EC COMMISSION MODIFIES OILS TAX PLAN
The EC Commission has proposed a
modified plan for a tax on marine and vegetable oils and fats
in its revised 1987/88 farm price proposals, an official
document detailing the proposals shows.
    The document, made available to journalists, says the
commission proposes that the tax should start at levels
originally proposed for vegetable oils on October 1.
    However, the tax on marine oils and fats would be cut by 50
pct from originally envisaged levels, the document said.
    In addition, the Commission proposes that the level of the
tax, expected to start at 330 Ecus per tonne, could be reviewed
every three months rather than annually.
    Diplomatic sources said the change to the proposals for
fish oils appears to be an attempt to overcome objections to
the tax from Portugal and Spain, major fishing nations.
    Other countries opposing the tax include Britain, West
Germany and Denmark.
    The new proposals retain most of the Commission's original
plans in other sectors.
    However, they mark the Commission's recognition that it
cannot get proposals to reduce the period of intervention for
cereals, diplomats said.
    Instead the Commission proposes to cut the monthly
increments applied to cereals during the November to May period
when intervention is open to 2.7 Ecus a tonne for durum wheat
and two Ecus a tonne for other cereals.
    The document shows the Commission has also changed its
green currency proposals in the light of heavy opposition,
notably from West Germany.
    West German and Dutch positive monetary compensatory
amounts (MCAs) would be immediately cut by 0.5 points, with a
further one point cut at the beginning of the 1988/89 season.
    The Commission originally proposed a complete dismantling
of positive MCAs.
     For other countries, the Commission makes the following
proposals for dismantling negative MCAs
     Denmark and Benelux - reduction of around 1.5 points for
animal products and just over two points for crops.
     France and Ireland - proposals unchanged except for an
extra 1.5 point cut for beef.
     Italy - dismantling of all MCAs except those created since
January 12.
    Britain - five point cut for most products, 6.5 points for
beef.
    Greece, Spain and Portugal - for most products, dismantling
of seven, 14 and 5.5 points respectively.
 Reuter
