Opinion of the European Economic and Social Committee on the ‘proposal for a Council Regulation amending Regulation (EC) No. 1673/2000 on the common organisation of the markets in flax and hemp grown for fibre’ (COM(2003) 701 final - 2003/0275 CNS)
Date: 2004-01-28
Institutions: European Economic and Social Committee
Subjects: aid to agriculture, common organisation of markets, flax, hemp, regulation of agricultural production

C 108/80

EN

Official Journal of the European Union

30.4.2004

Opinion of the European Economic and Social Committee on the ‘proposal for a Council Regu-
lation amending Regulation (EC) No. 1673/2000 on the common organisation of the markets in
flax and hemp grown for fibre’

(COM(2003) 701 final - 2003/0275 CNS)

(2004/C 108/16)

On 1 December 2003 the Council decided to consult the European Economic and Social Committee,
under Article 37 of the Treaty establishing the European Community, on the above-mentioned proposal.

On 9 December 2003 the Committee Bureau instructed the Section for Agriculture, Rural Development
and the Environment to prepare the Committee's work on the subject.

In view of the urgency of the matter, at its 405th plenary session (meeting of 28 January 2004) the Euro-
pean Economic and Social Committee decided to appoint Mrs Santiago as rapporteur-general and adopted
the following opinion with 31 votes in favour and one abstention.

1. Introduction

1.1
On 27 July 2000 the Council adopted Regulation (EC)
No. 1673/2000 amending the common organisation of the
markets in flax and hemp grown for fibre. The regulation
entered into force on 1 July 2001.

1.2
Article 15(1) of the regulation stipulated that not later
than 31 December 2003 the Commission was to submit a
report on production trends in the sector in the various
Member States and the impact of the reform on the sector's
outlets and economic viability. The report was also to examine
the maximum content of impurities and shives applicable to
short flax fibre and hemp fibre.

The Commission considers that although the informa-
1.3
tion gathered indicates that the arrangements have had clear
positive effects on the sector, the data currently available do
not allow for a detailed analysis of the production trends in the
Member States or of whether or not the NGQs have been set at
the correct level.

1.4
In these circumstances, the Commission thinks that the
existing system of aid should not be modified until a more
complete analysis of trends in the sector is available. This
analysis will be carried out for the report planned for 2005.

1.5
The Commission therefore proposes that the possibility
for Member States to derogate from the 7.5 % limit on impuri-
ties and shives should be extended until the 2005/06 marketing
year, allowing aid to be granted for short flax fibre and hemp
fibre containing a percentage of impurities and shives of less
than 15 % and 25 % respectively.

1.6
The Commission considers that retaining the current aid
system and prolonging the derogation for a further two years
should consolidate the positive development
the sector is
experiencing.

1.7
As the accession countries are also producers of flax and
hemp fibre, the proposal will help them adapt to the changes
in the sector.

2. Comments

2.1
The Committee endorses the proposal and is pleased
that the Commission has recognised that a sudden move to the
new system of a single payment per farm would slow down the
positive trends in the sector. This position is in keeping with
the views expressed by the Committee in previous opinions.

Brussels, 28 January 2004

The President

of the European Economic and Social
Committee

Roger BRIESCH