Legislative resolution embodying Parliament' s opinion on the proposal for a Council Regulation adjusting, for the fifth time, the system of aid for cotton introduced by Protocol 4 annexed to the Act of Accession of Greece (COM(95)0035 - C4-0109/95 - 95/0061(CNS)) (Consultation procedure)
Date: 1995-05-19
Institutions: Committee on Agriculture and Rural Development, European Parliament
Subjects: Greece, Spain, aid system, cotton, report













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51995AP0108

Legislative resolution embodying Parliament' s opinion on the proposal for a Council Regulation adjusting, for the fifth time, the system of aid for cotton introduced by Protocol 4 annexed to the Act of Accession of Greece (COM(95)0035 - C4-0109/95 - 95/0061(CNS)) (Consultation procedure)  


Official Journal C 151 , 19/06/1995 P. 0383 





A4-0108/95Proposal for a Council Regulation adjusting, for the fifth time, the system of aid for cotton introduced by Protocol 4 annexed to the Act of Accession of Greece (COM(95)0035 - C4-0109/95 - 95/0061(CNS))The proposal was approved with the following amendments:(Amendment 1)Recital 3>Original text>Whereas, on the other hand, to ensure that production of this crop does not expand in those regions less suited to it and to avoid an increase in expenditure, the guide price should be reduced in proportion to the increase in the guaranteed maximum quantity and no limit should be placed on the reduction in aid should the guaranteed maximum quantity be exceeded; whereas, in fixing the guide price, account must be taken of the adjustment to the price in ECUs laid down in Council Regulation (EC) No. 150/95 of 23 January 1995 amending Regulation (EEC) No. 3813/92 on the unit of account and the conversion rates to be applied for the purposes of the common agricultural policy;>Text following EP vote>Whereas, on the other hand, to ensure that production of this crop does not expand in those regions less suited to it and to avoid an increase in expenditure, the guide price should be reduced by 5% and a limit should continue to be placed annually on the reduction in aid should the guaranteed maximum quantity be exceeded; whereas, in fixing the guide price, account must be taken of the adjustment to the price in ECUs laid down in Council Regulation (EC) No. 150/95 of 23 January 1995 amending Regulation (EEC) No. 3813/92 on the unit of account and the conversion rates to be applied for the purposes of the common agricultural policy;(Amendment 2)Recital 3a (new)>Text following EP vote>Whereas, to avoid the excessive fluctuations in the reduction of the guide price which occur when the guaranteed maximum quantity is exceeded, provision should be made for a maximum level of reduction;(Amendment 3)Recital 4>Original text>Whereas, with a view to facilitating budgetary arithmetic and fairness among operators, any deferral of the reduction in aid should be disallowed;>Text following EP vote>Whereas, with a view to ensuring fairness among operators and fair treatment for the various agricultural sectors, the budgetary status quo in the cotton sector should be maintained so that any savings made in a marketing year may be used to reduce the penalties in succeeding marketing years;(Amendment 4)Recital 5>Original text>Whereas the diverging production trends in the producer Member States have produced inequitable effects in the operation of the system of stabilizers; whereas, with a view to establishing a fairer system, provision should be made so that, where the guaranteed maximum quantity is exceeded by no more than 10%, the aid should be reduced equally in the producer Member States and, where the guaranteed maximum quantity is exceeded by more than 10%, the Member States responsible should be subjected to a further reduction; whereas, however, provision should be made whereby Member States which are potential cotton producers can start to grow cotton by setting production at a level at which the system of stabilizers does not apply;>Text following EP vote>Whereas the diverging production trends in the producer Member States have produced inequitable effects in the operation of the system of stabilizers; whereas, with a view to establishing a fairer system, provision should be made for a reduction in aid, where the guaranteed maximum quantity is exceeded, and for that reduction to apply in each of the Member States in which production has exceeded the national guaranteed quantity; whereas, however, provision should be made whereby Member States which are potential cotton producers can start to grow cotton by setting production at a level at which the system of stabilizers does not apply;(Amendment 5)Recital 5a (new)>Text following EP vote>Whereas, in an effort to rejuvenate the agricultural population, provision should be made for additional support for small producers; whereas, to this end, specific support programmes for small producers will be required pursuant to Regulation (EEC) 389/82(1)on producer groups and associations thereof in the cotton sector;(1) OJ L 51, 23.2.1982, p. 1.(Amendment 6)Recital 6>Original text>Whereas, to enable operators to run longer production and processing programmes, the guide price and the minimum price payable to the producer to ensure the benefits from the aid should no longer be fixed annually;>Text following EP vote>Whereas, to enable operators to run longer production and processing programmes, the guide price and the minimum price payable to the producer to ensure the benefits from the aid should continue to be fixed annually and must be updated in line with changes in production costs;(Amendment 8)Recital 6a (new)>Text following EP vote>Whereas it appears more appropriate to set the world price of cotton objectively in relation to the price of the fibre on the world market in accordance with Liverpool A Index;(Amendment 9)Recital 6b (new)>Text following EP vote>Whereas the growing importance of cotton production and the special characteristics which management of the Community's aid scheme requires represent an argument in favour of changing the Management Committee for Flax and Hemp into a Committee on Fibres with a special section for cotton;(Amendment 10)ARTICLE 2Article 2(1) and (2) (Regulation 1964/87)>Original text>1. A guaranteed maximum quantity (GMQ) is hereby established for which the aid referred to in point 3 of Protocol 4 on cotton shall be granted.>Text following EP vote>1. A guaranteed maximum quantity (GMQ) is hereby established for which the aid referred to in point 3 of Protocol 4 on cotton shall be granted.>Original text>This quantity shall be fixed for each marketing year at 947 000 tonnes of unginned cotton.>Text following EP vote>This quantity shall be fixed for each marketing year at 1 300 000 tonnes of unginned cotton.>Original text>2. The GMQ shall be allocated as follows among the Member States (guaranteed national quantity - GNQ):Spain: 249 000 tonnesGreece: 698 000 tonnes.>Text following EP vote>2. The GMQ shall be allocated as follows among the Member States (guaranteed national quantity - GNQ):Spain: 300 000 tonnesGreece: 1 000 000 tonnes.(Amendment 11)ARTICLE 2Article 2(3) (Regulation 1964/87)>Original text>3. Paragraph 4 notwithstanding, if during a marketing year actual production exceeds the GMQ, the guide price for that year shall be adjusted as follows:>Text following EP vote>3. Paragraph 4 notwithstanding, if during a marketing year actual production exceeds the GMQ, the guide price for that year shall be adjusted as follows:>Original text>- where the GMQ is exceeded by up to 10%, the guide price shall be reduced by a percentage equal to half the percentage excess;>Text following EP vote>deleted>Original text>- where the GMQ is exceeded by more than 10%, an additional reduction shall be made to the guide price in every Member State where production exceeds the GNQ plus 10%. The additional reduction shall be calculated taking account of the extent to which the GMQ was exceeded and shall be proportional to the difference between the actual quantity produced by each Member State and its GNQ.>Text following EP vote>- where the GMQ is exceeded, a reduction shall be made to the guide price in every Member State where production exceeds the GNQ. The reduction shall be calculated taking account of the extent to which the GMQ was exceeded and shall be proportional to the difference between the actual quantity produced by each Member State and its GNQ.>Original text>The reductions applicable shall be fixed in accordance with the procedure laid down in Article 12 of Council Regulation (EEC) No 1308/70, as last amended by the Act of Accession of Norway, Austria, Finland and Sweden, to the European Union.>Text following EP vote>The reductions applicable shall be fixed in accordance with the procedure laid down in Article 12 of Council Regulation (EEC) No 1308/70, as last amended by the Act of Accession of Norway, Austria, Finland and Sweden, to the European Union, and in such a way that, with respect to EAGGF expenditure, any savings that may be made in a marketing year as a result of the fact that the guaranteed maximum quantity has not been exceeded or because of changes in the world price may be used to reduce the penalties in succeeding years. Notwithstanding the provisions of the preceding paragraphs, for each marketing year the Council, in accordance with the procedure laid down in Article 43 of the Treaty, shall set a limit to the reduction in aid having regard to changes in production. For the 1995/1996 marketing year the reduction in the amount of aid may not be more than 25% of the guide price.(Amendment 12)ARTICLE 2Article 2(4a) (new) (Regulation 1964/87)>Text following EP vote>4a. The guide price for a given quality of unginned cotton shall apply throughout the relevant marketing year; the marketing year shall run from 1 September to 31 August.(Amendment 13)ARTICLE 2Article 2(4b) (new) (Regulation 1964/87)>Text following EP vote>4b. The price of unginned cotton on the world market shall be fixed for a product of grade no. 5 (white middling) 28 mm (1 3/32") long, taking into account the quotations and prices established on the Liverpool exchange and expressed in accordance with the Liverpool A Index.(Amendment 14)ARTICLE 2Article 2(4c) (new) (Regulation 1964/87)>Text following EP vote>4c. Entitlement to aid shall be acquired at the point of ginning. However, aid may be granted in advance, with effect from the beginning of the marketing year, from the time that the unginned cotton enters the ginning undertaking, as long as a sufficient guarantee is provided. The amount of the advance shall be fixed on the basis of a percentage of the aid and shall be determined in the case of each Member State having regard to the estimated production of unginned cotton in that Member State and the probable amount of the aid. The balance of the aid shall be paid once actual production in each Member State has been determined and, if necessary, the aid has been reduced. It shall be paid at the latest before the end of the marketing year.(Amendment 15)ARTICLE 3Paragraph 8, first subparagraph (Protocol 4)>Original text>8. The guide price shall be set at ECU 110.73/100 kg of unginned cotton.>Text following EP vote>8. The guide price shall be set at ECU 116.38/100 kg of unginned cotton.(Amendment 16)ARTICLE 4Paragraph 8a (Protocol 4)>Original text>8a. Production aid shall be granted only to those undertakings which buy unginned cotton at a price at least equal to a minimum price. The minimum price shall be set at ECU 105.19/100 kg of unginned cotton for the quality selected for the guide price at the farm gate.>Text following EP vote>8a. Production aid shall be granted only to those undertakings which buy unginned cotton at a price at least equal to a minimum price. The minimum price shall be set at ECU 110.56/100 kg of unginned cotton for the quality selected for the guide price at the farm gate.(Amendment 17)ARTICLE 5>Original text>Point (a) in the second subparagraph of paragraph 9 of Protocol 4 is deleted.>Text following EP vote>On a proposal from the Commission and after consulting the European Parliament, the Council shall fix the guide price and the minimum price of unginned cotton for each marketing year.(Amendment 18)ARTICLE 6Paragraph 11 (Protocol 4)>Original text>11. Before the start of the 1999/2000 marketing year at the latest, the Commission shall send the Council a report on the operation of the system of aid for cotton.>Text following EP vote>11. Before the start of the 1999/2000 marketing year at the latest, the Commission shall send the Council a report on the operation of the system of aid for cotton.>Original text>If the report shows it to be necessary, the Council, acting by qualified majority on a proposal from the Commission and having consulted Parliament, shall decide on any adjustments to the system, account being taken of the experience acquired in operating both this system and the system of support for arable crops.>Text following EP vote>If the report shows it to be necessary, the Council, acting by qualified majority on a proposal from the Commission and having consulted Parliament, shall decide on any adjustments to the system, account being taken of the experience acquired in operating this system.Legislative resolution embodying Parliament's opinion on the proposal for a Council Regulation adjusting, for the fifth time, the system of aid for cotton introduced by Protocol 4 annexed to the Act of Accession of Greece (COM(95)0035 - C4-0109/95 - 95/0061(CNS))(Consultation procedure)The European Parliament,- having regard to the Commission proposal to the Council, COM(95)0035 - 95/0061(CNS) ((OJ C 94, 14.4.1995, p. 4.)),- having been consulted by the Council pursuant to the Act of Accession of Greece (C4-0109/95),- having regard to Rule 58 of its Rules of Procedure,- having regard to the report of the Committee on Agriculture and Rural Development and the opinion of the Committee on Budgets (A4-0108/95),1. Approves the Commission proposal, subject to Parliament's amendments;2. Calls on the Council to notify Parliament should it intend to depart from the text approved by Parliament;3. Asks to be consulted again should the Council intend to make substantial modifications to the Commission proposal;4. Instructs its President to forward this opinion to the Council and Commission.