CELEX: 51975PC0332
Language: en
Date: 1975-07-02
Title: PROPOSAL FOR A REGULATION (EEC) OP THE COUNCIL establishing a system of aid to organizations of silkworm rearers (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (75) 332
Vol. 1975/0129
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 ---pagebreak---  COMMISSION OF THE EUROPEAN COMMUNITIES
                                                       COM(75)332 final
                                                       Brussels . 2 July 1975
                                PROPOSAL FOR A
                      REGULATION (EEC ) OP THE COUNCIL
    establishing a system of aid to organizations of silkworm rearers
                ( submitted to the Council by the Commission)
COMC75 ) 332 final
 ---pagebreak---                            EXPLANATORï MEMORANDUM
To help silkworm rearers to meet the difficulties resulting from the present
eoonomio situation in this seotor , the Council , at its meeting on 10 and 11 Fe­
bruary 1975 , requested the Commission "to submit , as quickly as possible , a pro­
posal for a Regulation granting Community aid , for a period of three years , to
recognized groups of silkworm'.rearers formed to improve the marketing organization
of the produots oonoerndd , so as to encourage the formation of such groups and
facilitate their aotivity . H
The aim of this proposal for a Regulaiion is to implement the above Council Reso­
lution , pending the adoption by the Council of the proposal for a Regulation oon-
oerning groups of agricultural produoers and associations thereof *
This dcaft aims to facilitate the setting up and operation of organi sat ions of
silkworm rearers to improve the marketing of their products .
It is proposed that organisations recognized by the Member State concerned should
be granted a degressive aid for three years based on the value of the cocoons
marketed by their members . For the first , second and third years respectively ,
the aid will be 9$ »       and 3*fo of the value of the cocoons marketed . Implementation
of the measure should be completed not later than five years after the entry
into force of the Regulation in question .
The draft Regulation also sets out the conditions organisations must fulfil to
obtain recognition ; for example , the organisations may not have members other than
silkworm rearers and their activities must be limited to the first stage of mar­
keting , -that is , the sale of the produots of silkworm rearing to the wholesale
trade or to user industries .
 ---pagebreak---                                             Proposai
                                         for a
                        REGULATION (EEC ) No ...«/7 5 CP THE COUNCIL
  establishing a system of aid to organisations of silkworm rearers
  THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
  Having regard to the Treaty establishing the European Economio Community , and in
 particular Artiole 43 thereof ;
 Having regard to the proposal from the Commission ;
 Having regard to the Opinion of the European Parliament ;
 Whereas , in order to help ensure a fair income for silkworm rearers and stabilize
 the market in their products , the centralization of supply and its adaptation to the
 requirements of the marked through joint action , by rearers , should be encouraged ;
 Whereas these objectives may be pursued by the formation of producers' organizations
which oblige their members to comply with         certain rules regarding production and
 marketing ;
 Whereas , to avoid any discrimination between producers and ensure the unity and ef­
fectiveness of ary action undertaken , conditions should be fixed , applicable throughoi±
the Community , with which producers' organisations must comply to quality for reco­
gnition by the Member States ;
Whereas provision should be made for measures designed to facilitate the setting up
and functioning of these organisations ; whereas , to this end , Member States should be
allowed to grant the necessary aid ; whereas , however , such aid should be limited in
                    IDS
amount and should temporary and degressive so that the financial responsibility of
producers will progressively inorease ;
Whereas the measures proposed are of importance to the Community for the attainment
of the objectives set ovit in Article 39 ( l ) ( a ) of the Treaty , inoluding the structu­
ral changes necessaiy for the proper working of the common market ; whereas these mea­
sures therefore constitute a common measure within the meaning of Article 6 of Council
Regulation (EEC) NO 729/70^ ^of 21 April 1970 on the financing of the common agricul–
                                                                  2)
tural policy , as last amended by Regulation ( EEC ) NO 2788/ 72     ;
Whereas 5     of the aid expenditure concerned should be financed by the Community ;
HAS ADOPTED THIS REGULATION %
( 1 ) OJ No L 94 , 28.4.1970 , p. 13
( 2 ) OJ No L 295 , 30.12.1972 , p. 1
 ---pagebreak---                                  Article 1
For the purposes of this Regulation , "producers' organisation" means an organisa­
tion of silkworm rearers , or an association of such organisations , formed "by the
rearers themselves for the following purposes , in particular :
 (a) to centraliae supply ;
 (b ) to make available , to the associate rearers , adequate technical resources for
      the preparation , storage , and marketing of their products , on condition :
      - that all their production is marketed ( first stage of marketing) by the
        producers' organisation; the organisation being able , however , to exempt
        rearers from this obligation in respeot of certain quantities ;
      - that they apply , in respect of production and marketing , the rules adopted
        by the producers' organisation designed to adapt the volume of supply to
        market requirements .
For the purposes of th is Regulation , "first stage of marketing" means the sale
to the wholesale trade or to the user industries .
                                 Article 2
Member States shall reoognize producers' organisation insofar as their activiiies
include the production and marketing of cocoons and which request recognition and
fulfil the followfng^oonditions together with those laid down in Article 1 ;
they should :
(a) provide evidenoe of économie aotivity on an adéquate soale ;
(b ) exolude , throughout their field of activity , any discrimination whatsoever
      between Community rearers in respect of , in particular , their nationality or
      plaoe of establishment ;
( o ) fulfil the conditions laid down by the provisions of their national legisla­
      tion;
(d ) include in their statutes :
      (aa) the obligation to keep separate aocounts for the activities in respect
            of which they have been recognized ;
      (bb ) provisions aimed at ensuring that members of an organisation who wish to
            give up their membership may do so after at least three years provided
            they inform the organisation of their intention at least one year in
            advance *
 ---pagebreak---                                          ~ 3 -
       ( e ) have no members other than silkworm rearers .
  2 . The autority competent to recognize producers' organisations shall be the
      Member State within whose territory the producers' organisation has its regis­
      tered offioe .
                                     Artide 3
  An association of producers 1 organi sat ions may not receive aid exceeding a total
  of 20.000 u«a *
                                     Article 4
  Member States may grant aid to recognized producers' organisations for three years
  following the date of their recognition to encourage their formation and to facili­
  tate their operation. For the first , second and third years respectively , the
  amounts of such aid may not exceed 9          and 3$ of the value of the coooons marke­
  ted by the producers' organisation .
  The aid must not , however , exceed during the first year 80$ , during the second
  year 6($ , and during the third year 40^» of the organisations administrative costs .
The value of the coooons marketed shall be calculated at a standard rate , for each
year , on the basis of s
- the average output marketed by members during the three calendar years preceding
   their joining ;
- the average produoer prioes obtained by members during the same period .
                                     Article 5
Detailed rules for the application of Articles 1-4 shall be laid down in accor­
dance with the procedure provided for in Article 12 of Counoil Regulation ( EEC )
No 1308/70^ of 29 June 1970 on the common organization of the market in flax and
hemp .
                                     Article 6
1 . The measures provided for in this Regulation shall together constitute a oommon
     measure within the meaning of Artiole 6 ( l ) of Counoil Regulation (EEC ) Ho 729/70
     of 21 April 1970 on the finanoing of the oommon agricultural polioy .
( 1 ) OJ Ho L 146 , 4.7.1970 , p. 1
 ---pagebreak---                                   - 4 -
2 . Expenditure incurred by Member States as a result of the measures provided for in
    this Regulation shall qualify for aid from the Guidance Section of the EAGGF .
3 . The Guidance Section of the EAGGF shall reimburse 50/0 of the eligible expenditure
    to the Member States *
4 * Requests for reimbursement shall relate to expenditure incurred by Member States
during a given oalendar year and shall be submitted to the Commission before 1 May
    of the following year .
    The Commission shall deoide on these request , together or severally , in accordance
    with the procedure provided for in Article 7 ( l ) of Regulation ( EEC ) No 729/70.
3 * The estimated total cost to the EAGGF of the oommon measure^ is 100.000 u.a.
6 . The common measure shall be implemented over a period of not more than five years
    from the date of entry into foroe of this Regulation .
7 . The arrangements for the application of paragraph 3 shall be fixed in accordance
    with the prooedure provided for in Article 13 of Regulation ( EEC ) No 729/70*
This Regulation shall be binding in its entirety and direotly applicable in all
Member States .
Done at                                               For the Counoil
 ---pagebreak---                          FUTMCIM; ANNEX
          •to the proposal for a. Counoil Regulation setting up
          a system of aid to organizations of silkworm producers#
1 . Artiole 4 of the proposal for a regulation provides for aid of 9^»        and 3%
    of the value of the production of ooooons marketed lay producers 1 organizations .
2 , It roughly is estimated that :
    - the annual production of cocoons in the Community amounts to 600,000 kg.
      Allowing 1.8 u.a . per kg , the total value of the production of oocoons is
      therefore 600,000 x 1.8 » 1,000,000 u.a. in round figure ;
    - the entire production of oocoons may "be marketed "by the producers' organizations ;
    - four groups of producers are eligible for aid and one Union is reoognized .
3 , If the entire production is marketed "by the producers' organizations , aid will
    total 9$ + 6$ + 3$ =» 18$ of the total value of production , i.e. 0.18 x
    1,000,000 u.a. ■=• 180,000 u.a., of which 59/£ is financed by the EAGGF , i.e.
    90,000 u.a .
    Moreover , some producers' ortanizations may take advantage of the opportunity
    offered to them to form a union . Provision should therefore be made for expen­
    diture for this purpose , amounting to 20,000 u.a., of which 50$t i«e « 10,000 u.a.,
    would be financed by the EAGGF .
4 . It is admitted that :
    - the four producers * organizations are of equal importanoe and will each receive
      a total of 45»000 u.a . in the following instalments :
       22,500 u.a. the first year ,
      15,000 u.a . the second year ,
        7,500 u.a . the third year .
    - organizations and associations shall be set up at the following rate :
       1976    : 3 organizations
       1977    : 1 orgamzation
       1978    î 1 association
                                                                              •Α
 ---pagebreak--- The cost spread is therefore as follows :
    Year       Total oost        Finanoed. by the
                     ( in u.a»)  EAGGF , Guidance
                                      Seotion
  1976               67,500
  1977               67,500          33,750
  1978               57,500          33,750
  1979                 7,500         28,750
  1980                                3,750
  Totals            200,000         100,000