OfficialJournaloftheEuropeanCommunities 31
NoL291/30 OfficialJournaloftheEuropeanCommunities 28.12.72
REGULATION (EEC)No2722/72OFTHECOUNCIL
of19December1972
onthefinancingbytheEAGGF,GuidanceSection,ofconversionprojectsin
thesaltcod-fishingindustry
THECOUNCIL OFTHEEUROPEAN COMMUNI­
TIES,
HavingregardtotheTreatyestablishingthe
EuropeanEconomicCommunity ,andin
particularArticle43thereof;
Havingregardtotheproposalfromthe
Commission ;
HavingregardtotheOpinionoftheEuropean
Parliament;
HavingregardtotheOpinionoftheEconomic
andSocialCommittee ;
WhereasArticle10(2)ofCouncilRegulation
(EEC)No2141/701of20October1970laying
downacommcnstructuralpolicyforthe
fishingindustrystatesthatcommonactionmay
bedecideduponinordertoattaintheobjectives
referredtoinparagraph1ofthatArticle,in
sofarastheyrelatetotheobjectivesset
outinArticle39(1)(a)oftheTreaty;whereas
suchactionmay,underArticle1(3)of
Regulation (EEC)No729/702onthefinancing
ofthecommonagriculturalpolicy,befinanced
bytheEuropear.AgriculturalGuidanceand
GuaranteeFund,GuidanceSection;
Whereasconvers:onprojectsarenecessaryin
thecod-fishingindustryinordertotakeinto
accounttheeconomiceffectsoftheimplement­
ationofthecommonpolicyforthefishing
industryandinparticularthetotalliftingof
thedutiesleviedonimportsofsaltcodfrom
thirdcountriesin:otheCommunity ;
Whereasjointactiontowardsconversionof
thesaltcod-fishingindustrymustfirstlychannel
thedevelopmentofproduction,processingand
marketingactivitiestowardsfishingforspecies
offishrequirec.bytheCommunityand
obtainingthebestreturnontheminaccordance
withCommunityneeds;whereasitisdesirable,inparticular,toencouragethesaltcod-fishing
industrytoundertakenotonlyconversion
aimedatbettersatisfyingthedemandforfish
whicharedeep-frozenonboardbutalso
conversiontofishingfortunny,aproduct
whichisparticularlyscarceintheCommunity ;
whereas,secondly,suchaprojectmustaimto
providetrainingandretrainingforfishermen
andshoreworkersaffectedbythestructural
conversion ;
Whereasitisnecessarythattheprojectswhich
theFundisaskedtoassistshouldsatisfy
generalcriteriaguaranteeingbothadequate
guidanceforthesaltcod-fishingindustryand
lastingeconomicbenefitsfromthestructural
improvementsplanned;whereasbuyersinall
theMemberStatesshouldbeabletoobtain
onthesameterms,suppliesofthefishery
productscaughtwiththeequipmentfinanced
bythefunds;
Whereasitisdesirabletorequire,notonly
thatinvestmentprogrammesdesignedtoreduce
thesaltcod-fishingfleetbecoordinated,but
alsothatsupplybeadequatelyconcentrated ;
whereas,moreover,detailedeconomicanalysis
oftheprojectswhichtheFundisaskedto
assistmustshowthatmaximumproductivity
isachievedbythevesselsorequipmentin
question;
Whereascertainminimumrequirementsmust
belaiddownfortrawlersandtunny-fishing
vesselsinordertoensurethattheyarecapable
ofworkingseaareassituatedfarfromthe
coastsoftheCommunity ;
WhereasaidfromtheFundamountingtoa
maximumof25%ofthetotalinvestments
wouldbeanappropriatecontributiontothese
investments ;
Whereasthiscontribution fromtheFundof
10-2millionunitsofaccountoveraperiodof
fiveyearswillenabletheproblemsofconverting
thesaltcod-fishingindustrytobesolved;1OJNoL236,27.10.1970,p.1.
2OJNoL94,28.4.1970,p.13.

32 OfficialJournaloftheEuropeanCommunities
HASADOPTED THISREGULATION :
TITLEI5.AidfromtheFundshallcoveronlythat
partoftheprojectrelatingtotheacquisition
oftheequipmentreferredtoinparagraph3.
PROJECTSFORTHECONVERSION OFTHESALT
COD-FISHING INDUSTRY
Article2
CHAPTERONE
Measuresforstructuralconversionofthesaltcod-fishing
industry
Article1TobeeligibleforaidfromtheFundeach
projectmustmeetallthefollowinggeneral
criteria:
(a)Itmustaimatanadaptationorreorientation
ofthesaltcod-fishingindustrymade
necessarybytheeconomicconsequences
oftheimplementation ofthecommonpolicy
forthefishingindustryordesignedtomeet
therequirements ofthispolicy.
(b)Itmustofferadequateguaranteesofthe
lastingeconomiceffectsofthestructural
improvementplanned.
(c)Itmustensurethatthecatchfromthe
equipmentprovidedismarketedinsucha
waythatallbuyersinMemberStateshave
freeaccesstoit.
Article31.Inthecontextofjointprojectsforthe
structuralimprovementofnon-industrial in­
shorefishingandofdeep-seafishing,andin
ordertofacilitatethestructuralconversionof
thesaltcod-fishingfleet,theEuropeanAgri­
culturalGuidanceandGuaranteeFund,
GuidanceSection,(hereinafterreferredtoas
'theFund'),shallparticipateinthefinancing
ofprojectsforthedevelopmentofproduction,
processingandmarketingactivitiesinthissector,
insofarassuchprojectscontributetothe
attainmentoftheobjectivesreferredtoin
Article10(1)ofRegulation (EEC)No2141/70.
2.'Saltcod-fishingfleet'shallmeandeep-sea
fishingvesselswhosecatchissalteddirectly
onboard(thevesselshavingbeencommis­
sionedexclusivelyorsubstantiallyforthat
purpose)andwhenlandedcomesunder
headingNo03.02oftheCommonCustoms
Tariff.
3.'Development ofproduction,processing
andmarketingactivities'shallmeanthepro­
visionofequipmentfor:
(a)fishingbyvesselsfittedwithapparatusfor
deep-freezingonboard,
(b)increasingthemarket-value ofthecatch
onboardbyfilletingoranyothermethod
ofpreparationorprocessingwhichguar­
anteesanoutletfortheproductsinline
withconsumptiontrendsintheMember
States,
(c)increasingthemarket-value offishery
productsbymeansofdrying-plantsaffected
bythedecreaseintheproductivecapacity
ofthecod-fishingfleetasaresultofthe
jointactionprovidedforinthisRegulation .
4.'Project'shallmeananypublic,semi­
publicorprivateinvestmentintendedwholly
orpartlytodeveloptheactivitiesreferredto
inparagraph3.ProjectsshallbeeligibleforaidfromtheFund,
fortheactivitiesmentionedinArticle1(3)(a),
onlyiftheyareimplementedunderajoint
programmeofinvestmentbymorethanone
recipientwhichreducestheproductivecapacity
ofthesaltcod-fishingfleetandwherethe
recipientsare,orundertaketobecome,in
respectofproductsobtainedbymeansof
equipmentfinancedbytheFund,membersof
anorganisationofproducersoffisheryproducts.
Theyshalljointhisorganisationatthelatestby
thetimetheequipmentisputintooperation.
Article4
GrantingoftheaidreferredtoinArticle1
shallbesubjecttosubmissionbytheapplicant
ofaneconomicanalysisoftheproject,giving
alltheinformationrequiredtoshowthatthe
equipmentforwhichaidfromtheFundis
requestedhasadequatecapacitytoensurethat
thefisheryproductsinquestionareproduced,
preserved,packagedorprocessedwithmaximum
productivity .

OfficialJournaloftheEuropeanCommunities 33
Article5
InordertobeeligibleforaidfromtheFund,
thevesselsreferredtoinArticle1(3)(a)must
satisfythefollowingminimumtechnicalre­
quirements :cod-fishingfleettoimprovetheirqualifications
withaviewtothenewtasksresultingfrom
theimplementation ofmeasuresforthere­
structuringofthissector,theMemberStates
shallgrantallowancesforattendingvocational
trainingcentres.
2.Theminimumconditionswhichthe
measuresreferredtoinparagraph1must
satisfyshallbeadoptedinaccordancewiththe
procedurelaiddowninArticle16ofthis
Regulation .(a)Trawlersmust:
—haveagrosstonnageofonethousand
fivehundredtonsminimum;
—befittedwithapparatusfordeep-freez­
ingfishatatemperatureof—40°Cor
lower.
(b)Inthecaseoftunny-fishing vesselsmust:'
—haveagrosstonnageofapproximately
600tonsminimum;
—usethepurseseinemethodoffishing;
—befittedwithelectronicfish-detection
apparatus;
—befittedwithrefrigerationapparatus
eitherfoepreservingfishinbrineat
—18°C,orfordeep-freezing ata
temperatureof—40°Corlower.TITLEII
GENERALANDFINANCIAL PROVISIONS
Article9
ThemeasureslaiddowninthisRegulationshall
togetherconstituteacommonmeasurewithin
themeaningofArticle6(1)ofRegulation (EEC)
No729/70.
Article6Article10
1.Thetime-scaleforattainingtheobjectives
ofthecommonmeasureshallbefiveyears.
2.ThetotalcosttobebornebytheFundin
respectofthecommonmeasureshallbe10-2
millionunitsofaccount.Insupportofeachrequestforaid,theMember
StateconcernedshallsubmittotheCommission
aneconomicanalysisdemonstrating thatfor
theprojectplannedtheamountoffishery
produceenvisagedisreasonableinthecontext
ofmarketingpossibilitiesatbothnationaland
Communitylevel,andthatthisisnotlikely
tochangeintheshortormediumterm.
CHAPTERONE
FinancialprovisionsrelatingtoTitleIChapterI Article7
Article11TheMemberSzatesshalltakethenecessary
stepstoensurecompliancewiththeprovisions
ofArticle2(c)andshallinformtheCommis­
sionthereof.1.AidfromtheFundshalltaketheformof
capitalsubsidies,grantedasalumpsumorin
instalments .
2.Foranygivenproject:CHAPTERTWO
Measuresforvocationaltrainingofworkersaffected
bythestructuralconversionofthesaltcod-fishing
industry
Article8—thecapitalsubsidiesgrantedbytheFund
shallnotexceed25%ofthetotalinvest­
ment;
—recipientsofaidfromtheFundmustcon­
tributeatleast50%ofthetotalinvestment;
3.Theeffectofaidfromthefundshallnot
besuchastodistorttheconditionsofcom­
petitioninanywaythatisincompatiblewith
theprincipleslaiddownintherelevantpro­
visionsoftheTreaty.1.Inordertoenablefishermenworkingin
thesaltcod-fishingindustryandpersons
employedindrying-plantsdirectlyaffectedby
thedecreasein:heproductivecapacityofthe

34 OfficialJournaloftheEuropeanCommunities
4.TheCommission shallensurethatthe
activitiesoftheFunddonotconflictwith
thoseoftheEuropeanInvestmentBankand
thoseoftheEuropeanSocialFund.
Article12
1.InordertoqualifyforaidfromtheFund,
theprojectmusthavebeenapprovedbythe
MemberStateonwhoseterritoryitistobe
carriedout.
2.TheMemberStateonwhoseterritorythe
projectistobecarriedoutshallparticipatein
financingtheproject.byitsChairman,eitheronhisowninitiativeor
attherequestofarepresentative ofaMember
State.
2.TheCommissionrepresentativeshallsub­
mitadraftofthemeasurestobeadopted.
TheCommitteeshalldeliveritsOpinionon
thesemeasureswithinatimelimitwhichthe
Chairmanmayfixaccordingtotheurgency
ofthematterssubmittedforconsideration .
AnOpinionshallbeadoptedbyatwelvevote
majority,thevotesoftheMemberStatesbeing
weightedaslaiddowninArticle148(2)ofthe
Treaty.TheChairmanshallnotvote.
3.TheCommissionshalladoptmeasures
whichshallapplyimmediately .However,if
thesemeasuresarenotinaccordancewiththe
OpinionoftheCommittee,theyshallforthwith
becommunicated totheCouncilbytheCom­
mission.InthateventtheCommissionmaydefer
applicationofthemeasuresfornotmorethan
onemonthfromthedateofsuchcommuni­
cation.
TheCouncil,actingaccordingtothevoting
procedurelaiddowninArticle43(2)ofthe
Treaty,mayadoptadifferentdecisionwithin
onemonth.Article13
TherecipientsofaidfromtheFundshallbe
thenaturalorlegalpersons,orgroupsofpersons
whoaretobefinallyresponsibleforthecost
ofcarryingouttheproject.
Article14
Article171.ApplicationsforaidfromtheFundshall
besubmittedtotheCommissionathalf-yearly
intervals,by1Julyorby1January.The
Commissionshallreachadecisionduringthe
sixmonthsfollowingtheclosuredatefor
applications .
2.ApplicationsforaidfromtheFundmust
bemadethroughtheMemberStateconcerned .
3.AllapplicationsforaidfromtheFund
mustbeaccompanied byawrittenundertaking
fromtheapplicanttorespecttheobligation
laiddowninArticle2(c)ofthisRegulation.Whenfundscannotbeallocatedtoaproject
becausetheresourcesavailablearenotsufficient,
applicationstotheCommissionmaybedeferred
bytheMemberStateconcerned,withtheagree­
mentoftheapplicants,untilthefollowingperiod
forapplications .Applicationsfordeferment
mustbesubmittedtotheCommission within
thirtydaysofthedateonwhichtheMember
Stateisnotifiedoftheresultofthedecision
referredtoinArticle15(2).
Article15
Article18 1.ThedecisiontograntaidfromtheFund
shallbetakeninaccordancewiththeprocedure
laiddowninArticle16.TheCommission shall
giveitsdecisionafterconsultingtheFund
Committeeonthefinancialaspects.
2.Thedecisionshallbecommunicated to
theMemberStateconcernedandtothere­
cipients.1.AidfromtheFundshallbechannelled
throughbodiesdesignatedforthispurposeby
theMemberStateconcerned .
2.TheMemberStatesshallinformthe
Commissionofcasesoffailuretorespectthe
undertakinggivenunderArticle14(3).
Moreover,throughouttheperiodforwhich
aidisgrantedbytheFund,theauthorityor
bodydesignatedforthepurposebythe
MemberStateconcernedshallsubmittothe
Commission ,atthelatter'srequest,allsup­Article16
1.Wheretheprocedurelaiddowninthis
Articleisused,themattershallbereferredto
theStandingCommitteefortheFishingIndustry

35 OfficialJournaloftheEuropeanCommunities
2.Applicationsfortherefundofexpenses
incurredbyMemberStatesineachcalendar
yearshallbepresentedtotheCommission
before1Julyofthefollowingyear.portingdocuments,oranyotherdocuments
showingthatth^financialorotherconditions
imposedinthecaseofeachprojectarebeing
fulfilled.
TheCommissionmay,whennecessary,carry
outinspectionoithespot.
Article19CHAPTERTHREE
Generalprovisions
Article21
TheprovisionsofthisRegulationshallapply
toequipmentreferredtoinArticle1(3)(a)
andwhoseconstructionwasbegunonorafter
1June1971onconditionthatitwasnotput
intoservicebeforethesubmissionofappli­
cationsforaid.1.Whereaprojectwhichisthesubjectof
adecisiontograntaidisnotcarriedoutas
planned,orwherecertainconditionsarenot
met,aidfromtheFundmaybesuspended,
reducedorcancelled,followingtheprocedure
laiddowninArticle15,theCommissionmaking
itsdecisionafterconsultingtheFundCom­
mitteeonthefinancialaspects.
TheCommission shallrecoverunwarranted
payments .
2.ThedecisicnoftheCommission shallbe
notifiedtotheMemberStateconcernedand
totherecipientsoftheaid.Article22
TheprocedurelaiddowninRegulation (EEC)
No729/70shallbefollowedindecidingupon:
—theinformationwhichmustbegiveninthe
applicationsreferredtoinArticles13and19,
andtheforminwhichapplicationsmustbe
presented;
—thedetailedrulesofapplicationofArticles
17and19.CHAPTERTWO
FinancialprovisionsrelatingtoTitleIChapterII
Article20
Article231.TheFundshallrepaytoMemberStates
25%oftheamo-intsactuallydisbursedunder
Article7.Theexpendituremayamountto
1500unitsofaccountperfishermanand/or
employeeinthedryingplantswhohasattended
afullcourseofvocationaltraining.ThisRegulationshallenterintoforceonthe
thirddayfollowingitspublicationinthe
OfficialJournaloftheEuropeanCommunities .
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicableinall
MemberStates.
DoneatBrussels,19December1972.
FortheCouncil
ThePresident
T.WESTERTERP