The Irish Farmers Association and others v Minister for Agriculture, Food and Forestry, Ireland and Attorney General.

• Jurisdiction: European Union
• Celex Number: 61994CJ0022
• ECLI: ECLI:EU:C:1997:187
• Date: 15 April 1997
• Court: Court of Justice (European Union)
• Procedure Type: Reference for a preliminary ruling
• Docket Number: C-22/94

Avis juridique important

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61994J0022

Judgment of the Court (Sixth Chamber) of 15 April 1997. - The Irish Farmers Association and others v Minister for Agriculture, Food and Forestry, Ireland and Attorney General. - Reference for a preliminary ruling: High Court - Ireland. - Additional levy on milk- Reference quantity - Temporary withdrawal - Conversion - Definitive reduction - Loss of compensation. - Case C-22/94.

European Court reports 1997 Page I-01809

Summary
Parties
Grounds
Decision on costs
Operative part

Keywords

1 Agriculture - Common organization of the markets - Milk and milk products - Additional levy on milk - Temporary suspension of a percentage of the reference quantities exempt from the levy - Conversion into definitive reduction without compensation - Principle of protection of legitimate expectations - Right to property - Principle of proportionality - Principle of non-discrimination - Breach - None

(EC Treaty, Art. 40(3); Council Regulation No 804/68, Art. 5c(3)(g), inserted by Regulation No 816/92, and Regulation No 3950/92, Art. 3, as amended by Regulation No 1560/93)

2 Acts of the institutions - Statement of reasons - Obligation - Scope

(EC Treaty, Art. 90)

Summary

3 In so far as Article 5c(3)(g) of Regulation No 804/68, inserted by Article 1(3) of Regulation No 816/92, and Article 3 of Regulation No 3950/92, as amended by Article 1 of Regulation No 1560/93, converted the temporary withdrawal of a percentage of the reference quantity exempt from the milk levy, within the meaning of Regulation No 775/87, into a definitive reduction of that quantity without compensation for the producers, those provisions do not breach the principles of the protection of legitimate expectations, non-discrimination and proportionality or the fundamental right to property.

First, with regard to the principle of the protection of legitimate expectations, a prudent and discriminating trader should have anticipated, particularly in view of the continuing surpluses on the market in milk, in addition to the gradual decrease in compensation, other measures to reduce milk production, such as the conversion of the temporary suspension of reference quantities into definitive reductions.

Secondly, those regulations, which correspond to aims pursued in the general interest and which seek to remedy the surpluses on the milk products market, do not affect the actual substance of the right to property.

Thirdly, the conversion of the temporary suspension, after five years, into a definitive reduction without compensation does not infringe the principle of proportionality, since, within the framework of the Community legislature's broad discretionary powers in the field of the common agricultural policy, that conversion does not seem an inappropriate means of achieving the aim of the additional levy scheme, which is to reduce milk production further and permanently.

Finally, it does not conflict with the principle of non-discrimination between producers or consumers, since both beneficiaries of the Community definitive discontinuation of milk production programme and producers who remain active are compensated for the suspended quantities. In fact, while the suspended quantity was included in the calculation of the quantity to be compensated upon definitive discontinuation, the producer who remained active received compensation for the suspended quantity until the end of the eighth 12-month period of the application of the additional levy scheme.

4 The statement of reasons required by Article 190 of the Treaty must show clearly and unequivocally the reasoning of the institution which enacted the measure so as to inform the persons concerned of the justification for the measure adopted and to enable the Court to exercise its powers of review. It is not necessary, however, for details of all relevant factual and legal aspects to be given, in so far as the question whether the statement of the grounds for a decision meets the requirements of Article 190 of the Treaty must be assessed with regard not only to its wording but also to its context and to all the legal rules governing the matter in question.

Parties

In Case C-22/94,

REFERENCE to the Court under Article 177 of the EC Treaty by the High Court of Ireland for a preliminary ruling in the proceedings pending before that court between

Irish Farmers Association and Others

and

Minister for Agriculture, Food and Forestry, Ireland and the Attorney General

on the validity, first, of Article 5c(3)(g) of Regulation (EEC) No 804/68 of the Council of 27 June 1968 on the common organisation of the market in milk and milk products (OJ, English Special Edition 1968 (I), p. 176), as inserted by Article 1(3) of Council Regulation (EEC) No 816/92 of 31 March 1992 amending Regulation (EEC) No 804/68 (OJ 1992 L 86, p. 83) and, secondly, of Article 3 of Council Regulation (EEC) No 3950/92 of 28 December 1992 establishing an additional levy in the milk and milk products sector (OJ 1992 L 405, p. 1), as amended by Article 1 of Council Regulation (EEC) No 1560/93 of 14 June 1993 amending Regulation (EEC) No 3950/92 (OJ 1993 L 154, p. 30),

THE COURT

(Sixth Chamber),

composed of: J.L. Murray, President of the Fourth Chamber, acting as President of the Sixth Chamber, C.N. Kakouris, P.J.G. Kapteyn, G. Hirsch (Rapporteur) and H. Ragnemalm, Judges,

Advocate General: D. Ruiz-Jarabo Colomer,

Registrar: H. von Holstein, Deputy Registrar,

after considering the written observations submitted on behalf of:

- the Irish Farmers Association and Others, by James O'Reilly SC, and John Gleeson, Barrister, instructed by John J. O'Hare & Co., Solicitors,

- the Council of the European Union, by Arthur Brautigam, Legal Adviser, and Michael Bishop, of its Legal Service, acting as Agents,

- the Commission of the European Communities, by Xavier Lewis, of its Legal Service, acting as Agent,

having regard to the Report for the Hearing,

after hearing the oral observations of the Irish Farmers Association and Others, represented by James O'Reilly and John Gleeson; the Minister for Agriculture, Food and Forestry (Ireland) and the Attorney General, represented by Carroll Moran, Barrister; the Council, represented by Arthur Brautigam; and the Commission, represented by Gérard Rozet, Legal Adviser, acting as Agent, and Xavier Lewis, at the hearing on 27 June 1996,

after hearing the Opinion of the Advocate General at the sitting on 11 July 1996,

gives the following

Judgment

Grounds

1 By judgment of 12 November 1993, received at the Court on 24 January 1994, the High Court of Ireland referred to the Court for a preliminary ruling under Article 177 of the EC Treaty two questions on the validity, first, of Article 5c(3)(g) of Regulation (EEC) No 804/68 of the Council of 27 June 1968 on the common organisation of the market in milk and milk products (OJ, English Special Edition 1968 (I), p. 176), as inserted by Article 1(3) of Council Regulation (EEC) No 816/92 of 31 March 1992 amending Regulation (EEC) No 804/68 (OJ 1992 L 86, p. 83) and, secondly, of Article 3 of Council Regulation (EEC) No 3950/92 of 28 December 1992 establishing an additional levy in the milk and milk products sector (OJ 1992 L 405, p. 1), as amended by Article 1 of Council Regulation (EEC) No 1560/93 of 14 June 1993 amending Regulation (EEC) No 3950/92 (OJ 1993 L 154, p. 30).

2 Those questions were raised in the course of a dispute between the Irish Farmers Association and four milk producers and the Minister for Agriculture, Food and Forestry (Ireland) and the Attorney General (hereinafter `the Minister') concerning the temporary withdrawal of 4.5% of the reference quantities pursuant to Council Regulation (EEC) No 775/87 of 16 March 1987 temporarily withdrawing a proportion of the reference quantities mentioned in Article 5c(1) of Regulation (EEC) No 804/68 (OJ 1987 L 78, p. 5), which withdrawal was made permanent without providing for compensation for the milk producers concerned.

3 In order to deal with structural surpluses in the market in milk and milk products, an additional levy on quantities of milk delivered which, according to Formula B, exceed a reference quantity to be determined for each purchaser within the limit of a guaranteed total quantity fixed for each...