15.12. 75 Official Journal of the European Communities No C 286/41

Opinion on the Commission report to the Council on the situation regarding the production and marketing of hops — 1974 harvest, and on the proposal for a Council Regulation laying down, in respect of hops, the amount of aid to producers for the 1974 harvest

The text referred to the Committee was published in Official Journal of the European Communities No C 218 of 24 September 1975, page 3.

A. LEGAL BASIS FOR THE OPINION

On 14 August 1975, the Council referred the abovementioned report and proposal to the Economic and Social Committee under Articles 47 and 198 of the Treaty establishing the European Economic Community.

B. OPINION OF THE ECONOMIC AND SOCIAL COMMITTEE

The Economic and Social Committee drew up its Opinion at its 133rd plenary session, held in Brussels on 24 and 25 September 1975.

The Opinion is published below:

THE ECONOMIC AND SOCIAL COMMITTEE, HAS ADOPTED THE FOLLOWING OPINION

Having regard to the Council's request of 14 August by unanimous vote: 1975 for an Opinion;

Having regard to Articles 47 and 198 of the Treaty The Committee approves the Commission proposals establishing the European Economic Community; but has the following comments to make.

Having regard to the decision taken by the Committee Chairman, in accordance with the 1. Article 11 of the basic Regulation on the urgency procedure laid down in Articles 46 and 47 common organization of the market in hops of the Rules of Procedure, instructing the Section for stipulates that the Commission has to submit to the Agriculture to prepare the Committee's work on the Council before 30 April each year a report on the matter; situation regarding the production and marketing of hops. This report is to be used as a basis for calculating the aid provided for in the basic Having regard to its earlier work in this field, and Regulation. The Committee notes with satisfaction more especially its Opinion adopted on 30 January that considerable progress has been made this year 1975 H; compared with the past. Although the time limit laid down in the Regulation could not be met this year, Having regard to the oral report made by the the proposals on aid were available before the new Rapporteur, Mr Bernaert; harvest.

Having regard to the Opinion issued by the Section for Agriculture at its meeting on 15 September 1975; 2. The Committee shares the Commission's concern about the problem of surpluses in the medium term. It considers that to assess the present Having regard to the discussion at the Committee's situation properly, account must be taken of the meeting on 24 September 1975 (133rd plenary existence of large stocks of processed goods, which session of 24 and 25 September 1975), will affect the disposal of future harvests, even though the 1975 harvest is expected to be lower than (!) OJ No C 62, 15. 3. 1975. usual. This is a problem that needs to be looked into 1 No C 286/42 Official Journal of the European Communities 15.12. 75 thoroughly in view of the very poor elasticity of the Furthermore, the Committee is of the view that hop market. Since there is only one outlet for hops, Community breweries could also play an important this market reacts more violently than the other part in this matching of supply and demand. They agricultural markets to any imbalance between could develop the policy of multi-year contracts in supply and demand. all the Member States where such a policy has not been put into effect or has only been implemented to The Committee considers that these surpluses are a small extent. due in particular to: 5. The Committee notes that for the 1974 harvest, — the increase in the acreages of hops in certain the Commission has, on average, increased aid by Member States in recent years, 16 °/o over the amount given for the 1973 harvest.

— the considerable increase in the use of hop The Committee wonders how the Commission took derivates, which has meant a very great saving in increases in production costs into account in basic products, working out its proposals on aid. The Committee — the cutback in the quantity of hops used per regrets that it cannot assess the proposal before it, hectolitre, because it does not know what criteria have been applied and what data the proposal is based on. — the existence of stocks of processed hop products (e.g. powders and extracts). The Committee would also draw the Commission's attention to the fact that the use of the 'green' 3. The Committee recalls that when it was parities for converting the returns per hectare in the drawing up its Opinion of 30 January 1975 on the different Member States into units of account make 1973 hop harvest, it asked the Commission to invoke it difficult to compare the incomes of producers in Article 12 (4) of the basic Regulation (EEC) No the various States. 1696/71, and took note of the Commission's intention to solve the problem of surpluses by 6. The Committee is aware of the reservations amending the basic Regulation itself. It notes that expressed about the returns per hectare worked out the Commission has not yet been able to proceed by the Commission for some varieties in some with this amendment, and urges that this be done as Member States, but feels that it is not qualified to soon as possible. comment on them. It therefore calls upon the Commission to look into the matter and draw The Committee notes that the Commission now whatever conclusions are necessary. plans to use the basic Regulation to exclude areas newly planted in 1974 from entitlement to aid for In addition, the Committee notes the divergence of the 1974 harvest. In view of the selective nature of Community producers' views on the amounts of aid such measures, the Committee urges the Commission proposed by the Commission for different varieties, to make sure that they cannot result in mainly because of the reasons set out above. The discrimination between different Member States' Committee does not believe it should comment on producers. these views, but takes note of them and considers that they should be examined most carefully by the 4. The Committee would reiterate the remarks Commission. made in its last Opinion about the importance of the role of producers' organizations in providing the The Committee recommends that the Commission information necessary for the calculation of aid and should try and forestall such objections when it is in achieving a balance between supply and demand. drawing up any new basic Regulations.

Done at Brussels, 24 September 1975.

The Chairman of the Economic and Social Committee Henri CANONGE