CELEX: 51987PC0429
Language: en
Date: 1987-12-03
Title: Proposal for a COUNCIL REGULATION (EEC) amending Regulation (EEC) No 1820/80 for the stimulation of agricultural development in the less-favoured areas of the West of Ireland (presented by the Commission)

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COM (87) 429
Vol. 1987/0227
 ---pagebreak--- Disclaimer
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                          COM(87 ) 429 final
                                                          Brussels , 3 December 1987
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                                          Proposal for a
                                    COUNCIL REGULATION ( EEC )
 amending Regulation ( EEC ) No 1820 /80 for the stimulation of agricultural
        development in the less-favoured areas of the West of Ireland
                             (presented by the Commission )
C0M(87 ) 429 final
 ---pagebreak---                                                                         CsM -
                                EXPLANATORY MEMORANDUM
  In 1981 the Council adopted Regulation ( EEC ) No 1820/80 which provided for an
  agricultural development programme to stimulate the development of agriculture
  in the West of Ireland . The programme , prepared by the Irish Government and
  implemented since April 1981 , provided for aids for :
 a ) the improvement of public amenities in rural areas ,
 b ) land improvement ,
 c ) the introduction of a specific development action aimed at the orientation
     of farm production ,
 d ) forestry development ,
 e ) the provision of training facilities , specialized support services for
     advisers and the co-ordination of the specific action under c ).
 In addition extra funding was provided in the Regulation for the improvement
 of processing and marketing facilities outside the programme . EAGGF ( Guidance
 Section ) was to reimburse 50% of eligible public expenditure under the fund .
Progress with the measure was reviewed after four years of implementation . Of
the original 415 MECU provided in the programme 104 MECU were expended at the
end of 1985 corresponding to 49.5 MECU of EAGGF reimbursement . However ,
progress with the measure has been uneven . On the one hand good progress has
been recorded with the improvement of public amenities and parts of the land
improvement measures . On the other hand the farm improvement plan under the
orientation of production measures was not operated in the early years , while
more recently this plan has been largely superseded by the farm improvement
plan introduced under Regulation ( EEC ) No 797 / 85 . Progress with the forestry
measures has been very slow but has been increasing in recent years , while
certain parts of the provisions for training have progressed although other
parts have been relatively slow .
The present proposal would amend the basic Regulation to take account of the
progress made to date as well as a number of recent relevant changes . It is
proposed to amend the financial limits to EAGGF eligibility of certain
expenditure to take account of progress outlined above . It is thus proposed
to increase EAGGF funding for land improvement . At the same time the
orientation of production ( farm improvement plan orientated towards beef / sheep
production and the interest rate subsidy for integrated calf to beef
production systems ) would be discontinued . In their place aid is proposed for in¬
vestments in basic livestock housing , in the storage of fodder and asso¬
ciated silage and animal effluents in order to help tackle the chronic problems ot
inadequate facilities for wintering animals in the Region as well as to control pol¬
lution from animal waste and silage effluent . In addition a series of measures are
proposed aimed at improved living conditions for farmers and the development of farm
families' incomes through non-farm enterprises .
 ---pagebreak---                                        3“
   The proposal would extend these measures to all of the less-favoured areas of
   Ireland . The proposal also takes account of changes resulting from other legis¬
   lation . Thus the reference to the Regional Fund Regulation is updated . The mea ¬
   sure for forestry is updated to take account of the changes in Regulation ( EEC )
   N° 797/85 . A monitoring committee is introduced to follow the progress of the
  programme with the aim of a more effective application of the measure .
  Over the period of application of the programme Ireland has had increasing diffi ¬
  culty in funding the measures . The level of public indebtedness has now reached
  high levels ( Ireland 10 % of G.D.P. , Greece 10.4 %, Portugal 10.3 % , EEC-12 4.6 %)(1 )
  and the Irish Government must introduce measures to reduce public spending in al ¬
  most all sectors in order to bring Government expenditure under effective control .
  At the same time there is a need to provide funding for the continuation of these
  measures and in view of need to promote the development and structural adjust¬
  ment of the less-developed regions such as Ireland it is proposed to increase the
  amount of EAGGF reimbursement from 50 % to 70 % .
  All of these' changes when taken together with the progress to date result in a
  saving on the original estimated cost of the Regulation and this is reflected
  in a reduced cost proposed .
  ( 1 ) Net borrowing by General Government as % of Gross Domestic Product in 1987 .
        Source : Provisional figures for Economic Forecasts 1987-1988 : unpublished
        data DG II .
I
 ---pagebreak---                                                  f
                                        Proposal for a
                                 COUNCIL REGULATION ( EEC )
             amending Regulation ( EEC ) No 1820 / 80 for the stimulation of
               agricultural development in the less-favoured areas of
                                     the West of  Ireland
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community , and
in particular Articles 42 and 43 thereof ,
Having regard to the proposal from the Commission ^\
                                                                 (2)
Having regard to the Opinion of the European Parliament              ,
Whereas pursuant to Council Regulation ( EEC ) No 1820 / 85            as last amended by
                                (4 )
Regulation ( EEC ) No 3768 / 85      , Ireland is implementing an agricultural development
programme in the West of Ireland in order to stimulate the development of
agriculture for the purpose of bringing about a significant improvement in
agricultural structures and in scope for agricultural production in the
areas concerned ;
Whereas the programme has been reviewed after its first four years of
implementation in accordance with Article 2(4 ) of Regulation ( EEC ) No 1820 / 80 ;
Whereas good progress has been reported on measures to improve agricultural
 infrastructures and land ; whereas other measures such as forestry and the
orientation of production have shown disappointing results ; whereas it is clear
 that all of the funds allocated cannot be disbursed in the time available and
 savings are assured in the global cost of the measure ;
 ( 1 ) OJ No L
 ( 2 ) OJ No L
 ( 3 ) OJ No L 180 , 14.07.1980 , p. 1
 ( 4 ) OJ No L 562 , 21.12.1985 , p.8
 ---pagebreak---                                                                                                            I
                                                                                                          J
Whereas it is opportune to extend the measure to all of the less-favoured                                  i
areas of Ireland within the meaning of Council Directive 85 / 350 /EEC of 27 June 19R5 conceminc'
                                                                                                          ■]
the Community list of less-favoured farming areas within the meaning of
Directive 75 / 268 / EEC ( Ireland ) ( 1 ) ;                                                               !
                                                                                                           I
                                                                                                           1
Whereas in order to ensure the continuation of th© development of the
less-favoured areas of Ireland and to take account of the modification of                                  {
less-favoured areas , it is necessary to amend the measure and the limits of                                !
                                                                                                             :
EAGGF contribution ;       whereas it is opportune to allow a certain flexibility in
these limits at the discretion of the Commission without , however , increasing
the overall cost of the common measure ;
Whereas with the introduction of the farm improvement plan under Title I of Council Regu¬
 lation (EEC) to 797/85,^ as last amenoeci by Regulation (EEC) 1760/87^, the farm irr^rovanent plan under
 Regulation (EEC) No 1820/80 can no longer play a useful rOle in     the development of
agriculture in the less-favoured areas of Ireland ;                whereas nevertheless there
is a need for complementary measures aimed at improving farm families' living
standards through improved living conditions and the development of their
incomes through activities other than traditional farming ;
 Whereas owing to the chronic problems of wintering grazing livestock on farms in the
 Region there is a need for investment in basic livestock housing including
 fodder storage buildings and associated works to control pollution from animal waste
 and silage effluent ;
Whereas there is a need for closer coordination of the programme which can
 best be provided by the introduction of a monitoring committee to follow the
 implementation of the programme ;
 Whereas , having regard to the re-organisation of the Structural Funds and the empha ¬
 sis to be put on backward areas of the Community , it is appropriate to increase the ratt
 of Community participation in the cost of the measures from 50 X to 70 % .
 Whereas the net result of these modifications and the savings in the first period
of application will give a reduction in the overall cost of the measure of 20 MECU ;
(1)   °J No L 187 , 19.07.1985
(2)                                        1
 (3)
     °J N° L 93, 30.3.1 985, '
      0J No 167, 26.6.1987, p .
 ---pagebreak--- HAS ADOPTED THIS REGULATION :
                                                    Article 1
Regulation ( EEC ) No 1820 / 80 is hereby amended as follows :
1.       In the title , the words " of the west " are deleted .
 2.       Article 1 is amended as follows :
    ( i ) paragraph 2        is replaced by the following :
        " 2 . The common measure shall apply to the less-favoured areas of Ireland
                within the meaning of         Council Directive 85/350/EEC*
                *0J No L 187, 4.7.1985, p.1
    ( ii ) the following point is added to paragraph 3 :
         "( g )    improvement of farm families' living conditions and the development
                   of their incomes through activities other than traditional farming ."
 3.     Article 2 is amended as follows :
         (i)       in paragraph 1(a ) the figure VI is replaced by VI A ,
         ( ii )    paragraph 1(c ) is replaced by the following :
                   ( c ) "the provisions for coordination with any other programmes or
                          measures which may influence the development of agriculture in
                           less-favoured areas ."
         ( iii ) in paragraph 2       the first sentence is replaced by the following :
                   "The programme     shall also include the information referred to in
                   Articles 5 , 7 ,   8(4),9 , 13 , 15 , 18 and 18B ."
         ( iv) paragraph 3 is         replaced by the following :
                   "3 .   All measures referred to in the common measure must fall within
                           the framework of the regional development programme when
                           Ireland is obliged to forward it to the Commission under
                          Article 2(3 ) ( a ) of Council Regulation ( EEC ) No 1787 / 84 of
                           19 June 1984 establishing a European Regional Development Fund .  **
                           "**0J No L 169, 28.6.1984, p.1 "
          (v)       paragraph 4 is replaced by the following :
                    " 4 . The duration of the programme shall be at least the same as that of
                      the common measure . It shall be reviewed every four years . It may relate
                      to the less-favoured areas as a whole or to any area within those areas .
 ---pagebreak---         ,4 .      In Article 6 ,    point ( 0 ) is replaced by the following :
                "( b ) the fencing and pasture improvement of mountain and hill pasture held in
                       individual ownership , without prejudice to the provisions concerning the
                       joint use of pastures set out in Article 17 of Regulation ( EEC )
                       No 797 / 85 ".
         5.       Article8 is amended as follows :
           ( i ) in paragraph 2(a )     the words " in the uestern region, with a particular emphasis
                 on meat production" are deleted .
           ( ii ) the following subparagraph is added to paragraph 3:
                 "The fund may contribute to the cost of publicity programmes encouraging
                 farmers to participate in the programme ."
          (iii ) the following paragraph is added :
                 "4 . The fund may contribute to activities aiming at the encouragement of new
                       farm products or new systems of production,particular priority being given to
                       non-food products . The programme shall include information on the
                       application of this measure and the new farm products or systems to be
                       aided . In approving the programme in accordance with Article 3(2 ), the
                       Commission shall decide on the eligibility of these activities taking
                       account of the orientations of the Common Agricultural Policy ."
       6.        The following paragraph is added to Article 11 :
                 ”4 . Article 10 and       this        Article shall apply to improvement plans
                 approved before 30 June 1987 ."
         7 - The following Article is inserted after Article li :
                                                   "Article 11A
  Within the framework of the specific action referred to in Article 8(1 ) aid for invest ¬
  ments shall be granted to farmers without an improvement plan under Regulation ( EEC )
  N*' 797 /85 for
( a ) basic winter housing for grazing animals ,
(b) 1 the storage pf | fodder incj.uding'appropriate
               storaae nfof animal
                                       including' appropriate silage efflupnt
                             animal uaQtac
                                      wastes ..^                          1
                                                                                tanks! pnd ,
( c ) •Tha
      the stnranp
               storage   of  animal   wastes                              1
  The aid provided shall not exceed that available to farmers with an improvement plan
  not providing a labour income in excess of 120 % of the reference income under Article 2
  of Regulation ( EEC ) N® 797 /85 . The limits-to investment eligible for aid as laid down
                                                                       II
  in that Regulation are not modified by this regulation .
 ---pagebreak---                                             -ъ-
O.    In Article 12 , point ( a ) is replaced by the following :
      "( a ) the afforestation of agricultural land suitable for forestry ;"
 9.   in Article 13(a ) the word "marginal " is deleted .
1U.   Article 14(2 ) is replaced by the following :
      " 2 . The main objective of the training centres referred to in paragraph 1
             shall be to organize training courses for the improvement of
             agricultural skills as defined in Title VII of Regulation ( EEC )
             No 797 / 85 ."
    ■ After Title VI        the following title is inserted :
                                         "Title VI A
                                   Complementary Measures
                                       Article 18A
      1.     The   measures   referred  to   in  Article 1(3)(g )   shall  aim  at
             improving farm families' living standards through improved living
             conditions and the development of their incomes through activities
             other than traditional farm enterprises .
      2 . ( a ) Measures aimed at improved living conditions for farm families may
                 include :
                 - investment for improving farm dwelling houses or in new farm
                   dwelling houses where the improvement of the existing dwelling
                   house is not appropriate ;   priority   shall be given to farms
                   where succeeding adult generations are living on the farm ,
                 - investment in energy producing and saving projects ,
                 - investment in individual water supplies and sewerage systems
                   where economically justified ;
           ( b ) Measures aimed at the development of farm families' incomes
                 through non-farm enterprises may include :
                 - investments in such enterprises carried out by farmers ,
                 - investment by farmers to provide services for other farmers .
      3.     Agriculture shall remain the principal economic activity of the
             beneficiaries of the individual measures referred to under this Title .
 ---pagebreak---                                               Article 13B
      The programme referred to in Article 1(4 ) shell contain the following
      information ;
     (a )   a description of the living conditions for farm families and the
            measures proposed to improve these ;
     (b )   a description of the level of non-farming activities on farms and the
            opportunities open to increase farmers' incomes from these through
            their own activities ;
     (c )   a description of the services required by the farming population and
            the opportunities available for farmers to provide these services for
            their neighbours and a description of the provisions taken to avoid
            over-equipment •"
12 . Article 20 is amended as follows :
     (i )   paragraph 1 is  replaced by the following :
            "1 . The period of time envisaged for the implementation of the coranon measure is 10 years
             from the date  of approval of the programme ."
     (ii ) in paragraph 2,  the words "240 million ECU" are replaced by "220 million ECU".
13.   Article 22(2 ) is replaced by the following :
      " 2 . The fund shall reimburse the Irish Government the following
            percentage of its actual expenditure :
            ( a)   50% for the measures under Article 4 ;             however, this amount may
                   not exceed 40% of the total cost , with a maximum eligible amount
                   of :
              - 24.2 million ECU for electricity supplies
              ~ 83.2 million ECU for drinking water supplies
             - 72.6 million ECU for farm roads and local roads .
              However for expenditure made after 31st December 1987 the rate of re¬
              imbursement shall be increased to 70 X for these measures while not
             exceeding 60 % of the total cost .
 ---pagebreak---                                         - lo­
 (b ) 50 X for the other measures or 70 % for these measures for expenditure made
      after 31 December 1987 , with the exception of the measures under Article 18A(2)(b )
                                                                                               Ï
      second indent with a maximum eligible amount of :                                       j
      - 560 ECU per hectare under Article 6(a ) and (b);                                      j1
      - 600 ECU per hectare under Article 6(c ); however this amount may be increased
         up to 1,000 ECU per hectare up to a total area of 45,000 ha;
      - 0.85 million ECU under Article 8(3 );                                                    !
      - 0.70 million ECU under Article 8(4 );                                                    !
      -10.00 million ECU under Articles ,'14 ; and 16; as regards Article 16 , the eligible i
        amount shall relate only to the creation of the development centre;                   j
      - 3.00 million ECU under Article 11(1 );                                                   j
      - 0.70 million ECU under Article 11(3 );
      -11.75 million ECU under Article 1 1 A with a maximum eligible investment of
        25,000 ECU per farm ;
      - 1,400 ECU per hectare up to a maximum total expenditure of 27.2 million ECU
         under Article 12 ;                                                                  .
      - 40,000 ECU per farm under Article 18A with a maximum total expenditure of
         5.0 million ECU ;
      However, if it proves necessary at a later stage , the Commission may at the
      request of the Member State concerned, adjust the above maximum amounts under         j
      the procedure referred to in Article 25 provided that the total amount of eli ¬
      gible expenditure does not exceed 300 million ECU ."                           -
14 .   The following Article is inserted after Article 23 :
                                    ” Article 23 A                                              I
                                                  –                                            |
                                                                                               i
                                                                                               !
                                                                                               i
      For the purposes of the common measure , a Monitoring Committee shall be
                                                    ..   • a •  M                L .          «
                                                                                              {
       set up by mutual agreement between the Commission and the Irish                         j
      Government . -                                   '                                       j
      The Monitoring Committee shall assist the Irish Government or , where
       applicable , the authority appointed by the latter , in the
       implementation of the common measure ."                                                j
                                                                                              |
                                                                                              1
                                                                                              |
 ---pagebreak---                              Article 2
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 l
                                                     The President
 ---pagebreak---        FINANCIAL.
       • .                    STA T f.M tS WT               cáncer», i r.gs : i>opübdl
                                                                              p »r .. , VJ,. +tur
                                                                                               , „ a. Regulation
                                                                                                      0t¡. , * •         ..
                                                                                                                    amending
Council Regulation ( Etc ) No- ( 820 / 81) for the stimulation of agricultural development
in the less-favoured areas of the Wr>st of Ireland
   1 . Budget hnadlng : me        Tie# ; 3221          Title : indirect regional measures
   2. Legal basis : Article 43 oV i he Treaty                                                                                   )
   3 . Classification :                                                                                                         i
                                   Cc/Bpi'l sory axpendl twr-b
  K. Puroose/doscription of the eeasure : Extension ot the scheme to all the less-favoured areas !
of Ireland and amendment of certain measures and financial limits with the aim ot
making the scheme more effective .                                                                                              *
                                                                                                                                i
  5.     Method of calculation
  5.1 Fora of expenditure : reimbursement of national expenditure with the possibility oi
                               advances
  j.2 Coaeunity contribution : 50% of the eligible national expenditure realised ip to the end
         of 1987 and 70 % from 1.1.1988 with the exception of measures of Article 18 A (b) 2na : indent .
  5.3    Calculation : see annex
 6.     Financial iaplicatlon as regards operating appropriations
 6.1 Schedule of coaaltaent appropriations and payaent approprlj tlons (a ECU )
                     Year                          C.A.                        P.A.
                     1981-86                       60 actual EAGGF guidance expenditure > 50 % of eligible
                     1987                            9                                                       ) national expenditure
                                                                                                                        expendi
                     1988                          20 )
                     1989                          34 )     70 % ot eligible national expenditure .
                     1990                          34 )
                     following years               23 )
                                                 *180 "
                     Total
 6.2 financing during current year . provided for in the budget
 7. Observations : The total estimated cost of the measure is reduced by 20m ECU as a
                      result of the amendments to the eligible costs .
                      The difference of 40m ECU between the estimated cost specified in
                      Article 20 of the amended Regulation ( 220m ECU ) and the figure of
                      180m above represents the mount provided for in Regulation 3073 / 82
                      for projects to improve processing and marketing facilities .
                      The commitments for these projects have been charged to Article 301
                      of the budget , which is not dealt with by this financial statement .
 ---pagebreak---                                       ANNEX     fO    THE   FINANCIAL    STATEMENT
                  .     ...              ...   ......  troni i4.4.rti i-rom 1.1.88
Eligible pallonai expendi r : : r n in mi IL . Luti    t:o
                                                                      ,i.o  IO . 4.7 i
                                                                      - ..             ~i
  Infrastructure                                           110               70           130
  Land improvement                                          26               55            ó'ì
                                                 •j >
  Orientation of Agricultural, production                    ?               Ίο            ■G · Λ
  Forestry development                                       7               20            27
  Agricultural training                                      s                 5           10
                                        2)
  Improvement of living conditions                            '
                                                                               5               5
  TOTAL                                                    150             150            300
  Rate of reimbursement                                     50 %             70 %
  EAGGF reimbursement in mill . ECU                         75             105            180
  1)
     Measure substantially amended by this proposal
  2)
     New measure .
 ---pagebreak--- DOC . SEC   ( 86 ) 835
                                                               ANNEXE   II
Fiche g 'impact de certains actes législatifs sur [ es 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      / n-oo-
          .    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.   V a - t - il eu concertation pré ¬    - ©«4 - / non
      alable avec les partenaires
      sociaux ?
          . avis des partenaires
              sociaux
 6.   ï a - t - il une approche altei–      - -otH- / non
      native moins contraignante ?
          . Laquelle