Proposal for a COUNCIL REGULATION amending Regulation (EC) No 1453/2001 introducing specific measures for certain agricultural products for the Azores and Madeira and repealing Regulation (EEC) No 1600/92 (POSEIMA) with respect to the application of the supplementary levy in the milk and milk products sector in the Azores

(presented by the Commission)

EXPLANATORY MEMORANDUM

Milk is the main resource associated with agricultural activity in the Azores. The milk sector offers a secure income, and finding viable alternative activities rapidly would be difficult. In 1999/2000 the level of production stood at 500 000 tonnes and in 2002/03 considerably exceeded that, reaching 522 500 tonnes.

Beyond that level, there is a danger of disturbance to the overall balance of the agricultural markets in the Azores and the protection of the environment. Milk production should be stabilised therefore and the producers concerned given the opportunity of adapting to the control mechanism which quotas represent.

In 2002/03, the quota for producers established in the Azores was nearly 450 000 tonnes. Under the political agreement reached in Luxembourg on 26 June 2003 it was decided to allocate to them an additional quota of 50 000 tonnes from the 2005/06 marketing year as part of the quota arrangements, which were extended to 2014/15.

The production target which has now been assigned to producers in the Azores is 500 000 tonnes. To comply with it, they will need a longer period of adjustment.

The specific measure provided for in Article 23 of Council Regulation (EC) No 1453/2001 (POSEIMA) could meet that aim.

The extension takes place against the background of the political agreement of June 2003, in which it was decided to prolong the application of this measure up to the 2004/05 marketing year and provide for a phased reduction.

In order to lessen this impact, it is proposed to prolong the specific measure.

This matter is going to be raised at the forthcoming meeting on 16 and 17 October 2003 of the European Council, which in all likelihood is going to state that it is in favour of extending the special arrangements for producers in the Azores.

This proposal gives substance to those policy directives.

2003/0244 (CNS)

Proposal for a COUNCIL REGULATION amending Regulation (EC) No 1453/2001 introducing specific measures for certain agricultural products for the Azores and Madeira and repealing Regulation (EEC) No 1600/92 (POSEIMA) with respect to the application of the supplementary levy in the milk and milk products sector in the Azores

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 299(2) 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. ...

Whereas:

(1) Article 23 of Council Regulation (EC) No 1453/2001 [3] introduced for a period of four marketing years beginning in 1999/2000 a derogation from certain provisions of Council Regulation (ECC) No 3950/92 of 28 December 1992 establishing an additional levy in the milk and milk products sector [4] as regards the Azores. Regulation (EC) N° .../2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers [5] has amended Article 23 of Regulation (EC) No 1453/2001 in order to extend the aforementioned period to six marketing years and has fixed the amounts of that extension.

[3] OJ L 198, 21.7.2001, p. 26. Regulation as last amended by Regulation (EC) No .../2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers (not yet published in the OJ).

[4] OJ L 405, 31.12.1992, p. 1. Regulation last amended by regulation (EC) No.../2003.

[5] Not yet published in the OJ.

(2) However, restructuring of the milk sector in the Azores has not yet been achieved. In order to take account of the high level of dependence on milk production in the Azores, combined with other handicaps linked to their outermost location and the absence of viable alternative production, the relevant period should be extended and the amounts of this further extension fixed.

(3) This measure is restricted to milk producers in the Azores. Over the period of its application, this measure should enable the sector in the Azores to continue being restructured without interfering with the milk market and without appreciably affecting the sound working of the levy scheme at the Portuguese or Community level.

HAS ADOPTED THIS REGULATION:

Article 1

Article 23 of Council Regulation (EC) No 1453/2001 shall be replaced by the following:

"Article 23

1. As from marketing year 1999/2000, for the purposes of sharing the additional levy between the producers referred to in the second sentence of Article 2(1) of Regulation (EEC) No 3950/92, only producers as defined in Article 9(c) of that Regulation, established and producing in the Azores, who market quantities exceeding their reference quantity increased by the percentage referred to in the third subparagraph shall be deemed to have contributed to the overrun.

The additional levy shall be due on quantities exceeding the increased reference quantity after reallocation of the unused quantities within the margin resulting from this increase among the producers referred to in the first paragraph and in proportion to the reference quantity available to each producer.

The percentage referred to in the first paragraph shall be equal to the ratio between the quantities respectively of 73 000 tonnes for the period 1999/2000 to 2004/05 and 23 000 tonnes as from marketing year 2005/06 and the total of the reference quantities available on each holding on 31 March 2000. It shall apply for each producer only to the reference quantities available to that producer on 31 March 2000.

2. The quantities of milk or milk equivalent marketed which exceed the reference quantities but which comply with the percentage referred to in paragraph 1 of this Article, after the reallocation referred to in that same paragraph, shall not be taken into account in establishing any overrun in Portugal as calculated in accordance with the first sentence of Article 2(1) of Regulation (EEC) No 3950/92."

Article 2

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

It shall apply as from 1 April 2003.

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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