PURPOSE: to establish a levy in the milk and milk products sector.

LEGISLATIVE ACT: Council Regulation 1406/2006/EC amending Regulation 1788/2003/EC establishing a levy in the milk and milk products sector.

CONTENT: the purpose of this Regulation is to improve budgetary forecasting, and to make budgetary management for levies in the milk and milk product sector, more flexible by amending Regulation 1788/2003/EC, so that the levy is available at the start of the budget year.

Provision has therefore been made for the levy due to be paid between 16 October to 30 November of each year, as opposed to 1 October as was previously the case. In order to make the levy payable by Member States for the years 2005/2006, available at the start of the next budget year, the Regulation provides that the provision concerned applies as from 1 September 2006.

For the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Poland, Slovenia and Slovakia the national reference quantities for direct sales were fixed on the basis of the situation before their accession. However, following the restructuring process in the dairy sectors in the new Member States and because of stricter hygiene provisions for direct sales, it appears that individual producers have not chosen to apply for individual reference quantities for direct sales. As a result the total individual reference quantifies allocated to the producers for direct sales are substantially below the national reference quantities. Important unused quantities remain in the national reserves for direct sales.

To solve this problem and to make it possible to use the direct sales quantities that may remain unused in the national reserve, this Regulation allows for the 2005/2006 period for a single transfer of the reference quantities for direct sales to the reference quantities for deliveries upon a requested from a new Member State.

ENTRY INTO FORCE: 3 October 2006.

The European Parliament adopted a resolution drafted by Joseph DAUL (EPP-ED, FR), and approved the Commission’s proposal.

The committee adopted the report by its chair, Joseph DAUL (EPP-ED, FR), approving unamended - under the consultation procedure - the proposed regulation amending Regulation (EC) No 1788/2003 establishing a levy in the milk and milk products sector.

PURPOSE: to establish a levy in the milk and milk products sector.

PROPOSED ACT: Council Regulation.

CONTENT: in proposing this Regulation, the Commission is trying to achieve two aims. Firstly, to change the date of payment of the milk levy due to the Community budget and secondly, to allow 8 new Member States to transfer totally or partially the national reference quantities for direct sales to the reference quantities for deliveries.

To recall, the provisions for financing CAP, set out in Regulation 1290/2005, state that the milk levy paid by the Member States will be regarded as assigned revenue as from 1 January 2007. Regulation 1788/2003 should be amended accordingly so that the levy due shall be paid by the Member States between 16 October and 30 November each year, as opposed to prior to 1 October as is currently the case.

The second amendment being proposed takes account of changes to the milk market in the new EU Member States. In some of the new Member States, the dairy sector has quickly adapted to the new commercial opportunities of an extended European market, which has resulted in a substantial restructuring process. Due to this situation (as well as thanks to stricter hygiene provisions) it appears that individual producers have chosen not to apply for individual reference quantities for direct sales. As a result the total individual reference quantities allocated to the milk producers for direct sales are substantially below the national reference quantities and unused quantities remain in the national reserves for direct sales. This development hinders further restructuring efforts. As such, the Commission is proposing an exceptional measures, whereby for the quota year 2005-2006 a single transfer of the national reference quantity from direct sales to deliveries upon a new Member States request will be provided.

The Commission urges a rapid adoption of the two amendments as soon as possible, given the urgency of the situation.

For further information concerning the financial implications of this measure, please refer to the financial statement.

PURPOSE: to establish a levy in the milk and milk products sector.

PROPOSED ACT: Council Regulation.

CONTENT: in proposing this Regulation, the Commission is trying to achieve two aims. Firstly, to change the date of payment of the milk levy due to the Community budget and secondly, to allow 8 new Member States to transfer totally or partially the national reference quantities for direct sales to the reference quantities for deliveries.

To recall, the provisions for financing CAP, set out in Regulation 1290/2005, state that the milk levy paid by the Member States will be regarded as assigned revenue as from 1 January 2007. Regulation 1788/2003 should be amended accordingly so that the levy due shall be paid by the Member States between 16 October and 30 November each year, as opposed to prior to 1 October as is currently the case.

The second amendment being proposed takes account of changes to the milk market in the new EU Member States. In some of the new Member States, the dairy sector has quickly adapted to the new commercial opportunities of an extended European market, which has resulted in a substantial restructuring process. Due to this situation (as well as thanks to stricter hygiene provisions) it appears that individual producers have chosen not to apply for individual reference quantities for direct sales. As a result the total individual reference quantities allocated to the milk producers for direct sales are substantially below the national reference quantities and unused quantities remain in the national reserves for direct sales. This development hinders further restructuring efforts. As such, the Commission is proposing an exceptional measures, whereby for the quota year 2005-2006 a single transfer of the national reference quantity from direct sales to deliveries upon a new Member States request will be provided.

The Commission urges a rapid adoption of the two amendments as soon as possible, given the urgency of the situation.

For further information concerning the financial implications of this measure, please refer to the financial statement.