PURPOSE: to amend Regulation (EC) No 1782/2003 as regards the transfer of tobacco aid to the Community Tobacco Fund for the years 2008 and 2009 and Regulation (EC) No 1234/2007 with regard to financing of the Community Tobacco Fund.

LEGISLATIVE ACT: Council Regulation (EC) No 470/2008 amending Regulation (EC) No 1782/2003 as regards the transfer of tobacco aid to the Community Tobacco Fund for the years 2008 and 2009 and Regulation (EC) No 1234/2007 with regard to financing of the Community Tobacco Fund.

CONTENT: the Community Tobacco Fund aims to finance the campaign against tobacco, as well as actions for the reconversion of production. Actions funded by the Community Tobacco Fund have proved to be very successful as well as a positive example of cooperation between agriculture and health policies. In order to ensure the continuation of those actions, and taking into account that the Fund has always been funded by transfer from the tobacco aid, it is appropriate to transfer an amount equal to 5 % of the tobacco aid granted for the calendar years 2008 and 2009 to the Community Tobacco Fund. The Council has amended Regulation (EC) No 1782/2003 and Regulation (EC) No 1234/2007 accordingly.

ENTRY INTO FORCE: 06/06/2008.

The European Parliament adopted, by 379 votes to 244 with 14 abstentions, a resolution amending the proposal for a Council Regulation amending Regulation (EC) No 1782/2003 as regards the transfer of tobacco aid to the Community Tobacco Fund for the years 2008 and 2009 and Regulation (EC) No 1234/2007 with regard to financing of the Community Tobacco Fund. The report had been tabled for consideration in plenary by Sergio BERLATO (UEN, IT) on behalf of the Committee on Agriculture and Rural Development.

A new recital points out that, bearing in mind the many reforms introduced since 2004, particularly in the fruit and vegetable sector, producers of raw tobacco should not be discriminated against in relation to other European farmers. Parliament proposes transferring an amount equal to 6% of the tobacco aid granted for the calendar years 2009 to 2012 to the Community Tobacco Fund. Article 110j (Scope of application) is amended to state that for the harvest years up until 2012, aid may be granted to farmers producing raw tobacco falling within CN code 2401, under the conditions laid down in the Chapter.

The title of the proposal has been changed to Council Regulation amending Regulation (EC) No 1782/2003 as regards the transfer of tobacco aid to the Community Tobacco Fund for the period 2009-2012 (rather than 2008 and 2009) and Regulation (EC) No 1234/2007 with regard to financing of the Community Tobacco Fund.

The Committee on Agriculture and Rural Development adopted the report by Sergio BERLATO (UEN, IT) amending the proposal for a Council regulation amending Regulation (EC) No 1782/2003 as regards the transfer of tobacco aid to the Community Tobacco Fund for the years 2008 and 2009 and Regulation (EC) No 1234/2007 with regard to financing of the Community Tobacco Fund.

The European Commission proposes to extend the financing of the Community Tobacco Fund for the next two harvest years (2008 and 2009, budget years 2009 and 2010), in order to bring it in line with Article 110j of Council Regulation (EC) No 1782/2003. In practice, it is planned to transfer an amount equal to 5% of the tobacco aid granted for the calendar years 2008 and 2009 to the Community Tobacco Fund, in order to finance actions of information to improve public awareness of the negative effects of tobacco consumption.

MEPs believe that the proposal to make an unscheduled deduction in the aid for the calendar year 2008 could give rise to a plethora of legal actions or, at any event, to a dispute, which would ultimately cause grave prejudice to farmers alone. The Community Tobacco Fund must continue to receive support and be revitalised, according to the report.

Consequently, the Committee on Agriculture proposes to extend the financing of the Community Tobacco Fund until the harvest year 2012 and to increase the percentage rate of the deduction for the Fund to 6% . MEPs believe that these two elements could constitute a financial contribution of EUR 81 million, which would be enough to cover actions under the Community Tobacco Fund until the year 2013.

PURPOSE: to transfer 5% of the tobacco aid granted for the calendar years 2008 and 2009 to the Community Tobacco Fund.

PROPOSED ACT: Council Regulation.

BACKGROUND: according to Council Regulation (EC) No 1782/2003 establishing common rules for direct support schemes under the CAP, tobacco aid is granted to raw tobacco producers, for the harvest years 2006-2009. The “Single CMO Regulation” (Regulation (EC) no 1234/2007) provides for the funding of the “Community Tobacco Fund”. The Tobacco Fund is funded by transferring 5% of the 2006 and 2007 tobacco aid to it. Indeed, the Community Tobacco Fund has always been funded by the transfer of part of the tobacco aids. Transfers to the Community Tobacco Fund, for the calendar years 2006 and 2007, was proposed when the Single payment schemes was first introduced. However, later provisions extended the tobacco aid to 2008 and 2009 – without extending the funding to the Community Tobacco Fund by a reduction of the tobacco aid.

Actions funded by the Community Tobacco Fund have been very successful and are a positive example of cooperation between agriculture and health policies.

CONTENT: the purpose of this proposal, therefore, is to ensure the continuation of actions funded by the Community Tobacco Fund. It intends to do so by transferring financing from the tobacco aid, an amount equal to 5% of the tobacco aid granted, for the calendar years 2008 and 2009, to the Community Tobacco Fund.

PURPOSE: to transfer 5% of the tobacco aid granted for the calendar years 2008 and 2009 to the Community Tobacco Fund.

PROPOSED ACT: Council Regulation.

BACKGROUND: according to Council Regulation (EC) No 1782/2003 establishing common rules for direct support schemes under the CAP, tobacco aid is granted to raw tobacco producers, for the harvest years 2006-2009. The “Single CMO Regulation” (Regulation (EC) no 1234/2007) provides for the funding of the “Community Tobacco Fund”. The Tobacco Fund is funded by transferring 5% of the 2006 and 2007 tobacco aid to it. Indeed, the Community Tobacco Fund has always been funded by the transfer of part of the tobacco aids. Transfers to the Community Tobacco Fund, for the calendar years 2006 and 2007, was proposed when the Single payment schemes was first introduced. However, later provisions extended the tobacco aid to 2008 and 2009 – without extending the funding to the Community Tobacco Fund by a reduction of the tobacco aid.

Actions funded by the Community Tobacco Fund have been very successful and are a positive example of cooperation between agriculture and health policies.

CONTENT: the purpose of this proposal, therefore, is to ensure the continuation of actions funded by the Community Tobacco Fund. It intends to do so by transferring financing from the tobacco aid, an amount equal to 5% of the tobacco aid granted, for the calendar years 2008 and 2009, to the Community Tobacco Fund.