Proposal for a COUNCIL REGULATION extending for a period of up to one year the financing of certain quality and marketing improvement plans approved under Title IIa of Regulation (EEC) No 1035/72

(presented by the Commission)

EXPLANATORY MEMORANDUM

In 1989, Regulation (EEC) No 1035/72 (Title IIa) introduced specific measures for the nut sector, in order to make good the inadequacy of production and marketing facilities. These measures cover five products: almonds, hazelnuts, walnuts, pistachios and locust beans.

The principal measure is the financing of 10-year quality and marketing improvement plans, presented by producer organisations. Plans qualify for 55% public funding (of which EU: 45%; Member State: 10%), subject to a maximum amount per hectare. Financing of the measure is intended to be temporary and degressive in the maximum level of aid paid.

The measures were repealed by Regulation (EC) No 2200/96. However existing plans may continue to term: the last will expire in 2006.

EU expenditure on these specific measures from 1990-1999 was EUR 725 million. Expenditure for plans that have not expired is budgeted from 2000 to 2006 to be a further EUR 250 million.

A number of plans expired in 2000.

EU nut production via producer organisations (whether or not in existing plans) is eligible for other additional support measures:

- operational fund scheme of Regulation (EC) No 2200/96 (general support mechanism for fruit and vegetables),

- structural measures of Regulation (EC) No 1257/1999 (rural development plans).

However experience has now shown that these measures either were unable to be applied, or are inappropriate to provide short-term support for nut areas in plans which expire and are not eligible for further support within the budget for 2001.

As a result the Council of 17 July invited the Commission to propose that the payments to nut growers be continued within the budget for 2001 for those programmes which would otherwise expire in 2000.

In the light of the above, this draft proposes that:

- producer organisations whose plans expire in 2000 may request continued financing for a further period of up to one year,

- continued financing be requested only until 15.6.2001 latest, in order to fall within the 2001 budget,

- public aid be limited at most to those areas receiving aid in the 10th year of the plan and to a maximum of 241,50 EUR per hectare.

This draft simplifies arrangements in that producer organisations are not required to submit a new plan extension and the existing provisions in the implementing Regulation (EEC) No 2159/89 apply mutatis mutandis.

The Commission will study the situation of the nut sector in the context of the report which it will submit on the fruit and vegetables regime before the end of 2000.

Until such time, this draft provides an interim solution for those producer organisations whose improvement plans expire in 2000 and would not be within the budget for 2001.

2000/0252 (CNS)

Proposal for a COUNCIL REGULATION extending for a period of up to one year the financing of certain quality and marketing improvement plans approved under Title IIa of Regulation (EEC) No 1035/72

THE COUNCIL OF THE EUROPEAN UNION,

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

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

[1] OJ C

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

[2] OJ C

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

[3] OJ C

Whereas:

(1) Title IIa of Council Regulation (EEC) No 1035/72 of 18 May 1972, on the common organisation of the market in fruit and vegetables [4], provides for various specific measures to make good the inadequacy of production and marketing facilities for certain nuts and locust beans. Aid is provided to producer organisations which have received specific recognition and which have submitted a plan approved by the competent authority for improving the quality and the marketing of their produce.

[4] OJ L 118, 20.5.1972, p. 1. Regulation as last amended by Commission Regulation (EC) No 1363/95 (OJ L 132, 16.6.1995, p. 8).

(2) Regulation (EEC) No 1035/72 was repealed by Council Regulation (EC) No 2200/96 [5]. However, as specified by Article 53 of Regulation (EC) No 2200/96, any rights acquired by producer organisations in application of Title IIa of Regulation (EEC) No 1035/72 are maintained until exhausted.

[5] OJ L 297, 21.11.1996, p. 1. Regulation as last amended by Regulation (EC) No 1257/1999 (OJ L 160, 26.6.1999, p. 80).

(3) The specific aid granted towards the drawing up and implementation of the quality and marketing improvement plan as specified in Article 14(d)(2) of Regulation (EEC) No 1035/72 is restricted to a period of 10 years and the maximum level of aid degressive to allow a progressive shift of financial responsibility on to the producers.

(4) A number of plans expired in 2000, having completed the 10th year.

(5) Regulation (EC) No 2200/96 provides that the Commission shall send the Council a report on the operation of this Regulation. This report shall include an assessment of the results of the specific measures for nuts and locust beans carried out under Title IIa of Regulation (EEC) No 1035/72 and may provide for further support measures. Until such time, those producer organisations whose improvement plans expire in 2000, and who continue to fulfil the recognition criteria, may request continued financing of their plans within the 2001 budget.

(6) Only aid applications in respect of work carried out until 15.6.2001 qualify for financing within the 2001 budget.

(7) In order to simplify administrative procedures, aid is limited to a maximum of those areas for which an aid application was made in the 10th year of the plan.

(8) The above-mentioned period of up to one year is not sufficient to complete work of grubbing operations followed by replanting and/or varietal reconversion. The maximum aid per hectare therefore should be paid in respect of other operations as specified in Article 2(1) third subparagraph and paragraph 2 of Council Regulation (EEC) No 790/89 [6].

[6] OJ L 85, 30.3.1989, p. 6.

HAS ADOPTED THIS REGULATION:

Article 1

Recognised producer organisations engaged in the production and marketing of nuts and/or locust beans as specified in Article 14(a) of Regulation (EEC) No 1035/72 whose quality and marketing improvement plans were approved in 1990 may request continued financing of their plans for a further period of up to one year subject to the rules laid down in this regulation.

Article 2

The aid shall be paid in regard to, and limited to, those areas for which an aid application has been submitted in respect of the 10th year of the plan and is limited to a maximum of EUR 241,50 per hectare as set in Article 2(1) third subparagraph and 2(2) of Regulation (EEC) No 790/89. It shall apply for a period of up to one year immediately following the expiry of the 10th year of the plan and up to a latest date of 15.6.2001.

Requests for extended financing of a plan in accordance with Article 1 are equivalent to the acceptance by the producer organisation to apply its plan as approved for the 10th year for a further period of up to one year.

Article 3

The implementation rules applicable for the 10th year shall apply mutatis mutandis for the additional period referred to in Article 1.

Where necessary, measures shall be adopted in accordance with the procedure laid down in Article 46 of Regulation (EC) No 2200/96.

Article 4

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

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

Done at Brussels,

For the Council

The President

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