98/0111 (CNS) Proposal for a COUNCIL REGULATION (EC) No . . .

of . . .

amending Regulation (EEC) No 3950/92 establishing an additional levy in the milk and milk products sector (98/C 170/05)

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,

Whereas, pursuant to Council Regulation (EEC) No 3950/92 of 28 December 1992, establishing an additional levy in the milk and milk products sector (1), the additional levy scheme, which had been originally been introduced from 2 April 1984 in the said -sector, was extended by another seven 12-month periods; whereas the purpose of this scheme was to reduce the imbalance between supply and demand on the milk and milk-products market and the resulting structural surpluses; whereas the scheme remains necessary in the future in order to achieve a better market balance; whereas it should therefore continue to be applied for six further consecutive 12-month periods starting on 1 April 2000;

Whereas the level of price support in the dairy sector will be gradually reduced by 15 % in total over four marketing years from 1 July 2000; whereas the effects of this measure on internal consumption and export of milk and milk products justify a 2 % increase in the total reference quantity for milk in the Community in four steps following the respective price cuts;

Whereas the individual reference quantity should be defined as the quantity available, irrespective of any quantities which may have been transferred temporarily, on 31 March 2000, the expiry date of the seven periods of application of the levy scheme following its prolongation decided in 1992;

Whereas the additional reference quantities should be distributed in such a way as to improve the situation of certain categories of farmers who need particular support; whereas it is therefore appropriate to oblige Member States to allocate these quantities with priority to young farmers who intend to start or develop milk production and to producers in mountain areas; whereas precautions should be taken to prevent the said distribution criteria from being circumvented; whereas, in the case of producers in mountain areas, these measures should be designed in such a way as to nullify the effects of moving additional reference quantities out of mountain areas during the first two 12-month periods following their allocation;

Whereas the experience with the additional levy scheme has shown that the transfer of reference quantities through legal constructions such as leases which do not necessarily lead to a permanent allocation of the reference quantities concerned to the transferee, can be an additional cost factor for milk production hampering the improvement of production structures; whereas, in order to strengthen the reference quantities' character as a means of regulating the market of milk and milk products, it is appropriate to provide that in cases of non-permanent transfers a certain part of the relevant reference quantities be returned to the national reserve for re-distribution to active producers; whereas Member States should have the possibility to exempt certain specific categories of persons or cases from the application of the said measure, in the light of an evaluation of the interests involved and the objectives pursued; whereas the percentages applied should be determined by Member States in the light of their specific situation; whereas, moreover, where reference quantities fall back to persons who did not actively produce milk or milk products during a given reference period, Member States should have the possibility to provide that the relevant reference quantities should revert to the national reserve unless they are permanently transferred to an active producer within a certain period; whereas, however, persons who resume milk production within a certain period should have the possibility to apply for a re-allocation of reference quantities;

Whereas a certain number of provisions in Regulation (EEC) No 3950/92 have become obsolete and should therefore be deleted,

HAS ADOPTED THIS REGULATION:

Article 1

Regulation (EEC) No 3950/92 is hereby amended as follows:

1. Article 1(1) is replaced by the following:

'For six new consecutive periods of twelve months commencing on 1 April 2000, an additional levy shall be payable by producers of cow's milk on quantities of milk or milk equivalent delivered to a purchaser or sold directly for consumption during the 12-month period in question in excess of a quantity to be determined.`

2. Article 3(2) is replaced by the following:

'(2) The total quantities set out in Annex I and Annex II including the additional reference quantities referred to in Article 4(3) and (4), shall be fixed without prejudice to possible review in the light of the general market situation and particular conditions existing in certain Member States.

The overall quantity for the Austrian deliveries quota may be increased to compensate Austrian 'SLOM` producers, up to a maximum of 180 000 tonnes, to be allocated in accordance with Community legislation. This reserve must be non-transferable and used exlusively on behalf of producers whose right to take up production again will be affected as a result of accession.

The overall quantity for the Finnish deliveries quota may be increased to compensate Finnish 'SLOM` producers, up to a maximum of 200 000 tonnes, to be allocated in accordance with Community legislation. This reserve must be non-transferable and used exclusively on behalf of producers whose right to take up production again will be affected as a result of accession.

The increase in overall quantities, and the conditions under which the individual reference quantities provided for in the two preceding subparagraphs shall be granted, shall be decided upon in accordance with the procedure referred to in Article 11.`

3. Article 3(3) is hereby deleted.

4. Article 4 is replaced by the following:

'Article 4

(1) The individual reference quantity available on the holding shall be equal to the quantity available on 31 March 2000. It shall be:

- increased, where appropriate, in accordance with Article 4(3) and (4), and

- adjusted, where appropriate, for each of the periods concerned, so that the sum of the individual reference quantities of the same type does not exceed the corresponding global quantities referred to in Article 3, taking account of any reductions made for allocation to the national reserve provided for in Article 5.

(2) Individual reference quantities shall be increased or established at the duly justified request of producers to take account of changes affecting their deliveries and/or direct sales. The increase or establishment of such a reference quantity shall be subject to a corresponding reduction or cancellation of the other reference quantity the producer owns. Such adjustments may not lead to an increase in the sum of the deliveries and direct sales referred to in Article 3 for the Member State concerned.

Where the individual reference quantities undergo a definitive change, the quantities referred to in Article 3 shall be adjusted in accordance with the procedure laid down in Article 11.

(3) Member States shall:

(a) allocate the additional reference quantities set out in column (c) of the tables in Annex II with priority to young farmers who intend to start or develop milk production;

(b) take the necessary measures to ensure that the allocation of these additional reference quantities achieves the intended purpose and, in particular, to provide for cases where reference quantities allocated have not been used in accordance with that purpose.

(4) Member States shall allocate the additional reference quantities set out in column (d) of the tables in Annex II to producers the whole of whose holdings are situated in mountain areas within the meaning of Article 17 of Regulation (EC) No . . . [rural development].

For two 12-month periods following the allocation referred to in the first subparagraph:

(a) Member States shall not authorise the producers who have received such allocations to make temporary transfers as defined in Article 6(1) to producers other than those referred to in the first subparagraph;

(b) where all or part of the holding of a producer who has received such an allocation is sold or leased, to producers other than those referred to in the first sub-paragraph, the additional reference quantity shall revert to the national reserve in proportion to the area sold or leased;

(c) where producers who have received such allocations transfer reference quantities under an authorisation granted pursuant to Article 8(d) or (e) to producers other than those referred to in the first sub-paragraph, a part of the additional reference quantity allocated which shall be equal to the quantity subject to the transfer, shall be transferred to the national reserve;

(d) where producers who have received such allocations participate in any measure regarding the definitive abandonment of reference quantities, the additional reference quantity allocated shall revert to the national reserve, and compensation shall be paid for the quantity transferred less the said additional quantity.

The additional reference quantities transferred to the national reserve under points (b), (c) and (d) shall be re-allocated to other producers referred to in the first sub-paragraph.

(5) Member States shall allocate the additional reference quantities referred to in paragraphs 3 and 4, taking due account of the requirements resulting from Community legislation in the field of environment.`

5. The second sentence of Article 6(1) first subparagraph is hereby deleted.

6. Article 7(1) second subparagraph is replaced by the following:

'However, where land is transferred to public authorities and/or for use in the public interest, or where the transfer is carried out for non-agricultural purposes, Member States shall provide that the measures necessary to protect the legitimate interests of the parties are implemented, and in particular that the departing producer is in a position to continue milk production, if such is his intention.`

7. Article 8 shall be replaced by the following:

'Article 8

With a view to completing restructuring of milk production or to environmental improvement, Member States may take one or more of the following actions in accordance with detailed rules which they shall lay down taking account of the legitimate interests of the parties:

(a) grant compensation in one or more annual instalments to producers who undertake to abandon definitively all or part of their milk production and place the reference quantities thus released in the national reserve,

(b) determine on the basis of objective criteria the conditions under which producers may obtain, in return for payment, at the beginning of a 12-month period, the reallocation by the competent authority or by the body designated by that authority, of reference quantities released definitively at the end of the preceding 12-month period by other producers in return for compensation in one or more annual instalments equal to the abovementioned payment,

(c) provide, in the case of land transferred with a view to improving the environment, for the allocation of the reference quantity available on the holding concerned to the departing producer if he intends continuing milk production,

(d) determine, on the basis of objective criteria, the regions or collection areas within which the transfer of reference quantities between certain producer categories without transfer of the corresponding land is authorised, with the aim of improving the structure of milk production,

(e) authorise, upon application by the producer to the competent authority or the body designated by that authority, the transfer of reference quantities without transfer of the corresponding land, or vice versa, with the aim of improving the structure of milk production at the level of the holding or to allow for extensification of production.`

8. The following is added after Article 8:

'Article 8a

(1) Where reference quantities are transferred with or without the corresponding land by means of rural leases or by other means involving comparable legal effects, a part of the transferred reference quantities to be determined by the Member State on the basis of objective criteria, shall revert to the national reserve for redistribution to producers.

The first subparagraph shall not apply to cases where due to the expiration of rural leases or in situations involving comparable legal effects, reference quantities, which had been transferred with or without the corresponding land, are transferred back.

Member States may decide, on the basis of objective criteria, not to apply the first subparagraph to certain specific categories of persons or cases, where, taking account of the interests involved, such non-application does not put at risk the achievement of the objectives pursued in the first subparagraph.

(2) Member States may provide that, where due to the expiration of rural leases or in situations involving comparable legal effects, reference quantities, which had been transferred with or without the corresponding land, are transferred back to a person who has not marketed milk or milk products during the 12-month period preceding that during which the transfer took place as well as during the current 12-month period up to the transfer, the relevant reference quantities shall revert to the national reserve for redistribution to producers in accordance with detailed rules to be determined by them, unless the person concerned permanently transfers these reference quantities with or without the corresponding land to another producer.

Where, in the case of the application of the first subparagraph, the person concerned resumes production of milk or other milk products within a period to be determined by the Member State he shall be granted a reference quantity in accordance with Article 4(1) no later than 1 April following the date of his application. Reference quantities re-allocated under this subparagraph shall not be transferred with or without the corresponding land by means of rural leases or by other means involving comparable legal effects during the two consecutive 12-month periods following their re-allocation.

(3) Paragraph 1 and paragraph 2 first subparagraph shall not apply to temporary transfers under Article 6.`

9. The Annexes set out in the Annex hereto are hereby added to Regulation (EEC) No 3950/92.

Article 2

Where transitional measures are necessary to facilitate the implementation of the amendments provided for in Article 1, they shall be adopted in accordance with the procedure referred to in Article 11 of Regulation (EEC) No 3950/92.

Article 3

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

It shall apply from 1 April 2000.

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

Done at . . .

For the Council

. . .

(1) OJ L 405, 31.12.1992, p. 1. Regulation as last amended by Commission Regulation (EC) No 614/97 of 8.4.1997 (OJ L 94, 9.4.1997, p. 4).

ANNEX

'ANNEX I

>TABLE>

ANNEX II

TOTAL REFERENCE QUANTITIES REFERRED TO IN ARTICLE 3(1) INCLUDING THE ADDITIONAL REFERENCE QUANTITIES REFERRED TO IN ARTICLE 4(3) AND (4)

>TABLE>

>TABLE>

>TABLE>

>TABLE>

`

(1) Included in total reference quantities for deliveries.