CELEX: 51987PC0361
Language: en
Date: 1987-07-16
Title: Proposal for a COUNCIL REGULATION (EEC) amending Regulation (EEC) No 389/82 on producer groups and associations thereof in the cotton sector (presented by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (87) 361
Vol. 1987/0204
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                     COM(87 ) 361 final
                                                     Brussels , 16 July 1987
                               Proposal for a
                          COUNCIL REGULATION ( EEC )
      amending Regulation ( EEC ) No 389 / 82 on producer groups and
                associations thereof in the cotton sector
                                              // l>
                                              t;-:-                /■■
                      (presented by the Commission )^?)]
                      ( presented by the Commission)          \
C0M(87 ) 361 final
 ---pagebreak---                               Λ
                              ♦
                              %
                                          г                            &?w\ l (A
                                   EXPLANATORY MEMORANDUM
The common measure introduced by Council Regulation ( EEC ) No 389 / 82 of
15 February 1982 on producer groups and associations thereof in the cotton
sector^expired on 26 February 1987 , i.e. five years after the entry into force of
the said Regulation .
Its implementation has been of benefit to one Member State only , namely Greece .
In particular , the above-mentioned Regulation comprises two sections : aid for the
launching of producer groups in the cotton sector ans associations thereof and aids
for investments carried out by such groups and associations thereof in the
harvesting , storage , packaging and marketing of cotton . There has been some delay
in the application of the first section in Greece and in that part concerning
investments in ginning and storage facilities in the second section ; on the other
hand , investments in mechanized harvesting equipment have had remarkable success
which deserves to be followed up .
The implementation of Regulation ( EEC ) No 389 / 82 also concerns two other Member
States , namely Spain and Italy .
                                                              2
Pursuant to Protocol 4 of the Act of Accession of Greece ,        as amended by
                                                                3
Protocol 14 of the Act of Accession of Spain and Portugal ,        the implementation of
Regulation ( EEC ) No 389 / 82 is extended to Spain also . The latter , however , has not
had the time to benefit from this common measure in its present form .
This measure could be used to advantage for setting up structures in the cotton
sector in Sicily .
For the above-mentioned reasons , the common measure must be extended for a further
period of five years . This extension , together with more attractive conditions for
the aids for launching and for investments in storage , ginning and packaging
facilities to make those parts of the common measure more operational , as well as
an increase in the rate of reimbursement of aids from 40 % to 50 % , in view of the
financial difficulties of the Community regions to which the common measure is
directed , will enable the objective of the common measure to be achieved , i.e. the
modernization of the cotton sector .
    No L   51 , 23.02.1982 , p .   1.
20J No L 291 , 19.11.1979 , p . 174 .
30J No L 302 , 19.11.1985 , p . 436 .
 ---pagebreak---                                       -з -
The proposal is also in line with the guidelines of the CAP . The continuation
of the common measure and its extension will require the necessary funds ,
according to the financial statement annexed to this proposal .
 ---pagebreak---                                       Proposal for a
                               COUNCIL REGULATION ( EEC )
                         amending Regulation ( EEC ) No 389 / 82
                     on producer groups and associations thereof
                                  in the cotton sector
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
Having regard to the Act of Accession of Greece , and in particular
paragraphs 9 and 11 of Protocol 4 thereto , as amended by Protocol 14 to the
Act of Accession of Spain and Portugal ,
Having regard to the proposal from the Commission , 1
                                                               2
Having regard to the opinion of the European Parliament ,
Whereas , pursuant to paragraph 11 of Protocol 4 to the Act of Accession of
Greece , no later than five years after the implementation of the system
introduced pursuant to that Protocol , the system is to be the subject of a
review ;
Whereas , in accordance with the above-mentioned Protocol , the common measures
provided for by Council Regulation ( EEC ) No 389/82^ apply also in Spain and
consequently the needs of cotton production in this Member State should be
taken into account ;
Whereas , in accordance with the said Regulation , Greece adopted provisions for
the establishment of groups and associations thereof in the cotton sector and
implemented a programme of aids for investments by those groups and
associations thereof ;
1OJ No C     ,            , p.
20J No C     ,            , p.
3 0J No L 51 , 23.02.1982 , p.     1.
 ---pagebreak---                                               -s -
Whereas the implementation of the common measures provided for has aroused great
 interest among cotton producers , particularly as regards investments by cotton
producer groups in mechanized harvesting equipment ;
Whereas , in order to streamline the application of the measures provided for in
Articles 4 and 5 of Regulation ( EEC ) No 389 / 82 , certain conditions , in particular
those relating to the duration and the limits on the aid for the launching of
groups and associations thereof , should be relaxed ;
Whereas producer groups and associations thereof may often not be established while
complying with the conditions laid down in Article 2(1 ) ( b ) of Regulation ( EEC )
No 389 / 82 in order to qualify for certain aids for investments , in particular in
packaging , ginning and storage facilities ; whereas access to such aids should
consequently be extended to private undertakings also , on condition that the
participation of producers of the basic product in the economic advantages arising
from their investments is ensured ;
Whereas the encouragement of cotton production in the Community constitutes a
worthwhile alternative to the replacement of intensive irrigated crops of which
there is often a surplus in the Community ;
Whereas , to achieve that objective , efforts in this sector should be intensified
taking into account in addition the limited financial resources of the regions
concerned ; whereas as a consequence the common measures should be extended ,
adequate financial resources should be provided for the requirements of those
regions and the Community rates of contribution should be raised from 40 % to 50 %
of eligible expenditure by the Member States ,
HAD ADOPTED THIS REGULATION :
                                            Article 1
Regulation ( EEC ) No 389 / 82 is hereby amended as follows :
1 . Article 4(1 ), ( 2 ) and ( 3 ) are replaced by the following :
    ”1 . The Member States concerned shall grant aid to groups and associations , in
    respect of the five years following the date of their recognition , to encourage
    their formation and to facilitate their administrative operation . Such aid may be
    paid over seven years following the date of recognition .
 ---pagebreak---     2 . The amount of aid granted to producer groups for the first , second ,
        third , fourth and fifth years respectively :
        ( a ) shall be equal to a maximum of 5 % , 5 % , 4 % , 3 % and 2 % of the
              value of products :
              - coming from producer groups as referred to in Article 1(1 ),
              - to which recognition relates and which are placed on the market ;
        ( b ) may not , however , exceed the actual formation and administrative
              operating expenditure.”
2 . The following subparagraph is added to Article 5(1 ) :
    " However , the aid referred to in the first subparagraph relating to
    storage , ginning and packaging facilities may also be granted to private
    undertakings provided that the programmes referred to under ( c ) include :
    - investments which the said undertakings contemplate making in storage ,
       ginning and packaging facilities ;
    - an assurance as to the adequate , lasting participation of cotton
       producers in the economic advantages arising from the investments , and / or
       the obligation to conclude supply contracts between groups and the said
       undertakings , of a duration of at least five years ."
3 . Article 10 is replaced by the following :
    " Article 10
    1 . The period for carrying out the common measures shall be ten years from
        the date of entry into force of this Regulation .
    2 . Before the end of the period provided for in paragraph 1 , the Commission
        shall submit to the Council a report on progress in the common measures .
 ---pagebreak---     3 . The estimated total cost of carrying out the common measures to be borne
        by the Guidance Section of the Fund shall be 45 million ECU ,
        3 million ECU of which are provided for the application of Title I.
    4 . Article 6(5 ) of Regulation ( EEC ) No 729 / 70 shall apply to this
        Regulation . "
4 . In Article 11(2 ), ”40 %" is replaced by ”50
                                        Article 2
This Regulation shall enter into force on the day of its publication in the
Official Journal of the European Communities .
It shall apply with effect from 26 February 1987 .
This Regulation shall be binding in its entirety and directly applicable in
all Member States .
Done at Brussels                                               For the Council
 ---pagebreak---                                                                          <2
      FIMANC1AL              STATEMENT                         concerning : a proposal for a Council Regulation
      amending Regulation ( EEC ) No 389 / 82 on producer groups and associations thereof
      in the cotton sector .
   1 . Budget heading : IIIB       Item : 330            Title :     Producer organizations
  2 . legal basis :    Article 43 of the Treaty
  3 . Classification :            „ Compulsory expendi t ur e/f>6>!
  4. Purpose/description of the measure : Following up the objective of modernizing
       structures in the cotton sector by extending the period of application of the
       above-mentioned Regulation .
 5.     Method of calculation
 5.1 Form of expenditure : Reimbursement of national expenditure
 5.2 Community contribution :         5u %
 5.3    Calculation :   See Annex
 6 . Financial implication as regards operating appropri ations
 6.1 Schedule of commitment appropriations and payment ^ proprhtions (m ECU)
                     Year                            C.A.
                    19 84-86                           8,5
                    19 87                              1,6
                    19 88                              5,0
                    19 89                              5,5
                    19 90                            18,4
                    following years
                    Total                            45,0
6.2 Financing during current year :
                        ·*ηΜ«Μ^'·'' «< «. ’^ιηιΜ·1Ι»<ΟΠ·»·>Ι1Τ.*ι«·Π··<ηΜ·ΜΜΜΜ·Μ·η·ι·]ΜΜ«ΜΝ
7 . Observations :       Amount provided for in the 1987 budget .
 ---pagebreak---                                           ANNEX
  1                                   1                                               1
                                      1    Expenditure to be borne by the EAGGF ,     1
  1                                   1              Guidance Section                 1
  1            Measures               1 Reimbursements |  Estimates     |     Total   1
 1                                    1     1984-86    1   1987-93      1             1
 1                                   1                 1                1             1
 1                                    1        ( a)    1      (b)       1  ( a) + (b) 1
 1                                   1                 1                1             1
 1 1 . Aids for the formation        1        P-m·     1        3       1       3     1
 1     of producer groups            1                 !                1             1
                                     11                11               11            11
 I
 1
 1 2.  Aids for investments           1                 1                1             1
 1     - Harvesting machines          1          8,5    1     27,5 1     1     36,0    1
 1     - Sprayers                     1          -      1       4,5 2    1      4,5    1
 1     - Other investments                                      1,5 3    1      1,5    1
 1                                    1                 1                1             1
 1                                    1                 1                1             1
 1 TOTAL                             1           8,5    1     36,5       1     45,0    1
1                                    1                  1               1              1
1     This estimate is based on investments carried out by Greece during the first
      three years of application of Regulation ( EEC ) No 389 / 82 taking the
      following factors into account :
      - extension of the geographical area of implementation of the measure to
        cover Spain and Italy ;
      - increase in the rate of Community reimbursement , from 40 % to 50 % ;
      - degree of mechanization achieved or to be achieved in the countries
        concerned .
2     300 machines X 60 000 ECU/machine X 50% X 50% = 4,5 million ECU
3     6 million ECU X 50% X 50% > 1,5 million ECU .
 ---pagebreak---                                          to                    ANNEXE  II
Fiche d' impact de certains actes Législatifs sur Les PME et l' emploi
  1 .  Obligations administratives dé ¬     néant
       coulant de l' application de la
       législation pour les entreprises
  2.  Avantages pour l' entreprise          - oui      / Β-Οβ-
           . lesquelles                     Impacts en amont et en aval pour
                                            les entreprises travaillant pour
                                            le secteur agricole .
  3.  Inconvénients pour l' entre ¬         - ©«4 / non
      prise ( coûts supplémentaires )
           . conséquences
                                                          •
  4.  Effets sur l 'emploi                  Pos i t i f s
  5.  Y a - t - il eu concertation pré ¬    - ©t«- / non
      alable avec les partenaires
      sociaux ?
          - avis des partenaires
              sociaux
 6.   Y a - t - il une approche altei–      - -otH- / non
      native moins contraignante ?
          . laquelle