A4-0218/98

Proposal for a Council Regulation amending Regulation (EEC) No 2075/92 on the common organization of the market in raw tobacco (COM(98)0019 - C4-0185/98 - 98/0027(CNS))

The proposal was approved with the following amendments:

(Amendment 1)

Recital 1a (new)

>Original text>

>Text following EP vote>

Whereas the European Parliament formulated its views in its resolution of 17 July 1997(1) on the Commission report to the Council on the common organization of the market (COM(96)0554 - C4-0057/97;

________

(1) OJ C 286, 22.9.1997, p. 237.

(Amendment 2)

Recital 2

>Original text>

Whereas the present market situation is one of mismatch of supply and demand, largely due to the poor quality of Community production; whereas this situation calls for a fundamental reform of the sector to improve its economic position; whereas such reform must entail a variation of aid in line with product quality, greater flexibility and simplicity in the setting of quotas, stricter control procedures and improved observance of public health and environmental protection requirements;

>Text following EP vote>

Whereas the present situation

of the market in raw tobacco, which is very competitive, calls for more effective matching of supply with demand; whereas this situation calls for a fundamental reform of the sector to improve its economic position; whereas such reform must entail a variation of aid in line with product quality, greater flexibility and simplicity in the setting of quotas, stricter control procedures and improved observance of public health and environmental protection requirements;

(Amendment 3)

Recital 2a (new)

>Original text>

>Text following EP vote>

Whereas tobacco is of vital economic and social importance; whereas in some regions tobacco growing is the rural population's sole source of work and income and employs in particular a large number of women who can thus provide an income for their households (135 000 producers, 400 000 seasonal jobs, 30 000 jobs in first processing, many other ancillary activities linked to tobacco growing);

(Amendment 5)

Recital 2b (new)

>Original text>

>Text following EP vote>

Whereas tobacco production is mainly concentrated in the less-favoured regions which lack economic alternatives that can ensure a minimum level of rural development or are capable of generating comparable levels of employment;

(Amendment 6)

Recital 2c (new)

>Original text>

>Text following EP vote>

Whereas, although tobacco production is in many regions the only form of gainful employment for people in rural areas, the possibility ought in principle to be created of abandoning tobacco production on a voluntary basis; whereas a programme of this nature for the abandonment of tobacco production should be conceived and funded in the context of the Structural Funds; whereas producers' groups must be linked into this programme;

(Amendment 7)

Recital 3

>Original text>

Whereas, in order to encourage improvement of the quality and value of Community production, and at the same time to provide income support to producers, the payment of part of the premium should be linked to the value of the tobacco produced; whereas the extent of this differentiation may vary by variety and tobacco-growing Member State; whereas, if it is to be effective, differentiation should operate within a certain range; whereas, given the importance of this change, a transitional period should be set; whereas this system should be established within the producer groups, while permitting a comparison of the market prices obtained by individual producers;

>Text following EP vote>

Whereas, in order to encourage improvement of the quality and value of Community production, and at the same time to

protect producers' jobs and incomes, the payment of part of the premium should be linked to the quality of the tobacco produced; whereas an independent interprofessional institute should be responsible for establishing tobacco quality on the basis of reference criteria such as organoleptic and combustion characteristics, and not solely on the basis of commercial prices, which are dependent on political and circumstantial factors; whereas the extent of this differentiation may vary by variety and tobacco-growing Member State; whereas, if it is to be effective, differentiation should operate within a certain range, so as to ensure that the level established does not bring about a sharp fall in producers' incomes obliging them to cease tobacco production; whereas, given the importance of this change, a transitional period should be set; whereas this system should be established within the producer groups, while permitting a comparison of the market prices obtained by individual producers;

(Amendment 8)

Recital 8

>Original text>

Whereas transfer of production quotas between producers should be permitted for improvement of the structure of production; whereas quota buy-back arrangements should be introduced to help producers who wish to leave the sector but find no purchaser for their quota;

>Text following EP vote>

Whereas transfer of production quotas between producers should be permitted for improvement of the structure of production

so that young farmers can have access to one of the only agricultural markets that is still open to many less favoured regions;

(Amendment 9)

Recital 8a (new)

>Original text>

>Text following EP vote>

Whereas, moreover, there are no instruments available for a reconversion programme for those wishing to abandon the sector; whereas a reconversion strategy takes no account of the economic situation of traditional tobacco growing regions nor of the saturation of alternative markets; whereas the mechanism of quota buy-back by the EU would lead to distortions of competition rules, thereby contravening the competition provisions of Article 85 of the EC Treaty;

(Amendment 36)

Recital 9

>Original text>

Whereas due account should be taken of the imperatives of public health and respect for the environment; whereas to this end the premium deduction financing the Community fund for tobacco research and information should be doubled and the specific aid used not only to help producer groups discharge their new management functions, but also to finance action aimed at enhancing respect for the environment;

>Text following EP vote>

Whereas due account should be taken of the imperatives of public health and respect for the environment;

whereas at the same time solutions must be found to the socio-economic problems of tobacco-producing areas; whereas to this end the premium deduction financing the Community fund for tobacco research and information should be increased considerably and the specific aid used not only to help producer groups discharge their new management functions but also to finance action aimed at enhancing respect for the environment; whereas research is required into the possibilities for tobacco growers and processors to switch to other profitable crops or other economic activities, including non-agricultural activities;

(Amendment 12)

Recital 9a (new)

>Original text>

>Text following EP vote>

Whereas, following the Commission report on 'Employment in Europe - 1997' (COM(97)0479), and specifically paragraph 2 thereof, the consequences of measures proposed on employment and employment levels in the various Member States of the European Union should be assessed very carefully;

(Amendment 15)

ARTICLE 1(2)

Article 4a(4) (Regulation (EEC) 2075/92)

>Original text>

4. The variable part shall be paid to producer groups for distribution to each member in proportion to the purchase price paid by the first processor for his crop.

>Text following EP vote>

4.

The variable part shall be paid to producer groups for distribution to each member in proportion to the purchase price paid by the first processor for his crop or in accordance with other criteria, on the basis of an objective assessment of the quality of the product produced, determined in accordance with the procedure laid down in Article 23.

(Amendment 16)

ARTICLE 1(3)

Article 6(5a) (new) (Regulation (EEC) 2075/92)

>Original text>

>Text following EP vote>

5a. An interprofessional institute shall hereby be created to establish objective quality criteria for classification, in cooperation with the Commission and at no expense for the EU budget.

(Amendment 41)

ARTICLE 1(3)

Article 7, 1st paragraph (Regulation (EEC) 2075/92)

>Original text>

Rules for the application of this Title shall be adopted in accordance with the procedure laid down in Article 23.

>Text following EP vote>

Rules for the application of this Title shall be adopted in accordance with the procedure laid down in Article

43(2) of the Treaty.

(Amendment 17)

ARTICLE 1(4)

Article 8, 2nd paragraph (Regulation (EEC) 2075/92)

>Original text>

Within that quantity the Council shall set for three consecutive harvests, and in accordance with the procedure laid down in Article 43(2) of the Treaty, individual guarantee thresholds for each variety group.

>Text following EP vote>

Within that quantity the Council shall set for

four consecutive harvests, and in accordance with the procedure laid down in Article 43(2) of the Treaty, individual guarantee thresholds for each variety group.

(Amendment 18)

ARTICLE 1(4)

Article 9(2) (Regulation (EEC) 2075/92)

>Original text>

2. The Council, acting in accordance with the procedure laid down in Article 43(2) of the Treaty, shall allocate for three consecutive harvests the quantity available for each variety group between producer Member States.

>Text following EP vote>

2.

The Council, acting in accordance with the procedure laid down in Article 43(2) of the Treaty, shall allocate for four consecutive harvests the quantity available for each variety group between producer Member States.

(Amendment 19)

ARTICLE 1(4)

Article 9(4), 2nd subparagraph (Regulation (EEC) 2075/92)

>Original text>

Subject to the third subparagraph a one-tonne reduction in the allocation for one variety group shall give rise to an increase of at most one tonne in the allocation for the other variety group.

>Text following EP vote>

Subject to the third subparagraph a one-tonne reduction in the allocation for one variety group shall give rise to an increase in the allocation for the other variety group,

the size of which shall be determined by applying a technical conversion coefficient so that the effect of transferring the allocation is neutral in financial terms.

(Amendment 20)

ARTICLE 1(4)

Article 9(4), 4th subparagraph a (new) (Regulation (EEC) 2075/92)

>Original text>

>Text following EP vote>

The competent authority in the Member State, with due respect for the guarantee threshold set for the particular variety group, may make compensatory payments even on completion of the harvest, by distributing supplementary quota certificates in respect of the non-utilized part to producers who already have quota certificates for this particular variety group and who, after delivering all the quantities agreed by contract, still have surplus quantities.

(Amendment 21)

ARTICLE 1(4)

Article 9(5) (Regulation (EEC) 2075/92)

>Original text>

5. National quota reserves shall be set up. Their operating rules shall be adopted in accordance with the procedure laid down in Article 23.

>Text following EP vote>

5.

National quota reserves shall be set up to manage a minimum of 4% of the Member State's quotas, at least 50% of which shall be reallocated to new or young farmers. The operating rules of the national quota reserves shall be adopted in accordance with the procedure laid down in Article 23.

(Amendment 22)

ARTICLE 1(4)

Article 10(2) (Regulation (EEC) 2075/92)

>Original text>

2. Notwithstanding paragraph 1, a producer may deliver excess production of up to 10% of his quota for each variety group, this surplus being eligible for the premium granted on the following harvest, provided that he reduces his production for that harvest accordingly so that the combined quota for the two harvests is observed.

>Text following EP vote>

2.

Notwithstanding paragraph 1, a producer may deliver excess production of up to 10% of his quota for each variety group, this surplus being eligible for the premium granted on the following harvest, provided that he reduces his production for that harvest accordingly so that the combined quota for the two harvests is observed. The same exception shall also apply where a producer produces less than 10% of his quota during a production period. Such producers may increase their production accordingly, and receive the corresponding aid, so that the combined quota for the two harvests is observed.

(Amendment 45)

ARTICLE 1(4)

Article 11 (Regulation (EEC) 2075/92)

>Original text>

Rules for the application of this Title shall be adopted in accordance with the procedure laid down in Article 23.

>Text following EP vote>

Rules for the application of this Title shall be adopted in accordance with the procedure laid down in Article

43(2) of the Treaty.

(Amendments 62 and 46)

ARTICLE 1(5)

Article 12(1) (Regulation (EEC) 2075/92)

>Original text>

1. The specific aid referred to in Article 4a shall be paid to producer groups for the purposes of improving respect for the environment, boosting production quality, strengthening management and ensuring compliance with Community rules within the group.

>Text following EP vote>

1.

The specific aid referred to in Article 4a shall be paid to producer groups for the purposes of improving respect for the environment, boosting production quality, strengthening management, ensuring compliance with Community rules within the group and encouraging diversification into alternative crops. 30% of the specific aid shall be used for measures to improve respect for the environment.

(Amendment 47)

ARTICLE 1(5)

Article 12(2), introduction (Regulation (EEC) 2075/92)

>Original text>

2. The Commission shall determine rules for the application of this Article in accordance with the procedure laid down in Article 23. These rules shall cover:

>Text following EP vote>

2.

The Commission shall determine rules for the application of this Article in accordance with the procedure laid down in Article 43(2) of the Treaty. These rules shall cover:

(Amendment 23)

ARTICLE 1(5)

Article 13(1) (Regulation (EEC) 2075/92)

>Original text>

1. A Community Tobacco Fund financed by a deduction of 2% of the premium shall be set up.

>Text following EP vote>

1.

A Community Tobacco Fund financed by a deduction of 1% of the premium shall be set up; this deduction may be increased to 2% of the premium following an annual assessment of the operation and utilization of the fund.

(Amendment 24)

ARTICLE 1 (5)

Article 13(2), indents (Regulation (EEC) 2075/92)

>Original text>

- combating tobacco smoking, in particular informing the public of the dangers of tobacco consumption,

- research to develop new varieties and cultivation methods that result in less harm to human health and that are more environment- friendly.

>Text following EP vote>

-

research to create and to develop new varieties and cultivation methods that result in less harm to human health and that are more environment-friendly,

- informing the public of the dangers of tobacco consumption,

- research into other uses for tobacco, in particular in the food (proteins) or medical spheres.

(Amendment 25)

ARTICLE 1(5)

Article 13(2a) (new) (Regulation (EEC) 2075/92)

>Original text>

>Text following EP vote>

2a. The Commission shall each year submit to the European Parliament and the Council a report on the activities financed by the Community Tobacco Fund in order to decide whether to increase the necessary resources.

(Amendment 26)

ARTICLE 1(5)

Article 13(2b) (new) (Regulation (EEC) 2075/92)

>Original text>

>Text following EP vote>

2b. The Commission shall submit a proposal before 31 December 1998 for a programme for the voluntary abandonment of tobacco production. This programme is to be funded in the context of the Structural Funds. The interests of the relevant producers' groups must be taken into account in this connection.

(Amendment 82)

ARTICLE 1(5)

Article 13(3) (Regulation (EEC) 2075/92)

>Original text>

3. Rules for the application of this Article shall be adopted in accordance with the procedure laid down in Article 23.

>Text following EP vote>

3.

Rules for the application of this Article shall be adopted in accordance with the procedure laid down in Article 43(2) of the Treaty.

(Amendment 83)

ARTICLE 1(5)

Article 14(1) (Regulation (EEC) 2075/92)

>Original text>

1. In order to facilitate the voluntary departure from the sector by individual producers, a quota buy-back programme with corresponding reduction of the guarantee thresholds referred to in Article 8 shall be set up in accordance with the procedure laid down in Article 23.

>Text following EP vote>

1.

In order to facilitate the voluntary departure from the sector or the reduction of production quota by individual producers, a quota buy-back programme with corresponding reduction of the guarantee thresholds referred to in Article 8 shall be set up in accordance with the procedure laid down in Articles 43(2) and 129 of the Treaty.

(Amendment 63)

ARTICLE 1(5)

Article 14(2) (Regulation (EEC) 2075/92)

>Original text>

2. Rural development programmes for the conversion of tobacco-growing regions in difficulty to other activities may be implemented under Community structural policies.

>Text following EP vote>

2.

Rural development programmes for the conversion of tobacco-growing regions in difficulty to other activities should be implemented under Community structural policies.

Legislative resolution embodying Parliament's opinion on the proposal for a Council Regulation amending Regulation (EEC) No 2075/92 on the common organization of the market in raw tobacco (COM(98)0019 - C4-0185/98 - 98/0027(CNS))(Consultation procedure)

The European Parliament,

- having regard to the Commission proposal to the Council COM(98)0019 - 98/0027(CNS) ((OJ C 108, 7.4.1998, p. 87.)),

- having been consulted by the Council pursuant to Article 43 of the EC Treaty (C4-0185/98),

- having regard to Rule 58 of its Rules of Procedure,

- having regard to the report of the Committee on Agriculture and Rural Development and the opinions of the Committee on Budgets, the Committee on the Environment, Public Health and Consumer Protection and the Committee on Budgetary Control (A4-0218/98),

1. Approves the Commission proposal, subject to Parliament's amendments;

2. Calls on the Council to notify Parliament should it intend to depart from the text approved by Parliament;

3. Asks to be consulted again should the Council intend to make substantial modifications to the Commission proposal;

4. Instructs its President to forward this opinion to the Council and Commission.