CELEX: 51979PC0528
Language: en
Date: 1979-10-08
Title: PROPOSAL FOR A COUNCIL REGULATION (EEC) CONCERNING ASSISTANCE FROM THE GUIDANCE SECTION OF THE EAGGF IN RESPECT OF EMERGENCY MEASURES TO RECONSTITUTE THE AGRICULTURAL AREAS OF THE FRENCH OVERSEAS DEPARTMENTS DAMAGED BY HURRICANES "DAVID" AND "FREDERICK" (presented by the Commission to the Council)

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COM (79) 528
Vol. 1979/0181
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 ---pagebreak---  COMMISSION OF THE EUROPEAN COMMUNITIES
                                                      COM ( 79 ) 528 final
                                                      Brussels / 8th October 1979
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                      PROPOSAL FOR A COUNCIL REGULATION ( EEC )
                  CONCERNING ASSISTANCE FROM THE GUIDANCE SECTION
                   OF THE EAGGF IN RESPECT OF EMERGENCY MEASURES
                   TO RECONSTITUTE THE AGRICULTURAL AREAS OF THE
                      FRENCH OVERSEAS DEPARTMENTS DAMAGED BY
                        HURRICANES " DAVID " AND " FREDERICK "
                   (presented by the Commission to the Council )
COM ( 79 ) 528 final
 ---pagebreak---                                 EXPLANATORY MEMORANDUM
Between 30 August and 3 September 1979 hurricanes "David " and " Frederick "
devastated the French departments of Martinique and Guadeloupe .    Thanks to the
precautionary measures taken by the local authorities , losses in terms of
human life were very small .
                    /         .
However , certain infrastructures , and agriculture in particular , a vital
economic asset in these areas , suffered considerable damage , estimated in
total at 800 million French francs .
The national and local authorities have borne the full cost of restoring the
electricity supply , bublic buildings , school buildings and sports
installations , besides the living environment .
The French Government has asked the Commission to bear half of the costs of
the financing , which will make possible the speedy restoration of the
agricultural potential of these Departments , reserving the right to call in at
a later date , by normal procedures , the FEDER for the purpose of rebuilding
certain infrastructures , relating essentially to the road network .
Since agriculture is involved here , an emergency measure is necessary , which
requires an exceptional procedure and this is the subject of this
                                                                                ••
communication .
A delegation composed of French experts and a representative of the Commission
went to the area in . order to assess the extent of the damage and to form an
opinion as to the measures to be taken to restore agricultural holdings as
speedily as possible .
Banana production , which represents 60& of the agricultural potential of
Martinique and Guadeloupe , has been all but wiped out ;   it will be able to
resume in two years time provided that clearing and replantation work is
undertaken very quickly ;   otherwise , apart from considerable lo3se3 in
earnings , which these islands' economy can ill afford , 20 000 jobs will
disappear , thereby doubling the number of unemployed .
 ---pagebreak--- The cost of this work represents 80% of the costs inherent in the agricultural
sector , the other areas of financing proposed relating to the restoration of
orchards and some irrigation work .
In ally the French Government expects to cover 40 ^ of the cost of the work and
is requesting an equivalent amount of aid from the EEC .
In order to give a favourable reply to this request , special arrangements must
be made , since the "Guidance " section of the EAGGF has no appropriations
relating to suitable Regulations .        -
However , out of the 1979 budget , a certain number of appropriations "will not
be committed during the current financial year .
It is thus proposed to the Council , following an Opinion from the Parliament ,
to take a decision on the two following points :
- introduction of an amending budget for the 1979 financial year , creating a
new budget line for the "Guidance " Section of . the EAGGF , thereby enabling
12 mEUA set aside for the special measure in question to be committed ;
- adoption of an " ad hoc " Regulation in order that the EEC may finance MOSK of
the costs necessary for restoring agriculture in the French Departments of the
Antilles , using the above-mentioned new budget line .
Details of the costs are annexed .                             -
 ---pagebreak---                                     PROPOSAL FOR
                     COUNCIL REGULATION ( EEC )
  concerning assistance from the Guidance Section of the EAGGF in respect of
                              V
    emergency measures to reconstitute the agricultural areas of the French
      overseas departments damaged by hurricanes " David and " Frederick"
 THE COUNCIL OF THE 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 ,
 Whereas hurricanes " David" and " Frederick" have caused considerable damage
 to agriculture in Martinique and Guadeloupe;
 Whereas the Community should contribute towards repairing this damage;
 Whereas measures to benefit agriculture in these areas further the aims
 defined in Article 39(1)(a ) of the Treaty; whereas they 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
                      1
                      J     •                  – Ê . •         *•       2
                                                                   « '1AU
 agricultural policy , as last amended by Regulation ( EEC ) No 929/ 79 ;
              !    -              ,       ■ •            '
 Whereas Community aid must be concentrated on the areas most badly
 affected;       .
 Whereas the procedure for granting and paying the aid must be the most
 rapid possible without, however, the need for sound management of the .
 Community 's financial resources being neglected,
HAS ADOPTED THIS REGULATION :
         ·,■·· ■                                             ν
 loJ No L 94, 28.4.1970, p. 13
 *0J No L 117, 12.5.1979, p. 4
 ---pagebreak---                                 Article 1
1.   A common measure for the purpose of reconstituting the agricultural
     areas damaged by hurricanes " David" and " Frederick" shall be insti-
     tuted
2.   The range of measures provided for by this Regulation shall constitute
     a common measure within the meaning of Article 6(1 ) of Regulation
     ( EEC ). No 729 / 70 .
3.   Expenditure incurred after 30 August 1979 relating to the restoration
     of destroyed crops, in particular the banana plantations, and the
     repair of installations necessary for crop growing shall be eligible
     for charging to the Guidance Section of the EAGGF .
                                Article 2
1.   The French Republic shall submit an application for aid to the
     Commission before 15 November 1979 .
2.   The Commission shall decide on the granting of assistance from the
     Guidance Section of the EAGGF by 31 December 1979 .    ,
3.   The Commission shall as far as possible consult the Standing Committee
     on Agricultural Structures, at the periodic meetings of that
     Committee, on the essentials of the draft Decision without such
     consultation preventing its adoption within the time period stated
     above ; failing this, the Commission shall inform the Committee as
     soon as possible of the decision which it has taken ,                 V
                                Article 3
The application for aid shall include at least the following information :
-a brief description of the general situation, particularly with regard
     to the damage caused to agriculture ;
     description of the work to be carried out ( in particular / the number
     of hectares concerned, the nature of the work envisaged , the geogra­
     phical extent of the work);
   . an estimate of the cost by category of work ;
                                                                  N
     the schedule envisaged for the work and the expenditure;
-    the amount of aid. provided for by the French Government ;
     the amount of aid requested from the Guidance Section of the EAGGF .
 ---pagebreak---                                 Article 4
1.   Assistance from the Guidance Section of the EAGGF may not exceed :
           an amount equal to the aid granted by the French Republic ;
           12.2 m ECU for the restoration of destroyed crops , including 10.6
           m ECU for the banana plantations ;
           0.6 m ECU for the repair of installations necessary for crop
           growing .                            ,
2.   Advances may be granted of up to 80% of the Community aid provided
     for .                           . '
3.   The balance will be paid only on productionof a statement justifying
     the expenditure and of a report on the execution of the work/ to be
     submitted no later than 1 October 1980 .
4.   The anticipated cost of the measure is 12 million EUA .
                                Article 5
This Regulation shall enter into force on the third day following that of
its publication in the Official Journal of the European Communities .
This Regulation shall be binding in its entirety and directly applicable in
all Member States .
Done at Brussels ,                                            . '
                                                    For the Counci I
                                                   The President
 ---pagebreak---   j                     FINANCIAL STATEMENT                                              j| PATC »        27.9.1979
I 1. rW.T LTKS CO'lCUKVl.D I                8131 (to be created)                                                                     |
      2 . action ■                          Emergency measures to reconstitute the agricultural areas
                                            of the Trench overseas departments damaged by hurricanes
                                            " David" and " Frederick "
I i. VZZKL BASIS t                          Article 6 of Regulation 729/ 70
     4 . OBJECTIVES «                       To provide Community aid to the affected areas and to
                                            promote the speedy restoration of normal operations
     5. FIN' AJ.'CIAL COR.-SKQ'J^CE                  FOR THE KARKCTIBO YEAS   CURR2JT FINANCIAL YEAS       FCLLOWIKC FINANCIAL TEAS
     5.0 udr.'Dirjaz                                                                 ( 79 )             ■         I 80     )         i
          -C!lAR<;r:3 TO TKB KC PU DOET                                          Τ7Γ                       –TK       '        –Pff
           ( KJhru x/; ntijí vem o:;j )                                           12               9.6      token entry        2.4   j
          -CKAR0E3 TO I.'ATICVAL AOKINISTR.                                       12               9.6     token entry         2.4   I
          -Cir^HCJTD TO OTHER KATI 0!IAt CROUPS
    5.1 ΡΚ-τπγγ:                                                                                                   /
                             or ns ec
                 1S:/CJ3T0:5 DUTIES )
          –NATIONAL
                                                             1979                                                 1981          1982
                                                     YEAS)                                                 YEAR
    5.0.1 FU.'RIA.VVUAl PATTIMI Cf EXFC.'DITURE ( A )          12                      token entry
    5.1.1 plurijlwjal pattaci or receito
    'j.2 KLTiibs OP CALCUUTIWT              See Annex
    6.0 FINANCING TSCZIBIS WITH CREDITS INSCRIBED IN RSLEVAKT CHAPTER OF CUR-TEXT BUDGET T                             ΥΕ5/ΧΌ
    6.1 FINANCING FC-3IBU: BY TP.UiZrZR         /liZZI CHAP7EHS CF CUJUL-Vr BUDCiT ?
    <*.2 M c.-i.Jirr KCH A surra:–; TAAY BUDGET ?
 [ (' • J CK–iiTî# 70 bu            I !iT0                 T        '                                               .«fr» '
 !                                                                    •                                .
    CO:OÔ2.'T5 1
 ---pagebreak---                                       ANNEX
1.   R§STgRATigN_OF_DESTROYED_CROPS
     (a)    Banana plantations
            Average cost per hectare : 10 000 FF = 1.815 (agricultural ) ECU
            Number of hectares :  14 500 hectares
            Total cost :  26.3 million ECU
                          including 40% borne by the Member State : 10.52 m ECU
                          and       40% borne by the EAGGF        : 10.52 m ECU .
   . ( b)   Other crops
            The overall cost of restoring other crops (mainly avocados,
            flowers, plants and shade plants for an area of 500 to 600
            hectares ) is estimated as follows :
            - borne by the Member State : 9 000 000 FF = 1.65 m ECU (agricultural )
            - borne by the EAGGF        : 9 000 000 FF ~ 1.65 m ECU (agricultural )
2.   REPAIRS_T0_INSTALLATI0NS_NECESSARY_FgR_CR0P_GR0WING
     The overall cost of repairs to irrigation systems and various
     hydraulic works is estimated as follows : .
     - borne by the Member State : 3 250 000 FF = 600 000 ECU (agricultural )
     - borne by the EAGGF          : 3 250 000 FF « 600 000 ECU (agricultural ).
3.   TOTAL COST OF TH E_EAGGF_MEASURES
                                           /
     10.52 + 1.65 + 0.6 = 12.77 million ECU (agricultural )
     12.77 x 5.50961      ^ million European units of account
          5.86133
     Payment appropriations : 80% of 12 m EUA in 1979 = 9.6 m EUA
                                 Balance in 1980         a 2.4 m EUA .