Proposal for a Council Regulation amending Regulation (EEC) No 2759/75 on the common organisation of the market in pigmeat
29. 8. 2000 EN Official Journal of the European Communities C 248 E/121 Proposal for a Council Regulation amending Regulation (EEC) No 2759/75 on the common organi- sation of the market in pigmeat (2000/C 248 E/10) COM(2000) 193 final - 2000/0076(CNS) (Submitted by the Commission on 13 April 2000) THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Articles 36 and 37 thereof, Having regard to the proposal from the Commission, Having regard to the opinion of the European Parliament, Having regard to the opinion of Committee, the Economic and Social Whereas: some years now, (1) For a long time the European Union market in pigmeat has been subject to cyclical movements, with periods in which the supply of pigmeat has been in balance and prices have been satisfactory followed by periods when supplies have been plentiful and market prices have consequently been low. For this cycle has been more pronounced and the periods of recession have been leng- thening, endangering the cash flow situation of pigfarmers. Steps should be taken, therefore, to amend Council Regu- lation (EEC) No 2759/75 (1), as last amended by Regulation (EC) No 3290/94 (2), and to authorise the Member States to establish a for pigfarmers, who participate on a voluntary basis, to cope with fluctuations in market prices. To ensure the satis- factory operation of the funds and in particular their financing, provision should be made for a minimum period of participation and for the lodging of a security by the pigfarmers concerned. fund making it possible regulatory (2) In order that the funds may be established rapidly and effectively at national level, use should be made of existing bodies, if any. The participation of pigfarmers in their management and administration must be ensured. The funds will adopt their operation and inform the Commission and the other Member States thereof. the arrangements necessary for (3) Financing for the funds will be provided by a levy paid by participating pigfarmers in respect of each fattening pig produced. In order to cover the administrative costs of setting up the funds, Member States may grant degressive launching aid. To supplement their financing, the funds may seek loans from banks and other institutions on market terms. (4) The principal component of the fund arrangements will be the regulatory mechanism because it establishes a levy (1) OJ L 282, 1. 11. 1975, p. 1. (2) OJ L 349, 31. 12. 1994, p. 105. recession, threshold requiring an amount to be paid to the fund, in during periods when market prices are satisfactory, respect of each fattening pig, and a payment threshold triggering the grant of an amount by the fund, during periods of in respect of each to farmers fattening pig. The two thresholds will be set by the funds in the light of market factors and their financial situation. In view of in the operation of the funds, the regulatory mechanism must be authorised by the Commission in accordance with the procedure laid down in Article 24 of Regulation (EEC) No 2759/75. By and payments it should be possible for the funds to take account of the structure of the sector and improve it. its role as the principal component adjusting amounts levy the (5) In a future recession it may happen that, in the period immediately following their establishment, the funds will have to start making payments without having the oppor- tunity to collect the necessary financial resources. In that case, the Member State concerned must be authorised to grant an interest-free loan that will allow the fund to carry out its task. This loan must be reimbursed. Where the funds have sufficient financial resources to allow them to act in the event of a future recession, they may suspend the collection of the levy temporarily. (6) The establishment of the funds in the Member States concerned must be mirrored by certain arrangements for the control of pigmeat production in the European Union. Pigfarmers who participate in the funds will benefit from certain assurances regarding their income from fattening pigs. It is therefore reasonable to require them to comply with production rules for improving the balance of the market and ensuring the satisfactory operation of the funds. However, provision should be made for a derogation from this provision where market prospects permit, HAS ADOPTED THIS REGULATION: Article 1 The following Title Ia is inserted in Regulation (EEC) No 2759/75 after Article 7: TITLE Ia REGULATORY FUND Article 7a 1. The Member States are authorised to establish a regulatory fund for pigfarmers whose pigs are fattened in their territory. The purpose of the fund shall be to assist pigfarmers in coping with fluctuations in market prices. C 248 E/122 EN Official Journal of the European Communities 29. 8. 2000 Pigfarmers shall participate in the funds on a 2. voluntary basis either directly or indirectly through producer groups or any other collective body of which they are members. Pigfarmers and groups participating in the funds shall give an undertaking to comply with the rules laid down by the funds. Compliance with the rules shall be ensured by the lodging of a security. Article 7d The regulatory mechanism applied by the funds shall 1. comprise: - a ôlevy thresholdö triggering the payment to the funds of a levy in respect of each fattening pig by pigfarmers during periods when price levels are satisfactory, Pigfarmers 3. for a minimum of five years in respect of all their production units in the territory of the Member State concerned. shall participate in the funds Article 7b 1. The regulatory funds shall be organised and admin- istered by existing national bodies or bodies set up for the purpose. the management of the funds and their supervisory bodies. represented Pigfarmers shall be in The regulatory funds and the 2. arrangements membership, procedure governing levies and payments. shall adopt the in particular regulatory mechanism and the necessary conditions of the Article 7c The regulatory funds shall be financed by the 1. pigfarmers themselves, through the collection of a levy in respect of each fattening pig, paid by the pigfarmers or by the producer group through which they market their pigs. To facilitate the establishment of a regulatory fund, 2. Member States may grant aid to meet the administrative costs incurred during the launch of the fund. To that end, eligible expenditure shall include the rental of premises, including computer the purchase of office equipment, including hardware and software, administrative costs, fixed costs and miscellaneous charges. personnel costs, The aid amount may not exceed 100 % of the costs incurred during the first year, reduced by 20 percentage points for each subsequent year, so that in the fifth and last year it amounts to 20 % of the real costs. 3. In order to obtain the resources needed to operate their regulatory fund, the funds may borrow from banks and public or private institutions. In that case, the interest rate on loans shall be the market rate and may not include interest subsidies constituting State aid. - a ôpayment thresholdö opening entitlement to the payment, by the funds, of an amount in respect of each fattening pig to pigfarmers during periods of recession. 2. The funds shall forward to the Commission, through the competent authorities, the regulatory mechanism and in particular the thresholds referred to in paragraph 1, the level of which shall be set taking into account the market price for standard quality slaughtered pigs in the Member State concerned, the production costs in that country, the financial situation of the fund and the situation of the Community market in pigmeat. The Commission shall authorise the mechanism in accordance with the procedure laid down in Article 24. The regulatory funds may adjust 3. the amounts granted in respect of each fattening pig and the number of eligible pigs per farmer in the light in particular of the size and structure of the pig farms in the Member State concerned. The levy may also be adjusted. Article 7e necessary, 1. In order to prevent funds from failing to operate for lack of financial resources during a three-year period from the time they are established, Member States may, where strictly an interest-free loan. Such loans shall be reimbursed by the fund in full within a period of five years. Member States shall inform the Commission of the amount of the loan and its method of calculation. The Commission shall inform the other Member States thereof. regulatory grant fund the 2. Where the regulatory funds have adequate financial resources, the levy they may suspend collection of if any, available to the temporarily. funds must be used for their statutory objectives. income, Interest Article 7f a regulatory fund, Upon becoming a member of pigfarmers must declare the number of their fattening places within the territory of the Member State concerned. to increase that They must give an undertaking not number during the whole of their period of membership. However, where market prospects permit, a Member State may, at its request, be authorised by the Commission, in accordance with the procedure laid down in Article 24, to derogate from this requirement. 29. 8. 2000 EN Official Journal of the European Communities C 248 E/123 Article 7g Article 2 1. Member States shall adopt the measures necessary to apply this Title and shall determine in particular the procedures for establishing and managing the regulatory funds. This Regulation shall enter into force on the third day following its publication in the Official Journal of the European Communities. 2. They shall notify the Commission of the provisions adopted under this Title and of any amendments thereto. The Commission shall notify the other Member States thereof. It shall apply from 1 July 2000. Article 7h Detailed rules for the application of this Title shall be adopted in accordance with the procedure laid down in Article 24. í This Regulation shall be binding in its entirety and directly applicable in all Member States