7.3.77 Official  Journal  of the European  Communities No C 56/31 
5. Since  the charge  is so low,  it will  not  affect  trade  in oil seeds  and  vegetable  fats  between 
non-Member  States  and  the  Community.  On  the  contrary,  the developing  countries  and  the 
USA,  which  supply  the Community  with  oil seeds,  oleaginous  fruit  and  vegetable  fats,  should 
have  a keen  interest  in a healthy  EEC  milk  market.  Most  of the  oil seeds  imported  into  the 
Community  are  used  to make  feedingstuffs,  which  in turn  are fed mainly  to dairy  cattle.  To 
this extent,  the market  prospects  for oil seeds  in the Community  depend  on the  earnings  of 
EEC  dairy  producers. 
6. The  measure  must  also  be considered  in the light  of the fact  that  the United  States  places 
barriers  in the way  of dairy  imports  from  the Community  and  even  makes  some  imports  in 
this sector  impossible.' 
Opinion  on the proposal  for a Council  Regulation  on a co-responsibility  levy  and  measures 
for expanding  markets  in the  milk  and  milk  products  sector 
The text  referred  to the  Committee  has  been  published  in Official  Journal  of the 
European  Communities  No  C 270  of 16 November  1976,  page  2. 
On 19  October  1976,  the  Council  referred  the  abovementioned  proposal  to the 
Economic  and  Social  Committee  in accordance  with  Article  198  of the  Treaty 
establishing  the European  Economic  Community. 
B. OPINION  OF THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  prepared  its opinion  on the above  matter  at its 
143rd  plenary  session,  held  in Brussels  on 24 and  25 November  1976. 
The full  text  of the opinion  is as follows: 
Having  regard  to  the  Treaty  establishing  the  }n  the milk  market  (1), 
European  Economic  Community,  and  in particular 
Article  198  thereof, A. LEGAL  BASIS  FOR  THE  OPINION 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, Having  regard  to its earlier  work  on milk  and  dairy 
products,  and  in  particular  its  opinion  of 
30 September  1976  on the  action  programme  (1977 
to 1980)  ifor  the progressive  achievement  of balance 
Having  regard  to the  oral  report  made  by  the 
rapporteur,  Mr Bourel, 
Having  regard  to the  request  for  an opinion  made 
by the  Council  of the  European  Communities  on 
19 October  1976, Having  regard  to the  opinion  issued  by the Section 
for Agriculture  on 18 November  1976, 
Having  regard  to the decision  taken  by its Bureau  on 
26 October  1976  instructing  the Section  for Agricul-
ture to draw  up an opinion  on the matter, (i) OJ  No C 285,  2. 12. 1976. 
No C 56/32 Official  Journal  of the European  Communities- 7. 3. 77 
Having  regard  to the  discussions  at its 143rd  plenary 
session  held  on 24 and  25 November  1976  (meeting 
of 24 November  1976), 
HAS  ADOPTED  THE  FOLLOWING  OPINION 
by 44 votes  to 29, with  19 abstentions: 
The Economic  and  Social  Committee  has  the  follow-
ing comments  to make  on the proposal: 
1. First  of all,  the  Committee  wishes  to point  out 
that it has  repeatedly  expressed  its support  for  the 
principle  of making  producers  share  in the  cost  of 
structural  surpluses.  In its opinion  of 30 September 
1976  on the  action  programme  (1977  to 1980)  for 
the progressive  achievement  of balance  in the  milk 
market,  the  Committee  set  out  a number  of 
conditions  that  would  have  to be fulfilled  before  the 
co-responsibility  levy  scheme  could  be accepted. 
It has  to be asked  whether  the  present  proposal 
conforms  to the Committee's  recommendations. 
2. The  co-responsibility  levy 
2.1. The  Commission  proposal  does  not: 
— evaluate  the  impact  of the  drought  on the  milk 
sector, 
— deal  with  the  question  of financial  responsibility 
for the cost  of disposing  of existing  stocks, 
— set  up consultation  machinery, 
— analyse  the  impact  of the  co-responsibility  levy 
on the  income  of milk  producers  (as  it results 
from  the price  policy). 
2.2. Moreover,  the Committee  points  out  that  proof 
of the  real  existence  of a common  market  (if not  in 
milk  products,  at least  in milk  as a raw  material)  can 
no more  be adduced  from  the proposal  under  review 
than  from  the  action  programme.  The  Commission 
would  have  carried  more  conviction  if it had  set out 
to promote  the  free  circulation  of these  products  in 
the nine  Member  States. 3. The  size  of the  levy  (Article  2) 
3.1. The  Commission  proposes  that  the  levy  should 
never  be less  than  2%  or more  than  4%  of the target 
price  for milk.  A figure  of 2-5%  is proposed  for  the 
1977/78  milk  year.  Finally,  it is proposed  that  the 
Council  should  be able  to alter  the  amount  of the 
levy in the course  of any  market  year. 
3.2. The  Economic  and  Social  Committee  has  called 
for overall  prior  consultation  procedures  and 
involvement  of interested  parties  in implementing  the 
Commission  proposals.  The  relevant  arrangements 
should  be  clarified.  In  addition,  the  following 
questions  require  answers:  what  basis  will  be used 
to gauge  the impact  which  a 2-5%  levy  will  have  on 
producers'  incomes?  How  will  the  levy  tie in with 
the milk  product  prices  laid  down  for  the  1977/78 
marketing  year? 
4. Expansion  of markets  (Article  5) 
4.1. According  to Article  5 (1),  it is the Management 
Committee  for Milk  and  Milk  Products  which  would 
promote  meaures  to expand  outlets,  'in so far  as 
they do not  entail  for  the  Community  expenditure 
exceeding  the  income  from  the  levies  payable  under 
the Regulation'.  The  Committee  considers  that 
Article  5 (1)  does  not  set  a ceiling  on spending;  it 
should  be  possible  to  disburse  additional  sums 
through  different  procedures,  if the  need  arises.  The 
position  in this  respect  should  be clarified  by the 
Commission. 
5. Expansion  of markets  outside  the  Community 
(Article  5 (2) (b)) 
5.1. 'The  granting  of contributions  to programmes 
encouraging  the  supply  of  milk  products  to 
developing  countries'  is yet  another  expedient  for 
getting  rid  of surpluses.  The  Economic  and  Social 
Committee  had  in the past  urged  Aat: 
— the  overall  Community  budget  must  provide  for 
an overall  food-aid  programme, 
— the  expansion  of markets  outside  the Community, 
particularly  in the  field  of milk  products,  must 
be regarded  as one  of the  aspects  of an authentic, 
overall  trade  policy. 
6. Conclusions 
6.1. The  Committee  is sorry  that  the  Commission 
did not  think  fit to make  allowance  in its present 
7. 3. 77 Official  Journal  of the European  Communities No C 56/33 
proposal  for  a Regulation  for  the  guidelines  and 
observations  made  by the  Committee  with  regard  to 
co-responsibility  levies.  The  Committee  continues  to 
believe  that  its opinion  thereon  is still  valid  and  the 
Commission  and  the  Council  are  urged  to take  heed 
of it. 
6.2. Nevertheless,  generally  speaking,  the Committee 
shares  the  eagerness  of the Commission  to see balance 
progressively  restored  in the  milk  market.  More 
specifically,  the  Committee  has  the  impression  that 
this undoubtedly  difficult  objective  can  be achieved 
only  after  there  has  been  a wide-ranging  analysis 
covering  such  questions  as the  interdependence  be-tween:  (a) animal  and  vegetable  fats;  (b) animal  and 
vegetable  proteins. 
6.3. In view  of the  factors  involved  in fixing  rhe 
level  of a co-responsibility  levy,  the  Committee 
considers  chat  the  information  at its  disposal  is 
inadequate.  It cannot  therefore  say  what  level  should 
be fixed. 
Done  at Brussels,  24 November  1976. 
The Chairman 
of the Economic  and  Social  Committee 
Basil  de FERRANTI 
ANNEX 
to the  opinion  of the Economic  and  Social  Committee 
The following  amendments  were  rejected: 
Paragraph  6.2. 
First  sentence  unchanged.  Rest  of paragraph  to read: 
'It therefore  agrees  with  the  Commission's  proposal  to set the  levy  for  the  1977/78  milk  year 
at 2-5°/o  of the  target  price.' 
Paragraph  6.3. 
Delete. 
Reason 
Support  for the Commission's  proposal. 
Voting 
For : 12, against:  57, abstentions  : 15.