Proposal for a Council Regulation (EC) introducing specific measures for live plants and floricultural products
Date: 1996-06-11
Institutions: European Commission
Subjects: EAGGF Guarantee Section, EU financing, floriculture, living plant, sales promotion

COMMISSION  OF THE EUROPEAN  COMMUNITIES 

Brussels,  11.06.1996 
COM(%) 261  final 

96/0155(CNS) 

Proposal  lor a 

COUNCIL  REGULATION  (EC) 

introducing  specific  measures  for  live  plants 
and floricultural  products 

(presented by the Commission) 

EXPLANATORY  MEMORANDUM 

It is proposed that the Council should adopt this proposal for a Regulation establishing  specific 
measures  for  live  plants  and  floricultural  products. 

The  measures  are  designed  to  stimulate  the  disposal  of  Community  products  by  stimulating 
their  consumption. 

Both  the  Council  and  operators  from  the  sector  concerned  meeting  within  the  Advisory 
Committee  for  Live  Plants  have  requested  the  development  of  Community  promotion 
measures. 

At  the  moment,  promotion  measures  are  being  conducted  in  certain  Member  States,  in 
particular  the Netherlands  and Germany,  and are financed  by  contributions from  operators in 
the  sector.  Although  these  measures  are  very  useful  and  effective,  they  are  not  adequate 
because  of  the  high  degree  of  commercial  interdependence  in  the  sector,  both  within  the 
Community  and  at  international  level.  In  this  context, there  is  an  urgent  need  to  coordinate 
existing national  measures and to supplement them with appropriate measures covering all the 
Member  States. 

This measure will  be an  indirect  measure to be financed  up to a maximum  of  60% from  the 
Community  budget. 

The  estimated  cost  of  this  proposal,  to  be  financed  by  the  EAGGF  Guarantee  Section  is 
ECU  10 million  per year. 

t 

Proposal  for  a 

COUNCIL  REGULATION  (EC)  No 

of 

introducing  specific  measures  for  live  plants 
and floricultural products 

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  Commission1, 

Having  regard  to the  opinion  of the European  Parliament2, 

Whereas the production  of live plants  and floricultural  products  is a very  important  economic 

activity  in  a large number  of  countries  of the  European  Union; 

Whereas,  following  an  increase  in production  within  the European  Community  and  growth  in 

imports from  third countries, supply of such products is rising fast; whereas consumption  should 

therefore  be  stimulated; 

Whereas there is potential  for  increasing  consumption  of Community  products both  within  the 

Community  and  abroad,  in  particular  by  improving  awareness  among  existing  and  potential 

users  and by bringing  production  more  closely  into line with  consumer  requirements; 

Whereas the various  groups working  in the  sector  have a special  role to play  in  implementing 

measures to encourage  consumption; 

Whereas  a  Community  financial  contribution  should  be  provided  for  to  encourage  specific 

measures to increase consumption, whereas provision should be made for the regular evaluation 

of the  measures  financed  in  order to monitor the  achievement  of their  objectives; 

1  OJ No C 
2  OJ No  C 

. 

Whereas the measures thus provided for are intended to stabilize the market in live plants and 

floricultural  products;  whereas,  therefore,  the  expenditure  arising  from  Community  part-

financing  thereof  should  be  deemed  intervention  within  the meaning  of  Article  3  of  Council 

Regulation  (EEC) No  729/70  of  21  April  1970  on the  financing  of  the  common  agricultural 

policy , 

HAS  ADOPTED  THIS REGULATION: 

Article 1 

The Community may contribute to the financing  of measures put forward and implemented by 

groups  representing  the  sector  to  promote  the  consumption  of  Community  live  plants  and 

floricultural  products falling  within CN code 06. 

Article 2 

1. 

The  measures  referred  to  in  Article  1  shall  cover  advertising  and  public-awareness 

measures, including the organization of and participation in fairs and other trade events, 

both within the Community  and abroad. 

Where deemed necessary, such measures may be preceded by market studies of consumer 

attitudes and behaviour  and may be accompanied,  where appropriate,  by the provision 

of  marketing advice to operators in the sector. 

2. 

The measures referred to in Article 1  shall not be designed to promote commercial brands 

or to favour  products from  a particular Member State. 

OJ  No  L  94,  28.4.1970,  p.  13.  Regulation  last  amended  by  Regulation  (EC) 
No  1287/95  (OJ No L  125,  8.6.1995,  p. 1). 

H 

Article 3 

1. 

Contributions  to the  financing  of  the measures  provided  for  in  this Regulation  shall  be 

deemed intervention  intended to stabilize the agricultural  markets within the meaning  of 

Article  3(1)  of Regulation  (EEC) No 729/70. 

2 

Such  contributions  may  not  exceed  60% of the  actual  cost  of the measures. 

Article 4 

The measures referred  to in Article  1 may be granted  Community  funding  for  an period  of no 

more than three years. An evaluation  study shall be carried out in the final  year. The study shall 

assess  the  extent  to  which  the  objectives  referred  to  in  Article  1 have  been  achieved  and  the 

advisability  of  pursuing the  measure  concerned. 

Article 5 

The  measures  provided  for  in  this  Regulation  shall  be  defined  and  the  rules  of  application 

thereof  shall be adopted in accordance with the procedure provided for in Article  14 of Council 

Regulation  (EEC)  No  234/68  of  27  February  1968  on  the  establishment  of  a  common 

organization  of the market  in live trees and  other  plants, bulbs,  roots and the  like, cut  flowers 
and  ornamental  foliage4. 

Article 6 

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 

For the  Council 

4  OJNoL55,  2 3.1968, p. 1. Regulation last amended by Regulation (EC) No  3290/94 

(OJ No L  349, 31  12.1994, p.  105). 

$ 

FINANCIAL  STATEMENT 

Date 

BUDGET  HEADING:  Bl-38  (new  heading planned  for  1997 budget) 

APPROPRIATIONS:  / 

2 

TITLE:  Council  Regulation  introducing  specific  measures  for  live plants and floricultural  products. 

LEGAL  BASIS:  Article  43 of  the  Treaty. 

AIMS: To  promote  the consumption  of  floriculture  products. 

5. 

FINANCIAL  IMPLICATIONS: 

5.0. 

EXPENDITURE 
-  CHARGED  TO THE EC  BUDGET 

(RBFyNBS/INTERVENTJON) 

- NATIONAL  AUTHOR-fflES 
-OTHER 

5.1. 

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

-  NATIONAL 

5.0.1. 
5.1.1. 

ESTIMATED  EXPENDITURE 
ESTIMATED  REVENUE 

5.2. 

METHOD  OF  CALCULATION: 

PERIOD  OF 
12 MONTHS 

(ECU  million) 

CURRENT 
FINANCIAL 
YEAR  (96) 
(ECU  million) 

FOLLOWING 
FINANCIAL 
YEAR  (97) 
(ECU  million) 

10 

(*) 

1998 

10 

1999 

10 

2000 

10 

2001 

10 

Foreseeable  expenditure:  ECU  16.67 million,  of which 60% borne by  the EAGGF:  10 million,  divided  as  follows: 

Publicity. 
Public  relations, fairs,  etc.: 
Market  studies: 

6  million 
3 million 
1 million 

6.0 

!  6.1. 

6.2. 

6.3. 

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

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

WILL  A SUPPLEMENTARY  BUDGET  BE  NECESSARY? 

WILL  FUTURE  BUDGET  APPROPRIATIONS BE  NECESSARY? 

YES/NO 

YES/NO 

YES/NO 

YES/NO 

OBSERVATIONS 

(*)  The  purpose  of the  proposal  is to establish the  legal basis for  a commitment  given by  the  Commission 

to  the  Council.  Appropriations  have  not  as yet been provided  for  in the  1997 PDB. The  proposal  will 
therefore  be  implemented  provided  that  appropriations  are  made  available  for  1997. 

( 

FINANCIAL  STATEMENT 

B1-380: Live plants  and floricultural  products 

1.  TITLE  OF  OPERATION 

Specific  measures  for  live plants and floricultural products: promotion  measures 

2.  BUDGET  HEADING  INVOLVED 

Bl-380 

3. 

LEGAL  BASIS 

Article 43  of the Treaty 

4.  DESCRIPTION  OF  OPERATION 

4.1  General  objective 

To increase consumption  of Community  products by better  informing  consumers 
and by developing closer approximation between production (quality, presentation, 
packaging)  and  consumer  requirements. 

4.2  Period  covered  and  arrangements  for  renewal  or  extension 

The measures  will  apply  for  three-year  periods  (se Article 4 of the Regulation) 

5.  CLASSIFICATION  OF EXPENDITURE  OR REVENUE 

5.1  Compulsory  expenditure 

5.2  Non-differentiated  appropriations 

6.  TYPE OF EXPENDITURE OR REVENUE 

60%  Community  financing  for joint  measures  concerning  two  or  more  Member 
States. 

? 

7. 

FINANCIAL  IMPACT 

7.1  Method  of  calculating  total  cost of  operation 

(a)  Community  contribution:  60% of total  budget  = ECU  10 million;  0.1% of 
production value, this figure being the average of the percentages calculated 
for  the  other  agricultural  sectors which  have a promotion  budget. 

(b)  Member  States contribution  = 40% of total  budget  = ECU  6.67  million. 

7.2 

Itemized  breakdown  of  cost 

in ECU  million 

Breakdown 

1997 

1998 

1999 

2000 

2001 

TOTAL 

(a)  Publicity 

(b)  Public  relations,  including  the 

organization  of  and  participation  in 
fairs, and  other trade  events 

(c)  Market  studies  and  advice 

[6,0] 
(60%) 

[3,0] 
(30%) 

[1,0] 
(10%) 

6,0 

6,0 

6,0 

6,0 

30,0 

3,0 

3,0 

3,0 

3,0 

15,0 

1,0 

1,0 

1,0 

1,0 

5,0 

TOTAL 

p.m.(*) 

10,0 

10,0 

10,0 

10,0 

50,0 

(*) 

The purpose  of the proposal  is to establish the legal basis for a commitment  given by  the  Commission 
to  the  Council.  Appropriations  have  not  as yet  been provided  for  in the  1997 PDB. The  proposal  will 
therefore  be  implemented  provided  that  appropriations  are made  available for  1997 

8.  FRAUD PREVENTION MEASURES; RESULTS OF MEASURES TAKEN 

The fraud  prevention measures will be laid down in the implementing Regulation  which 
will  have to be  adopted. 

ELEMENTS  OF  COST-EFFECTIVENESS  ANALYSIS 

9.1  Specific  and  quantifiable  objectives;  target  population 

specific objectives: to encourage consumers to purchase more frequently  live 
plants and floricultural  products as presents but  also and above all  for  their 
own use throughout  the year. 

target  population,  existing  and potential  consumers  of  all  ages and  average 
income. 

& 

9.2  Grounds  for  the  operation 

Promotion  measures are currently  being undertaken  in  certain  Member  States, in 
particular  in  the  Netherlands  and  in  Germany,  financed  by  contributions  from 
operators.  Albeit very  useful  and effective,  these are no longer  adequate  because 
of  the  close  commercial  interdependence  of  the  sector  at  intra-Community  and 
international  levels.  It  is therefore  vital  to  coordinate  existing  national  measures 
and  to supplement  them  with  appropriate  measures  covering  all  Member  States 

9.3  Monitoring  and  evaluation  of the  operation 

Tenders  must  contain  an  ex-ante  evaluation  of  the  cost-effectiveness  of  the 
proposed  measures.  An  evaluation  will  be  carried  out  during  the third  year  (see 
Article 4  of the Regulation). 

A report evaluating the results obtained must be presented by the contracting party 
when  the  balance  is  requested  (conditions  to  be  fixed  in  the  implementing 
regulation  mentioned  in  point 8). 

10.  ADMINISTRATIVE  EXPENDITURE 

p.m. 

3 

ISSN 0254-1475 

COM(96) 261 final 

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ISBN 92-78-05268-X 

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