A judgment in the case on direct State assistance for biofuel producers has been adopted
The Constitutional Court has adopted a judgment in the case, wherein it assessed amendments to the procedure of granting direct State financial assistance for biofuel producers (case No. 2010-12-03 “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”).
The contested norm provides: “In 2009, the undisbursed 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 biofuel producers 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 failing to disburse the estimated sums of financial support at full amount, the State has breached the principle of legal security (Article 1 of the Satversme) and infringed the right of the applicants to own property (Article 105 of the Satversme).
The Constitutional Court found that, taking into account the previous regulatory framework, the applicants could count on receipt of a particular sum of State financial assistance; however, they could not count on receipt of this sum at full amount. The Court concluded that the State has established a payment schedule that envisages the possibility to cover, up to 2014, State outstanding sums to biofuel producers for production of 2008, such payment also including lawful interest, namely, six percent per year based on the outstanding sum of financial support.
The Constitutional Court took into consideration the fact that biofuel producers also receive indirect State assistance, like, reduced excise duty.
Consequently, the Court admitted that the Contested Norm does comply with Article 1 and Article 105 of the Satversme provided that the direct State financial assistance for the period of 2008 is paid before 2014.
The judgment of the Constitutional Court is final and not subject to appeal. It shall come into force on the date of publishing it in the newspaper “Latvijas Vēstnesis”.
Linked case: 2010-12-03