure resulting from the
supply of agricultural products as food aid (Doc. 237 /77)
II. a decision amending the decision of 3 August 1972 (77/335/EEC) on the
Community financing of certain expenditure arising from the implementation
of the Food Aid Convention of 1971 (Doc. 288/77). EP Working Documents 1977-1978, Document 382/77. 16 November 1977

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