CELEX: 51989PC0329
Language: en
Date: 1989-06-29
Title: PROPOSAL FOR A COUNCIL REGULATION ( EEC ) AMENDING REGULATION ( EEC ) NO 1117/78 ON THE COMMON ORGANIZATION OF THE MARKET IN DRIED FODDER

COMMISSION OF THE EUROPEAN COMMUNITIES
                                       C0MC89) 329 final
                                       Brussels, 29 June 1989
                            Proposal for a
                       COUNCIL REGULATION (EEC)
   amending Regulation (EEC) No 1117/78 on the common organization
                    of the market in dried fodder
                    (presented by the Commission)
 ---pagebreak---                             EXPLANATORY MEMORANDUM
Regulation (EEC) No 1117/78 on the common organization of the market          In
dried fodder provides that aid for sun-dried fodder is equal to the aid for
artificially dried fodder     less an amount fixed taking     Into account  the
difference In the cost of producing the two categories of products.
 In Spain, where the guide price is lower than the common price and Is
gradually being aligned with It, the rule has led to a very low level of
aid, and In some cases no aid at all, for sun-dried fodder, with the result
that   its  competitiveness   vis-à-vis  artificially   dried   fodder   Is not
assured.
As a result of this situation, the undertakings         In question are being
connected occasionally    in difficult circumstances, to the production of
artificially dried fodder.
In the first Instance this Is costly for the Community budget since the
proportion of fodder qualifying for the higher level of aid Is Increasing.
Secondly,   it runs counter    to the Community's    environmental   objectives
recognized in the Single European Act, In particular the encouragement of
renewable sources of energy.
This proposal contains provisions for Increasing for the remainder of the
transitional period, the aid applicable to sun-dried fodder produced in
Spain by an amount equal      to the residual difference between the guide
prices.
It   represents  a  budgetary   saving  of  ECU  0.4   million   for   1989 and
ECU 1 million for 1990.
 ---pagebreak---                                  Proposai for a
                           COUNCIL REGULATION (EEC)
             amending Regulation (EEC) No 1117/78 on the common
                 organization of the market In dried fodder
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic Community,
Having  regard  to  the Act   of Accession    of  Spain   and   Portugal,  and   in
particular Article 89(1) thereof,
Having regard to the proposal from the Commission,
Whereas Article 120(2) of the Act of Accession sets out the procedure for
adjusting the aid for dried fodder In Spain;
Whereas Council  Regulation    (EEC) No 1960/87<1>    amends Council    Regulation
(EEC) No 1117/78(2), as    last amended by Regulation      (EEC) No 3996/87<3>,
by providing that the aid for fodder dried In other ways is equal to the
aid for fodder dried artificially      and by heating,     less an amount     fixed
taking  into consideration    the difference    In the cost     of  producing   the
products  concerned;   whereas   the  Commission   fixed    that   amount  at   ECU
43/tonne in Regulation (EEC) No 2334/87*4> amending Commission Regulation
(EEC) No 1528/78 of     30 June   1978   laying  down   detailed   rules  for   the
application of the system of aid for dried fodder(5), as last amended by
Regulation (EEC) No 1963/88<6>;
(1) OJ No L 184, 3.7.1987, p. 6.
(2) OJ No L 142, 30.5.1978, p. 1.
(3) OJ No L 377, 31.12.1987, p. 35.
(4) OJ NO 210, 1.8.1987, p. 63.
(5) OJ NO L 179, 1.8.1978, p. 10.
(6) OJ NO L 173, 5.7.1988, p. 9.
 ---pagebreak---                                        - 2 -
 Whereas the application of Article 120 of the Act of Accession has resulted
  In the level of the guide price for dried fodder being lower In Spain than
  In the other Member States; whereas the deduction from this lower price of
  the amount fixed for the Community results In a level of aid for sun-dried
  fodder lower than that needed to ensure the competitiveness of that product
  vis-à-vis artificially dried fodder;
 Whereas as a result of this situation Spanish operators have begun to
  transform  their   facilities,   Increasing  considerably   the production   of
  artificially dried fodder and reducing that of fodder dried      in other ways;
 whereas this trend Is harmful to the Community budget in that It increases
  the proportion of products qualifying for the higher level of aid; whereas
  the trend   Is also contrary to Community policy on the use of renewable
 sources of energy; whereas a scheme should therefore be Introduced which
 provides that during the transitional period the amount provided for In the
 second   subparagraph  of Article 5(2) of Regulation       (EEC) No 1117/78   Is
  reduced, In the case of dried fodder produced In Spain, by the difference
 between the guide price applicable to Spain and that applicable to the
 other   Member   States;  whereas   the  said  Regulation   should   be  amended
 accordingly;
 Whereas, In order to avoid any risk of disturbance on the market in dried
 fodder, the measure should apply with effect from the beginning of the
 marketing year,
 HAS AD0PTE0 THIS REGULATION:
                                    Article 1
The following subparagraph     is added to Article 5(2) of Regulation (EEC)
No 1117/78:
"In the case of dried fodder produced in Spain, the amount referred to In
the second subparagraph shall be reduced, until 31 December         1992, by an
amount equal to the difference between the guide price applicable to that
Member State and that applicable to the other Member States".
 ---pagebreak---                                    - 3 -
                                 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 applicable from   1 May 1989.
This Regulation shall be binding In its entirety and directly applicable In
a 11 Member States.
Done at Brussels,                              For the Council
 ---pagebreak---                                             ANNEX
AssumptIons:
(a) Quantity of sun-dried fodder:
    - 100 000 t without the measure
    - 150 000 t with the measure, the additional 50 000 t being deducted
       from the quantities dried artificially.
(b) Aid levels:
    - Artificially dried: ECU 82/t in 1989/90 and ECU 86/t In 1990/91
    - Sun-dried:
       (1)   Without the measure: ECU 39/t In 1989/90 and ECU 43/t In 1990/91
       (2)   With the measure: ECU 52/t for the two marketing years.
Calculations
(a) Expenditure In respect of the products in question:
    (1) Without the measure:
     1989/90: (100 000 t x ECU 39/t) + (50 000 t x ECU 82/t) x 1.193 - ECU 10 m i l l i o n
     1990/91: (100 000 t x ECU 43/t) + (50 000 t x ECU 86/t) x 1.193 - ECU 10 million
    (2) With the measure:
     1989/90: 150 000 t x ECU 52/t x 1.193 - ECU 9 ml 11 ion
     1990/91: 150 000 t x ECU 52/t x 1.193 - ECU 9 mi M Ion
(b) implications of measure
    For each of the two marketing years in question there will be a saving
    of ECU 1 mill Ion.
    For the 1989 budget year the saving will be only ECU 1 million x 0.35 -
    0.4 ml 11 ion.
    For 1990 the saving will be ECU 1 million.
 ---pagebreak---                                                                       VI/772/89        (POLE/EN/1022)
       FINANCIAL                      STATEMENT
                                                                      DATE: 27 April 1989
 1. BUDGET HEADINS: 131 Production aid for dried fodder               APPROPRIATIONS: ECU 706 mi 11 ion
2. TITLE: Council Regulation amending Regulation (EEC) No 1117/78 on the ccnncn organization of the
            market in dried fodder
3. LEGAL BASIS: Article 89(1) of the Act of Accession of Spain and Portugal
4. AIMS OF PROJECT: To make sun-dried fodder competitive with artificially dried fodder in Spain
                                     Period o f 12 months Current Financial Year   Following Financial Year
5. FINANCIAL IMPLICATIONS                   19                    1969                     1990
5.0 EXPENDITURE
      - CHARGED TO THE EC BUDGET       ECU 1 ml 11 ion        ECU 0.4 ml 11 Ion             ECU 1 mi 11 Ion
      - (REFUNDS/INTERVENTION)
      - NATIONAL ADMINISTRATION
      - OTHER
5.1 REVENUE
      - OWN RESOURCES OF THE EC
        (LEVIES/CUSTOMS DUTIES)
      -NATIONAL
5.0.1 ESTIMATED EXPENDITURE
5.1.1 ESTIMATED REVENUE
5.2 METHOD OF CALCULATION:
      See Annex
6.0 CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET?
                                                                                                        YES/ND
6.1 CAN THE PROJECT BE FINANCED EY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET?
                                                                                                        YES/NO
6.2 IS A SUPPLEMENTARY BUDGET NECESSARY?
                                                                                                        YES/NO
6 . 3 WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY?
                                                                                                        YES/NO
OBSERVATIONS:
 ---pagebreak--- Commission of the European Communities
COM(89) 329 final
Proposal for a
COUNCIL REGULATION (EEC)
amending Regulation (EEC) No 1117/78 on the common organization of
the market in dried fodder
(submitted to the Council by the Commission)
29.6.1989
Office for Official Publications of the European Communities
L - 2985 Luxembourg
Series: DOCUMENTS
1989 - 7 pp. - Format: 21.0 * 29.7 cm
EN
ISSN 0254-1475
ISBN 92-77-51808-1
Catalogue number: CB-CO-89-289-EN-C
 ---pagebreak---                                           ISSN 0254-1475
COM(89) 329 final
DOCUMENTS
Proposal for a
COUNCIL REGULATION (EEC)
amending Regulation (EEC) No 1117/78 on the
common organization of the market in dried
fodder
(submitted to the Council by the Commission)
03                                      29.6.1989
Catalogue number: CB-CO-89-289-EN-C
ISBN 92-77-51808-1
€
COMMISSION OF THE EUROPEAN COMMUNITIES