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# 52003PC0609

**Proposal for a Council Regulation on the conclusion of the Protocol modifying the Fourth Protocol laying down the conditions relating to fishing provided for in the Agreement on fisheries between the European Economic Community, on the one hand, and the Government of Denmark and the Local Government of Greenland, on the other  /* COM/2003/0609 final - CNS 2003/0236 */****

Proposal for a COUNCIL REGULATION on the conclusion of the Protocol modifying the Fourth Protocol laying down the conditions relating to fishing provided for in the Agreement on fisheries between the European Economic Community, on the one hand, and the Government of Denmark and the Local Government of Greenland, on the other

(presented by the Commission)

EXPLANATORY MEMORANDUM

The Community has a longstanding relation with Greenland on fisheries. The Framework Agreement dates back to 1985 and the latest Protocol is the fourth.

The Fourth Protocol to the Fisheries Agreement between the European Community and the Government of Denmark and the Local Government of Greenland expires on 31 December 2006. However, according to Article 14 of the Protocol a Midterm Review was foreseen to be finalised by 30 June 2003.

Further to the final round of negotiations which took place on 16-18 June in Athens, a Protocol modifying the Fourth Protocol was initialled.

The modified Protocol covers the period from 1 January 2004 to 31 December 2006. Though the financial contribution remains EUR 42,820,000 per year, there is now a clear distinction between the budget support in compensation for the fisheries possibilities; EUR 31,760,679 and the budget support for the structural reform of the fisheries policy; EUR 11,059,321.

The compensation for the fisheries possibilities is based on several changes:

- The deletion of "paper-fish" such as Cod, Blue Whiting, Capelin in Western waters and Redfish in Western waters, as well as Catfish;

- An increase in quotas of 800 tonnes of Atlantic Halibut, of 4,200 tonnes of Greenland Halibut in Eastern waters, and of 4,000 tonnes of Shrimps in Western waters, in accordance with scientific advice;

- The introduction of a quota of 1000 tonnes of Snowcrab, in accordance with scientific advice;

- The introduction of a quota of 2,000 tonnes for all by-catches.

The budget support for the structural reform of the fisheries policy and sector is a new and innovative element, which shows the desire of the two Parties to contribute to the development of sustainable and responsible fisheries. Furthermore, the amount comprises a specific amount of EUR 500,000 for increasing the scientific capacity and budget of the Greenland Institute for Natural Resources.

In order to streamline the Agreement to other Third Country Agreements with financial compensation, make it consistent with the reform of the Fisheries Policy, and in particular the external Fisheries policy, new elements have been introduced:

The main elements of change are:

- The introduction of a yearly revision of the quotas attributed in light of scientific advice and the introduction of a restriction of the number of boats fishing at the same time in the same zone, as well as a possibility of revision in the light of the agreement for the allocation of catch possibilities between coastal countries for Greenland Halibut. This in order to avoid over exploitation of the resources.

- The introduction of payment of licences for all fishery, with rates based on 3 % of landing prices. The rates may be adapted periodically by administrative arrangement between the Parties, taking into account the market and fisheries situation. This is a completely new and key element which should ensure the sound management of the resources, the sound management of Community finances, as well as the coherence with the CFP and the commitment to progressively increase the vessels owners participation. The financial contribution deriving from the direct payment of licences by the vessels owners will be deducted from the Community compensation.

- The introduction of the possibility for experimental fisheries on deep sea species, cephalopods and clams. This is an important part of the agreement, as it could lead to a needed diversification of the fisheries in Greenland and increase the fishing opportunities for Community vessels in the future.

Furthermore, in order to optimise the use of fishing possibilities, the present proposal foresees a mechanism that permits the Commission to temporarily transfer the fishing possibilities during the year in progress that are not utilised by one Member State benefiting from a fishing quota to the catch quota of another Member State, on demand.

This transfer, considering it is of a temporary nature, does not pre-judge the allocation and future fishing possibilities between member States and respects the principle of relative stability and is without prejudice to the competences attributed to the Member States by Article 20 (5) of Regulation No 2371/2002.

In view of the above, the Protocol modifying the Fourth protocol is considered to be good value for money and will encourage the responsible and sustainable exploitation of the resources to the mutual benefit of the Community and Greenland.

The Commission proposes, on this basis, that the Council adopt by Regulation the conclusion of the Protocol modifying the Protocol laying down the conditions relating to fishing provided for in the Agreement on fisheries between the European Economic Community, on the one hand, and the Government of Denmark and the Local Government of Greenland, on the other, for the period 1 January 2004 to 31 December 2006

A draft Council decision on the provisional application of the Protocol modifying the Fourth protocol concerning the provision for experimental fisheries, pending its definitive entry into force is the subject of a separate procedure.

2003/0236 (CNS)

Proposal for a COUNCIL REGULATION on the conclusion of the Protocol modifying the Fourth Protocol laying down the conditions relating to fishing provided for in the Agreement on fisheries between the European Economic Community, on the one hand, and the Government of Denmark and the Local Government of Greenland, on the other

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 37 in conjunction with Article 300(2) and the first subparagraph of Article 300(3) thereof,

Having regard to the proposal from the Commission [1],

[1]  OJ C..., ...,p....

Having regard to the opinion of the European Parliament [2],

[2]  OJ C..., ...,p....

Whereas:

(1) In accordance with Article 14 of the Agreement on fisheries between the European Economic Community on the one hand, and the Government of Denmark and the Local Government of Greenland on the other [3], the two parties held negotiations with a view to determining the amendments to be made to the Fourth Protocol [4] laying down the conditions relating to fishing provided for in that Agreement.

[3]  OJ L 29, 1.2.1985, p. 9

[4]  OJ L 209, 2.8.2001, p. 2

(2) As a result of those negotiations, a Protocol modifying the Fourth Protocol was initialled on 18 June 2003.

(3) The amendments to the Fourth Protocol are following the guidelines set out in the Communication from the Commission of 23 December 2002 on an integrated framework for fisheries partnerships agreements with third countries [5].

[5]  COM (2002) 637final

(4) The Protocol modifies the fishing opportunities for Community fishermen in waters under the sovereignty or jurisdiction of Greenland for the period from 1 January 2004 to 31 December 2006.

(5) It is in the Community's interest to approve the Protocol modifying the Fourth Protocol.

(6) In order to optimise the use of fishing opportunities, it is necessary to provide for the possibility to reallocate the non-utilised fishing opportunities of one Member State, during a fishing campaign, to another Member State on request. Such a transfer, which is to be of a temporary nature, should not prejudice future allocations of fishing opportunities amongst the Member States and is without prejudice to the competences attributed to the Member States by Article 20 (5) of Regulation No 2371/2002,

HAS ADOPTED THIS REGULATION:

Article 1

The Protocol modifying the Fourth Protocol laying down the conditions relating to fishing provided for in the Agreement on fisheries between the European Economic Community, on the one hand, and the Government of Denmark and the Home Rule Government of Greenland, on the other, ("the modifying Protocol"), is hereby approved on behalf of the Community.

The text of the modifying Protocol is attached to this Regulation.

Article 2

The Commission may conclude an administrative arrangement with the competent authority of Greenland in order to adapt periodically the rates of licence fees, in accordance with Article 11 (5) of the Fourth Protocol.

Article 3

1. When there is an under-utilisation of the fishing opportunities realised in the framework of the quota and licences allocated to a Member State in waters under the sovereignty or jurisdiction of Greenland, without prejudice to the competences attributed to the Member States by Article 20 (5) of Regulation No 2371/2002, the Commission may reallocate for the fishing campaign in question, the non-utilised fishing opportunities to vessels of another Member State, who makes a request for such reallocation.

2. The transfer of fishing opportunities of a Member State to another Member State, as provided for in paragraph 1, shall not prejudice future allocations of fishing opportunities amongst the Member States.

Article 4

Owners of Community vessels who receive a licence for a Community vessel authorised to fish in waters under the sovereignty or jurisdiction of Greenland shall pay a licence fee in accordance with Article 11(5) of the Fourth Protocol.

The rules for the implementation of this Article, including the licence application and issuing formalities, shall be subject to the procedure provided for in Article 30 of Council Regulation (EC) No 2371/2002 [6].

[6]  OJ L 358, 31.12.2002, p. 59

Article 5

The President of the Council is hereby authorised to designate the persons empowered to sign the modifying Protocol in order to bind the Community.

Article 6

This Regulation shall enter into force on the seventh day following that of its publication in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels,

For the Council

The President

PROTOCOL MODIFYING THE FOURTH PROTOCOL

laying down the conditions relating to fishing provided for in the Agreement on fisheries between the European Economic Community, on the one hand, and the Government of Denmark and the Local Government of Greenland, on the other

Further to the Joint Committee meeting of 16-18 June 2003, the Fourth Protocol is modified as follows, with effect from 1 January 2004:

I. Article 1 is replaced by the following text:

"Article 1

1. This Protocol shall apply to fishing activities from 1 January 2001 to 31 December 2006.

2. The quotas referred to in Article 2 of the Agreement shall be fixed each year in the light of available scientific information. They shall be calculated as the remainder of Greenland's total allowable catches after subtraction of the quantities referred to in the first paragraph of Article 7 of the Agreement and indicated in Article 2, but shall not exceed the following quantities:

>TABLE POSITION>

3. The quota for shrimp in East Greenland may be fished in areas West of Greenland provided that arrangements for quota transfers between shipowners from Greenland and the European Community have been established on a company-to-company basis. The Greenland Home Rule Government shall undertake to facilitate such arrangements. The transfers of quotas can only take place within a maximum of 2,000 tonnes annually in areas of West Greenland. The fishery carried out by the Community vessels shall take place on the same conditions as laid down in the license issued to the Greenlandic shipowner.

4. Authorisations for experimental fisheries will be made available for a trial period of maximum six month each, in accordance with Article 9 and Annex V.

5. When the Parties conclude that the experimental campaigns have achieved positive results, the Greenland Home Rule Government will allocate 50% of the fishing opportunities on the new species to the Community fleet, until the end of this Protocol. This, with a corresponding increase in the part of the financial compensation referred to in Article 11(2)."

II. Article 2 is replaced by the following text:

"Article 2

The quantities referred to in the first paragraph of article 7 of the Agreement are hereby set at the following levels each year:

(tonnes)

>TABLE POSITION>

"

III. Article 3 is deleted.

IV. Article 9 is replaced by the following text:

"Article 9

The Parties shall promote the conduct of experimental fisheries on, inter alia, deep sea species, cephalopods, clams and capelin (Western stock) in Greenland waters. To this end, they shall hold consultations whenever one of the Parties so requests and determine, on a case-by-case basis, relevant species, conditions and other parameters. The Parties shall implement the experimental fishery in accordance with Annex V."

V. Article 11 is replaced by the following text:

"Article 11

1. The financial compensation referred to in Article 6 of the Agreement shall, during the period of validity of this Protocol, be fixed at 42,820,000 Euro (EUR) payable annually at the beginning of each fishing year.

2. The part of the financial compensation representing 31,760,679 Euro (EUR) is considered to be the amount in return for fishing possibilities. That amount shall be adjusted during the course of each fishing year where any supplementary quota are allocated to the Community in excess of the quota quantities referred to in the table in Article 1. The adjustment shall be calculated on the basis of the market prices of the different species for which the supplementary quota are allocated.

3. Greenland shall make available to the Community a quantity of 20,000 tonnes of cod equivalents, which the Community may use for the purposes of acquiring supplementary catch possibilities. The adjusted compensation referred to in paragraph 2 may consist of up to 50% of these cod equivalents.

4. The procedure to be followed as regards the allocation of supplementary catch possibilities under Article 8 of the Agreement is set out in Annex III.

5. The financial contribution deriving from the direct payment of licences by the vessels owners will be deducted from the Community global compensation as set out in Article 11 (1). The licence fees per species and per tonnes allocated to vessels shall be set in accordance with Annex VI. The implementing technical modalities for the attribution of fisheries licences shall be agreed by an administrative arrangement between the Parties.

6. Greenland shall implement a budgetary support to the fisheries sector for the three remaining years of the Protocol in accordance with the policy commitments undertaken in the Greenland Prime Ministers letter to President Prodi of 12 June 2003. The orientations on strategy and objectives of the reform of the Greenland fisheries policy, as defined and programmed independently and autonomously by the Greenland Home Rule Government, as well as the technical details concerning the definition, the implementation and the monitoring of the budget support to the fisheries sector in Greenland shall be determined in an administrative arrangement between Greenland and the European Community. Greenland shall affect 500,000 Euro (EUR) to increase the budget of the Greenland Institute of Natural Resources."

VI. Article 14 is replaced by the following text:

"Article 14

No later than 30 June 2005 the Parties shall assess the implementation of this Protocol in view to prepare the negotiations for the next Agreement. "

VII. Annex I is deleted.

VIII. Annex V is added, as follows:

"Annex V

Details of implementation for experimental fisheries

The Home Rule Government of Greenland and the European Commission shall jointly decide on the European Community operators, the most suitable time as well as the arrangements for the implementation of experimental fisheries. In order to facilitate the exploratory work of the vessels, the Home Rule Government of Greenland (through the Greenland Institute of Natural resources) shall provide existing scientific and other basic information.

The Greenland fishing industry shall be closely associated (co-ordination and dialogue on the arrangements for experimental fisheries).

Length of the campaigns: maximum six month and minimum three month, unless changed by the parties in agreement.

Selection of candidates for the implementation of the experimental campaigns:

The European Commission shall communicate to the Greenland authorities the requests for licences for experimental fishery. A technical dossier specifying:

- the technical characteristics of the vessel;

- the level of expertise on the fishery of the ship officers;

- the proposal for the technical parameters of the campaign (length , gear, exploration regions etc. )

The Home Rule Government of Greenland will organise a technical dialogue between the administrations of the Greenland Government and the European Commission with the ship-owners concerned, if it considers this necessary.

Before the beginning of the campaign, the vessel owners shall submit to the Greenland authorities and to the European Commission:

- a declaration of the catches already on board;

- the technical characteristics of the fishing gear to be used for the campaign;

- an assurance that they comply with the Greenland Regulations for fisheries;

During the campaign at sea, the owners of the vessels concerned shall:

- provide the Greenland Institute of Natural Resources, the Greenland authorities and the European Commission with a weekly report on catches per day and by haul, including the description of the campaign's technical parameters (position, depth, date and time, catches and other observations or comments);

- communicate the vessel's position, speed and heading by VMS;

- ensure the presence on board of one Greenlandic scientific observer or an observer chosen by the Greenland authorities. The role of the observer will be to gather scientific information from the catches, as well as to sample the catches. The observer shall be treated as a ship's officer and the vessel-owner shall cover the living costs of the observer during his stay on the vessel. The decision on the observers time on board, the length of his stay, the boarding and landing harbour will be fixed in agreement with the Greenland authorities. Unless there is agreement between the parties to the contrary, the vessel will never be obliged to put into harbour more than once per two month;

- submit the vessels to inspection on leaving Greenland's waters if the Greenland authorities so request;

- ensure that they comply with the Greenland Regulations for fisheries;

The catches including the by-catches obtained during the scientific campaign remain the property of the vessel-owner.

The Greenland authorities will designate a contact person responsible for addressing any unforeseen problems that might hinder the development of the experimental fisheries."

IX. Annex VI is added as follows:

"Annex VI

Licence fees

The following rates [7] shall apply:

[7]  The rates may be adapted periodically by administrative arrangement between the Parties, taking into account the market and fisheries situation.

Species  //  EUR. Per tonne

Redfish  //  52

Greenland Halibut  //  85

Shrimp   //  74

Atlantic Halibut  //  199

Capelin  //  7

Roundnose Grenadier  //  10

Snowcrab  //  122

LEGISLATIVE FINANCIAL STATEMENT

Policy area(s): Fisheries

Activity(ies): International fisheries

Title of action: revision of the Fourth protocol laying down the conditions provided for in the agreement on fisheries between the European Economic Community on the one hand and the Government of Denmark and the local Government of Greenland , on the other.

1. BUDGET LINE(S) + HEADING(S)

B7-8000(110301) : International fishery agreements

2. OVERALL FIGURES

2.1. Total allocation for action (Part B): min. 119.685.065 EUR - max 128.519.000 EUR

2.2. Period of application: 1. 1. 2004 - 31. 12. 2006

2.3. Overall multiannual estimate on expenditure:

a) Schedule of commitment appropriations/payment appropriations (financial intervention) (see point 6.1.1)

EUR million (to 3rd decimal place)

>TABLE POSITION>

b) Technical and administrative assistance and support expenditure(see point 6.1.2)

>TABLE POSITION>

>TABLE POSITION>

c) Overall financial impact of human resources and other administrative expenditure (see points 7.2 and 7.3)

>TABLE POSITION>

>TABLE POSITION>

2.4. Compatibility with the financial programming and the financial perspective

|X| Proposal compatible with the existing financial programming

| | This proposal will entail reprogramming of the relevant heading in the financial perspective

| | This may entail application of the provisions of the Interinstitutional Agreement.

2.5. Financial impact on revenue:

|X| No financial implications (involves technical aspects regarding implementation of a measure)

OR

| | Financial impact - the effect on revenue is as follows:

Note: All details and observations pertaining to the method of calculating the effect on revenue should be included in a separate annex.

>TABLE POSITION>

3. BUDGET CHARACTERISTICS

>TABLE POSITION>

4. LEGAL BASIS

Article 37 of the Treaty, in conjunction with Article 300(2) and (3) first subprargraph.

EC/Greenland Agreement (OJ L29, 1.2.1985, p.9)

5. DESCRIPTION AND GROUNDS

5.1. Need for Community intervention

5.1.1. Objectives pursued

In accordance with Article 14 of the Fishery agreement between the EC and The Government of Denmark and the Local Government of Greenland , and as specified in the Article 14 of the Fourth Protocol (OJ L 209, 2.8.2001) , a midterm review had to be completed by the 30 June 2003. This in order to review and assess the adequacy of the Protocol and if necessary propose amendments.

The purpose of the revision of the Fourth Protocol is to increase the adequacy of the Protocol, to eliminate the high level of "paper-fish", to ensure a better balance between fishing possibilities and the financial compensation, as well as to increase the transparency and accountability as requested by the Council, Court of Auditors and the European Parliament.

5.1.2. Measures taken in connection with ex ante evaluation

Further to the Communication from the Commission to the Council and the European Parliament on the Midterm review of the Fourth Fisheries protocol between the EC and Greenland COM(2002)697 of 4.12.2002 and as requested by the Council Conclusions of 24 February 2003, the Commission carried out a financial evaluation of the Protocol. This evaluation was transmitted to the Council and Parliament in April 2003, and was the basis for the amendments brought to the Fourth Protocol.

The main amendments are the following:

* Deletion of paper-fish: change in fishing quotas-: The quotas as laid down in Art. 1 (2) in the Revised Fourth Protocol have been reduced compared to the Fourth Protocol in order to fix fishing opportunities, which are really available, of interest to the Community fleet and in line with scientific advice. This is the case with cod (from 2,000 t to pm), redfish (from 31,000 t to 25,500 t), catfish (deleted), blue whiting (deleted), and capelin (deletion of western quota of 25,000 t). At the same time, the Community has the option to fix higher quotas, in most cases up to the levels of the Fourth Protocol, for cod and redfish, in the event of stock recovery with an additional financial compensation, as set out in Article 11(2).

* New or increased fishing opportunities: The new fishing opportunities include quotas on the Western shrimp stock (4,000 t). The increased fishing opportunities include the Atlantic halibut (800 t), the Greenland Halibut (4 200 t) and the introduction of a quota of snowcrab (1 000 t). Furthermore, a quota for all by- catches (2,000) has also been introduced.

* Yearly revision of the fishing possibilities: In light of scientific advice, a yearly revision may be operated in the Article 1 (2) allocated fishing possibilities.

* Experimental fisheries: The article on the promotion of experimental fisheries (Art. 9), has been modified to introduce cephalopods and clams. An Annex V has been introduced, detailing the modalities for experimental fisheries and Article 1 (5) specifies, that in the case of success of the experimental campaigns, the Community will be granted 50% of the fishing possibilities of the new species.

* Introduction of licence fees: Payment of licences is introduced for all fishery, with rates based on 3 % of landing prices. The rates may be adapted periodically by administrative arrangement between the Parties, taking into account the market and fisheries situation. This is a completely new and key element which should ensure the sound management of the resources, the sound management of Community finances, as well as the coherence with the CFP and the commitment to progressively increase the vessels owners participation. The financial contribution deriving from the direct payment of licences by the vessels owners will be deducted from the Community compensation.

* Introduction of transfer of fishing possibilities : in order to optimise the use of fishing possibilities, the present proposal foresees a mechanism that permits the Commission to temporarily transfer the fishing possibilities during the year in progress that are not utilised by one Member State benefiting from a fishing quota to the catch quota of another Member State, on demand. This transfer, considering it is a temporary nature, does not pre-judge the allocation and future fishing possibilities between member States and respects the principle of relative stability.

* Introduction of budget support: The budget support for the structural reform of the fisheries policy and sector is a new and innovative element, which shows the desire of the two Parties to contribute to the development of sustainable and responsible fisheries. Furthermore, the amount comprises a specific amount of EUR 500,000 for increasing the scientific capacity and budget of the Greenland Institute for Natural Resources.

* Review clause: The review clause has been updated in order to assess the implementation of the revised Protocol in view to prepare the negotiations for the next agreement. The review shall take place not later than 30 June 2005.

* In addition to the direct sale value of catches, the Agreement continues to offer the following advantages:

- the multiplier effect on jobs for the ports, auctions, processing factories, shipyards and service industries in the regions concerned;

- these jobs are created in regions where there are few alternatives to fishing;

- supply to the Community market in fishery products;

- the importance of relations with Greenland, both in the fisheries sector and in the political sphere and the pivotal role of the Fisheries Agreement with Greenland for the proper functioning of the Community's fisheries agreements with other third countries. It must also be noted that the Parties agreed that Greenland shall not receive any financial aid by virtue of its OCT status during the period of application of the 4th Protocol unless agreed otherwise after the review required under art. 14 of the Protocol.

5.1.3. Measures taken following ex post evaluation

A thorough evaluation is foreseen in order to assess the implementation of the revised Protocol in view to prepare the negotiations for the next agreement. The review shall take place not later than 30 June 2005.

5.2. Actions envisaged and arrangements for budget intervention

In accordance with the Fishery Agreement, the Local Government of Greenland will continue to be paid EUR42.82 million per annum, as set out in the Fourth Protocol. However, the Revised Protocol introduces two main modifications:

1. The compensation for the fishing possibilities is assessed to be of a value of EUR31,760,679, in light of the modified fishing possibilities. The Fourth Protocol had an estimated value of the fishing possibilities of EUR28 million. The value is calculated on the basis of landing prices (average 2002). The remainder of the annual compensation, EUR11,059,321 per annum, will cover a budget support for the structural reform of the fisheries policy in Greenland, as presented with the Council Decision in the form of an Exchange of Letters for the provisional application of the Protocol modifying the Fourth Protocol.

2. With the introduction of licence fees (Article 2 of the Regulation, Article 11(5) and Annex VI of the Protocol), there will be a positive financial impact in form of a reduction of the Community budget in the range of EUR0 to EUR2,944,645. The table below shows the amount of licence fees possible in the event of full utilisation of the fishing possibilities of the Revised Protocol [8]:

[8]  This does not include the fishing possibilities for transfers to Norway, Iceland and Feroes

>TABLE POSITION>

The amount will depend on the rate of utilisation of the fishing possibilities, as well as the final level of the fees [9], which will be finally determined by administrative arrangement between the Commission and the Greenland Authorities. The financial contribution deriving from the direct payment of licences by the vessels owners will be deducted from the Community compensation.

[9]  Which currently is set as 3% of landing prices of each species.

5.3. Methods of implementation

Implementation of the Protocol falls exclusively to the Commission, which for this purpose will use officials in Brussels.

6. FINANCIAL IMPACT

6.1. Total financial impact on Part B - (over the entire programming period)

6.1.1. Financial intervention

Commitments in EUR million (to the 3rd decimal place)

>TABLE POSITION>

>TABLE POSITION>

6.2. Calculation of costs by measure envisaged in Part B (over the entire programming period)

Commitments in EUR million (to the 3rd decimal place)

>TABLE POSITION>

7. IMPACT ON STAFF AND ADMINISTRATIVE EXPENDITURE

7.1. Impact on human resources

>TABLE POSITION>

7.2 Overall financial impact of human resources

>TABLE POSITION>

The amounts are total expenditure for twelve months.

7.3. Other administrative expenditure deriving from the action

>TABLE POSITION>

The amounts are total expenditure for twelve months.

(1) Specify the type of committee and the group to which it belongs.

>TABLE POSITION>

8. FOLLOW-UP AND EVALUATION

8.1. Follow-up arrangements

With regards to the financial compensation for the fisheries component, a system of monitoring of the catches and the rate of utilisation of the fishing possibilities will be set up by Council Regulation on the transfer and licences.

With regards to the financial compensation for the budget support to the structural reform of the Greenland fisheries policy, the Greenland authorities have committed themselves to introduce a planning of reforms before the end of 2003. This will allow the contracting Parties to monitor on a yearly basis the implementation of the set indicators.

Furthermore, a meeting of the Joint Committee at the request of either party allows the Community and the Greenland authorities to consult on matters pertaining to implementation and operation of the agreement. Any disagreement on its interpretation or application is a matter for consultation.

8.2. Arrangements and schedule for the planned evaluation

Article 14 of the revised Protocol states that no later than 30.6.2005 the Parties shall assess the implementation of this Protocol in view to prepare the negotiations for the next agreement. This entails that before the renewal of the Agreement on 1 January 2007 the entire period covered by the Fourth Protocol (including the revised Protocol) will be assessed using indicators measuring direct results (catches, catch values), other outcomes (Protocol cost/catch value ratio) and results on the implementation of the Budget support for the structural reform of the fisheries policy. To ensure that fishing operations in the region are sustainable, an economic, social and environmental impact assessment will be made before any renewal of Protocols in the future.

9. ANTI-FRAUD MEASURES

Since a financial contribution is paid by the Community for services rendered (fishing opportunities and others) and neither the Agreement nor the Protocol have any specifications in this domain, it may be used by the authorities of Greenland as they see fit.

The Protocol foresees the implementation of a joint Committee to oversee the activities of temporary joint ventures and joint enterprises as described in art. 4.