HL Deb 05 December 1994 vol 559 c72WA
Lord Tebbit

asked Her Majesty's Government:

Whether the Italian Government has yet paid the penalties agreed in respect of the Italian milk quota fraud.

Earl Howe

These penalties are collected by automatic deductions from the monthly re-imbursements of CAP expenditure. Italy has paid the penalties originally imposed by the Commission in respect of 1989 and 1990. The Commission's decision in respect of the 1991 clearance of accounts was in the process of being adopted at the time of the agreement reached at the ECOFIN Council in October. Under this agreement, the financial penalties in respect of 1989 to 1991 have been increased. It has been agreed that these supplementary fines will be paid in four equal instalments from 1995 to 1998. The remainder of the financial penalty for 1991 in respect of milk quotas will be paid in 1995. The 1992 and 1993 clearance of accounts decisions have not yet been adopted, but will incorporate the financial penalties in respect of milk quota.