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

of . . .

fixing the aid for fibre flax and hemp and the amount withheld to finance measures to promote the use of flax fibre for the 1997/98 marketing year (97/C 101/06)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community,

Having regard to Council Regulation (EEC) No 1308/70 of 29 June 1970 on the common organization of the market in flax and hemp (1), as last amended by Regulation (EEC) No 3290/94 (2), and in particular Articles 2 (3) and 4 (3) 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 Article 4 of Regulation (EEC) No 1308/70 provides that the amounts of aid for flax grown mainly for fibre and for hemp grown in the Community are to be fixed each year;

Whereas Article 4 (2) of the said Regulation provides that the amount is to be so fixed per hectare of area sown and harvested so as to ensure an even balance between the volume of production required in the Community and the amount that can be marketed; whereas it is to be fixed taking into account the price for flax and hemp fibres and seed on the world market;

Whereas, during the last few years, there have been major fluctuations in the price of flax fibre and the areas planted to flax in the Community have increased considerably; whereas, given the proposed reduction in the proportion of the aid withheld to finance Community measures to promote the use of flax fibre and in order to avoid encouraging an increase in the area sown to flax, the aid should be reduced accordingly;

Whereas there is an upward trend in the area planted to hemp; whereas, in order to alleviate the impact on budget expenditure, the amount of aid should be adjusted accordingly;

Whereas Article 2 (3) of Regulation (EEC) No 1308/70 provides that the portion of aid for financing Community measures to encourage the use of flax fibre is to be fixed at the time when the aid is fixed for the marketing year in question in accordance with the criteria referred to in the said paragraph; whereas it is to be fixed in the light of trends on the market in flax, the amount of the aid for flax and the cost of the measures to be introduced; whereas account should also be taken of the financing already provided for;

Whereas application of the abovementioned criteria entails fixing the amount of aid and the portion of the aid to be used for financing measures to promote the use of flax fibre at the levels set out below,

HAS ADOPTED THIS REGULATION:

Article 1

For the 1997/98 marketing year, the aid provided for in Article 4 of Regulation (EEC) No 1308/70 shall be:

(a) as regards flax: ECU 815,86/ha;

(b) as regards hemp: ECU 716,63/ha.

Article 2

For the 1997/98 marketing year, the amount of the aid for flax to be used to finance the measures to promote the use of flax fibre referred to in Article 2 of Regulation (EEC) No 1308/70 shall be: ECU 0/ha.

Article 3

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.

This Regulation shall be binding in its entirety and directly 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.