No C 56/34 Official  Journal  of the European  Communities 7. 3. 77 
Opinion  on the proposal  for a Council  Regulation  temporarily  suspending  certain  national 
and Community  aids  in the  milk  and  milk  products  sector 
The text  referred  to the  Committee  has  been  published  in Official  Journal  of the 
European  Communities  No  C 252  of 26 October  1976,  page  3. 
A. LEGAL  BASIS  FOR  THE  OPINION 
On 19 October  1976,  the  Council  referred  the  abovementioned  proposal  to  the 
Economic  and  Social  Committee  in accordance  with  Article  198  of the  Treaty 
establishing  the European  Economic  Community. 
B. OPINION  OF THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  prepared  its opinion  on the  above  matter  at its 
143rd  plenary  session,  held  in Brussels  on 24 and  25 November  1976. 
The full  text  of the opinion  is as follows: 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to  che  Treaty  establishing  the 
European  Economic  Community,  and  in particular 
Article  198  thereof, 
Having  regard  to the request  for an opinion  made  by 
the Council  of  the  European  Communities  on 
19 October  1976, 
Having  regard  to the  decision  taken  by its Bureau 
on 26  October  1976,  instructing  the  Section  for 
Agriculture  to draw  up an opinion  on the matter, 
Having  regard  to its earlier  work  on milk  and  milk 
products  and  in  particular  its  opinion  of 
30 September  1976  on the  action  programme  (1977 
to 1980)  for  the  progressive  achievement  of balance 
in the milk  market  (^), 
Having  regard  to the  oral  report  made  by  the 
rapporteur,  Mr Bourel, 
Having  regard  to the  opinion  issued  by the  Section 
for Agriculture  at its meeting  on 18 November  1976, 
Having  regard  to the discussions  at its 143rd  plenary 
session  held  on 24 and  25 November  1976  (meeting 
of 24 November  1976), 
(1) OJ No C 285,  2. 12. 1976. HAS  ADOPTED  THE  FOLLOWING  OPINION 
bv 69 votes  to 5, with  14 abstentions: 
1. What  the  Commission  proposes  is an absolute 
measure  that  is to be applied  for a limited  period  of 
time.  It fails  to differentiate  in any  way  between 
structural  problems  and  market  problems.  In its 
opinion  of 30 September  1976,  the Committee  made 
a number  of comments  on the  issue  under  consider-
ation;  these  comments  have  not,  however,  been  taken 
into account  in the proposal. 
2. The  Committee  considers  that  the  question  of 
national  and  Community  aids  in the  milk  sector 
should  have  been  dealt  with  in a different  way.  The 
Committee  attaches  major  importance  to greater 
selectivity  and,  with  this  in view,  would  urge  that 
the following  suggestions  be taken  into  consideration: 
(a) rather  than  discontinuing  Community  and 
national  aids,  selective  aids  should  be given  under 
Community  supervision.  The  system  proposed  by 
the Commission  leaves  Member  States  free  to 
pursue  purely  national  policies  of direct  or 
indirect  support,  for  example  through  quasi-tax 
measures,  without  leaving  any  scope  for  Com-
munity  coordination; 
7. 3.77 Official  Journal  of the European  Communities No C 56/35 
(ib) instead  of discontinuing  aids  as a matter  of 
principle  for  a period  of three  years,  selective 
measures  should  be introduced  which  would  be 
already  a step  towards  a long-term  investment 
policy; 
(c) there  should  be  no  let-up  in the  drive  to 
modernize  production  and  processing,  improve 
productivity  in the  long  term  and  adapt  to 
additional  markets.  At  all  events,  investment 
projects  covered  by Regulation  17/64/EEC  should 
continue  to receive  EAGGF  assistance; 
(d) any  aid  which  would  lead  to the  setting-up  of 
dairy  herds  or the creation  of industrial  processing 
capacity  which  might  encourage  production 
should  be abolished; 
(e) the sole  criterion  for the continued  granting  of the 
aids referred  to in Article  8 of Directive  72/159/ 
EEC  should  be a minimum  degree  of self-suf-
ficiency  in fodder  of the  order  of 80%.  Conse-
quently,  all reference  to the  number  of dairy cows  per  hectare  of the  area  farmed  should  be 
deleted. 
3. Finally,  the  Committee  has  been  unable  to 
discover  in the  Commission's  proposal  any  trace  of 
the suggestions  put  forward  in its  opinion  of 
30 September  1976.  It is particularly  noteworthy  that 
the Committee's  concern  about  the  need  to 
encourage  the  production  of high-quality  products 
finds  no response  in the Commission's  proposal. 
4. The  Committee  is thus  unable  to endorse  the 
proposal  unless  the  fundamental  points  made  above 
are taken  into  consideration. 
Done  at Brussels,  24 November  1976. 
The Chairman 
of the Economic  and  Social  Committee 
Basil  de FERRANTI 
ANNEX 
to the opinion  of the Economic  and  Social  Committee 
Rejected  Amendment 
The following  amendment,  tabled  in accordance  with  the  Rules  of Procedure,  was  rejected 
during  the discussion: 
Delete  the following  point: 
'(b) Instead  of discontinuing  the  aids  altogether  for three  years,  selective  measures  should  be 
introduced  which  would  be already  a step  towards  a long-term  investment  policy;'. 
Voting 
For : 22, against:  64, abstentions  : 2. 
Opinion  on the  proposal  for  a Council  Decision  reviewing  the  energy  research  and 
development  programme  adopted  by Council  Decision  75/510/EEC  of 22 August  1975 
The text  referred  to the  Committee  has  been  published  in Official  Journal  of the 
European  Communities  No  C 241  of 14 October  1976,  page  5. 
A. LEGAL  BASIS  FOR  THE  OPINION 
On 11 August  1976,  the Council  referred  the abovementioned  proposal  to the Economic 
and Social  Committee  in accordance  with  Article  198  of the  Treaty  establishing  the 
European  Economic  Community.