ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(74)2207
Vol.1974/0372

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(74)2207final
Brussels,20December1974
NOTPORPUBLICATION
COMMISSION OPINION
of20December1974
on"thedraftschemesforimplementing Article12of
DirectiveNo72/159/EEOof17April1972notifiedby
theUnitedKingdomGovernment
COM(74)2207final

COMMISS ION OPINIONWH«W WWIWHWWWIWHIIWKW
of20December 1974
onthedraft schemes forimplementing Article 12of
Directive No72/159/EECof17April 1972notified by
theUnited Kingdom Government
On9,October 1974 theUnited Kingdom Government submitted thefollowing
schemes pursuant toArtiole 17(0ofCouncil Direotive No72/159/EECof
17April 1972 onthemodernisation offarms I
-Draft scheme toimplement Article 12ofDirective 72/159/EEC
-Agricultural andHorticultural Co-operation Scheme 1971 (Statutory -
instrument (1971 )No415)
After consulting theStanding Committee onAgricultural Structure (81st
meeting ,3December 1974 )»theCommission hereby delivers ,pursuant to
Article 17(3 )ofDirective No72/159/EEC ^thefollowing Opinion onthe
schemes submitted t
Thedraft scheme toimplement Artiole 12ofDirective No72/159/EEC ,which
widens the scope oftheAgricultural andHorticultural Co-operation Scheme
torecognized groups offarmers within themeaning ofArticle 12ofthe
Directive andprovides forthe grant ofalaunohing aid togroups ofthis
kind ,gives nocause forspecial comments .
However ,theCommission draws attention tothefollowing points 1
Under paragraph 4ofthedraft ,grants will bepaid towards theactual
costs ofitems ofaformation andmanagerial nature .These grants also
oover "salaries andexpenses ofmanagerial andother keystaff butexclud­
ingstaff engaged intheactual production activities ".
V

-2-
Ontheoccasionoftheconsultation oftheStandingCommitteeonAgricultural
Structure f.theUnitedKingdomdel-elationdeclaredthatallcosts,including
staffcostsarisingfromtheformationofthegroupitself,wouldqualifyfor
aid.
Article12readwithArticle19ofDirectiveNo72/159/®SCrequiresthe
CommunitytocontributetothecostsoflaunchingaidswhichMemberStates
granttothegroupsdescribedinArticle12tocovertheirmanagementcosts.
Heremanagementcostsmeansuchoostsasariseoutoftheformationandexis­
tenceofthegroupassuch,andthusbytheirnaturecannotbeattributedto
anindividualfarm.Managementcostsinthissensemayinprinciplealsobe
staffcosts,iftheseinvolvestaffengagedinworkwhichalsoisonly
attributable togroups,asforexampleinthecaseofarrangements forthe
sharingoflabourormachinery.Ontheotherhand,workwhichbyitsnatureiB
alsocarriedoutonindividualfarmscannotberegardedaspartofthe
managementofthegroupwithinthemeaningofArticle12oftheDirective,so
thathereafinancialcontribution bytheCommunitycannotbeenvisaged,as
forexampleinthecaseofthedirectionormanagementofajointlyoperated
productionunit(e.g.managementofjointlivestockaccommodationfacilities).
Conclusion
Followingtheexaminationofthetextsforwardedforthepurposeofdetermining
whethertheycomplywithArticle12ofDirectiveNo72/l59/EECandhaving
regardtotheobjectivesofthisDirectiveandtotheneedforaproperconnection
betweenthevariousmeasures,theCommissionhasreachedtheconclusionthat
theschemetoimplementArticle12ofthesaidDirectiveproposedinthe
UnitedKingdomsatisfiestheconditionsforfinancialcontribution bythe
I
Community. I
i
(
Don®atBrusBels,20December1974
»
FortheCommission
ThePresident
Franc©is-Xavier ORTOLI
N