A3-0168/94

Resolution on an assessment and forecast of the Community's dairy policy

The European Parliament,

-having regard to its resolution of 12 March 1991 on an assessment and forecast of the Community's dairy policy,

-having regard to the following motions for resolutions:

(a)by Mr Woltjer on the application of the quota regulations in the dairy sector (B3-0471/92),

(b)by Mrs Muscardini on problems connected with milk production (B3-0896/92),

(c)by Mr Killilea and Mr Lane on milk quotas and farm diversification (B3-1062/92),

(d)Mrs Muscardini on the reduction in Italy's milk quotas (B3-1266/92);

-having regard to Rule 148 of its Rules of Procedure,

-having regard to the report of the Committee on Agriculture, Fisheries and Rural Development (A3-0168/94),

A.whereas the milk quota system has made a vital contribution to bringing the level of production into line with consumption,

B.whereas, as repeatedly called for by Parliament, the rules governing the system have been revised and their application extended to the year 2000,

C.whereas all parties concerned - the Member States, producers' organizations and the processing industry - are agreed that dairy production must continue to be controlled for the time being,

D.whereas the current rules give Member States greater flexibility, both with regard to balancing out surpluses produced by individual producers and with regard to implementing structural improvement measures,

E.whereas Parliament has repeatedly rejected any renationalization of agricultural policy, particularly with regard to the provisions implementing the dairy quota system,

F.whereas the system is still subject to regular adjustments which in the short term may again render it unclear and impede its correct application,

1.Notes that it is in the interests of dairy farmers to establish market balance so that subsidized sales and/or limited intervention can be kept under control and the market price can stabilize again;

2.Recalls in this connection the need for an on-going evaluation of the relationship between supply and demand, including the impact of international obligations on exports, and the need to take new measures on the basis of the results of this evaluation;

3.Observes that, after ten years, the implementation of the system in some Member States still leaves a certain amount to be desired, which producers in other countries regard as a grave injustice and which aggravates the problem of overproduction;

4.Notes, however, that Spain, which joined the Community in 1986, has made the necessary efforts to implement the quota arrangements;

5.Takes the view that the greater freedom which the Member States have gained as regards the funding of structural improvement measures has placed small producers in some Member States at an even greater disadvantage; in this connection, calls on the Commission to draw up a comparative study of the objective criteria proposed by Member States which producers must meet in order to be eligible for additional quotas;

6.Notes that the original system was based on individual reference quantities and payment of a superlevy on overruns by individual producers and that the system has evolved towards one of total guaranteed quantities;

7.Reiterates that, partly because of the lack of precise guidelines, a situation has arisen, which moreover is tacitly tolerated, in which fundamental discrimination exists between producers in different Member States as regards the sale price of quotas;

8.Wishes particular attention to be devoted to structural improvements which benefit family farms;

9.Urges the Commission and Council to extend the provisional arrangements applicable to the new Länder for four years to enable the farmers and dairy enterprises concerned to implement the necessary structural adjustments;

10.Observes that it will be impossible to abolish the quota system in the year 2000 without having modified the present system or worked out an alternative to prevent a huge expansion in milk production; considers that any new or modified rules should be announced as early as possible, to enable producers to take them into account;

11.Takes the view that in the dairy industry a mixed system based on quotas for individual producers and allowing sales of limited quantities, outside the quota system and without support, on the world market, could replace the existing system;

12.Calls on the Commission to consult with all parties concerned without delay as to how arrangements for controlling production can continue in a modified form;

13.Urges the Commission to involve Parliament closely in preparations for the measures which are to apply after the year 2000;

14.Instructs its President to forward this resolution to the Commission and the Council.