CELEX: 51998PC0235
Language: en
Date: 1998-04-20
Title: Proposal for a Council Regulation (EC) introducing special temporary measures for hops

COMMISSION OF THE EUROPEAN COMMUNITIES
                                 Brussels, 20.04.1998
                                 COM(1998) 235 final
                  Proposal for a
        COUNCIL REGULATION (EC)
 introducing special temporary measures for hops
         (presented by the Commission)
 ---pagebreak---  ---pagebreak---                           EXPLANATORY MHMORANIHjM
The Council is asked to adopt the attached proposal for a Regulation introducing special
temporary measures for hops.
The market in hops is at present oversupplied for both short-term and structural reasons.
It is desirable that production be reduced by lowering the areas planted in the European
Union.
The measures proposed - lasting live years - are temporary resting and grubbing-up.
To achieve the aims in question the scope for flexibility accorded producer groups will be
widened. The present budgetary appropriation will not need to be increased.
Both measures will be entirely optional, whether at Member State, producer group or
individual producer level.
The actual provisions are:
- inclusion of "temporary resting" and "grubbing-up" in the list of special measures that
    may be taken at producer group level for the purposes of joint adjustment of
    production to market-requirements;
    payment by producer groups of a financial contribution, to be taken out of the
    maximum 20% deduction from the producer aid; this will partly offset the actual cost
    of applying the measures and the loss of income;
- continued payment of the aid - ECU 480/ha - for a maximum period of 5 years for
    areas rested or grubbed up, subject to observance of certain requirements.
                                                 2-3
 ---pagebreak---                                           Proposal for
                         COUNCIL REGULATION (EC) No
                                              of
                     introducing special temporary measures for hops
 TUB COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community,
Having regard to Council Regulation (EEC) No 1696/71 of 26 July 1971 on the common
organisation of the market in hops', and in particular Article 16a thereof,
Having regard to the proposal from the Commission,
Whereas Article 16a of Regulation (EEC) No 1696/71 provides that if surpluses arise the
Council, acting by a qualified majority on a proposal from the Commission, may take
appropriate action on production potential; whereas the market in hops is at present in
surplus, for both short-term and structural reasons;
Whereas one of the purposes of producer groups is to adjust production to market
requirements; whereas they may use up to 20% of the aid on appropriate measures to that
end; whereas their scope for action in this area should be extended by allowing them to
have recourse to temporary resting and permanent grubbing-up of areas under hops;
whereas these measures will be additional to the special measures listed in Article 7(1 )(b)
of the abovementioned Regulation;
Whereas temporary resting and permanent grubbing-up can be permitted only if certain
requirements are met, in particular non-cumulation of aid for areas temporarily rested and
an obligation to reduce areas by 2002; whereas this will entail costs; whereas these, and
loss of income, should be met in part by payment of an amount equal to the aid per
hectare for a limited period; whereas temporary granting of this amount on such
1
    OJ L 175, 4.8.1971, p. 1. Regulation last amended by Regulation (EC) No 1554/97 (OJ L 208,
    2.8.1997, p. 1).
 ---pagebreak--- unharvested areas should therefore be permitted; whereas for effectiveness of supervision
the minimum size of these areas should be specified;
Whereas for the sake of proper application of these measures the responsibilities of
producer groups and of the Member States' competent authorities should be defined,
HAS ADOPTED THIS REGULATION:
                                          Article 1
In addition to the functions described in Article 7(1 )(b) of Regulation (EEC) No 1696/71
producer groups may also have recourse to temporary resting and permanent grubbing-up
as means of jointly adjusting their production to market requirements and improving
product quality.
                                          Article 2
 1. Producers with areas put into temporary rest or permanently grubbed up may, as
regards the 1998 to 2002 harvests, receive an amount equal to the aid on the area had it
been cropped, provided that they undertake not to extend hop cultivation to other areas of
their holding.
They may not receive any other Community aid on areas temporarily rested.
The hop area cultivated for the 2003 harvest by a producer group applying temporary
resting or permanent grubbing-up must be less than that cultivated for the 1997 harvest.
 2. Producer groups shall determine the minimum plot size for which an application may be
 lodged. This may not be less than 0.3 hectares.
 3. Producer groups may lay down other specific requirements to be met by their members
 in cases of temporary resting and grubbing-up.
 4. Areas put into temporary rest or grubbed up must be notified to the competent
 authorities by 31 May of the year of harvest. These shall check that the following
 requirements have been met:
 ---pagebreak--- - for temporary resting, maintenance of the hop poles
- for permanent grubbing-up, removal of the hop poles
- permanent grassing over in order to improve soil fertility.
                                         Article 3
This Regulation shall enter into force on the third day following its publication in the
Official Journalrofthe European Communities.
It shall apply from the 1998 to the 2003 harvests.
This Regulation shall be binding in its entirety and directly applicable in all Member
States.
Done at Brussels r
                                                                         For the Council
                                              -6
 ---pagebreak---             FINANCIAL STATEMENT
        BUDGET HEADING:              181                                                APPROPRIATIONS:
                                                                                         ECU 13 million
        TITLE:
        Proposal for a Council Regulation introducing special temporary measures for hops
3.      LEGAL BASIS:
        Regulation (EEC) No 1696/71, as last amended by Regulation (EC) No 1554/97
4.      AIMS:
        To introduce special temporary measures involving the voluntary reduction of hops production thanks to aid granted
        (limited to five years) for set-aside or grubbing-up of areas under hops.
        FINANCIAL IMPLICATIONS                                           PERIOD OF             CURRENT            FOLLOWING
                                                                         12 MONTHS            FINANCIAL            FINANCIAL
                                                                                             YEAR (1998)          YEAR (1999)
                                                                        (ECU million)        (ECU million)        (ECU million)
5.0    EXPENDITURE
       - CHARGED TO THE EC BUDGET
            (REFUNDS/INTERVENTION)
        - NATIONAL AUTHORITIES
        - OTHER
5.1.   REVENUE
        - OWN RESOURCES OF THE EC
            (LEVIES/CUSTOMS DUTIES)
        - NATIONAL
                                                                          20Q0            2001           2002             2003
                                                                      (ECU million    (ECU million   (ECU million    (ECU million
5.0.1  ESTIMATED EXPENDITURE
5.1.1
5.2     METHOD OF CALCULATION:
        The measure entails no additional expenditure as compared with the present situation, the aid per hectare for areas
        gnibbed up or set aside remaining unaltered.
6.0    CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE                                                     YES/NO
       RELEVANT CHAPTER OF THE CURRENT BUDGET?
6.1    CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE                                                    YES/NQ
       CURRENT BUDGET?
6.2    WILL A SUPPLEMENTARY BUDGET BE NECESSARY?
6.3    WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY?                                                                    YES/NO
OBSERVATIONS:
The measure is scheduled to last for five years.
                                                            Q-
 ---pagebreak---                                                                     ISSN 0254-1475
                                                             COM(98) 235 final
                                              DOCUMENTS
EN                                                              03 10 09 01
                                    Catalogue number : CB-CO-98-253-EN-C
                                                              ISBN 92-78-35152-0
Office for Official Publications of the European Communities
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