§ Mr. SpellarTo ask the Minister of Agriculture, Fisheries and Food what action he proposes to take following the fines levied by the European Commission on countries for allowing farmers to collect subsidies to which they were not entitled.
§ Mr. JackThe financial penalties, or disallowances, imposed by the Commission's decision on the 1991 clearance of accounts will be collected from the member states concerned by automatic deductions from the monthly reimbursements of common agricultural policy expenditure. The UK has fared well, with disallowance of some £2 million compared to a total disallowance of £1.2 billion for all member states. It is important to note that disallowances are penalties imposed on member states for the failure to implement properly legislation relating to CAP scheme rules and controls.
While these deficiencies may result in farmers, or other recipients, being paid subsidies for which they are not eligible, this is by no means always the case. Some two thirds of the 1991 disallowance is on Italy and Spain for failure to implement milk quotas and exceeds the amounts received by those member states in respect of milk support. Where farmers are found to have overclaimed, it is the member state's responsibility to recover the money due and apply the appropriate penalties. Failure to do so would render them liable to disallowance.
We are keeping our own procedures under constant review. With regard to other member states, we are committed to ensuring that proper controls are in place, and that appropriate penalties are applied where this is not the case. We fully support a proposal currently on the table which, among other things, seeks to speed up the clearance of accounts process and improve the financial management of the CAP.