On Tuesday, the Casa do Douro highlighted its dire financial situation, lacking funds even for basic expenses like water and electricity, and appealed to the government to release it from “administrative constraints” and implement law no. 28/2024, recently approved by parliament.
In response to a request for comment, the Ministry of Agriculture stated today that following the previous government’s inauguration in March 2024, the existing legislation was strictly adhered to, with the planned elections taking place.
These elections occurred in December, and the new leadership and the regional council of winemakers assumed their roles earlier this year.
At Tuesday’s press conference, Rui Paredes, President of Casa do Douro, emphasized the financial, technical, and institutional hurdles preventing the full achievement of this association’s new mandate. He argued that as the “promoter and ultimate responsible for the reinstitutionalization process,” the state “must ensure the execution of the approved law.”
To facilitate this process, Paredes called for the full reactivation of the Douro agricultural registry, the establishment of a multi-year financing process based on their new legal competencies, as outlined in the state budget, and the conclusion of the foreclosure process. According to him, this would end the “dilapidation and degradation of the heritage.”
This agreement involves transferring wine to settle the Casa do Douro’s debts to the State, with the remaining assets then retained by Casa do Douro.
The Ministry mentioned that it held meetings with Casa do Douro’s elected leadership twice: on March 26 with the Minister of Agriculture and Fisheries, and on April 29 with the Secretary of State for Agriculture.
“The Casa do Douro’s leadership committed to delivering an ‘activity plan’ for the association itself, outlining measures needed to generate additional revenue since the institution’s management is based on the principle of financial self-sufficiency,” it added.
The Ministry of Agriculture also highlighted that this requested activity plan has yet to be submitted by Casa do Douro’s leadership.
Under the new law governing Casa do Douro, its management should be directed by the principle of financial self-sufficiency, with revenues identified as “the value of dues (individual members of Casa do Douro are required to pay an annual fee, with the amount and payment method determined by the regional council), the value of contributions from corporate members, a share defined by government decree in the distribution of fees on wine products.”
Additionally mentioned are proceeds from managing the respective assets, income from financial applications or social participations, the result of commercial activities and service provision, subsidies awarded by public and private entities, legacies, donations, and sponsorships, government contributions within the scope of development contracts, rents or benefits from own assets, and other benefits that may be received under the law.
In March, it was revealed that the Ombudsman decided to request a constitutional review of the law that reinstated Casa do Douro as a public association with mandatory registration, following complaints from the Confederation of Portuguese Farmers (CAP) and the Port Wine Companies Association (AEVP).
[Updated at 18h10]
