CELEX: 51979PC0157
Language: en
Date: 1979-03-16
Title: PROPOSAL FOR A COUNCIL REGULATION (EEC) ON INVESTMENT AID AT THE MARKETING AND PROCESSING STAGE OF MILK PRODUCTS (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (79) 157
Vol. 1979/0070
 ---pagebreak--- Disclaimer
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 ---pagebreak---  COMMISSION OF THE EUROPEAN COMMUNITIES
                                                COM(79)157 final
                                                Brussels . 16 March 1979
                      PROPOSAL FOR A COUNCIL REGULATION ( EEC )
                      ON INVESTMENT AID  AT THE MARKETING AND
                         PROCESSING STAGE OF MILK PRODUCTS
                   ( submitted to the Council by the Commission )
COM ( 79 ) 157 final
 ---pagebreak---                       EXPLANATORY MEMORANDUM
In the general explanatory memorandum relating to the proposals on the fixing
of prices for certain agricultural products and certain related measures
(Doc . COM ( 79 ) 10 Final , Volume I of 31.1.1979 )» the Commission indicated its
intention to submit to the Council proposals concerning investment aid granted
in the milk and milk products sector , "both at the production stage and at the
processing and marketing stage of the products of the sector in question . As
regards the aid granted at the production stage , it has its basis in Community
rules , which found their main expression in Directive 72/159/EEC * Therefore ,
the provisions which relate to it are included in the proposal for an amendment
to that Directive .
The proposal annexed hereto concerns investment aid which is given at the
mirketing and processing stage of milk products .
In view of the particular problems existing in this sector and so as to permit
an overall discussion at Council level on the whole range of aid, including
production aid , marketing aid and processing aid in this sector , the Commission
considers it preferable , for the moment , with regard to these latter forms of
aid , to proceed on the basis of Articles 42 and 43 of the Treaty .
 ---pagebreak---                           Prot)osal for a
               COUNCIL REGULATION ( EEC )
               on investment aid at the marketing and. processing
               stage of milk products
THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community , and
in particular Articles 42 and 43 thereof ,
Having regard to the proposal from the Commission ,
Having regard to the Opinion of the European Parliament ,
Having regard to the Opinion of the Economic and Social Committee ,
Whereas the market situation for milk and milk products reveals substantial
surpluses ;
V.'hereas the continuous expansion of milk deliveries to dairies within the
Community has been encouraged by the substantial investment eligible for
aid from public sources ; whereas the efforts undertaken by the Community to
improve the milk market situation must not be hampered by measures encouraging the
{Trowth of production ;
Whereas the investment aid relating to the marketing and processing of milk
products has contributed to this situation ; whereas its continued existence
threatens to aggravate the situation ; whereas it is therefore necessary that
aporopriate measures be taken with a view to ensuring strict limitation of this
investment ;
Whereas it appears necessary for this purpose to prohibit all encouragement of
 such investment under whatever form ; whereas , however , exceptions should be
allowed in favour of certain outlets , cert ai n small undertakings and research as wel I
as encouraging energy savings and the protection of the environment ;
Whereas the provisions in question must be brought into force after the expiry of
a certain period of time and with account taken of the rights which may have been
 acquired by virtue of national provisions ,
 HAS ADOPTED THIS REGULATION :
 ---pagebreak---                                  Article 1
1 . ^uoject to the provisions of Article 92(2 ) of the Treaty f all aid granted
by Member States or "by means of State resources to investment made , apart
from farm holdings , and concerning the processing and marketing of cows * milk
or milk products , including the collection, packaging and preparation of these
products , shall be prohibited .
2.   This prohibition does not apply to investment aid relating to
- liquid milk pasteurized or , possibly , homogenized and not otherwise treated ;
-  milk refrigeration tanks in the collection centres ;
-   the use of liquid skimmed milk for animal feed ;
-  research ;
-   the production and marketing of new products enabling the commercial outlets
    for milk to be increased ;
-  measures leading to energy savings ;
-   the protection of the environment ;
- butter production undertakings having a capacity of less than 50 tonnes per year .
3.   As new products shall be considered products ;
-  a substantial part of whose components are milk products ;
   and
- one at least of whose characteristics ( chemical , physical , microbiological
   or organoleptic ) has been altered in such a way that they differ
    significantly from existing products ;
   and
-  which offer additional possibilities of outlets .
4.   No investment aid mentioned in paragraph 2 may have the effeot of increasing
existing milk use capacity , except that of liquid skimmed milk intended for
animal feed .  The milk use capacity concerned shall be that of the undertaking
eligible for aid .
Existing milk use capacity may be transferred from one undertaking to an other .
 ---pagebreak---                               Article 2
The provisions of Articles 92 and 93 of the Treaty shall continue to apply
to the aid referred to in this Regulation .
                              Article 3
The Member States shall communicate to the Commission no later than four months
after the entry into force of this Regulation the measures taken with a view
to eliminating the aid prohibited by this Regulation .
                              Article 4
This Regulation shall enter into force on the day of its publication . It shall
take effect on the 90"th day following the day of its publication .
It shall not affect rights acquired by virtue of national provisions existing
before the entry into force of this Regulation .