CELEX: 51982PC0032
Language: en
Date: 1982-06-17
Title: Proposal for a COUNCIL DECISION authorizing the United Kingdom to permit the Isle of Man authorities to apply a system of special import licences to sheepmeat and beef and veal (submitted to the Council by the Commission)

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COM (82) 32
Vol. 1982/0013
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                COM(82)32 final
                                                Brüssels , 17 Juni 1982
                             Proposal for a
                            COUNCIL DECISION
               authorizing the United Kingdom to permit the Isle
               of Man authorities to apply a system of special import
               licences to sheepmeat and beef and veal
        ( submitted to the Council by the Commission )
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 ---pagebreak---                               EXPLANATORY M^RAHDUM
 I NTROIJUGT 1 0 M
 The Isle of Man is one of the British Islaads situated in the middle of the Irish
 S ea j and in the peripheral maritime region of Europe, It is not part of the
United Kingdom ,, "but it is a British Crown dependency„ It has a large degree of
 internal self Government "but external affairs and defence are the responsibility
 of the UK Government® There is a population of approximately 6$ 000 persons ,
 and a further 50G 000 tourists visit the islsad daring the suaua-sr months®
 The Treaty of Rome is declared to apply to the Isle of Man to the extent necessary
 to ensure the implement at ion of the arrangements eet out in the Treaty of Accession ,,
 Thos e arrangement 3 are laid dovm in Protocol 3 to that Treaty.
                  The broad effect is that whilst the island is required by Council
Regulation 706/73 to apply EEO charges/tariffs , it neither contributes to nor is
eligible to receive any "benefits from Commmity funds s
MEAT SECTOR SITUATION
The main figures concerning production, consumptions, exports and imports of the
various meats are shown in the Annex „ There was an expansion of "beef and sheep-
meat production from the time of accession of the United Kingdom to the Community
until 1973 ? since whan there has been a rapid decrease in production® Pork
production followed an opposite trend® In 1973 ? lOfo of "beef and sheepmeat
production was used for domestic consumption®         In I98O this proportion fell to
50fo for "beef and veal , and 64$ for sheepmeat , the "balance being exported, mainly
to the United Kingdom *       Only a very small proportion of pork is exported#
In the 'beef oase s unrestricted imports of carcase meat have been allowed from the Irish
 Republic from May 1979s           the import level has progressively risen until it has now
reached one third of the island® a domestic meat consumptions,
Some imports of beef were authorised from Northern Ireland in 1979 and , from June
1981 onwards , unrestricted imports have been admitted from this region .
                                                                               © 0 •/ 0 9 e
 ---pagebreak---  In the sheepmeat case , the seasonal production pattern does not entirely meet
 the demands arising from the high consumption levels reached during the tourist
 season . Therefore , before the introduction of the common organisation in the
 sheepmeat sector , imports were only allowed between April and July , and excess
 home production was exported in the autumn . Since 20 October 1980 unrestricted
 imports have been admitted from Ireland , Northern Ireland and New Zealand in
 the framework of the autolimitation agreement with the Community .
Directive 77/98 of 21 December 1976 accords "the same animal health derogation
to the Isle of Man as to Northern Ireland ,     The need to maintain the Island 's
high animal health status' has led to the effective exclusion of third country-
lamb imports from any source other than New Zealand#
EXISTING MARKETING AND SUPPORT ARRANGEMENTS
The management of agricultural marketing is in the hands of the Isle of Man
Agricultural Marketing Society set up by Statute in 1934® It is a producer
organisation run by producers freely elected from all the parish areas of the
Island and has a full–time employed staff® Its activities are split into separate
entities responsible for Pat stock Marketings Milk Marketing and one for Potatoes .
All producers sell their produce to these Associations t which then manage their
marketing and pay the producers®
To allow free export and import of agricultural products ,, those producers who
wish to do so are exempt from the requirements to market through these
Associations 8 in respect of milk? potatoes s and livestock for slaughter Carcase
meat still has to pass through the only public abattoir on the Island which is
 operated by the Fatstock Marketing Association (PsM0Aa )o The marketing
costs of such exports of carcase meat are spread among all producers as they
represent a lowered return to the industry as a whole® The internal marketing
systems on the Island are considered           to be the responsibility of the Isle
of Man Government | so long as they do not interfere in the ability of individual
producers to export their primary product©
However ? the bulk of the sales of ©attle # sheep and pigs are controlled by the
FMA ; in only a few cases does a, producer sell his fatstock live for export to
buyers in the United Kingdom or other Member States e
P.eturns to producers are supported by variable premium systems which are similar to
that operated in the UK« The Isle'of Man has traditionally adopted the same guaranteed
prioe levels and the same guarantee although the Isle of Maui prices are not
 included in arriving at the UK®s weekly average market price on which the weekly
                                                                          • • •/ • • •
 ---pagebreak---  guarantee depends . The price paid to producers by the Association is either
the UK average price or the guaranteed price in the week in question , whichever
 is the higher , less deductions to meet collection, slaughtering and dressing
 costs , and the Association 's marketing and handling costs which are high e
The Island had a system of import controls on all agricultural products until
the special relationship was agreed with the Community® Progressively these have
"been removed or modified in line with Community policy,,
Licences are currently issued on request without limitations , and free of any
 charge , on imports originating in areas of comparable animal health status to
the Isle of Man e In practice , these are the Republio of Ireland ,     Ireland
and New Zealand,, The licences are issued "by the Animal Health Department of the
Board of Agriculture , which is also responsible for the administration and
monitoring of the arrangements for the admission of licensed imports# Recipients
of an import licence are obliged to notify the Board of the arrival of each
importation so that veterinary inspectors can ensure that the import consignment
complies with the conditions of the licence*
ISLAND 'S CONCERN
The IoM authorities consider that the IslandA's remoteness makes it essential to
maintain a viable Livestock industry and also to safeguard incomes for
home producers# Although the producer would contrive to get some protection from
the guaranteed price , the value of the premiums paid, to producers would oe eroded
if more of the Island 's domestic production were forced into exports . The
Island 's Exchequer would also face the higher cost of support at the level
provided for under the new regime e
Experience has shown that the Island 's particular geographic and economic position
makes it impossible to benefit from economies of scale in purchasing and marketing .
 For example , as a result of the unrestricted importation of eggs since 1973 there
 has been a regular reduction in the Island egg-laying flock which has fallen by 59%
 from 93 000 to 38 000, with a further fall anticipated by 1981 .
PROPOSED MEASURES
In order to meet the Island 's concern about the need to safeguard producers'
inoomes within the framework of its own agricultural support system , the
Commission proposes to permit the Isle of Man Authorities to apply certain trade
mechanisms to oontrol imports of beef and sheepmeat as well as cattle and sheep „
                                                                        b e 9/ • • •
 ---pagebreak---                                       4
Due to the seasonal characteristics both of production and consumption of meat
on the Island , the Authorities would effeot import controls "by means of import
licences for sheepmeat and "beef and veal which would be directly linked to the
varying trade needs during the oourse of the year at times when home production
failed to meet demand .
The Commission considers that these measures should be applied in such a way as
to ensure equality of treatment for all products from Community or third country
origins , and to maintain as far as possible the traditional pattern of trade .
The Commission also considers that these measures cannot derogate from the
application of the measures taken in the basic regulations in the beef and
sheepmeat sectors concerning trade with third countries , but are to be considered
as supplemental to those measures .
The Commission is of the opinion that those measures can be taken in accordance
with Articles l(2 ) and 5 of "th® Protocol No 3 to the Act concerning the conditions
of accession and the adjustments to the Treaties of 22 January 1972 .   Therefore ,
the Commission proposes to the Council the present decision as an authorisation
given to the United Kingdom to permit the Isle of Man authorities to apply a
system of special import licences to sheepmeat and beef and veal .
 ---pagebreak---                   THE ISLE OF MAN BOAHD OF AGRICULTURE AND FISHERIES
                             CARCASE MEAT STATISTICS IN KILOGRAMS •
  1 ) TOTAL PRODUCTION
  Year         CATTLE                SHEEP           PIGS         TOTAL
  1973         1,762,950               990,735       412 , 146    3,165,861
  1974         2 , 322 , 685         1,070,390       385,264      3 . 779 . 339
  1975         2,812,993             1,101,907       304 , 751    4,219,686
  1976         2,472.515               871 , 884     334,494'     3,678.893
  1977         2,481,631               881 , 928     335 , 579    3,699,138
  1978         2.404,073 '             811,191       389,335      3,604,599
  1979         2,259,175               806 , 568     396,596      3,462,339
  3.930        2,133,976               894,808       456,982      3 , 485 , 766
  1961         1,937,995               706,898       337,873      3,002,771
  ( Jnn-Oct )
  2 ) HOME USE ( LOCAL PRODUCTIF!)
  Year         CATTLE                SHEEP           PIGS         TOTAL
  1973         1,237,586               683,432       412,146      2,333,164
  1974         1 , 458,699             535,624       386 , 264    2 , 480 , 587
  1975         1 , 493 , 843           675 , 387     304,781      2,474,011
  1976         1,496,226               Soi , 536     334,494      2 , 400 , 2zo
  í r¿ 77      1 , 456 , 782           556 , 678     335 , 579    2 , 359 , 039
  1978         1,513,988               529,454       389,335      2,437,777
  1979         1 , 272,704                  , 290    396 , 596    2 , 149,590
  1980         1 , 065 , 368           573,596       450 , 565    2,089,63 0
  1981             883 , 424           322,668       322,979      1,529,071
I (Jan-Oct)
  3 ) EXPORT
  Year         CATTLE                SHEEP           PIGS         TOTAL
  1973             525,394           307 , 303            –
                                                                      832,697
  1974             863,986           434 . 766            -
                                                                  1,298,752
  1975         τ     ο ï 55          426 , 520            -
                                                                  1 , 745 , 675
  1976             975,289           302 , 343            -
                                                                  1 , 278 , 637
  1977         1 , 024 , 849         315 , 250            -
                                                                  1 , 340,099
  1978             885,085           261 , 737         .  –       1,166,822
  1979             986,471           326,278              -
                                                                  1,312,749
  1980         ] , 058 , 608         321 , 212           6 S 315  1 , 396 , 136
  1981         1 , 054 , 5 / 1       364,230             14,899   1 , 453 , 700
   ( Jan-Oct )
 ---pagebreak---                                                               - 6 -
  4 ) IN! PORT
  YEAR               BEEF ( Origin )               LAMB     ( Origin )      PORK ( Origin )
                                                                                                                    TOTAL
  1973                 55,849 ( N.Z. )               12,233 ( N.Z. )         46,100 ( N.I. & R.I. )                 114,232
  1974                45,473     ( N.Z.  )           40 , 899 ( N.Z. )       35 , 751 ( N.I. à R.I. )               122 , 123
  1975                   9,631   ( N.Z.  )           11,636 ( N.Z. )         51,404 ( M.I. ¿· R.I.·)                 72,6 / 1
  1976                28,361     ( N.Z.  )           25,375 ( N.Z. )         22,360 ( N.I. & R.I.J                   76 , 116
  1977                   7,751   ( N.Z.  )           19,016 ( N.Z. )         40 , 360 ( N.I. <?< r. . I . )          67 , 127
  1976                23,443     ( N.Z.  )           16,919 ( N.Z. )         41.923 ( N.I. & R.I. )                  82 , 290
  1979               412,064     ( R.I.  )                                   83,282     ( R.I. )
                      29,806     ( N.I.  )         111,369 ( N.Z. )          15,630     ( N.I. )                    652,151
  1980               498,302     ( R.I.  )           55,402 ( N.Z. )         39,967     ( R.I. )                    613,238
                                                                             19,567     ( N.I. )
  1981    ·.         239,742 ( R.I. )                49,710 ( N.Z. )         85,890 ( N.I. )                        276,584
                     140,984 ( N.I. )
«
  5 ) TOTAL ISLAND MEAT CONSUMPTION
  YEAR               BEEF                          LAMB                     PORK                                    TOTAL
  1973               1,293,435                     695,715                  458,246                                 2,447,296
  1974               1,504,172                     676 , 523                422,045                                 2 , 602 , 74 C
  1975               1,503.474                     687,023                  35o , 185                               2 , 54b ,
  1076               1,524,587                     594,911                  356,874                                 2 , 476 , 3"'2
  1&77               1 , 464 , 533                 585,694                  375,939                                 2.426 ,
  £@78               1.542,436                     546,373                  431,253                                 2 , 5.?C . 06'
  Î979               1,714,574                     591,659                  495,508                                 2,801 , 741
  1980               1 , 563,670                   628,998                  510,200                                 2 . 702 , 66-J
  Ì981 ( Jan-        1,205,409                     372,378                  378,657                                 1,956,444
  Oc t )
    6 ) MONTHLY IMPORT COMPARISON OF BEEF , LAMB AND PORK 1979,1980 and 1981
                                            BEEF                       LAMB                             PORK
  MONTH
               1979            1980         1981           1979        1980       1981        1979     j 1980                  1981
  Jan        ι                  49,469      38,092                     NIL-       NIL                     NIL                  NIL
  Feb                           35,398      21 , 054                   NIL        NIL                          4,751           NIL
  March                         29,774      33,390                     NIL        NIL                          6,731           NIL
  April      >  59,612          41 , 260    33,973          13,369      9,102     NIL         31 , 259         7,0¿4           NIL
  May           30,932          37,395      24,957          55 , 000   30,716     31 , 339     1,179           1 , 099         NIL
  June          73,983          36,105      38,030          21 , 840    7,730      8.103      11 , 232         5 , 409             6 , 111·
  July          73,155          60,259      49,182          21 , 160    7,854     10,218      16,920      10,108               22 , 5551
  August        64 , 497        42,433      32,154         NIL         NIL        NIL          9 . 588         7 , 574             4.823·
                                                                                                          ·* » – ▼       I     1    s    –ν η I
  Sept          37,617          59 , 200    23,907         NIL         NIL        NIL          5 , 580    nXL.           I
  October       32 , 337        28 , 656    26,746         NIL         NIL        MIL          4,952      NIL                      8 , 141
  November      42,501          32 , 702    32,614         NIL         NIL        NIL          6,555      NIL              119,448
  Dece. Tiber   27 , 236        45 , 651    26,127         NIL         NIL        NIL         11,647      16,827               10,763
               441 , 870       498,302     380,726         111,369     55,402     49,710      98,912      59 , 534             85,890
                                                                                                                          3*,ι1ίιΙί··<ΜΙ   · "1
  23rd November 1981 .
 ---pagebreak--- Monthly Comparison of Market Prices for all Live Cattle including Cows in
Northern Ireland and in the Republic of Ireland
                                                  in UKX/lOO kg liveweight
    Month                  Northern Ireland              Republic of Ireland
                      1981                1982           1981           1982
                                                  1
 January             73.270             92o363         64.930          80 e 339
 February            75® 639            92.152         65.146          81.394
 March               81,509             93.138         70 «, 092       84.295
 April               82.442                            72.89 6
 Kay                 83-465                            71.075
 June                83® 009                           70,406
 July                78.138                            70« 890
 August              77« 286                           72.239
 September           80.275                            73o333
 October             79 » 335                          74.644
 November            83.991                            74.340
 December            88 . 369                          75*435
    Φ                80 56I                            71 190
- the difference in prices may be explained "by the MCA charged on R S I. "beef
  imported into W® I. ( about 10 UKU/lOO kg liveweight in 1981 as an. average ) „
– the fact that a significant proportion of the total imports of "beef on the
  Isle of Man in 1981 was from H„Io origin is due tos
   i ) less transport costs from Ne I. ( 10 pence/kg)    than from R.I. (l5~20 p/kg).
  ii ) price differences for certain qualities requested "by the trade ( like
       steers of good quality) which appear to "be less than the average
       differences recorded "between N.I. and R,I «
       ( For 1981 tha average price for Steers I ( R.I® ) is 78 766 UK£/100 kg
       and for Steers L ( N.I. ) 84 3?8 UK£/l00 kg.)
 iii ) UK MCA to be paid on Irish beef introduced in the Isle of Man ( directly
       or through a GB port)#
 ---pagebreak---                          PROPOSAL FOR A
                       COUNCIL DECISION
authorising the United Kingdom                to permit the Isle of
Man authorities to apply a system of speoial import licences to
sheepmeat said "beef and veal
THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Communities ,
Having regard to Protocol No 3 to the Act of Accession of 1972 , and in
particular Article 1(2 ) and the second paragraph of Article 5 thereof .
Having regard to the proposal from the Commission ,
Whereas Community i*ules concerning trade with third countries in agricultural
products subject to a common organisation of the market apply to the Isle of
Man in accordance with Article l(2 ) of        Protocol No 3 to the Act of
Accession and with Counci I Regulation ( EEC ) No 706 / 73 ( 1 );
Whereas livestock production is a traditional activity on the Isle of Kan and
plays a central part in the Island 's agriculture ;
Whereas prior to the introduction of the common organisation of the market in sheep-
meat and goatmeat     within the Community the Isle of Kan , as part of its local
market organisation , applied certain mechanisms to control imports of sheep-
meat into the Island in order to ensure that the need to supply the require­
ments of the trade could be met whilst avoiding           distortions i n the
pattern of sheep production and indirectly in cattle production on the Island
and in its own agricultural support system;
( 1 ) OJ NoL 68 , 15.3.1973 , p. 1
 ---pagebreak--- VJhereas in the oontext of the trade arrangements with certain third countries pursuant
 to the common organization of the market which apply to the Isle of Man ,
subject to the Community provisions which govern the relationship between the
Island and the Community , it is desirable to permit the Island authorities
to apply certain measures in order to protect its own production and the working
of its own agricultural support system ;
Whereas therefore the United Kingdom should "be permitted to authorise the Isle
of Kan Government to apply a system of special licences for imports of sheepmeat
and beef and veal originating in third countries and in Member States of the
Community , without prejudice to the measures          concerning trade with third
countries provided for by Council Regulations ( EEC ) No 805 / 68 ( 2 ) and No 1837 / 80 (3 ),
HAS DECIDED AS FOLLOWS :
                                      Article 1
1 . In order to limit          imports the United Kingdom may authorise the Isle of
Kan Government to apply a system of special import licences to products of
the sheepmeat and          beef and veal sectors 9 falling %vithin subheadings 01.02 A ,
02 s 01 A II , 01«04 .and 02„01 A IV of the Common Customs Tariff .
2 « This system shall be applied without prejudice to the application of the               .
measures provided for in Title II of Regulations ( EEC ) Wo 805/68 and ( EEC ) NO 1837/80 O
3 . This system shall be applied in such a way as to ensure equality of treatment
for all products from, whatever source and for all importers of meat , while maintaining
as far as possible the traditional patterns of trade 'and taking account of the
Communities * rules as to animal health#
4o The United Kingdom shall inform the Commission of the measures taken in
pursuance of paragraph 1 .
                                      Article 2
This Deoisicn is addressed to the United Kingdom *
Done at Brussels .                                         For the Council
( 2 ) OJ No L 148 , 2S.6o1968, p. 24.
( 3 ) OJ Ko L 183 , 16.7.1980, pe 1 .
 ---pagebreak---                         PI MA M C I Al.                    6TATRIVÎEWT
                                                                                                                              L
                                                                                                                                Oate         7.1.1982
   1 . BUDGET HEADING :                  100 ( receipts )                                                                       APPROPRIATIONS
                                                                                                                                                     1.899,1 MioEcu
                                                                                                                                       1982
   2. TITLE :                    Draft Council Decision authorising the United Kingdom Government
         to permit the Isle of Man authorities to apply a system of special import
         licences to sheepmea't and beef and veal .
         IWLIIUMIIIHLLILINIIIMIM ..  it – J –mt ~NRNRN–RRNRRIIT"T7NRTT»T~MGI»I'WIITF«»ITRNTWRRI^-NTTRWRIIR>WI MI MI TJIIIRRI MMR IN wii N N NM IR               F^R.R»'
                                Article 1(2 ) and 5 of the Protocol N6 3 to the Act concerning the
         EGAL BASIS : conditions of accession and the adjustments to the Treaties of
   3 . LEGAL BASIS
                                 22.1.1972 ; Regulation ( EEC ) N° 706 / 73 .
       AIMS OF PROJECT :                 This draft Decision aims at protecting the level of producers'
         incomes in the Isle of Man by the means of import licences .
   5.  FINANCIAL IMPLICATIONS                                       PERIOD OF 12 MONTHS                   CURRENT FINANCIAL YEAR             FOLLOWING FINANCIAL YEAR
                                                                                                                                                   (   83    >
        - CHARGED TO THE EC BUDG£
           (< REFUNDS / INTERVENJJFLFLS
                           1 NTERVENLKWS )
        - NATIONAL
        -  NATIONAL^DHÎNISTRATIOA   NISTRATION
        - 0
   5.1  RECEIPTS
        - OWN RESOURCES OF THE EC
           ( LEVIES / CUSTOMS OUTIES )                                              (1)                                   (1)                            (1)
        - NATIONAL
  S.1.1    ESTIMATED RECEIPTS
  5.2 METHOD OF CALCULATION
                                                                                                                                                                  YES / NO
  *XXiXXKXK)MroX0KX)M<>(tt!«m*Q(^XiXXKWXroMtXmrøm)f)<rømrøM(ftX
                                                                                                                                                                  YES / NO
| Wx-m mmmyx m mm*sœm *x x                                                                                                                                        YES / N0
                                                                                                                                                                 YCS / NO
  OBSERVATIONS        :
  (1)        As receipts from customs duties and agricultural levies on imports to the
             Isle of Man do not form part of the budget of the Community , this proposal
             does not affect the " own resources "                                                  In addition the quantities involved
             are comparatively low .