CELEX: 51978PC0316
Language: en
Date: 1978-06-30
Title: Proposal for a COUNCIL REGULATION (EEC) providing for an aid for degerming maize

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (78) 316
Vol. 1978/0112
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                        COM(78)316 final
                                        Brussels , 30 june 1978
                           Proposal for a
                      COUNCIL REGULATION ( EEC )
           providing for an aid for degerming maize^
 C0MC78 ) 316 final
 ---pagebreak---                             EXPLANATORY MEMORANDUM
At its meeting of 8 – 12 May 1978 , the Council noted, that the Commission
intended, to examine the possibility of granting an aid. for the degemination
of corn , with the exception of degeminstt ion carried, out within the framework
of the starch industry , and if iappropriate , to present proposals to the Council
before 1 July 1978 . This intention was reiterated by the Commission at the
Council meeting of 20 June 1978 .
In spite of the lack of available time , the Commission has examined the
situation on the Community corn oil market , and has concluded that the market
is characterized by a strong demand for this oil , which is sought by consumers
because of its quality , and by a lack of supply of the raw material ( corn germs , -
from which the oil is extracted ).                                 .   .
Most of the corn used in the Community is not first degerminated. " Moreover ,
given the sizeable investment which would be necessary and the current costs
of degermination , it is not possible to anticipate avail ibility of corn oil
on the Community mp„rket unless measures of encouragement are taken .
Finally , it should be pointed out that the Coomunity already imports the small
quantity of corn oil available on the world market .      .
Comsumption of corn oil currently amounts to some 130 000 t annually in the
Community , which represents only 3% of total consumption of vegetable oils
 excluding olive oil .                       -
From the above points it can be deduced that supplies of corn oil would be
increased in the Community without either disturbing the market or changing
significantly the global balance sheet for the Community for vegetable oils .
However , it should not be forgotten that some industries which currently carry
out the degermination of corn already benefit from an oil system ( starch , corn
groats for . breweries ) . It should also be recalled that itsis difficult to estimate
what quantities of corn oil could be absorbed by the Commujciity market without
causing difficulties .           ' -
The Commission therefore considers that while an aid for corn degermination appears
to be economically justified in view of the current market situation ,- it should
be reserved for these industries which do not benefit already from a Community
aid system and should be limited to an amount which would not be likely to give
use to sin excessive increase of the production in question . •
 The level of aid proposed takes account of the objectives pursued , the cost of
aegermination , and the effect of the support system in other sectors whex-e
 ---pagebreak--- degermination is carried out .
In order to assess the affectivenass of this system it is proposed to limit
its period of application to three years .
                 Λ
 ---pagebreak---                              Prooosal fnr a
                        COUNCIL REGULATION ( EEC )
               providing for an aid for degerming rr.aize
TH3 COUNCIL OF T5E EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community,
and in particular Article 43 thereof .
Having regard to the proposal from the Commission ,
Having regard to the Opinion of the European Parliament ^, -                  -
Having regard to the Opinion of the Economic and Social Committee      ,
Whereas maize germ oil is in great demand on the Community seed oil market ;
 whereas available supplies of maize germ are at present considerably
lower than the quantity that could "be used in the Community; whereas in
order to impress the Community market supply the use of maize germ for producing
oil should "be encouraged "by providing for the granting of an aid "based on the
cost of degerming;
Whereas this system of aid should be limited to maize germ to which the
 support measures laid down in Article ll(l) of Council Regulation (EEC ) 'No
 2727/75 of 29 October 1975 on the common organization of the market in cereals ^
 do not apply;
Whereas this system of aid should apply onty for a period long enough for its
 effectivenes s to "be assessed;
Whereas the expenditure incurred "by Member States as a result of the obligations
under this Regulation will be borne by the Community , in
 accordance with Articles 2 and 3 of Council Regulation (EEC ) No 729/70 of
                                                                  C'A
 21 April 1970 on the financing of the common agricultural policy HJ , as last
 amended by Regulation (SEC) No 2788/72 ^ ,
 HAS ADOPTED THIS REGULATION :
Q ) 0J No
C2 ) CJ No
(3) 0J No L 281 , 1.11.1975 , P. 1 .
(4) CJ No L 94 , 28 . 4.1970 , p. 13 .
(5 ) 0J No L 295 » 30.12.1972 , p. 1 .
 ---pagebreak---                                           - 2 -
                                        Article 1
 1.       Daring the period 1 January 1979 "to 31 December 1981 aid shall he granted for
          jnaize germ fa L.li'ng within subheading 11.02 G II of the Common Customs
          Tariff to he used in the Community for oil production . Aid shall not
        • however he given for maize germ which is eligible for the refund
           under Article 11(1 ) of Regulation ( EEC ) No 2727 /75 .
2 ,.       Not later than 31 December 1981 , the Council acting by qualified majority
          on a proposal from the Commission shall decide whether to continue ,
          and , if necessary , whether to amend , the system of aid .
                                       Article 2
The amount of the «.id shall be 1.7 units of account per 100 kilograms of maize germ .
                                       Article 3
1.        The aid shall he granted to undertaki ngs which degerm maize .
2.        The aid shall he granted for maize germ removed during the period
        referred toin Article 1 .
                                       Article 4
      Member States shall introduce a control system designed to ensure that                 !
                                                                                             i
aid is granted only .to , undertakings entitled to it .                        c
                                                                                             I
                    •                          ,                                             i
  The said control system shall ensure that , when germ leaves a degerming
  plant in the unaltered state , the Member State concerned shall ensure
  that it is processed to produce oil in an oil mill' Located in the
                                               \
""Community .
                                                                                           1
                                      Article 5                        -                   i
The Council , acting by qualified majority on a proposal from the Commission ,
shall adopts                                                                 ,
– general rules on the granting of aid
– general rules on the checking of entitlement of aid .
                                     Article 6                                           i
Detailed rules for the application of this Regulation shall be adopted in
                                                                                         I
 ---pagebreak--- accordance with the procedure laid down in Article 26 of-            Regulation
{EEC ) No 2727/75            with that laid down in Article 38 of Council Regulation
No I36/66/EEC of 22 September 1^66 on the establishment of a common organization
of the market in oils and fats          •
                                          Article 7
This Regulation shall enter into force on the third day following its
publication in the Official Journal of the European Communities .
It:' shall apply with effect from 1 January 1979 .
This Regulation shall be binding in its entirety and directly applicable in
Member States .
Done at                                                     For the Council
                                  •   <
( 1)0J No     172 , 30 . 9.1966 . p. 3025
 ---pagebreak---                    FiftlA^GSAL         STATEMENT
                                                                                         »      23.6.1978
  1 . BUDGET LIKE CONCERNED I
                                   Chap . 63                                       CRKDITS :
  2. ACTION i
                      Draft Counci l Regulation providing for an aid for maize degerming
 3 * ÎJ5GAI# BAJ IS S
                                 Art . 43 of the Treaty
 4 » OBJECTIVES l
                            Encourage maize degerming for the production of oil
 5 . FINANCIAL CONSEQUENCE                 PERIOD    OP 12 MONTHS     CURRENT FINANCIAL TEAR    FOLLOWINC FINANCIAL YEAR
 5.0 EXPENDITURE                                                                                        ( 1979 )
      –CHARGED TO TKB EC BUDGET
       @8519 BSTINTERVENTI ONS )             1,1 - 1,5 MEUA                               ( 13        1,1 MEUA
      «ssasa BB                  qmm
      ££35£1£Β
                                          YEAR • • •         »• •• - YSAÍÍ • •••••        • ••• TEAH ....^VSl .
5.0.1 PLURIANNUAL PATTE8H OP EXPENDITURE .         1,1 MEUA                   1,3 MEUA              1,5 MEUA
5-x.i PKsaflSMfissîaifittgiaBSBsa
5.2 METHOD OF CALCULATION
                                 1979 = 60 000 t x 17 ua / t = 1 020 000 ua = 1,1 MEUA-
      Production of              1980 = 70 000 t x 17 ua / t = 1 190 000 ua = 1 , 3 MEUA
      corn germs
      receiving aid              1981 = 80 000 t x 17 ua / t = 1 360 000 ua = 1,5 MEUA
6.0 FINANCING POSSIBLE WITH CREDITS INSCRIBED IN RELEVANT CHAPTER OP CURRENT BUDCBP ?                      E&S/NO
6.1                                                                                                        Ε&ϋΒ&ΞΒ
6.3 CREDITS TO BE WRITTEN INTO FUTURE BUDGETS ?                                                            YESfla
COKKENTS I
                 . Aid Limited to three vears - terminates 31.12.1981
               (1)    Measure enters into force on 1.1.1978