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28. 3. 89 Official Journal of the European Communities No C 76/13

Re-examined proposal for a Council Decision to adopt a first multiannual programme (1988 to

1993) for biotechnology-based agro-industrial research and technology development ( [!] ) —

European collaborative linkage of agriculture and industry through research (Eclair)

_COM(89) 51 final — SYN 113_

_(Submitted by the Commission pursuant to Article 149 2(d) of the EEC Treaty_

_on 9 February 1989)_

(89/C 76/03)

THE COUNCIL OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European
Economic Community, and in particular Article 130Q(2)
thereof,

Having regard to the proposal from the Commission,

In cooperation with the European Parliament,

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

Whereas Article 130K of the Treaty stipulates that the
framework programme shall be implemented through
specific programmes developed within each of its activities;

Whereas, by its Decision of 28 September 1987, the
Council has adopted a framework programme of Community research and technological development (1987 to
1991) ( [2] ), providing for activities to be implemented to
ensure the exploitation and optimum use of biological

resources;

Whereas the said Decision of 28 September 1987 stipulates
that a specific objective of Community research must be to
strengthen the scientific and technological basis of
European industry, particularly in strategic sectors of
advanced technology, and to encourage industry by
making it more competitive at the international level, and
whereas the same Decision also lays down that Community
action is justified if it contributes, among other things, to
enhancing the Community's economic and social cohesion
and to encouraging its overall harmonious development,
while at the same time being consistent with the pursuit of
scientific and technical excellence; whereas the Eclair
programme is planned to contribute to the pursuit of these
objectives;

Whereas the specialised skills and capabilities relevant to
agro-industrial development are numerous, and Europe's
most internationally competitive capabilities are located in
diverse Member States, mutual benefit shall be derived
from collaboration in a Community programme;

Whereas the activities undertaken in the programme need
to be accompanied by ongoing analysis of their associated
costs and benefits to avoid them giving rise to new
industries, which can only survive on the basis of
permanently subsidised sales of agricultural products, or to
agricultural surpluses;

Whereas such activities should constitute a logical
complement to the Community research programmes in
the areas of biotechnology and of agriculture, promoting
the application of their results to the social and economic
objectives of the Community;

Whereas the European Parliament has called for a study to
be conducted into the structural and social consequences of
promoting biotechnologies and genetic engineering and has
also pointed to the risks associated with the use, especially
the release, of genetically engineered organisms; whereas
the revised Community biotechnology R&D programme
adopted on 29 June 1988 ( [3] ) is undertaking research into
these risks;

Whereas development activities at the interfaces between
agriculture and industry could contribute to the solution of
some of the problems which agriculture is currently facing
within the Community;

Whereas the principal and most urgent requirements that
must be satisfied centre on the development of types of
agricultural production suitable for industrial purposes, of
transformation technologies, and of industrial inputs in
agriculture, such as pesticides or fertilisers less harmful to
the environment;

Whereas it is important to avoid any adverse effects for
small and medium-sized agricultural enterprises which
may be caused by a concentration of agricultural structures
and further specialization;

Whereas it is necessary to involve small and medium-sized
agricultural and industrial enterprises to the maximum
extent possible in this biotechnology-based agro-industrial
technological development programme;

(!) OJ No C 294, 18. 11. 1988, p. 7.
( [2] ) OJ No L 302, 24. 10. 1987. ( [3] ) OJ No L 206, 30. 7. 1988.

No C 76/14 Official Journal of the European Communities 28. 3. 89

Whereas the Scientific and Technical Research Committee

(Crest) has expressed its opinion on the Commission's
proposal,

HAS ADOPTED THIS DECISION:

_Article 1_

A research and development programme in the field of
biotechnology-based agro-industrial development is
hereby adopted in the form set out in Annex I for a fiveyear period starting on 1 July 1988.

The programme shall consist of work carried out as
contract research and as coordination actions and by
training/mobility grants. Participants may be industrial
and agricultural enterprises — individual enterprises,
associations or co-operatives — research institutions,
universities or combinations of them, established in the
Community.

_Article 2_

1. In the case of projects carried out by shared-cost
contracts, the Community contribution will not normally
exceed 50 % of the total expenditure, the remainder to be
provided by the partners, predominantly from industrial or
agricultural sources.

Alternatively, in respect of projects carried out by
universities and research institutes, the Community may
bear up to 100 % of the additional expenditure involved.

2. The proposals for projects shall be submitted in reply
to a call for proposals and involve, as a rule, the
participation of at least two independent partners not
established in the same Member State. As a rule, research
institutes and universities should participate in a group
together with one or more industrial or agricultural
organization(s). Research institutes which are funded
principally or exclusively by industrial organizations shall
be considered as industrial partners.

_Article 3_

The funds estimated as necessary for the execution of the
programme amount to ECU 80 million, including expenditure on a staff of 13.

_Article 4_

The Commission shall be responsible for implementing the

programme.

The Commission shall be assisted by a committee of an
advisory nature, hereinafter referred to as 'the Committee',
composed of the representatives of the Member States and
chaired by the representative of the Commission.

_Article_ 5

1. The Commission shall submit to the Committee a draft

of the measures to be taken. The Committee shall deliver its

opinion within a time limit which the Chairman may lay
down according to urgency of the matter, if necessary by
taking a vote.

2. The opinion shall be recorded in the minutes of the
Committee; in addition, each Member State shall have the
right to have its position recorded in the minutes.

3. The Commission shall take the utmost account of the

opinion delivered by the Committee. It shall inform the
Committee of the manner in which its opinion has been
taken into account.

_Article 6_

1. In the third year of the programme implementation,
the Commission shall undertake a review of the programme and it shall report to the Council and the European
Parliament on the results thereof, together, if necessary,
with any proposals for modification of the content and
funding, or for prolongation.

2. After the completion of the programme, an evaluation
of the results achieved shall be conducted by the
Commission, which shall report to the Council and the
European Parliament. The report shall be drawn up by
independent experts.

3. The abovementioned reports shall be established
having regard to the objectives set out in Annex II to this
Decision and in conformity with the provisions of
Article 2(2) of the framework programme.

_Article 7_

This Decision is addressed to the Member States.

28. 3. 89 Official Journal of the European Communities No C 76/15

_ANNEX I_

Programme for the first multiannual action programme for biotechnology-based industrial research and

technological development (1988 to 1993)

AIMS

The objective of the programme here proposed is to promote in Europe the useful application of recent
developments in the life sciences and biotechnology. This shall be achieved by a programme of precompetitive
research and technical development projects and coordination activities, based on close collaboration between
agriculture and industrial activities, and supported by training/mobility grants. The programme will contribute
in the medium and longer terms to enhancing Europe's competitiveness in the economic activities which will be
based on these developments and to strengthening economic and social cohesion in the Community.

The programme shall avoid adverse effects on public health and the environment, and the creation of problems
in respect of the protection and enhancement of nature.

The principle objectives of this programme are enumerated below:

(i) research, adaptation and development of agricultural products destined for industrial use, as well as the
research and promotion of new industrial techniques for processing and transforming agricultural raw
materials with a view to obtaining, under economically viable conditions, industrial products which
respond to the needs of the market;

(ii) research and development of industrial inputs in agriculture, such as pesticides, fertilizers and of eradication
and disease control systems less harmful or better adapted to the environment; the reduction and
elimination of by-products of processing by recovering resources and reducing waste.

CONTENT

The programme shall be pursued through the measures set out below:

1. _EVALUATION_ _TRIALS AND PRODUCTION_ _OF NEW SPECIES OR_ _ORGANISMS_

This sector shall consist of test trials at appropriate scale and under various conditions of novel or
modified species or organisms (plants, livestock, others) in order to test performance, pest resistance,
input requirements, and aspects relevant to suitability for industrial processing, animal nutrition and
market acceptability of the organism, its constituents, and the products derived from them with special
emphasis on the use of new biotechnological methods in the identification, characterisation, selection,
modification, propagation, cultivation or other aspects of developing and appraising the candidate
organisms.

2. _INDUSTRIAL_ _PRODUCTS AND_ _SERVICES_

This sector shall consist of:

2.1. more precise and effective inputs to agriculture through research and development work, based on the use
of life sciences and biotechnology, aiming at the creation of products and services for use in agriculture,
offering advantages in terms of precision, cost-effectiveness, enhanced plant or animal performance,
suitability for subsequent product processing and/or marketing, and avoiding possible undesirable side
effects;

No C 76/16 Official Journal of the European Communities 28. 3. 89

2.2. more precise and effective extraction, transformation and production processes through research and
development work on methods to increase the use and value of agricultural produce, by extraction,
transformation or other processes, in industry or elsewhere, which by biotechnological or other means
make greater or more valuable use of the intrinsic properties of these materials.

3. _INTEGRATED_ _APPROACHES_

This sector shall consist of:

3.1. the improved utilization of the entire crop by the development, through trial systems, of systems for
harvesting the whole crop, its preservation and fractionation into constituents appropriate for subsequent
applications; such trial system(s) to be of adequate scale to provide a basis for economic appraisals, and
the significant participation of industrial and agricultural interests. Priority will be given to projects using
new biotechnology;

3.2. studies and development projects for the integrated use of new technologies which shall focus on the joint
exploitation of progress in biological knowledge and techniques in conjunction with new-technologybased agricultural systems.

IMPLEMENTATION

Implementation of the projects shall be through cost-shared research and development actions and
coordination activities. Training/mobility grants shall be included to facilitate the assembly of relevant
skills at appropriate locations for the work of the projects, and to promote effective diffusion of the
knowledge resulting from them. The programme shall also include the organization of meetings,
consultation of experts, studies on related topics, and diffusion of information on the progress and results
of the projects to all appropriate groups.

Each proposal shall include an environmental impact statement, indicating the possible effects of the
project on man, fauna, flora, soils, water, air and on the interactions between these different factors. This
statement must also include an undertaking to respect existing national safety regulations.

The contracts entered into by the Commission shall regulate the rights and obligations of each party,
including the methods of disseminating, protecting and exploiting of research results.

_ANNEX II_

Evaluation criteria for the first multi-annual action programme for biotechnology-based agro-industrial
research and technological development (1988 to 1993)

The Commission communication to the Council concerning a Community plan of action relating to the
evaluation of Community research and development activities for the years 1987 to 1991 [COM(86) 660 final]
states that the objectives and milestones of each research programme have to be set out in a testable form. The
objectives and milestones of the above programme are set out below.

1. The long-term objective of this programme is described in Annex I.

2. The primary short-term objective is that the programme should succeed in eliciting proposals, with
commitments to co-finance from industry and/or agriculture, for development projects on a scale
commensurate with the Community resources proposed. This objective shall be testable in 1991/1992.

At this time, the programme should also demonstrate its promotion and encouragement of intersectoral
collaboration across the Member States.

28. 3. 89 Official Journal of the European Communities No C 76717

3. The criteria for the evaluation of the objectives to be attained during the first three years of the
implementation of the programme are:

3.1. that tests of new or modified species or organisms have been conducted, and have given grounds to expect
that these organisms, or the processes used to produce or modify them, represent progress and could find
applications;

3.2". that tests have been conducted of new or modified products, techniques or services for use in agriculture;
that advantages in terms of precision, effectiveness, or the avoidance of possible adverse side effects have
been indicated; and that, as a result of the tests, the products, techniques or services have practical
applications;

3.3. that tests have been conducted of more precise and effective extraction, transformation and production
processes, applying biotechnological and/or other methods to an agricultural output; and that, as a result
of the tests, the processes are useful;

3.4. that, through the programme, arrangements have been organised between farming and industrial/
processing interests and facilities or equipment created, modified or made available, to test on one or more
crops the technical feasibility of harvesting and using the whole plant; and that corresponding measures of
performance have been, or are in the course of being, defined to provide a basis for further system
improvements and a basis for decision on the replication and diffusion of similar larger scale activities;

3.5. that studies have been financed and completed, and development projects supported, involving the use in
agriculture of new technologies (e.g. involving sophisticated detection/measurement/recording
techniques, information processing, automation of equipment and facilities), in conjunction with the
application of biotechnology; and that, as a result of such studies and projects, new applications have been
found;

3.6. that studies have been carried out examining the socio-structural and ecological impact of promoting
biotechnology and genetic technology in agriculture.

4. In addition, the programme should ensure that the following general criteria are met:

4.1. that the potential increase in market opportunities, in the medium or long-term, as a result of the
improvements or benefits demonstrated, is of a size to justify the Community expenditures committed,
which imply an analysis of the costs and benefits of these activities and their possible applications;

4.2. taking account of the final reports on the biotechnology action programme, which ends in December
1989, and of the biomolecular engineering programme (1982 to 1986), and of the evaluation report(s) on
these programmes, consideration should be given to whether this programme is in fact effectively
promoting the transfer towards application of the results of the earlier biotechnology (or biomolecular
engineering) research programmes;

4.3. that the execution of the programme has avoided harmful effects on public health and the environment,
and has not created problems with respect to the protection and enhancement of nature;

4.4. taking account of the results of Community, national or private sector research activities in
biotechnology, the evaluation panel shall consider whether the Eclair programme has given adequate
consideration to all the selection criteria set out in Annex III to the framework programme which includes
that of contributing to the strengthening of the economic and social cohesion of the Community, while
being consistent with the pursuit of scientific and technical quality.