CELEX: 51988PC0466
Language: en
Date: 1988-09-12
Title: Proposal for a COUNCIL REGULATION (EEC) amending Regulation (EEC) No 804/68 on the common organization of the market in milk and milk products#Proposal for a COUNCIL REGULATION (EEC) amending Regulation (EEC) No 857/84 adopting general rules for the application of the levy referred to in Article 5c of Regulation (EEC) No 804/68 in the milk and milk products sector#Proposal for a COUNCIL REGULATION (EEC) amending Regulation (EEC) No 2237/88 establishing, for the period running from 1 April 1988 to 31 March 1988, the Community reserve for the application of the levy referred to in Article 5c of Regulation (EEC) No 804/68 in the milk and milk products sector#Proposal for a COUNCIL REGULATION (EEC) fixing the intervention price for butter from... 1988#Proposal for a COUNCIL REGULATION (EEC) amending Regulation (EEC) No 1079/77 on a co-responsibility levy and on measures for expanding the markets in milk and milk products#(presented by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (88) 466
Vol. 1988/0167
 ---pagebreak--- Disclaimer
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 concerning
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In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1. Februar
1983 über die Freigabe der historischen Archive der Europäischen Wirtschaftsgemeinschaft und
der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983, S. 1), zuletzt geändert durch die
Verordnung (EU) Nr. 2015/496 vom 17. März 2015 (ABI. L 79 vom 25.3.2015, S. 1), ist dieser Akt
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2015/444 vom      13.   März 2015     über die   Sicherheitsvorschriften für den Schutz von  EU-
Verschlusssachen als herabgestuft angesehen.
 ---pagebreak---   COMMISSION OF THE EUROPEAN COMMUNITIES
                                                         COM(88 ) 466 final
                                                         Brussels , 21 September 1988
                                    Proposal for a
                              COUNCIL REGULATION ( EEC )
 amending Regulation ( EEC ) No 804 / 68 on the common organization of the market
                             in mi lk and milk products
                                    Proposal for a
                              COUNCIL REGULATION ( EEC )
amending Regulation ( EEC ) No 857 / 84 adopting general rules for the application
  of the levy referred to in Article 5c of Regulation ( EEC ) No 804 / 68 in the
                           milk and milk products sector
                                    Proposal for a
                              COUNCIL REGULATION ( EEC )
   amending Regulation ( EEC ) No 2237 / 88 establishing , for the period running
       from 1 April 1988 to 31 March 1988 , the Community reserve for the
              application of the levy referred to in Article 5c of
                    Regulation ( EEC ) No 804 / 68 in the milk and
                                milk products sector
                                    Proposal for a
                              COUNCIL REGULATION ( EEC )
        fixing the intervention price for by butter from ...                   1988
                                                         , v\
                                                   ra •
                                        Proposal for a •        \A
                              COUNCIL   REGULATION ON (( EEC
                                                         EEC ))  ■ J
    amending Regulation ( EEC ) No 1079 /77 on a co-responsibility levy and on
                                                   a co-responsibility
           measures for expanding the markets in milk and       and milk products
                           (presented by the Commission )
 ---pagebreak---                                                         COM(88)466 ( PLAl-3309 )
                                    EXPLANATORY MEMORANDUM
                 ADJUSTMENT OF TH E MILK QUOTA SCHEME AND RELATED MEASURES
1 . The problem of the "SLOM"
     In its judgment of 28.4.1988 in Cases 120/86 and 170/86 , the Court of
    Justice found Regulation ( EEC ) No 857 /85 invalid in so far as it failed to
    provide for the allocation of a reference quantity to producers having
    drawn non-marketing premiums under Regulation ( EEC ) No 1078 / 77 and , for
    this reason , not having delivered milk during the reference year chosen by
    the Member State . A new paragraph should therefore be added to Article 3 of
    Council Regulation ( EEC ) No 857/84 , which sets out conditions governing
    special situations for the allocation of reference quantities .
    Having affirmed the principle , the Court gives no guidance as regards the
    very important questions raised by its implementation , concerning the
    status of the beneficiaries and the allocation , volume and origin of the
    reference quantities .
    (a ) The status of the beneficiary
         What is certain is that , in order to avoid any speculation on the
         value-increase contributed by the quota , allocation of reference
         quantities must be restricted to cases , with proper evidence , of
         producers who :
         - are still main-occupation farmers ,
         - have complied in full with the undertaking entered into under
            Regulation ( EEC ) No 1078 / 77 ,
         - applied in vain to the Member State 's competent authority for a
            reference quantity between 31.3.1984 and 31.7.1988 ,
         - undertake to continue or resume effectively dairy production up to
            the end of the eighth period of application of the additional levy
            scheme ( without ceasing farming , without transferring their quotas ,
            and foregoing any benefit from ''cessation' or other programmes ).
         In these circumstances , it is estimated that the volume covered l>> the
         eligible applications will not exceed 1 million tonnes . Il wi 1 1 Le
         recalled that the milk non-marketing and dairy herds conversion s-.cc
         covered about 6.6 million tonnes of milk and 1 20 Of *"* farrv-rs ,    .1 . f
         th . at    1 farmers (< i . '■<!•- JM ;
 ---pagebreak---                                                      COM(88 ) 466 ( PLAI-3309 )
                                        _ 2 -
 ( b ) The allocation of a reference quantity
       Article 3 of Regulation ( EEC ) No 857 / 84 distinguishes two types of
       special situation : those which may confer entitlement to a specific
       reference quantity and those conferring entitlement to the taking into
       account of another reference year . The case of the " SLOM" could arise
       in either of these types of special situation , which authorize either
       the allocation of a specific reference quantity on the basis of the
       Member State 's possibilities or the compulsory allocation of a quantity
       corresponding to the whole of the production of another reference year .
       Such compuslory allocation would place " SLOM" in a much more favourable
       situation than that enjoyed by other farmers , and in particular , those
       qualifying only for a specific reference quantity . Form the legal point
       of view , there seems to be no case at all for discrimination of this
       kind . As a matter of fairness , corresponding as closely as possible to
       the objective of controlling production and to the procedures for the
       additional levy scheme , the Commission should therefore propose that
       the Council amend Article 3 of Regulation ( EEC ) No 857 / 84 by adding the
       case of " SLOM" to the list of beneficiaries of specific reference
       quantities .
( c ) The volume of the reference quantity
       Again as a matter of fairness to the other producers subject to the
       quota scheme , this quantity may not exceed the quantity of milk
       delivered or produced on the basis of which the premium paid was
       calculated .
( d ) The origin of the reference quantities to be allocated
       The quantities must be drawn up either from the national reserve or
       from an increase in the Member State 's overall guaranteed quantity .
       Where the latter possibility must be ruled out because of the
       unjustified advantage which could accrue from it for the " SLOM ", there
       could , none the less , be access to the Community reserve and
       correspondingly an increase in the latter to ease the difficulties the
       Member States have to contend with in the allocution to the " SI . DM " ot
       the specific reference quantities .
 ---pagebreak---                                                                                     -ч-
                                                       COM(88)466 ( PLAI-3309 )
                                          - 3 -
          For it is a fact that the impact of the inclusion of the "SLOM" in the
         special situations will differ from Member State to Member State : there
         will be no impact at all for Italy , Creece or Spain , while the impact
         will be of great importance for Germany which accounts for two-thirds
         of the "SLOM", Denmark and the United Kingdom ( cf . table annexed ).
         A balanced solution could therefore be sought on the basis of an
         increase in the national reserves by the Member States and a
         supplementary increase in the Community reserve .
         A 500 000-tonne increase in the Community reserve could help to solve
         the problem , the balance of the quantities concerned to be mobilized
         within the Member States' overall guaranteed quantities .
2 * Problem of the sum of the reference quantities distributed exceeding the
    overall guaranteed quantity
    With the amendment of Regulation ( EEC ) No 857 / 84 to cover the case of the
    "SLOM", the difficulties the Member States have had to contend with in
    implementing the scheme should also be recognized : at the end of the first
    period of implementation of the additional levy scheme , regional and
    inter-regional offsetting between under-used and over-used quantities had
    to be authorized to mitigate the rigour of the procedures . Article 4a was
    therefore added to Regulation ( EEC ) No 857 / 84 . It applies in respect of the
    levy-paper and corrects the individual reference quantity to which the
    payer is , quite properly , entitled . But some Member States felt able to
    take the view , regarding Article 4a with Article 9(4 ) of the same
    Regulation , that Article 4a cold be interpreted as applying at the level of
    the Member State , so that only excesses beyond the overall guaranteed
    quantities attracted charges . As implementation of the additional levy
    scheme has been extremely complex , extensive application of Article 4a is
    appropriate for the first two periods , and it should be amended along these
    lines .
 ---pagebreak---                                                        C0M(88)A66 ( PLAI-3309 )
                                          - A -
 3 . Budgetary implications
     A 500 000-tonne increase in milk production will entail an increase in
     surpluses the marginal cost of disposal of which at normal export cost can
     be estimated at about 93 million ECU ( cf . financial statement ), from which
     about 3 million ECU should be deducted corresponding to the amounts to be
     charged as linear co-responsibility levy on the additional quantities of
     milk .
     Ways and means of offsetting the cost of this foreseeable increase in
     expenditure of about 90 million ECU should be sought by endeavouring to
     reduce the average cost of disposal expenditure .
     The reduction in the aid amounts , by increasing the cost of subsidized
     products , could well hamper disposal of surpluses . In this connection , it
     would be preferable to change the intervention price and set the aid amount
     in terms of disposal objectives .
     As milk product prices have moved favourably on the market , the
     intervention price for skimmed-milk powder ( SMP ), lower by 20 to 30% than
     the market price , has no longer any impact on the aids . On the other hand ,
     this is not the case as regards butter , the market price of which is close
     to the intervention price .
A. Reduction in the intervention price for butter
     Despite the restoration of sound conditions as regards butter stocks and an
     improvement in the market situation which has been the result of this , the
     intervention price for butter still governs its market price , in particular
     through the buying-in of butter at a price fixed by tender as a proportion
     of the intervention price payable in each of the Member States . Econometric
     studies of the price elasticity of demand for butter , endorsed by
     experience gained in 198A / 85 and 1985 / 86 following reductions in the butter
     intervention price , have shown that cheaper butter steps up its use . On
     this basis , it can be expected that a lower intervention price for butter
     would help to reduce the financial impact of the increase in the Coiimuin i tv
     reserve in connection with the " SLOM ".
 ---pagebreak---                                                       C0H(88)466 ( PLAl-3309 )
                                         - 5 -
    With a 21 reduction in the intervention price for butter associated with
     the maintenance of the intervention price for skimmed-milk powder without
    change in the target price , the savings are estimated at about
     74 million ECU , allowing for a reduction in the aids and refunds and a
    reduced export requirement deriving from an increase in consumption , on the
    one hand , and an increase in aid to private storage , on the other ( cf .
    financial statement ).
    Thus , such a change in the price arrangements is unlikely to bring the milk
    price below the target price and should therefore have no severe impact on
    farmers' incomes .
5 . "Modulation " in the co-responsibility levy on small producers
    Experience gained in the implementation of Council Regulation ( EEC )
    No 1207 / 84 on support for the incomes of small producers during 1^84 / 85 and
    1985 /86 , the procedures of which proved extremely difficult to implement in
    practice , fully justifies a direct alteration of the co-responsibil ity levy
    in favour of small farmers . For this purpose , a clause could be introduced
    into Council Regulation ( EEC ) No 1079 / 77 on the co-responsibility levy ,
    according to which , as regards producers whose deliveries during the fourth
    period of application of the additional levy do not exceed 60 000 kg , the
    co-responsibility levy is reduced by 0.5 points .
6 . Summarizing , this is the list of proposals which should be laid before the
    Council with a view to solving the problems oientioned above :
    ( a ) proposai for a régulation amending   Régulation ( EEC ) No 804 / 68 ;
    (b ) proposal for a . egulation amending   Regulation ( EEC ) No 857 /84 ;
    ( c ) proposai for a régulation amending   Régulation ( EEC ) No 2237/88
          establishing the Community reserve   for the period from   1.4.1988 to
          31.3.1989 ;
    ( d ) proposal for a regulation amending the intervention price for butter ;
    ( e ) proposai for a régulation amending Régulation ( EEC ) No 1079 / 77 on lhe
          co-responsibi 1 ity levy .
These proposals form an interrelated whole , necessitating an overall de<-:*ii«.
    Annexes
 ---pagebreak---                                                  C0M(88)466 ( PLAI-3309 )
                                             Beneficiaries , numbers of dairy cows and estimate of milk deliveries
                                               covered by milk non-marketing and dairy herd conversion premiums
                                                                      between 1978 and 1981
                                        MILK NON-MARKETING                        1                DAIRY HERD CONVERSION                1        TOTAL         1
                                                                                  1                                                     1                      1
                                                                                  1                                                     1                      1
: Average     Member  1 Bene       Number of    Average  Estimated deliveries     1 Bene-     Number of   Average                                              1
: production  State   1 ficiaries  COWS         herd       tonnes     % Of        1 ficiaries COWS        herd      tonnes   % of       1 tonnes    % Of       1
: per cow in                       concerned                          collection  1           concerned                      collection 1           collection !
: 19dl ( kg )                                                          in 1981    1                                                     1           in 1981    1
                                                                                  1                                                     1                      1
     2 942        B   1    2 122     26 600       12.5       78 300        2,5    1 338        9 500        28,1     27 900       0.9   1   106 200      3.5   1
     4 370      OK    1    7 577    153 300       20,2      670 000       13,9    1 93         2 600        27,9     11 400       0.2   1   681 400    14,1    1
     4 000        0   1   73 831    609 000        8,2   2 436 000        10,6    1 2 659     61 700        23,2    246 800       1.1   1 2 682 800    11.7    1
     3 231        F   1   15 777    213 400       13,4      689 500        2,7    1 4 489     114 300       25,5    369 300       1.5   |1 058  800      4.2   1
     2 940     IRL    1    2 280     58 700       25,7      172 600        3,8    1 950       33 300        35,0     97 900       2.2   1 270   500      6.0   1
     4 100     LUX           389      4 800       12,3       19 700        7,5    1 11           300        32,6      1 200       0.5   1 20    900      8.0   1
:    5 062      NL    1    3 895     69 000       17.7      349 300        3,0    1 172        4 600        26.7     23 300       0,2   1 372   600      3.2   1
     4 380      UK    1    5 694    223 500       39,2      978 900        6.4    1 2 510     102 800       41 ,0   450 300       2,9   |l 429  200      9,3   1
                                                                                  1                                                     1                      1
                                                                                  1                                                     1                      1
     3 878    Co-     1  in  565  1 358 300       12,2   5 394 300         5,6    1 11 222    329 100       29,3   1 228 000      1.3   |6 622  000      6.9   1
              mmunity                                                             1                                                     1                      1
 ---pagebreak---                               -7
                                  Proposal tor a
                            COUNCIL REGULATION ( EEC )
wending Segulation ( EEC ) No 804 /68 on the eoooon organitation of the narket
                           in mi lk and milk products
 ---pagebreak---                                                                                   f
                                EXPOSE DES MOT I FS
Dans le contexte de la modification du règlement ( CEE ) no 857 / 84 en faveur
des " SLOM ", la présente proposition modifie le règlement ( CEE ) no 804 / 68 en
prévoyant    le cas des cessions temporaires de quantités de référence à des
fins spéculatives , pour dès lors en limiter l' utilisation .
 ---pagebreak---                                                                                       -8
                                                         COM ( 88)4. 66 ( PLAI-3309 )
                                             Draf t
                                 COUNCIL REGULATION ( EEC ) No
                                               of
         amending Regulation ( EEC ) No 804. / 68 on the common organization of the
                             market in milk and milk products
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community , and
in particular Article 4 3 thereof .
Having regard to the opinion of the European Parliament ,
Whereas Article 5c(la ) of Commission Regulation ( EEC ) No 804. / 68 ( 1 ), as last
amended by Regulation ( EEC ) No 1109 / 88 ( 2 ), allows Member States to authorize
temporary and partial transfers of reference quantities ; whereas this facility
was introduced specifically to deal with a drop in production ; whereas the
possibility that temporary transfers could be used for speculative purposes
must be covered and limits set to the use of such transfers ,
HAS ADOPTED THIS REGULATION :
                                           Article I
The following second subparagraph is added to Article 5c(6 ) of Regulation
( EEC ) No 804. / 68 :
     "The Council shall , where necessary and in accordance with the same
     procedure , set limits to the temporary transfers referred to in paragraph
     la ."
( 1 ) 0J No L 14.8 , 28.6.1968 , p.   13 .
( 2 ) OJ No L 110 , 29.4.. 1983 , p.  27 .
 ---pagebreak---                                                  COM(88)466 ( PLAI-3309 )
                                      - 2 -
                                    Article 2
This Regulation 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
 ---pagebreak---                                     Proposal for a
                               COUNCIL REGULATION ( EEC )
amending Regulation ( EEC ) No 857 / 84 adopting general rules for the application
 of the levy referred to in Article 5c of Regulation ( EEC ) No 804 / 68 in the
                           mi Ik and mi Ik products sector
 ---pagebreak---                                                                                      тю
                                                       C0M(88)466 ( PLAI-3309 )
                                  EXPLANATORY MEMORANDUM
 On the 28 April 1988 the Court of Justice , in Cases 120 / 86 ( Mulder ) and 170 / 86
 (Von Deetzen ), declared Regulation ( EEC ) No 857 / 84 adopting general rules for
 the application of the additional levy in the milk sector to be partly invalid
because it did not provide for a reference quantity to be assigned to
 producers who , as the result of an undertaking entered into purusant to
Regulation ( EEC ) No 1078 / 77 introducing milk non-marketing and dairy herd
conversion premiums scheme , had delivered no milk during the reference year
selected by the Member State concerned .
An addition must therefore be made to Article 3 of Regulation ( EEC ) No 857 / 84 ,
which lists the various situations in which producers may obtain special
reference quantities , so as to cover the case of producers who were unable to
obtain a reference quantity because of an undertaking entered into pursuant to
Regulation ( EEC ) No 1078 / 77 .
The new point 4 of Article 3 has been inserted in order to comply strictly
with the judgments of the Court , but in such a way that the award of the
special reference quantities does not undermine the efforts being undertaken
to control milk production . Over 120 000 producers have received premiums in
respect of around 6.6 million tonnes of milk under Regulation ( EEC )
No 1078 / 77 , application of which has caused many small farms to stop
producing . The benefits of this restructuring should be preserved by laying
down a very clear framework for the award of special quantities in this case .
Thus , producers will receive a special quantity from the national reserve , it
being made clear that the latter will be augmented for this purpose by an
increase in the Community reserve from the fifth period of application of the
scheme . The award is subject to a number of conditions designed to ensure that
the applicant does not intend to transfer the quantity obtained but acutally
wishes to produce it . There must be a real resumption of farming as the
applicant 's main occupation .
 ---pagebreak---                                                                                 - A4-
                                                     C0M(88)666 ( PLAI-3309 )
                           *            - 2 -
The new text seta a ceiling on the apecial quantity liable to be awarded on
the baaia of the Boat recent production figurea known and accepted by the
coapetent authoritiea aince they were uaed aa a baaia for calculating the
premiums granted under Regulation ( EEC ) No 1078 / 77 . In the intereata of
faimeaa and to reply to the queation of whether the new proviaion haa
retroactive effect , the quantitiea produced by the beneficiary of a apecial
quantity before the fifth period of application of the quota eyatem are exempt
froa levy up to the level of the aaid quantity .
In addition , thia ia alao an opportunity to acknowledge the difficulties
encountered by Member Statea in implementing the acheme . At the end of the
firat period of application it waa found necessary , in order to mitigate the
severity of the levy arrangements , to authorise the offsetting within and
between regions of quantitiea that had been under- or over-used . Article 6a
was therefore inserted in Regulation ( EEC ) No 857 / 86 . It applies to the
persons who are liable to the levy and corrects the individual reference
quantities to which they are entitled . Some Member States may have thought
that , read with Article 9(6 ) of the same Regulation , Article 6a could be
interpreted aa applying to the Member States , so that only overshooting of the
overall guaranteed quantities should be penalized . Since implementation of the
additional levy scheme wns highly complex , it appears advisable to authorise
an "extensive " application of Article 6a in respect of the first two periods .
 ---pagebreak---                                                         C0M(88)466 ( PLAI-3309 )
                                          Proposai for
                           COUNCIL REGULATION ( EEC ) No      / 88
                                               of
          amending Regulation ( EEC ) No 857 / 84 adopting general rules for the
                 application of the levy referred to in Article 5c of
            Regulation ( EEC ) No 804 / 68 in the milk and milk products sector
 THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
 Having regard to the Treaty establishing the European Economic Community ,
 Having regard to Council Regulation ( EEC ) No 804 / 68 of 27 June 1968 on the
 common organization of the market in milk and milk products ( 1 ), as last
amended by Regulation ( EEC ) No 1109 / 88 ( 2 ), and in particular Article 5 c ( 6 )
 thereof ,
Having regard to the proposal from the Commission ,
Whereas Article 3 of Regulation ( EEC ) No 857 / 84 ( 4 ), as last amended by
Regulation ( EEC ) No 1110 / 88 ( 5 ), provides for certain special situations to be
taken into account in determining the reference quantities ; whereas the
situations which may entail the grant of a special quantity from the national
reserve do not cover producers who entered into an undertaking pursuant to
Council Regulation ( EEC ) No 1078 / 77 introducing a milk non-marketing and dairy
herd conversion premium scheme ( 6 ) and who for that reason did not deliver any
milk or milk products during the reference year selected by the Member State
concerned , unless such producers have made investments , have implemented a
development plan or rank as young farmers ; whereas the list of special
situations in Article 3 must therefore be adapted so that the producers
concerned can receive a special quantity if the Member State is able to grant
it to them either from the deliveries reserve or from the direct sales reserve ;
( 1 ) 0J No L 148 , 28 . 6.1968 ,  p.    13 .
( 2 ) 0J No L 110 , 29 . 4.1988 ,  p.    27 .
( 3 ) 0J No L                   .  P-
( 4 ) OJ No L 90 , 1 . 4.1984 ,    p.    13 .
( 5 ) OJ No L 110 , 29 . 4.1988 ,  p.    28 .
( 6 ) 0J No L 131 , 26 . 5.1977 ,  p.      I.
                                                                                 r
 ---pagebreak---                                                     COt H 68)466 ( PLAI-3309 )
                                         * 2 -
                                                                                       i
 Where**, however , producers may claim to such special quantities only on , v
 certain conditions desgned to ensure that the quantities granted are not
 intended to provide an unwarranted profit but to be actually produced ; .whereat
 the Member Statea should be allowed to undertake effective checks of these                    '
 conditions ; whereas it is therefore necessary to introduce a time limit af^er .
 which application may not be accepted ; whereas producers entitled .under the . .
measure were in possession , within the time limit thus fixed , of all the
necessary information enabling them to introduce an application to 'the                 'u* //
 competent authorities ; whereas , in the absence of a reference production year .
                                                                          •         *. )
 it is necessary to set an upper limit on the quantity envisaged , on the basis'
                                                                               ■. i %
of the most recent production figures known and accepted by the competent
authority prior to the implementation of the non-marketing and conversion
programme ;
Whereas where the producer has resumed production prior to receiving his
special reference quantity , it seems fair not to subject the quantities thus
produced to the levy ;
Whereas Article 4a authorizes quantities which have not been used by
purchasers or producers to be redistributed to other purchasers or producers ;
whereas the levy is then collected only on those quantities which exceed the
individual reference quantities as corrected by the said redistribution ;
whereas these provisions , which are applicable to the person liable to the
levy and to the amount of the reference quantity to which he is entitled , may
have caused the Member States some problems in applying the additional levy
scheme when it was first implemented ; whereas the difficulties experienced by
Member States should be taken into account by requiring the levy to be pail to
the Community , in the case of the first two periods of application of ths
scheme , only if one or other of the two overall guaranteed quantities is
exceeded .
HAS ADOPTED THIS REGULATION :
 ---pagebreak---                                                        C0M(88 ) 466 ( PLAI-3309 )
                                            - 3 -
                                          Artide 1
Regulation ( EEC ) No 857 /84 is hereby amended as follows :
1 . The following point 4 is added to Article 3 :
    "4 . Producers who practice farming as their main occupation and who :
         - pursuant to an undertaking entered into under Regulation ( EEC )
           No 1078 / 77 , did not deliver milk or milk products during the
            reference year selected by the Member State concerned ,
         - submitted an application for a reference quantity to the competent
           authority of the Member State between 31 March 1984 and 31 July 1988
           and had it . rejected ,
         shall receive a special reference quantity if the Member State is able
         to grant it to them within the limit of the overall guaranteed quantity
         laid down in either Article 5c of Regulation ( EEC ) No 804 / 68 or in the
         Annex to this Regulation , and on the condition that they :
         - did not cease farming within the meaning of Article 2(3 ) and ( 4 ) of
           Regulation ( EEC ) No 1078 / 77 or transfer the whole of their dairy
           enterprise before the end of the non-marketing or conversion period ;
         - establish to the satisifaction of the competent authority that they
           are able to produce on their holding up to the special reference
           quantity awarded and undertake actually to continue or resume milk
           production on that holding until the end of the eighth period of
           application of the additional levy scheme .
 ---pagebreak---                                               COM ( 88 ) 466 ( PLAI-3309 )
                                 - 4 -
 The special reference quantity shall not be store that the quantity of
 milk delivered or the quantity of stilk equivalent sold by the producer
 during the 12 calendar nonths preceding the sionth in which the
 application for the non-marketing or conversion premium was submitted ,
 as determined by the competent authority concerned pursuant to
 Article 5(l)(e ) of Regulation ( EEC ) No 1391 / 78 .
Where the producer transferred part of his holding during the
non-marketing or conversion period ,:
- the transferor 's special reference quantity may not be greater than
   the quantity 's for which entitlement to the premium has been retained ;
- the transferee 's special reference quantity may not be greater than
   the quantity for which entitlement to the premium has been acquired .
That part of the special reference quantity which is not intended for
use during a twelve-month period may not be the subject of a temporary
transfer as referred to in Article 5c(lb ) of Regulation ( EEC ) No 804 / 68 .
Where the holding referred to in the fourth indent of the first
subparagraph is sold or leased before the end of the eighth period of
application of the additional levy scheme the special reference
quantity shall be added in its entirety to the reserve referred to in
Article 5 or , as appropriate . Article 6(3 ) of this Regulation .
Producers eligible under the first subparagraph who receive a speical
reference quantity on the terms laid down in the second and third
subparagraphs shall not be liable to the levy in respect of quantities
produced prior to the fifth period of application of the scheme whi h
do not exceed the special quantity granted ".
 ---pagebreak---                                                         C0M(88)466 ( PLAI-3309 )
                                             - 5 -
 2 . The following subparagraph is added to Article 4a(3a ):
     "However , for the first two periods of application of the additional levy
     scheme levies shall be due to the Community only on the quantity by which
     either the overall guaranteed quantity referred to in Article 5c(3 ) of
     Regulation ( EEC ) No 804 / 68 and /or the overall guaranteed quantity referred
     to in Article 6(2 ) of this Regulation is exceeded ."
                                           Article 2
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---                                  Proposal for a
                           COUNCIL REGULATION ( EEC )
amending Regulation ( EEC ) No 2237 / 88 establishing , for the period running
    from 1 April 1988 to 31 March 1988 , the Community reserve tor the
          application of the levy referred to in Article 5c of
                Regulation ( EEC ) No 804 / 68 in the milk and
                             milk products sector
 ---pagebreak---                                                       C0M(88)466 ( PLAI-3309 )
                                  EXPLANATORY MEMORANDUM
Under Article 5c of Regulation ( EEC ) No 804 / 68 the Council must , for each
period of application of the additional-levy arrangements , fix the amount of
the Community reserve . It is proposed that this be raised to 943 000 tonnes
for the fifth period of application of the said arrangements in order to ease
the difficulties faced by Member States in allocating specific reference
quantities to producers who , having given undertakings pursuant to Regulation
( EEC ) No 1078 / 77 , have therefore been unable to obtain reference quantities .
 ---pagebreak---                                                                                   -Ai-
                                                         COM(88)466 ( PLAI-3309 )
                                          Proposai for
                             COUNCIL REGULATION ( EEC ) No    / 88
                                               of
     amending Regulation ( EEC ) No 2237 /88 establishing , for the period running
          from 1 April 1988 to 31 March 1988 , the Community reserve for the
                  application of the levy referred to in Article 5c of
            Regulation ( EEC ) No 804 / 68 in the milk and milk products sector
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
Having regard to Council Regulation ( EEC ) No 804 /68 of 27 June 1968 on the
common organization of the market in milk and milk products ( 1 ), as last
amended by Regulation ( EEC ) No 1109 /88 ( 2 ), and in particular Article 5c(6 )
thereof ,
Having regard to the proposal from the Commission ( 3 ),
Whereas Council Regulation ( EEC ) No 2237 /88 ( 4 ), fixes the Community reserve
for the period running from 1 April 1988 to 31 March 1989 at 443 000 tonnes ;
Whereas Council Regulation ( EEC ) No 857 /84 ( 5 ), as last amended by Regulation
( EEC ) No 1110 / 88 ( 6 ), provides for the allocation of specific reference
quantities to producers who , having given an undertaking pursuant to Council
Regulation ( EEC ) No 1078 / 77 ( 7 ), were accordingly unable to obtain a reference
quantity ; whereas in order to ease the difficulties faced by Member States in
allocating the said specific reference quantities , the Community reserve
should be increased by 500 000 tonnes .
HAS ADOPTED THIS REGULATION :
(1)  OJ  No  L 143 , 28 6.1968 ,    P·     13
(2)  0J  No  L 110 , 29 4.1988 ,    P·     27
(3)  0J  No  L     ,              • P·
(4)  OJ  No  L 197 , 26    7.19SS , P·     39
(5)  OJ  No  L  90 ,   l   4.1984 , P·     13
(6)  0J  No  L 110 , 29    4.19S8 , P·     23
(7)  0J  No  L 131 , 26    5.1977 , P·      1
 ---pagebreak---                                                      C0M(88)466 ( PLAI-3309 )
                                         - 2-
                                      Article 1
Article 1 of Regulation ( EEC ) No 2237 / 88 is replaced by the following :
    "Article 1
    For the period running from 1 April 1988 to 31 March 1989 , the Community
    reserve provided for in Article 5c(4 ) of Regulation ( EEC ) No 804 / 68 is
   hereby fixed at 943 000 tonnes , including 500 000 tonnes intended to temper
    the difficulties faced by Member States in allocating specific reference
   quantities in accordance with Article 3(4 ) of Regulation ( EEC ) No 857 / 84 ."
                                      Article 2
This Regulation 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
 ---pagebreak---                           Proposal tor a
                     COUNCIL REGULATION ( EEC )
fixing the intervention price for butter from
 ---pagebreak---                                                   C0M(88)466 ( PLAI-3309 )
                              EXPLANATORY MEMORANDUM
It is proposed that the Council reduce the Community intervention price for
butter by 2% . Given that the intervention price is a major component in market
pricing , the proposed reduction can be expected to have an immediate and
favourable effect on the market .
 ---pagebreak---                                                         C0M(88)466 ( PLAI-3309 )
                                      Proposai for
                           COUNCIL REGULATION ( EEC ) No     / 88
                                            of
              fixing the intervention price for butter fro* 1           1988
  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 Act of Accession of Spain and Portugal , and in particular
 Article 89(1 ) thereof .
 Having regard to Council Regulation ( EEC ) No 804 /68 of 27 June 1968 on the
 common organization of the market in milk and milk products ( 1 ), as last
 amended by Regulation ( EEC ) No 1109 /88 ( 2 ), and in particular Article 5(1 )
 thereof .
Having regard to the proposal from the Commission ( 3 ),
Having regard to the opinion of the European Parliament ( 4 ),
Having regard to the opinion of the Economic and Social Committee ( 5 ),
Whereas Council Regulation ( EEC ) No 2233 / 88 ( 6 ) fixes for the 1988 /89 milk
year , the target price for milk and the intervention price for butter ,
skimmed-milk powder and Grana Padano and Parmigiano Reggiano cheese ;
(1)   0J No L 148 , 28 . 6.1968   p.   13
(2)   OJ No L 110 , 29 . 4.1988   p.   27
(3)   OJ No L     ,               P-
(4 )  OJ No L     ,               P-
( 5 ) OJ No L                     P-
( 6 ) OJ No L 197 , 26 . 7.1988   p.   34
 ---pagebreak---                                                   C0M(88)466 ( PLAI-3309 )
                                       - 2 -
Whereas the market situation has changed since that Regulation was adopted , in
particular as a result of a rapid reduction in butter stocks ; whereas in order
to prevent those stocks from building again , the intervention price for butter
should be reduced ,
HAS ADOPTED THIS REGULATION :
                                     Article 1
With effect from 1          1988 the intervention price for butter shall be
332,87 ECU per 100 kg in Spain and 306,94 ECU per 100 kg in the rest of the
Community .
                                     Article 2
This Regulation 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
 ---pagebreak---                          - 21     b<S '
                               Proposal for a
                          COUNCIL REGULATION ( EEC )
amending Regulation ( EEC ) No 1079 / 77 on a co-responsibility levy and on
     measures for expanding the markets in milk and milk products
 ---pagebreak---                                                       C0M(88 ) 466 ( PLAI-3309 )
                               EXPLANATORY MEMORANDUM
When the additional milk levy was introduced in 1984 , a parallel measure
involving an income aid to be paid to small milk producers during the 1984 / 85
and 1985 / 86 milk years was adopted . This year the duration of the additional
milk levy arrangements was extended to eight 12-month periods and the
co-responsibility levy was renewed with effect from 1 July 1988 at a rate of
2% . Action to lighten the burden of the various aspects of the production
control system on small milk producers would , therefore , again appear
necessary . Experience would suggest that the best and most simple solution
would be to reduce the rate of the levy on those defined as small producers
whose deliveries over a specified period have not exceeded a given level .
Article 1(1 ) of Regulation ( EEC ) No 1079 / 77 defines the principle of the
co-responsibility levy and those who are liable for payment ; Article 1(2 )
provides for full exemption for certain mountain and hill areas ; Article 1(3 )
concedes a reduction in the rate applied to producers in less-favoured areas .
It is therefore proposed that a fourth paragraph be added specifying that
small producers are also eligible for a reduction in the rate of the
co-responsibility levy .
 ---pagebreak---                                                             C0H(88)466 ( PLAI-3309 )
                                         Proposai
                                            for a
                          COUNCIL REGULATION ( EEC ) No           / 88
                                             of
      amending Regulation ( EEC ) No 1079/ 77 on a co-responsibility levy and on
            measures for expanding the markets in milk and milk products
 THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
 Having regard to the Treaty establishing the European Economic Community , and
 in particular Article 13 thereof ,
 Having regard to the proposal from the Commission ( 1 ),
Having regard to the opinion of the European Parliament ( 2 ),
Having regard to the opinion of the Economic and Social Committee ( 3 ),
Whereas Regulation ( EEC ) No 1079 / 77 ( A ), as last amended by Regulation ( EEC )
No 2234 /88 ( 5 ) introduced a co-responsibility levy applicable until the end of
the 1988 /89 milk year and due , in principle , on all milk delivered to dairies
and on certain types of farm sale of milk products ;
Whereas pursuant to Article 5c of Council Regulation ( EEC ) No 804 / 68 on the
common organization of the market in milk and milk prodcuts ( 6 ), as last
amended by Regulation ( EEC ) No 1109 /88 ( 7 ), the duration of the additional
levy arrangements was extended from five to eight consecutive periods of
12 months ; whereas a decision was also taken to renew the co-responsibility
levy at the rate of 2Z with effect from l July 1988 ; whereas it woud seem
appropriate , therefore , to ease the burden of the co-responsibility levy on
small producers .
HAS ADOPTED THIS REGULATION :
(1)  0J No L      ,            ,  |>.             ( 5 ) O.l No I. 197 , 26.7.1 *> KX , |>. lh
(2)  OJ No L      ,            ,  p.              ( 6 ) OJ No L 148 , 28.6.1908 ,      p.  Il
(3)  0J No L      ,            ,  p.              ( 7 ) 0J No L 110 , 29.4.1988 ,      p.  27
(4 ) OJ No L 131 , 26 . 5.1977 ,  p.    b.
 ---pagebreak---                                                         C0M(88)466 ( PLAI-3309 )
                                           - 2 -
                                         Article 1
 The following fourth paragraph is added to Article 1 of Regulation ( EEC )
No 1079 / 77 :
    " 4 . The amount of the levy resulting from the application of Article 2 and ,
          where appropriate , of paragraph 3 of this Article , shall be reduced by
          0,5 points in respect of producers whose deliveries during the fourth
          period of application of the additional levy arrangements referred to
          in Article 5c of Regulation ( EEC ) No 804 / 68 did not exceed
          60 000 kilograms .
          Any producer who commenced or recommenced deliveries after the
          beginning of the fourth 12-month period before a date specified each
          year by the Member State concerned and whose deliveries as recorded or ,
          where appropriate , estimated , for the first year of production , do not
          exceed 60 000 kilograms shall also qualify for the 0,5 point reduction ."
                                         Article 2
This Regulation shall enter into force on the day of its publication in the
Official Journal of the European Communities .
It shall apply with effect from 1 July 1988 .
This Regulation shall be binding in its entirety and directly applicable in
all Member States .
Done at Brussels ,                                      For the Council
 ---pagebreak---                                                     S3L‘Trv7
                               Aü BLOM
Introduction
Las inoidenoes financières ont été établies pour l' enseabls du
paquet " SLOH " , o'est -A-dire :
     uns augmentation de la réserve oommunautaire de 500 . 0C0 t
     é partir du 1er avril 1968 ( Sième période de 12 mois
     d ' applioation du système du prélèvement supplémentaire ).
     une réduotlon du prix d' intervention du beurre de 2 % à
     partir du 1er ootobre 1966 (hypothèse de date d' entrée en
     vigueur de la mesure )
     une réduotlon du prélèvement linéaire de ooresponsabilité
     en faveur des producteurs livrant moins que 60.000 kg de
     lait de :
     - 1,0 % i 1,0 % pour les zones défavorisées ;
     - 3,0%À1,B% pour les autres zones .
     A partir du 1er Juillet 1988 ( début de la oampagne
     1968 / 69 )
1•   ÀutfmantAt.1 on da la résa rve oommunautalr.a_da 5QQ.QCQ _t
     Une augmentation de la production de lait de 900.000 t se
     traduit par une augmentation de la production du beurre
     et du lait écrémé en poudre de :
     - beurre                     ‘        22.780 t
     - lait éorémé en poudre      :        43.000 t
     Compte tenu de la nouvelle situation sur le marohé du
     lait il est estimé que le ooût marginal de l' éooulement
     correspond au ooût d' exportation .
 ---pagebreak---                                           2
       Par ailleurs , une augmentation de la production de lait
       oondult à l' élargissement des quantités soumises au
       prélèvement linéaire de ooresponsabilité .
       Sur oette base , le ooût supplémentaire est estimé À :
   - beurre       : 22.750t x 2.025 BCCT/t x 1,117 (DT)       - + B1,S MBCü(B)
   - LEP          : 43 . OOOt x 900 BCÜ/t x 1,060 (ET)        - + 41,8 KECO(B)
   - Ooresp ,     îBOO.OOOt X 278,4 BOO/ t X 2% X 1,005 (DT)- - 3 ,- MBOO(B)
                                                  Total         + 90,3 MBCO(B)
2.     Réduction de 2% du prix d '■intervention du beurra
       La réduotlon du prix du beurre de 2 % aura un effet sur
       le niveau des . restitutions et des aides , sur la
       consommation de beurre non subventionné et sur l' aide au
       stookage privé de beurre pour les (Quantités oontraotées
       et toujours en stook .
       L' effet de oes trois éléments peut être estimé à :
       -   les aides et les restitutions sont
           réduites du montant de la baisse
           du prix du beurre ( 62,8 Eou / t ).
           Les inoidenoes sur l' ensemble
           des mesures de soutien du marobé
           ainsi que la déprédation des stocks
           à l' entrée s' élèvent à :                           - 61,8 MECU(B )
       -   l' augmentation de la consommation de
           beurre est estimée à, 12.000 t sur base
           d' une élastlolté de prix de - 0,5 .
           L' exportation de beurre pourrait dono
           être réduite en oonséquenoe :
           - 12 . 000tx ( 2025 -63)EGÜ / tí 1 )xl,117(DT)s      - 20,3 MECU(B )
       - pour le stookage privé il est estimé que
           200 . OOOt de beurre bénéficieront d' une
           augmentation de l' aide de 62,6 ECU / t :
           200 . OOOt X 62,6 ECU / t x 1,123 ( DT )         :   + 14,1 MECU(B )
                                                    Total :     - 74 ,- MECU(B )
( 1 ) La restitution retenue tient oompte de la réduotlon du prix d'
beurre .                                                                       nn
 ---pagebreak---                                       a
3•     Réduction du Br&làYflBfl nt . linéaire en faveur des
       MQdUQtauf livrant aalna Am fin , CCS kg de lait
       Pour déterminer la quantité de lait représentée par lea
       producteur » livrant noia* de eo.000 kg , il est eetlaé
       q^'il s' agit de produoteur» possédant jusqu' à 16 vaohes .
       Au niveau communautaire environ 21 % des vaohes laitières
       a » trouvent dan» oett » catégorie de ferme ». Vu le fait
       q^e le readeaent par vaoh» oh»z le» petit» producteur »
       eet inférieur à la moyenne , il eat fait l' hypothèse que
       19 % de » livraison» sont oonoernée », soit :
       95.6 kiOt(quota EUR-12 . 1956 / 69)*0 , 6 kiot ^ 1 ) xl9%-15 kio t
                                                        ( arrondi )
       Une partie de oatte catégorie de producteurs bénèfioie
       déj4 , soit d' une exonération ( zones de aontagne ). soit
       d' un taux de prélèveaent réduit à 1.5 % ( zones
       défavorisées ) .
       Pour les zones de aontagne il est estimé que 4,5 kio t de
       lait sont livrée » par le » petits producteurs et en oe qui
       oonoerne le » zone » défavorisée », il eat estimé que 6 kio
       t de lait sont livrée » par les producteur » livrant aoins
       de 60.000 kg .
a)     Rèdnotlon du prél èveme nt de 1.5 % 4 1.0 % pour les petits
       producteurs des zonas défavorisées
       Les petit» producteur » de» zona» défavorisées bénéficient
       actuellement d' un taux de prélèveaent réduit i 1,0 l . La
       fixation de oe taux à 1,0 % signifie une diminution de
       0,6 point par rapport 4 la situation aotuelle
       6,0 klot X 276,4 Eou / t X 0.5 % X 1.09S(D7 ) - 9.1 kZCU ( B )
b)     Réduction du prélèveaent da.2.Q % 4 . 1».B         naur. l e» nctl ts
       produoteur » de » autres zone»
       B tant donné que les petits producteur » des »ones de
       aontagne sont exonérés , la quantité de lait concernée est
       égale 4 : 7.5 kio t ( 16 kio t - 8 kio t - 4.6 kio t ).
       7,6 kio t X 276,4 * OU / t X 0,8 % X 1,098 ( DI ) - 11.4 kio
       ECU ( B )
       Au total , la réduotion du taux de prélèvement pour les
       petit » produoteur » comporterait une moindre
       perception égal » 4 :                         v                  „ x
       - lone» défavorisée » ( de 1,5 % 4 1,0 k )            9,1 kioBCü(B )
        - Autres zone»          ( de 2,0 % 4 1.5 k )        11.4 kioBCU(B )
                                                            20,6 kioBCU(E )
( 1 ) En tenant ocnpte de l' augmentation de la réserva ccr-unautal :        2y
 ---pagebreak---                                   4
££I.a2ufilû2lA
Dans le tableau oi-après l^s incidences financières de
l' ensemble de ?* mesurés proposées sent indiquées pour les
exeroj.;îes 1986 et 1969 et pour une période de 12 mois .
Pour déterminer l' impaot sur ohaque exeroioe , il est rappelé
que 1' exercice 1969 couvrira las dépenses effectuées dans les
State membres entre le 16 . 10 . 1966 et le 19 . 10.1989 .
Pour l' aaceroice 1968 les inoidenoes financières ns concernent
que l5> réduction du prélèvement linéaire à introduire
rétroaotivement à partir du 1.7 . 1968 . L' augmentation de la
réserve oommunau taire ne peut qu' avoir une influence sur la
production de lait qu' à partir du moment où les prcduotsim
eot pris oounaiHSanoe de la mesure . De ce fait , l ' inoi&snee
fir/^ncièra n' intervient qu' à partir de l' exercice IPBK .
Tl rct fait l' hypothèse que la réduction du prix
d' intervention du beurre entrera en vigueur le 1er oootl.-u
196 ». Par conséquent , compte tenu des délais de paiement ,
cette réduction n' aura pas d' effet sur toute la durée de
l' er.eroioe 1989 .
Sur oes bases , les inoidences financières sont établies oo-v-mo
suit :
 ---pagebreak---                                      0
                                                          MiOBCïï
                                           1966   1969     13 sois
    1 . Augmentation de la réser ¬
        ve oommunautaire de
        600.000 t , è partir de la
        6ème période de 12 mois          p .m .   ♦ 90      + 90
    3 . Réduction du prix d' inter ¬
        vention du beurre de 3 %
        à partir du 1.11.1966                     - 06      - 74
    3 . Réduotion du prélèvement
        linéaire è partir du
        1.7.66 , en faveur des
        petite produoteurs livrant
        moins de 00.000 kg de lait
        a ) Réduotion de 1,6 è 1,0%
            ( zones défavorisées )       +   1    +  9      +   9
        b ) Réduotion de 2 è 1,6 %
            ( autres zones )             +   2    + 11      + 11
        TOTAL                            +   3    + 46      + 30
y . B. : L' année 19Ô9 présenta une dépense plus élevée que les 13
         sois , oar la réduotion de prix d' intervention du beurre
         entraînant une économie ( point 2 ) ne oonoernera que 10,6
          mois ( du 1.13.1966 au 16.10.1969 ) oompte tenu du fait
          qu' il est fait l' hypothèse •
         -    que la mesure entrera en vigueur le 1er ootobre 1966 ;
          • que l' imputation budgétaire de oette réduotion
              n' interviendra que 3 mois après l' entrée en vigueur
              de la mesure ( oompte tenu des délais de paissent ).
                                                                    30