CELEX: 51984PC0469
Language: en
Date: 1984-09-07
Title: AMENDED PROPOSAL FOR A COUNCIL REGULATION ( EEC ) CONCERNING FINANCIAL SUPPORT BY THE COMMUNITY IN FAVOUR OF INDUSTRIES PRODUCING SOLID FUELS

3.10.84                              Official Journal of the European Communities                          No C 264/3
                                                            II
                                                    (Preparatory Acts)
                                              COMMISSION
              Amendment to the proposal for a Council Regulation concerning financial support by the
                               Community in favour of industries producing solid fuels (')
                                                   COM(84) 469 final
              (Submitted by the Commission to the Council pursuant to Article 149 (2) of the EEC Treaty
                                                 on 10 September 1984)
                                                     (84/C 264/04)
THE COUNCIL OF THE EUROPEAN                                                                II
COMMUNITIES,
                                                                A considerable amount of investment is needed in
                                                                order to improve the productivity and competitiveness
Having regard to the Treaty establishing the
                                                                of pits operating under good geological and technical
European Economic Community, and in particular
                                                                conditions and to create new capacities with high
Article 235 thereof,
                                                                productivity levels.
Having regard to the proposal from the Commission,
                                                                The solid-fuel industry itself can provide only a
Having regard to the opinion of the             European        limited proportion of the funds needed to finance the
Parliament,                                                     investment in question.
Having regard to the opinion of the Economic and
                                                                Support from the Community is therefore needed in
Social Committee,
                                                                order to ensure an adequate volume of investment in
                                                                the solid-fuel industry.
Whereas:
                             I                                                             Ill
Under Article 2 of the Treaty, the Community has as             In the case of hard-coal mining, this support must
its task to promote throughout the Community a                  concentrate on existing or new capacities with a high
harmonious development of economic activities, a                productivity potential which hold out the prospect of
continuous and balanced expansion and an increase               an improvement in competitiveness. T o qualify for
in stability.                                                   support, undertakings in the hard-coal mining
                                                                industry must provide the Commission with adequate
The development of an energy strategy for the                   information about their modernization and restruc-
Community would make an effective contribution to               turing measures, covering both planned investment
the attainment of these objectives. In this context, it is      and any planned reduction in production capacity.
imperative for the Community to diversify its sources
of energy supplies in order to reduce oil consumption.
                                                                 Investment projects are eligible for support only if
                                                                 they relate to existing hard-coal mines, the under-
Wider use of solid fuel is of great importance in
                                                                 ground productivity of which before the investment in
reducing oil consumption, and the competitive
                                                                 the period 1980 to 1984 amounted to at least 420
production of solid fuel within the Community could
                                                                 kilograms per man-hour on average in three
play an important role in the diversification of the
                                                                 consecutive years, or to new capacities the expected
sources of energy supplies.
                                                                 productivity of which is at least 800 kilograms per
                                                                 man-hour.
The development of a modern solid-fuel industry
would have a favourable effect on the employment
situation in the Community.                                      In addition, in the case of existing pits the projects
                                                                 are eligible only if after completion they raise the
                                                                 underground productivity of the pit in question by at
 (») OJ No C 232, 30. 8. 1983, p. 6.                             least 5 %.
 ---pagebreak--- N o C 264/4                          Official Journal of the European Communities                              3.10.84
The aid relates only to investment in installations,                                        V
machines and buildings directly associated with the
production or preparation of hard coal.                         A limited, but substantial, contribution is needed in
                                                                order to promote investment in the industries which
                                                                produce solid fuel. It should be granted within the
                                                                limits of the appropriations entered in the budget of
The Commission will decide whether or not to grant
                                                                the European Communities for this purpose, in the
aid after consulting an advisory committee composed             form of direct aid (which is repayable in certain
of representatives of the Member States.                        circumstances of up to 20 % of the eligible
                                                                investment (in hard-coal and brown-coal mining and
                                                                in the peat industry). It is estimated that the funds
The aid granted by the Commission may be claimed                which will need to be made available amount to
back from the recipient if the selection criteria are not       1 000 million ECU for the period 1985 to 1989.
satisfied, if the investment project is not completed,
or if the applicant has supplied incorrect particulars.
                                                                The Commission may pay advances of up to 50 % of
                                                                the investment aid to the undertakings receiving aid.
                            IV
In certain Member States brown coal and peat                                               VI
constitute the only available indigenous primary
energy source and are of considerable importance for            The Community bodies must be given the requisite
energy supplies and as alternatives to oil.                     administrative and inspection powers.
                                                                The Commission must ensure that the support
Some Member States have considerable potential in               granted does not affect the conditions of competition
terms of hitherto undeveloped deposits or for in-               in a manner incompatible with the principles
creasing production of brown coal and peat. A                   embodied in the EEC and ECSC Treaties.
considerable amount of investment is needed in order
to develop this production potential and the under-
takings are unable to finance the investment from               Such measures are essentially part of               the
their own funds. In view of the very long lead times,           Community's economic and energy policies.
it is very difficult for the undertakings to obtain
finance from outside sources, especially as they are
not granted State aid. It is therefore appropriate that         The Treaty has not provided the necessary powers for
the Community should grant financial support.                   this purpose,
To qualify for support from the Community, under-               HAS ADOPTED THIS REGULATION:
takings which produce brown coal and peat must
provide the Commission with adequate information
about their production and investment planning.                                         Article 1
                                                                This Regulation concerns financial incentives for:
In the case of brown coal and peat, investment
projects are eligible only if they result in an increase        1. the modernization of hard-coal production;
in the net production capacity of the undertaking on
a long-term basis. They must concern the preparation            2. the production of brown coal and peat.
of sites, or installations, machines and buildings
directly associated with the production or briquetting
of brown coal and peat.
                                                                                       SECTION I
                                                                  MODERNIZATION OF HARD-COAL PRODUCTION
The Commission will decide whether or not to grant
aid after consulting an advisory committee composed
of representatives of the Member States.
                                                                                        Article 2
                                                                Under the conditions laid down in this Regulation,
The aid granted by the Commission may be claimed                the Community may grant undertakings producing
back from the recipient if the selection criteria are not       hard coal (hereinafter referred to as 'applicants') aid
satisfied, if the investment project is not completed or        to projects as a financial incentive towards investment
if the applicant has supplied incorrect particulars.             in hard-coal production.
 ---pagebreak---  3.10.84                            Official Journal of the European Communities                            No C 264/5
                         Article 3                              (a) a detailed description of the project;
 1.    To qualify for the aid provided for in Article 2,
the applicant must make available to the Commission             (b) the time scale for carrying out the project;
the following information for each of the years in the
period 1985 to 1989 for its undertaking:                        (c) the expected total cost of the project, the annual
                                                                    investment expenditure         and the     financing
(a) technically-exploitable hard-coal reserves, sub-                arrangements including any known Community
     divided according to grades of coal and the                    aid over the period for which this Regulation
     location of deposits;                                          applies;
(b) deposits being prepared;
                                                               (d) the average underground productivity for the pit
(c) expected coal production;                                       in which the investment project is carried out
                                                                    which was achieved during three consecutive
(d) estimated sales;                                                years in the period 1980 to 1984 or which is
(e) total investment by the undertaking;                            expected, in the case of new capacities, after
                                                                    entry into operation;
(f) total production capacity scheduled for closure;
                                                               (e) the     expected      increase     in   underground
(g) expected trend in the underground          workforce
                                                                    productivity after completion of the investment
     and the total workforce.
                                                                    compared with the average achieved in the period
                                                                    indicated under (d);
2.     In addition to the items referred to under
paragraph 1, the applicant shall provide the
Commission with particulars concerning:                        (f) current and expected production costs for the pit
                                                                    in question after the project has been carried out;
— the average productivity of each of its under-
    taking's pits (underground output per man-hour             (g) the possible effects on the environment;
    in kilograms) achieved during three consecutive
    years in the period 1980 to 1984,
                                                               (h) the possibile       impact    of    the project   on
— the financial support granted to the undertaking                  employment;
    by the Community or the Member State
    concerned in 1984.                                         (i) any other information which may justify the
                                                                    Community support requested.
                         Article 4
Investment projects shall be eligible for the aid                                       Article 6
provided for in Article 2 only if they satisfy all the
                                                               1.     When selecting and assessing projects, the
following conditions:
                                                               Commission shall take into account the particulars
(a) they must concern existing pits which on average           submitted pursuant to Articles 3 and 5.
     in the period 1980 to 1984 achieved during three
     consecutive years an underground output of at             2.     The Commission shall decide whether or not to
     least 420 kilograms (kg = kg) per man-hour or             grant the support referred to in Article 2 after
     which, in the case of new capacities, will achieve        consulting an Advisory Committee composed of
     an underground output of at least 800 kilograms           representatives of the Member States and chaired by a
     (kg = kg) per man-hour;                                   Commission representative. Such Committee shall
(b) After completion of the investment in an existing          receive all information relating to the investment
     pit, the underground productivity of such pit must        project in question except information covered by
     be at least 5 °/o higher than the productivity            professional secrecy.
     referred to in paragraph (a);
                                                               3.     The Commission decision notified to the
(c) they must relate to installations, machines and
                                                               applicant shall also be communicated to the members
     buildings directly associated with the production
                                                               of the Advisory Committee provided for in para-
     or preparation (washing, screening or blending)           graph 2.
     of hard coal.
                        Article 5                                                       Article 7
The applicant shall supply the following particulars           1.     The aid referred to in Article 2 shall not exceed
for each investment project in respect of which it             20 % of the eligible investment expenditure over the
applies for the aid provided for in Article 2:                 period for which this Regulation applies.
 ---pagebreak--- No C 264/6                          Official Journal of the European Communities                                 3.10. 84
2.    The maximum aid from all Community sources               'applicants') aid to projects as a financial incentive
shall not exceed 30 % of the eligible investment               towards investment in brown coal and peat
expenditure on the project.                                    production.
                        Article 8                                                       Article 11
1.    Payments of aid shall be made by the                     1.      To qualify for the aid provided for in Article 10,
Commission on the basis of the undertaking's                   the applicant must make available to the Commission
spending for the eligible project and within the limits        the following information for each of the years in the
of the cumulative total set out in Article 7 (2).              period 1985 to 1989 for its undertaking:
                                                               (a) technically exploitable reserves of brown coal or
2.    At the beginning of each year, the undertaking's               peat, subdivided according to grades of brown
spending as referred to in paragraph 1 and the total                 coal and peat and the location of deposits;
amount to be paid by the Commission shall be fixed
by the Commission on an estimated basis.                       (b) deposits being prepared;
                                                               (c) expected production of brown coal and peat
3.    The undertaking may request the Commission
                                                                     respectively;
to pay it advances of up to 50 % of the total amount
estimated for each year.                                       (d) estimated sales;
4.    By 31 January of the year following the                  (e) total investment by the undertaking;
expenditure, the undertaking shall send the
                                                               (f) likely developments in employment.
Commission the supporting documents relating to the
performance of the project eligible for aid, a progress
                                                               2.      In addition to the items referred to under
report on the project and particulars of actual
                                                               paragraph 1, the applicant shall provide the
expenditure during the previous year.
                                                               Commission with particulars concerning financial
                                                               support granted to the undertaking by the
5.    The Commission shall proceed on the basis of             Community or the Member State concerned in 1984.
paragraph 4 to settlement of the amounts of aid still
due to the undertaking, or to be reimbursed by the
                                                                                         Article 12
undertaking should the advances have exceeded the
expenditure incurred in the year elapsed.                      Investment projects shall be eligible for the aid
                                                               provided for in Article 10 if they result in an increase
6.    The untertaking shall compile, and send to the            in the long-term net production capacity of the
Commission, a final technical and financial report on          undertaking. They must relate to:
each project completed, within three months of
completion.                                                     (a) the preparation of sites for production;
                                                                (b) installations, machines and building directly
                        Article 9                                    associated with the production of brown coal and
                                                                     peat in bulk or briquetted.
The applicant shall repay the aid granted if:
 (a) the condition specified in Article 4 (b) has not                                    Article 13
     been satisfied within two years of completion of           The applicant shall supply the following particulars
     the investment project;                                    for each investment project in respect of which it
                                                                applies for the aid provided for in Article 10:
 (b) the particulars supplied pursuant to Articles 3 and
     5 contain substantial inexactitudes, or the                (a) a detailed description of the project, including the
     investment project is abandoned by the under-                    expected net increase of the undertaking's total
     taking.                                                          production capacity;
                                                                (b) the time scale for carrying out the project;
                       SECTION II
                                                                 (c) the expected total cost of the project, the annual
                                                                      investment expenditure and financing arrange-
     PRODUCTION OF BROWN COAL AND PEAT
                                                                      ments including any known Community aid over
                                                                      the period for which this Regulation applies;
                        Article 10
                                                                 (d) expected production costs for the workings in
 Under the conditions laid down in the Regulation,                    question after the project has been carried out;
 the Community may grant undertakings producing
 brown coal and peat (hereinafter referred to as                 (e) the possible effects on the environment;
 ---pagebreak--- 3.10.84                             Official Journal of the European Communities                            N o C 264/7
(f) the possible impact of the project on employment;          due to the undertaking, or to be reimbursed by the
                                                               undertaking should the advances have exceeded the
(g) any other information which may justify the                expenditure incurred in the year elapsed.
     Community support requested.
                                                               6.     The untertaking shall compile, and send to the
                       Article 14                              Commission, a final technical and financial report on
1.    When selecting and assessing projects, the               each project completed, within three months of
Commission shall take into account the particulars             completion.
submitted pursuant to Article 11 and 13.
                                                                                       Article 17
2.    The Commission shall decide whether or not to
                                                               The applicant shall repay the aid granted if:
grant the support referred to in Article 10 after
consulting an Advisory Committee composed of
representatives of the Member States and chaired by a          (a) the conditions specified in Article 12 have not
Commission representative. This Committee shall                     been satisfied within two years of completion of
receive all information relating to the investment                  the investment project;
project in question except information covered by
professional secrecy.                                          (d) particulars supplied pursuant to Articles 11 and
                                                                    13 contain substantial inexactitudes, or the invest-
3.    The Commission decision being notified to the                 ment project is abandoned by the undertaking.
applicant shall also be communicated to the members
of the Advisory Committee provided for in para-
graph 2.                                                                             SECTION III
                       Article 15                                        GENERAL AND FINAL PROVISIONS
1.    The aid referred to in Article 10 shall not
exceed 20 % of the eligible investment expenditure                                     Article 18
over the period for which this Regulation applies.
                                                               The aid granted by the Community must not affect
                                                               the conditions of competition in a manner
2.    The maximum aid from all Community sources
                                                               incompatible with the principles embodied in the
shall not exceed 30 % of the eligible investment
                                                               ECSC and EEC Treaties.
expenditure on the project.
                       Article 16                                                      Article 19
 1.   Payment of aid shall be made by the                      The aid provided for by this Regulation shall be
Commission on the basis of the undertaking's                   granted within the limits of the appropriations
spending for the eligible project and within the limits        entered in the general budget of the European
of the cumulative total set out in Article 15 (2).             Communities for this purpose.
2.    At the beginning of each year the undertaking's
spending, as referred to in paragraph 1, and the total                                 Article 20
amount to be paid by the Commission shall be fixed             This Regulation shall be supplemented by a
 by the Commission on an estimated basis.                       Commission Regulation specifying the details
                                                               governing the implementation of the scheme and with
 3.   The undertaking may request the Commission                particular regard to Articles 2, 4, 10 and 12.
 to pay it advances of up to 50 % of the total amount
 estimated for each year.
                                                                                       Article 21
 4.   By 31 January of the year following the
                                                                The Commission, the Court of Auditors or persons
 expenditure, the undertaking shall send the
                                                                empowered by them shall have access during the
 Commission the supporting documents relating to the
                                                                course of the investment project, and for five years
 performance of the project eligible for aid, a progress
                                                                after its completion, to information relating to each
 report on the project and particulars of actual
                                                                investment project for which aid has been granted.
 expenditure during the previous year.
 5.   The Commission shall proceed on the basis of              All documents relating to the investment shall be kept
 paragraph 4 to settlement of the amount of aid still           for the same period. Checks on documents and,
 ---pagebreak--- No C 264/8                          Official Journal of the European Communities                               3. 10.84
where necessary, on-the-spot checks may be carried                                      Article 23
out throughout the whole of that period.
                                                               This Regulation shall enter into force on 1 January
                                                               1985.
                       Article 22
                                                               It shall apply until 31 December 1989.
The Commission shall report regularly to the Council
and the European Parliament on the application of              The Regulation shall be binding in its entirety and
this Regulation.                                               directly applicable in all Member States.
              Proposal for a Council Regulation laying down implementing rules for Regulation (EEC)
                              No 3331/82 on food-aid policy and food-aid management
                                                  COM(84) 481 final
                         (Submitted by the Commission to the Council on 13 September 1984)
                                                    (84/C 264/05)
THE COUNCIL OF THE EUROPEAN                                    Whereas provision should also be made for the
COMMUNITIES,                                                   possibility of making food aid available to non-
                                                               governmental organizations, whereas the latter must
Having regard to the Treaty           establishing   the       meet certain conditions guaranteeing the successful
European Economic Community,                                   execution of food-aid operations;
Having regard to Council Regulation (EEC) N o                  Whereas the basic and derived products which may
3331/82 ('), and in particular the first, fourth,              be supplied under food-aid operations should be
fifth, sixth and seventh indents of Article 4 (1) and          determined by taking account, in particular of the
(2) thereof,                                                   available stocks of the products in question;
Having regard to the proposal from the Commission,             Whereas general criteria should also be established
                                                               for the transport of food aid beyond the fob stage,
Having regard to the opinion of the            European        taking into account the financial and geographical
Parliament,                                                    situation of the countries concerned and the channels
                                                               and intermediaries via which the aid will be
                                                               dispatched; whereas account should also be taken to
Whereas, in order to implement Regulation (EEC)                this end of the need to ensure that the effectiveness of
No 3331/82, it is necessary to determine the total             the food-aid operations is increased;
quantities of each product to be supplied under the
food-aid programmes in compliance with the
Community's international commitments;                         Whereas, in order to ensure that the objectives of
                                                               food-aid operations are attained, it is furthermore
Whereas the Community has entered into certain                 necessary to stipulate that aid is granted only where
commitments under the Food Aid Convention;                     the recipients undertake to comply with the supply
                                                               terms laid down by the Commission;
Whereas the Community also entered into certain
commitments under a Convention concluded with the              Whereas the methods of mobilizing, transporting and
United Nations Relief and Works Agency for                     delivering the products should be specified; whereas it
Palestine Refugees (UNRWA) ( 2 );                              is also necessary to determine the procedure for
                                                               mobilizing the products outside the Community;
Whereas a list of the countries and organizations
eligible for food-aid operations should be drawn up            Whereas the Commission must be able to take all the
without prejudice to emergency operations;                     measures necessary for the proper execution of
                                                               food-aid programmes and operations; whereas, to
                                                               this end, Member States must provide the
O OJ No L 352, 14. 12. 1982, p. 1.                             Commission with all the assistance required and, in
O OJ No L 188, 16. 7. 1984, p. 17.                             particular, with all relevant information;