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Ian Hudghton
Scottish National Party
Member of the European Parliament

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Questions
4th Dec 2002


WRITTEN QUESTION P-3621/02
by Ian Hudghton (Verts/ALE) to the Commission
(04 December 2002)

Subject: Local abattoir facilities - Western Isles of Scotland

Written question E-2293/02, asked by me and answered by Commissioner Byrne, gave an encouraging response to the possibility of support being given using Community funding under the Highlands and Islands programme to small local abattoirs, in order to bring such establishments up to required standards and ensure their viability.

Can the Commission confirm whether Mr Byrne's encouraging response took into account state aid rules, and that therefore no restriction would be applied under state aid rules to the type of assistance envisaged in that response?

P-3621/02EN
Answer given by Mr Fischler
On behalf of the Commission
(9 January 2003)

As far as state aid is concerned, point 4.2 of the Community guidelines for State aid in the agriculture sector apply. "As a general rule aid granted to support investments in connection with the processing and marketing of agricultural products may only be granted to enterprises which can be demonstrated to be economically viable, based on an assessment of the prospects of the enterprise, and which comply with minimum standards regarding the environment, hygiene and animal welfare". No aid may be granted unless sufficient evidence can be produced that normal market outlets for the services concerned can be found. For small local abattoirs, this has to be assessed at the appropriate level in relation to the services concerned, the types of investments, and existing and expected capacities.

As already the Commission has pointed out, investments for the establishment of small local abattoirs may be eligible for aid within the framework of the structural funds programme for the Highlands and Islands under Objective 1 (Article 25 – 28 of Council Regulation (EC) 1257/1999 on support for rural development from the European Agricultural Guidance and Guarantee Fund (EAGGF) and amending and repealing certain Regulations).

The Scottish authorities have to assess if these conditions are met in the case of investments for local abattoir facilities in the Western Isles of Scotland and should notify to the Commission if state aid in the sense of Art. 87 par. 1 of the EC Treaty is concerned.


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