Canary banana producers have suffered another major setback in their plans to improve the aid it now receives not linked to investments (that of subsidies). This time, the frustration is due to the fact that this agricultural sector, so important for the Islands, will not be able to receive state compensations in 2016 for the freight of plant goods and livestock inputs originating or with destinations in the Canary Islands (that provided for the products listed in Annex I of the Treaty establishing the European Community).
Although the overall allocation for the shipment of local agricultural (those of Annex I) and industrial products (non-Annex I), as well as of livestock and industrial inputs to the Canary Islands has increased by 91% in the draft State Budget for 2016, going from 28 million Euro in 2015 to the 53.56 planned for next year, bananas will continue to be excluded from this public aid.
This situation implies that the rule governing this measure for goods in Annex I (agricultural inputs and livestock products) will remain the Royal Decree 170/2009 (amended by 349/2011 on 11 March), which makes it clear that "(...) inter-island freight, and to the rest of Spain, of agricultural products originating in the Canary Islands, except for bananas, will receive compensations amounting to 70% of the regulated costs (...)" from "(...) 2012 onwards."
Negotiators for the specific participation of the islands in the new state budget for 2016 (for REF measures), i.e., the Canary and Spanish governments, have accepted the next annual budget, of just over 53 million Euro, and have clearly preferred to avoid further breaches in this regard, which would add to those registered since 2010.
Since 2010 and up to 2015, the maximum level of aid compensation to freight; that is, 70% of the costs considered eligible, have never been reached. In 2013 and 2014, the average payments ranged between 25% and 35%, while the forecast for 2015 is to reach 50%, still 20 points below that established since 2012.
Source: eldiario.es
