Proposal for a COUNCIL REGULATION (EC) No . . .

of . . .

establishing a quota system in relation to the production of potato starch (94/C 83/03)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Articles 42 and 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 Council Regulation (EEC) No 1543/93 of 14 June 1993 fixing the amount of the premium pald to producers of potato starch during the 1993/94, 1994/95 and 1995/96 marketing years (1) provided for the Council to decide what measures to take if the production of potato starch within the Community exceeded 1,5 million tonnes in the marketing year 1993/94 or 1994/95; whereas production in 1993/94 exceeded such figure;

Whereas in order to limit Community potato starch production, any Member State where potato starch has been produced should be allocated a quota based on the average amount of potato starch produced in that Member State in the marketing years 1990/91, 1991/92 and 1992/93 for which premium was received, proportionately adjusted, if necessary, to bring the total Community quota to 1,5 million tonnes;

Whereas quotas should be allocated to Denmark, Germany, France and the Netherlands for use in the marketing years 1994/95, 1995/96 and 1996/97;

Whereas in the case of Germany, the change from the planned economy existing in the new Länder before reunification to a market economy and the consequent change in agricultural production structures justifies the use of a different reference year should be 1992/93;

Whereas producer Member States should allocate their quota for a period of three years between all undertakings producing potato starch, on the basis of the average starch produced by them during the marketing years 1990/91, 1991/92 and 1992/93 or the amount of starch produced in 1992/93 only, at the choice of the Member State, and investments made by those undertakings prior to 31 January 1994 in relation to the production of potato starch;

Whereas in order to take account of possible restructuring of the market in potato starch production the Commission shall at the end of the three year period and thereafter at three yearly intervals make a report to the Council on quota allocations accompanied, if necessary, by appropriate proposals;

Whereas the specific structural constraints on the starch production sector make it necessary to establish a premium for the production of potato starch up to the level of an undertaking's quota; whereas in order to protect potato producers, payment of the premium shall be dependent upon payment of the minimum price for the quantity of potatoes needed to produce starch up to the level of the quota;

Whereas undertakings producing potato starch shall not conclude cultivation contracts with potato producers in relation to a quantity of potatoes which would produce starch in excess of their quota; whereas any starch produced in excess of that quota shall be exported from the Community without benefiting from any export refund,

HAS ADOPTED THIS REGULATION:

Article 1

A system of quotas for the production of potato starch is hereby introduced.

Article 2

1. The following producer Member States are hereby allocated quotas for the production of potato starch within the following limits for the marketing years 1994/95, 1995/96 and 1996/97:

Denmark 178 460 tonnes

Germany 501 717 tonnes

France 281 516 tonnes

Netherlands 538 307 tonnes

Total 1 500 000 tonnes.

2. Each producer Member State shall allocate the quota referred to in paragraph 1 to undertakings producing potato starch for use in the marketing years 1994/95, 1995/96 and 1996/97, at the option of the Member State, on the basis of:

- either the average amount of starch produced by them in the marketing years 1990/91, 1991/92 and 1992/93 and for which they received the premium referred to in Article 1 of Regulation (EEC) No 1543/93,

- or the amount of starch produced by them in the marketing year 1992/93 and for which they received the premium referred to in Article 1 of Regulation (EEC) No 1543/93.

Where necessary, a producer Member State shall also, on the basis of objective criteria, take into account investments made by undertakings producing potato starch before 31 January 1994 which did not give rise to production in the reference period chosen by that Member State.

Article 3

1. On or before 31 October 1996 and thereafter at three yearly intervals, the Commission shall present to the Council a report on the allocation of quota within the Community, accompanied if necessary by appropriate proposals.

2. On or before 30 November 1996 and thereafter at three yearly intervals, the Council shall allocate quota between Member States on the basis of the report referred to in paragraph 1, for use in the following three marketing years.

3. On or before 31 December 1996 and thereafter at three yearly intervals, Member States shall notify those concerned of the details of quota allocations for the following three marketing years.

Article 4

An undertaking producing potato starch shall not conclude cultivation contracts with potato producers for a quantity of potatoes which would produce a quantity of starch in excess of its quota, referred to in Article 2 (2).

Article 5

A premium of ECU 18,43 per tonne of starch produced shall be pald to undertakings producing potato starch for the quantity of potato starch up to the quota limit referred to in Article 2 (2), provided that they have paid to potato producers the minimum price, referred to in Article 8 (1) of Council Regulation (EEC) No 1766/92 (1), as last amended by Regulation (EC) No . . . (2), for all the potatoes necessary to produce starch up to that quota limit.

Article 6

1. Without prejudice to Article 5, any potato starch produced in excess of the quota referred to in Article 2 (2) shall be exported, as such, from the Community before 1 January following the end of the marketing year in question.

No export refund shall be pald in respect of it.

2. Without prejudice to paragraph 1, an undertaking producing potato starch may, in any marketing year, in addition to its quota for that year, utilize no more than 5 % of its quota relating to the following marketing year. In such case, the quota for the following marketing year shall be reduced accordingly.

Article 7

Detailed rules fot the application of this Regulation shall be adopted in accordance with the procedure laid down in Article 23 of Regulation (EEC) No 1766/92. They shall include, in particular, rules applicable in the case of mergers, changes of ownership and the commencement or cessation of trading of undertakings, and any specific measures necessary to facilitate the transition from the system in force to that established by this Regulation.

Article 8

Regulation (EEC) No 1543/93 is repealed with effect from 1 July 1994. All references to Regulation (EEC) No 1543/93 shall be construed as being references to this Regulation.

Article 9

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

It shall apply from 1 July 1994.

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

Done at . . .

For the Council

. . .

(1) OJ No L 154, 25. 6. 1993, p. 4.

(2) OJ No L 181, 1. 7. 1992, p. 21.

(3) See page 1 of this Official Journal.