REPORT on the proposal for a Council Regulation fixing a supplementary premium payable to sheep producers in non less-favoured areas of Ireland and the United Kingdom in respect of Northern Ireland (COM(96)0152 - C4-0315/96 - 96/0102(CNS))

25 June 1996

Committee on Agriculture and Rural Development
Rapporteur: Alan Leslie Gillis

By letter of 5 June 1996, the Council consulted Parliament, pursuant to Article 43 of the EC Treaty, on the proposal for a Council Regulation fixing a supplementary premium payable to sheep producers in non lessfavoured areas of Ireland and the United Kingdom in respect of Northern Ireland.

At the sitting of 6 June 1996, the President of the European Parliament announced that he had referred this proposal to the Committee on Agriculture and Rural Development as the committee responsible and the Committee on Budgets for its opinion.

At its meeting of 7 May 1996 the Committee on Agriculture and Rural Development appointed Mr Alan Leslie Gillis rapporteur.

It considered the Commission proposal and the draft report at its meeting of 25/26 June 1996 and adopted the draft legislative resolution unanimously.

The following were present for the vote: Graefe zu Baringdorf, vicechairman and acting chairman; Funk, vice-chairman; Gillis, rapporteur; Arias Cañete, Barthet-Mayer, Campos, Colino Salamanca, Fraga Estévez, Görlach, Järvilahti, Jové Peres, Kindermann, Klaß (for Mrs Keppelhoff-Wiechert), Kofoed, Martin Philippe, Mayer, Nicholson (for Mr Sturdy), des Places, Redondo Jiménez, Rosado Fernandes, Ryynänen (for Mr Mulder), Sanz Fernández (for Mr Baldarelli), Schierhuber, Sonneveld and Wilson.

The opinion of the Committee on Budgets will be published separately.

The report was tabled on 25 June 1996.

The deadline for tabling amendments is 12 noon on 11 July 1996.

A LEGISLATIVE PROPOSAL - DRAFT LEGISLATIVE RESOLUTION

Proposal for a Council Regulation fixing a supplementary premium payable to sheep producers in non less-favoured areas of Ireland and the United Kingdom in respect of Northern Ireland (COM(96)0152 - C4-0315/96 - 96/0102(CNS))

The proposal is approved.

Legislative resolution embodying Parliament's opinion on the proposal for a Council Regulation fixing a supplementary premium payable to sheep producers in non less-favoured areas of Ireland and the United Kingdom in respect of Northern Ireland (COM(96)0152 - C4-0315/96 - 96/0102(CNS))

(Consultation procedure)

The European Parliament,

- having regard to the Commission proposal to the Council, COM(96)0152 - 96/0102(CNS)[1],

- having been consulted by the Council pursuant to Article 43 of the EC Treaty (C4-0315/96),

- having regard to Rule 58 of its Rules of Procedure,

- having regard to the report of the Committee on Agriculture and Rural Development and the opinion of the Committee on Budgets (A4-0209/96),

1. Approves the Commission proposal;

2. Calls on the Council to notify Parliament should it intend to depart from the text approved by Parliament;

3. Asks to be consulted again should the Council intend to make substantial modifications to the Commission proposal;

4. Instructs its President to forward this opinion to the Council and Commission.

• [1] ()OJ C 159, 4 June 1996, p 7.

B EXPLANATORY STATEMENT

The aim of this proposal is to grant an additional premium to sheepmeat producers in non-less-favoured areas in Ireland and Northern Ireland in order to offset a substantial loss of income incurred by these producers in spring 1995 on account of market prices which were extremely low for the time of year. This special additional premium is confined to the 1995 marketing year.

The Commission's Explanatory Memorandum makes clear the background to the situation, from which it can be seen that the sheepmeat regime, which is based on the difference between the Community average market price and basic price provides compensation to producers when market prices fall, but does not take account of severe price falls over a critical limited period as was the case in spring 1995 in Ireland and Northern Ireland.

The special measure that is now proposed is to provide a supplementary premium of 6.5 ECU per ewe. The total cost will amount to 9.5 million ECU of which 7.4 million ECU will be allocated to the Republic of Ireland and 2.1 million ECU to Northern Ireland.

COMMENT

The early lamb producers in the island of Ireland suffered a severe price drop in spring 1995. Given that this is the most expensive time of year for producing early lambs, ie lambs born during the winter period November to March and which are fed on expensive grain compound feed, it is important to continue to support producers at such a critical time in order to ensure continuity of supply on the market. The additional measure will support 9500-10 000 producers in the island of Ireland (Northern Ireland and Ireland) and will help alleviate losses incurred in 1995. Such support will encourage them to continue production thus maintaining valuable markets on an all year round basis.

The proposal for a supplementary premium which is strictly limited to the 1995 marketing year demonstrates the willingness of the European Union to respond in an emergency to a drop in price.

By the nature of the proposal, it is important for the Parliament to give its approval as quickly as possible so that the premium can be paid urgently.