Mary Coughlan (Donegal South West, Fianna Fail)

The European Court of Auditors' Special Report No. 8 of 2004 on the European Commission's management and supervision of the measures to control the 2001 foot and mouth disease outbreak and of the related expenditure was issued on 16 November 2004. The audit was carried out at the Commission and in France, Ireland, The Netherlands and the United Kingdom. The objectives of the audit were to ascertain whether the analytical method used by the Commission as the basis for the strategy for eradicating the disease was up to date; whether the strategy had been implemented effectively; and the system for reimbursing to member states expenditure on compensating farmers and slaughtering their animals was adequate, rapid and non-discriminatory.

The court found that in the absence of a more clearly defined Community framework for the calculation of compensation to be paid to their farmers, member states were able to introduce a variety of systems that gave rise to variations in the treatment of farmers within the Community. Due to this variety of compensation systems, the Commission's task of determining the amounts eligible for reimbursement proved to be complex. This caused considerable delays in reimbursements to member states. In a number of cases, there were double payments of animal premiums as a result of the authorisation given by the Commission to member states to pay animal and slaughter premiums to farmers, in addition to compensation for foot and mouth disease compensation, without their having to comply with the related control conditions. After the crisis, many shortcomings in the prevention and control arrangements were remedied, but the financial framework had not been revised.

In light of these findings, the court recommended that the Commission clarify the financial framework applicable to epidemics of animal disease, while reducing as far as possible the financial risk to the Community budget. The Commission subsequently submitted proposals to address the foregoing in respect of foot and mouth disease.

The report was discussed at the AGRIFIN working party on financial agricultural questions on 3 December 2004, at which the court's findings and recommendations and the replies given by the European Commission were supported by those member states concerned by the 2001 foot and mouth disease crisis. This matter is likely to come before the Council in the coming months in order for it to take note thereof.

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