98/0107 (CNS) Proposal for a COUNCIL REGULATION (EC) No . . .

of . . .

amending Regulation (EEC) No 1766/92 on the common organisation of the market of cereals and repealing Regulation (EEC) No 2731/75 fixing standard qualities for common wheat, rye, barley, maize and durum wheat (98/C 170/01)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 43 thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament,

Having regard to the opinion of the Economic and Social Committee,

Whereas after the 1992 reform of the common agricultural policy, there has been a particular improvement in market balances;

Whereas set-aside under the support system for producers of certain arable crops introduced in 1992 in addition to a lowering of the intervention price, has helped to keep production under control, while increased price competitiveness has allowed significant additional cereals quantities to be used on the domestic market, mainly for animal feed;

Whereas, subject to increases of area payments under the arable crops support system as laid down in Council Regulation (EC) No . . ., to reinforce the effect of the 1992 reform, price competitiveness should be strengthened by a further cut in the intervention price, bringing it down at one step to a safety-net level;

Whereas intervention should no longer be a major factor on the internal market; whereas in the light of this new role of intervention, the system of monthly increments should be discontinued;

Whereas the provisions of standard quality have no longer any practical relevance and should, therefore, be withdrawn;

Whereas since the non-cereal starch price and compensation arrangements have always been governed by the common organisation of the market in cereals, the adjustment of those arrangements should follow the measures taken for cereals; that the minimum price for potatoes intended for the manufacture of potato starch and the payments for producers of such potatoes should, therefore, be adapted in line with the price reduction for cereals;

Whereas tariff quotas resulting from agreements concluded in accordance with Article 228 of the Treaty or from any other act of the Council should be opened and administered by the Commission on the basis of detailed rules;

Whereas, taking into account the influence of the world market price on the internal price, the conditions for application, by the Commission, of the necessary measures to stabilise the internal market should be clarified,

HAS ADOPTED THIS REGULATION:

Article 1

Regulation (EEC) No 1766/92 is hereby amended as follows

1. Article 1(2) shall be replaced by the following text:

'2. This Regulation shall apply notwithstanding the measures provided for by Regulation (EC) No . . . on support for arable farmers.`

2. Article 3 shall be replaced by the following:

'Article 3

1. An intervention price for cereals subject to intervention shall be fixed at ECU 95,35 per tonne.

2. The intervention price shall refer to the wholesale stage for goods delivered to the warehouse, before unloading. It shall be valid for all Community intervention centres designated for each cereal.

3. The prices fixed in this Regulation may be changed in the light of developments in production and the markets in accordance with the procedure laid down in Article 43(2) of the Treaty.`

3. Article 8 shall be replaced by the following:

'Article 8

1. A minimum price for potatoes intended for the manufacture of potato starch shall be set at ECU 167,82.

This price applies to the quantity of potatoes, delivered to the factory, which is needed for making one tonne of starch.

2. A system of payments is established for producers of potatoes intended for the manufacture of potato starch. The amount of the payment applies to the quantity of potatoes needed for making one tonne of starch. It shall be set at ECU 105,60.

The payment shall be paid only in respect of the quantity of potatoes covered by a cultivation contract between the potato producer and the starch manufacturer within the limit of the quota allocated to such undertaking, as referred to in Article 2(2) of Council Regulation (EC) No 1868/94 (1).

3. The minimum price and the payment shall be adjusted according to the starch content of the potatoes.

4. If the situation on the potato starch market makes it necessary, the Council shall adopt the appropriate measures in accordance with the procedure laid down in Article 43(2) of the Treaty.

5. The Commission shall adopt the detailed rules for applying this Article following the procedure laid down in Article 23.

(1) Council Regulation of 27 July 1994 establishing a quota system in relation to the production of potato starch, OJ L 197, 30.7.1994, p. 4. Regulation as last amended by Council Regulation (EC) No 1863/95, OJ L 179, 29.7.1995, p. 1, corrected by OJ L 83, 2.4.1995, p. 20 and OJ L 39, 8.2.1997, p. 23.`

4. Article 12(1) shall be replaced by the following text:

'1. Tariff quotas for the products listed in Article 1 resulting from agreements concluded in accordance with Article 228 of the Treaty or from any other act of the Council pursuant to the Treaty shall be opened and administered in accordance with detailed rules adopted under the procedure laid down in Article 23.`

5. Article 13(8) shall be replaced by the following text:

'8. A corrective amount may be fixed in accordance with the procedure laid down in Article 23. However, the Commission may, where necessary, alter corrective amounts.

The first subparagraph may be applied, in whole or in part, to products listed in Article 1(1)(c) and (d) and to products listed in Article 1 and exported in the form of goods listed in Annex B.`

6. Article 16 shall be replaced by the following:

'Article 16

1. Where the quotations or prices on the world market for one or more of the products listed in Article 1 reach a level which disrupts or threatens to disrupt the availability of supply on the Community market, and where that situation is likely to continue and to deteriorate, appropriate measures may be taken.

2. Detailed rules for the application of this Article shall be adopted in accordance with the procedure laid down in Article 23.`

Article 2

Council Regulation (EEC) No 2731/75 of 29 October 1975 fixing standard qualities for common wheat, rye, barley, maize and durum wheat (1) shall hereby be repealed.

Article 3

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

This Regulation shall apply from the 2000/2001 marketing year onwards.

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

Done at . . .

For the Council

. . .

(1) OJ L 281, 1.11.1975, p. 22. Regulation as last amended by Council Regulation (EC) No 2594/97, OJ L 352, 23.12.1997, p. 10.