CELEX: 51987PC0718
Language: en
Date: 1987-12-21
Title: Proposai for a COUNCIL REGULATION (EEC) amending Regulation (EEC) No 2261/84 laying down general rules on the granting of aid for the production of olive oil and of aid to olive oil producer organizations (submitted by the Commission)

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DOCUMENTS "COM"
COM (87) 718
Vol. 1987/0332
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                             COM(87 ) 718 final
                                             Brussels , 21 December 1987
                                   Proposai for a
                              COUNCIL REGULATION ( EEC )
    amending Regulation ( EEC ) No 2261 / 84 laying down general rules on the
             granting of aid for the production of olive oil and of
                     aid to olive oil producer organizations
                          ( submitted by the Commission )
                                        / '
   C0M(87 ) 718 final
 ---pagebreak---                                            2
                                     EXPLANATORY MEMORANDUM
1 . Regulations ( EEC ) No 2261 / 84 and No 2262 / 84 introduced from 1 November 1984
    a new system of checks on production aid for olive oil based on specific
    control agencies , computerized data files , Community sanctions , the olive-
    cultivation register and the producer organizations . Article 21 of Regulation
    ( EEC ) no 2261 / 84 provides that before the end of the third year of application ,
    the Commission has to submit to the Council a report on the working of the
    arrangements , accompanied by any necessary proposals for their revision .
2 . Despite the belated or partial implementation of the instruments of control
    provided for under the system and the membership since 1986 of two new produ¬
    cer Member States which are and will continue to be allowed certain specific
    exemptions during the first years of application of the Community aid system ,
    the results so far available show an improvement in the working of the system .
    This means that , when all the instruments provided for are fully operational
    and the system has been implemented fully throughout the Community , it should
    be possible to consider the situation to be at last satisfactory .
3 . Experience so far , the need to prevent overlapping in the work of different
    bodies and the advantages of ensuring that the controls are concentrated in
    the hands of the specific agencies , which were , after all , created for this
    purpose , have led the Commission to propose a change in the tasks carried out
    by the producer organizations , viz . that they should no longer carry out the
    chekcs on crop declarations . The progressive establishment of the olive-culti ¬
    vation registers removes the need for these checks , which , because of their
    complexity , have not always been carried out correctly .
    An amendment to this effect is also in line with certain wishes of the European
    Parliament and the Court of Auditors .
    A reduction in the tasks to be carried out by the producer associations means
    that the percentage of aid withheld to finance the control activities of the
    producers organizations and associations thereof can be reduced and that the
    criteria for distributing the sums obtained from this withheld aid should be
    changed .
4 . At the same time , experience has shown that criteria should be laid down for
    determining the small-scale producers ( production less than 200 kg of oil )
    to be granted subject to the aid at a fiat rate and the amount of the produc ¬
    tion aid including increases .
5 . IN July 1987 the Council decided to introduce a System whereby aid is granted
    up to a maximum quantity . It is therefore necessary to lay down the implementing
    rules for this system by amending Regulation ( EEC ) No 2261 / 84 . For this purpose ,
    and in line with the provisoins in force in other sectors , the Commission pro¬
    poses that a forward estimate be made at the beginning of each marketing year
    to determine the amount of the aid which can be paid in advance to the producers
    for the year in question , with a final production balcne being drawn up after
    the end of each marketing year , once the necessary figures are available . This
    balance is essential for determining both the final aid due to the producers ,
    where the maximum quantity has been exceeded , and the amount of olive oil to
    be carried over to the next marketing year , where production is less than the
    maximum quantity .
 ---pagebreak---                                          3
                                            Proposai
                                          for a
                         COUNCIL REGULATION ( EEC )
          amending Regulation ( EEC ) No 2261 / 84 laying down general rules
            on the granting of aid for the production of olive oil and
                     of aid to olive oil producer organizations
 THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
Having regard to Council Regulation No 136 / 66 / EEC of 22 September 1966 on the establishment of
a common organization of the market in oils and fats ( 1 ), as last amended by
Regulation ( EEC ) no 1915 / 87 ( 2 ), and in particular Article 5(4 ) thereof ,
Whereas production aid is no longer restricted to areas planted with olive
trees before certain dates ; whereas Regulation ( EEC ) No 1590 / 83 ( 3 ) should
therefore be repealed ;
Whereas criteria should be laid down for determining the olive growers whose
average production exceeds a given quantity ;
Whereas producer organizations should be relieved of certain tasks relating to
the checking of crop declarations , since there are now carried out by speciali ¬
zed agencies ; whereas the rules concerning the use of the amount withheld from
production aid for the producer organizations should be •               „ adapted ;
Whereas Regulation ( EEC ) no 1915 / 87 amended , inter alia , the system of aid for
the production of olive oil by laying down a maximum quantity of olive oil for
which the aid is payable ; whereas these productions provide that if the actual
quantity provided exceeds the maximum quantity , the unit amount of aid payable
shall be reduced by a coefficient ; whereas if the quantity produced is less
than the maximum quantity , the difference is to be carried over and added to
the maximum quantity fixed for the following marketing year ; whereas any reduc ¬
tion in the aid does not apply to small producers ; whereas rules should be laid
down for determining the final aid to be granted , for provisionally paying
the aid and for fixing estimated production and the actual quantity produced ;
whereas the aid is granted according to different criteria depending on whether
the olive growers are members of a producer organization and whether their
production exceeds a given quantity ; whereas rules should be laid down for
determining that quantity ; whereas Council Regulation (EEC) No 2261 /84 (4), as last
amended by Regulation ( EEC ) no 3763 / 86 ( 5 ), should be amended ;
(1 ) OJ  No 172 , 30.9.1966 , p. 3025 / 66
(2)  OJ  No L 183 , 3.7.1987, p. 7
(3)  OJ  No L 163 , 22.6.1983 , p. 39
(4)  OJ  No L 208 , 3.8.1984 , P. 3
(5)  OJ  No L 349 , 11.12.1986 , p. 10
 ---pagebreak---                                   -f-
Whereas experience in operating the production aid system is not yet suffi ¬
cient for a revision of that system to be proposed , especially as the system
is now being applied to two new Member States ; whereas the time limit for
submission of the report on the working of the production aid arrangements
should therefore be postponed ,
HAS ADOPTED THIS REGULATION :
                                       Article 1
Régulation ( EEC ) no 2261 / 84 is hereby amended as follows :
1 . Article 2(1 ) is replaced by the following :
    " 1 . Aid for the production of olive oil as defined in points 1 and 4 of the
    "     Annex to Régulation No 136 / 66 / EEC shall be granted ."
2 . In Article 2(4 ), the figure " 100" is replaced by " 200".
3 . Article 2(5 ) and ( 6 ) are replaced by the following :
    " 5 . The producer Member States shall détermine which olive growers are
    "     entitled to the aid calculated at a fiat rate on the basis of the
    "     average quantity of oil produced for which entitlement to aid has been
    "     recognised during the two previous marketing years .
    "     In cases where the necessary data is not avai labié or the olive grower
    "     has so amended entitlement shall be determined by multiplying the number
    "     of olive trees in production by the average of the olive yields and the
    "     oil yields fixed , pursuant to Article 18 , for the two previous marketing
    "     years ."
4 . The second indent of Article 6(1 ) is deleted .
5 . The third indent of Article 8(2 ) is deleted .
6 . The second indent of Article 11(1 ) ( b ) is replaced by the following :
    "- of the quantity of olive oil for which aid is granted ."
 ---pagebreak---   7 . Article 12(2 ) is replaced by the following :
       " 2 . The advance referred to in paragraph 1 to each grower shall not exceed
       "      the amount obtained by multiplying the unit amount of the aid , fixed
       "      pursuant to Article 1 7a C 1 ) , by :
       "     - the amount resulting from multiplying the olive yields and the oi l
       "         yields , fixed pursuant to Article 18 , by the number of olive trees
       "         in production as stated in the crop déclaration , or
       "     - the quantity mentioned in the application , if that quantity is less
       "         than that obtained in accordance with the preceding indent ."
 8 . The following Article is inserted in the Final Provisions :
       " Article 17a
       " 1 . The following shall be determined in accordance with the procedure laid
       "     down in Article 38 of Régulation No 136 / 66 / EEC , before 31 March in res -
      "      pect of the current marketing year :
      "      a ) estimated production ,
      "      b ) the unit amount of the production aid that can be paid in advance .
      "           That amount shall not exceed 70 % of the amount fixed by the Council .
      " 2 . Not more than six months after the end of the marketing year , the follo-
      "      wing shall be determined in respect of that year in accordance with the
      "      procedure referred to in paragraph 1 :
      "      a ) the quantity actually produced ;
      "      b ) the unit amount of the production aid obtained by applying the provi-
      "           sions laid down in the fifth subparagraph of Article 5(1 ), under ( b ),
      "           of Régulation No 136 / 66 / EEC , payable to producers whose average pro­
      "           duction exceeds 200 kilograms per marketing year ;
      "      c ) the quantity to be carried over the next year , if the actual quantity
      "           produced is less than the maximum quantity laid down .
      "3.    The Member States shall , before 31 January , communicate to the Commission
      "      their olive oil production estimâtes for the current marketing year . The
      "      Commission may avait itself of other sources of information and , where
      "      necessary , hâve studies or enquiries carried out relating to olive oil
      "      production ."
 9 . In the second paragraph of Article 19 , "( a )" is deleted .
10 . Article 21 is replaced by the following :
      " Article 21
      " Before 31 December 1989 , the Commission shall submit to the Council a report
      "on the working of the system of aid for the production of olive oil , accom-
      "panied if necessary by proposals for revision of the system ."
 ---pagebreak---                                       Artide 2
Régulation ( EEC ) no 1590 / 83 is hereby repealed .
                                     Article 3
This Régulation shall enter into force on the third day following that of its publ
cation in the Official Journal of the European Communities .
This Régulation shall be binding in its entirety and directly applicable in
ail Member States .
Done at                                                For the Council
 ---pagebreak---                                           ANNEX
1.  As such the measure is not likely to have any effect on the overall level
    of expenditure for each marketing year but it alters the breakdown of such
    expenditure by budget year .
     It should be noted that for the analysis of the budgetary implications of
     these amendments , assumptions must inevitably be made on the basis of
    factors which have turned out to be very risky , such as production levels ,
    and in particular the rates of payments in Member States , the irregularity
    of which has been noted in the past and which have a very direct effect on
    the level of expenditure for a given budget year .
2.  For 1988 the following are the assumptions used :
    1 . The measure is assessed in relation       to a situation in which the (
        reduction due to any amount by which the maximum guaranteed quantity . isL
        exceeded by the estimated production would have been applied immediately
    2 . Total production in the 1987 / 88 marketing year : 1 520 000 tonnes ( the
        maximum guaranteed quantity is 1 350 000 tonnes ).
    3 . Production of small producers ( exempted from the reduction for any
        increase in the maximum guaranteed quantity ): 50 000 tonnes .
   4 . Coefficient of amount exceeding to be applied to the rate of aid : 0.89 .
   5 . Weighted rate of aid after amounts withheld but without reduction :
        458.8 ECU / t .
   6 . Weighted rate of aid after réduction and after amounts withheld : 408.5
        ECU / t .
   7 . Weighted rate of aid for small producers after amounts withheld : 515.9
        ECU / t .
   8 . Percentage of payments for 1987 /88 marketing year falling in 1988 : 80% .
   9 . Double rate : 1.058 .
   Calculation of expenditure for 1987 / 88 relating to 1988 without the
   measure :
   1 470 000 t x 408.5 ECU:t x 0.8 x 1.058 = 508.3       mio ECU
        50 000 t x 515.9 ECU / t x 0.8 x 1.058 =    21.8 mio ECU
   Total : 508.3 + 21.8 = 530     mio ECU
   ( This calculation does not represent all appropriations required
   for 1988 as there is also expenditure corresponding to the previous
   marketing years which does not vary with the measure .)
   Calculation of expenditure for 1987 / 88 relating to 1988 with the measure ,
   or with advances of 70% :
   1 470 000 t x 458.8 ECU / t x 0.7 x 0.8 x 1.058 = 399.6 mio ECU
        50 000 t x 515.9 ECU / t x 0.7 x 0.8 x 1.058 = 15.3 mio ECU
   Total : 399.6 + 15.3 = 415     mio ECU
   Impact of the measure on 1988 :              *
   415 - 530 m ECU = - 115 m ECU ( savings )
 ---pagebreak---                                              ?
                                          - 2 -
3.  For 1989 , the following are the assumptions used :
    1 . Production in 1988 / 89 : 1 310 000 tonnes , which is therefore below the
        maximum guaranteed quant ity .
    2 . Weighted   rate of aid : 540 ECU / t
    3 . Percentage of payments for 1988 / 89 relating to 1989 : 80% .
   The adoption of the measure will hâve two effects on
   appropriation required for 1989 ;
   a ) increase by 115mio ECUcorresponding to savings in 1988 carried over to
        1989 .
   b ) reduction following payment of advances of 70% and carry-over of 30% to
        following financial year , estimated at :
        0.3 x 1 310 000 t x 540 ECU / t x 0.8 x 1.058 = 180 mio ECU
   The net impact of the measure on 1989 is therefore :
   + 115 1 ECU - 180 1 ECU = - 65 1 ECU .
           mio          mio           mio
 ---pagebreak---                                                                VI / 5391 /87-EN ( PGRA-2491 ) ADD . 1
           FINANCIAL              STATEMENT
                                                               Date : 1 December 1987
  1 . Budget heading : 1201 Production aid       Appropriations : PDB 1988 : 740 m1 ° ECU
                               for olive oil
 2 . Title : Council Regulation amending Regulation ( EEC ) No 2261 /84 laying down
      generai rules on thè granting of aid for thè production of olive oil and of
      aid to olive oil producer organiz.ations
 3 . Legal basis : Article 5 ( 4 ) of Régulation No 136 / 66 / EEC
4 . Aims of project : To amend the general rules on the granting of production aid
      in particular as regards the determination of the final aid to be granted to
      producers and of the advance .
                                               period of          current            following
                                               12 months     financial year        financial year
5.      Financial implications                                      ( 1988 )            ( 1989 )
5.0     Expenditure
        - charged to the EC budget
          ( refunds / intervention )                        - 115 mio ECU           - 65 mio ECU
        - national administration                               ( savings )           ( savings )
        - other
5.1     Receipts
        - own resources of the EC
          ( levies / customs duties )
        - national
5.0.1 Estimated expenditure
5.1.1 Estimated receipts
5.2 Method of calculation : See Annex
6.0 Can the project be financed from appropriations entered in the relevant chapter
       of the current budget ?                                                           yes
6.1 Can the project be financed by transfer between chapters of the current budget ?
                                                                                         yes /no
6.2 Is a supplementary budget necessary ?                                                yes /no
6.3 Will future budget appropriations be necessary ?                                     yes /no
Observations :
 ---pagebreak---                                         \Ô
                                                                      ANNEXE II
Fiche d' impact de certains actes Législatifs sur Les PME et l' emploi
     1.      OBLIGATIONS ADMI NI STRATIVES DECOULANT OE L ' APPLICATION DE LA
            LEGISLATION POUR LES ENTREPRISES
     2.     AVANTAGES POUR L' ENTREPRISE
            - BAI / NON
            - LESQUELLES
    3.      INCONVENIENTS POUR L' ENTREPRISE
            ( coût supplémentaires )       ^
            - BBB / NON
           - CONSEQUENCES
    A-     EFFETS SUR L ' EMPLOI                                                     J
                                                                                    I
                                                                                    j
    5.     Y A- T- IL EU CONCERTATION PREALABLE AVEC LES PARTENAIRES               j
           SOCIAUX ?                                     ■                         i
                                                                                  i
           - «11/ NON                                                            j
           - AVIS DES PARTENAIRES SOCIAUX                                .       j
                                                                                j
                                                                               i
                                                                               !
    6.     Y A - T - IL UNE APPROCHE ALTERNATIVE MOINS CONTRAIGNANTE ?         1
           Néant                         ...                                  :
  NB : Cette proposition de règlement est nécessaire au bon fonctionnement
        du marché de l' huile d' olive t n' aura pas d' effets sur la compétiti ¬
        vité des entreprises ou sur l' emploi .