Council Regulation (EEC) No 1336/86 of 6 May 1986 fixing compensation for the definitive discontinuation of milk production

COUNCIL REGULATION (EEC) No 1336/86 of 6 May  1986 fixing compensation for the definitive discontinuation of milk production
THE  COUNCIL OF THE EUROPEAN COMMUNITIES
, Having regard to the Treaty establishing the European Economic  Community, Having regard to Council Regulation (EEC) No 804/68 of 27 June 1968 on the common  organization of the market in milk and milk products  (1), as last amended by Regulation (EEC) No  1335/86  (2), and in particular Article 5c (6) thereof, Having regard to the proposal from the  Commission, Whereas the European Parliament stated its opinion on this proposal in a resolution on  21 February 1986; Whereas developments on the milk market have made necessary a 3  % reduction in  the global quantities referred to in Article 5c of Regulation (EEC) No 804/68 and the Annex to  Council Regulation (EEC) No 857/84 of 31 March 1984 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  (3), as last amended by the Act of Accession of Spain and Portugal; whereas the said  reduction is being implemented in two stages i.e. 2  % with effect from 1 April 1987 and 1  % with  effect from 1 April 1988; Whereas, in order to facilitate the reduction of deliveries and direct  sales involved in reducing guaranteed global quantities, a Community system should be established  to finance the discontinuation of milk production by granting any producer, at the latter's request  and provided that he fulfils certain eligibility requirements, compensation in return for his  undertaking to discontinue definitively all milk production; Whereas, in the light of experience,  the compensation may be fixed at 4 ECU per 100 kilograms of milk or milk equivalent, payable for  seven years; whereas, however, it may be necessary to increase the level of compensation in order  to achieve the reduction target; whereas, therefore, Member States should be authorized to put up  additional financing, the amount of which may be adjusted to take account of specific regional  features; whereas the quantities thus repurchased by Community and, possibly, national financing  may neither be earmarked for the national reserve nor re-allocated to producers or purchasers;    Whereas the compensation is, in principle, granted for the whole of the reference quantity;  whereas, however, this right should in certain cases be limited since producers having benefited  prior to the entry into force of this Regulation from Article 4 (1) (a) of Regulation (EEC) No  857/84 are excluded from it; Whereas, should part of the sums provided for Community financing and  fixed in the Annex to this Regulation not be used by the Member States, the latter should, in the  interests of restructuring, be authorized to earmark the amounts still available for the financing  of national programmes for repurchasing the reference quantities referred to in Article 4 (1) (a)  of Regulation (EEC) No 857/84, for the benefit of producers permitted to participate in them after  the entry into force of this Regulation; Whereas, account should be taken of cases where the  holding is the subject of leases; Whereas the aim of the Community compensation is to restore  market balance for the products concerned and may, therefore, be considered as an intervention  within the meaning of Article 3 of Council Regulation (EEC) No 729/70 of 21 April 1970 on the  financing of the common agricultural policy  (4), as last modified by Regulation (EEC) No 870/85   (5),