No C 171/16 Official  Journal  of the  European  Communities 9. 7. 79 
Point  4.2 (point  5.2 of the Committee's  opinion) 
Proposals  for  the  Sugar  Sector 
'The  Commission  has  proposed  a substantial  reduction  in the B quota  for  sugar  beet.  The  Section 
considers  that  such  a reduction  is unjustified  when: 
— concessions  have  been  made  to the signatory  countries  of the Lome  Convention, 
— special  advantages  have  been  granted  to certain  sugar  factories, 
— the  production  of isoglucose  is not  covered  by the  same  taxation  and  quota  system  as that 
applied  to sugar  production  in the Community.' 
Voting 
For: 39;  against:  33;  abstentions:  8. 
Point  4.3  (second  paragraph)  (corresponds  to point  5.3,  second  paragraph,  of the  Committee's 
opinion) 
The Section  also  asks  that  rice  be included  on the  list of products  subject  to food  aid. 
Voting 
For:  37;  against:  32;  abstentions:  2. 
C. THE  FOLLOWING  PASSAGE  OF THE  SECTION'S  OPINION  WAS  WITHDRAWN  AFTER  AN 
AMENDMENT  ADOPTED  DURING  THE  DEBATE: 
Point  1.6.5,  third  sentence  (corresponds  to point  2.7  of the Committee's  opinion) 
This,  together  with  the  fact  that  producers'  prices  account  for  only  half  of the  final  consumer  price, 
shows  that  any  increase  in common  farm  prices  by a given  percentage  would,  on average,  lead  to an 
overall  rise  in the cost  of living  of roughly  one-tenth  of that  percentage. 
Voting 
For:  40;  against:  38;  abstentions:  9. 
Opinion  on the  proposal  for  a Council  Regulation  amending  Regulation  (EEC)  No  816/70 
laying  down  additional  provisions  for  the  common  organization  of the  market  in wine 
The text  referred  to the  Committee  has  been  published  in Official  Journal  of  the  European 
Communities  No  C 9 of 11 January  1979,  page  3. 
A. LEGAL  BASIS  FOR  THE  OPINION 
On 5 January  1979,  the  Council  referred  the  abovementioned  proposal  to the  Economic  and 
Social  Committee  in accordance  with  Article  43 of the  Treaty  establishing  the  European 
Economic  Community. 
9. 7. 79 Official  Journal  of the European  Communities No C 171/17 
B. OPINION  OF THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  ^nd  Social  Committee  prepared  its opinion  on the above  matter  at its 167th 
plenary  session,  held  in Brussels  on 4 and  5 April  1979. 
The full text  of the opinion  is as follows: 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to the Treaty  establishing  the European 
Economic  Community,  and,  in particular,  Article  43 
thereof, 
Having  regard  to the request  made  by the Council  on 
5 January  1979  for an opinion, 
Having  regard  to the decision  taken  by its Bureau  on 
23 January  1979  instructing  the Section  for Agriculture 
to do the preparatory  work  on the matter, 
Having  regard  to its previous  work  on the matter, 
Having  regard  to the opinion  adopted  by the Section  for 
Agriculture  on 8 March  1979, 
Having  regard  to the  report  drawn  up  by  the 
rapporteur,  Mr Masprone, 
Having  regard  to the  discussions  at its meeting  on 
4 vApril  1979  (167th  plenary  session  of 4 and  5 April 
1979), 
HAS  ADOPTED  THE  FOLLOWING  OPINION 
with 1 vote  against  and  12 abstentions: 
1. The  Commission  proposes  the  introduction  of 
permanent  aids  for the purchase  of Community-pro-
duced  musts  used  for the manufacture  of (a) fruit  juices 
and (b) 'British  wine'  and  'Irish  wine'.  The  aim  is to 
offset  the difference  between  the price  of Community 
musts  and  world  market  prices. 
The submission  of  this  proposal  signifies  that 
Community  preference  has  failed  to  function 
satisfactorily  in this  area. 
2. Failing  unbinding  in GATT: 
(a) we endorse  the  Commission  proposal  for  fruit 
juices; 
(b) we would  point  out that  the manufacturing  process 
and denomination  of British  and  Irish  wines  creates a number  of problems,  as does  the  absence  of 
Community  rules  in this  area. 
The Committee  refers  to the comments  in the report 
appended  to the present  opinion,  and  in particular  to 
item 4 of that  document  (CES  242/79  fin). 
The Committee  is therefore  unable  to approve  this 
proposal  until  such  time  as: 
(a) the Commission  submits  proposals  on  the 
production,  labelling  and  presentation  of liqueur 
wines,  vermouths  and  all the alcoholic  drinks  falling 
within  heading  No 22.07  of the Common  Customs 
Tariff; 
(b) once  the  proposals  under  (a)  above  have  been 
adopted,  a further  look  must  be taken  — against  a 
background  of market  transparency  and  uniform 
terms  of competition  for all drinks  referred  to in (a) 
above,  particularly  as regards  labelling,  presentation 
and access  to raw  material  — at the question  of aid 
for the  purchase  of  Community  musts  and 
concentrated  musts  which  are  intended  for  the 
manufacture  of British  and  Irish  wines. 
The Committee  also  stresses  that: 
— British  and  Irish  wine  products  already  benefit  from 
discriminatory  taxation  compared  with  similar 
products  derived  from  wine, 
— these  products  use  terms  like  'wine'  or 'sherry' 
which  wrongly  evoke  a product  or an origin, 
— it is contrary  to the principles  of the Treaty  to grant 
aid to industrial  products,  while  excluding  some 
Member  States  from  the benefits  of this  aid, 
— the  finished  products  which  would  benefit  from  the 
aid use very  little  vinic  raw  material  and  therefore 
do not  represent  a major  outlet  for  Community 
agriculture, 
— on the  contrary,  the  granting  of aid  and  the 
sanctioning  by the Community  of products  which 
up until  now  have  merely  been  tolerated,  above  and 
beyond  the existing  preferential  treatment,  could  be 
the first  step  towards  a considerable  expansion  of 
the output  of these  products  to the  detriment  of 
products  derived  from  wine, 
No C 171/18 Official  Journal  of the European  Communities 9. 7. 79 
— the  products  concerned  do  not  specify  their 
composition  on the label, 
— the  reasons  why  musts  from  third  countries  should 
be replaced  by Community  musts  are  not  entirely 
well-founded  since  these  third  countries  include 
some  which  will  probably  join  the  Community 
shortly.  Furthermore,  it would  hardly  be very  astute 
to suppress  Greece's  traditional  outlets  during  the 
final  phase  of the  accession  negotiations,  only  for 
this country  to be given  them  back  after  accession, 
— aid  granted  under  these  circumstances  to such 
products  seem  so unreasonable  that  it could  not  be 
agreed  to unless  it were  extended  to all the  other 
uses of musts  and  concentrated  musts  apart  from 
normal  wine  production. 
The Committee  considers  that  the proposals  made  in (a) 
and (b) above  would  provide  producers  of British  and 
Irish  wines  with  sufficient  incentive  to  buy 
Community-produced  musts. 
Done  at Brussels,  4 April  1979. This  should  soon  enable  uniform  Community-wide 
application  of  Regulation  816  in  its  entirety,  in 
paticular  Article  28 which  specifies  the  conditions  for 
the use of non-Community  musts  in the manufacture  of 
fermented  alcoholic  beverages. 
3. The  Committee  emphasizes  the  need  to ensure 
market  transparency  and  uniform  terms  of competition 
for all the products  concerned,  especially  with  respect  to 
conditions  of access  to the raw  material.  This  should  be 
done  as soon  as possible. 
4. Lastly  the  Committee  takes  this  opportunity  to 
stress  yet again  that  the Commission  should  as soon  as 
possible  undertake  precise  commitments  to eliminate 
the excessive  — and  often  discriminatory  — taxes 
levied  in some  Member  States  which  prevent  the 
consumption  of  wine  products  fom  developing 
normally. 
The Chairman 
of the Economic  and  Social  Committee 
Fabrizia  BADUEL  GLORIOSO 
ANNEX 
to the opinion  of the Economic  and  Social  Committee 
Rejected  amendments 
The following  amendments,  were  rejected  by the Committee: 
Page  2 
Delete  paragraph  3 (b). 
Reasons 
British  and  Irish  wines  are  adequately  controlled  by the UK  and  Irish  Governments  and  cause  no 
problems  in these  Member  States.  They  do not exist  in the other  Member  States. 
Voting 
For: 18; against:  38; abstentions:  11. 
Page  3 
Delete  the fifth  indent:  'on the contrary,  derived  from  wine;' 
9. 7. 79 Official  Journal  of the European  Communities No C 171/19 
Reasons 
These  wines  are primarily  drunk  by the older  generation  of the working-class.  Their  production  has  not 
increased  in 10 years.  In 40 years  I have  only  met  one  person  who  admitted  to drinking  them.  There  is 
no question  of their  expanding  because  the  Community  sanctions  them,  a consideration  which 
influences  very  few  drinkers. 
Voting 
For: 20;  against:  33; abstentions:  12. 
The following  passage  in the  Section  for  Agriculture's  opinion  was  deleted  as the  result  of an 
amendment  approved  by the Committee: 
'2. The  Section  therefore  considers  that  the Commission  should  concentrate  on ensuring  adequate 
Community  preference  for musts.  To this  end,  the  Community  customs  duties  on imported 
musts  should  be unbound  in GATT;  the  appropriate  procedures  should  be set  in hand 
immediately.' 
Voting 
For: 34;  against:  30;  abstentions:  7. 
Opinion  on the proposal  for a Council  Regulation  amending  regulation  (EEC)  No 974/71 
with  regard  to the calculation  of. monetary  compensatory  amounts  in the wine  sector. 
The text  referred  to the Committee  has been  published  in Official  Journal  of the European 
Communities  No  C 55 of 1 March  1979,  page  11. 
A. LEGAL  BASIS  FOR  THE  OPINION 
On 23 February  1979,  the Council  referred  the abovementioned  proposal  to the Economic 
and Social  Committee  in accordance  with  Article  43 of the Treaty  establishing  the European 
Economic  Community. 
B. OPINION  OF THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  prepared  its opinion  on the above  matter  at its 167th 
plenary  session,  held  in Brussels  on 4 and  5 April  1979. 
The full  text  of the opinion  is as follows: 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to the Treaty  establishing  the European 
Economic  Community,  and,  in particular,  Article  43 
thereof, 
Having  regard  to the request  made  by the Council  of 
the European  Communities  on 23 February  1979  for an 
opinion, Having  regard  to the decision  taken  by its Bureau  on 26 
February  1979,  instructing  the Section  for Agriculture 
to prepare  the Committee's  work  on the matter, 
Having  regard  to the opinion  issued  by the Section  for 
Agriculture  at its meeting  on 21 March  1979, 
Having  regard  to the  oral  report  made  by  the 
rapporteur,  Mr Guillaume,