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COM (74)1827
Vol.1974/0287

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COM(74)1827 final
Brussels ,11November 1974
Proposal fora
REGULATION (EEC)OFTHECOUNCIL
amending Council Regulation (EEC)No1132/74on
production refunds inthecereals andrice sectors
(submitted totheCouncil "bytheCommission )
CQM(74 )1827 final

EXPLANATORY MMJRMTOtJM
1.CouncilRegulation(EEC)No1132/74,Article7,paragraph1providesthat
ifthepricesontheworldmarketofmaize,commonwheatorbrokenrice
showappreciable andpersistentvariationsinrelationtotheamountsspe­
cifiedinArticles1,4and.5ofthatRegulationtheCouncilmayalterthese
amounts.
2.Pricesofthesebasicproductsontheworldmarkethaveremainedathigh
levelsforsomeconsiderable timeandarelikelytoremainso.Sothatthe
maintenanceoftheamountsspecifiedinArticles1,4and.5attheirpresent
levelsdoesnotleadtothegrantingofarestitution whichisnolonger
economicallyjustifiedandthefinancialburdenofwhichdoesnotbecome
excessive,itisproposedtointroducethefollowingamountsasfrom1
December1974'
3*Inordertopreservethebalancedrelationship betweencerealsstarchand
potatostarch,itisproposedtoreducetheproductionrefundpaidtothe
manufactureresofpotatostarch.Thisleadstoanamountof13.16unitsof
accountbeingintroducedinArtiole3,paragraph1.
FinancialConseruences J
ThisdraftCouncilRegulationprovidesforareductioninthestarchproduction
refundofslightlylossthan50$*Basedontheregulationatpresentinforce,
expenditurefor1975hasbeenestimatedat160MioU.C,Theproposedreductionwill
leadatfirstsighttoasavinginexpensesof80MioU.C.Takingaccountofthe90
dayperiodforbeingundersuspensionandalsothedelayinpayment,thereduction
inFEOGAexpenseswillbeabout50-60MioU.C.(onthebasisthatthecutapplies
equallytopotatoesinthe1975/76marketingyear).Thisreductioninexpenditure
fallsunderheading6011,Chapter60ofthe1975BudgetoftheEuropeanCommunities .Maize:10.09uaper100kg
Commonwheat:10.09uaper100kg
Brokenrice:12.74uaper100kg
Headin,?6011MioU.C
Expenditure
167,5
145.7(Jan-Oct1974)Credits
1975
1974
1975120.0
162.0

Proposalfora
REGULATION(EEC)OPTHECOUNCIL
amendingCouncilRegulation(EEC)No1132/74onproductionrefundsin
thecerealsandricesectors
THEC0U1TCILOFTHEEUROPEANCOIBTUNITIES ,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity ;
HavingregardtoCouncilRegulation MoI20/67/EECof13June1967onthe
commonorganisation ofthemarketincereals,aslastamended "byRegulation
(EEC)No1996/74andinparticularArticle11(3)thereof;
HavingregardtoCouncilRegulationNo359/67/EECof25July1967onthe
common -organisationofthemarketinrice,aslastamended "byRegulation(EEC)
No1129/74andinparticularArticle9(2)thereof;
HavingregardtotheproposalfromtheCommission ;
IJherea.3Article7(l)ofCouncilRegulation(EEC)No1132/74^^providesthatif
thepricesofcommonwheat,maizeorbrokenriceshowappreciable andpersis­
tentvariations ontheworldmarketsinrelationtotheamountsspecifiedin
Articles1,4and5ofthatRegulation ,thelattermaybealtered;whereas
worldmarketpricesfortheseproductshavebecomeveryhighandarelikely
toremainso;whereasthemaintenanceoftheamountsspecifiedinArticles1,
4and5a"ttheirpresentlevelscouldleadtothegrantingofaproduction
refundthesizeofwhichisnolongereconomically justifiedandthefinancial
burdenofwhichoouldbecomeexcessive;whereastheseamountsshouldtherefore
bealtered;
^OJNo117,19.6.1967,p.2269/67
OJIIoL209,31.7.1974,p.1.^OJNoL174,31.7.1967,p.1.^OJNoL128,IO.5.I967,p.20.^Ibid,p.24

-2-
WhereasIf"thes&idcunouivtsarealteredi*t\in.llalsobonecessary "to
adjustthepriceto"bepaidtoproducers -ofpotatoesusedinthemanufacture
ofstarch;
Whereasitshouldbespecifiedhowtheproductionrefundonpotatostarchis
to"bedeterminediftheamountusedforthepurposeofcalculatingthepro­
ductionrefundonmaiseforthemanufactureofstanchisalteredduringthe
courseofamarketingyear5
HASADOPTEDTHISREGULATION :.
Article 1
1.InArticles 1,5a™*7ofRegulation(EEC)Nc1132/74theamount
•8.745unitsofaccount*isreplaced "by'10.09unitsofaccount'.
2,InArticles1,4and7ofRegulation(EEC)No1132/74theamount
•10.907unitsofaccount'isreplacedby'12.74unitsofaccount'.
Article2
ThefollowingparagraphisaddedtoArticle2ofRegulation(EEC)No1132/74:
•However,iftheamountspecifiedinthefirstsub-paragraph ofArticle1(1)
isalteredduringamarketingyear,therefundprovidedforinthefirst
paragraphofthisArticleshallbeequaltothearithmetical meanofthe
refundsper161kilogrammesofmaiseforstarchmanufacturegrantedduring
theperiodrunningfromthedateofsuchalterationtotheendofthemarke­
tingyear.However,thealterationoftheamountspecifiedinthefirst
sub-paragraph asaforesaidshallnotbetakenintoaccountincalculating
refundsgrantedbeforethedateonwhichsuchalterationtookeffeot'.
Articles
InArticle3(1)theamount'11.309unitsofaccount'isreplacedby*13.16
unitsofaccount'. '
Articie4
ThisRegulationshallenterintoforceon1December1974.

ThisRegulationshall "be"bindingm
allMemberStates.
DoneatBrussels.itsentiretyanddirectlyapplicablein
FortheCounoil
ThePresident