ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(73)1735
Vol.1973/0300

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COMMISSION OFTHEEUROPEANCOMMUNITIES
COM(73)1735Final
Brussels,12October1973
PROPOSAL FORA
REGULATION (EEC) OFTHECOUNCIL
onthesubsidyforoliveoil
\
(submitted ,totheCouncilbytheCommission)
COM(73)1735Final

EXPLANATORY ITEHIOR /JTIRM
Inorder toalleviate thedifficulties caused bythe application ofthe
subsidy system inItaly (whose oilproduction counts formore than 99i°
ofthetotal Community production )theCommission proposed totheCouncil
forthemarketing year 1972/1973 anewsystem providing feasicallytthat
thesubmission ofapplications forsubsidies byproducers should bedis­
continued andthat target yield documents forolives andfor oilshould
alone beused fordetermining quantities acceptable for subsidy .
TheCouncil didnotaccept this proposal ,andonthat occasion theItalian
Minister forAgriculture undertook toeffect improvements asquickly ar-
possible intheapplication ofthe system inforce ..
Following theabove undertaking ,acentral committee was setupinItalf
during themarketing year 1972/l>73 whose principal task isharmonization
ofcriteria forfixing target ,yields used byprocincial committees in
olive-growing regions .
Thecreation ofthis committee andthework accomplished byittodate
would seem toindicate that the .Italian Authorities have acknowl edged
theneed toreorganize the olive industry andtoreduce the size ofthe
problems arising from thepresent system forsupervision andthegranting
ofsubsidies .
Moreover ,theaction taken bytheItalian Authorities isonthe lines of
the proposal putforward bythe Commission inSeptember 1972 .
Indeed ,faced with theimpossibility ,duetotheuncertain book-keeping
insome 12000oilworks ,ofsupervising thequantity ofoilproduced ,the
Italian Authorities acknowledged that itwould benecessary forthe setting
upofthecentral committee toincrease "aposteriori "supervision which
applies atpresent totarget yields only .
However ,ifthis "aposteriori "supervision istohave some genuine effect
notonly should thetarget yields befixed asclosely aspossible tothe
real yields ,buttheaccuracy ofcultivation declarations should beveri­
fied andfurther enquiries should bemade with somrigour ,resulting in
arefusal topaythe subsidy andtheexercising ofsanctions against the
wrongdoers indoubtful cases .

Intheseconditions,theCommissionbelievesthatthesystematpresent
inforcecould "bemaintainedforafurtheryear.Inorder,however,that
theactiontakenbytheItalianAuthorities mightproducepositivere­
sultsthesystemmust"bemodifiedasindicatedin2above.
Also,thisproposalincludescertainamendmentsandannexestotheRegu­
lationinforcewhicharebasicallyasfollo>;ss
-thedeletionofallreferencestobook-keeping inoilworksasaprin­
cipalmeansofsupervisingthequantitesofoilproduced.Indeed,consi­
dering "thepraticalimpossibility inItalyofsupervisingthebook-kee-
pingoftheoilwotksinquestion,retentionofthisprovisionwould
seemtohinderratherthrnhelptheworkofthesupervisorybodies.
TThedeletionofthisprovisiondoesnotmeanthattheoilworkswill
notbesupervisedinordertoverifythequantitiesproducedwherethis
'ispossible.
-theestablishment ofproducers *organizations tosimplifysupervision
andthegrantingofsubsidies.Thisnewprovisionpointstogreater
participation andresponsibility fortheproducersconcernedinthe
subsidiesforoliveoil.Consequently ,itshouldsatisfythefrequently
expresseddemandsofthepartiesinquestion.

DRAFTPROPOSAL FORA
REGULATION' (ESC)Ho.OFTHECOUNCIL
of
onthesubsidyforoliveoil
TEHCOUNCILOFTHEEUROPEANCGKMUNITIES ,
HavingregardtoCouncilRegulationNo.136/66/SEC"''of22September1$66
ontheestablishment ofacommonorganization ofthemarketinoilsand
fats,as;lastamendedbyRegulation(]£EC)No.1707/73andinparticular
Article10(2)thereof?
HavingregardtoCouncilRegulationNo.l62/66/EEC^of27October1966on
tradeinoilsandfatsbetweentheCommunityandGreece,andinparticular
Article8thereof;
HavingregardtotheproposalfromtheCommission ?
Whereastheprinciplesmustbelaiddomunderwhichthesubsidyreferred
toinArticle10ofRegulationNoI36/66/EECwillbegrantedtooliveoil
producersforthe1973/74marketingyear;wherea.s,moreover,measuresshould
beadoptedtoensurethatthesubsidyisgrantedonlyforoliveoilproduced
intheCommunityfromolivesharvestedintheCommunity,andinrespectofwhich
thesubsidyhasnotalreadybeengranted?
Whereas,toensuretheproperworkingofthesubsidysystem,thesubsidy
shouldbegrantedonlyforquantitiesofoilinrespectofwhichapplica­
tionsaresubmittedwithinproducingMemberStates?whereas,inorderto
simplifytheapplicationofthesystem,thenumberofapplications forsub­
sidywhichcanbemadeduringthemarketingyearshouldbelimited?
Whereas,thesubsidyinquestionisofconsidrable importanceforproducers
andconstitutes afinancialburdenfortheCommunity ?whereas,toensure
thatthesubsidyi3grantedonlyforsuchoila.sgivesentitlementthereto,
provisionshouldbemadeforasystemofddministrative supervisiontocheck
thatthequantitiesofoilinrespectofwhichapplications forthe:subsidyare
ma.deareconsistentwhiththepotentialproductionofolivesandoilduring
themarketingyearinquestionandwiththequantitiesoftheproductsfrom
whichtheoilisextractedandthequantitiesofoilactuallyproduced ?
■"•OJNo172,30September1966,p.3025/66
OJNoL175»29June1973,p.5
30JNo197,29October1966,p.3393/66

v'horoastoassurethisconsistency suchsupervisionshould "be"basedinpar­
ticularonasystemofcultivationdeclarations ;whereas,toensuretheproper
workingofthesupervision system,theaccuracyofthesaidcultivationdecla­
rationsshouldbeverifiedbytheMemberStates;
Whereas,however,tosimplifytheapplicationofthesubsidycystemtoolive-
residueoil,provisionshouldbema3eforthedetermination ofthequantity
ofsuchoilwhichwillbeacceptedforthesubsidytobeeffectedonthobasis
oftheproductionofoilbyextraction;
Whereas,producers'organizations shouldbesetupinordertosimplifythe
subsidysystem;whereastheminimumconditionstobesatisfiedbytheorgani­
zationsbeforetheyarerecognizedbytheMemberStatesshouldbelaiddown;
HASADOPTEDTHISREGULATION :

Article1
Fortje1973/74marketingyear,,thesubsidyreferredtoinArticle10ofRe­
gulationNo136/66/EECshallbegrantedinrespectofoliveoilfallingwithin
thedefinitionscontainedunter1and4oftheAnnextothatRegulation.
Article2
Beforeadatetobespecifiedeachproducerofoliveswhicharetobeusedm
theproductionofoilshallsubmitacultivationdeclarationforeachofthe
areascoveredbyArticle5(2);suchdeclaration,inadditiontogivingthe
necessarydetailsconcerningtheolivetreessothatthesubsidymaybefixed,
shallincludes.statementfromtheproducerthathehascarriedouttheneces­
sary'fieldworkandthathepickstheolivesregularly.
1.Thesubsidyshallbegranteduponapplicationtobemadebythepersons
concernedintheMemberitatesinwhichtheoilwasproduced.
2.InrespectofeachoftheareasreferredtoinArticle5(2),onlyoneappli­
cationforthesubsidymaybesubmitted,beforeadrtetobedetermined ,
byeachproducerwhohassubmittedacultivationdeclaration .
Article4
1.EachproducingMemberStateshallsetupasystemofadministrative super­
visiontoensurethattheproductsinrespectofwhichapplications are
madeforthesubsidyareproductswhichgiveentitlementthereto.
2.Asregardsthetypeofoilreferredtounderpoint1oftheAnnextoRagu-
•1ationNo.136/66/SEC,thesupervisionmust,inparticularyincludeacheck
thatthequantityofoliveoilinrespectofwhichanapplicationismade
forthesubsidybythepersonconcernedisconsistentwith:
(a)thequantityofolivesharvestedwithintheCommunityandusedforthe
productionofsuchoil,. . ,
(b)theactualquantityofoliveoilproduced,
(c)thepotentialproductionofolivesandoilduringthemarketingyear
inquestion.
3.Asregardsthetypeofoilreferredtounder.4oftheAnnextoRegulation
No.136/66/EEC,theFrenchauthoritiesmust,inparticular,chackthatthe
competentquantityofoliveresidueinrespectofwhichanapplicationis
madeforthesubsidybyapersonconcernedisconsistentwith:

(a)thequantityofoliveresidueobtainedfromolivesharvestedwithin
theCommunityandusedfortheproductionofsuchoil,
(b)theactualquantityofoliveresidueoilproduced.
4.Withrespecttotheoilreferredtounder4oftheAnnextoRegulation Ho.
136/66/EEC,thecompetentItalianauthoritiesshalldeterminethequantity
ofthisoilforwhichthesubsidymaybegranted,onthebasisoftheoil
productionreferred ,tounderpoint1oftheAnnextotheaforementioned
Regulation .
1.Consistency betweenthequantityofoilinrespectofwhichthesubsidy-
isappliedforandthepotentialproductionreferredtoinArticle4(2)(c)
shallbeverifiedbycheckingtheinformationcontainedinthecultivation
declarations againstthetargetyieldsreferredtoinparagraph 2.
2.Targetyieldsforolivesandforoilshallbesetforeachproductionarea
inaccordancewithcriteriatobedetermined bybodiesdesignatedforthe
purposebytheproducingMemberStates.
Article6
TheproducingMemberStatesshall:
-makeon-the-spotchecksastotheaccuracyofcultivationdeclarations .
Thesechecksshallrelatetoapercentagetobefixedbyreferencetothe
sizeofthefarm5
-comparetheinformationgiveninthecultivationdeclarationforthe1973/74
marketingyearwiththeinformationcontainedintheoilregisteror,ifthi
isnotavailable,inthelastcultivp,tiondeclarationsubmittedbyeachper­
sonconcerned .
Article7
1.ForthepurposesofthisRegulation,MemberStatesmaytreatarecognized
producers'organisation asasingleproducer.
2.ForthisRegulation,"producers'organization "meansanyrecognizedorgan­
izationofproducersofolivesandoilestablished ontheiro'-ninitiative
whichundertakesinparticular :

-5-
-tosupervise,forthepurposesofthegrantingofthesubsidyinaccor­
dancewiththisRegulation,theproduction "byitsmembersofolivesand
ofoilf
-tosubmitasingleapplicationforthesubsidyandasinglecultivation
declaration onbehalfofallitsmembers,afterthecontrolreferred
toabovej
-toreceivethesubsidyonbehalfofitsmembersandtodistributeit
amongtheminrespectoftheproductionofeachmemberwhichhasbeen
recognizedbythecompetentcontrolorgmizations .
TheMemberStatesshallcommunicatetotheCommission,beforetheybecome
applicable ,allprovisionsadoptedbytheminpursuanceofthisRegulation.
Shouldtheprovisionsinquestionnotbeapttoenabletheobjectivesof
thisRegulationtobeatteined,adecisionwillbetaken,inaccordanceifith
theprocedurelaiddowninArticle38ofRegulationNo.136/66/EEC,astothe
amendmentswhichshouldbemadetheretobytheMemberStateconcerned.
ThisRegulationshallenterintoforceon1November1973.
ThisRegulationshallbebindinginiisentiretyanddirectlyapplicablein
allMemberStates.Article8
DoneatBrussels, FortheCouncil
ThePresident