Opinion on the proposal for a Council Regulation (EC) amending Council Regulation (EEC) No 3013/89 on the common organization of the market in sheepmeat and goatmeat ()

(95/C 133/05)

On 19 January 1995, the Council decided to consult the Economic and Social Committee, under Articles 43 and 198 of the Treaty establishing the European Community, on the abovementioned proposal.

The Section for Agriculture and Fisheries, which was responsible for preparing the Committee's work on the subject, adopted its Opinion on 2 March 1995. The Rapporteur was Mr Strauss.

At its 324th Plenary Session on 29 and 30 March 1995 (meeting of 29 March 1995), the Economic and Social Committee unanimously adopted the following Opinion.

1. Italian and Greek increases in quota for ewe and female goat premium

1.1. The Committee is in general agreement with the proposal.

1.2. It will be essential to ensure that the allocation of any extra individual rights should be conditional on firm proof of eligibility.

1.3. It was in part administrative confusion and the extreme complexity of the system which prevented producers from claiming ewe premiums to which the Commission now feels they were entitled. The Committee therefore believes that a retrospective payment of premium should be made for 1991 to the relevant producers in Italy and Greece who were not able to claim their full entitlement that year. Quota rights should be adjusted accordingly. Firm proof of actual ewe numbers will have to be furnished for each of the years for which an increased claim is lodged.

1.4. The Committee believes that the Commission should consider whether there is a case for increasing quota allocations to meet the legitimate demands of new entrants and producers who had embarked on investment plans before the introduction of quotas in 1993. The regulation states explicitly that the needs of such producers should be provided for by the reserve.

2. Definition of the producer

2.1. The Committee agrees with the proposal.

2.2. Considerable care will have to be taken to ensure that the greater element of flexibility in the application of quota transfer will not endanger the operation of the syphon which is necessary to ensure that the sheep sector continues to become more competitive.

Done at Brussels, 29 March 1995.

The President

of the Economic and Social Committee

Carlos FERRER

() OJ No C 382, 31. 12. 1994, p. 37.

APPENDIX to the Opinion of the Economic and Social Committee

Summary of Proposals for which the Economic and Social Committee's Opinion has been sought

The Council, in agreeing the 1994/95 price package asked the Commission to bring forward proposals on Italian and Greek problems associated with taking 1991 as a base year for allocation of premium rights and also on the transfer of rights within a partnership.

Italian and Greek increases in quota for ewe and female goat premium

Under the sheepmeat and goatmeat regime compensatory payments in the form of premiums on ewes and female goats are paid to producers. Following the 1992 CAP reform, individual quotas were introduced based on producers' claims in 1991.

The Commission proposes to increase the Italian quota allocation by up to 600,000 premium rights. This reflects the Italian authorities claim that:

- with the change in application dates between 1990 and 1991, some 140,000 applications were lost;

- errors in interpreting the Community regulations reduced the number of payments in Sardinia by 460,000 below the number of eligible ewes.

For Greece too, the Commission is proposing to increase quota by up to 600,000 premium rights. This is to reflect the underclaim of premium in 1991 which was a transition year.

Definition of the producer

When there is a transfer of premium rights, the regulation allows for a syphon of up to 15% to be levied to the national reserve. This is a particular problem where there is a high number of family partnerships. The loss of 15% of rights is considered harsh particularly when such transfers occur within such partnerships.

The Commission is now proposing to overcome such difficulties by introducing an element of flexibility which will still preserve the underlying principles of the syphon.