Proposal for a COUNCIL REGULATION amending Regulation (EC) No 1868/94 establishing a quota system for the production of potato starch
Date: 1999-04-12
Institutions: European Commission
Subjects: agricultural guidance, agricultural quota, marketing year, minimum price, potato, starch

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 12.04.1999
COM(1999)173 final

99/0088 (CNS)

Proposal for a

COUNCIL REGULATION

amending Regulation (EC) No 1868/94 establishing
a quota system for the production of potato starch

(presented by the Commission)

EXPLANATORY MEMORANDUM

The Agricultural Council compromise on Agenda 2000 provides for an increase in the
potato starch compensatory payment in return for a fixed quota reduction. For this
purpose, the Council invited the Commission to make a proposal to reduce the potato
starch quotas. The present proposal must be adopted simultaneously with the
amendments to Regulation (EC) No 1766/92 which fixes the level of compensatory
payments mentioned above.

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Proposal for a

COUNCIL REGULATION

amending Regulation (EC) No 1868/94 establishing
a quota system for the production of potato starch

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 Commission1,

Having regard to the opinion of the European Parliament2,

Having regard to the opinion of the Economic and Social Committee3,

(1) Whereas Article 2 of Council Regulation (EC) No 1868/944 of 27 July 1994, as
last amended by Regulation (EC) No 1284/985, fixes the potato starch quotas for
producer Member States for the 1998/1999, 1999/2000 and 2000/2001 marketing
years;

(2) Whereas Article 8(2) of Council Regulation (EEC) No 1766/926, as last amended
by Regulation (EC) No .../19997, fixes the amount of the compensatory payment
for producers of potatoes intended for the manufacture of potato starch; whereas
this amount is increased by the Council for the 2000/2001 marketing year as well
as the following marketing years on condition that the quotas fixed by Regulation
(EC) No 1868/94 are decreased for the Member States having a quota greater
than 100 000 tonnes by 2.81% in 2000/2001 and by 5.74% in 2001/2002, and the
current quota for the Member States having a quota lower than 100 000 tonnes
must be reduced by 1.41% in 2000/2001 and by 2.87% in 2001/2002;

(3) Whereas the quotas established for the 2000/2001 marketing year have been
amended and the quotas for the 2001/2002 marketing year have to be fixed;
whereas the producer Member States should allocate their quotas for the period
2000/2001 and 2001/2002 between all the undertakings producing potato starch
on the basis of the existing quotas for the marketing year 1999/2000; whereas it
must be made clear that quantities used in excess of sub-quotas during the

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OJ C … , … 1999, p.
OJ C … , … 1999, p.
OJ C … , … 1999, p.
OJ L 197, 30.7.1994, p. 4.
OJ L 178, 23.6.1998, p. 3.
OJ L 181, 1.7.1992, p. 21.
OJ L … , … 1999, p.

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marketing year 1999/2000 shall be deducted in the 2000/2001 marketing year in
accordance with Article 6(2);

(4) Whereas the Commission shall at the end of the period make a report to the
if necessary, by appropriate
Council on quota allocations accompanied,
proposals; whereas these proposals will take account of possible changes in the
compensatory payment,

HAS ADOPTED THIS REGULATION:

Article 2 of Regulation (EC) No 1868/94 is amended as follows :

Article 1

1.

2.

In paragraphs 1 and 2, references to the 2000/2001 marketing year are deleted.

The following paragraphs are added :

"3. The following producer Member States are hereby allocated quotas for the
production of potato starch within the following limits for the 2000/2001
and 2001/2002 marketing years :

2000/2001

2001/2002

173 439 tonnes

676 680 tonnes

1 972 tonnes

273 595 tonnes

523 161 tonnes

48 409 tonnes

53 980 tonnes

63 001 tonnes

168 215 tonnes

656 298 tonnes

1 943 tonnes

265 354 tonnes

507 403 tonnes

47 691 tonnes

53 178 tonnes

62 066 tonnes

1 814 237 tonnes

1 762 148 tonnes

Denmark

Germany

Spain

France

The Netherlands

Austria

Finland

Sweden

TOTAL

4.

Each producer Member State shall allocate the quota referred to in
paragraph 3 between undertakings producing potato starch for use in the
2000/2001 and 2001/2002 marketing years in proportion to the sub-quotas
available to each undertaking for the 1999/2000 marketing year before a
possible correction under Article 6(2) was applied.

The sub-quotas of each undertaking for the 2000/2001 marketing year
shall be adjusted to take account of any amount used in excess of quota
during the 1999/2000 marketing year in accordance with Article 6(2)."

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Article 2

Article 3 of Regulation (EC) No 1868/94 is replaced by the following text:

"Article 3

1. On or before 31 October 2001 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.
This report will take account of possible changes in the compensatory
payment as well as of the development of the potato and cereal-starch
market.

2. On or before 31 December 2001 and thereafter at three-yearly intervals, the
Council, acting on the basis of Article 43 of the Treaty, shall allocate the
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 January 2002 and thereafter at
Member States shall notify those concerned of
allocations for the following three marketing years."

three-yearly intervals,
the details of quota

Article 3

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

It shall apply from 1 July 2000.

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

Done at Brussels,

For the Council
The President

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FINANCIAL STATEMENT

1.

2.

3.

4.

BUDGET HEADING: B1-1021

APPROPRIATIONS: EUR 205 million

TITLE:

Proposal for a Council Regulation amending Regulation (EC) No 1868/94 establishing a quota system for the production of
potato starch.

LEGAL BASIS: Articles 42 and 43 of the Treaty

AIMS OF MEASURE:

To reduce the potato starch quotas for the 2000/2001 and 2001/2002 marketing years to take account of the increase in the
producer premium for the 2000/2001 and following marketing years resulting from the Council agreement of March 1999.

5.

FINANCIAL IMPLICATIONS

PERIOD OF
12 MONTHS

(EUR million)

CURRENT
FINANCIAL
YEAR (1999)
(EUR million)

FOLLOWING
FINANCIAL
YEAR (2000)
(EUR million)

5.0

5.1

EXPENDITURE
-

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

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:

SEE ANNEX

-

-

-

-

2001

- 7.8
-

2002

- 15.6
-

2003

2004

-
-

-
-

6.0

6.1

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?

6.2

IS A SUPPLEMENTARY BUDGET NECESSARY?

6.3 WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY?

OBSERVATIONS:

YES / NO

YES / NO

YES / NO

YES / NO

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ANNEX

The financial impact of the proposal has been calculated in relation to the present quotas, taking account of the
premium amounts laid down for the 2000/2001 and following marketing years, in accordance with the Council
compromise of 11 March 1999 and the conclusions of the European Council of 24 and 25 March 1999.

Budget year

2001

2002

Present quotas

tonnes

A

1 864 304

1 864 304

Amount of producer aid
Amount of industry premium
Total amount of aid
Expenditure

EUR/t
EUR/t
EUR/t

B
C
D = B + C
EUR million E = A x D

98.74
22.25
120.99
226

110.54
22.25
132.79
248

New quotas

tonnes

F

1 814 237

1 762 148

Amount of producer aid
Amount of industry premium
Total amount of aid
Expenditure

Difference

Saving on production refunds
Reduction in quota
Estimated refund
Total

EUR/t
EUR/t
EUR/t
EUR million

G
H
I = G + H
J = F x I

98.74
22.25
120.99
220

EUR million

K = J - E

- 6.1

110.54
22.25
132.79
234

- 13.6

tonnes
EUR/t

L = F - A
M

EUR million N = L x M

- 50 067
34.66
- 1.74

- 102 156
19.78
- 2.02

Total impact of measure

EUR million O = K + N

- 7.8

- 15.6

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