CELEX: 51987PC0606
Language: en
Date: 1987-11-24
Title: Proposal for a COUNCIL REGULATION (EEC) amending Regulation (EEC) No 797/85 on improving the efficiency of agricultural structures (submitted by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (87) 606
Vol. 1987/0291
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 ---pagebreak---  COMMISSION OF THE EUROPEAN COMMUNITIES
                                                     COM(87 ) 606 final
                                                     Brussels , 24 November 1987
                                 Proposal for a
                          COUNCIL REGULATION ( EEC )
    amending Regulation ( EEC ) No 797 / 85 on improving the efficiency of
                           agricultural structures
             O^
                             - j
                       ( submitted by the Commission )
C0M(87 ) 606 final
 ---pagebreak---                                                                             £ & tl Q  C*
                                  Explanatory memorandum
1 . Regulation ( EEC ) No 797 / 85 on improving the efficiency of agricultural
    structures contains certain special provisions for Greece , Ireland ,
    Portugal and Italy .
    These are
    - Specific conditions concerning access to investment aid measures
      ( accounting ), which expire
      . on 1 April 1988 for Greece and Italy ,
      . on 31 August 1989 for Portugal ,
      . on 30 June 1990 for Spain ;
    - specific conditions concerning investment aids ( higher aid rates ), which
      expire
      . on 30 September 1987 for Greece , Ireland and Italy ,
      . on 31 January 1989 for Portugal ,
      . on 31 December 1989 for Spain .
    Greece , Ireland and Italy have requested extension of these special
    provisions .
    As the reasons motivating the inclusion of the special provisions ( very
    large number of small farms not ready to start keeping accounts , and very
    high interest rates on the capital markets ) are still valid , there is
    justification for extending the applicability of the special provisions for
    one year concerning the appointing conditions for Greece and Italy and
    until 31 December 1989 concerning the investment aid rate for Greece ,
    Ireland , Italy and Portugal .
2 . Article 3(4 ) of Regulation ( EEC ) No 797 / 85 lays down restrictions as
    regards aids to investments the purpose of which is an increase in pig
    production on a holding .
    Such restrictions , setting at 400 the number of pig places eligible for the
    aid , are applicable until 30 December 1987 . Before that date , the Council
    must decide as to restrictions applicable from 1 January 1988 onwards . In
    the absence of any such decision , the Commission is authorized to determine
    itself the restrictions within ranges relating not only to the number of
    cases eligible for the aid but also to the maximum number of places allowed
    per holding if aid for the eligible places is to be granted .
 ---pagebreak---                                            2
    The Commission is proposing that the restrictions should be set at the
    lower limits of these ranges , 300 and 600 pig places respectively .
3 . According to a judgment of the Court ( Case 312 / 85 , Judgment of 18.12.86 ),
    the present wording requires the Member States to apply investment aid
    measures to agricultural undertakings of industrial type ( incorporated
    companies , etc .) as well . A number of Member States , e.g. Italy and
    Germany , applied the Regulation only to family farms . Further to the
    Court’s judgment , Article 2 of the Regulation should be amended and the
    Member States should be authorized to restrict application of the
    Regulation to family farms .
    This is also in line with the joint declaration made by Parliament , the
    Council and the Commission on 15 June 1987 , which stressed the importance
    they attach to the family structure of agriculture .
 ---pagebreak---                                       Proposal for a
                                COUNCIL REGULATION ( EEC )
                  amending Regulation ( EEC ) NO 797 / 85 on improving the
                          efficiency of agricultural structures
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 ( 1 ),
Having regard to the opinion of the European Parliament ( 2 ),
Whereas the problems which necessitated a temporary waiver , as regards
requirements concerning accounts , conceded in Article 2(1 ) ( d ) of Council
Regulation ( EEC ) No 797 / 85 ( 3 ), as last amended by Regulation ( EEC )
No 1760 / 87 ( 4 ), have still not been solved ; whereas that provision should
therefore be renewed ;
Whereas , following the joint declaration made by the European Parliament , the
Council and the Commission on 15 June 1987 as regards policy on agricultural
structures recognizing the importance of family structures in agriculture , the
Member States should be authorized to concentrate application of certain
measures on family holdings ;
( 1 ) OJ No C
 ( 2 ) OJ No C
 ( 3 ) OJ No L 93 , 30.3.1985 , p. 1 .
 ( 4 ) OJ No L 167 , 26.6.1987 , p. 1 .
 ---pagebreak---                                            2
Whereas Article 3(4 ) of Regulation ( EEC ) No 797 / 85 provides for a review
before 31 December 1987 of the specfic conditions governing grants of aids to
investments in pig production ;   and whereas the objectives of the reform of
the CAP require limitation of aids to investments the purpose of which is to
increase such production ;
Whereas the situation on the Member States' capital markets , in particular as
regards interest rates charged , has not changed since early 1985 and therefore
still justifies an increase in investment aid in the Member States referred to
in Article 4(2 ) of Regulation ( EEC ) No 797 / 85 ,
 ---pagebreak---                                                  3
HAS ADOPTED THIS REGULATION :
                                            Article 1
Regulation ( EEC ) No 797 / 85 is hereby amended as follows :
1 . The second subparagraph of Article 2(1 ) ( d ) is replaced by the
    following :
    " However , in the less-favoured areas determined in accordance with Article
    2 and 3 of Directive 75 / 268 / EEC , Spain , Greece , Italy , as regards the
    Mezzogiorno including the islands , and Portugal , as regards its entire territory ,
    shall be authorized to accept improvement plans submitted during the first
    four years of the duration of this measure and , in the case of Spain and
    Portugal , submitted during the first three years following the entry into
    force of the provisions implementing , in these two Member States , the
    measures provided for in Title I , by holdings which do not satisfy the
    condition laid down in this point , provided that the volume of work on the
    holding does not require more than the equivalent of one MWU and that
    projected investments do not exceed 25 000 ECU ."
2 . The following    subparagraph is added to Article 2(2 ):
    " Member States may restrict the aid system referred to in paragraph 1 to
    agricultural holdings which have a family character ."
3 . Article 3(4 ) is replaced by the following :
    " 4 . Except where decisions subsequently taken pursuant to paragraph 2
          provide otherwise , the aid provided for in paragraph 1 granted for
          investment relating to the pig production sector the effect of which is
          to increase production capacity shall be restricted , as regards
          applications submitted by 31 December 1986 , to investments serving to
          reach 500 places for fattening pigs per holding , and , as regards
          applications submitted between 1 January 1987 and 31 March 1988 , to
          investments serving to reach 400 places .
 ---pagebreak---                                             4
         As regards applications submitted after 31 March 1988 , the number of
         pig places that may be achieved and attract the aid referred to in
         paragraph 1 shall be 300 places per holding . Also aid may be granted
         only if the total number of pig places after execution of the
         investment does not exceed 600 places per holding .
         The place required by one breeding sow shall be deemed to correspond
         to 6.5 fattening pigs places .
         Furthermore , where an improvement plan provides for investment in pig
         production , grant of aid for such an investment shall be subject to the
         condition that on completion of the plan at least the equivalent of 35%
         of the quantity of feed consumed by pigs can be produced on the
         holding . "
4 . The last subparagraph of Article 4(2 ) is replaced by the following :
    " However , until 31 December 1989 , the value of the maximum aid referred to
    in the second subparagraph shall be increased by 10% of the amount of the
    investments in Spain , Greece , Ireland , Italy and Portugal for investments
    shown in the improvement plans submitted before that date ."
 ---pagebreak---                                     Artide 2
This Regulation shall enter into force on the 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 .
                                                        For the Council ,
 ---pagebreak---      FINANCIAL                 STATEMENT                  concerning : Proposal for a Council Regulation
     amending Regulation ( EEC ) No 797 / 85 on improving the efficiency of
     agricultural structures .
  1 . Budget heading :     HI B item :         310 Title :     Aids for investment in farms
 2 . Legal basis :       Article 43 of the Treaty
 3 . Classification :             , Compul sory expendi ture/DüiXdbXiKiDiá^X^KátMIÍútÍéX
 4. Purpose/description of the measure :          The proposal deals with a number of amendments
      of Regulation ( EEC ) No 797 / 85 providing notably for the harmonization of the
     duration of certain special provisions in favour of Greece , Spain , Ireland , Italy
     and Portugal and the restrictions for the eligibility of investment aid in the
     pig sector
 5.    Method of calculation
 5.1   Form of expenditure : Reimbursement in the following year of a part of the                      national
                                 eligible expenditure
 5.2   Community contribution :      25% or 50% according to the             individual    case .
 5.3   Calculation :    in MECU(1 )
                              Volume of investment                           Extra aid        Aide at EAGGF
                     GR / IRL / IT          PORT .       TOTAL               ( 10% ) ( 2 )    Expense ( 2 )
1987    (3 months )           75             -              75                   7.5               3.5
1988                         300             -            300                   30.0              15.0
1989                         300             10           310                   31.0              15.5
6 . Financial ìnplication as regards operating appropriations
6.1 Schedule of commitment appropriations and payment appropriations (m ECU)
                    Year                         C.A. / P.A.
                   ÏÏÏÏ7
                   19 88                           1
                   19 89                           5
                   19 90                           8
                   19 91                           5
                   following years               30
                   Total                         49 ( 2 )
6.2 Financing during current year :
7. Observations : ( 1 ) The cost resulting from the proposal to prolong the application
   period of the special provisions in favour of Greece, Italy , Ireland and Portugal
   during the period up to the end of 1989 only comes to 6MECU . However , taking account
   of the slow take-off of the investment aid regime, especially in the countries
    concerned , the expenditure during the period 1985-1989 will be less than the
   provisions established in 1985 . Moreover , the modification of the restrictions of
    investment aid in the pig sector should bring about a small reduction in expenditure
    Consequent ly , there is no necessity to amend the provisional cost of the measure .
                       ( 2 ) Aid for investment take the mixed form of "capital grant aid and
                              interest rate subsidy ".