Mr President, the issue of cod stock recovery is an important one. It affects not only my own country of Scotland, but also the rest of the UK, Ireland and Denmark. Last week, the International Council for Exploration of the Seas (ICES) warned us that young North Sea cod measured in early 2003 were at their lowest level in 20 years. Worries over repeating what happened in Newfoundland, where the cod never returned, haunt us all, and the ICES advice is stark: 'These cod stocks are at such a low level that we have had to resort to recommending zero catches as a final line in the sand'. Zero catches means no fishing in the North Sea. The Commission's proposal sets out a package of measures which, if followed, is believed to allow the safe recovery of this valuable stock within five to ten years. The Commission is not alone in this objective. Yesterday's cod recovery proposal from the Scottish Fishermen's Federation also stated that: 'restoring cod to its historic level of abundance remains an important objective for fishermen, since a revitalised cod fishery would transform the economics of the whole demersal fishery'. The Commission proposal attempts to achieve an absolute minimum size of stock, sets guidelines for setting total allowable catches (TACs), introduces fishing limitation through Kilowatt days and deals with the monitoring, inspection and control side of fisheries management As rapporteur, I have tried to say to the Commission that all action must be taken to recover stocks. We cannot use a one-size-fits-all approach across the areas covered by the plan. We need a flexible approach based on scientific assessment allowing fishing to continue for other species. Where it can be proved that fishing for other species in a particular area does not adversely affect cod recovery, fisheries should continue to be allowed and the concept of spatial management needs to be fully investigated. On research, we need to look seriously at the interaction of cod and other commercial fish species such as haddock and whiting. This evidence should involve fishermen as well as scientists. The impact of industrial fisheries also requires a thorough investigation. We constantly receive mixed messages on this issue and we need clarity. Regional advisory councils are vital to the future of a sustainable EU fishing policy. If we are going to be successful in our objectives of cod recovery, we must work with fishermen. I was happy to see this week's Commission proposal providing a blueprint for these regional advisory councils and how they would work, with two thirds of the membership of these new organisations coming from those active in the fisheries sector. I hope we will be able to improve dialogue and cooperation between all those concerned in order to secure a sustainable future for our industry. On the socio-economic impact of these measures, the Commission's proposal does not go far enough. Some of the communities most directly affected are in remote areas truly on the periphery of the European Union. Parliament has already recognised the importance of the socio-economic issues in its resolution of March 2003. To be fair, so too have some of the Member States. The Scottish Executive has given GBP 50 million, with GBP 40 million for decommissioning and GBP 10 million for the direct socio-economic impact. However, we have to be very clear that it is up to national and regional authorities to take up the possibilities available to them in assisting the sector during this difficult time. I would like to see Member States carrying out socio-economic impact assessments on the recovery plan. On the basis of these reports, we would better be able to assess the problems and to mitigate any negative effects. I would like to see Member States having these in place one year after the implementation of this programme. On fishing effort limitation, the principle of proportionality must apply. The reference period used must take into consideration the pain the industry has already suffered through any decommissioning process. On inspection control, we need to extend satellite vessel monitoring, as suggested by the House of Lords report of May 2003. It seems a sensible measure and I welcome the fact that the Commission intends to come forward with a separate proposal on satellite monitoring. In conclusion, the revised cod recovery plan will be painful for the fishing industry and dependent communities. There is no point inflicting a lesser degree of pain or indeed any suffering at all if the measures implemented do not bring about the desired result. Yet, if stock recovery is not achieved, the outcome will be increased socio-economic hardship in any event. Successful recovery of the stock must be the priority. What is needed is a package of measures which is both effective and minimises the pain to the sector.

Political group: PSE