Council Regulation (EC) No 1493/1999 (repealed)Show full title

Article 5U.K.

1.In order to improve the management of production potential, at a national and/or regional level, Member States shall create a national reserve, and/or as the case may be, regional reserves, of planting rights.

2.The following shall be allocated to the reserve or reserves:

(a)new planting rights, replanting rights and planting rights granted from the reserve which are not used within the time limits laid down respectively in Article 3(4), Article 4(5) and paragraph 6 of this Article;

(b)replanting rights allocated to the reserve by producers who hold such rights, where necessary in return for a payment from national funds, the amount of which, and any other detail of which, shall be determined by the Member States taking into account the legitimate interests of the parties;

(c)newly created planting rights, as referred to in Article 6[F1;]

[F2(d) for Cyprus, planting rights of 2 000  ha for the production of quality wines out of the Cyprus national reserve existing before accession. Cyprus shall provide the Commission with a list of the regions which will be allocated the planting rights coming from this national reserve.]

3.Member States may grant the rights allocated to the reserve:

(a)without payment, to producers who are under 40 years of age, who possess adequate occupational skill and competence, who are setting up for the first time on a wine-producing holding and who are established as the head of the holding; or

(b)against payment into national and, if appropriate, regional funds, to producers who intend to use the rights to plant vineyards whose production has an assured outlet. The Member States shall define the criteria for setting the amounts of the payment which may vary depending on the final intended product of the vineyards concerned.

4.Member States shall ensure that the location where planting rights granted from a reserve are used, the varieties used and the cultivation techniques used guarantee that the subsequent production is adapted to market demand and that the yields concerned are typical of the average in the region where such rights are used, in particular, where planting rights originating in non-irrigated areas are used in irrigated areas.

5.Planting rights allocated to a reserve may be granted from it no later than the end of the fifth wine year following the one during which they were allocated to it. Planting rights not granted by that time shall be extinguished.

6.Planting rights granted from a reserve shall be used before the end of the second wine year after the one in which they were granted. Planting rights granted from a reserve not so used during this period shall be allocated to a reserve under paragraph 2(a).

7.When a Member State creates regional reserves, it may lay down rules permitting the transfer of planting rights between regional reserves. If regional and national reserves coexist in the same Member State, transfers between such transfers may also be permitted.

The transfers referred to in this paragraph may be subject to a reduction coefficient.

8.By way of derogation fram paragraphs 1 to 7, a competent authority of a Member State may choose not to implement the reserve system provided that the Member State can prove that an effective system for managing planting rights exists throughout its territory. That system may, where necessary, derogate from the relevant provisions of this Chapter. Where a Member State has such a system, replanting rights as referred to in the first sentence of Article 4(5) shall be extended by five wine years. The second sentence of Article 4(5) shall remain applicable.