Proposal for a COUNCIL REGULATION (EC) No . . .

of . . .

fixing the derived intervention prices for white sugar, the intervention price for raw sugar, the minimum prices for A and B beet and the amount of compensation for storage costs for the 1998/99 marketing year (98/C 87/05)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community,

Having regard to Council Regulation (EEC) No 1785/81 of 30 June 1981 on the common organisation of the markets in the sugar sector (1), as last amended by Regulation (EC) No 1599/96 (2), and in particular Articles 3 (5), 5 (5) and 8 (4) thereof,

Having regard to the proposal from the Commission,

Whereas Council Regulation (EC) No . . . of . . . fixing certain sugar prices and the standard quality of beet for the 1998/99 marketing year (3), fixes the intervention price for white sugar at ECU 63,19/100 kg for non-deficit areas;

Whereas Article 3 (1) of Regulation (EEC) No 1785/81 provides that derived intervention prices for white sugar are to be fixed for each deficit area; whereas, when these prices are fixed, account should be taken of the regional variations which, given a normal harvest and free movement of sugar, might be expected to occur in the price of sugar under natural conditions of price formation on the market;

Whereas a short supply situation is to be foreseen in the areas of production in Ireland, the United Kingdom, Spain, Portugal and Finland;

Whereas Article 3 (5) of Regulation (EEC) No 1785/81 provides that an intervention price for raw sugar is to be fixed; whereas that price should be determined using the intervention price for white sugar as a basis;

Whereas Regulation (EC) No . . . fixes the basic price for beet at ECU 47,67/t; whereas Article 5 (2) of Regulation (EEC) No 1785/81 provides that the minimum price to be fixed for A beet is to be 98 % of the basic price for beet and the minimum price to be fixed for B beet is in principle to be 68 % of the said basic price notwithstanding Article 28 (5) of that Regulation;

Whereas Article 5 of Council Regulation (EEC) No 1358/77 of 20 June 1977 laying down general rules for offsetting storage costs for sugar and repealing Regulation (EEC) No 750/68 (4), as last amended by Regulation (EEC) No 3042/78 (5), provides that the repayment in the context of the compensation for storage costs is to be fixed per month and per unit of weight, taking account of financing costs, insurance and specific storage costs; whereas, for financing costs, account should be taken of a 4,75 % interest rate,

HAS ADOPTED THIS REGULATION:

Article 1

For the deficit areas of the Community, the derived intervention price for white sugar shall be:

(a) ECU 64,65/100 kg for all the areas in the United Kingdom;

(b) ECU 64,65/100 kg for all the areas in Ireland;

(c) ECU 64,65/100 kg for all the areas in Portugal;

(d) ECU 64,65/100 kg for all the areas in Finland;

(e) ECU 64,88/100 kg for all the areas in Spain.

Article 2

The intervention price for raw sugar shall be ECU 52,37/100 kg.

Article 3

1. The minimum price for A beet applicable in the Community shall be ECU 46,72/t.

2. Except where Article 28 (5) of Regulation (EEC) No 1785/81 is applied, the minimum price for B beet applicable in the Community shall be ECU 32,42/t.

Article 4

The reimbursement referred to in Article 8 of Regulation (EEC) No 1785/81 shall be ECU 0,38/100 kg white sugar per month.

Article 5

This Regulation shall enter into force on the third day following its publication in the Official Journal of the European Communities.

It shall apply for the 1998/99 marketing year.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at . . .

For the Council

. . .

(1) OJ L 177, 1.7.1981, p. 4.

(2) OJ L 206, 16.8.1996, p. 43.

(3) See page 5 of this Official Journal.

(4) OJ L 156, 25.6.1977, p. 4.

(5) OJ L 361, 23.12.1978, p. 8.