7.7.78 Official Journal of the European Communities No L 185/1 (Acts whose publication is obligatory) COUNCIL REGULATION (EEC) No 1562/78 of 29 June 1978 amending Regulation No 136/66/EEC on the establishment of a common organi- zation of the market in oils and fats THE COUNCIL OF 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 Parlia- ment (1), Whereas the purpose of the organization of the market in olive oil is to maintain the level of consumption of that product in the Community, having regard to the competition from other vegetable oils, and to ensure that producers receive a fair income for the quantity of olive oil actually produced ; Whereas experience has shown that the present system of production aid is not consistent with the abovementioned objectives; whereas it provides for several control measures which, by reason of their complexity and the considerable number of producers concerned, are difficult to apply and lead to consider- able delays in the payment of aid; Whereas in recent years consumption of olive oil in the Community has decreased substantially as a result of the difference in price trends between olive oil and competing oils; whereas the present system of aid does not appear to be suitable for encouraging consumption of olive oil ; whereas it could, moreover, create other problems at the production stage ; Whereas, therefore, a new system should be intro- duced, providing for the grant of consumption aid to ensure that olive oil is sold at prices which are compet- itive with the prices of seed oils; Whereas, in order to ensure that the system of consumption aid is administered efficiently, provision (') OJ No C 108, 8. 5. 1978, p. 49. should be made to enable the administration of this system of aid to be assigned to a trade organization under the control of the Member State concerned ; whereas, in order to ensure the proper functioning of that organization, provision should be made to enable a levy to be imposed on the beneficiaries of the aid; Whereas, since the abovementioned aid will be restricted to the quantities sold on the Community market, provision must be made for granting produc- tion aid at a fixed rate to compensate for restricting consumption aid to the said quantities; whereas, to avoid structural surpluses, this production aid should be granted only in respect of areas planted with olive trees on the date on which the new system enters into force ; Whereas, to assist in achieving a balance between supply and demand, it may be appropriate to take measures to improve the quality of production and to promote sales and consumption ; whereas it should be laid down that the costs incurred as a result of such measures should be Lorne by producers and the other beneficiaries of such measures ; Whereas the production target price and the system of production aid can achieve their aims only if the price at which the producer sells his oil on the market is as close as possible to the production target price minus the abovementioned aid ; whereas stabilizing mechan- isms should therefore be provided within the Commu- nity ; Whereas the desired stability may be obtained by enabling producers or producer groups to offer olive oil to the competent agencies of the Member States ; whereas such possibility should be restricted to these categories so as to prevent imported oil and oil in respect of which consumption aid has been paid from being offered for intervention ;