BETA

Activities of Igor ŠOLTES related to 2015/2065(INI)

Plenary speeches (2)

2016/11/22
Dossiers: 2015/2065(INI)

2016/11/22
Dossiers: 2015/2065(INI)

Amendments (29)

Igor ŠOLTES, Marco ZULLO

Motion for a resolution
Citation 3 a (new)

- having regard to the European Parliament's Written Declaration 0088/2007 'Investigating and remedying the abuse of power by large supermarkets operating in the European Union',

2015/09/18
Committee: IMCO

Igor ŠOLTES, Marco ZULLO

Motion for a resolution
Recital D

D. whereas significant structural changes have taken place in the business-to- business (B2B) food supply chain in recent years, involving concentration and horizontal, cross border and vertical integration of entities operating in the production, processing and retail sectors;

2015/09/18
Committee: IMCO

Igor ŠOLTES, Marco ZULLO

Motion for a resolution
Recital E

E. whereas UTPs occur where there is a lack of economic balance in trading relations between ~~partners in the food supply chain, resulting from~~food supply chain actors such as farmers and suppliers on one hand, and manufacturers, processors and retailers on the other hand, lead to bargaining power disparities in business relations and constituting a serious disturbance to market balance;

2015/09/18
Committee: IMCO

Igor ŠOLTES, Marco ZULLO

Motion for a resolution
Recital F

F. whereas unfair practices may have harmful consequences for the food supply chain, which in turn ~~may have~~has a detrimental impact on the entire EU economy; whereas UTPs ~~may~~ discourage cross-border trade in the EU and hinder the proper functioning of the internal market; whereas unfair practices can result in particular in enterprises cutting back on investment and innovation owing to a reduction in income and a lack of certainty, and may lead them to abandon production, processing or trading activities;

2015/09/18
Committee: IMCO

Igor ŠOLTES, Marco ZULLO

Motion for a resolution
Recital G

G. whereas UTPs are an obstacle to the development and smooth functioning of the internal market and seriously disrupt market mechanisms;

2015/09/18
Committee: IMCO

Igor ŠOLTES, Marco ZULLO

Motion for a resolution
Recital G a (new)

Ga. whereas such squeezes on suppliers have negative knock-on effects on both quality of employment and environmental protection;

2015/09/18
Committee: IMCO

Igor ŠOLTES, Marco ZULLO

Motion for a resolution
Recital G b (new)

Gb. whereas consumers potentially face a loss in product diversity, cultural heritage and retail outlets as a result of UTPs;

2015/09/18
Committee: IMCO

Motion for a resolution
Recital J

J. whereas UTPs are covered only in part by competition law, ~~the provisions of which~~in part because competition focuses primarily on needs of consumers, therefore provisions of competition law relate to only a few UTPs in the B2B food supply chain;

2015/09/18
Committee: IMCO

Igor ŠOLTES, Marco ZULLO

Motion for a resolution
Paragraph 3

3. Welcomes the setting up of the Supply Chain Initiative, which has resulted in the adoption of a set of principles of good practice in B2B relations in the food supply chain and a voluntary framework for the implementation of those principles; believes that efforts to promote fair trading practices in the food supply chain can make a real impact; nevertheless notes that groups representing farmers have chosen not to participate because there is no enforcement mechanism nor mechanism for confidential complaints;

2015/09/18
Committee: IMCO

Igor ŠOLTES, Marco ZULLO

Motion for a resolution
Paragraph 10

10. Points out that UTPs imposed by parties in a stronger bargaining position clearly have a negative impact; stresses that UTPs can hamper investment and product innovation, and have a detrimental effect on product quality; in addition that UTPs lead to uncertainty in production which can also lead to overproduction and unnecessary food wastage;

2015/09/18
Committee: IMCO

Motion for a resolution
Paragraph 11

11. Believes that the Supply Chain Initiative and other national and EU voluntary systems (codes of good practice, voluntary dispute settlement mechanisms) should be further developed and promoted; in conjunction with effective and strong enforcement mechanisms at Member State level and EU level coordination, encourages producers and traders to become involved in such initiatives; takes the view that they should play ~~a leading~~ role in efforts to combat UTPs; recognises the potential that such initiatives have as alternative forums for dispute resolution;

2015/09/18
Committee: IMCO

Igor ŠOLTES, Marco ZULLO

Motion for a resolution
Paragraph 13

13. Stresses that action to combat UTPs will help to ensure the proper functioning of the internal market and to develop cross- border trading within the EU and with third countries;

2015/09/18
Committee: IMCO

Motion for a resolution
Paragraph 14 a (new)

14a. Calls on the Commission and Member States to fully and consistently enforce Directive 2011/7/EU on combating late payments in commercial transactions, in order that creditors be paid within 60 days by businesses, or otherwise face interest payments and payment of reasonable recovery costs of the creditor;

2015/09/18
Committee: IMCO

Igor ŠOLTES, Marco ZULLO

Motion for a resolution
Paragraph 15

15. Reaffirms that free and fair competition, freedom to contract and ~~proper~~strong and effective enforcement of the relevant legislation to protect all entities in the food supply chain, irrespective of geographical location are of key importance in ensuring the proper functioning of the food supply chain;

2015/09/18
Committee: IMCO

Igor ŠOLTES, Marco ZULLO

Motion for a resolution
Paragraph 16 a (new)

16a. Welcomes the Commission's acknowledgement in its Green paper of 31 January 2013 that there is no true contractual freedom where there is marked inequality between parties;

2015/09/18
Committee: IMCO

Igor ŠOLTES, Marco ZULLO

Motion for a resolution
Paragraph 18

18. Suggests that work should begin on EU rules on the establishment or recognition of national public agencies with responsibility for enforcing laws to combat unfair practices in the food supply chain; takes the view that public agencies of this kind should be empowered to conduct investigations on their own initiative and on the basis of informal information and complaints dealt with on a confidential basis (thus overcoming the fear factor), as well as to impose penalties; The issue of unfair trading practices in the supply chain has the been the subject of 5 European Parliament resolutions including 3 specifically on imbalances and abuses in the food supply chain, since 2009; further notes that the European Commission has produced 3 Communications, one Green paper and commissioned two Final Reports on similar subjects in the same timeframe; on this basis declares that yet more analysis on the state of UTPs in the food supply chain will merely delay the pressing need for action to help all food supply chain actors address UTPs. Therefore recommends that work should begin swiftly on a Directive based on Article 114 TFEU providing for the establishment or recognition of national public agencies with responsibility for enforcing laws to combat unfair practices in the food supply chain; takes the view that the EU should establish minimum standards for principles, including an open list of outlawed UTPs, and operational procedures regarding investigations undertaken by such agencies on their own initiative and on the basis of informal information and complaints dealt with on a confidential basis (thus overcoming the fear factor), as well as to impose dissuasive penalties of amounts sufficient to ensure that no enterprise can profit from imposing UTPs; Such a Directive should also provide for a single European market coordination forum to enable national enforcement bodies to provide advice, facilitate exchange of good practice and information, cooperate on cross border cases, analyse new forms of UTPs and where appropriate, cooperate in setting and imposing penalties in cases involving operators from more than one Member State. Such public agencies should be sufficiently staffed and funded, and also coordinate with relevant enforcement bodies in Member States and in third countries;

2015/09/18
Committee: IMCO

Igor ŠOLTES, Marco ZULLO

Motion for a resolution
Paragraph 20 a (new)

20a. Recognises that self regulation, EU and Member State legislation as well as independent adjudicators and dispute resolution entities can all co-exist and work together to end UTPs in the food supply chain;

2015/09/18
Committee: IMCO

Motion for a resolution
Paragraph 21 a (new)

21a. Notes that the Commission's report on the SCI (COM(2016)32) highlights that one of the weaknesses of the SCI is that it does not allow for individual confidential complaints. Supports the Commission's proposal to improve the functioning of the SCI to allow alleged victims of UTP to complain confidentially. Furthermore suggests that anonymity and confidentiality be incorporated into any future legislative initiatives in this area.

2016/03/02
Committee: IMCO

Motion for a resolution
Paragraph 21 b (new)

21b. Notes that the Commission's report regarding the supply chain initiative (SCI) (COM (2016)32) highlights that one of the weaknesses of the SCI is lack of effective deterrents. Thereby calls on the Commission to establish mechanisms to ensure effective deterrents such as fines (as a percentage of turnover in the Member State(s) affected. Supports the Commission's proposal to nominate an independent body with the power to investigate and impose sanctions. In addition, suggests that this independent body have the power to monitor, perform unannounced spot- checks, right to initiate investigation into alleged or potential UTPs as well as to investigate UTPs originating from a complaint.

2016/03/02
Committee: IMCO

Motion for a resolution
Paragraph 21 c (new)

21c. Notes that the Commission's report on the SCI (COM(2016)32) highlights as a strength, the SCI's EU wide nature. Nevertheless is disappointed that the Commission's report and underlying study by Areté does not examine in detail the nature of cross-border UTPs. Underlines that large food retail companies use centralised sourcing more and more as it increases their bargaining position and allows them to exploit economies of scale. Notes accordingly the subsequent weakening of the position of their suppliers and other actors in the supply chain. Highlights that centralised sourcing can also lead to forum shopping for the Member State with the weakest enforcement/legislative framework or penalties. Underlines that one of the priorities for the Juncker Commission is a deeper and fairer internal market and emphasises that failure to address UTPs, including centralised purchasing, undermines this priority as well as another Juncker Commission priority, that of growth and jobs. Therefore calls on the Commission to evaluate the impact of central sourcing by multinationals on UTPs and to check that adequate enforcement mechanisms exist to curb cross-border UTPs by such companies.

2016/03/02
Committee: IMCO

Motion for a resolution
Paragraph 21 d (new)

21d. Is disappointed in the Commission's conclusion to reassess the potential added-value of EU action only by the end of its mandate. Highlights that actors in the food supply chain suffer significant financial injury as the result of late or postponed payment or remittances due to accounting errors as well as unilateral imposition of arbitrary penalties. Therefore is disappointed that the Commission is willing to continue to allow food supply chain actors to continue to suffer financial detriment for at least another 3 years before reconsidering the need to introduce EU action. Calls on the Commission to evaluate the cost of non- action in this sector, and to make this information public. Reminds that the issue of unfair trading practices in the supply chain has been the subject of 5 European Parliament resolutions including 3 specifically on imbalances and abuses in the food supply chain, since 2009; further notes that the European Commission has produced 3 Communications, one Green paper and commissioned two Final Reports on similar subjects in the same timeframe; on this basis declares that yet more analysis on the state of UTPs in the food supply chain will merely delay the pressing need for action to help all food supply chain actors address UTPs. Therefore recommends that work should begin swiftly on a Directive based on Article 114 TFEU which should provide for the establishment or recognition of national public agencies with responsibility for enforcing laws to combat unfair practices in the food supply chain; takes the view that the EU should establish minimum standards for principles, including an open list of outlawed UTPs, and operational procedures regarding investigations undertaken by such agencies on their own initiative and on the basis of informal information and complaints dealt with on a confidential basis (thus overcoming the fear factor); in addition this Directive should provide that national and EU agencies monitor the implementation of such a Directive including unannounced spot-checks, as well as to impose dissuasive penalties of amounts sufficient to ensure that no enterprise can profit from imposing UTPs; Such a Directive should also provide for a single European market coordination forum to enable national enforcement bodies to provide advice, facilitate exchange of good practice and information, cooperate on cross border cases, analyse new forms of UTPs and where appropriate, cooperate in setting and imposing penalties in cases involving operators from more than one Member State. Such public agencies should be sufficiently staffed and funded, and also coordinate with relevant enforcement bodies in Member States and in third countries.

2016/03/02
Committee: IMCO

Motion for a resolution
Paragraph 21 e (new)

21e. Takes note that the Commission's report on the SCI notes that overall level of trust in SCI is high amongst companies who are aware of it; nevertheless points out that this does not correlate with high trust in SCI amongst food supply chain actors as a whole as SMEs and farmers are under-represented and less aware of the SCI due to their relatively lower resources and lack of support from their representative organisations such as COPA-COGECA (European representative organisations for farmers and agri-cooperatives). Therefore, it cannot be claimed that SCI adequately covers all stakeholders in the food supply chain, especially the weakest actors in this chain. Furthermore notes that the Commission's report states that SCI members are significantly more likely to say that the situation regarding UTPs in the food supply chain has improved since the establishment of the SCI. Points out that this does not necessarily mean improvements throughout the food supply chain as the SCI membership is not representative of all the actors in the food supply chain, i.e. that SCI members input into the governance of the SCI to their own advantage whilst non-members cannot, thus further introducing further bias into the voluntary governance of UTPs in the food supply chain.

2016/03/02
Committee: IMCO

Motion for a resolution
Paragraph 21 f (new)

21f. Is disappointed that the Commission's report fails to understand that the SCI is structurally unsuited to achieving the aim of reducing or eliminating SCIs in the food supply chain; underlines that without significant restructuring of SCI leadership and internal governance, the SCI will never be able to reliably protect complainants (fear factor) nor apply enforceable sanctions.

2016/03/02
Committee: IMCO

Motion for a resolution
Paragraph 21 g (new)

21g. Regrets that the Areté study did not examine the cost of food wastage which is a consequence of UTPs, suppliers often find food being sent back for arbitrary reasons and that this is being used as a form of market control used by retailers and tier-one suppliers to offset changes in supply and demand, thus transferring risk up the supply chain. This is contrary to the general principle of fair dealing ('contracting parties should deal with each other responsibly, in good faith and with professional diligence') of the SCI's own Principles of Good practice (PGP); as well as the PGP's specific principles of predictability ('Unilateral change to contract terms shall not take place unless this possibility and its circumstances and conditions have been agreed in advance. The agreements should outline the process for each party to discuss with the other any changes necessary for the implementation of the agreement or due to unforeseeable circumstances, as provided in the agreement'), compliance ('Agreements must be complied with'), responsibility for risk ('All contracting parties in the supply chain should bear their own appropriate entrepreneurial risks');

2016/03/02
Committee: IMCO

Motion for a resolution
Paragraph 22 a (new)

22a. Notes the Commission's observation that farmers' representatives decided not to join the SCI as in their view it does not ensure sufficient confidentiality for complainants, lacks statutory powers for independent investigations and meaningful sanctions as well as an absence of mechanisms to combat well- documented UTPs and that their concerns about imbalances in the nature of enforcement mechanisms have not been properly taken into account. Believes that farmer participation is crucial and that increasing participation is not due to lack of awareness, rather lack of faith in current SCI procedures and governance. Therefore proposes that improving the functioning of the SCI inter alia via independent governance, confidentiality and anonymity, and effective enforcement and effective deterrent, could as a first step increase farmer interest, support, and thereby participation.

2016/03/02
Committee: IMCO

Motion for a resolution
Paragraph 22 b (new)

22b. Notes that the Commission report states that more than 20 Member States have introduced legislation or are planning to do so in the near future. Nevertheless notes that the national schemes examined as examples in the Areté report are either weakly enforced, embryonic in their development and/or lack farmer participation. Therefore their added value in combatting UTPs at this moment is questionable. In addition, highlights that national schemes have a fundamental weakness, that of problems ensuring that actors based in other Member States respect their UTP initiatives in their own Member States, i.e. that Member States along cannot ensure respect for their national initiatives alone, be they legislative or non-legislative; thus highlighting once again the need for a EU-wide solution(s).

2016/03/02
Committee: IMCO

Motion for a resolution
Paragraph 22 c (new)

22c. Supports the Commission's intention to publicise and increase awareness of the SCI, particularly amongst SMEs; encourages the Commission to also target micro-enterprises in their publicity campaigns.

2016/03/02
Committee: IMCO

Motion for a resolution
Paragraph 22 d (new)

22d. Questions the Commission's unwavering support for the Supply Chain Initiative (SCI) in its report, given its limitations; reiterates farmers' reluctance to participate on account of a lack of trust, restrictions on anonymous complaints, a lack of statutory power, an inability to apply meaningful sanctions, the absence of mechanisms adequate to combat well-documented UPTs, and concerns about imbalances in the nature of enforcement mechanisms, which have not been adequately taken into account; regrets the Commission's reluctance to ensure anonymity and appropriate sanctions.

2016/03/02
Committee: IMCO

Motion for a resolution
Paragraph 22 e (new)

22e. As a follow up to the Commission's report, calls on the Commission, Member States and other relevant stakeholders to facilitate the incorporation of farmers' organisations (including POs and APOs) within the scope of national enforcement bodies governing the food supply chain, primarily by securing the anonymity of complaints and an effective sanctions regime.

2016/03/02
Committee: IMCO