Restoring support for olive oil used in the manufacture of certain preserved foods
2.3.2006
WRITTEN QUESTION P-0981/06
by Duarte Freitas (PPE‑DE)
to the Commission
It is common knowledge that a large proportion of tuna is preserved in olive oil. This is also the case in the conserving industry in the Azores, which employs around 800 people and accounts for approximately 25 % of the region’s exports.
The cost of oil has risen by around 61 % recently, because of higher transport costs, a rise in the market price and the disappearance of Community support.
Until October 2005, under Commission Regulation (EEC) No 1963/79[1] of 6 September 1979 laying down detailed rules for the application of the production refund on olive oil used in the manufacture of certain preserved foods, the industry benefited from a valuable subsidy, which helped it to be viable and competitive on national and international markets.
The regulation was revoked by virtue of Article 24 of Chapter IV of Regulation (EC) No 865/2004[2] of 29 April 2004, and hence the industry ceased to have access to the subsidy.
The practical result of this measure is the difficult situation in which the Azorean processing firms find themselves, since it increases the production costs of tinned tuna by 11 % and leads to an inevitable loss of revenue and economic viability.
Can the Commission therefore say:
- 1.whether it can offer solutions to the problem and what steps it will take to remedy the crisis affecting the sector, especially in the Azores;
- 2.whether it considers that some form of state aid may ease the situation?
OJ C 329, 30/12/2006