Proposal for a COUNCIL REGULATION (EC) amending Regulation (EEC) No 619/71 laying down general rules for granting aid for flax and hemp
Date: 1996-12-04
Institutions: European Commission
Subjects: agro-industry, aid to agriculture, flax, hemp, production aid

COMMISSION  OF THE  EUROPEAN  COMMUNITIES 

Brussels,  04.12.1996 
COM(96)629  final 

Proposal  for  a 

COUNCIL  REGULATION  (EC) 

amending Regulation (EEC) No 619/71 laying down 
general rules for granting aid for flax and hemp 

(presented by the  Commission) 

EXPLANATORY  MEMORANDUM 

Under  the  1996/97 price proposals  the  Commission  proposed  that  the  Council  amend 
Regulation  (EEC) No  1308/70 on the common  organization  of the market  in  flax  and 
hemp. That proposal provides for the application, from the  1997/98 marketing year, of a 
maximum guaranteed area for fibre flax. 

The said proposal also provides for the introduction of a cut in the aid where harvesting 
is done other than by the traditional method of pulling the whole plant, thereby reducing 
production costs. The reduction is to take the place of the present system of  coefficients 
based on the average seed yield for an area with a reduction in the aid for non-deseeded 
retted flax. 

The current  system has one notable weakness: the reason  for the relatively high rate of 
aid was the constraint of the growing methods (dense seeding, harvesting by pulling the 
whole plant using special equipment, retting involving a risk of loss), which were made 
necessary  by  the  quality  requirements  of  the  primary  processing  industry.  Now, 
however, growers, on increasingly  large areas of land, are adopting  simplified  growing 
methods and producing flax in order to receive the Community aid, while having no real 
outlet for their production. 

To put  an end to these practices, which have  led to  a substantial  increase  in the  areas 
sown with fibre flax, appropriate measures need to be taken, by amending the Regulation 
laying down the general rules for granting aid. 

z 

Measures proposed 

5. 

It  must  be  ensured  that  the  aid  cannot  be  paid  for  areas  which  have  not  been  fully 
utilised.  The key  is to  establish  compulsory  contracts  between  growers  and  processors 
approved  by  the  Member  State,  together  with  a  processing  commitment.  Primary 
processors will be approved by the competent authorities of the Member  States, not by 
the  Commission,  having  regard  to  the  principle  of  subsidiarity.  Contracts  are  already 
provided  for  under  the  current  legislation,  but  they  are  not  compulsory  since,  in  the 
absence of a contract, 100% of the aid is paid to the grower. 

Given  that  in  some  cases  the  grower  processes  the  flax  straw  himself  or  has  the 
processing done on his behalf, and cannot tlierefore conclude a contract of this kind with 
a  processor,  provision  should  also  be  made  for  a  processing  commitment  and  for 
approval in such cases. 

7. 

In the case of "growing contracts" whereby the grower is someone who has entered into 
a  special  contract  with  the  owner  or  user  of  the  land,  there  is  a  similar  need  for  a 
processing commitment and approval. 

The  Member  States  should  also  be  obliged  to  check  not  only  the  accuracy  of  area 
declarations  and  aid  applications  (and  on this point  the  use  of  certain  elements  of  the 
integrated administration and control system is appropriate) but also the proper execution 
of  contracts  and  processing  commitments,  as  well  as  fulfilment  of  conditions  of 
approval. 

To prevent abuse, to qualify  for aid, land must have  undergone normal cultivation, and 
the Commission should be able to lay down provisions on the matter. 

10. 

Since it is likely that contracts will already have been concluded by some growers before 
this proposal  is adopted, the Commission must be able to adopt transitional  provisions 
for the first marketing year of application. 

11. 

Should the proposal not be adopted before sowing starts (mid-March), its entry into force 
would have to be postponed until the following marketing year. 

'3 

Proposal for a 

COUNCIL REGULATION (EC) No ..../.. 

of 

amending Regulation (EEC) No 619/71 laying down 
general rules for granting aid for flax and hemp 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, 

Having  regard  to  Council  Regulation  (EEC)  No 1308/70  of  29 June  1970  on  the  common 

1 
organization of the market in flax and hemp , as last amended by Regulation (EC) No 
in particular Article 4(4) thereof, 

2 

, and 

Having regard to the proposal from the Commission, 

Whereas  the first subparagraph  of Article  3(2) of Regulation  (EEC) No  619/71  laying  down 

general  rules  for  granting  aid  for  flax  and  hemp,  as  last  amended  by  Regulation  (EC)  No 

1989/93 , lays down that three quarters of the aid for flax is to be granted to any natural or legal 

person  who  has  concluded  with  the  grower,  before  a  date  to  be  detennined,  a  contract 

transferring  ownership of the flax  straw; whereas to ensure that the flax  is actually  processed, 

provision  should  be made for payment of the aid to the primary processor  to be  subject  to an 

explicit commitment on his part to undertake processing and also to an approval procedure; 

Whereas the second subparagraph of Article 3(2) of the said Regulation lays down that growers 

may  under  certain  conditions  qualify  for  all  the  aid;  whereas  in  those  cases  a  processing 

obligation and a system of approval of primary processors should be established; 

1 
2 
3 
4 

OJNoL  146,4.7.1970, p. 1. 
OJNoL 
OJNoL72,26.3.1971,p. 2. 
OJNoL  182,24.7.1993,p. 6. 

<f 

Whereas the checks referred to in Article 5 of the said Regulation should also cover fulfilment  of 

the  processing  obligation  and  the  conditions  of  approval;  whereas  the  effectiveness  of  those 

checks can be increased by using certain elements of the integrated administration  and  control 

system and whereas, therefore, provision should be made for that possibility; 

Whereas Article 6 of the said Regulation lays down that the amount of the aid is to be calculated 

in relation to the area sown and harvested; whereas, to prevent abuse,  the said area must have 

undergone normal cultivation and whereas the Commission should be able to lay down criteria 

on the matter; 

Whereas the measures provided for in this Regulation must be properly  implemented; whereas 

transitional  measures  may  therefore  be  required  to  facilitate  the  introduction  of  the  new 

arrangements, 

HAS ADOPTED THIS REGULATION: 

Article 1 

Regulation (EEC) No 619/71 is hereby amended as follows: 

1. 

Article 3(2) is replaced by the following: 

"2. For the flax grown mainly for the production of fibre, one quarter of the aid shall be 

granted  to  the  grower  and  three  quarters  to  the  primary  processor  approved  by  the 

competent  authority  of  the  Member  State  on  whose  territory  his  establishment  is 

situated, who has concluded with the grower, before a date to be determined, a contract 

transferring ownership of the flax straw and who undertakes to process it. 

However, the entire amount of the aid shall be granted to the grower where: 

y 

a) 

the  grower  within  the  meaning  of  Article  3a(a)  undertakes  to  process  the  flax 

straw and is approved for that purpose by the competent authority, or 

b) 

the grower within the meaning of Article 3a(a) undertakes to have the flax straw 

processed on his behalf by an approved primary processor, or 

c) 

the  grower  within the  meaning  of  Article  3a(b) undertakes  to  process  the  flax 

straw and is approved for that purpose by the competent authority, or 

d) 

the grower within the meaning of Article 3a(b) undertakes to have the flax straw 

processed on his behalf by an approved primary processor." 

2. 

The following shall be added to Article 4(2): 

"and shall establish a system of approval of primary processors and, where appropriate, 

of growers who undertake processing." 

3. 

Article 5 is replaced by the following and is renumbered paragraph 1 : 

"1.Member  States  shall  verify  the  accuracy  of  the  declarations  of  areas  sown  and 

harvested and applications for aid submitted by the producers and also the execution of 

contracts  and  fulfilment  of  processing  obligations  and  of  conditions  of  approval  by 

means of spot checks." 

4. 

The following paragraph 2 is added to Article 5: 

2. 

Detailed rules for the application of checks shall be adopted in accordance with 

the  procedure  laid  down  in  Article  12 of  Regulation  (EEC) No 1308/70,  such 

measures being able to provide for the use of certain elements of the integrated 

administration and control system." 

5. 

The following is added to Article 6: 

"on which normal cultivation work has been carried out. 

The  Commission  may,  in  accordance  with  the  procedure  laid  down  in  Article  12  of 

Regulation  (EEC) No  1308/70,  lay  down  criteria regarding  normal  cultivation  work,  in 

particular by setting a minimum yield to be respected." 

6. 

The following Article 6a is added: 

"Article 6a 

Should  transitional  measures  be  required  to  facilitate  the  implementation  of  the 

adjustments to the arrangements  laid down in Regulation  (EC) No 

with effect  from 

the  1997/98  marketing  year,  such  measures  shall  be  adopted  in  accordance  with  the 

procedure  laid  down  in  Article  12 of  Regulation  (EEC) No  1308/70.  They  shall  apply 

until the end of the 1997/98 marketing year at the latest." 

Arjticje_2 

This Regulation shall enter into force on the seventh day following  its publication in the Official 

Journal of the European  Communities. 

It shall apply from the  1997/98 marketing year. However, point 6 shall apply from the entry into 

force of this Regulation. 

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

Done at..., 

For the Council 

} 

FINANCIAL STATEMENT 

BUDGET HEADING: Bl-1400 

APPROPRIATIONS: ECU 91 million 

TITLE: 
Proposal for a Council Regulation amending Regulation (EEC) No 619/71 laying down general rules for granting aid for flax 
and hemp. 

3. 

LEGAL BASIS: Article 43 of the Treaty 

AIMS OF MEASURE: 
To amend the rules governing the granting of aid for flax by introducing compulsory contracts between growers and processors 
approved by the Member State. 

FINANCIAL IMPLICATIONS 

PERIOD OF 
12 MONTHS 

million ecu 

CURRENT 
FINANCIAL YEAR 
(96) 
million ecu 

FOLLOWING 
FINANCIAL YEAR 
(97) 
million ecu 

5.0. 

5.1. 

EXPENDITURE 
- CHARGED TO THE EC BUDGET 

(REFUNDS/INTERVENTION) 
- NATIONAL ADMINISTRATION 
-OTHER 

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

5.0.1. 
5.1.1. 

5.2. 

ESTIMATED EXPENDITURE 
ESTIMATED REVENUE 

METHOD OF CALCULATION: 

1998 

1999 

2000 

2001 

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? 

IS A SUPPLEMENTARY BUDGET NECESSARY? 

WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? 

YES/NO 

YES/NO 

YES/NO 

YES/NO 

OBSERVATIONS: 

The proposed Regulation has no financial impact, it might even enable payment of aid for areas not fully utilised 
to be avoided. 

ISSN 0254-1475 

COM(96) 629  final 

DOCUMENTS 

EN 

03  01 

Catalogue number  :  CB-C0-96-629-EN-C 

ISBN 92-78-12877-5 

Office  for Official  Publications of the European Communities 

L-2985 Luxembourg 

5