CELEX: 51976PC0613
Language: en
Date: 1976-11-17
Title: Proposal for a COUNCIL REGULATION amending Regulation (EEC) No 2306/70 on the financing of intervention expenditure in respect of the internal market in milk and milk products (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (76) 613
Vol. 1976/0188
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                  COM(76)613 final.
                                                   Luxembourg . 17 November 197°*
                        •   Proposal for a
                          COUNCIL REGULATION
 amending Regulation ( EEC ) No 2306/ 70 on the financing of intervention
 expenditure in respect of the internal market in milk and milk products
            ( submitted to the Council by the Commission )
 C0M(76 ) 613 final .
 ---pagebreak---                     EXPLANATORY MMORAITOUM
1.   The expenditure financed Toy the Guarantee Section of the EAGGF in
respect of the operations comprising the buying^-in, storage and re-sale
of agricultural products by intervention agencies , known as second-category
intervention measures , is listed in a financial account per agricultural
product at 31 December of each year . This record includes the valuation
of end-of-year stocks .
2 . In general , this valuation is effected on the basis of the intervention
price , except where the goods have depreciated as a result of storage .
Thus , for the intervention stocks of beef and veal remaining at the end.
of the year , Council Regulation (EEC) No 2305/70 provides for a depreciation-
coefficient to be laid down by the Commission after receiving the opinion of
the Management Committee , this coefficient being' at present about 25$. For
milk oroducts , there is a depreciation coefficient of 6% for butter fixed by
 Council Regulation (EEC ) No 2306/?0 . This Regulation does not lay down any
 depreciation coefficient for skimmed milk powder .
 3 . In view of the present high level of public stocks of milk powder ,
 involving relatively long storage periods , it is necessary to hold special
 sales at reduced prices for powder which had been in storage for some time ,
 which will result in substantial financial losses . It is advisable to take
 this situation into account when valuing end -of-year stocks . It is therefore
 proposed that milk powder bought in by the intervention agencies before
 1 January 1976 and still in storage after 31 December 1976 should be depreciated
 by 30% in relation to its intervention price in the financial accounts to be
 established from the latter date . This depreciation , which covers about
 600 000 t of powder , will end when the stocks of powder in question are
 exhausted .
 ---pagebreak---                 Proposal for a Council Regulation
                amending Regulation (EEC ) N o 2306/ 70
                on the financing of intervention
                expenditure in respect of the internal
                market in milk and milk products
THE COMMISSION OP THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
Having regard to Council Regulation (EEC ) N O 729/70 of 21 April 1970 on the
financing of the common agricultural policy^"^, as last amended "by Regulation
(EEC) No 2788/72^^ , and in particular Article 3(2) thereof,
Having regard to the proposal from the Commission ,
Whereas Council Regulation (EEC ) No 2306/70 of 10 November 1970 on the financing
of intervention expenditure in respect of the internal market in milk and milk
          (Z)                                           ..  ,-.,( 4 )
products      , as last amended by Regulation ( EEC ) No   / 76 , provides that the
intervention expenditure arising from the operations of buying-in ,
 storing and reselling the products concerned is to be determined by means
of the annual accounts ; whereas these accounts indicate the value of the
stocks to be carried over to the following year ;
Whereas the said Regulation lays down that , for skimmed milk powder , the
value of the stocks to be carried over should be based on the intervention
price ; whereas , in view of the present stock position , the value of the stocks
 to be carried over must allow for some depreciation in the value of powder
 which has been stored over a long period ,
HAS ADOPTED THIS REGULATION :
  1)  OJ No L 94 , 28.4.1970 , p. 13
  2)  OJ No L 294 , 30.12.1972 , p. 1
  3 ) OJ No L 249 , 17.11.1970 , p. 4
  4 ) OJ No L
 ---pagebreak---                            Article 1
The following subparagraph is hereby added to Article 5(1)(a ) and ( 2)(b ) of
Regulation (EEC ) NO 2306/70 S
"However , starting with the accounts . to be drawn up at 31 December 1976 , in
respect of any quantities of powder bought before 1 January 1976, the value1
thus calculated shall be multiplied by a coefficient of 0.70".
                             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 he binding in its entirety and directly applicable
in all Member States .
                                                       For the Council
Done at Brussels .
                                                        The President
 ---pagebreak---                                FINANCIAL                                                                 STATEMENT
                                                                                                                                                                                           A. 11 . 1976
                                                                                                                                                                | DATE s
      i . dumber of relevant budget entry :                                                                                  Chau . 62 item 6214
                                                                                                                                                              ,mrrur îirinn– iiTnf>gffîï*
  !" 2. Title of project: Proposal for a. Council Regulation amending Regulation (EniC )
          No 2306/70 on the financing of intervention ' expenditure on the internal market
          in milk and milk products .
      3. legal basis ;                               Regulation (EEC ) Ho 729                                                     Art . 3 ( 2 )
                                                                                                                                                                                    amp«aM»t«Q«s»raMw«MB*a»nMmvi
      4 . Aims :             Adjustment of the valuation of end-of-year intervention stocks of
                             skimmed milk powder which have "been in storage for some time , namely
                             a 30 "Jo writing down in relation to the intervention price .
                         II    I II ΙΙΙ·ΙΙ|Ι II ΚΙ ΙΚΙ ,ηΐ » Π· 'ιΤίΜ Ι.Ι»ι·Ι II »« ι~Ι>ΤΤΤΓ1ΠΠΜΤ>ΙΓΤΙΙΙΙΙΙ··ηΒ*·                        -ΤΤΥΠΙι'ΤΤ-'ΐΓ–ίΤΙίΤ'ΤΙΓΙΙΙΙΜΠΜΠΙΙ ιΤΙΙί'Ι ΓΙ 'ίΤ " Τι»·
 I 5- financial Implications                                                                                                                                                                                                I
                                                                                                                  FOR THE KAHXETIHQ YEAR   CURRENT FINANCIAL YEAR                                   FOLLOWING
 i s.o KXF?r:r)T'n!'-)n                                                                                                                                1 76 )                                     J         t_^NANCIAL YEAR |
 I         -CHARGED TO TIE EC BUDGET                                                                                                                    + 164 ^ 11 • 3* •                                        109
 |           ( RiiTUNIB/lHTERVKJiTIONS )
                                                                                                                                                                                                                    9
                                                                                                                                                                                                                 118
I          –yfTTrren in,
STm– * mmy/iiwiTiaiii iiii>iwiiuwa*WM6MMiMttWTO»UJWaawWB6liWiTi'gÉtt
               Multiannual "timetable                                                                             YEAH                    YEAR . J.m                                                YEAR .. 1980..
     5.0.1 of expenditure                                                                  –                            - 55
     ta-H*- Multi anmia^™t4me'tabl«                                                                                         2
     5.2 METHOD OF calculation                                                 Under the 1976 budget , the 30 70 writing a own 01 enu - 01 -year
     stocks will result in additional expenditure of 600 000 t x 913*7 u.a. /t x 30% =
    64 M u.a .
    This writing down will , however , entail a reduction in expenditure compared with
     the forecasts for the. sale of the powder in question .                                                                                                          On the assumption that
    400 000 t will be sold in' 1977 and 200 000 t in 1973 , under the 1977 budget the
    reduction in expenditure would be 4/6 x 164 M u.a . = 109 M u.a . and under tru
     1973 budget the reduction would be 2/6 x 164 ^ u.a . = 55 ®I u.a . In addition , under
     the 1977 and 1973 budgets , the depreciation would produce a saving of about
     9 and 2 M u.a . on interest costs .
| 6,0 Can the project be financed from appropriations entered in the                                                                                                                                              YES/EEl
|          relevant chapter of current budget?
 ) 6,3 Appropriations to be entered in future budgets?                                                                                                                                                            YES/NO
I COMMENTS t