CELEX: 51992PC0474
Language: en
Date: 1992-11-19
Title: Proposal for a COUNCIL REGULATION (EEC) on the introduction of a limit to the granting of production aid for processed tomato products

COMMISSION OF THE EUROPEAN COMMUNITIES
                                        COM(92) 474 final
                                        Brussels, 19 November 1992
                           Proposal for a
                     COUNCIL REGULATION (EEC)
       on the introduction of a limit to the granting of
          production aid for processed tomato products
                   (presented by the Commission)
 ---pagebreak---                                     - ^    -
                                EXPLANATORY MEMORANDUM
Subject:           Draft proposal for a Council Regulation on the
                      introduction of a limit to the granting of
                    production aid for processed tomato products
   Processed tomato products are currently undergoing a difficult patch in
   the face of stiff competition on the world market brought on by an
   increase in production in the two other major producer countries, i.e.
   the United states and Turkey, and a decline in demand in the eastern
   European countries, namely those formerly in the USSR, which constitute
   an important market. Processing plants have closed and will continue to
   do so. In spite of this, the processing operations in the 1992/93
   marketing year, now coming to a close, have been carried out extremely
   smoothly considering the crisis situation in which the fruit and
   vegetables sector as a whole has suddenly been plunged since the spring.
   It is generally felt that the threshold system has functioned well, and
   the data, admittedly still provisional, on the quantities processed show
   that for the main tomato products, i.e. concentrates and peeled
   tomatoes, the thresholds have not been exceeded, while for the "other
   products" they have. Overall production, however, is falling.
   According to the undertaking given in discussions at the Council
   concerning the price package 1992/931, the Commission proposes herewith
   that the quota system be reintroduced and applied in the same way as in
   the 1990/91 and 1991/92 marketing years. The threshold system is not to
   be renewed.
   As was stated at that time, the 1992/93 marketing year is not to be
   included in the three-year reference period serving as a basis for the
   allocation of quotas for processing plants. The system is introduced
   for an indefinite period so as to save the Council having to extend it
   at regular intervals, given that the data are the same from one
   marketing year to the next.
3. The Commission will make the necessary proposals as and when the
   situation in the processing sector and the consequences for that sector
   of the reform of the CAP as regards arable crops warrant a further
   review of the policy pursued.
   The .. OUP.C :''. agrees that the qurt.a system should be reintroduced in
   1993/?' i _a,d calls upon the Comnu .. n to present a formal proposal to
   thi-   i iect before the end of OctoL... this year.
 ---pagebreak---                         COUNCIL REGULATION (EEC) No
              on the introduction of a limit to the granting of
                production aid for processed tomato products
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic Community,
Having regard to council Regulation (EEC) No 426/86 of 24 February 1986 on
the common organization of the market in products processed from fruit and
vegetables1, as last amended by Regulation (EEC) No 1569/922, and in
particular Article 2(2) thereof,
Having regard to the proposal from the Commission,
Having regard to the opinion of the European Parliament,
Having regard to the opinion of the Economic and Social Committee,
Whereas Council Regulation (EEC) No 989/843 of 31 March 1984, as amended
by Regulation (EEC) No 1755/924, introduces, as from the 1985/86 marketing
year, a system of guarantee thresholds for certain processed fruit and
vegetable products; whereas it also appeared necessary, from the 1985/86
marketing year, to limit the granting of production aid in producer Member
States to certain quantities of fresh tomatoes intended for processing;
whereas these limitation arrangements were last extended in respect of the
1990/91 and 1991/92 marketing years by Council Regulation (EEC)
No 1203/905 of 7 May 1990 on temporary measures relating to production
aid for processed tomato products;
 1  OJ No L  49, 27.2.1986, p.   1.
2   OJ No L 166, 20.6.1992, p.   5.
3   OJ No L 103, 16.4.1984, p. 19.
 4  OJ No L 180,  1.7.1992, p. 25.
 5  OJ NO L 119, 11.5.1990, p. 68.
 ---pagebreak---                                     - 2 -
Whereas on the expiry of Regulation (EEC) No 1203/90, the system of
guarantee thresholds in respect of the 1992/93 marketing year has again
spontaneously produced its effects; whereas, however, in view of the
situation in the sector, it appears preferable for the arrangements
restricting the granting of the aid to be reapplied from the 1993/94
marketing year;
Whereas the quantities of fresh tomatoes which may qualify for the
production aid should be fixed for each producer Member State; whereas, in
view of the production target and the market situation, such quantities
should be fixed at the same levels as those which were applied for the
1991/92 marketing year;
Whereas those quantities of fresh tomatoes should be broken down between
the processing undertakings on the basis of the total quantities which they
processed in the last three marketing years preceding the marketing year
for which the aid is fixed;
Whereas the undertakings which started production after the beginning of
the second marketing year preceding the marketing year for which the aid is
fixed have only partially benefited from the ^production aid scheme;
whereas, under the new scheme, they should be granted a quota based on a
suitable reference period; whereas, in order to permit some development in
the production structures in the sector, a percentage of the overall
quantities allocated in each Member State should be reserved for
undertakings which start production during the marketing year for which the
aid is fixed; whereas, in view of the fact that the quantities available
are limited, quantities should only be allocated to those undertakings
presenting guarantees as to the efficiency and durability of their
activities ;
Whereas, in order to prevent that for the 1992/93 marketing year and while
the threshold scheme is in force processing undertakings increase their
production in anticipation of the arrangements limiting the aid, which the
institutions had announced would be reintroduced for the 1993/94 marketing
year, the latter simultaneously laid down that the quantities produced in
1992/93 would not be taken into account for the application of the rules
for the allocation of the national limits between the processing
undertakings, and whereas the consequences should be drawn from this for
all -he yr. lertakings concern* up to the 1995/96 marketing year;
 ---pagebreak---                                    - 3 -
HAS ADOPTED THIS REGULATION:
                                 Article 1
1. From the 1993/94 marketing year, production aid granted to all
processing undertakings in each Member state shall be limited to the
quantities of processed tomato products obtained from the following
quantities in tonnes of fresh tomatoes:
All undertakings  Tomato        Tinned whole            Other tomato
located in        concentrate   peeled tomatoes         products
Spain               550 000       240 000               177 050
France              278 691        73 628                40 087
Greece              967 003        25 000                21 593
Italy             1 655 000     1 185 000               453 998
Portugal            832 945        19 600                42 192
Germany              33 700                               1 300
2. The quantities laid down in paragraph 1 shall, without prejudice to
paragraph 3, be divided by the Member States between the processing
undertakings in proportion to the average quantities actually produced by
each of them during the three marketing years preceding the marketing year
for which the aid is fixed.
On application by the undertaking concerned, the competent authorities of
the Member state shall authorize one only of the following transfer
possibilities :
   a transfer of up to 25% of quantities of peeled tomatoes, expressed in
   quantities of fresh tomatoes, to the quantities allocated for tomato
   concentrate and other tomato products,
 ---pagebreak---                                      - 4 -
-    a transfer of up to 5% of quantities of tomato concentrate, expressed in
    quantities of fresh tomatoes, to the quantities allocated for the other
    products,
-    a transfer of up to 5% of the quantities of other tomato products,
    expressed in quantities of fresh tomatoes, to the quantities allocated
     for concentrate.
3. For the granting of the aid:
 (a)      processing undertakings which started production during the two
          marketing years preceding the marketing year for which the aid is
          fixed shall be granted a quota calculated on the basis of the
          average quantities produced during those marketing years;
 (b)      processing undertakings which started production in the marketing
          year preceding the marketing year for which the aid is fixed shall
          be granted a quota corresponding to the quantities processed during
          that marketing year;
(c)       processing undertakings which started production of one of the
          finished tomato products mentioned in paragraph 1 during the
          marketing year for which the aid is fixed shall qualify for
          production aid under the following conditions, provided that they
          present, to the satisfaction of the competent authorities, adequate
          guarantees as to the efficiency and durability of their activities.
          The producer Member States shall reserve 2% of the total quantities
          fixed for each group of finished products for the purposes of
          allocating quotas to the undertakings referred to in the first
          subparagraph.  The quota allocated to each undertaking may not
          exceed its processing capacity, less 30%.
4. Where all the quantities defined in paragraph 1 have not been allocated,
the remainder shall be divided fairly between the processing undertakings
referred to in paragraph 2, taking account in particular of those
undertakings which use new production technology.
 ---pagebreak---                                    - 5 -
                                 Article 2
For the first three marketing years of application of this Regulation, and
by way of derogation from Article 1(2) and (3), the quantities produced for
the 1992/93 marketing year shall not be taken into account for the
calculation of the average of the quantities produced.  Consequently,
Article 1(3)(c) shall also apply to undertakings which started production
in the 1992/93 marketing year.
                                 Article 3
Detailed rules for the application of this Regulation shall be adopted in
accordance with the procedure laid down in Article 22 of Regulation (EEC)
No 426/86.  They shall include in particular rules applicable in the case
of mergers and changes of ownership of undertakings.
                                 Article 4
This Regulation shall enter into force on the third day following 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
 ---pagebreak---                                                         -*•-
  1                                                                                                                t
  ! FINANCIAL                           STATEMENT
                                                                        DATE:                                      |
 ! 1. BUDGET HEADING: 1511                                               APPROPRIATIONS: (1993 DB) ECU 447 mio      \
 ! 2. TITLE:                                                                                                        !
 i Council Regulation introducing a limit on aid granted for the production of processed tomato products
 ! 3. LEGAL BASIS:                                                                                                  !
 ! Regulation (EEC) Nb 426/86                                                                                       \
 i 4. AIMS OF PROJECT:                                                                                            ,'
 i To reintroduce frcm the 1993/94 marketing year the arrangements for limiting aid.                               !
                                    ! Period of 12 months  Current Financial Year    Following Financial Year     ',
 ! 5. FINANCIAL IMPLICATIONS                                        1993                     1994                 i
 | 5.0 EXPENDITURE
 ,'    - CHARGED TO THE EC BUDGET
 !     - (REFUNDS/INTERVENTION)              -                        -                        - (*)               !
! 5.1 REVENUE
!      - OWN RESOURCES OF THE EC
!         (LEVIES/CUSTCMS DUTIES)
 !     - NATIONAL
                                         1995                  1996          !    1997                1998         ;
! 5.0.1 ESTIMATED EXPENDITURE
I 5.1.1 ESTIMATED REVENUE               -                                    !                                     •
| 5.2 METHOD OF CALCULATION:                                                                                       !
j 6.0 CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET? !
!                                                                                                          YESXXX !
! 6.1 CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET?                              |
!                                                                                                          YESxxx |
! 6.2 IS A SUPPLEMENTARY BUDGET NECESSARY?                                                                         !
i                                                                                                         xxx/ND !
,' 6.3 WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY?                                                              i
!                                                                                                          YESxxx J
{ OBSERVATIONS:                                                                                                    {
! (*) The expenditure depends on both production within the quota and aid. The latter has rot yet been fixed !
i      for the marketing years concerned. On the basis of aid currently applying, tomato processing costs         i
!      amount to ECU 358 million (A).                                                                              |
 ---pagebreak---                                                 t
                                                                     ISSN 0254-1475
                                                               COM(92) 474 final
                                                      DOCUMENTS
EN                                                                              03
                                 Catalogue number : CB-CO-92-496-EN-C
                                                             ISBN 92-77-49244-9
)ffice for Official Publications of the European Communities
,-2985 Luxembourg