ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(81)527
Vol.1981/0158

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(81)527 final
Brussels.15October1981
Proposalfora
COUNCILREGULATION (EEC)
providingforspecialaidforrawtobaccofollowingthe
earthquake inItalyinNovember1980andderogating
fromArticle12aofRegulation (EEC)No727/70
:!
I... J
(submittedtotheCouncilbytheCommission )
--
C0M(81)527final

EXPLANATORY MEMORANDUM
1.Italy /andspecifically theCampania region ,wasseriously affected by
theearthquake inNovember 1980 .Theextent ofthedamage toon-farm
tobacco-curing facilities andtofirst-processing andmarket preparation
installations ,andtheeffect this hashad :
(a)ontheincome ofgrowers , ^ %
(b)ontheir ability toadapt tomarket conditions ,
(c)onthescale oftheproblems forprocessors inmarketing the1980
harvest ,
aresuch astowarrant exceptional measures forthetobacco sector .
Thetobacco produced inCampania accounts forabout 50%ofthecountry 's
output ,constitutes asource ofincome for40000growers andprovides
employment forabout 10000workers engaged intheprocessing and
marketing ofrawtobacco . >
2.1 .Theearthquake destroyed ,damaged orputoutofaction numerous centres
forthefirst processing andmarket preparation oftobacco ,andthis
hasmeant that alltheoperations carried outthere have been concen­
trated inthose installations which were theleast damaged orwhich
were left unscathed .TheGrowers whocould nolonger complete the
curing ofthetobacco onthefarm because ofthedamage suffered (2600
curing plants were severely damaged andputoutofaction ,anda
further 2300were damaged ),delivered their tobacco inbulk asbest
they could tothenearest processing centre .
2.2 .Thelocal authorities ordered theevacuation ofdamaged farms and
asked those responsible fortheprocessing centres totake over all
the tobacco offered tothem .Frcm 23November 1980 these centres
\ accepted attheir facilities and ,warehouses allthetobacco delivered ,
making advance payments against theprice andinseme cases paying the •
norm price irrespective oftheactual value ofthetobacco andthe
state inwhich itwasdelivered .Early reports suggest that about
15000 tonnes ofleaf tobacco were collected .Deliveries were concluded
inFebruary whereas normally they begin inMarch andarecompleted at
theendofApril .This meant suspending thenormal activity ofthe
plants engaged infirst processing andmarket preparation ,since their
first concern wastoaccept thetobacco which wasdelivered tothem

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andtocarry outtheinitial curing operations normally carried outon
thefarms .Themarket preparation andbaling ofthetobacco was thus
delayed byseveral months .
2.3 .When baled ,this tobacco might beofless than normal quality ,and
there will bemarketing problems .Theresulting losses ofincome will
adversely affect thefinal settlement paid togrowers (thevast majority
ofwhcm aremanbers ofco-operatives )attheendofthemarketing
year .
2.4 .Commercially ,undertakings intheregion concerned areall ,irrespective
oftheextent ofmaterial damage totheir various installations ,faced
with serious problans which will notbesolved during asingle year .
2.5 .Theforegoing shows :
(a)theextent ofthedamage suffered bygrowers andprocessors and
thedegree towhich their income from the1980 tobacco harvest
hasbeen reduced ,orwiped out ,asaresult oftheearthquake ;
(b)theneed foremergency financial aidfrom theCormiunity forboth
growers andprocessors ;
(c)that there isadirect link between theearthquake andthefact
that marketing ofthe1980 tobacco harvest isproving difficult
orimpossible .
3.1 .Articles 1and 2ofthedraft Regulation provide forspecial financial
aidforgrowers (Article 1)andforundertakings engaged infirst
processing andmarket preparation (Article 2).
3.2 .Theaidtoproducers hasathreefold aim :
(a)tohelp maintain theincome oftobacco growers whowere adversely
affected bytheearthquake ;
(b)tohelp recreate normal conditions forgrowing ,curing andmarket
preparation onthefarm ;
(c)toprovide tobacco growers with anopportunity toadapt tomarket
requirements .

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3.3 .Theaidwill be:1ECU/kgforgrowers whose tobacco-handling facilities
have been destroyed ,payable forthequantity oftobacco frcm 1980
harvest delivered forwhich apranium certificate wasissued ;and 0.70
ECUA9 forother growers whohave suffered losses .
Forproducers whose 1980 crop wasatleast 40%destroyed ,theaidwill
bepayable for60%ofthe1979 production asindicated inthepremium
certificate .
3.4 .About 5000growers could receive aidunder this measure .
4.1 .Theaidforundertakings engaged infirst processing andmarket prepara­
tion isintended tooffset part oftheadditional costs which they
have hadtobear asaresult oftheinitial curing andmarket prepara­
tion operations carried outattheir facilities onthequantities of
tobacco harvested in1980 andcollected frcm growers because ofthe
damage totobacco-processing installations onthefarm ,where these
operations arenormally carried out .
4.2 .Since these costs cannot beentirely covered by "theCommunity ,itwould be
appropriate tofixtheflat-rate aid atalevel more orlesB corresponding
tohalf oftheamount ofthecosts ,i.e. 0,30 ECU/kg.
4.3 .Thetotal quantity oftobacco eligible fortheaidmight amount to
around 15000 tonnes .
5.1 .Article 3provides forthesuspension oftheapplication ofArticle
12aofRegulation (EEC )No727/70forundertakings engaged inthe
processing andmarket preparation oftobacco inCampania andits
immediate surroundings .
5.2 .Article 12aofRegulation (EEC )NO727/70provides that where ,fora
given variety andharvest ,thequantities oftobacco sold into inter­
vention byanundertaking exceed 25%ofthequantities treated bythat
undertaking thesurplus quantities shall bebought inataderived
intervention price minus 10% .

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5.3 .This measure will enable undertakings engaged inthefirst processing
andmarket preparation oftobacco inCampania anditsimmediate sur­
roundings toreceive thederived intervention prices fixed forthe
1980 harvest onallquantities oftobacco grown there which aresold
into intervention .
5.4 .Thesuspension ofArticle 12aisacceptable because itcomes under the
"exceptional circumstances "provided forinthebasic Regulation ;the
inclusion oftheentire region affected andallthetobacco grown
there isjustified bythefact that alltobacco undertakings have been
directly orindirectly affected bytheearthquake intheir processing
andmarketing operations .
6.Thecost ofthese measures will beborne bytheEAGGF ,Guarantee
section ,aspart ofthe1982 Budget .Thetotal maybeassessed atsane
21million ECU .

. ' Proposai forCouncil Regulation (EEC)
providing forspecial aidforrawtobacco following the
earthquake inItaly inNovember 1980 andderogating from
Article 12aofRegulation (3EC)Ho727/70
THK GUUÎÎCIL OFTHEEUROPE /LUCOÎ4MUIJITIE3 ,
Having regard totheTrea-ty establishing theEuropes-n Economic Community ,
andinparticular Articles 42and43thereof , •
Ilavi-ng regard totheproposal from theCommission ,
Having regard totheopinion oftheEuropean Parliament , 1.
Having regard totheopinion oftheEconomic andSocial Committee ,
Whereas theearthquake inItaly inNovember 1980 particularly affected
theCampania region and itsimmediate surroundings ;whereas inthat region
thegrowing ,first processing andmarket preparation oftobacco constitute
aneconomic activity ofprime importance }whereas theevents ofNovember
1980 have seriously affected thecuring ,first processing andmarket
preparation ofthetobacco from that year 'sharvest ;
Whereas thetobacco growers' production facilities were impaired bythe
earthquake ;whereas official reports ofthedamage caused bytheearthquake
have been drawn upbytheItalian authorities ;whereas thedamage has
adversely affected thecompetitiveness ofindividual orassociated growers
andwhereas ,accordingly ,they should begranted aidwith aview to
restoring normal conditions ofcompetition ;whereas,however ,inthe
interests offairness the aidshould begranted toallthose affected
anddifferentiated according tothe extent towhich their competitiveness
has been reduced ;
1
» *
Whereas alltobacco undertakings intheCampania region were directly or
indirectly affected bythe earthquake intheir processing andmarketing
operations ;whereas undertakings engaged inthefirst processing and
market preparation oftobacco inCampania and itsimmediate surroundings
were asked tocollect tobacco from growers inthe .state inwhich itwas
after theearthquake ;whereas inmost cases they have hadtocarry outon

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their premises theoperations normally carried outbythegrowers ;whereas
they have hadtohear additional costs asaresult ;whereas there should
accordingly beaflat-rate aidtocover part oftheadditional costs which
theundertakings engaged infirst processing andmarket preparation have
had tobear inthe region affected bythe earthquake ;
Whereas Article 12aofCouncil Regulation (EEC)Ho727/70of21April 1970
onthecommon organization ofthemarket inrawtobacco (l),aslast
amended bytheAct ofAccession ofGreece ,provides that where thequanti­
ties ofbaled tobacco sold into intervention byanundertaking engaged in
first processing andmarket preparation exceed ,forasingle variety and
asingle harvest ,25%oftheproduction ofthat undertaking ,they areto
bebought inatareduced intervention price ;
Whereas theearthquake hasvery
seriously affected themarketing oftobacco from theregion concerned ;
whereas under these circumstances itwould seem appropriate nottoapply
theprovisions ofArticle 12a (l)ofRegulation (EEC)No727/70>whereas
itnevertheless seems possible forthis derogation tobelimited tothe
processing oftobacco harvested intheregion ;
'Jhereas inorder toachieve thegreatest possible effect the aidshould
bepaid within avery short period after ithasbeen applied for }
HAS ADOPTED THIS REGULATION :
Article 1
1.Special aidshall begranted ,onapplication ,toIndividual orassociated
growers whose premises ortobacco-handling installations were ,
according tothe official reports drawn upbytheItalian authorities ,
damaged asaresult oftheearthquake which occurred inItaly in
November 1900 ,
(1)OJNoL94,28.4.1970 ,p.1.

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2.Theaidshallconsistofanamountforeverykilogramofleaftobacco
harvestedin1980forwhichapremiumcertificate,asprovidedfor
underArticle2(l)ofRegulation(EEC)NoI726/7O,wasissued.
associated .However,ifanindividualorUgrowerobtainsfromthe1980harvest
lessthan60$ofthequantityoftobaccoindicatedonthepremium .'
certificateissuedforthe1979harvest,theaidshallbecalculated
onthebasisof60%ofthequantityoftobaccofor1979-
Theamountofaidshallbe1ECUinthecaseofindividualorassociated
growerswhosepremisesortobacco-handling installations have'been
destroyed,and0.70ECUinothercases.
Article2
1.Specialaidshallbegranted,onapplication ,toundertakings engaged
inthefirstprocessingandmarketpreparation oftobaccolocatedin
I
theCampaniaregionintheItalianRepublicinrespectofthequantity ■
oftobaccofromtheI98Oharvestwhichtheycollectedfromtheindividual
orassociatedgrowersreferredtoinArticle1(l)after23November
1900.
2.ForthepurposesofthisRegulation,undertakings engagedinthefirst
processingandmarketpreparation oftobaccolocatedinCampaniashall
includeundertakings locatedintheimmediatesurroundings oftheregion
which'wererequestedbytheItalianauthoritiestocollecttobaccofromthe
individualorassociatedgrowers referredtoinArticle1(l).
3»Theaidshallbe0.30ECUforeverykilogramofleaftobaccocollected
inaccordancewithparagraph .1forwhiohapremiumcertificate was
issued, •
Article3
Article12a(l)ofRegulation(EEC)No727/7Oshallnotapplytothe
undertakings engagedinthefirstprocessingandmarketpreparation of-
tobaccoreferredtoinArticle2(l)and(2)inrespectoftobacco
harvestedinI98O.

Article4
ThespecialaidreferredtoinArticles1and2shall"beconsidered,for
thepurposesofthefinancingofthecommonagriculturalpolicy,asforming
partofthemeasurestostabilizeagricultural markets.
Article5
TheItalian .Republicshallberesponsibleforpayingaidunderthis
Regulationwithintwomonthsofitseeingappliedfor.
Article6
DetailedrulesfortheimplenientationofthisRegulationshallbeadopted
inaccordancewiththeprocedureprovidedforinArticle17ofRegulation
(KLJC)No727/70.
Article7
ThisRegulationshallenterintoforceonthedayofitspublication
intheOfficialJournaloftheEuropeanCommunities .
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicable
inallMemberStates..
Doneat FortheCouncil

FINANCIAL STATEMENT
Oitt t 1.10.81
heading :1Qn17011 (public storage )1901 7019 (other intervention )«PPROBIATIONS :'19817011 :41B£Cll
7019x 1mEC!I
Draft Counoil Regulation laying down special measures forrawtobacco
?.tiki rfQiiQvjjjjg theearthquake inItaly inNovember 1980andderogating from
Article 12aofRegulation 727/7°
3.ifGii BASIS : Articles 42and43oftheTreaty
4.aims orproject 1Toassist tobaooo produoers affected bytheearthquake in
November 1980 andtoenable their tobaooo tobemarketed innormal conditions
ofoompet 'ition ,
J.FJNANC IALIMPLICATIONS .
S.OIKPCN9ITURE
CHAfiGCO TOTM6 CC8UDCCT
,(HIruNDS /ZNTCUVCNTIONS )
m 1
mKUZ
1.1 «tCEiprs
owntcsoutcrs ofthecc
(lCVlt$'CU$TO "SDUTIES )
•NATIONALPERIODor12MONTHS
Storagei 0*4
Aldi 20.3
Total '2^.7
■ECUCURRENT MfiANCXAL YCAR FOLLOWING ADMNCIAL TEAR
20.7 mECU
J.0.1ESTIMATED CtPENDITURI
5.1.1 ESTIMATED RECEIPTSconcerns only onfimarketing year
9.2MTMO *OfCALCULATION
.Ν
SMJLtMHi' MAPWUftf
cnyn
*.) will future budget approbations benecessary ?
OBSERVATIONS IThis proposal wasnottaken into aooount inthis1982 draft
budget .

ANNEX
Method ofcalculation
Estimate ofquantities involved :
itisthought that themeasure will apply toCampania +10%forneighbouring
regions ,i.e. according totheItalian authorities *estimate :
14180000kgx1.10 -15600000kg.
1.Non-application ofArticle 12a
This lays down anintervention ceiling of25%ofthequantity handled by
each firm .Above this point theintervention price isreduced t}y10
Afirst assessment tgrtheItalian authorities indicates that under the
measure 1300twill notlose 10%oftheintervention price ,
giving acost of1300x2875ECU/t(average derived intervention
price )x10%=0.4mioECU .
2.Aid togrowers
0.7ECU/kgor1ECU/kgdepending ondamage
x15600000kg =15*6 mioECUmaximum
andaidtoprocessors 0.3ECU/kgx
15600000kg »4-7mioECU
20.3mio ECUmaximum
Non-application ofArticle 12awill
(Article 172of1982 draft budget ).
(Article 173of1982 draft budget ).increase expenditure tinder item 7011
Theaidistobecharged toitem 7019