# EUR-Lex - 52006AP0563 - EN

Important legal notice

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# 52006AP0563

**European Parliament legislative resolution on the proposal for a Council regulation amending Regulations (EEC) No 404/93, (EC) No 1782/2003 and (EC) No 247/2006 as regards the banana sector (COM(2006)0489 - C6-0339/2006 - 2006/0173(CNS)) **

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Official Journal 317 E , 23/12/2006 P. 0459 - 0466 *

20061223

P6_TA(2006)0563

Banana sector *

European Parliament legislative resolution on the proposal for a Council regulation amending Regulations (EEC) No 404/93, (EC) No 1782/2003 and (EC) No 247/2006 as regards the banana sector (COM(2006)0489 — C6-0339/2006 — 2006/0173(CNS))

(Consultation procedure)

The European Parliament,

- having regard to the Commission proposal to the Council (COM(2006)0489) [1],

- having regard to Article 37 of the EC Treaty, pursuant to which the Council consulted Parliament (C6-0339/2006),

- having regard to Rule 51 of its Rules of Procedure,

- having regûard to the report of the Committee on Agriculture and Rural Development and the opinions of the Committee on Budgets and the Committee on Regional Development (A6-0422/2006);

1. Approves the Commission proposal as amended;

2. Considers that the indicative financial reference amount given in the Commission proposal must be compatible with the ceiling of heading 2 of the new multi-annual financial framework (MFF) and observes that the annual amount will be decided within the annual budgetary procedure in accordance with point 38 of the Interinstitutional Agreement between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management of 17 May 2006 [2];

3. Calls on the Commission to alter its proposal accordingly, pursuant to Article 250(2) of the EC Treaty;

4. Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament;

5. Asks the Council to consult Parliament again if it intends to amend the Commission proposal substantially;

6. Instructs its President to forward its position to the Council and the Commission.

Amendment 1

Recital 1

(1) Currently the regime for the banana sector is set out in Council Regulation (EEC) No 404/93 of 13 February 1993 on the common organisation of the market in bananas. In particular the aid scheme for banana producers is based on principles which for other common market organisations have been substantially reformed. In order to better ensure a fair standard of living of the agricultural community in regions where bananas are produced, to better direct resources towards market-orientation of producers, to stabilise expenditure, to ensure the respect of the international obligations of the Community, to take adequately into account the particularities of the producing regions, to simplify the management of the regime and align it on the principles of the reformed common market organisations, it is necessary to amend this regime.

(1) Currently the regime for the banana sector is set out in Council Regulation (EEC) No 404/93 of 13 February 1993 on the common organisation of the market in bananas. In particular the aid scheme for banana producers is based on principles which for other common market organisations have been substantially reformed. In order to better ensure a fair standard of living of the agricultural community in regions where bananas are produced, to better direct resources towards the specific development processes in these regions, to stabilise expenditure, to ensure the respect of the international obligations of the Community, to take adequately into account the particularities of the producing regions, to simplify the management of the regime and align it on the principles of the reformed common market organisations, it is necessary to amend this regime.

Amendment 2

Recital 2 a (new)

(2a) Since the introduction of the common organisation of the market (COM) in bananas, in response to competition from third-country banana producers and with a view to ensuring proper use of Community funds, the whole industry has made major modernisation efforts covering all stages from production to marketing, significantly raising productivity and improving product quality while reducing the environmental impact of its activities. The COM has also encouraged the concentration of Community supply, which has contributed to the sector's consolidation in producer regions and facilitated the marketing of European bananas.

Amendment 3

Recital 3

(3) Bananas are one of the main agricultural crops of certain outermost regions of the Union, notably the French overseas departments of Guadeloupe and Martinique, the Azores, Madeira and the Canary Islands. Production of bananas is handicapped in particular by the remoteness, insularity, small size, and difficult topography of these regions. Local banana production is an essential element of the environmental, social and economic balance of the rural areas in those regions.

(3) Bananas are one of the main agricultural crops of certain outermost regions of the Union, notably the French overseas departments of Guadeloupe and Martinique, the Azores, Madeira and the Canary Islands. Production of bananas is handicapped in particular by the remoteness, insularity, small size, and difficult topography of these regions. Local banana production is an essential element of the environmental, social and economic balance of the rural areas in those regions which, furthermore, have no alternative that would enable them to diversify into other economically viable crops.

Amendment 4

Recital 3a (new)

(3a) Account should be taken of the socio-economic importance of the banana sector to the outermost regions and the contribution which it makes to achieving social and economic cohesion on account of the income and employment which it generates, the economic activities to which it gives rise (both upstream and downstream), and the effect which it has of maintaining an ecological and landscape balance which encourages the development of tourism.

Amendment 5

Recital 5

(5) Title III of Council Regulation (EC) No 247/2006 of 30 January 2006 laying down specific measures for agriculture in the outermost regions of the Union provides for the establishment of Community support programmes for the outermost regions containing specific measures to assist local lines of agricultural production. This Regulation provides for a review not later than 31 December 2009. If there are substantial changes to the economic conditions affecting livelihoods in the outermost regions, the Commission shall submit the report sooner. This instrument seems best adapted to support banana production in each of the regions concerned by providing for flexibility and decentralisation of mechanisms to support banana production. The possibility of including banana support in those support programmes should reinforce the coherence of the strategies for support of agricultural production in these regions.

(5) Title III of Council Regulation (EC) No 247/2006 of 30 January 2006 laying down specific measures for agriculture in the outermost regions of the Union provides for the establishment of Community support programmes for the outermost regions containing specific measures to assist local lines of agricultural production. This Regulation provides for a review not later than 31 December 2009. However, in order to take due account of the specific circumstances of banana producers, in the event of a significant deterioration in the economic situation of producers resulting in particular from alterations to the external regime, the Commission should submit a specific report to the European Parliament and the Council prior to that deadline. This instrument seems best adapted to support banana production in each of the regions concerned by providing for flexibility and decentralisation of mechanisms to support banana production. The possibility of including banana support in those support programmes should reinforce the coherence of the strategies for support of agricultural production in these regions.

Amendment 6

Recital 5 a (new)

(5a) Provision should be made for the payment of one of more specific advances to banana producers in outermost regions.

Amendment 7

Recital 7

(7) As regards production of bananas in the Community other than in the outermost regions, it seems no longer necessary to provide for a specific aid scheme for bananas, given the small proportion of the total Community production concerned.

(7) As regards production of bananas in the Community other than in the outermost regions, it seems appropriate to give Member States the opportunity to opt for the system of partial decoupling of aid for bananas, despite the small proportion of the total Community production concerned.

Amendment 8

Recital 8

(8) Council Regulation (EC) No 1782/2003 of 29 September 2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers and amending certain Regulations provides for a system of decoupled income support for farms (hereinafter referred to as "the Single Payment Scheme"). This system was intended to allow for the shift from production support to producer support.

Amendment 9

Recital 8 a (new)

(8a) Information and infrastructure measures in the context of rural development must play a prime role in the shift to producer support, whereby one aim should be to adapt banana production and marketing to reflect various quality standards, such as fair-trade, organic farming, and local varieties standards or registered geographical guarantees of origin. Bananas can also be marketed as a special local product within the framework of existing tourism in these areas, thereby creating a link between consumers and local bananas as a preferred, identifiable product.

Amendment 10

Recital 8 b (new)

(8b) In order to meet the objectives that lay at the heart of the reform of the common agricultural policy, the support for cotton, olive oil, raw tobacco, hops and bananas should be largely de-coupled and integrated into the Single Payment Scheme.

Amendment 11

Recital 8 c (new)

(8c) Complete integration into the single payment scheme of the current support scheme in the banana sector would bring a significant risk of production disruption to the banana producing regions of the Community. A part of the support should therefore continue to be linked to the cultivation of bananas through a crop specific payment per eligible hectare. The amount of support should be calculated in such a way so as to ensure economic conditions which, in regions which lend themselves to that crop, enable activity in the banana sector to continue and prevent bananas from being driven out by other crops. In order to achieve that goal, it is justified that the total available aid per hectare per Member State is set at 40 % of the national share of the aid that went indirectly to the producers.

Amendment 12

Recital 8 d (new)

(8d) The remaining 60 % of the national share of the aid that went indirectly to the producers should be available to the Single Payment Scheme.

Amendment 13

Recital 9

(9) For sake of consistency it is appropriate abolish the existing compensatory aid scheme for bananas and to include it into the Single Payment Scheme. To this end it is necessary to include the compensatory aid for bananas in the list of direct payments in relation to the single payment scheme referred to in Article 33 of Regulation (EC) No 1782/2003. Provision should also be made for the establishment by Member States of reference amounts and eligible hectares under the Single Payment Scheme on the basis of a representative period appropriate to the banana market and of appropriate objective and non-discriminatory criteria. Areas planted with bananas should not be excluded due to their being treated as permanent crops. National ceilings should be amended appropriately. Provision should also be made for the Commission to adopt detailed rules and any necessary transitional measures.

deleted

Amendment 14

Recital 10

(10) Title II of Regulation (EEC) No 404/93 provides for producers' organisations and concentration mechanisms. As regards producers' organisations, the existing regime had as objectives to form such organisations in order that as many producers as possible be members of such organisations and limited the payment of the compensatory aid to producers members of recognized producers' organisations.

(10) Title II of Regulation (EEC) No 404/93 provides for producers' organisations and concentration mechanisms. As regards producers' organisations, the existing regime had as objectives to form such organisations in order that as many producers as possible be members of such organisations and that marketing in the banana sector be supported, while limiting the payment of the compensatory aid to producers members of recognized producers' organisations.

Amendment 15

Recital 11

(11) The regime has succeeded in its first objective since the vast majority of Community producers are now members of producers' organisations. The second objective is obsolete since the compensatory aid scheme is to be abolished. It is therefore no longer necessary to maintain rules at Community level on producer organisations, thus leaving Member States free to adopt such rules, if necessary, targeted at the specific situations in their territories.

(11) The regime has succeeded in its first objective since the vast majority of Community producers are now members of producers' organisations. It is therefore necessary to maintain rules at Community level on producer organisations. In order to prevent the break-up of the banana sector in producer regions, it is proposed that a framework of Community rules be maintained, and Member States are urged to maintain the requirement that produce be marketed through these producer organisations as an essential condition for receiving aid.

Amendment 16

Article 1, point 1

(Regulation (EEC) No 404/93)

(1) Titles II and III, Articles 16 to 20, paragraph 2 of Article 21, Article 25 and Articles 30 to 32 are deleted;

(1) Articles 6 and 7 of Title II, Title III, Articles 16 to 20, paragraph 2 of Article 21, Article 25 and Articles 30 to 32 are deleted;

Amendment 17

Article 2, point 1 (new)

Article 1, indent 3 (Regulation (EC) No 1782/2003)

(1) In Article 1, indent 4 is replaced by the following:

- support schemes for farmers producing durum wheat, protein crops, rice, nuts, energy crops, starch potatoes, milk, seeds, arable crops, sheep meat and goat meat, beef and veal and grain legumes, and for farmers maintaining olive groves and banana plantations.

Amendment 18

Article 2, point 1

Article 33, paragraph 1, point a (Regulation (EC) No 1782/2003)

(1) In Article 33(1), point (a) is replaced by the following:

(a) they have been granted a payment in the reference period referred to in Article 38 under at least one of the support schemes referred to in Annex VI or, in the case of olive oil, in the marketing years referred to in the second subparagraph of Article 37(1), or, in the case of sugar beet, cane and chicory, if they have benefited from market support in the representative period referred to in point K of Annex VII, or, in the case of bananas, if they have benefited from compensation for loss of income in the representative period referred to in point L of Annex VII;

Amendment 19

Article 2, point 6 a (new)

Article 64, paragraph 2, subparagraphs 1 and 2 (Regulation (EC) No 1782/2003)

(6a) In Article 64(2), subparagraphs 1 and 2 are replaced by the following:

2. Depending on the choice made by each Member State, the Commission shall, in accordance with the procedure laid down in Article 144(2), set a ceiling for each of the direct payments referred to respectively in Articles 66, 67, 68, 68a, 68b and 69.

This ceiling shall be equal to the component of each type of direct payment in the national ceilings referred to in Article 41, multiplied by the reduction percentages applied by the Member States in accordance with Articles 66, 67, 68, 68a, 68b and 69.

Amendment 20

Article 2, point 6 b (new)

Article 68 b (new) (Regulation (EC) No 1782/2003)

(6b) The following Article 68b is inserted:

Article 68b

Banana Payments

In the case of banana payments, 40 % of the aid shall remain coupled to production, while the remaining 60 % of the national share of the aid shall be available for the Single Payment Scheme.

Amendment 21

Article 2, point 7

Article 145 d c) (Regulation (EC) No 1782/2003)

7) in Article 145, the following point is inserted after point (d)b):

(d)c) detailed rules relating to the inclusion of banana support into the single payment scheme.

Amendment 22

Article 3, point -1 (new)

Article 18 a (new) (Regulation (EC) No 247/2006)

(-1) the following Article 18a is inserted:

Article 18a

Bananas

Receipt of aid for producers in the banana sector is to be conditional on affiliation to a recognised organisation in accordance with Title II of Regulation (EEC) No 404/93. Such aid may also be granted to individual producers whose particular circumstances, especially geographical circumstances, do not enable them to join a producers' organisation.

Amendment 23

Article 3, point 2 a (new)

Article 28, paragraph 3 a (new) (Regulation (EC) No 247/2006)

(2a) In Article 28, the following paragraph 3a is added:

3a. In the event of a deterioration in the economic conditions affecting the livelihoods of banana producers, following in particular a change in the external regime, the Commission shall submit a specific report to the European Parliament and the Council by 31 December 2009, accompanied, where necessary, by appropriate proposals.

Amendment 27

Article 3, point 3

Article 30 (Regulation (EC) No 247/2006)

(3) In accordance with the same procedure, the Commission may also adopt measures to facilitate the transition from the arrangements provided for in Council Regulation (EEC) No 404/93 to those established by this Regulation.

(3) In accordance with the same procedure, the Commission may also adopt measures to facilitate the transition from the arrangements provided for in Council Regulation (EEC) No 404/93 to those established by this Regulation. Provision shall be made in particular for a specific advance scheme for banana producers from January to October every year.

Amendment 28

Article 4 a (new)

Article 4a

Assessment

Three years after the entry into force of this Regulation the Commission shall submit an assessment report to the European Parliament and the Council on the impact that the Regulation has had on the living standards of Community farmers, on Community producers' incomes, and on economic and social cohesion, and shall propose practical initiatives if the original objectives have not been attained.

Amendment 25

Annex, point 1

Annex I (Regulation (EC) No 1782/2003)

(1) in Annex I the row concerning bananas is deleted;

Amendment 26

Annex, point 2

Annex VI (Regulation (EC) No 1782/2003)

(2) the following row is added to Annex VI:

[1] Not yet published in OJ.

[2] OJ C 139, 14.6.2006, p. 1.

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