A case on amendments to the procedure of granting State financial assistance for biofuel producers has been initiated
The First Panel of the Constitutional Court has initiated a case “On Compliance of Section 30 of the Cabinet of Ministers Regulations No. 280 of 15 April 2008 “Regulations Regarding Financial Assistance Quotas for Biofuel” with Article 1 and Article 105 of the Satversme (Constitution) of the Republic of Latvia”.
Article 1 of the Satversme provides that Latvia is an independent democratic republic, whilst Article 105 of the Satversme guarantees the right to own property.
The contested norm provides the following: “In 2009, the sum of direct financial support for the biofuel produced in the second half of 2008 at the amount of 11 304 525.53 lats shall be paid to producers of biofuel before 2019 in accordance with the funding available in the State budget subprogram 21.06.00 “Support for Facilitation of Biofuel Production””.
The applicants, biofuel producers SIA “Mamas D” and SIA „Bio-Venta” indicate that, by amending the procedure of providing financial assistance and cancelling full payment of the amounts of financial support within the previously established term, the principle of legal security has been breached the right of the applicants to own property has been infringed.
The Cabinet of Ministers was asked to provide, before 19 April 2010, a reply on factual circumstances of the case and legal justification thereof. The term of preparation of the case is 19 July 2010.
Linked case: 2010-12-03