CELEX: 51989PC0075
Language: en
Date: 1989-02-24
Title: Proposal for a COUNCIL REGULATION (EEC) on the transfer of 300 000 tonnes of barley held by the Spanish intervention agency (presented by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (89) 75
Vol. 1989/0024
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                        COM(87) 75 final
                                                       Brussels , 24 February 1989
                                   Proposal for a
                        COUNCIL REGULATION ( EEC )
       on the transfer of 300 000 tonnes of barley held by the
                     Spanish intervention agency
                    (presented by the Commission )
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 ---pagebreak---                               EXPLANATORY MEMORANDUM
Tho weather situation In Italy , which has been suffering from drought since
September 1988 , has led to a shortage of fodder , with the result that farmers
have sold their cattle early with negative effects             on their Incomes .
To deal with this situation , It Is proposed to make available to Italian farmers
300 000 tonnes of barley , which will have to be transferred from Intervention
storage In Spain .
The cost of the transfer Is estimated at           m I I I I on ecu .
 ---pagebreak---                             COUNCIL REGULATION ( EEC ) No    /
          on the transfer of 300 000 tonnes of barley held by the Spanish
                                    intervention agency
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
Having regard to Council Regulation ( EEC ) No 2727/ 75 of 29 October 1975 on the
common organization of the market in cereals ( 1 ), as last amended by
Regulation ( EEC ) No 166 /89 ( 2 ), and in particular Article 5 thereof ,
Having regard to Council Regulation ( EEC ) No 729/ 70 of 21 April 1970 on the
financing of the common agricultural policy ( 3 ), as last amended by Regulation
( EEC ) No 2048 /88 ( 4 ), and in particular Article 3(2 ) thereof ,
Having regard to the proposal from the Commission ,
Whereas the weather conditions in Italy and the drought that has persisted
since September 1988 , have brought about a shortage of fodder which could lead
farmers to sell their livestock prematurely with income losses ;
Whereas the shortage of fodder may be offset by the use of stock-farmers of
300 000 tonnes of feed grain ; whereas these cereals are available from the
Spanish intervention agency in the form of barley ; whereas in order to make
this barley available to Italian stock-farmers , it should be transferred to
Italy ;
(1)   OJ No L 281 , 1.11.1975 , p. 1 .
(2)   OJ No L 20 , 25.1.1989 , p. 1 .
(3)   OJ No L 98 , 28.4.1979 , p. 3 .
(4 )  OJ No L 185 , 18.8.1988 , p. 1 .
 ---pagebreak---                                           - 2 -
Whereas the Italian intervention agency is reselling the stocks transferred
under the conditions set out in Commission Regulation ( EEC ) No 1836 / 82 of
7 July 1982 laying down the procedure and conditions for the disposal of
cereals held by intervention agencies , as last amended by Regulation ( F.FC )
No 2418 / 87 ( 5 );
Whereas certain detailed rules for taking delivery of the product and on the
transfer of responsibilities in this respect should be laid down at a later
date ;
Whereas provisions should be adopted to cover this measure for accounting
purposes in accordance with the procedure provided for in Council Regulation
( EEC ) No 1883 / 78 of 2 August 1978 laying down general rules for the financing
of interventions by the European Agricultural Guidance and Guarantee Fund ,
Guarantee Section ( 6 ), as last amended by Regulation ( EEC ) No 2050 /88 ( 7 ).
HAS ADOPTED THIS REGULATION :
                                        Article 1
1.    The Spanish intervention agency shall make available to the Italian
      intervention agency 300 000 tonnes of barley .
2.
       The Italian Intervention agency shall take delivery of the product
        referred to In paragraph 1 before 15 March 1989 . It ahall ensure that
        It le transported to Italy and that It la disposed of In animal feed
       before dates to be determined In accordance with the procedure laid
       down In paragraph 5 .
3.    The resale of the product referred to in paragraph 1 shall be carried out
      in accordance with Commission Regulation ( EEC ) no 1836 /82 .
4 . Transport contracts shall be awarded by tendering procedure . Mobilization
      shall be carried out under the most favourable transport conditions .
( 5 ) 0J No L 223 , 11.8.1987 , p. 5 .
( 6 ) 0J No L 216 , 5.8.1978 , p. 1 .
( 7 ) OJ No L 185 , 15.8.1988 , p. 6 .
 ---pagebreak---                                          - 3 -
5 . 'The detailed rules for applying this Regulation , in particular as regards
     the transport of the product in question , shall be adopted in accordance
     with the procedure laid down in Article 26 of Regulation ( EEC ) No 2727 / 75 .
                                       Article 2
1.   The Spanish intervention agency shall debit the accounts referred to in.
     Article 4 of Regulaton ( EEC ) No 1883 / 78 with the quantities of barley
     transf erred , valued at zero .
2.   The Italian intervention agency shall credit the accounts referred to in
     paragraph 1 with the quantities of barley of which they have taken
     delivery , valued at zero , and shall value them at the end of each month at
     91 ect / t to be converted into national currency at the agricultural rate
     applying at the beginning of the 1988 /89 marketing year .
3.   The transport costs of the quantities of barley referred to in Article 1
     shall be entered in the accounts referred to in paragraph           -2 of this
     Article .
                                       Article 3
This Reguation shall enter into force on the day 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 Council ,
                                                      The President
 ---pagebreak---          FINANCIAL               STATEMENT
                                                             Date : 8 February 1989
 1 . Budget heading :                             Appropriations :
2 . Title : Transfer of 300 000 tonnes of barley held by the Spanish intervention
             agency
3 . Legal basis : EEC Treaty
4 . Aims of project : To deal with the shortage of fodder in Italy due to the
                          drought since September 1988
                                                period of      current          following
                                                12 months   financial year    financial year
5.     Financial implications                                    ( 1989 )         ( 1990 )
5.0    Expenditure
       - charged to the EC budget
         ( refunds / intervention )             6.5 m ecu          6.5
       - national administration
       - other
5.1    Receipts
       - own resources of the EC
         ( levies / cus toms 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 ?
6.2 Is a supplementary budget necessary ?
6.3 Will future budget appropriations be necessary ?                                     no
Observations : This measure will not affect the supply balance for the 1988 / 89
                 marketing year . Accordingly , the financial consequences involve
                 only the costs of carriage .
 ---pagebreak---                                            ANNEX
                                                                  m ecu
Costs of entry into storage :
0.3 m t x 2.35 ecu/ t x 1.054(DR ) x 75% ( 1 )                    =   0.6
Withdrawal costs :
0.3 m t x 2.36 ecu/ t x 1.054(DR ) x 75% ( 1 )                    =   0.6
Cost of carriage :
To port :               0.3 m t x 13.30 ecu/ t x 1.054(DR )       =   4.2
Fobbing :               0.3 m t x 8.40 ecu/ t x 1.054(DR )        =   2.6
Sea freight :           0.3 m t x 8.80 ecu/ t x 1.054(DR )        =   2.8
Internai transport
to Italian islands : 0.15 m t x 12.2 ecu/ t x 1.054(DR )          =   1.9
I.    Sub-total :                                                 + 12.7
Assuming disposing of barley in this way in Italy results in a year 's storage
in Spain being avoided , the following are the savings expected :
-     storage costs :
      0.3 m t x 16.2 ecu/ t x 1.133(DR ) x 75% ( 1 )              =   4.1
-     financial costs :
      0.3 m t x 80.45 ecu/ t ( 2 ) x 0.077% ( 3 ) x 1.133(DR )    =   2.1
II . Sub-total :                                                      6.2
III . Total cost of measure (I - II )                               6.5 m ecu
( 1 ) To be charged to the EAGGF .
( 2 ) Current value of Spanish barley per tonne .
( 3 ) Spanish interest rate .