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Select Committee on European Legislation First
Report
AGRICULTURAL PRICE PROPOSALS |
20.1 We considered the Commission's annual price proposals on 27 March[38]. They were debated in European Standing Committee A on 15 May and on the Floor of the House on 15 and 16 May[39]. Certain changes were made in the course of negotiation, and the Ministry of Agriculture, Fisheries and Food has provided details of the changes together with three Supplementary Explanatory Memoranda dated 10 October from the Parliamentary Secretary (Commons) (Mrs Browning), relating to flax, wine and vineyard abandonment premiums. Price proposals agreed for 1996/97
20.2 The changes from the original proposals are set out in the Annex below. We considered some of the proposals, which were put forward as separate draft Regulations, on 16 October. These related to durum wheat, associations of wine growers' co-operatives for wine distillation and measures to balance the beef market.
20.3 Most of the changes are adjustments to the Commission proposal in the light of negotiation, as in previous years. There are two points of particular interest to the United Kingdom. The first is on to the maximum guaranteed area and differentiated aid for flax which has been deferred for detailed examination by a Council working party. The original proposals discriminated against UK production. A decision on the proposals needs to be taken by 31 December. The second relates to the arrangements for fruit and vegetables, where the role of specialist producer organisations has been recognised and the reliance on withdrawal (with subsequent destruction) of fruit and vegetables has been scaled down under the proposed new régime. The Annex below updates Annex D of our 27 March Report on the original price-fixing proposals.
Conclusion
20.4 We consider that the updated proposals, which were adopted on 22-23 July, after our last Scrutiny meeting before the Adjournment, raise matters of political importance but in view of the debates which have already taken place in European Standing Committee and on the Floor we do not recommend further consideration.
Updating Annex D of paragraph 2 of HC 51-xiv (1995-96) (27 March 1996)
Set-aside
Default rate set at 17.5% compared to price proposal of 18%.
Commission to submit report to Council on achievement of voluntary set aside.
Delay, by two years, of required reduction in supplementary base areas in new Länder of Germany
Cereals
No major changes. Proposals relating to durum wheat dealt with separately[40].
Grain legumes
Transitional measures agreed to facilitate changes originally proposed, scheme to be brought under Integrated Administration and Control Scheme (IACS). Commission to report after 3 years.
Rice
Reductions in monthly increments from 2.28 ECU/tonne to 2.06 ECU/tonne not agreed. Increments of 2.28 ECU/tonne remains for 1996/97 marketing year.
Sugar
Storage refund (paid to processors/traders to cover costs of private storage of sugar) agreed at 4.2 ECU/tonne/month for 1996/97 marketing year (proposal was for cut to 4.1 ECU/tonne from previous figure of 4.5 ECU/tonne).
UK allowed unilateral extension of deadline for confirmation of non-quota 'C.' sugar from 1 February to 15 February to meet difficulties of late harvesting and processing in UK.
Flax
Introduction of Maximum Guaranteed Area (MGA) and differentiated aid for flax from 1997/98 marketing year deferred for detailed examination. Decision to be taken by 31 December.
Rate of aid to be reduced by 7.5% for 1996/97 marketing year to 865.48 ECU/ha (£721.66/ha) and amount deducted to fund promotional campaign would be similarly reduced to 49.62 ECU/ha (£41.37/ha).
Wine
Planting ban extended for further two years with flexibility for quality wine or designated table wine when supplies do not meet demand. New plantings limited to 10,000 hectares allocated between Member States. Table grapes excluded from the ban.
Changes agreed in new wine making practices. Commission can determine new sub-regions for quality wine.
Separate proposal on "association of wine growers co-operatives" to be treated as "producers"[41].
Ban on vinification of non-wine grape varieties from 1 August 1997.
Grubbing up premiums extended for 2 years subject to limit of 25,000 hectares allocated between Member States.
Fruit and vegetables
Agreement to role of specialist producer organisations (original proposal required growers to use one producer organisation only). Commission agreed to gradually reduce prices and volumes for withdrawal with level of reduction in price increased to 40% (30% for citrus) over transitional period and limit of 10% (8.5% for citrus) on quantity that can be withdrawn.
Community funded apple and pear orchard grubbing scheme of some 10,000 hectares extended and similar extension of peach and nectarine grubbing scheme.
Beef
Various changes have taken place. Original proposal for single enhanced premium for bulls under Beef Special Premium Scheme dropped but subsequently re-emerged[42] as separate proposal in context of balancing beef market.
Deseasonalisation Premium modified with percentage trigger at 35% applied separately in Northern Ireland and Irish Republic but, once triggered, applicable in both parts.
Tobacco
Supplementary production premium extended to cover Northern [mainly Austrian] tobacco.
38. (17015) 5125/96; see HC 51-xiv (1995-96), paragraph 2 (27 March 1996). Back 39. European Standing Committee A, 15 May; Official Report, 15 and 16 May, cols. 966-1046 and 1087-1174. Back 40. (17419) 9550/96; see HC 51-xxix (1995-96), paragraph 28 (16 October 1996). Back 41. (17432) 9481/96; see HC 51-xxix (1995-96), paragraph 36b (16 October 1996). Back 42. (17459) 9551/96; see HC 51-xxix (1995-96), paragraph 33 (16 October 1996). Back
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| © Parliamentary copyright 1996 | Prepared 12th November 1996 |