A4-0058/95

Proposal for a Council Regulation amending Regulations (EEC) No 1785/81 on the common organization of the markets in the sugar sector and (EEC) No 1010/86 laying down general rules for the production refund on certain sugar products used in the chemical industry (COM(94)0439 - C4-0018/95 - 94/0248(CNS))

The proposal was approved with the following amendments:

(Amendment 1)

Recital 4

>Original text>

Whereas the production quotas allocated to each sugar sector undertaking may, in any marketing year, give rise, as a result of the relevant consumption, production, importation, stock and carryover levels, and the average loss likely to be borne under the self-financing scheme, to an export volume exceeding that set in the Agreement; whereas provision should therefore be made for adjustments over one or more marketing years in the guarantees linked to quotas so that the Community's commitments can be met;

>Text following EP vote>

Whereas the production quotas allocated to each sugar sector undertaking may, in any marketing year, give rise, as a result of the relevant consumption, production, importation, stock and carryover levels, and the average loss likely to be borne under the self-financing scheme, to an export volume or to budgetary commitments exceeding that set in the Agreement; whereas provision should therefore be made for adjustments over one or more marketing years in the guarantees linked to quotas so that the Community's quantitative and budgetary commitments can be met;

(Amendment 2)

Recital 4a (new)

>Text following EP vote>

Whereas in practice, the supply arrangements for refineries provided for in Article 37 of Regulation (EEC) No 1785/81 could lead to an increase in the quantity of sugar which may be refined under Community guarantees; whereas Community sugar surpluses could increase as a result; whereas it would be unfair if, on account of the Union's commitments in relation to GATT, those Member States which do not benefit under the arrangements for refineries were to be adversely affected by such surpluses; whereas the Commission therefore needs to keep the trend in Community production under very careful review and, should undesirable inequalities occur between the different Member States, propose the measures required to adjust national quotas;

(Amendment 3)

Recital 7

>Original text>

Whereas in view of the compulsory production quota system introduced when the market organization was set up, undertakings have from its inception been allowed the possibility of deciding, in agreement with beet and cane growers, to carry over part of their production from one marketing year to the next, treating it as production of the latter with compulsory storage during twelve months; whereas the essential aim of this arrangement was to allow interested parties to cope with unforeseen changes in production levels from one year to another without, in the case of the C sugar produced, being obliged to export it to third countries regardless of the situation on the world market; whereas from the 1981/82 marketing year onwards the reimbursement provided for under the Community rules on equalization of storage costs during the compulsory storage period has been extended to C sugar; whereas over the thirteen marketing years in which this particular rule has applied the quantities of C sugar carried over have increased substantially and are no longer in keeping with the purpose of carryover indicated above; whereas the possibility of systematic carryover of large volumes under these terms may constitute an encouragement to production of C sugar and impede the proper operation of the quota system; whereas in the case of C sugar carried over from production of the 1996/97 marketing year onwards a return should be made to the situation existing from 1968/69 to 1980/81, namely that during the compulsory storage period reimbursement of storage costs under

>Text following EP vote>

Whereas in view of the compulsory production quota system introduced when the market organization was set up, undertakings have from its inception been allowed the possibility of deciding, in agreement with beet and cane growers, to carry over part of their production from one marketing year to the next, treating it as production of the latter with compulsory storage during twelve months; whereas the essential aim of this arrangement is to allow interested parties to cope with unforeseen changes in production levels from one year to another, resulting in some cases from variations in yields caused by climatic conditions; whereas in countries in deficit, the arrangement enables supplies to the market to be regulated more easily and lends greater stability to distribution networks; whereas in exporting countries, on the other hand, it enables sales of C sugar on the world market to be brought into line with the absorption capacities of that market without entailing a need, in the case of the C sugar produced, for the product to be exported to third countries regardless of the situation on the world market; whereas from the 1981/82 marketing year onwards the reimbursement provided for under the Community rules on equalization of storage costs during the compulsory storage period has been extended to C sugar; whereas over the thirteen marketing years in which this particular rule has applied the above measure has both served to regulate supplies to the market at the internal level and allowed exports to be spread properly over time; whereas the measure should therefore remain

>Original text>

the Community rules on equalizing these costs should no longer apply to C sugar carried over; whereas, however, as a transitional measure for the 1995/96 and 1996/97 marketing years, reimbursement of storage costs for C sugar should be granted for the first six months of the compulsory storage period; whereas the grant of this reimbursement for sugar in respect of which guarantees have been reduced under obligations created by commitments entered into in the context of the Agreement should not be discontinued;

>Text following EP vote>

in force until the 2000/01 marketing year; whereas the grant of this reimbursement for sugar in respect of which guarantees have been reduced under obligations created by commitments entered into in the context of the Agreement should be enforced;

(Amendment 4)

Recital 8a (new)

>Text following EP vote>

Whereas the prices and other conditions for the supply of raw sugar to the European industry should be the same, irrespective of the origin thereof;

(Amendment 6)

Recital 14a (new)

>Text following EP vote>

Whereas, furthermore, in view of the fact that a sugar-beet processing factory is shortly to be built in Portugal to enable the country to take advantage of its production quota, that Member State should be authorized to allocate temporary aid to facilitate the introduction of the crop and the adaptation thereof to existing production systems, the main features of which are fragmentation and small size;

(Amendment 7)

Recital 15

>Original text>

Whereas the partial exemption from self-financing granted by Article 9 of Council Regulation (EEC) No 1010/861, as last amended by Commission Regulation (EEC) No 464/912, to sugar used in the chemical industry should be discontinued;

>Text following EP vote>

Deleted

>Original text>

___________________

1 OJ L 94, 9.4.1986, p. 9.

2 OJ L 54, 28.2.1991, p. 22.

(Amendment 8)

Recital 15a (new)

>Text following EP vote>

Whereas yeast manufacture may help to increase the sale of sugar and whereas it might therefore be desirable for yeast to be included in the Annex to Council Regulation (EEC) No 1010/861 as last amended by Commission Regulation (EEC) No 464/912;

___________________

1 OJ L 94, 9.4.1986, p. 9.

2 OJ L 54, 28.2.1991, p. 22.

(Amendment 9)

ARTICLE 1(-1) (new)

Article 8(1a) (new) (Regulation (EEC) No 1785/81)

>Text following EP vote>

-1. The following paragraph 1a is added to Article 8:

>Text following EP vote>

'1a. However, the compensation system provided for in paragraph 1 shall not apply to sugar obtained from cane harvested in Spain and marketed in that Member State during the 1995/96 to 2000/01 marketing years.'

(Amendment 10)

ARTICLE 1(1)

Article 9(3) (Regulation (EEC) No 1785/81)

>Original text>

1. The following subparagraph is added to Article 9(3):

'The standard amount of ECU 7 per 100 kilograms of white sugar referred to in Article 4a of Regulation (EEC) No. 1010/86 may be reduced up to zero'.

>Text following EP vote>

Deleted

(Amendment 11)

ARTICLE 1(7)

Article 23(4a), first subparagraph (Regulation EEC No 1785/81)

>Original text>

4a. In order to comply with the commitments entered into by the Community under the agricultural agreement concluded pursuant to Article 228(2) of the Treaty, the guarantees for the disposal of sugar, isoglucose and inulin syrup produced under quota may be reduced for one or more designated marketing years.

>Text following EP vote>

4a. In order to comply with the commitments entered into by the Community under the agricultural agreement concluded pursuant to Article 228(2) of the Treaty, the guarantees for the disposal of sugar, isoglucose and inulin syrup produced under quota may be reduced for one or more designated marketing years, provided the management committee referred to in Article 40 has ascertained the correctness of the procedures adopted under Article 24b(5)(c).

(Amendment 12)

ARTICLE 1(7)

Article 23(4a), second subparagraph (Regulation (EEC) No 1785/81)

>Original text>

For the purposes of applying the first subparagraph, for each marketing year the guaranteed quantity under quotas shall be laid down before 1 October on the basis of forecasts of production, imports, consumption, storage, carryover, exportable balance and average loss likely to be borne under the self-financing scheme within the meaning of point (d) of Article 28(1). If these forecasts show an exportable balance for the marketing year in question greater than the maximum laid down by the agreement referred to above, the guaranteed quantity shall be reduced by the difference in accordance with the procedure laid down in Article 41. This difference shall be divided up between sugar, isoglucose and inulin syrup in accordance with the percentage representing the total of the A and B quotas of each product in the Community. It shall then be broken down by Member State and by product by applying the corresponding coefficient set out in the table below.

>Text following EP vote>

For the purposes of applying the first subparagraph, for each marketing year the guaranteed quantity under quotas shall be laid down before 1 October on the basis of forecasts of production, imports, consumption, storage, carryover, exportable balance and average loss likely to be borne under the self-financing scheme within the meaning of point (d) of Article 28(1). If these forecasts show an exportable balance for the marketing year in question greater than the maximum laid down by the agreement referred to above, whether in quantitative or budgetary terms, the guaranteed quantity shall be reduced by the difference in accordance with the procedure laid down in Article 41. This difference shall be divided up between sugar, isoglucose and inulin syrup in accordance with the percentage representing the total of the A and B quotas of each product in the Community. It shall then be broken down by Member State and by product by applying the corresponding coefficient set out in the table below.

(Amendment 13)

ARTICLE 1(7)

Article 23(4a), second subparagraph a (new) (Regulation (EEC) No 1785/81)

>Text following EP vote>

The rules governing the inulin sector must include the bases for organizing relations between processors and suppliers of raw materials, with particular regard to prices, subscriptions and interprofessional agreements within the sugar sector.

(Amendment 14)

ARTICLE 1(7)

Article 23(4a), second subparagraph b (new) (Regulation (EEC) No 1785/81)

>Text following EP vote>

Where quotas are allocated, the regulation must include the arrangements for setting agricultural raw material prices by reference to the prices applicable in the sugar sector and also the application to the inulin sector of provisions relating to the interprofessional agreements similar to those applicable to the sugar sector.

(Amendment 15)

ARTICLE 1(10a) (new)

Article 24b(1) to (3) (Regulation (EEC) No 1785/81)

>Text following EP vote>

10a. Article 24b(1) to (3) is replaced by the following:

>Text following EP vote>

'1. In order to respect acquired production rights and ensure balance among the various products covered by the COM, the inulin syrup quotas shall be set by the Council for the period from 1995/96 to 2000/01 at a level corresponding to average real production in the last three marketing years (1992/93 to 1994/95).'

(Amendment 16)

ARTICLE 1(10b) (new)

Article 25(1) (Regulation (EEC) No 1785/81)

>Text following EP vote>

10b. Article 25(1) is replaced by the following:

'1. Under the terms of this Article and with due regard to the interests of all concerned parties, in particular sugar-beet and sugar-cane producers, the Member States may transfer A and B quotas from one undertaking to another. However, such transfers may not involve the conversion of a sugar quota into an isoglucose quota or vice versa and inulin quotas may not be converted into sugar or isoglucose quotas or vice versa either.'

(Amendment 17)

ARTICLE 1(11)

Article 27(2), second indent (Regulation (EEC) No 1785/81)

>Original text>

'- store such quantity or quantities for a period of 12 consecutive months from a date to be determined. For this period storage costs for the production of C sugar carried over from the 1996/97 marketing year to the following marketing year shall no longer be reimbursed pursuant to Article 8.

>Text following EP vote>

'- store such quantity or quantities for a period of 12 consecutive months from a date to be determined. For this period storage costs for the production of C sugar carried over from the 1996/97 marketing year to the following marketing year shall be reimbursed pursuant to Article 8.

>Original text>

For the production of C sugar from the 1995/96 marketing year carried over to the 1996/97 marketing year, this reimbursement of storage costs shall be granted by way of a transitional measure for the first six months of compulsory storage.

>Original text>

Nevertheless, for the production of A sugar and B sugar which has become production of C sugar after application of Article 23(4a) and which is carried forward, storage costs shall be reimbursed under the provisions of Article 8'.

>Text following EP vote>

Furthermore, for the production of A sugar and B sugar which has become production of C sugar after application of Article 23(4a) and which is carried forward, storage costs shall at all events be reimbursed under the provisions of Article 8'.

(Amendment 18)

ARTICLE 1(12)

Article 28(1)(e), new subparagraph (Regulation (EEC) No 1785/81)

>Original text>

'In estimating this total loss, losses arising from the granting of the production refunds referred to in Article 1 of Regulation (EEC) No 1010/86 shall be taken into account for the beneficiary basic quantities.'

>Text following EP vote>

'In estimating this total loss, losses arising from the granting of the production refunds referred to in Article 1 of Regulation (EEC) No 1010/86 shall be taken into account for the beneficiary basic quantities provided that, in the aggregate, they exceed 60 000 tonnes of sugar, expressed in white sugar.'

(Amendment 19)

ARTICLE 1(15)

Article 37(2a) (new) (Regulation (EEC) No 1785/81)

>Text following EP vote>

2a. Where imports of sugar under the preferential scheme provided for in this Article lead to a fall in marketing guarantees compared with the quotas laid down, the agricultural producers affected shall receive financial compensation chargeable to the EAGGF (Guarantee Section).

>Text following EP vote>

The arrangements for calculating and granting this aid, which shall be equivalent to the income loss sustained by the agricultural producers, shall be determined in accordance with the procedure set out in Article 41. The aid may also be granted in the form of a reduction in the share of production levies payable by the producers.

(Amendment 21)

ARTICLE 1(16a) (new)

Article 46(8), first subparagraph (Regulation (EEC) No 1785/81)

>Text following EP vote>

16a. In Article 46(8), first subparagraph, the words '1993/94 to 1995/96 marketing years' are replaced by '1993/94 to 1996/97 marketing years'.

(Amendment 22)

ARTICLE 1(16b) (new)

Article 46(8a) (new) (Regulation (EEC) No 1785/81)

>Text following EP vote>

16b. The following paragraph 8a is inserted in Article 46:

>Text following EP vote>

'8a. The Member States with higher interest rates than those used in the calculation of the monthly contribution to storage costs shall be authorized to pay national aid in order to offset the effect of this difference on these costs.'

(Amendment 23)

ARTICLE 2

>Original text>

Article 9 of Regulation (EEC) No 1010/86 is repealed.

>Text following EP vote>

Deleted

(Amendment 24)

ARTICLE 2a (new)

>Text following EP vote>

In view of the economic, social and environmental importance of sugar beet cultivation in the relevant regions of the European Union, the Commission shall submit a report to the Council and the European Parliament by 30 June 1999 which may contain proposals to amend the COM in sugar, in order to guarantee stability in this sector.

(Amendment 26)

ARTICLE 2b (new)

>Text following EP vote>

The Commission shall submit a report assessing the possible repercussions in terms of increased sugar consumption that might result from expansion of the list of chemical industry products eligible for refunds on account of the use of sugar (for example in the manufacture of yeasts).

Legislative resolution embodying Parliament's opinion on the proposal for a Council Regulation amending Regulations (EEC) No 1785/81 on the common organization on the markets in the sugar sector and (EEC) No 1010/86 laying down general rules for the production refund on certain sugar products used in the chemical industry (COM(94)0439 - C4-0018/95 - 94/0248(CNS))

(Consultation procedure)

The European Parliament,

- having regard to the Commission proposal to the Council, COM(94)0439 - 94/0248(CNS) ((OJ C 377, 31.12.1994, p. 18.)),

- having been consulted by the Council pursuant to Article 43 of the EC Treaty (C4-0018/95),

- having regard to Rule 58 of its Rules of Procedure,

- having regard to the report of the Committee on Agriculture and Rural Development and the opinions of the Committee on Budgets, the Committee on Development and Cooperation and the Committee on Budgetary Control (A4- 0058/95),

1. Approves the Commission proposal, subject to Parliament's amendments;

2. Calls on the Council to notify Parliament should it intend to depart from the text approved by Parliament;

3. Asks to be consulted again should the Council intend to make substantial modifications to the Commission proposal;

4. Instructs its President to forward this opinion to the Council and Commission.