31985R3722

No L 361 / 38 31 . 12 . 85 Official Journal of the European Communities

COUNCIL REGULATION ( EEC ) No 3722 / 85

of 20 December 1985 on a system of structural aid for the conversion of sardine canning plants

THE COUNCIL OF THE EUROPEAN COMMUNITIES , HAS ADOPTED THIS REGULATION :

Having regard to the Treaty establishing the European Article 1 Economic Community , and in particular Articles 42 and 43 thereof, To facilitate the adaptation of the sardine canning plants of the Community as constituted on 31 December 1985 , hereinafter referred to as 'the Community of Ten ', to the Having regard to the proposal from the Commission (*), new circumstances arising from the accession of Spain and Portugal , the Commission may grant structural aid Having regard to the opinion of the European hereinafter referred to as ' Community assistance', in respect Parliament ( 2 ), of projects satisfying the requirements laid down in this Regulation . Such assistance shall consist of capital grants paid in a lump sum or in instalments . Whereas the Accession of Spain and Portugal alters the existing equilibrium in the market for canned sardines in the Community as at present constituted ; Article 2 Whereas this new context, by altering the conditions of For the purposes of this Regulation , Community sardine competition , affects the situation of sardine canning plants canning plants , hereinafter referred to as 'canning plants', in the Community as at present constituted ; means undertakings of the Community of Ten , all , or at least a substantial part , as a percentage or as an absolute Whereas a three-year structural measure should therefore quantity , of whose production during the last two years be introduced to enable such canning plants to adapt to the prior to accession , falls within subheading 16.04 D of the new situation ; Common Customs Tariff .

Whereas the said structural measure should aim at the conversion of Community sardine canning plants to the manufacture of other products based on sardines or on TITLE I other fishery products ; whereas it should also aim at the permanent cessation of operations of certain existing Descriptive programme canning plants ; whereas , subject to certain conditions , it should in the long run facilitate the rationalization of canned sardine production ; Article 3

Whereas Community financial assistance should be made 1 . The Member States concerned shall draw up available for projects complying with the aims of this descriptive programmes designed to inform the structural measure ; Commission of the measures to be implemented under this Regulation .

Whereas such projects should form part of descriptive programmes of the measures to be undertaken , drawn up 2 . Each descriptive programme shall comprise at least: by the Member States; — a description of the situation of canning plants at the date of accession of Spain and Portugal with particular Whereas detailed rules for the granting of such assistance reference to their production capacity , their must be drawn up ; geographical location and the origin of the sardines which they process ; Whereas the provisional cost of this structural measure to — a description and financial appraisal of the conversion be borne by the Community must be specified , operations to be undertaken ;

— the laws , regulations and administrative measures which exist or are planned for carrying out those operations ; 0 ) OJ No C 297 , 20 . 11 . 1985 , p. 3 . ( 2 ) Opinion delivered on 13 December 1985 ( not yet published in — a description of the disposal prospects for canned the Official Journal ). sardines ;

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Article 5 — a description of the importance of the sardine canning industry for the situation of the region concerned . 1 . Projects involving research within the meaning of Article 4 ( a ) shall be proposed and managed by one or 3. The Commission shall assess the compatibility of the more canning plants or associations of canning plants descriptive programme with : which possess the necessary qualifications and experience and provide an adequate guarantee as to the satisfactory — the objectives of this measure ; completion of the work . — the programme presented by the Member State 2 . Community assistance for projects shall not exceed concerned within the framework of Regulation ( EEC ) 50 % of the expenditure resulting from the research work No 355 / 77 0 ). in question . The contribution to be made by the Member State concerned shall be not less than 5 % and that of the beneficiary not less than 10 % of the expenditure Member States shall , at the request of the Commission , involved . furnish additional data needed to carry out the said assessment . Article 6 4 . Throughout the duration of this measure , the Member 1 . Projects concerning promotional measures within the States concerned shall submit annual reports to the meaning of Article 4 ( c ) shall be proposed by and Commission on the results and on the evolution of the implemented under the supervision of organizations situation of canning plants . The said reports shall be representing the sardine canning industry in one or more submitted by 1 July of each year at the latest . The first such Member States . Such measures shall be collective and shall report shall be submitted by 1 July 1987 at the latest . not focus on particular brands or canning plants nor refer to a particular country or region of production . 2 . Community assistance for the measures referred to in TITLE II paragraph 1 shall not exceed 50 % of the expenditure concerned . The contribution to be made by the Projects organization in receipt of assistance shall be not less than 25 % and the contribution to be made by the Member Article 4 State concerned not less than 5 % of the said expenditure . For the purposes of this Regulation , project means any public, semi-public or private project , all or part of which Article 7 involves physical investments or measures intended to secure : 1 . Projects concerning measures relating to the manufacture of new products , the conversion of canning (a) research into new products or products derived from plants , the improvement of distribution networks and the sardines , more suited to the requirements of the market rationalization of existing installations within the meaning and whereby the markets of canning plants may be of Article 4 ( b ), ( e ), ( f) and ( g ) shall : broadened ; — involve physical investments ; (b) the manufacture of such new products or derived — afford an adequate guarantee as to their profitability ; products ; — contribute to the lasting economic effect of conversion (c) the promotion of consumption of sardines and aimed at by this measure ; and sardine-based products , including surveys into the — ensure appropriate and lasting participation by consumption of such products and market surveys or producers in the resultant benefits . pilot measures relating to the marketing of such products and , more particularly , the new products 2 . As a proportion of the investment taken into account referred to under ( a ); for assistance , for each project : (d) the permanent cessation of operations of existing ( a ) Community assistance may not exceed : canning plants ; — 50 % as regards the measures referred to in Article 4 ( b ), ( e ), ( f) and ( g ); (e) the conversion of canning plants to the manufacture of other fishery products of Community origin ; ( b ) the contribution to be made by the beneficiary shall be not less than : (f) the improvement of marketing and distribution — 25 % as regards the measures referred to in networks for sardine-based products ; Article 4 ( b ) and ( e ), (g) the rationalization of canned sardine production units — 35 % as regards the measures referred to in of existing canning plants . Article 4 ( f) and ( g ).

( c) the contribution to be made by the Member State concerned shall be not less than 5 % . 0 OjNoL 51 , 23 . 2 . 1977 , p. 1 .

No L 361 / 40 31 . 12 . 85 Official Journal of the European Communities

Article 12 3 . The rationalization measures referred to in Article 4 ( g) must enable the canning plants concerned to become competitive on the Community market for canned sardines Projects which are eligible for Community aid under other by the improvement of their productivity and the quality of common measures within the meaning of Article 6(1 ) and their production but must in no circumstances result in an ( 2 ) of Regulation ( EEC ) No 729 / 70 ( 2 ) or for aid from the increase in the capacity and production of canned sardines European Regional Development Fund shall not come of the production units concerned . within the scope of this Regulation .

Article 8 TITLE IV Community aid to projects concerning the permanent cessation of operations referred to in Article 4 ( d ) shall Financial and general provisions consist of the grant of a premium intended to cover the expenditure entailed by the complete and definitive closure Article 13 of the production plants concerned .

The amount of the premium , calculated on the basis of the 1 . Natural or legal persons , or groups thereof, who are average production of the production plants concerned ultimately responsible for the cost of carrying out a project over the last three years preceding that of the permanent shall be eligible for Community assistance . Assistance shall cessation of operations shall be equal to one half of the be paid through agencies appointed for that purpose by the expenditure concerned and may not exceed 150 ECU per Member State concerned . basis product tonne processed .

Its payment shall be conditional upon payment by the 2 . Throughout the period during which Community Member State in question of a similar premium . assistance is granted , the authority or agency appointed for that purpose by the Member State concerned shall , at the request of the Commission , forward to it all supporting Article 9 documents which are evidence that the financial or other conditions laid down for each project have been fulfilled . Projects shall form part of the descriptive programme The Commission may , if necessary , carry out an referred to in Article 3 . on-the-spot check .

3 . The Commission may , in accordance with the TITLE III procedure laid down in Article 15 , decide to suspend, reduce or discontinue assistance : Procedure for the examination of projects ( a ) if the project is not carried out as planned , or Article 10 ( b ) if certain of the conditions laid down are not fulfilled, 1 . Applications for Community assistance shall be or submitted to the Commission through the Member State concerned after the latter has delivered a favourable opinion thereon . ( c) if the beneficiary , except if the decision to grant assistance provides , following a reasoned request on his part , for different time limits : 2 . The Commision shall take decisions once yearly on applications for assistance in accordance with the procedure laid down in Article 15 . Applications for — fails to begin the work within one year ; assistance shall be submitted not later than 31 May of each year . — fails to complete the work within a period of two years of the date of notification of the Commission decision . Article 1 1

Applications for Community assistance shall be submitted 4 . Appropriations made available by a decision taken in in the form laid down , mutatis mutandis, by Regulation accordance with paragraph 3 or because the beneficiary ( EEC ) No 2515 / 85 (*). In addition , they shall contain all abandons the project or reduces the investment laid down the particulars needed to verify compliance with the in the decision to grant assistance , may be used for the provisions of this Regulation . financing of other projects .

( ! ) OJ No L 243 , 11 . 9 . 1985 , p. 1 . ( 2 ) OJ No L 94 , 28 . 4 . 1970 , p. 13 .

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5 . The detailed rules for the application of this Article 3 . The Commission shall adopt the measures , which shall shall be mutatis mutandis, those laid down in Regulation be immediately applicable . However , if such measures are (EEC ) No 1685 / 78 0 ). not in accordance with the opinion of the Committee , the Commission shall communicate them forthwith to the Council . In that case , the Commission may defer the Article 14 application of the measures which it has decided upon for not more than one month from the date of such Applications for assistance submitted to the Commission communication . The council may , acting by a qualified but which could not be granted owing to the insufficiency majority , adopt a different decision within one month . of the resources available may , with the agreement of the applicants , be carried forward to the following financial year by the Member State concerned . Requests that such Article 16 applications be carried forward shall be submitted to the Commission within a period of 30 days from the date on 1 . The granting of Community assistance must not affect which the Member State receives notification of the result the conditions of competition in such a way as to be of the procedure laid down in Article 15 . An application incompatible with the principles laid down in the Treaty . for assistance may , however , be carried forward once only . 2 . Articles 92 , 93 and 94 of the Treaty shall apply in respect of matters covered by this Regulation . Article IS

1 . Where reference is made to the procedure laid down in Article 1 7 this Article , the matter shall be referred to the Standing Committee for the Fishing Industry , hereinafter referred to 1 . The duration of this measure shall be three years as the 'Committee', by the chairman thereof , either on his commencing on 1 January 1986 . own initiative , or at the request of the representative of a Member State . 2 . The provisional cost to be borne by the Community is estimated at 10 million ECU . 2 . The representative of the Commission shall submit a draft of the measures to be adopted . The Committee shall deliver an opinion on those measures within a time limit which may be set by the chairman according to the urgency Article 18 of the matter . The Committee shall take decisions by a majority of 54 votes , the votes of the Member States shall This Regulation shall enter into force on 1 January 1986 , be weighted as provided for in Article 148 ( 2 ) of the subject to the entry into force of the Treaty of Accession of Treaty . The chairman shall not vote . Spain and Portugal .

This Regulation shall be binding in its entirety and directly applicable in all Member States .

Done at Brussels , 20 December 1985 .

For the Council

The Président

R. STEICHEN

0 OJNo L 197 , 22 . 7 . 1978 , p. 1 .