As you know, the national reserve counts in a sense as part of the Member States’ total quota, so if individual producers go over their quota, but Member States as a whole do not exceed their quota, with the national reserve included, then no super levy is actually paid.

What I intend to propose is that bought-up quota kept within the national reserve will not count as part of the national quota when it comes to deciding whether we have to add or to ask the farmers to pay the super levy or not.

Of course, this must not lead to an increase in milk delivery without superlevy.

For producers whose deliveries go beyond that level, the compensation will be reduced accordingly The super levy of 100 % of the target price is maintained, but should be kept under review National reserves of 2 % of the global guaranteed quantities must be established via linear general reduction of quota and/or generated through suppression of unused quotas from producers who did not engage or intend to engage in milk prodution and/or by taking over a part of transferred reference quantities between producers/. - 8 - . No further transfers from direct sales to deliveries should in principle be contemplated and the guaranteed quantity f ...[+++]or direct sales should be reduced to the level of actual direct sales in the third period (1986/87) The extended period should be considered as a transitional period towards the attainment of market equilibrium, at the end of which the Commission intends to move to a more flexible quota system.

The Commission thinks that this trend is largely due to the weakening of the superlevy because of the payment of the aid associated with the suspension scheme even if the producer exceeds his available quota.

This compensation is proposed to be reduced to 8 ECU/100 kg during the last six months of this period The super levy remains at 100 % of the target price No change in the present adapted intervention system is proposed at the present time.