REPORT on the proposal for a Council regulation amending Regulations (EC) No 1290/2005 on the financing of the common agricultural policy and (EC) No 1234/2007 establishing a common organisation of agricultural markets and on specific provisions for certain agricultural products (Single CMO Regulation) in order to set up a School Fruit Scheme

14.10.2008 - (COM(2008)0442 – C6‑0315/2008 – 2008/0146(CNS)) - *

Committee on Agriculture and Rural Development
Rapporteur: Niels Busk

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the proposal for a Council regulation amending regulations EC 1290/2005 and EC 1234/2007 on the financing of the common agricultural policy and (EC) No 1234/2007 establishing a common organisation of agricultural markets and on specific provisions for certain agricultural products (Single CMO Regulation) in order to set up a School Fruit Scheme

(COM2008 – C6‑0315/2008 – 2008/0146(CNS))

(Consultation procedure)

The European Parliament,

–   having regard to the Commission proposal to the Council (COM(2008)0442),

–   having regard to Articles 36 and 37 of the EC Treaty, pursuant to which the Council consulted Parliament (C6‑0315/2008),

–   having regard to Rule 51 of its Rules of Procedure,

–   having regard to the report of the Committee on Agriculture and Rural Development (A6‑0391/2008),

1.  Approves the Commission proposal as amended;

2.  Calls on the Commission to alter its proposal accordingly, pursuant to Article 250(2) of the EC Treaty;

3.  Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament;

4.  Asks the Council to consult Parliament again if it intends to amend the Commission proposal substantially;

5.  Instructs its President to forward its position to the Council and Commission.

Amendment  1 Proposal for a regulation – amending act Recital 2
Text proposed by the Commission	Amendment
(2) The objectives of the CAP set out in Article 33 of the Treaty include the stabilisation of markets, assuring the availability of supplies and ensuring that supplies reach consumers at reasonable prices. The provision of Community aid under a School Fruit Scheme to supply fruit and vegetable and banana products to pupils in educational establishments would meet these objectives. Further, the Scheme should bring young consumers to appreciate fruit and vegetables and therefore should enhance future consumption thereby promoting earnings in agriculture, also an objective of the CAP. In addition, under Article 35(b) of the Treaty, provision may be made within the framework of the common agricultural policy for joint measures, such as a School Fruit Scheme, to promote consumption of certain products.	(2) The objectives of the CAP set out in Article 33 of the Treaty include the stabilisation of markets, assuring the availability of supplies and ensuring that supplies reach consumers at reasonable prices. The provision of Community aid under a School Fresh Fruit Scheme to supply fruit and vegetables and bananas of Community origin, which should be as fresh as possible, seasonal, and obtainable at low cost, to pupils in educational establishments would meet these objectives. As required by the principle of subsidiarity, Member States should, when determining the target group, be accorded sufficient flexibility to enable them, in keeping with their needs, to supply school fruit to as wide a circle of users as possible. Further, the Scheme should bring young consumers to appreciate fruit and vegetables and should therefore have a highly positive effect on public health and the fight against child poverty, enhance future consumption, create a multiplier effect by involving pupils, parents and teachers, thereby having a markedly positive effect on public health and promoting earnings in agriculture, also an objective of the CAP. In addition, under Article 35(b) of the Treaty, provision may be made within the framework of the common agricultural policy for joint measures, such as a School Fresh Fruit Scheme, to promote consumption of certain products, to be combined with an additional health and nutrition education component and to provide encouragement and stimulus to regional products, including those of mountain regions.
Amendment  2 Proposal for a regulation – amending act Recital 2 a (new)
Text proposed by the Commission	Amendment
	(2a) The School Fresh Fruit Scheme should be clearly identified as an EU initiative aimed at combating obesity in young people and developing their sense of taste. It should also serve, with the aid of appropriate educational programmes, to make children aware of the changing seasons in the course of a year. To that end, education authorities should, as a matter of priority, distribute seasonal fruit, giving preference to a varied range of fruits so as to enable children to discover different tastes.
Amendment  3 Proposal for a regulation – amending act Recital 3
Text proposed by the Commission	Amendment
(3) Moreover, Article 152(1) of the Treaty requires that ‘a high level of human health protection shall be ensured in the definition and implementation of all Community policies’. The clear health benefits of a School Fruit Scheme are aspects which should be integrated into the implementation of the CAP.	(3) Moreover, Article 152(1) of the Treaty requires that ‘a high level of human health protection shall be ensured in the definition and implementation of all Community policies’. The clear health benefits of a School Fruit Scheme are aspects which should be integrated into the implementation of EU policies in general, and into the CAP in particular.
Justification
The Common Agricultural Policy should set an example of integrating a high level of health protection into its schemes.
Amendment  4 Proposal for a regulation – amending act Recital 3 a (new)
Text proposed by the Commission	Amendment
	(3a) The European Action Plan for Organic Food and Farming proposes the launch of a multi-annual EU-wide information and promotion campaign over several years to inform schools about the merits of organic farming and to increase consumer awareness and recognition of organic products, including recognition of the EU logo. The School Fresh Fruit Scheme should support these objectives, particularly with regard to organic fruit, and accompanying measures should include the provision of information about organic agriculture.
Amendment  5 Proposal for a regulation – amending act Recital 6
Text proposed by the Commission	Amendment
(6) Provision should therefore be made for Community aid to co-finance the supplying to pupils in educational establishments certain healthy products of the fruit and vegetables, processed fruit and vegetables and bananas sectors and also for certain related costs of logistics, distribution, equipment, communication, monitoring and evaluation. The Commission should lay down the conditions of the Scheme.	(6) Provision should therefore be made for Community aid to finance the supplying to pupils in educational establishments certain healthy products of the fresh fruit and vegetables sectors, processed fruit and vegetables and bananas sectors and also for certain related costs of logistics, distribution, equipment, communication, monitoring and evaluation, as well as the accompanying measures required to ensure the effectiveness of the Scheme. The Commission should lay down the conditions of the Scheme. Particular attention should be paid to the criteria of the quality and sustainability of the products covered by the Scheme: they should meet the highest standards and should, preferably, be seasonal and produced locally where possible, or within the Community.
Amendment  6 Proposal for a regulation – amending act Recital 7
Text proposed by the Commission	Amendment
(7) In order to ensure orderly implementation of the School Fruit Scheme, Member States, at national or regional level, wishing to make use of it should draw up a prior strategy. They should also provide for accompanying measures required to make the scheme effective.	(7) In order to ensure orderly implementation of the School Fresh Fruit Scheme, Member States, at national or regional level, wishing to make use of it should draw up a prior strategy, including in the area of education for the target groups. They should also provide for accompanying educational and logistic measures required to make the scheme effective, and the Commission should provide guidelines for the implementation of this regulation. Member States may incorporate these measures in an educational manner into teaching packages on health and nutrition in schools.
Amendment  7 Proposal for a regulation – amending act Recital 8
Text proposed by the Commission	Amendment
(8) So as not to restrict the overall impact of similar national measures, Member States should also be permitted to grant additional national aid for the supply of products and related costs and accompanying measures and the Community School Fruit Scheme should be without prejudice to any separate national school fruit schemes which respect Community law. However, in order to ensure a practical effect for the Community Scheme, it should not replace current funding for existing national School Fruit Schemes or other school distribution schemes that include fruit.	(8) So as not to restrict the overall impact of similar national measures, Member States should also be encouraged to grant additional national aid for the supply of products and related costs and accompanying measures and the Community School Fresh Fruit Scheme should be without prejudice to any separate national school fruit schemes which respect Community law. However, in order to ensure a practical effect for the Community Scheme, it must not replace current national funding for existing multi-annual School Fruit Schemes or other school distribution schemes that include fruit. Community financing should be supplementary in nature and is reserved for new schemes or the extension of existing schemes.
Amendment   8 Proposal for a regulation – amending act Recital 9
Text proposed by the Commission	Amendment
(9) In order to ensure sound budgetary management, a fixed ceiling of Community aid and maximum co-financing rates should be provided for and the Community financial contribution to the scheme should be added to the list of measures eligible for EAFG financing set out in Article 3(1) of Council Regulation (EC) No 1290/2005 of 21 June 2005 on the financing of the common agricultural policy.	(9) In order to ensure sound budgetary management, a fixed ceiling of Community aid and maximum co-financing rates should be provided for and the Community financial contribution to the scheme should be added to the list of measures eligible for EAFG financing set out in Article 3(1) of Council Regulation (EC) No 1290/2005 of 21 June 2005 on the financing of the common agricultural policy. If one Member State or more does not take up Community financing, the funds may be transferred and used in other Member States.
Justification
The more children take part in schemes, the greater the health benefits. More aid should be granted the more children take part, as in the school milk scheme. It should be possible to use funds not taken up in Member States which do not wish to take part in other Member States.
Amendment  9 Proposal for a regulation – amending act Recital 10
Text proposed by the Commission	Amendment
(10) In order to allow time for the smooth implementation of the Scheme, it should apply from the 2009/10 school year. A report on it should be delivered after three years.	(10) In order to allow time for the smooth implementation of the Scheme, it should apply from the 2009/10 school year. Member States should undertake an annual evaluation of the implementation and impact of the programme, and the Commission should submit a report to the European Parliament and the Council after three years. Since only a long-term programme will yield long-term benefits, it is necessary to ensure the monitoring and evaluation of the programme in order to measure its effectiveness and propose possible improvements.
Justification
The Member States are responsible for administering the programme, and if their management is to be correct they will need to evaluate it on an ongoing basis in order to take the necessary decisions.
Amendment  10 Proposal for a regulation – amending act Recital 11
Text proposed by the Commission	Amendment
(11) In order to make the scheme more effective, the Community should be able to finance information, monitoring and evaluation measures aimed at raising public awareness of, and networking measures related to, the School Fruit Scheme and its objectives without prejudice to its powers to co-finance, in the framework of Council Regulation (EC) No 3/2008 of 17 December 2007 on information provision and promotion measures for agricultural products on the internal market and in third countries, necessary accompanying measures to raise awareness about the beneficial health effects of fruit and vegetables consumption.	(11) In order to make the scheme more effective, the Community should be able to finance information, monitoring and evaluation measures aimed at raising public awareness of, and networking measures related to, the School Fresh Fruit Scheme and its objectives without prejudice to its powers to co-finance, in the framework of Council Regulation (EC) No 3/2008 of 17 December 2007 on information provision and promotion measures for agricultural products on the internal market and in third countries, necessary accompanying measures to raise awareness about the beneficial health effects of fruit and vegetables consumption. It will be essential for the Commission to undertake a major EU-wide publicity campaign for the Scheme.
Amendment  11 Proposal for a regulation – amending act Article 2 – point 1 – subpoint a Regulation (EC) n° 1234/2007 Part II – Title I – Chapter IV – section IVa – subsection IIa – Title
Text proposed by the Commission Amendment SCHOOL FRUIT SCHEME SCHOOL FRESH FRUIT SCHEME
Justification
Processed fruit and vegetable products are of lesser nutritional value and should be excluded from this Regulation. In view of the objective of achieving healthier eating for Europe’s children, only the free distribution of fresh fruit and vegetables should be supported.
Amendment  12 Proposal for a regulation – amending act Article 2 – point 1 – subpoint a Regulation (EC) n° 1234/2007 Part II – Title I – Chapter IV – section IVa – subsection IIa – Article 103g – Title
Text proposed by the Commission Amendment Aid for the supply of fruit and vegetable and banana products to pupils Aid for the supply of fruit and vegetables and bananas to pupils
Justification
Processed fruit and vegetable products are of lesser nutritional value and should be excluded from this Regulation. In view of the objective of achieving healthier eating for Europe’s children, only the free distribution of fresh fruit and vegetables should be supported.
Amendment  13 Proposal for a regulation – amending act Article 103ga - point 1 Regulation Article 2, amendment of regulation (EC) No. 1234/2007, subsection IIa, Article 103ga, point 1
Text proposed by the Commission Amendment 1. Under conditions to be determined by the Commission, from the 2009/10 school year, Community aid shall be granted for supplying to pupils in educational establishments certain products of the fruit and vegetables, processed fruit and vegetables and bananas sectors to be determined by the Commission and may also be granted for certain related costs of logistics, distribution, equipment, communication, monitoring and evaluation. 1. Under conditions to be determined by the Commission, from the 2009/10 school year, Community aid shall be granted for supplying to pupils in educational and preschool establishments certain fresh EU-produced products of the fruit and vegetable sectors, selected by the Commission, to be determined in more detail by the Member States, and shall also be granted for certain related costs of logistics, distribution, equipment, communication, monitoring and evaluation, as well as for purposes of financing the accompanying measures needed to ensure the effectiveness of the Scheme.   The Commission and the Member States shall select vegetables and fruit, which shall be as fresh as possible, seasonal, and obtainable at low cost, on the basis of health criteria, such as the fewest possible unnatural and unhealthy additives.   Local products should be used as a matter of priority in order to avoid needless transport and the resulting environmental pollution.   Organic and local fruit and vegetables shall, if available, be given particular consideration.
Amendment  14 Proposal for a regulation – amending act Article 2 – point 1 – subpoint a Regulation (EC) n° 1234/2007 Part II – Title I – Chapter IV – section IVa – subsection IIa – Article 103g – Point 2
Text proposed by the Commission Amendment 2. Member States, at national or regional level, wishing to participate in the scheme shall draw up a prior strategy for its implementation. They shall also provide for accompanying measures necessary to make the scheme effective. 2. Member States, at national or regional level, wishing to participate in the scheme shall draw up a prior strategy for its implementation, taking account of the soil and climate conditions under which fruit and vegetables are produced. In this connection, Community preference shall apply to the products concerned. The same Member States shall also provide the Community and national financial resources required for implementation and shall undertake the accompanying measures necessary to make the scheme effective, with priority for pre-school and primary-school children, to whom fruit should be distributed free of charge on a daily basis.   Under this strategy, Member States shall determine, inter alia:   - the products to be distributed, taking account of the fact that seasonal and local products are concerned;   - the age groups of the beneficiary school population;   - the schools participating in the Scheme.   In accordance with objective criteria, Member States shall give priority to locally produced, traditional fruit and vegetables and support smaller farms in implementing the scheme.   Accompanying measures shall include the provision of health and dietary advice, information on the health benefits of fruit, appropriate to the age of the students, as well as information on the particular characteristics of organic farming.
Amendment  15 Proposal for a regulation – amending act Article 2 – point 1 – subpoint a Regulation (EC) No 1234/2007 Part II – Title I – Chapter IV – Section IV a – Subsection II a – Article 103g a – Point 3 – letter a
Text proposed by the Commission Amendment (a) exceed EUR 90 million per school year, (a) exceed EUR 500 million per school year,
Justification
Due to high food prices, substantial unused funds remain under Heading 2 (agricultural expenditure).
Amendment  16 Proposal for a regulation – amending act Article 2 – point 1 – subpoint a Regulation (EC) n° 1234/2007 Part II – Title I – Chapter IV – Section 4a – subsection IIa – Article 103 ga – Point 3(b)
Text proposed by the Commission Amendment b) exceed 50% of the costs of supply and related costs referred to in paragraph 1, or 75% of such costs in the regions eligible under the Convergence Objective, b) exceed the costs of supply and related costs and those of the accompanying measures, as referred to in paragraph 1,
Amendment  17 Proposal for a regulation – amending act Article 2 – point 1 – subpoint a Regulation (EC) n° 1234/2007 Part II – Title I – Chapter IV – Section 4a – subsection IIa – Article 103 ga – Point 3(c)
Text proposed by the Commission Amendment c) cover costs other than the costs of supply and related costs referred to in paragraph 1, and c) cover costs other than the costs of supply and related costs and those of the accompanying measures required to ensure the effectiveness of the Scheme, as referred to in paragraph 1, and
Amendment  18 Proposal for a regulation – amending act Article 2 – point 1 - subpoint a Regulation (EC) No 1234/2007 Part II – Title I – Chapter IV – Section IVa – Subsection IIa – Article 103ga – paragraph 3 – point d
Text proposed by the Commission Amendment (d) be used to replace current funding for any existing national school fruit schemes or other school distribution schemes that include fruit. (d) be used to replace current public funding for any existing national school fruit schemes or other school distribution schemes that include fruit.
Justification
The amendment merely clarifies the text to the effect that point (d) applies to public funding only, as the present wording appears to imply. Private funding, by donations for example, should not be affected by point (d).
Amendment  19 Proposal for a regulation – amending act Article 2 – point 1 - subpoint a Regulation (EC) No 1234/2007 Part II – Title I – Chapter IV – Section IVa – Subsection IIa – Article 103ga – paragraph 5
Text proposed by the Commission Amendment 5. The Community school fruit scheme shall be without prejudice to any separate national school fruit schemes which respect Community law. 5. The Community school fresh fruit scheme shall be without prejudice to any separate national school fruit schemes which respect Community law. Pilot projects, conducted on an experimental basis in a small number of educational establishments for limited periods of time, shall not be considered national schemes as referred to in paragraph 3(d).
Justification
The idea is to clarify the concept of an ‘existing national scheme’ so as to enable the additionality principle to be put into effect more easily. Since the start of the 2008 school year, France has been running a pilot fruit distribution scheme in a very limited number of schools; as regards financing, 50% is provided by public funds (local and regional authorities) and 50% by private funding (from, among other sources, prevention bodies and health insurance institutions).
Amendment  20 Proposal for a regulation – amending act Article 2 – point 1 – subpoint a Regulation (EC) n° 1234/2007 Part II – Title I – Chapter IV – section IVa – subsection IIa – Article 103g – Point 6
Text proposed by the Commission Amendment 6. The Community may also finance, under Article 5 of Regulation (EC) No 1290/2005, information, monitoring and evaluation measures relating to the School Fruit Scheme, including raising public awareness of it, and related networking measures."; 6. The Community may also finance, under Article 5 of Regulation (EC) No 1290/2005, information, monitoring and evaluation measures relating to the School Fresh Fruit Scheme, including raising public awareness of it, and related networking measures.";
Justification
Processed fruit and vegetable products are of lesser nutritional value and should be excluded from this Regulation. In view of the objective of achieving healthier eating for Europe’s children, only the free distribution of fresh fruit and vegetables should be supported.
Amendment  21 Proposal for a regulation – amending act Article 2 – point 3 Regulation (EC) No 1234/2007 Article 184 – Point 6
Text proposed by the Commission Amendment (6) before 31 August 2012 to the European Parliament and the Council on the application of the School Fruit Scheme provided for in Article 103ga, accompanied, if necessary, by appropriate proposals. The report shall in particular address the issues of the extent to which the scheme has promoted the establishment of well functioning School Fruit Schemes in Member States and the impact of the Scheme on the improvement of children’s eating habits. (6) before 31 August 2012 to the European Parliament and the Council on the application of the School Fruit Scheme provided for in Article 103ga, accompanied, if necessary, by appropriate proposals. The report shall in particular address the issues of: - the extent to which the scheme has promoted the establishment of well functioning School Fruit Schemes in Member States and the impact of the Scheme on the improvement of children’s eating habits;   - the extent to which opting for national cofinancing, by means of a parental contribution, has or has not influenced the outreach and effectiveness of the scheme;   - the relevance and impact of national accompanying measures, in particular the way in which the School Fresh Fruit Scheme and accompanying information on a healthy diet are incorporated into the national curriculum;

EXPLANATORY STATEMENT

INTRODUCTION

Far too little fruit and vegetables are eaten in the EU in relation to the WHO’s recommendations of a minimum 400 grams per day and, moreover, consumption is falling. At the same time there is an obesity epidemic among children; it is estimated that there are 22 million overweight children in the EU, 5.1 million of whom are considered to be severely overweight.

A high intake of fruit and vegetables reduces the risk of a large number of diseases and prevents overweight and severe overweight. Eating habits are established in childhood and the indications are that children who learn to eat a lot of fruit and vegetables continue to do so as adults.

In 2007, the organisation of the market in fruit and vegetables underwent a fundamental reform towards greater market orientation, thereby bringing the organisation into line with the rest of the modernised common European agricultural policy. Responsibility for the prevention and management of crises lies with the producer organisations, export aid and aid for processing has been removed and fruit and vegetables are now fully integrated into the single payment system. In other words, it is demand which determines supply. With the reform of the organisation of the market in fruit and vegetables, it was unanimously decided to reverse the falling consumption of fruit and vegetables. Higher demand will promote public health first and foremost but will also benefit European farmers producing fruit and vegetables.

The health aspect is the most important reason for launching a school fruit scheme in the EU.

BUDGET

Excessive weight entails a greater risk of cardiovascular disease, diabetes, high blood pressure and certain forms of cancer. These diseases constitute one of the greatest threats to public health in the EU and the cost of treatment weighs heavily on the Member States’ health budgets. In its impact assessment, the Commission refers to two of the all too few studies carried out to shed light on the link between health expenditure and too low an intake of fruit and vegetables. Seen in this light, expenditure on a school fruit scheme should be regarded as a parallel saving in the Member States’ health budgets which, overall, has a positive effect, first and foremost on public health but also on the European economy. Until a daily intake of 600 grams is achieved, which several experts recommend for people from age 11 upwards, the advice should be the more fruit and vegetables, the greater the savings. Prevention is cheaper than treatment.

The Commission proposes an allocation of 90 million euro in the Community budget. That corresponds to one piece of fruit one day a week for thirty weeks a year and covers children aged six to ten years. Member States may supplement and extend the scheme but the aid cannot be used instead of existing, permanent schemes.

To achieve all the positive effects of introducing a school fruit scheme, there must be a far greater allocation of funds. One piece of fruit a week is not sufficient either to change eating habits or to achieve an effect on public health. A school fruit scheme should consist of a portion of fruit per pupil per day and not only be aimed at school children aged six to ten years, as the Commission proposes.

In order to encompass the many different traditions and schemes already existing within the EU, a school fruit scheme must be flexible enough to be geared to local, regional and national conditions. This flexibility should also extend to national co-financing, where it is up to each individual Member State to decide how the national contribution is financed (by national, regional or local budgets, via parent payments etc.).

SCHOOL FRUIT AND SCHOOL MILK

For more than 30 years, various forms of EU aid have been granted to distribute milk to school children. In the 2006-2007 school year, 305 000 tonnes of school milk were distributed in 22 Member States, to which the EU contributed more than EUR 50 million. The rules on school milk have been simplified and the range of products has been extended so that the Member States can choose to prioritise low-fat dairy products and the scheme has thereby become nutritious.

There is no budget cap on the distribution of school milk, only a cap on quantity of 0.25 litres of milk per pupil per day. This means that the more participants there are, the more aid is allocated. A corresponding system is desirable for the school fruit scheme, under which a cap on quantity of one portion of fruit or vegetable per pupil per day could be set.

It is gratifying to see that the Commission has made use of the wide range of experience gained from the school milk scheme.

In conclusion, your rapporteur would urge the Commission to keep the European Parliament informed of the list of products approved at Community level for inclusion in the school fruit scheme.

PROCEDURE

Title	School Fruit Scheme
References	COM(2008)0442 – C6-0315/2008 – 2008/0146(CNS)
Date of consulting Parliament	12.9.2008
Committee responsible        Date announced in plenary	AGRI 23.9.2008
Committee(s) asked for opinion(s)        Date announced in plenary	BUDG 23.9.2008		ENVI 23.9.2008
Not delivering opinions        Date of decision	BUDG 3.9.2008		ENVI 16.7.2008
Rapporteur(s)        Date appointed	Niels Busk 24.6.2008
Discussed in committee	9.9.2008		7.10.2008
Date adopted	7.10.2008
Result of final vote	+: –: 0:	33 0 0
Members present for the final vote	Vincenzo Aita, Peter Baco, Niels Busk, Luis Manuel Capoulas Santos, Giovanna Corda, Albert Deß, Gintaras Didžiokas, Konstantinos Droutsas, Constantin Dumitriu, Michl Ebner, Duarte Freitas, Ioannis Gklavakis, Lutz Goepel, Friedrich-Wilhelm Graefe zu Baringdorf, Esther Herranz García, Lily Jacobs, Elisabeth Jeggle, Heinz Kindermann, Stéphane Le Foll, Véronique Mathieu, Mairead McGuinness, Rosa Miguélez Ramos, Neil Parish, María Isabel Salinas García, Agnes Schierhuber, Willem Schuth, Czesław Adam Siekierski, Alyn Smith, Petya Stavreva, Donato Tommaso Veraldi
Substitute(s) present for the final vote	Katerina Batzeli, Esther De Lange, Maria Petre, Zdzisław Zbigniew Podkański, Struan Stevenson
Substitute(s) under Rule 178(2) present for the final vote	Bernard Wojciechowski