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Parliamentary questions
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17 April 2019
Question for written answer E-001949-19
to the Commission
Rule 130
Juan Fernando López Aguilar (S&D) , Gabriel Mato (PPE) , Esther Herranz García (PPE)

 Subject:  State aid — Bodegas Insulares de Tenerife S.A.
 Answer in writing 

In 1989, Tenerife’s Town Council declared that the production and sale of wine constituted an ‘activity of public interest’ and must therefore be managed by the authorities. This is the only case in Europe where the authorities are in competition with private winemakers.

The Council set up ‘Bodegas Insular de Tenerife S.A.’ (BITSA) and on 8 March 1994 entered into an agreement with this company to assign it ‘management of the economic activity of the production/sale of wines’ and ‘to lease it the wineries owned by the Council’. It also set an annual fee of 6% of the value of the leased assets, which this company (in which the authorities hold a 50% stake) has defaulted on to the tune of EUR 470 000 each year since 1994.

1. Has the Commission checked whether the Council has stated which law allows it not to charge BITSA (as required by Article 92(2) of the regulation on local entity assets) the lease fee for the wineries owned by the Council, a benefit that contravenes Community law?

2. Has the Commission checked whether the fee exemption, worth millions, which was approved under the Town Council Agreement on 30 July 2010, is of financial benefit to BITSA alone or if it is more general and also of benefit to other companies?

3. Has the Commission checked whether Bodegas BILMA, bought for EUR 1.5 million with a subsidy from the Town Council, is actually up and running or if it has been abandoned in favour of turning it into a tourist attraction?

Original language of question: ES 
Last updated: 28 June 2019Legal notice