95/196/EC: Commission Decision of 4 May 1995 on the long-term national aid scheme for agriculture in the northern regions of Finland (Only the Finnish text is authentic)

COMMISSION DECISION of 4 May 1995 on the long-term national aid scheme for agriculture in the  northern regions of Finland (Only the Finnish text is authentic) (95/196/EC)
THE  COMMISSION OF THE EUROPEAN COMMUNITIES
,
Having regard to the Treaty establishing the European Community,
Having regard to the Act of Accession of Austria, Finland and Sweden, and in particular Article 142  thereof,
Having regard to Council Regulation (EEC) No 827/68 of 28 June 1968 on the common organization of  the market in certain products listed in Annex II to the Treaty  (1), as last amended by the Act of  Accession of Austria, Finland and Sweden, and in particular the last paragraph of Article 5  thereof,
Whereas Article 142 of the Act of Accession states that the Commission is to authorize Finland and  Sweden to grant long-term national aids with a view to ensuring that agricultural activity is  maintained in the northern regions; whereas, in accordance with paragraph 2 of that Article, the  Commission is to determine those regions;
Whereas, in order to facilitate the administration of the scheme provided for, when determining  those regions, the municipality (kunta) should be chosen as the relevant administrative unit for  such determination in line with practice followed in the application of Council Directive  75/268/EEC of 28 April 1975 on mountain and hill farming and farming in certain less-favoured areas   (2), as amended by Directive 80/666/EC  (3) and Regulation EEC No 797/85  (4), whereas, however,  the rural district (maatalouspiiri) of Mikkeli, South Karelia and area 3 as defined in the Finnish  system of aid to agriculture based on holding size, in force before accession and within the limits  laid down at 31 December 1993, may also be included among the relevant administrative units;
Whereas Article 142 (1) of the Act of Accession stipulates that the regions to be determined should  cover agricultural areas situated to the north of the 62nd parallel and some adjacent areas south  of that parallel affected by comparable climatic conditions rendering agricultural activity  particularly difficult; whereas, when determining those regions, the Commission is to take account  in particular of the low population density, the portion of agricultural land in the overall  surface area, and the portion of utilized agricultural area given over to arable crops intended for  human consumption;
Whereas, where Finland is concerned, the abovementioned factors result in the list of  administrative units in subregions C1, C2, C2 North, C3 and C4 laid down in this Decision, which  are north of the 62nd parallel or adjacent to the latter, are affected by comparable climatic  conditions rendering agricultural activity particularly difficult and have a population density  lower than or equal to 10 inhabitants per square kilometer, a utilized agricultural areas (UAA) of  less than 10  % of the total area of the municipality and a portion of the UAA devoted to arable  crops intended for human consumption less than or equal to 20  %; whereas municipalities surounded  by others within such areas should be entered on the list, even where they do not satisfy the same  requirements;
Whereas the northern region thus determined represents 1  417  000 hectares (ha) accounting for  55,5  % of the total UAA of Finland;
Whereas, in accordance with Article 142 (3) of the Act of Accession, it is for the Commission to  define the reference period in relation to which the development of agricultural production and the  level of overall support should be considered; whereas, using the national statistics available as  a basis, that reference period should cover 1991, 1992 and 1993 as regards agricultural production,  with the exception of cow's milk and beef and veal, for which 1992 provides the best basis for  fixing the milk quota and the reference herd for Finland, and horticulture, for which 1993 is the  year covered by the most reliable statistics; whereas however, 1993 (when prices had not yet been  affected by accession) should be used for assessing the level of overall support, where the  difference in the price level of support existing between Finland and the Community must be taken  into account;
Whereas production figures and support per product in the abovementioned years should be stated;
Whereas on 26 October 1994 Finland presented the aid scheme contemplated to the Commission; whereas  it subsequently forwarded additional information and the final version of the aid scheme  contemplated on 20 January 1995; whereas the scheme provides for aids applicable to agriculture  generally in the regions in question and related to the traditional production model on each  holding; whereas it also provides for specific aid payable to the Scolt Lapps, for the reindeer  industry and the natural economy of those regions;
Whereas the measures provided for may be authorized as they meet the conditions laid down in  Article 142 (3) of the Act; whereas those measures take account of the compensatory allowance, the  agrienvironmental aid laid down for the northern regions and the aid provided for under the common  organizations of the markets (COM) at a level which should be stated for the sake of transparency;  whereas they also take account of the transitional aid granted in accordance with Articles 138, 139  and 140 of the Act of Accession; whereas they are not likely to lead to any increase in overall  support or, where they are accompanied by the necessary measures, to any increase in production as  compared with the reference period referred to above; whereas, as regards the latter point, a  reduction in the aid in the following year in proportion to the overrun in production during the  reference period provides a suitable instrument;
Whereas, with regard to the latter, with the exception of cow's milk, where any increase in  production is controlled by the quota system provided for under the COM, the aid is not granted on  the basis of the quantities produced but on the basis of production factors (livestock units (LU)  or ha) within regional limits laid down by this Decision; whereas, in the case of heifers for  slaughter, which fall outside the milk production network, the aid is also granted by head;
Whereas the transport aid provided for in this aid scheme may be authorized under the third  subparagraph of Article 142 (3); whereas where authorization is granted for any transport aid under  a national regional aid scheme, it should be ensured that compensation is not provided twice under  the various aid schemes for the same activity;
Whereas those aids meet the objectives set out in the third subparagraph of Article 142 (3) of the  Act of Accession since they are intended to maintain traditional methods of primary production and  processing particularly suited to the climatic conditions of the regions concerned, to improve the  structures for the production, marketing and processing of agricultural products, to facilitate the  disposal of the said products and to ensure that the environment is protected and the countryside  preserved;
Whereas, on that basis, the aid measures in question may be authorized provided, however, they  comply with the limits laid down for certain products under the COM;
Whereas the aid scheme proposed provides for aid for horticultural products in the northern  regions; whereas aid is also granted for the storage of such products, which is considered in such  cases a measure to facilitate the disposal of the products in accordance with the third indent of  the third subparagraph of Article 142 (3) of the Act;
Whereas the Commission must be kept informed of the actual trend in market prices in Finland for  the horticultural products covered by this Decision in order to verify compliance with the  conditions laid down in Article 142 of the Act;
Whereas the aid laid down for the breeding, processing and marketing of reindeer is in acordance  with the last paragraph of Article 5 of Regulation (EEC) No 827/68,