CELEX: 51973PC1735
Language: en
Date: 1973-10-12
Title: PROPOSAL FOR A REGULATION (EEC) OF THE COUNCIL on the subsidy for olive oil (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (73) 1735
Vol. 1973/0300
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                       COM(73)1735 Final
                                                       Brussels , 12 October 1973
                                   PROPOSAL FOR A
                    REGULATION (EEC )           OF THE COUNCIL
                           on the subsidy for olive oil
                                                                     \
                  (submitted, to the Council by the Commission )
  COM (73 ) 1735 Final
 ---pagebreak---                         EXPLANATORY ITEHIOR/JTIRM
In order to alleviate the difficulties caused by the application of the
subsidy system in Italy (whose oil production counts for more than 99i°
of the total Community production) the Commission proposed to the Council
for the marketing year 1972/1973 a new system providing feasicallytthat
the submission of applications for subsidies by producers should be dis­
continued and that target yield documents for olives and for oil should
alone be used for determining quantities acceptable for subsidy .
The Council did not accept this proposal , and on that occasion the Italian
Minister for Agriculture undertook to effect improvements as quickly ar-
possible in the application of the system in force ..
Following the above undertaking , a central committee was set up in Italf
during the marketing year 1972/l>73 whose principal task is harmonization
of criteria for fixing target, yields used by procincial committees in
olive-growing regions .
The creation of this committee and the work accomplished by it to date
would seem to indicate that the. Italian Authorities have acknowl edged
the need to reorganize the olive industry and to reduce the size of the
problems arising from the present system for supervision and the granting
of subsidies .
Moreover , the action taken by the Italian Authorities is on the lines of
the proposal put forward by the Commission in September 1972 .
Indeed , faced with the impossibility , due to the uncertain book-keeping
in some 12 000 oilworks , of supervising the quantity of oil produced , the
Italian Authorities acknowledged that it would be necessary for the setting
up of the central committee to increase "a posteriori" supervision which
applies at present to target yields only .
However , if this "a posteriori " supervision is to have some genuine effect
not only should the target yields be fixed as closely as possible to the
real yields , but the accuracy of cultivation declarations should be veri­
fied and further enquiries should be made with som rigour , resulting in
a refusal to pay the subsidy and the exercising of sanctions against the
wrongdoers in doubtful cases .
 ---pagebreak--- In these conditions , the Commission believes that the system at present
in force could "be maintained for a further year . In order , however , that
the action taken by the Italian Authorities might produce positive re­
sults the system must "be modified as indicated in 2 above .
Also , this proposal includes certain amendments and annexes to the Regu­
lation in force which are basically as follo>;ss
- the deletion of all references to book-keeping in oil works as a prin­
   cipal means of supervising the quantites of oil produced . Indeed , consi­
   dering "the pratical impossibility in Italy of supervising the book-kee-
   ping of the oil wotks in question , retention of this provision would
   seem to hinder rather thrn help the work of the supervisory bodies .
T The deletion of this provision does not mean that the oil works will
   not be supervised in order to verify the quantities produced where this
 ' is possible .
- the establishment of producers * organizations to simplify supervision
   and the granting of subsidies . This new provision points to greater
   participation and responsibility for the producers concerned in the
   subsidies for olive oil . Consequently , it should satisfy the frequently
   expressed demands of the parties in question .
 ---pagebreak---                                DRAFT PROPOSAL FOR A
                       REGULATION' ( ESC ) Ho . OF THE COUNCIL
                       of
                          on the subsidy for olive oil
TEH COUNCIL OF THE EUROPEAN CGKMUNITIES ,
Having regard to Council Regulation No . 136/66/SEC"'' of 22 September 1$66
on the establishment of a common organization of the market in oils and
fats , as ; last amended by Regulation (]£EC ) No . 1707/73 and in particular
Article 10(2 ) thereof ?
Having regard to Council Regulation No . l62/66/EEC^ of 27 October 1966 on
trade in oils and fats between the Community and Greece , and in particular
Article 8 thereof ;
Having regard to the proposal from the Commission ?
Whereas the principles must be laid dom under which            the subsidy referred
to in Article 10 of Regulation No I36/66 /EEC will be granted to olive oil
producers for the 1973/74 marketing year; wherea.s , moreover , measures should
be adopted to ensure that the subsidy is granted only for olive oil produced
in the Community from olives harvested in the Community , and in respect of which
the subsidy has not already been granted?
Whereas , to ensure the proper working of the subsidy system , the subsidy
should be granted only for quantities of oil in respect of which applica­
tions are submitted within producing Member States ? whereas , in order to
simplify the application of the system , the number of applications for sub­
sidy which can be made during the marketing year should be limited ?
Whereas , the subsidy in question is of considrable importance for producers
and constitutes a financial burden for the Community ? whereas , to ensure
that the subsidy i3 granted only for such oil a.s gives entitlement thereto ,
provision should be made for a system of ddministrative supervision to check
that the quantities of oil in respect of which applications for the : subsidy are
ma.de are consistent whit h the potential production of olives and oil during
the marketing year in question and with the quantities of the products from
which the oil is extracted and the quantities of oil actually produced?
■"• OJ No 172 , 30 September 1966 , p. 3025/66
    OJ No L175 » 29 June 1973 , p. 5
 30J No 197 , 29 October 196 6 , p. 3393/66
 ---pagebreak--- v'horoas to assure this consistency such supervision should "be "based in par­
ticular on a system of cultivation declarations ; whereas , to ensure the proper
working of the supervision system , the accuracy of the said cultivation decla­
rations should be verified by the Member States ;
Whereas , however , to simplify the application of the subsidy cystem to olive-
residue oil , provision should be ma3e for the determination of the quantity
of such oil which will be accepted for the subsidy to be effected on tho basis
of the production of oil by extraction;
Whereas , producers' organizations should be set up in order to simplify the
subsidy system ; whereas the minimum conditions to be satisfied by the organi­
zations before they are recognized by the Member States should be laid down ;
HAS ADOPTED THIS REGULATION :
 ---pagebreak---                                      Article 1
For t je 1973/74 marketing year ,, the subsidy referred to in Article 10 of Re­
gulation No 136/66 /EEC shall be granted in respect of olive oil falling within
the definitions contained unter 1 and 4 of the Annex to that Regulation .
                                     Article 2
Before a date to be specified each producer of olives which are to be used m
the production of oil shall submit a cultivation declaration for each of the
areas covered by Article 5(2 ); such declaration , in addition to giving the
necessary details concerning the olive trees so that the subsidy may be fixed ,
shall include s. statement from the producer that he has carried out the neces­
sary' field work and that he picks the olives regularly .
1 . The subsidy shall be granted upon application to be made by the persons
    concerned in the Member itates in which the oil was produced .
2 . In respect of each of the areas referred to in Article 5(2 ), only one appli­
    cation for the subsidy may be submitted , before a drte to be determined ,
    by each producer who has submitted a cultivation declaration .
                                     Article 4
1 . Each producing Member State shall set up a system of administrative super­
    vision to ensure that the products in respect of which applications are
    made for the subsidy are products which give entitlement thereto .
2 . As regards the type of oil referred to under point 1 of the Annex to Ragu-
 • 1at ion No . 136/66/SEC , the supervision must , in particulary include a check
    that the quantity of olive oil in respect of which an application is made
    for the subsidy by the person concerned is consistent with :
    (a) the quantity of olives harvested within the Community and used for the
          production of such oil , .            .      ,
    (b ) the actual quantity of olive oil produced ,
    ( c ) the potential production of olives and oil during the marketing year
          in question .
3 . As regards the type of oil referred to under. 4 of the Annex to Regulation
    No . 136/66/EEC , the French authorities must , in particular , chack that the
    competent quantity of olive residue in respect of which an application is
    made for the subsidyby a person concerned is consistent with :
 ---pagebreak---     ( a ) the quantity of olive residue obtained from olives harvested within
          the Community and used for the production of such oil ,
    ( b ) the actual quantity of olive residue oil produced .
4 . With respect to the oil referred to under 4 of the Annex to Regulation Ho .
    136/66/EEC , the competent Italian authorities shall determine the quantity
    of this oil for which the subsidy may be granted , on the basis of the oil
    production referred, to under point 1 of the Annex to the aforementioned
    Regulation .
1 . Consistency between the quantity of oil in respect of which the subsidy-
    is applied for and the potential production referred to in Article 4(2 ) ( c )
    shall be verified by checking the information contained in the cultivation
    declarations against the target yields referred to in paragraph 2 .
2 . Target yields for olives and for oil shall be set for each production area
    in accordance with criteria to be determined by bodies designated for the
    purpose by the producing Member States .
                                     Article 6
The producing Member States shall :
- make on-the- spot checks as to the accuracy of cultivation declarations .
   These checks shall relate to a percentage to be fixed by reference to the
   size of the farm 5
- compare the information given in the cultivation declaration for the 1973/74
   marketing year with the information contained in the oil register or , if thi
   is not available , in the last cult ivp,t ion declaration submitted by each per­
   son concerned .
                                     Article 7
1 . For the purposes of this Regulation , Member States may treat a recognized
    producers' organisation as a single producer .
2 . For this Regulation , "producers' organization" means any recognized organ­
    ization of producers of olives and oil established on their o'-n initiative
    which undertakes in particular :
 ---pagebreak---                                     - 5 -
    - to supervise , for the purposes of the granting of the subsidy in accor­
      dance with this Regulation , the production "by its members of olives and
      of oilf
    - to submit a single application for the subsidy and a single cultivation
      declaration on behalf of all its members , after the control referred
      to abovej
    - to receive the subsidy on behalf of its members and to distribute it
      among them in respect of the production of each member which has been
      recognized by the competent control orgmizations .
                                  Article 8
The Member States shall communicate to the Commission , before they become
applicable , all provisions adopted by them in pursuance of this Regulation .
Should the provisions in question not be apt to enable the objectives of
this Regulation to be atteined , a decision will be taken , in accordance ifith
the procedure laid down in Article 38 of Regulation No . 136/66/EEC , as to the
amendment s which should be made thereto by the Member State concerned .
This Regulation shall enter into force on 1 November 1973 .
This Regulation shall be binding in iis entirety and directly applicable in
all Member States .
Done at Brussels ,                             For the Council
                                                The President