No C 103/14 Official Journal of the European Communities 16. 4. 84 
Point 3, third and fourth lines 
'which will also take account of the effect on incomes in countries with positive MCAs'. 
Voting: 
For: 54, against: 22, abstentions: 7. 
Opinion on the proposal for a Council Regulation introducing a tax on certain oils and 
fats 
(84/C 103/08) 
The text referred to the Committee has been published in Official Journal of the Euro­
pean Communities No C 289 of 25 October 1983, page 6. 
A. LEGAL BASIS FOR THE OPINION 
On 12 October 1983 the Council referred the abovementioned proposal to the Econo­
mic and Social Committee in accordance with Articles 47 and 198 of the Treaty estab­
lishing 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 
215th plenary session held in Brussels on 29 February and 1 March 1984. 
The full text of the opinion is as follows: 
THE ECONOMIC AND SOCIAL COMMITTEE, 
Having regard to the Treaty establishing the Euro­
pean Economic Community, and in particular 
Articles 47 and 198 thereof, 
Having regard to the request made by the Council 
of the European Communities on 12 October 1983 
for an opinion on the proposal for a Council Regu­
lation introducing a tax on certain oils and fats, 
Having regard to the decision taken by its Bureau 
on 25 October 1983, instructing the Section for Agri­
culture to draw up an opinion on the matter, 
Having regard to the opinion adopted by the Sec­
tion at its 249th meeting on 9 and 10 February 1984; 
Having regard to the oral report made by the rap­
porteur, Mr de Caffarelli, Having regard to the discussions on 1 March 1984 
during the 215th plenary session held on 29 Febru­
ary and 1 March 1984, 
HAS ADOPTED THE FOLLOWING OPINION 
by 70 votes to 55, with 3 abstentions: (vote 
recorded) 
1. The oils and fats sector must have a comprehen­
sive policy involving the following objectives and 
measures : 
(i) The objectives must be — bearing in mind inter­
national trade and, in particular, the interests of 
the associated countries — an improvement in 
quality and crop diversification in the Com­
munity, better control over the internal factors 
affecting the increase in livestock production, a 
16. 4. 84 Official Journal of the European Communities No C 103/15 
steering of consumption towards those products 
which are best for the health of the consumer, 
and the supply of raw materials for human and 
animal consumption at reasonable prices. 
(ii) The implementation of a policy of market and 
budget equilibrium in the oils and fats sector 
must involve measures for reducing the supply 
of Community products in structural surplus 
and, as far as possible, bringing the prices of 
Community oils and fats into line with those of 
similar imported products. 
2. Bearing these considerations in mind, the Com­
mittee has examined the Commission's proposal for 
the introduction of a tax on certain oils and fats; 
such a proposal is one way of aligning import prices 
and Community cost prices. 
The main arguments which led the Commission to 
draw up its proposal are the following: 
(i) Butterfats are subject to a policy of controlling 
production involving co-responsibility levies 
and quantitative restrictions on production. 
There are no equivalent measures for other oils 
and fats. According to the Commission, this has 
led to an imbalance between these products. 
(ii) The purpose of the tax provided for in this 
Regulation is to stabilize the market in oils and 
fats; the revenue from it should therefore be 
used to fund expenditure in the oils and fats 
sector. 
3. In recent months the Committee has given 
special attention to the question of oils and fats: on 
its own initiative it has drawn up an Information 
Report on the Community Oils and Fats Sector. 
During the Committee's discussions two lines of 
approach emerged: 
— one point of view was that there were no 
grounds for making fundamental changes in 
current policy, 
— the other point of view was that the gap between 
import prices and Community cost prices 
should be closed. 
Finally, in its opinion on the Community policy on 
oils and fats ('), the Committee pointed out 'that it 
has come out against the introduction of a tax in the 
(') ESC opinion of 27 October 1983 (OJ No C 358, 31. 12. 
1983, p. 43). oils and fats sector on a number of occasions over 
the last few years. It does, however, recognize that 
the new background against which the Commission 
submitted the abovementioned proposal — namely 
the revision of the CAP in accordance with the 
Stuttgart mandate — provides justification for a 
fresh and thorough consideration of the issue.' 
4. The Committee would comment as follows 
regarding the legal basis chosen by the Commission: 
(i) According to the Commission, the choice of 
Article 43 of the Treaty is justified by the agri­
cultural nature of the aim in view and the mea­
sure proposed — the re-establishment of a bal­
ance on the oils and fats market between the 
various categories of products, and the imposi­
tion of an agricultural levy. In this case, the pro­
posed measure would be the direct responsibil­
ity of the Council of Ministers. 
(ii) The choice of Article 201 of the Treaty would be 
justified if the aim of the proposal were to col­
lect 'own resources'. If so, ratification by the 
national parliaments would be required. 
5. In the Commission's view, the main aim is to 
restore a balance on the oils and fats market. It is 
debatable whether this aim can be achieved with a 
levy without the levy being so high as to entail an 
unacceptably heavy burden for the Community con­
sumer. The desired balance between the prices of 
butter and margarine could only be attained — if a 
levy is to be used for this purpose — by increasing 
the price of the latter by at least 100 %. The sought-
after balance between olive oil and other oils would 
also result in levies which in practice would mean 
almost a doubling of the price of, for instance, sun­
flower seed oil, quite apart from the fact that the 
Commission has still to examine whether a com­
plete switch is desirable or possible, taking into 
account consumer preferences and the abovemen­
tioned health aspects. The measure could lead to a 
shift from the use of polyunsaturated fats to the use 
of highly saturated fats. 
(i) Closer alignment of EEC prices with the prices 
of imported products could be a way of achiev­
ing the aim in view. 
(ii) Such a measure should aim primarily to lower 
the consumer price of olive oil by reducing 
budgetary expenditure (production aid) in the 
olive oil sector, by improving checks, and by 
NoC 103/16 Official Journal of the European Communities 16.4.84 
tries where intensive production methods are 
not used on dairy farms. 
6. The Committee therefore regards the Commis­
sion proposal for a tax on certain oils and fats as 
unacceptable and calls on the Commission, in the 
light of the above and of all economic arguments, 
including the effects on trade with non-EEC coun­
tries such as the USA, to seek an effective structural 
solution to the vegetable protein shortage, with due 
attention being paid to Article 39 (1) (e) of the 
Treaty and thus to the interests of 300 million Com­
munity consumers. 
The Chairman 
of the Economic and Social Committee 
Francois CEYRAC 
APPENDIX 
to the opinion of the Economic and Social Committee 
APPENDIX 1 
Voting 
A roll-call vote was taken on the opinion as a whole. 
The following members, present or represented, voted for the opinion : 
Messrs Antonsen, Arena, Bagliano, Berger, Binnenbruck, Boddy, Breitenstein, Broicher, Cam-
mann, Campbell, Cremer, Elkan, Etty, Flum, Fortuyn, Fuller, Glesener, Goris, Mrs Gredal, 
Messrs van Greunsven, Hammond, Hemmer, Hilkens, Jarvis, Jaschick, Jenkins, KSlble, Law, 
Lojewski, Loughrey, Low, Masprone, Milne, Mols Sorensen, Muhr, Nielsen B., Mrs Nielsen M., 
Messrs Nielsen P., Nierhaus, Noordwal, de Normann, Pearson, Pfeiffer, Plank, Poeton, Pronk, 
Ramaekers, Regaldo, van Rens, Romoli, Schneider, Schoepges, Schwarz, Sir George Sharp, 
Messrs Smith L., Stahlmann, Staratzke, Storie-Pugh, Storm Hansen, Mrs Strobel, Messrs Swift, 
Tamlin, Van der Mensbrugghe, Van Melckenbeke, Vercellino, Mrs Weber, Mrs Williams, Messrs 
de Wit, Zinkin, Zoli. 
The following members, present or represented, voted against the opinion: 
Messrs Amato, Bazianas, Beretta, Berns, Bonety, Bordes-Pages, Bornard, Mrs Bredima, Messrs 
Briganti, de Caffarelli, Carroll, Cashman, Cavazzuti, Chalioris, Dassis, Dassoulas, De Bruyn, 
d'Elia, Delia Croce, De Tavernier, Dracos, Drago, Dunet, Eelsen, Emo Capodilista, Hadjivassi-
liou, Hovgaard Jakobsen, Kamizolas, Kelly, Kenna, Kirchen, Kitsios, Lauga, Masucci, Meravig-
lia, Morselli, Mourgues, Ognibene, Paggi, Pelletier, Querleux, Raftopoulos, Rainero, Mrs Ran-
goni-Machiavelli, Messrs Roseingrave, Rouzier, Schnieders, Soulat, Spachos, Tixier, Vasseur, van 
der Veen, Wagner, Wick, Yverneau. 
The following members, present or represented, abstained: 
Mr Margot, Mrs Quigley, Mr Strauss. switching the funds thus released to the support 
of consumption. 
An attempt must also be made to bring the sup­
ply of butter and butterfats more closely into 
line with demand by curbing production. One 
way of achieving this would be to reinforce the 
arrangements for switching out of milk produc­
tion, in combination with the current proposals 
to increase the co-responsibility levy. It could 
be examined whether grazing land could be 
used for growing protein crops in those coun-
Done at Brussels, 1 March 1984. 
16. 4. 84 Official Journal of the European Communities No C 103/17 
APPENDIX 2 
AMENDMENTS OR CHANGES MADE TO THE TEXT DURING DISCUSSIONS 
Put to a recorded vote, the following text from the Section opinion was deleted in the course of 
discussion as a result of the adoption of an amendment: 
' 1. The oils and fats sector must have a comprehensive policy involving the following objectives 
and measures: 
(i) The objectives must be a gradual and steady improvement in the Community's level of self-
sufficiency, crop diversification, better control over the external and internal factors affect­
ing the increase in livestock production, stabilization of and/or improvement in the condi­
tions of competition, steering of consumption towards those products which are best for the 
health of the consumer and the supply of raw materials for human and animal consumption 
at reasonable prices. 
(ii) The implementation of a policy of market and budget equilibrium in the oils and fats sector 
must involve measures for reducing the supply of Community products in structural surplus 
and for reducing the gap between the prices of imported oils and fats and the cost prices of 
similar or competing Community products, while avoiding a significant general increase in 
consumer prices. 
2. Bearing these considerations in mind, the Section has examined the Commission's proposal 
for the introduction of a tax on certain oils and fats; such a proposal is one way of aligning 
import prices and Community cost prices. 
The two main arguments advanced by the Commission are the following: 
(i) According to the Commission, butterfats are subject to a policy of controlling production 
involving co-responsibility levies and quantitative restrictions on production; there are no 
equivalent measures for other oils and fats and this has helped to create an imbalance 
between butterfats and other oils and fats. 
(ii) The purpose of the tax provided for in this Regulation is to stabilize the market in oils and 
fats; the revenue from it should therefore be used to fund expenditure in the oils and fats 
sector. 
3. In recent months the Committee has given special attention to the question of oils and fats: 
on its own initiative it has drawn up an Information Report on the Community Oils and Fats 
Sector. During the Committee's discussions two lines of approach emerged: 
— one point of view was that there were no grounds for making fundamental changes in cur­
rent policy, 
— the other point of view was that the gap between import prices and Community cost prices 
should be closed. 
Finally, in its opinion on the Community policy on oils and fats ('), the Committee pointed out 
"that it has come out against the introduction of a tax in the oils and fats sector on a number of 
occasions over the last few years. It does, however, recognize that the new background against 
which the Commission submitted the abovementioned proposal — namely the revision of the 
CAP in accordance with the Stuttgart mandate — provides justification for a fresh and thorough 
consideration of the issue." 
4. The Section does not think it expedient to re-open the discussion about the whole principle 
of a tax on oils and fats. For its part, the Section clearly accepted this contingency on 6 October 
1983, in point 2.3 of its opinion on the Community policy on oils and fats (CES 274/83 fin). 
The Section would, however, point out that, when the abovementioned opinion of the Section for 
Agriculture was examined at the plenary session of 26 and 27 October 1983, the Committee felt 
that before adopting a position on the matter it should take cognizance of the proposals which 
(') ESC opinion of 27 October 1983 (OJ No C 358, 31. 12. 1983, p. 43). 
No C 103/18 Official Journal of the European Communities 16. 4. 84 
the Committee had meanwhile drawn up (and which had been referred to the Committee on 
12 October 1983). The Committee thus left the matter open (cf. CES 980/83 — point 2.3). 
Consequently, the comments below refer essentially to the way in which the tax proposed by the 
Commission is to be applied. 
5. The Section would comment as follows regarding the legal basis chosen by the Commission: 
(i) According to the Commission, the choice of Article 43 of the Treaty is justified by the agri­
cultural nature of the aim in view and the measure proposed — the re-establishment of a 
balance on the oils and fats market between the various categories of products, and the 
imposition of an agricultural levy. In this case, the proposed measure would be the direct 
responsibility of the Council of Ministers. 
(ii) The choice of Article 201 of the Treaty would be justified if the aim of the proposal were to 
collect "own resources". If so, ratification by the national parliaments would be required. 
6. In the Commission's view, the main aim is to restore a balance on the oils and fats market. It 
is debatable whether the rate proposed for the tax is high enough to achieve this aim: 
(i) On the one hand, the introduction of a minimum import price could wejl be an effective 
measure. 
(ii) On the other hand, because of difficulties which may arise with the Community's trading 
partners as a result of introducing such a minimum import price, the Commission proposal 
should be amended and supplemented as follows if it is to achieve its aim: a higher rate of 
tax, better conditions as regards surveillance measures and the places where the checks are to 
be carried out on the raw materials; specific arrangements for improving the conditions of 
competition between the various categories of oils and fats, between olive oil and seed oil, 
and between butter and margarine. 
7. To sum up, the Section regards the Commission proposal for a tax on certain oils and fats as 
acceptable — subject to the above comments — for a limited period to be fixed in the light of the 
overall situation in the oils and fats sector.' 
Voting: 
Votes in favour of deletion: 72, votes against deletion: 53, abstentions: 3. 
The following members, present or represented, voted in favour of deletion : 
Messrs Antonsen, Arena, Bagliano, Berger, Binnenbruck, Boddy, Breitenstein, Broicher, Cam-
mann, Campbell, Cremer, De Bievre, Elkan, Etty, Flum, Fortuyn, Fuller, Glesener, Goris, Mrs 
Gredal, Messrs van Greunsven, Hammond, Hemmer, Hilkens, Jarvis, Jaschick, Jenkins, Kelly, 
Kenna, Kolble, Law, Lojewski, Laughrey, Masprone, Milne, Mols Sorensen, Muhr, Nielsen B., 
Mrs Nielsen M., Messrs Nielsen P., Nierhaus, Noordwal, de Normann, Pearson, Pfeiffer, Plank, 
Poeton, Pronk, Ramaekers, Regaldo, van Rens, Romoli, Schneider, Schoepges, Schwarz, Sir 
George Sharp, Messrs Smith L., Stahlmann, Staratzke, Storie-Pugh, Storm Hansen, Mrs. Strobel, 
Messrs Swift, Tamlin, Van der Mensbrugghe, Van Melckenbeke, Mrs Weber, Mrs Williams, 
Messrs de Wit, Zinkin, Zoli. 
The following members, present or represented, voted against deletion: 
Messrs Amato, Bazianas, Beretta, Berns, Bonety, Bornard, Mrs Bredima, Messrs Briganti, de Caf-
farelli, Carroll, Cashman, Cavazzuti, Chalioris, Dassis, Dassoulas, De Bruyn, d'Elia, Delia Croce, 
De Tavernier, Dracos, Drago, Dunet, Eelsen, Emo Capodilista, Hadjivassiliou, Hovgaard Jakob-
sen, Kamizolas, Kirchen, Kitsios, Lauga, Masucci, Meraviglia, Morselli, Mourgues, Ognibene, 
Paggi, Pelletier, Querleux, Raftopoulos, Rainero, Mrs Rangoni-Machiavelli, Messrs Roseingrave, 
Rouzier, Schnieders, Soulat, Spachos, Tixier, Vasseur, van der Veen, Vercellino, Wagner, Wick, 
Yverneau. 
The following members, present or represented, abstained: 
Mr Margot, Mrs Quigley, Mr Strauss. 
16. 4. 84 Official Journal of the European Communities No C 103/19 
APPENDIX 3 
Minority statement 
After the vote by name on the whole opinion, the undersigned farmers' representatives, who 
voted against, issued the following minority statement: 
'The fact that the Economic and Social Committee rejected the opinion of its Section for 
Agriculture and adopted an opinion opposing the Commission proposal for a tax on oils 
and fats led the farmers' representatives to vote against the latter opinion and to make the 
following statement: 
— the rejection of the tax on oils and fats casts doubt on the very idea of an overall policy 
for the oils and fats sector, 
— with the prospect of severe restrictions in the dairy sector and of enlargement of the 
Community to include Spain and Portugal, the Commission proposals assume even 
greater urgency and relevance, 
— the farmers hold to the essential idea of economic fairness in the treatment of similar 
production sectors.' 
Messrs Bazianas, Berns, de Caffarelli, Cashman, Chalioris, De Tavernier, Emo Capodilista, Hov-
gaard Jakobsen, Lauga, Morselli, Ognibene, Paggi, Rainero, Schnieders, Vasseur, van der Veen, 
Wick, Yverneau. 
Opinions on the 
— proposal for a Council Regulation amending Regulation (EEC) No 86/83 which 
suspends certain provisions of Regulation (EEC) No 1723/81 as regards the 
possibility of granting aids for the use of butter in the manufacture of certain 
foodstuffs 
— proposal for a Council Regulation amending Regulation (EEC) No 1411/71 as 
regards the fat content of drinking milk 
— proposal for a Council Regulation laying down general rules on the granting of aid 
for concentrated skimmed milk and concentrated milk for use as animal feed 
— proposal for a Council Regulation amending Regulation (EEC) No 1269/79 with 
regard to the terms for the disposal of butter at a reduced price for direct 
consumption 
(84/C 103/09) 
The text referred to the Committee has been published in Official Journal of the Euro­
pean Communities No C 289 of 25 October 1983, page 8. 
A. LEGAL BASIS FOR THE OPINION 
On 21 October 1983 the Council referred the abovementioned proposals to the Econo­
mic and Social Committee in accordance with Articles 47 and 198 of the Treaty estab­
lishing 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 
215th plenary session held in Brussels on 25 February and 1 March 1984. 
The full text of the opinion is as follows: