Proposal for a

COUNCIL REGULATION (EC) No . . .

of . . .

amending Regulation (EEC) No 1308/70 on the common organization of the market in flax and hemp

(96/C 125/11)

96/0063(CNS)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 43 thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament,

Having regard to the opinion of the Economic and Social Committee,

Whereas the final subparagraph of Article 4 (2) of Regulation (EEC) No 1308/70 (1), as last amended by Regulation (EC) No 3290/94 (2), lays down that the aid for flax is to be differentiated by the application of coefficients of reduction and increase established on the basis of the average seed yield recorded in the homogeneous production areas for the different harvesting methods used; whereas, in view of new cultivation and harvesting methods now in use, particularly in certain regions where flax has previously either not been grown or only grown in small quantities, the current coeffiecients should be abolished and a flat-rate reduction provided for where the harvesting method used does not involve pulling the whole plant; whereas that objective can be attained by a reduction in the aid where harvesting methods other than the pulling of the plant are used;

Whereas, in recent years, there have been sudden, large fluctuations in the market price of fibre and, consequently, of Community areas sown to flax; whereas, in order to promote market stability and to prevent too great an increase in budget expenditure, a maximum guaranteed area should be introduced with a reduction in the level of aid in proportion to any overrun of that area; whereas, given the need for the farmers concerned to adjust to the new system, it should be introduced from the 1997/98 marketing year;

Whereas, in the light of experience, further amendments to the system might appear necessary; whereas provision should therefore be made for the Council to assess the system on the basis of a Commission report to be presented before the beginning of the 1999/2000 marketing year,

HAS ADOPTED THIS REGULATION:

Article 1

Regulation (EEC) No 1308/70 is hereby amended as follows:

1. The third subparagraph of Article 4 (2) is replaced by the following:

'The amount of aid for flax harvested other than by pulling the stems, reduced, where appropriate, by the amount referred to in Article 2 (3) and reduced, where appropriate, in accordance with paragraph 2a, shall be reduced by a flat-rate amount established by taking account of the differences in production costs between that method of harvest and harvest by pulling the stems, and reduced by the difference in value of the fibres produced. This flat-rate amount shall be set before the beginning of the marketing year in accordance with the procedure laid down in Article 12.`

2. The following paragraph is added to Article 4:

'2a The aid for flax referred to in paragraph 1 shall be granted for a maximum guaranteed area. That area shall be 81 500 hectares for each marketing year. Where, in a given marketing year, the areas actually sown and harvested exceed the maximum guaranteed area, the aid for that marketing year, where appropriate reduced by the amount referred to in Article 2 (3), shall be reduced in each Member State by the percentage of the overrun. The reduction to be applied shall be set in accordance with the procedure laid down in Article 12.`

3. Article 16 is replaced by the following:

'Article 16

Should transitional measures be necessary to facilitate implementation of the amendments to the system to be introduced from the 1997/98 marketing year, such measures shall be adopted in accordance with the procedure laid down in Article 12. They shall apply until the end of the 1997/98 marketing year at the latest.`

4. The following Article is inserted:

'Article 16a

Before the start of the 1999/2000 marketing year at the latest, the Commission shall send the Council a report on the operation of the system of aid for flax and hemp. Should the report show the need for adjustments, the Council, acting by a qualified majority on a proposal from the Commission and after consulting the European Parliament, shall decide on such adjustments to the system in the light of experience of the operation of that system and of the system of aid for arable crops and cotton.`

Article 2

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

It shall apply from 1 August 1997 with the exception of Article 1 (3), which shall apply from the entry into force of this Regulation.

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

Done at . . .

For the Council

. . .

(1) OJ No L 146, 4. 7. 1970, p. 1.

(2) OJ No L 349, 31. 12. 1994, p. 105.