CELEX: 51989PC0611
Language: en
Date: 1989-12-08
Title: PROPOSAL FOR A COUNCIL REGULATION ( EEC ) INSTITUTING A SPECIAL SYSTEM OF AID FOR SMALL COTTON PRODUCERS

COMMISSION OF THE EUROPEAN COMMUNITIES
                                       C0MC89)  611 final
                                       Brussels,  8  December 1989
                        Proposal for a
                  COUNCIL REGULATION (EEC)
             instituting a special system of aid for
                      small cotton producers
               (presented by the Commission)
 ---pagebreak---                                                                   £~.kM[
                                  Proposal for a
                           COUNCIL REGULATION (EEC) No
                                        of
                     instituting a special system of aid for
                              small cotton producers
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic Community,
Having regard to Council Regulation (EEC) No 1964/87 of 2 July 1987 adjusting
the system of aid for cotton introduced by Protocol No 4 annexed to the Act of
Accession of Greece (1), and in particular Article 3(2) thereof,
Having regard to the proposal from the Commission (2),
Having regard to the opinion of the European Parliament (3),
Having regard to the opinion of the Economic and Social Committee (4),
Whereas the system of aid for cotton introduced in Protocol 4, as adapted by
Regulation (EEC) No 1964/87, provides that the aid for cotton is to be reduced
where production exceeds the maximum guaranteed quantity fixed for the
marketing year concerned; whereas these arrangements for reducing the aid
have resulted in past marketing years in falls in the income of agricultural
producers and in particular of those growing cotton on a small area; whereas,
in order to aLleviate the effects of this fall on the latter category of
producers, their income should be supported through the grant of flat-rate aid
per hectare;
(1) OJ No L 184, 3.7.1987, p. 14.
(2) OJ No C
(3) OJ No C
(4) OJ No C
 ---pagebreak---                                        _ ? _
Whereas the aid for small cotton producers should be fixed at a l^vel enabling
 the additional cost of manual harvesting to be offset;
Whereas expenditure on the system of aid for small producers must not exceed a
giv-în ceiling;  whereas, to that end, a maximum guaranteed area any overrun in
whi :h results in a reduction in the aid should be determined;  whereas that
maximum guaranteed area is to be equal to the average areas sown by small
producers in 198 7 and 1988;
Whereas, with a view to sound administration, a definition of small producers
shoild be laid down;
Whereas, in order to facilitate the implementation of the provisions
contemplated, provision should be made for a procedure establishing close
cooperation between the Member States and the Commission within a management
committee;
Whereas, in accordance with Article-3(2) of Regulation (EEC) No 1964/87, the
Council is to decide on any adjustments to the system of aid instituted by
Protocol 4 before the 1992/93 marketing year;   whereas, pending that decision,
the duration of the system of aid introduced by this Regulation should apply
to the end of the 1991/92 marketing year only;
 ---pagebreak--- HAD ADOPTED THIS REGULATION:
                                    Article 1
A system of flat-rate aid for small cotton producers is hereby instituted in
accordance with this Regulation.
                                    Article 2
The system of aid for small producers shall be applicable in the 1989/90,
1990/91 and 1991/92 marketing years.
                                    Article 3
1.  The direct aid shall be ECU 250 per hectare of area sown and harvested in
    each of the three marketing years.   However, where areas sown to cotton by
    small producers as referred to in Article 4 exceed a Community maximum
    guaranteed area, the aid shall be reduced for the marketing year in
    question depending on the overrun recorded.
2.  The Community maximum guaranteed area referred to in paragraph 1 shall be
    determined for the three marketing years concerned by the Council acting
    by a qualified majority on a proposal from the Commission.
                                    Article 4
For the purposes of this Regulation, "small producer" means a cotton producer
who sows an area not exceeding 1,5 hectares to this crop in 1989, L9^() and
1991 and who has submitted a declaration of areas sown and an aid application
before a date to be determined.
                                                                            y
 ---pagebreak---                                       - 4 -
                                    Article 3
1.  The Member States may refrain from granting the aid in the case of amounts
    less than a minimum which they shall determine.
2.  The aid shall be converted into national currency at the agricultural
    conversion rate in force on the first day of the marketing year in respect
    nf which that aid is due.
                                    Article 6
The direct aid instituted by this Regulation shall be considered intervention
intended to stabilize the agricultural markets within the moaning of Article
3(3) of Council Regulation (EEC) No 729/70 of 21 April 1970 on the financing
of the common agricultural policy (1), as last amended by Regulation (EEC) No
1048/88 (2).
                                    Article 7
1.  The detailed rules for the application of this Regulation shall be laid
    down by the Commission in accordance with the procedure provided for in
    Article 12 of Council Regulation (EEC) No 1308/70 of 29 June 1970 on the
    common organization of the market in flax and hemp (3).
2.  In accordance with that procedure, the Commission shall record any overrun
    in the maximum guaranteed area and shall determine the resulting reduction
    in ttie aid.
(1) OJ No L 94, 28.4.1970, p. 1.
(2) OJ No L 185, 15.7.1988, p. 1.
(3) OJ No L 146, 4.7.1970, p. 1.
                                                                       vT
 ---pagebreak---                                       - 5 -
                                    Article 8
The Member States and the Commission shall forward each other the data
required for the application of this Regulation.  Such data shall be compiled
in accordance with the procedure laid down in Article 12 of Regulation (EEC)
No 1308/70.  The detailed rules for forwarding and disseminating such data
shall be adopted in accordance with the same procedure.
                                    Article 9
This Regulation shall enter into force on the third day following its
publication in the Official Journal of the European Communities.
It shall apply from I September 1989.
This Regulation shall be binding in its entirety and directly applicable in
all Member States.
Done at Brussels,                                For the Council
 ---pagebreak---     FINANCIAL                       STATEMENT
                                                                     DATE:
1. BUDGET HEADING:                                                   APPROPRIATIONS: p.m.
    Rural development measures related to the operation
    of the market 1990 DB: 295
2. TITLE: Draft Council Regulation laying down general rules for the special system of aid for small cotton
           producers
3. LEGAL BASIS: Point 11 of Protocol 4 to the Act of Accession of Greece
4. AIMS OF PROJECT: To support the income of smal I cotton producers
                                   Period of 12 months   Current Financial Year     Following Financial Year
5.    INANCIAL IMPLICATIONS                                      1990                       1991
5.0 XPENDTURE
     - CHARGHD TO THE EC BUDGET
     - (REFUNDS/INTERVENTION)            + ECU 9 m               + ECU 9 m                   + ECU 9 m
                                         1992                1993                 1994               1995
5.0. 1 ESTIMATED EXPENDITURE
5.1.1 ESTIMATED REVENUE                 + ECU 9 m
5.2 €TH0D OF CALCULATION: Assumed area concerned: 34 000 ha, corresponding to the total area of holdings of
                            less than one hectare plus half the area of holdings with between one and two
                            hectares.
                            34 000 ha x ECU 250/ha x 1,070 (DR) - ECU 9 Mi 11 ion
6.0 :AN THI: PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET?
                                                                                                        YES
6.1 :AN THI- PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET?
                                                                                                        YES/NO
6.2 iS A SUPPLEMENTARY BUDGET NECESSARY?
                                                                                                             NO
6.3 VILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY?
                                                                                                        YES
OBSEWATIOIS:
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                                                                    ISSN 0254-1475
                                                              COM(89) 611 final
                                                     DOCUMENTS
EN                                                                             03
                                Catalogue number : CB-CO-89-483-EN-C
                                                             ISBN 92-77-54120-2
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