Proposal for a COUNCIL REGULATION amending Regulation (EC) No 1868/94 establishing a quota system in relation to the production of potato starch

(presented by the Commission)

EXPLANATORY MEMORANDUM

Regulation (EC) No 1868/94 establishes a quota system in relation to the production of potato starch and provides for the fixing of quotas for a period of three years, which expire at the end of the 2001/02 marketing year.

Based on the report from the Commission to the Council, this Regulation extends the current quotas for the 2002/03, 2003/04 and 2004/05 marketing years.

Under Article 3(1) of Regulation (EC) No 1868/94, on or before 31 October 2001 the Commission must present to the Council a report on the quota system, accompanied if necessary by appropriate proposals. The Commission would however like to point out that the Court of Auditors published a report on the potato and cereal starch sectors on 1 October 2001, in which it sets out a number of observations and recommendations which the Commission is studying in detail and plans to respond to. However, in view of the 31 October deadline, it has not been possible to finalise this analysis and to draw the necessary conclusions, which would have allowed the Commission to incorporate this information and probably to amend its report and proposal for a Regulation.

The Commission has also arranged for a study to evaluate the cereal starch and potato starch sector. which is still underway. The Commission expects the final report to be available in the next few months. It will also have to take this study into account once it has been published, and draw the relevant conclusions.

The Commission would also like to point out that Article 8 of Regulation (EEC) No 1766/92, as amended by Regulation (EC) No 1253/1999, stipulates that the minimum price and the payment for potato producers must be adapted in the light of the final reduction in the intervention price for cereals in accordance with the decisions taken within the framework of Agenda 2000 (mid-term review).

2001/0273 (CNS)

Proposal for a COUNCIL REGULATION amending Regulation (EC) No 1868/94 establishing a quota system in relation to the production of potato starch

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Articles 36 and 37 thereof,

Having regard to the proposal from the Commission [1],

[1] OJ C ..., ..., p. ...

Having regard to the opinion of the European Parliament [2],

[2] OJ C ..., ..., p. ...

Having regard to the opinion of the Economic and Social Committee [3],

[3] OJ C ..., ..., p. ...

Whereas:

(1) Article 2(3) of Regulation (EC) No 1868/94 [4] fixes the potato starch quotas for producer Member States for the 2000/01 and 2001/02 marketing years.

[4] OJ L 197, 30.7.1994, p. 4. Regulation as last amended by Regulation (EC) No 1252/1999 (OJ L 160, 26.6.1999, p. 15).

(2) Under Article 3(2) of Regulation (EC) No 1868/94 the quota must be allocated between producer Member States at three-yearly intervals on the basis of the report from the Commission to the Council. The quotas currently fixed for the 2001/02 marketing year should therefore be extended for three years.

(3) The Commission reserves the right to make other appropriate proposals for the potato starch quota system in the light of the report from the Court of Auditors on the starch sector and the ongoing evaluation study.

(4) Producer Member States should allocate their quotas for a period of three years between all potato starch manufacturers on the basis of the quotas for the 2001/02 marketing year.

(5) Quantities used in excess of the sub-quotas available in the 2001/02 marketing year must be deducted in the 2002/03 marketing year in accordance with Article 6(2) of Regulation (EC) No 1868/94.

(6) The amendment of Council Regulation (EEC) No 1766/92 [5] by Regulation (EC) No 1253/1999 [6] involved changes to the payment terminology in Article 8. This Regulation should therefore be brought into line with that terminology,

[5] OJ L 181, 1.7.1992, p. 21. Regulation as last amended by Regulation (EC) No 1666/2000 (OJ L 193, 29.7.2000, p. 1).

[6] OJ L 160, 26.6.1999, p. 18.

HAS ADOPTED THIS REGULATION:

Article 1

Regulation (EC) No 1868/94 is hereby amended as follows:

1. Article 2 is replaced by the following:

"Article 2

1. The following potato starch producer Member States are hereby allocated the following quotas for the 2002/03, 2003/04 and 2004/05 marketing years:

Denmark // 168 215 tonnes

Germany // 656 298 tonnes

Spain // 1 943 tonnes

France // 265 354 tonnes

Netherlands // 507 403 tonnes

Austria // 47 691 tonnes

Finland // 53 178 tonnes

Sweden // 62 066 tonnes

Total // 1 762 148 tonnes

2. Each producer Member State shall allocate the quota referred to in paragraph 1 between potato starch manufacturers for use in the 2002/03, 2003/04 and 2004/05 marketing years in proportion to the sub-quotas available to each manufacturer for the 2001/02 marketing year before application of a possible correction under Article 6(2).

The sub-quotas available for each manufacturer for the 2002/03 marketing year shall be adjusted to take account of any amount used in excess of quota during the 2001/02 marketing year in accordance with Article 6(2)."

2. Article 3 is replaced by the following:

"Article 3

1. On or before 30 September 2004, and thereafter at three-yearly intervals, the Commission shall present to the Council a report on the allocation of quota within the Community, accompanied by appropriate proposals. This report shall take account of possible changes in the payments to potato producers and of developments on the potato starch and cereal starch markets.

2. On or before 31 December 2004, and thereafter at three-yearly intervals, the Council, acting on the basis of Article 37 of the Treaty, shall allocate the quota between Member States on the basis of the report referred to in paragraph 1, for use in the following three marketing years.

3. On or before 31 January 2005, and thereafter at three-yearly intervals, Member States shall notify those concerned of the details of quota allocations for the following three marketing years."

3. Article 7 is replaced by the following:

"Article 7

The provisions of this Regulation shall not cover production of potato starch by undertakings which neither purchase potatoes which have benefited from the payment referred to in Article 8 of Regulation (EEC) No 1766/92 nor benefit from the refund referred to in Article 7 of that Regulation."

Article 2

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

It shall apply from 1 July 2002.

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

Done at Brussels,

For the Council

The President

>TABLE POSITION>