CELEX: 51976PC0533
Language: en
Date: 1976-10-08
Title: PROPOSAL FOR A COUNCIL REGULATION on a coresponsibility levy and measures for expanding markets in the milk and milk products sector. (Submitted by the Commission to the Council)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (76) 533
Vol. 1976/0163
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COMMISSION OF THE EUROPEAN COMMUNITIES
    :
                                                 COM(76)533 final
                                                      Ν        /
                                                ^Brussels, 8th October 1976
                                                  <     /
  Λ   ·
                        PROPOSAL FOR A COUNCIL REGULATION
                            /
             on a coresponsibility levy and measures for expanding
             markets in the milk and milk products sector *
                     ( Submitted by the Commission to the Council )
COM ( 76 ) 533 final
 ---pagebreak---                           PROPOSAL FOR A
               COUNCIL KSGUIATION ( EEC ) Bo        /?6
on a coresponsibility levy and measures for expanding markets in the
milk and milk produots sector
THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Eoonomio Community ,
and in particular Article 43 thereof ,
Having regard to the proposal from the Commission^
                                                          (2)
Having regard to the opinion of the European Parliament ,
Whereas the Community market in milk products is marked by structural
surpluses arising from an imbaianoe between supply and demand in produots
governed by Council Regulation ( EEC ). No 804/68 of 27 June 1968 on the
oommon organization of the market in milk and milk produots^^ , as last
amended by Regulation (EEC) No 559/76^^;
Whereas a more direct link should be established between production and
outlets for Edlk products in order gradually to restore equilibrium
between production and market requirements and to reduce the hea-vy burden
on the Community resulting from the present situation ; whereas it therefore
appears necessazy to introduoa a uniform ooresponsibility levy for several
years on all milk delivered to dairies and certain farm sales of milk
products :
( 1 ) OJ No C
( 2 ) OJ No C
( 3 ) OJ No L 148 , 28» 6,1968 , pa 13
(4 ) OJ No L 67 » 15® 3«1976 , p, 9
 ---pagebreak---                                            -2-
 Whersas , in order to observe the objectives of Council Directive 75/ 268/EEC
 of 28 April 3-975 on mountain and. hill farming and farming in certain less-
 favoured araas^, as amended by Directive 76/400/EEC^, the mountain and hill
regions lifted pursuant to Article 3 ( 3 ) of that Directive should be exempted
 from the levy ;
 Whereas , in view of the control facilities f application of the levy to farm
 sales should he limited to the amounts of milk used on the farm in the manu­
 facture of butter and cream and giving entitlement , under Article 2 ( l ) (b )
 of Council Regulation (ESC ) No 986/68 of 15 July 1968 laying down general
 rules for granting aid for skimmed milk a»d. ekitoed milk powder for use as
 feed^^, as last amended by Regulation (EEC) No 796/76^\ to aid for the
 skimmed milk arising froa this use ;
 Whereas , for administrative rra&sons , provision should be made for the levies ,
 wherever possible , to be deducted by the dairies from their payments to
 producers ; whereas it is also desire-tola to make provision for compensation
 if the firas or producers who should pay the le^ are entitled to certain aid ,
 provided that this compensation does rot have re persuasions on the accounting
 for the amounts concerned;
 Whereas it appears desirable to envisage at the same time specific measures
 to encourage the expansion of markets a»d the disposal of surpluses on the
 Community and world markets and giving rise to expenditure equal to the amount
 of levy collected ,
 HAS ADOPTED THIS KBGUIA'?ICH :
     OJ Ko  L 123 , 19 »  5. 1975(i  P- 1
     OJ No  L 108 , 26,   4.» 1976 , p, 21
     OJ No  X, 169 , 13 . 7.1968 *   P* 4
   1 OJ No   h 6?, 15.    3-1976 »   P* 22
 ---pagebreak---                                           -3-
                                        Article 1
1 . During the period from 1 April 1977 "to "the end of the 1979/80 milk year
    a coresponsibility levy shall be paid by all milk producers on all milk supplied
    to an undertaking treating or processing milk and , in the oases defined in
    Article 3(2 ), on all milk sold by the produoer in the form of other milk
    produots.
2. This levy shall not apply to the mountain and hill regions listed pursuant
    to Artiole 3(3) of Direotive 75/268/EEC.
                                        Article 2
1 . The amount of the levy shall be fixed in accordance with the prooedure
    laid down in Artiole 43 ( 2 ) of the Treaty before 1 November for the following
    milk year.
2. The levy shall be at least 2/6 but not more than 4% of the target price for milk
    in the milk year in question*
3. For the period from 1 April 1977 "to the end of the 1977/78 milk year, the lety
    shall be 2.5$ of the target price for milk*
4* If there is a considerable change in the market situation during a milk year
    the Council , acting «n s proposal from the Commission by a qualified majority ,
    may alter the amount of the levy , keeping within the limits laid down in para­
    graph 2* However, the difference between the levy fixed under paragraph 1 and
    the new levy may not exoeed 1$ of the target price for milk*
                                        Article 3
1 * In the oase of deliveries to a firm treating or processing milk , the levy
    shall be deducted by the firm buying the milk from the payment made to the
    producer and transferred monthly for the preoeding month to the competent
    agency set up for this purpose in eaoh Member State.
                                                                     /.
 ---pagebreak---                                -    4   -
2.      If a milk producer sells in the form of other milk products , the levy
        shall "be paid to the competent agency by the producer in respect of
        the quantities of milk used in the manufacture on the farm of butter
        and cream qualifying for aid under Article 2(l)(b ) of Regulation (EEC)
        No 986/68 .
                                 Article 4
Provisions may be made for the levy to qualify on payment for compensatory
aid under Articles 10 and 26 of Regulation (EEC ) ITo 804/68.
                                  Article 5
1.      Measures to expand outlets for milk products on the Community and
        world markets shall "be taken in accordance with the procedure
         referred to in Article 7 , so far as they do not entail for the
         Community expenditure exceeding the income from the levies payable ; ,
         under this Regulation .                •    ■    : ?'              ■ • .
2.       The measures provided for in paragraph 1 shall be the measures
         concerning ;                         "             ■     :  ■
         (a)    the expansion of markets within the Cbmwnvty by :
                -        increasing the aid granted to supplementary quantities
                         of skimmed milk. returned . by the dairies to the farmers,
                -        the sale of milk at reduced prices in schools ,
                         specific measures increasing the use of butterfats ;
          (b ) the expansion of markets outside the Community by, inter alia:
                -        the granting of contributions to programmes encouraging
                   ~'-7 -the supply of milk products to developing countries ;
                      ■7
          (c )  the search for new outlets and improved products, the
                 investigation of new markets and other measures to encourage
                the use of milk products .
                                                                       ./.
 ---pagebreak---                                        -5-
                                     Article 6
1, With regard to the financing of the common agricultural polioy , the
   ooreaponsibility levies and the measures listed in Artiole 5 shall be
   considered as part of the measures to regularize agricultural markets*
2* By way of derogation from Artiole 3 ( l ) of Regulation (EEC ) No 729/70 »
   the financing of the measures listed in Article 5 may be limited to a
   portion of the expenditure concerned.
3. Rules for the application of paragraph 1 may be adopted in aooordanoe
   with the procedure laid down in Artiole 13 of Regulation (EEC ) Ho 729/70*
                                     Article 7
Rules for the application of this Regulation shall be adopted in aocordanoe
with the procedure laid down in Artiole 30 of Regulation (EEC ) No 804/68 .
This Regulation shall be binding in its entirety and direotly applicable in
all Member States*
Done at Brussels .                                  For the Counoil
 ---pagebreak---                                   6   -
Financial implications of the corresponsibility levy and measures for
expanding markets in the milk products sector
1.      As noted in section 38 of the 1977–80 action programme for
progressively bringing the milk taarket back into balance , the Commission
considers the proceeds of the corresponsibility levy should come under the
intervention arrangements in connection with the organization of the milk
and milk products markets .
        The Commission accordingly proposes in Article 6 of the attached
that the corresponsibility levies should be considered as financially part
of the market regularization measures .
2.      From the forecasts of milk production up to 31 December 1 977 »
having regard to the measures proposed , the quantity of milk so leviable
from 1 April to 31 December 1977 worka out at 62 million tonnes .
        Calculated at the proposed 2.5$, payable month by month, and given
the present target price for milk of 167.60 u.a . per tonne , the proceeds of
the levy for the budget year 1977 work out as follows :
62 million tonnes x 2.5$ x 8/9 * 167.60 u.a. /tonne « 230 million u.a.
        For the milk year 1977/ 78 the quantity leviable may be estimated
at 79.5 million tonnes , giving a proceeds figure of 79.5 million tonnes
x 2.5 x 167.60 u.a. /tonne =» 333 million u.a.
3.      The standard financial annex with the usual particulars is attached .
 ---pagebreak---                                         7
FINANCIAL ANNEX                                Date : 30.9.76
1 . Relevant budget line : Chapter 62 , Article 629
2 . Title of measure : Proposal for a Council Regulation on a coresponsibility
                         levy and measures for expanding markets in the milk
                       • and milk products sectors
3 . Legal basis : Article *+3 of the Treaty
h . Purpose of measure : To introduce a coresponsibility levy forming part
                            of the 1977-80 action programme for progressively
                            bringing the milk market back into balance
                            ( COM ( 76)300 final )
5 . Financial implications          During          Current           Next
                                farm year      financial year    financial year
                                                      ( 76 )          ( 77 )
    5.0 Expenditure
        - chargeable to
           Cty Budget       *                           -                  2
           ( intervention )         333 mua           -               230
    5.0.1                         Year 78        Year 79            Year 80
        Expenditure
        multiannual                 103
        schedule
    5.2 Mode of calculation
        Budget year 1977 : $uantity leviable * 62 million tonnes , less
                               approx . 3 million tonnes from hill farming
        Calculation : 62m . tonnes x 2.5% x 8/9 ( payment period ) x 167 . 60 u.a ./
                        tonne = 230 mua'
        ÎJilk year 1977/78 : quantity, 79-5m . tonnes
        Calculation : 79»5m « tonnes x 2.5% x 167.60 u.a. /tonne = 333 mua
  These figures do not allow for the effect of the double rate , which
  amounts to -k2 mua for the year 1977/78 and -29 mua for the year 1977 .
2
  Measure begins 1 April 1977
^Minus levies to be fixed for following farm years , percentage for
  which has still to be decided .         According as chosen within bracket
  of 2.5-^# , proceeds per year would work out at between 333 and 533
  mua .