Proposal for a COUNCIL REGULATION amending Regulation (EC) No 2792/1999 laying down the detailed rules and arrangements regarding Community structural assistance in the fisheries sector

(presented by the Commission)

EXPLANATORY MEMORANDUM

In a recent communication to the Council [1], the Commission regretted the inadequacy of the existing measures to contain fishing effort under the fourth generation of multiannual guidance programmes (MAGP IV).

[1] Report from the Commission to the Council: Preparation for a mid term review of the multiannual guidance programmes (MAGP) COM (2000) 272 final.

Neither these regimes nor the TAC and quota regime were able to prevent the grave crises for certain stocks on the verge of collapse (cod and hake), for which specific urgent measures must now be adopted, nor were they able to resolve the problem of excessive capacity in the Community fishing fleet. This situation, which can be considered a weakness of the CFP, must be rectified by courageous and effective measures. This excess capacity is a threat both to fish stocks and to other forms of marine life affected as by-catch, and is not compatible with sustainable development.

These measures, other than those required in the context of cod and hake recovery [2], can be incorporated into the reform of the whole of the CFP, as envisaged by the Green Paper on the future of the CFP [3]. This will permit a consultation with the Member States and interested parties in order to define, for the future, a more effective policy for the fleet in relation to the rest of the CFP.

[2] Measures for the recovery of stocks of cod and northern hake will be the subject of separate proposals of the Commission to the Council.

[3] COM (2001) 135 final.

This approach will, however, require a prolongation of the current multiannual guidance programmes until 31 December 2002 in order to allow time to reflect on the future of the future fleet policy.

The Commission has therefore prepared a proposal for the prolongation by one year, that is until 31 December 2002, of the Decision currently in force [4], thus also prolonging by one year the MAGP IV, as well as a proposal for modifications to certain provisions of the Financial Instrument for Fisheries Guidance (FIFG) [5].

[4] Council Decision 97/413/EC of 26 June 1997 concerning the objectives and detailed rules for restructuring the Community fisheries sector for the period from 1 January 1997 to 31 December 2001 with a view to achieving a balance on a sustainable basis between resources and their exploitation. OJ L 175, 3.7.1997, p. 27.

[5] Council Regulation (EC) No 2792/1999 of 17 December 1999 laying down the detailed rules and arrangements regarding Community structural assistance in the fisheries sector. OJ L 337, 30.12.1999, p. 10.

Given the Commission's concern that the objectives of the MAGP IV are too modest, any prolongation should at least be associated with measures to make them more effective. The attached proposal therefore removes the possibilities that currently exist under Articles 3 and 4 of Council Decision 97/413/EC to increase the MAGP objectives on the grounds of safety. All new vessels should be constructed to a certain minimum standard of safety, and the capacity to build these new vessels could be found from within the existing capacity objectives.

For the same reason, the proposed modification of the FIFG Regulation also introduces new constraints, namely:

* The granting of aid for constructions and modernisation would be made conditional upon the respect of the MAGP objectives in all segments, not only in the segment concerned.

* The provisions of Article 6 allowing an increase in the MAGP objectives on the grounds of safety, navigation, hygiene, product quality, and working conditions, have been deleted. The reasons for this are the same as those previously described : new vessels should be constructed to a minimum standard and the capacity to build the new vessels should be found from within the existing capacity objectives.

* It is proposed to prohibit the granting of aid for constructions and modernisation in any segment where activity reductions are being implemented as a means of achieving the MAGP objectives. If the profitability of the fleet is such that decommissioning grants are not sufficiently attractive then there is no justification to use public aid to renew the vessels in the segment.

* Fishing under flags of convenience is an increasing concern for the European Union. Article 19 of the International Plan of Action on Illegal, Unreported and Unregulated Fishing (IUU) says: "States shall discourage their nationals from flagging vessels under the jurisdiction of a State which does not meet its flag State responsibilities". The European Community has agreed to this Plan. Although Article 7(3)(b)(i) of Regulation (EC) No 2792/1999 already provides for restrictions on IUU, the Commission finds it appropriate to reinforce them. For this reason the proposed amendment to the FIFG Regulation prohibits the granting of public aid for the transfer of vessels to third countries that have been identified by the relevant fisheries organisations as countries that permit fishing "in a manner which jeopardises the effectiveness of international conservation measures".

A final change to the FIFG Regulation concerns Article 16.2, where the possibility of granting financial compensation to cover the costs of technical restrictions is extended to such restrictions imposed by any Community legislation, not just those imposed by Council Decision.

2001/0129 (CNS)

Proposal for a COUNCIL REGULATION amending Regulation (EC) No 2792/1999 laying down the detailed rules and arrangements regarding Community structural assistance in the fisheries sector

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Articles 36 and 37 thereof,

Having regard to the proposal from the Commission [6],

[6] OJ C ...

Having regard to the opinion of the European Parliament [7],

[7] OJ C ...

Having regard to the opinion of the Economic and Social Committee [8],

[8] OJ C ...

Whereas:

(1) Council Regulation (EC) No 2792/1999 [9] contains in particular provisions connected with the implementation of the multiannual guidance programmes for the fishing fleets.

[9] OJ L 337, 30.12.1999, p. 10.

(2) Council Decision 2001/.../EC [10] amends several provisions of Council decision 97/413/EC of 26 June 1997 concerning the objectives and detailed rules for restructuring the Community fisheries sector for the period from 1 January 1997 to 31 December 2001 with a view to achieving a balance on a sustainable basis between resources and their exploitation [11]. In particular, it extends its period of validity until 31 December 2002.

[10] OJ L ...

[11] OJ L 175, 3.7.1997, p. 27.

(3) The provisions of Regulation (EC) No 2792/1999 concerning public aid for the renewal and modernisation of the fleet should be strengthened in order to ensure that fishing effort does not increase, in particular by requiring that fishing effort objectives be met in all segments of the fleet before aid may be granted, and that no aid be granted where such objectives have been met by a reduction in activity rather than capacity.

(4) Public aid should not be made available for the permanent transfer of fishing vessels to certain third countries that have been identified by the relevant regional fisheries organisations as countries that permit fishing in a manner which jeopardises the effectiveness of international conservation measures.

(5) Regulation (EC) No 2792/1999 should therefore be amended accordingly,

HAS ADOPTED THIS REGULATION:

Article 1

Regulation (EC) No 2792/1999 is amended as follows:

(1) In Article 4, paragraph 3, "1 May 2001" is replaced by "1 May 2002".

(2) In Article 6, paragraph 2 is deleted.

(3) In Article 7, paragraph 3, point b), the following point is inserted:

"iv) if the third country to which the vessel is to be transferred is not a Contracting or Co-operating Party to relevant regional fisheries organisations, that country has not been identified by such organisations as one which permits fishing in a manner which jeopardises the effectiveness of international conservation measures;".

(4) In Article 9 paragraph 1 is replaced by the following:

"1. Without prejudice to the conditions laid down in the second subparagraph of Article 3 (3), public aid for fleet renewal and modernisation shall be granted only on the following conditions and those set out in Article 6 and Annex III and provided that the annual objectives in all the segments of the multiannual guidance programme are respected:

a) public aid can be granted only for vessels belonging to segments for which the annual objectives of the multiannual guidance programme have been achieved only by a reduction in capacity and not by a reduction in activity;

b) where the annual objectives for the segments concerned are respected, Member States must ensure that during the programming period from 2000 to 2006 the entry of new capacity with public aid is compensated by the withdrawal of a capacity without public aid which is at least equal to the new capacity introduced in the segments concerned, taken in aggregate and in terms of both tonnage and power;

c) public aid may also be granted for the equipping or modernising of vessels where this does not concern capacity measured in terms of either tonnage or power.

The Council shall, acting in accordance with the procedure laid down in Article 37 of the Treaty, decide by 31 December 2002 on any necessary adjustments to be applied as from 1 January 2003 to the provisions of this paragraph.".

(5) In Article 10, paragraph 1, point d), the words "overall annual objectives" are replaced by "annual objectives in all the segments";

(6) In Article 16, paragraph 2, the words "where a Council Decision imposes technical restrictions" are replaced by the words "where Community legislation imposes technical restrictions".

Article 2

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

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

Done at Brussels,

For the Council

The President