CELEX: 51991PC0096
Language: en
Date: 1991-03-21
Title: 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

COMMISSION OF THE EUROPEAN COMVTUNITIES
                                              C0M(91) 96 final
                                              Brussels,, 21 March 1991
&i M •
                                   Proposal for a
                              COUNCIL REGULATION (EEC)
          amending Regulation (EEC) No 657/64 adopting general rules for the
                 application of the levy referred to in Article 5c of
           Regulation (EEC) No 601/66 in the mille and milk products sector
                            (presented by the Commission)
 ---pagebreak---                          EXPLANATORY MEMORANDUM
When   the milk    quota   arrangements   were being     established    in April
1984, no account was taken of the position of producers who had taken
on commitments under the non-marketing         and conversion schemes       under
Council Regulation (EEC) 1078/77.         These commitments      implied giving
up production totally for four years (conversion) or five years (non-
market ing).
The earliest date of commencement of the non-marketing and conversion
period   had been    towards the end of       1978 and    it was possible for
producers to commence under the schemes up to 1983.
On the termination of the period over which they had been committed
to   cease    production,     the   so-called    SL0M    producers    were    not
allocated a milk quota but were successful In obtaining a ruling of
the Court of Justice in 1988 to the effect that Community            legislation
should    be   changed    in order    to  have   quotas    allocated   to   them.
Accordingly,     the rules were changed      in March    1989 by adding a new
Article 3(a) in Council Regulation 857/84.
However,    the Court    of   Justice   in two   rulings    handed  down   on  11
December    1990 declared    invalid this article 3(a) insofar as (i) it
allocated    to SL0M producers a specific quantity equivalent             to 60%
only   of   their   reference   quantity   and   (ii)   it excluded    from   the
benefits of the new arrangements producers whose period of conversion
and non-marketing had expired before 31 December             1983, and who had
not resumed production at that date.
The Commission must therefore present a new proposal             to the Council
in order to align Article 3(a) of Regulation 857/84 to the rulings of
the Court.
 ---pagebreak---                                         - 2 -
The quantities necessary           to meet      the entitlements of          the  producers
covered   by   the March      1989    regulation       (so-called      SLOM   I producers
were met    from a Community          reserve of 600,000 tonnes, drawn up                 for
this purpose wi thout a corresponding reduction                     in the overall      total
guaranteed quantities of the Member States.
A  similar    approach      is precluded        on   this    occasion     given    that   the
Commission has recently made a proposal                 to the Council to reduce the
total guaranteed quantities by 2%.                It would be possible of course to
reduce the guaranteed quantities for all Community producers by means
of a linear reduction         in order to provide for an increased Community
reserve,    But while this solution would be conceivable from the point
of view of market balance, for the reasons given below                        it would not
provide the most appropriate solution in this instance.
The Commission      is proposing to meet the entitlements of the so-called
SLOM   II producers       via   the nat iona I reserves.            This means     that   the
quantities     to   be    allocated       must   be    found     in   each   Member     State
concerned    within       its    national       total    guaranteed       quantity.      This
solution takes into account the fact that quantities produced by SLOM
producers    whose     non-marketing        or   conversion       period    started     after
1981  were   part     of   the   total     guaranteed      quantities      fixed   for   most
Member States when the quota quantity was being established.                         It will
be recalled      that   this quantity was fixed generally on the basis of
production     in 1981 plus 1%. However, for                Ireland and      Italy, quotas
were   based    on   the   production       for    1983.    In   the   case   of   Italy   no
redistribution follows from this proposal since there was no take-up
of   the   SLOM     schemes.       In    the   case     of     Ireland    the    additional
redistribution necessary under SLOM                II should      not be as significant
as  in the case of SLOM           I where the requirements were met                from   the
Community reserve.
As regards the extension of              the entitlement        of the SLOM producers,
the   Commission's        proposal       complies      with      the    two    requirements
stipulated     by   the    Court.      In   addition,      going     beyond    the   Court's
rulings the proposal         removes some restrictive aspects and strikes a
fair balance between on the one hand                  the rights and obligations of
SLOM producers, and on the other the position of the other producers.
 ---pagebreak--- It is necessary nevertheless to set some           limits on eligibility and
use  of   quota.    The   present   proposal     would   imply    an   estimated
additional    600.000   tonnes   of  milk.    It   should   be   noted    that  a
proposal   involving no     restrictions such as the minimum production
requirements,    limits on    sale of   quota etc. could       require    several
million tonnes of extra milk quota.         It would    imply also     the total
failure of the 1978 scheme (cost 1200 MECU to the Community) which
had been designed to encourage farmers to leave milk production.
In conclusion, having regard to the need to avoid an overall increase
in quota    in  the   present   market   situation,    the   inclusion     in the
overall  quantity    fixed originally     of   production    in   1981   by  SLOM
producers, and the difficulty of requiring producers              in all Member
States to bear the increased burden for the benefit of some producers
only, the Commission considers it more equitable to have recourse to
the national reserves in this instance.         The burden to be imposed on
producers    in  the    individual   Member   States    concerned     should   be
attenuated by effective       measures to ensure that, quotas granted to
SLOM producers are utilised in the manner intended.
 ---pagebreak---                                   - A -
                                 Proposal for
                     Council Regulation (EEC) No     /91
                                        of
              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
*EHE COONCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic Community,
Having regard to Council Regulation (EEC) No 804/66 of 27 June 1968 on the
common organization of the market in milk and milk products, 1 as last
amended b% Regulation (EEC) No 3641/90,2 and in particular Article 5c(6)
thereof,
Having regard to the proposal from the Commission,
Whereas the Court of Justice, in its judgments given on 11 December 1990 in
Cases C-189/89 and C-217/89, declared invalid Article 3a of Council
Regulation (EEC) No 857/843, as last amended by Regulation (EEC)
No 306/91,4 in so far as it excludes from the grant of a special reference
quantity .under that provision producers whose period of non-marketing or
conversion expired before 31 December 1983 or 30 September 1983, as the
case may be, and in so far as it restricts the special reference quantity
provided for in that provision to 60% of the quantity of milk delivered by
the producers in question during the period of twelve calendar months prior
to the application for the non-marketing or conversion premium; whereas,
therefore, it is necessary to amend the relevant provisions of the above-
mentioned Article 3a in order to comply with the above-mentioned judgments;
1   OJ No L 148, 28.6.1968, p, 13.
2   OJ No L 362, 27.12.1990, p. 5.
3   OJ No L 90, 1.4.1984, p. 13.
4   OJ No L 37, 9.2.1991, p. 4.
 ---pagebreak--- Whereas a greater increase in the Community reserve provided for in Article
5c(4) of Regulation (EEC) No 804/68 cannot be envisaged without prejudicing
the equilibrium of the milk market; whereas, therefore, in order to grant
new special reference quantities to producers having given a non-marketing
or conversion undertaking, the possibility of reducing the reference
quantities for other producers should be provided for, as suggested by the
Court of Justice; whereas provision should therefore be made to increase
national reserves and Articles 3 and 5 of Regulation (EEC) No 857/84 should
be amended to this end;
Whereas a producer who has given a non-marketing or conversion undertaking
should nevertheless be allowed, in all cases where he has been able to
obtain a special reference quantity pursuant to the general provisions of
the additional levy scheme, to benefit from the provisions of Article 3a of
Regulation (EEC) No 857/84 since the said quantity is deducted from the
quantity obtained pursuant to Article 3a;
Whereas in its judgments the Court of Justice stated that the Coinrnunity
legislator may validly introduce a time limit concerning the expiry of the
non-marketing or conversion period with the aim of preventing producers
from benefiting from Article 3a of Regulation (EEC) No 857/84 if they did
not deliver milk during all or part of the reference year in question for
reasons not connected to a non-marketing or conversion undertaking; whereas
all the Member States concerned took 1983 as the reference year; whereas,
therefore, a producer who, with every opportunity to do so, had not resumed
milk production between 1 January 1983 and 1 April 1984 had adequately
demonstrated his wish to abandon milk production definitively for personal
reasons not connected to the undertaking given or its consequences;
whereas, therefore, only those producers whose period of non-marketing or
conversion expired on or after 1 January 1983 should be allowed to benefit
from the provisions of Article 3a;
 ---pagebreak---                                 - 6-
Whereas, in the interests of sound management and with a view to avoiding
excessive administration, the time limits for submission of applications
should only be re-opened for those producers whose period of non-marketing
or conversion expired in 1983 prior to 31 December 1983 or
30 September 1983, as the case may be, or for those producers who, having
obtained a reference quantity pursuant to the general provisions of the
additional levy scheme, nevertheless intend to make use of the provisions
of this Regulation;
Whereas, in its judgments, the Court of Justice agrees that there were gool
grounds for calculating the special reference quantity on the basis of the
production volume which the producers in question had achieved prior to
entering into a non-marketing or conversion undertaking, and that the
quantity thus calculated could validly have an abatement rate applied to it
for the purpose of ensuring that the producers in question do not receive
an undue advantage over producers who continued to deliver milk during the
reference year; whereas, therefore, the Member States should apply to the
producers in question an abatement rate representative of all the
abatements applied to the producers referred to in Article 2 of Regulation
(EEC) No.857/84;
Whereas Article 3a of Regulation (EEC) No 857/84 contains certain
provisions intended to ensure that the quantities granted are actually
produced by those to whom they are granted; whereas, while the sanction
provided for in paragraph 2 of the said Article in the event of producers
not achieving a minimum production level over a period of two years has to
be relaxed, the other restrictive conditions should nevertheless be
maintained in order that the effort made by all producers to supply the
national reserve is balanced by the finding that quantities granted under
the present scheme are not intended to give an undue advantage to those to
whom they are granted;
Whereas the producers affected by the above-mentioned provisions will only
be in a position to know the precise amount of their' special reference
quantity during the eighth period of the additional levy scheme; whereas it
seems fair to make allowance for this in the collection of the levy;
whereas it should also be specified that where a special reference quantity
is returned to the Coramunity reserve pursuant to Article 3a(3) the producer
in question will not be liable for the additional levy in respect of the
quantities nevertheless produced,
HAS ADOPTED THIS REGULATION:
 ---pagebreak---                                 -   *-
                                  Article 1
Regulation (EEC) No 857/84 is hereby amended as follows:
1. In Article 2(3), "Articles 3 and 4" is replaced by "Articles 3, 3a and
   4".
2. In Article 3a:
   (a) in paragraph 1
        (1) in the first indent the words "expires after 31 December 1983"
            are replaced by "expires, without prejudice to the provisions
            of the last subparagraph, on 31 Deoember 1983"
        (2) the second indent is replaced by the following:
            "- who, being premium transferees, have not received a
                reference quantity pursuant to Article 2 of this
                Regulation, "
        (3) point (b) is replaced by the following:
            "(b)   establish in support of their request, to the
                   satisfaction of the competent authority, that they are
                   able to resume milk production on their holding ; "
        (4) point (c) is deleted;
        (5) point (d) is replaced by the following:
            "(d)   undertake, as regards the definitive special reference
                   quantity, not to apply for assistance under any
                   programme for the abandonment of reference quantities
                   until the end of the eighth period of appHcation of the
                   additional levy scheme or, in the case referred to in
                   the last subparagraph, until ...
                   provided that the additional levy scheme is extendfid. "
        (6) the following subparagraph is added:
            "Producers whose period of non-marketing or conversion, in
            performance of the undertaking given under Regulation (EEC)
            No 1078/77, expired in 1983 or, in the case referred to in the
            first indent, during the period from 1 January to
            30 September 1983 inclusive, or, as the case may be, after the
            dates set out in the first indent if they had received a
 ---pagebreak---                                - * -
           reference quantity on the terms referred to in Article 5(4)(b)
           and/or Article 9(2) of Regulation (EBC) No 1546/88 in respect
           of holdings having been the subject of a non-marketing or
           conversion premium, sha.11 receive on a provisional basis, on
           application submitted within a time limit of three months from
           .... a special reference quantity on the terms laid down In
           (a), (b) and (d) above."
  (b) paragraph 2 is replaced by the following:
       "2. The special, reference quantity shall be determined by deducting
           a percentage representative of all the abatements applied to
           the producers referred to in Article 2, and to be fixed, by the
           Member State according to objective criteria, from the quantity
           of milk delivered or the quantity of milk equivalent sold by
           the producer during the twelve calendar months preceding the
           month in which the application for the non-marketing or
           conversion premium was made, as determined by the compétent
           authority concerned pursuant to Article 5(l)(e) of Regulation
           (EBC) No 1391/78,5 as last amended by Regulation (EBC)
           No 84/83,6 and for which the producer has not lost his
           entitlewent to the premium.
5 OJ No L 167, 24.6.1978, p. 45.
6 OJ No L 13, IS.1.1983, p. 5.
 ---pagebreak---                                 4-
           Where the producer has obtained a reference quantity, in
           respect of the holding having been the subject of a non-
           marketing or conversion undertaking, pursuant to Article 3(1)
           and (2) and/or Article 4(1 )(b) and (c) and/or Article 5(4) (b)
           and/or Article 9(2) of Regulation (EEC) No 1546/88,7 the
           special reference quantity referred to in the first
           subparagraph of this paragraph shall be reduced by such
           quantity.
           Where the producer has transferred part of his holding during
           the non-marketing or conversion period:
               the transferor's special reference quantity shall be
               determined in accordance with the first subparagraph on the
               basis of the quantity for which entitlement to the premium
               has been retained;
               the transferee's special reference quantity shall be
               determined in accordance with the first subparagraph on the
               basis of the quantity for which entitlement to the premium
               has been acquired. "
       (c) paragraph 3 is replaced by the following:
           "3. If, within two years from 29 March 1989 or, in the case
               referred to in the loot ERibparagraph of paragraph 1, from
                .. « ,
               provided that the additional levy scheme is extended, the
               producer can prove, to the satisfaction of the competent
               authority, that he has actually resumed direct sales and/or
               deliveries and that the direct sales and/or deliveries
               reached a level greater than or equal to 80% of the
               provisional reference quantity during the last tweive
               months, the special reference quantity shall be
7 OJ No L 139, 4.6.1988, p. 12.
 ---pagebreak---                          40
        definitively allocated to him. If this is not the case,
        the reference quantity definitively allocated shall be
        equal to the quantity actually delivered or sold directly,
        and the balance shall be returned to the Community reserve
        and/or the national reserve, as the case may be. Tne level
        of actual direct sales and/or deliveries shall be
        determined taking into account the trend of production «: <
        the producer's holding, seasonal conditJ.ons and any
        exceptional circumstances."
(d) the second subparagraph of paragraph 4 is replaced by the
    following:
    "Where the holding is sold or leased before the end of the
    eighth period of the additional levy scheme,, or in the case
    referred to in the last subparagraph of paragraph 1, before ...
    provided that the additional levy scheme is extended, the
    special reference quantity shall be returned to the Community
    reserve- and/or the national reserve, as the case may be. Where
    only part of the holding is sold or leased, part of the special
    reference quantity shall be returned to the Community reserve
    and/or the national reserve, as the case may be. Such part
    shall be calculated on the basis of the fodder area sold or
    leased in accordance with detailed rules to be defined in
    accordance with the procedure laid down in Article 30 of
    Regulation (EBC) No 804/68."
(e) in paragraph 5 the words "sixth period of application of the
    additional levy scheme" are replaced by "eighth period of
    application of the additional levy scheme or, in the case
    referred to in the last subparagraph of paragraph 1 and
    provided that the additional levy scheme is extended, before
 ---pagebreak---                                 AA-
        (f) in paragraph 6, the words "until the end of the additional levy
            scheme" are replaced by "until the end of the eighth period of
            application of the additional levy scheme or, in the case
            referred to in the last subparagraph of paragraph 1, until ...
            provided that the additional levy scheme is extended. "
   3.   In Article 5, "Articles 3 and 4" is replaced by "Articles 3, 3a and
        4".
                                 Article 2
This Regulation shall enter into force on the day of its publication in the
Official Journal of the European Communities.
Point 2(c) of Article 1 shall apply from 28 March 1991.
This Regulation shall be binding in its entirety and directly applicable in
all Member States.
Done at Brussels.                               For the Council
                                                The President
 ---pagebreak---                                                 - A2-
        FICHE FINANCIERE
1.  LIGNE BUDGETAIRE        Chapi tre B 01-20                       CREDITS     5.534 Mio ECU
2.   INTITULE DE LA MESURE :
    Proposition de règlement modifiant le règlement (CEE) n' 857/84 portant règles géné-
     rales pour l'application du prélèvement visé à l'article 5 quater du règlement (CEE)
    n* 804/68 dans le secteur du lait et des produits laitiers.
3.  BASE JURIDIQUE : Article 5 quater du règlement (CEE) n' 804/68
4.  OBJECTIFS DE LA MESURE :
    Suite à des arrêts de la Cour de Justice, prévoir les dispositions nécessaires pour
     l'attribution de quantités de référence à certains producteurs 'SLOM*.
                                                   PERIODE DE      EXERCICE EN        EXERCICE
5.   INCIDENCES FINANCIERES                         12 MOIS        COURS   (91)     SUIVANT (92)
5.0   DEPENSES A LA CHARGE
      - DU BUDGET DES CE
        (RESTITUTIONS/INTERVENT IONS)                p .m             p .m             p .m
      - DC0 DUBSETA NATIONAUX
      -«© AUlHfii iELIEURJ»
5.1   RECETTES
      - RESSOURCES PROPRES DES CE
        (PRELEVEMENTS/DROITS DE DOUANE)
      - SUR LE PLAN NATIONAL
                                            1993            1994           1995            1996
5.0.1   PREVISIONS DES DEPENSES
5.1.1   PREVISIONS DES RECETTES
5.2   MODE DE CALCUL
6.0   PINANCEMfNT POSSIBLE PAR CREDITS INSCRITS AU CHAPITRE CONCERNE DU BUDGET
      EN COURS D'EXECUTION
6.1   FINANCEMENT POSSIBLE PAR VIREMENT ENTRE CHAPITRES DU BUDGET EN COURS
      D'EXECUTION
                                                                                          mw-mu
                                                                                          fiVi t I fHf>J-l
6.2   NECESSITE D'UN BUDGET SUPPLEMENTAIRE
6.3   CREDITS A INSCRIRE DANS LES BUDGETS FUTURS
OBSERVATIONS :
S'agissant des modalités pour l'attribution et la détermination c"Tf> quantités d% réfé-
rence pour certains producteurs, p r é i ^ - é ^ <J:L iëserves nationales «t donc sans augmenta-
tion du niveau giclai du Quota, la •.^-•^.^ ,t i pa- d'incidence pou:" se budget.
 ---pagebreak---  ---pagebreak---                                                                                 :Si; 0254-1475
                                                                  COM(9i) 96 final
                                                      DOCUMENTS
EN                                                                                          03
                                Catalogue number : CB-CO-91-132-EN-C
                                                              ISBN 92-77-70614-7
PRICE                        1-30 pages: 3 JO ECU       per additions! 10 pages: 1.25 ECU
Office for Official Publications of the European Communities
L-2985 Luxembourg