Proposal for a COUNCIL REGULATION (EEC) amending Regulation (EEC) No 1637/91 fixing compensation with regard to the reduction of the reference quantities referred to in Article 5c of Regulation (EEC) No 804/68 and compensation for the definitive discontinuation of milk production
Date: 1992-04-13
Institutions: European Commission
Subjects: agricultural quota, dairy production, indemnification, redirection of production

COMMISSION  OF THE EUROPEAN  COMMUNITIES 

C0M(92) 151 final 

Brussels,  13 April  1992 

Proposal  for a 

COUNCIL  REGULATION  (EEC) 

amending  Regulation  (EEC) No  1637/91  fixing  compensation  with  regard 
to the reduction of  the reference  quantities referred  to in 
Article 5c of Regulation  (EEC) No 804/68 and  compensation 
for  the definitive  discontinuation of milk  production 

(presented  by  the  Commission) 

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EXPLANATORY  MEMORANDUM 

Council  Regulation  (EEC) No 1637/91  Introduces  In particular  a Community  scheme 

to fund  the definitive  discontinuation of milk production  In order  both  to make 

it easier  to reduce quantities of milk marketed  in  line with  the 2% reduction  in 

the total  quantities decided  for  1991/92 and  to mobilize  the quantities needed 

for  the allocation of  the SLOM  II quotas.  Council  Regulation  (EEC) No  1637/91 

thus allocates total  funding  allowing  3% of  national  total  quantities  to be freed 

thanks to compensation  of  ECU  10/100 kg per  year while granting  each Member  State 

substantial  latitude  in using  the funds. 

It also provides  that  the target  reduction/mobilization of  reference  quantities 

may  be achieved  through  compensation  of  less than ECU  10/100 kg or, where  the 

total  funds are not  exhausted  either  because  the Member  State  has decided  not  to 

implement  the programme  or because  the programme  has not  met  with  the success 

anticipated,  that  the amounts available are allocated  to producers whose 

reference  quantities have been  reduced  and  remain so,  in the  form of  compensation 

of  ECU  10/100 kg per  year. 

However,  in certain Member  States  the target  reduction/mobilization  has been 

attained  and even exceeded  with  compensation  of  less than  ECU  10/100 kg without 

the Community  funds being exhausted.  This proposal  for  a Regulation  covers  this 

eventuality, which was not  anticipated,  and proposes  that  the Member  States be 

authorized  in that  event  to continue  the scheme  for  an additional  six-month 

per iod. 

In addition,  in view of  the regional  development  needs  in certain Member  States 

and with  a view  to safeguarding  structural  adjustments  and  developments 

accomplished,  this proposal  grants  the Member  States  the possibility of offering 

producers who have not  been able  to resume milk production  at  1 April  1992 to 

apply within  a short  space of  time  for  the compensation  for  the definitive 

discontinuation of milk production  up to the  financial  ceiling  allocated  to those 

States. 

Proposal  for a 

COUNCIL  REGULATION  (EEC) No 

/92 

Of 

amending  Regulation  (EEC) No 1637/91  fixing  compensation with  regard 
to the reduction of  the reference quantities referred  to in 
Article 5c of Regulation  (EEC) No 804/68 and  compensation 
for  the definitive discontinuation of milk  production 

THE COUNCIL OF THE EUROPEAN  COMMUNITIES, 

Having  regard  to the Treaty  establishing  the European  Economic  Community, 

Having  regard  to Council  Regulation  (EEC) No 804/68 of  27 June  1968 on  the common 
organization of  the market  In milk and milk products*1),  as  last  amended by 
Regulation  (EEC) No 816/92*2>, and  in particular  Article  5c(6) thereof, 

Having  regard  to the proposal  from  the Commission*3^, 

Whereas Council  Regulation  (EEC) No 1637/91*4)  Introduces  In particular a 

Community  scheme  to finance  the definitive discontinuation of milk  production in 

respect  of up  to 3% of  the guaranteed  total  quantities, deliveries and  direct 

sales, and provides, where certain eligibility  requirements  are met, for 

compensation  to be paid  after  the definitive  discontinuation of all  milk 

production  not  later  than 31 March  1992; whereas  that  Regulation  provides that 

the  target  reduction  set  by  the Member  State may  be met  by means of  compensation 

of  less than ECU  10 per  100 kg and per  year; 

Whereas  the target  reduction  has been  reached, and even exceeded,  In certain 

Member  States by means of compensation  of  less than ECU  10 per  100 kg and per 

year  without  the available Community  funds being exhausted; whereas,  this being 

the case and so that  the necessary  structural  adjustments  can be continued,  the 

Member  States should  be authorized  to continue  the scheme  for  the definitive 

discontinuation of milk production  for a further  six-month  period; 

(1) OJ  No L 148, 28.6.1968, p. 13. 
(2) OJ  No L 86, 1.4.1992, p. 83. 
(3) OJ  No C 
(4) 0J  No L 150, 15.6.1991, p. 30. 

_ 2 -

y 

Whereas  In addition,  In view of  the extension of  the additional  levy  arrangements 

and of  regional  development  needs  in certain Member  States,  in order  to safeguard 

the structural  adjustments  and  developments  the Member  States should  be granted 

the possibility of offering  producers who have not  resumed milk  production at 

1 April  1992  the chance of  applying  for compensation, within  the  limits  laid down 

In the Annex  to Regulation  (EEC) No 1637/91, for  the definitive  discontinuation 

of milk  production  provided  for  In Article  2 of  that  Regulation;  whereas 

paragraph  5 of  that  Article  should  therefore  be amended  accordingly  without, 

however,  the consequences of  these new provisions being  Imposed  on producers who 

elect  to receive  the compensation  as originally  provided  for, 

HAS ADOPTED THIS REGULATION: 

Article 1 

The  following  subparagraphs  are hereby  added  to Article  2(5) of  Regulation  (EEC) 

NO 1637/91: 

"However, without  prejudice  to the first  subparagraph, Member  States may  use the 

amounts available  to continue  the scheme  referred  to  in paragraph  1 until 

30 September  1992 at  the  latest.  In that  case, Member  States  shall  forward  to 

the Commission  the  Information provided  for  in Article 4 before  31 December  1992. 

In addition,  the Member  States may offer  producers who have not  resumed  milk 

production  at  1 April  1992 the chance of  submitting  applications  before 

1 June  1992  In accordance with  this Article.  The quantities  thus  freed  shall  be 

re-allocated  in accordance with paragraph  4 unless  the producers  concerned  elect 

to receive  the compensation  as originally  provided  for  in the  first  subparagraph. 

In that  case,  the Member  States shall  include  the additional  information  to be 

forwarded  In accordance with  Article  4 before  31 December  1992." 

3  -

Article  2 

This  Regulation  shall  enter  into  force  on  the  third  day  following  its  publication 

in the  Official  Journal  of  the  European  Communities. 

This  Regulation  shall  be  binding  in  Its entirety  and  directly  applicable  in all 

Member  States. 

Done  at  Brussels, 

For  the  Council 

£ 

F I N A N C I AL  S T A T E M E NT 

DATT. 

1. BUDGET HEADING: Article 206 

APPROPRIATIONS:  ECU 871 ml 11 Ion 

2. TITLE: 

Proposal for a  Council Regulation amending Regulation  (EEC) ND  1637/91  fixing compensation with regard 
to the reduction of the reference quantities referred to in Article 5c of Regulation (EEC) ND 804/68 and 
compensation for the definitive discontinuation of milk production. 

3. LEGAL BASIS:  Article 5c(6) of Regulation  (EEC) No 804/68 

4. AIMS OF PROJECT: 

To extend possibilities for qualifying under  the definitive discontinuation arrangements within the 
ceiling  laid down. 

Period of 12 months 

ECU ml 11 ion 

Current Financial  Year 
1992 
ECU ml 11 Ion 

Following Financial  Year 
1993 

ECU ml 11 Ion 

1994 

1995 

1996 

1997 

5.  FINANCIAL  IMPLICATIONS 

5.0 EXPENDITURE 

- CHARGED TO THE EC BUDGET 
-  (REFUNDS/INTERVENTION) 
- NATIONAL  ADMINISTRATION 
- OTHER 

5.1  REVENUE 

- OWN RESOURCES OF THE EC 
(LEVIES/CUSTOMS DUTIES) 

- NATIONAL 

5.0.1  ESTIMATED  EXPENDITURE 
5.1.1  ESTIMATED REVENUE 

5.2 METHOD OF CALCULATION: 

6.0 CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED  IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET? 

6.1 CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET? 

6.2  IS A SUPPLEMENTARY BUDGET NECESSARY? 

6.3 WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? 

YES 

YES/ND 

YES/ND 

ND 

OBSERVATIONS: 
Since the measure extends the possibi I ities for qual ifying under the definitive discontinuation arrangements 
within the eel Iing  laid down there is no additional  expenditure over the budget. 

ISSN 0254-1475 

COM(92) 151 final 

DOCUMENTS 

EN 

03 

Catalogue number: CB-CO-92-170-EN-C 

ISBN 92-77-43335-3 

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