CELEX: 51992PC0151
Language: en
Date: 1992-04-13
Title: Proposal for a COUNCIL REGULATION (EEC) amending Regulation (EEC) No 1637/91 fixing compensation with regard to the reduction of the reference quantities referred to in Article 5c of Regulation (EEC) No 804/68 and compensation for the definitive discontinuation of milk production

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                                     C0M(92) 151 final
                                                                     Brussels, 13 April 1992
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                                                      Proposal for a
                                                 COUNCIL REGULATION (EEC)
                          amending Regulation (EEC) No 1637/91 fixing compensation with regard
                               to the reduction of the reference quantities referred to in
                                Article 5c of Regulation (EEC) No 804/68 and compensation
                                  for the definitive discontinuation of milk production
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                                              (presented by the Commission)
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 ---pagebreak---                                EXPLANATORY MEMORANDUM
Council Regulation (EEC) No 1637/91 Introduces In particular a Community scheme
to fund the definitive discontinuation of milk production In order both to make
it easier to reduce quantities of milk marketed in line with the 2% reduction in
the total quantities decided for 1991/92 and to mobilize the quantities needed
for the allocation of the SLOM II quotas.    Council Regulation (EEC) No 1637/91
thus allocates total funding allowing 3% of national total quantities to be freed
thanks to compensation of ECU 10/100 kg per year while granting each Member State
substantial latitude in using the funds.
 It also provides that the target reduction/mobilization of reference quantities
may be achieved through compensation of less than ECU 10/100 kg or, where the
total funds are not exhausted either because the Member State has decided not to
 implement the programme or because the programme has not met with the success
anticipated, that the amounts available are allocated to producers whose
reference quantities have been reduced and remain so, in the form of compensation
of ECU 10/100 kg per year.
However, in certain Member States the target reduction/mobilization has been
attained and even exceeded with compensation of less than ECU 10/100 kg without
the Community funds being exhausted.    This proposal for a Regulation covers this
eventuality, which was not anticipated, and proposes that the Member States be
authorized in that event to continue the scheme for an additional six-month
per iod.
In addition, in view of the regional development needs in certain Member States
and with a view to safeguarding structural adjustments and developments
accomplished, this proposal grants the Member States the possibility of offering
producers who have not been able to resume milk production at 1 April 1992 to
apply within a short space of time for the compensation for the definitive
discontinuation of milk production up to the financial ceiling allocated to those
States.
 ---pagebreak---                                    Proposal for a
                         COUNCIL REGULATION (EEC) No     /92
                                         Of
       amending Regulation (EEC) No 1637/91 fixing compensation with regard
            to the reduction of the reference quantities referred to in
             Article 5c of Regulation (EEC) No 804/68 and compensation
               for the definitive discontinuation of milk production
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 816/92*2>, and in particular Article 5c(6) thereof,
Having regard to the proposal from the Commission*3^,
Whereas Council Regulation (EEC) No 1637/91*4) Introduces In particular a
Community scheme to finance the definitive discontinuation of milk production in
respect of up to 3% of the guaranteed total quantities, deliveries and direct
sales, and provides, where certain eligibility requirements are met, for
compensation to be paid after the definitive discontinuation of all milk
production not later than 31 March 1992; whereas that Regulation provides that
the target reduction set by the Member State may be met by means of compensation
of less than ECU 10 per 100 kg and per year;
Whereas the target reduction has been reached, and even exceeded, In certain
Member States by means of compensation of less than ECU 10 per 100 kg and per
year without the available Community funds being exhausted; whereas, this being
the case and so that the necessary structural adjustments can be continued, the
Member States should be authorized to continue the scheme for the definitive
discontinuation of milk production for a further six-month period;
(1) OJ No  L 148, 28.6.1968, p. 13.
(2) OJ No  L 86, 1.4.1992, p. 83.
(3) OJ No C
(4) 0J No  L 150, 15.6.1991, p. 30.
 ---pagebreak---                                       _ 2 -
                                                                              y
Whereas In addition, In view of the extension of the additional  levy arrangements
and of regional development needs in certain Member States, in order to safeguard
the structural adjustments and developments the Member States should be granted
the possibility of offering producers who have not resumed milk production at
1 April 1992 the chance of applying for compensation, within the limits laid down
In the Annex to Regulation (EEC) No 1637/91, for the definitive discontinuation
of milk production provided for In Article 2 of that Regulation; whereas
paragraph 5 of that Article should therefore be amended accordingly without,
however, the consequences of these new provisions being Imposed on producers who
elect to receive the compensation as originally provided for,
HAS ADOPTED THIS REGULATION:
                                    Article 1
The following subparagraphs are hereby added to Article 2(5) of Regulation (EEC)
NO 1637/91:
"However, without prejudice to the first subparagraph, Member States may use the
amounts available to continue the scheme referred to in paragraph 1 until
30 September 1992 at the latest.  In that case, Member States shall forward to
the Commission the Information provided for in Article 4 before 31 December 1992.
In addition, the Member States may offer producers who have not resumed milk
production at 1 April 1992 the chance of submitting applications before
1 June 1992 In accordance with this Article.  The quantities thus freed shall be
re-allocated in accordance with paragraph 4 unless the producers concerned elect
to receive the compensation as originally provided for in the first subparagraph.
In that case, the Member States shall include the additional  information to be
forwarded In accordance with Article 4 before 31 December 1992."
 ---pagebreak---                                         3 -
                                    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---                                                                                                              £
     FINANCIAL                      STATEMENT
                                                                        DATT.
1. BUDGET HEADING: Article 206                                          APPROPRIATIONS: ECU 871 ml 11 Ion
2. TITLE:
   Proposal for a Council Regulation amending Regulation (EEC) N D 1637/91 fixing compensation with regard
    to the reduction of the reference quantities referred to in Article 5c of Regulation (EEC) N D 804/68 and
   compensation for the definitive discontinuation of milk production.
3. LEGAL BASIS: Article 5c(6) of Regulation (EEC) No 804/68
4. AIMS OF PROJECT:
   To extend possibilities for qualifying under the definitive discontinuation arrangements within the
   ceiling laid down.
                                   Period of 12 months    Current Financial Year     Following Financial Year
5. FINANCIAL IMPLICATIONS                                           1992                      1993
                                       ECU ml 11 ion            ECU ml 11 Ion               ECU ml 11 Ion
5.0 EXPENDITURE
     - CHARGED TO THE EC BUDGET
     - (REFUNDS/INTERVENTION)
     - NATIONAL ADMINISTRATION
     - OTHER
5.1 REVENUE
     - OWN RESOURCES OF THE EC
       (LEVIES/CUSTOMS DUTIES)
     - NATIONAL
                                          1994                 1995                1996                 1997
5.0.1 ESTIMATED EXPENDITURE
5.1.1 ESTIMATED REVENUE
5.2 METHOD OF CALCULATION:
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?
                                                                                                          YES/ND
6.2 IS A SUPPLEMENTARY BUDGET NECESSARY?
                                                                                                          YES/ND
6.3 WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY?
                                                                                                              ND
OBSERVATIONS:
Since the measure extends the possibi I ities for qual ifying under the definitive discontinuation arrangements
within the eel Iing laid down there is no additional expenditure over the budget.
 ---pagebreak---                                                                      ISSN 0254-1475
                                                              COM(92) 151 final
                                                      DOCUMENTS
EN                                                                              03
                                 Catalogue number: CB-CO-92-170-EN-C
                                                             ISBN 92-77-43335-3
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