Proposal for a COUNCIL REGULATION amending Regulation (EEC) No 3950/92 establishing an additional levy in the milk and milk products sector

(presented by the Commission)

EXPLANATORY MEMORANDUM

1. Introduction

On 29 November 2000 the Commission presented its proposals (COM(2000) 791 final) on the agricultural side of the POSEI / outermost region arrangements, including POSEIMA for the Azores and Madeira. In line with Article 299(2) of the Treaty the purpose of the POSEI measures is to take more effective account of the specific features of the outermost regions.

Parliament issued its opinion on 14 June 2001 and the Council formally adopted the Regulations on 28 June 2001.

2. POSEI agriculture

Agricultural production in the outermost regions benefits from full application of the CAP through the common market organisations and also from specific measures.

The agricultural strand of POSEI is a response to permanent handicaps (mountain topography, particular climatic features, great remoteness, small farm sizes) and to specific constraints (small-scale economies, dependence, very high production costs).

Financed by EAGGF Guarantee, it comprises two types of measure: specific supply arrangements and specific local production measures.

3. POSEIMA additional levy arrangement

When the POSEIMA proposal was discussed in the Council Portugal requested that, in order to permit the maintenance of traditional dairy farming in Madeira, Council Regulation (EEC) No 3950/92 of 28 December 1992 establishing an additional levy in the milk and milk products sector [1] should not apply to milk production there. That Regulation sets the reference quantities applicable in each Member State.

[1] OJ L 405, 31.12.1992, p. 1.

The need for an ongoing incentive to local production justifies non-application of the Regulation to Madeira. The exemption is to be restricted to 4 000 tonnes: the 2 000 tonnes of present production plus a further 2 000 tonnes estimated as the maximum reasonable production increase.

Article 15(3) of Council Regulation (EC) No 1453/2001 introducing specific measures for certain agricultural products for the Azores and Madeira and repealing Regulation (EC) No 1600/92 (POSEIMA) [2] therefore specifies that Regulation (EEC) No 3950/92 is not to apply to Madeira within the limit of local production:

[2] OJ L 198, 21.7.2001, p. 26.

"3. The additional levy scheme applicable to producers of cow's milk provided for in Regulation (EEC) No 3950/921 shall not apply in Madeira, within the limit of local production of 4 000 tonnes of milk. ...

1 Council Regulation (EEC) No 3950/92 of 28 December 1992 establishing an additional levy in the milk and milk products sector (OJ L 405, 31.12.1992, p. 1). Regulation as last amended by Commission Regulation (EC) No 603/2001 (OJ L 89, 29.3.2001, p. 18)".

4. Present proposal to amend regulation (EEC) No 3950/92

Introduction of this specific POSEIMA measure must not affect application of the levy scheme in the rest of Portugal. The Council in a statement entered in the minutes of its meeting on 28 June 2001, requested the Commission to propose an amendment of Regulation (EEC) No 3950/92:

"As regards exemption of Madeira from the milk sector levy, the Council requests the Commission to submit, as soon as possible, a proposal for the amendment of Regulation (EEC) No 3950/92 establishing an additional levy in the milk and milk products sector."

The impact of exemption must be restricted to producers in Madeira. The reference quantity for Portugal should be reduced by the amount of it at present available to producers in Madeira. The Annex to the Regulation needs amendment accordingly.

There will be no disturbance to application of the common agricultural policy.

Whenever the objective of the present proposal is reached, the Commission shall examine, in the light of the evolution of the local production, the relevant Community legislation and undertake, where appropriate, the necessary steps to continue the objectives of the common agricultural policy and Council Regulation (EC) No 1453/2001 to be achieved.

2002/0135 (CNS)

Proposal for a COUNCIL REGULATION amending Regulation (EEC) No 3950/92 establishing an additional levy in the milk and milk products sector

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 [3],

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

Having regard to the opinion of the European Parliament [4],

[4] OJ C ..., ..., p. ...

Whereas:

(1) In order to permit the maintenance of traditional dairy farming in Madeira, Council Regulation (EC) No 1453/2001 of 28 June 2001 introducing specific measures for certain agricultural products for the Azores and Madeira and repealing Regulation (EEC) No 1600/92 (POSEIMA) [5] stipulates that Council Regulation (EEC) No 3950/92 [6] is not, within the limit of local production, to apply to Madeira.

[5] OJ L 198, 21.7.2001, p. 26.

[6] OJ L 405, 31.12.1992, p. 1. Regulation as last amended by Commission Regulation (EC) No 603/2001 (OJ L 89, 29.3.2001, p. 18).

(2) Regulation (EEC) No 3950/92 sets the reference quantities applicable in each Member State. The exemption must not affect application of the levy arrangements in Portugal. The reference quantity for Portugal should therefore be reduced by an amount equal to that of the quantities available to producers in Madeira that were used in determining it. The Annex to the Regulation is amended accordingly,

HAS ADOPTED THIS REGULATION:

Article 1

The Annex to Regulation (EEC) No 3950/92 is replaced by the Annex to this Regulation.

Article 2

This Regulation shall enter into force on the 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

ANNEX

a) Total reference quantities (Article 3(2)) applicable from 1 April 2000 to 31 March 2001

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b) Total reference quantities (Article 3(2)) applicable from 1 April 2001 to 31 March 2002

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c) Total reference quantities (Article 3(2)) applicable from 1 April 2002 to 31 March 2005

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d) Total reference quantities (Article 3(2)) applicable from 1 April 2005 to 31 March 2006

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e) Total reference quantities (Article 3(2)) applicable from 1 April 2006 to 31 March 2007

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f) Total reference quantities (Article 3(2)) applicable from 1 April 2007 to 31 March 2008

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