COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 9.06.1995 
COM(95) 243 final 
95/0142 (CNS) 
Proposal for a 
COUNCIL DECISION 
on a Community financial contribution towards certain expenditures incurred by the 
Member States in implementing the monitoring and control system applicable 
to the common fisheries policy 
(presented by the Commission) 
REPORT FROM THE COMMISSION TO THE COUNCIL 
AND THE EUROPEAN PARLIAMENT 
on the Community's financial contribution towards expenditure incurred by 
Member States for the purpose of ensuring compliance with 
the common fisheries policy 

EXPLANATORY MEMORANDUM 
The common fisheries policy (CFP) includes a general and integrated monitoring 
system. Each Member State is responsible for monitoring fishing activities on 
its territory and in the areas of sea over which it has sovereignty or jurisdiction. 
Each Member State has appointed authorities to carry out this monitoring in line 
with the applicable common rules} Given that this monitoring is of a nature that 
goes beyond the protection of purely national interests and that the investment 
necessary to develop the appropriate equipment for monitoring and surveillance, 
in particular seagoing and airborne equipment, has in some cases exceeded the 
financing available under national budgets, the Council has been making a 
growing financial contribution since 1978 to the expenditure incurred by the 
Member States. After an intermediate stage, the support has been organized 
on the basis of Council Decision 89/631/EEC of 27 November 1989 on a 
Community financial contribution towards expenditure incurred by Member 
States for the purpose of ensuring compliance with the Community system for 
the conservation and management of fishery resources1. This Decision has 
covered the period from 1991 to 1995 and has enabled the Community to 
contribute between 35% and 50% towards the expenditure incurred by the 
Member States. 
The Council has undertaken to adopt before 30 June 1995, on the basis of a 
Commission report, the provisions for Community participation that could apply 
,from 1 January 1996. When the new inspection and monitoring rules were 
adopted at the end of 1993, the Council reinforced this undertaking by 
emphasizing the need also to support the new elements in these arrangements. 
OJ No L 364, 14.12.1989, p. 64. 
A 
The objective of the draft Council Decision on a Community financial 
contribution to certain expenditure incurred by Member States for the 
implementation of the monitoring system applicabie to the common fisheries 
poiicy, drawn up on the basis of a Commission report, is to "meet the 
Commission's obligation laid down in Decision 89/631 /EEC, while taking 
account of the changing context. 
The draft Commission report on the Community financial contribution towards 
expenditures incurred by Member States to ensure compliance with the 
common fisheries policy falls into three sections, namely a report on the 
application of Decision 89/631/EEC, an analysis of the context in which a new 
Decision would be applied and proposals for the content of such a Decision. 
The first section gives a factual report and a summing-up. The latter concludes 
that Community's financial participation has made major improvements in 
equipment possible, as a result of which inspections have been stepped up, but 
that this has not sufficed to significantly reduce the scale of fraud. 
The second section first reviews all the Decisions adopted since 1989 and 
highlights the features that define the new regulatory framework. The latter has 
been profoundly altered and expanded by the extension of the new basic 
Regulation as well as by the consequences of the enlargement of the 
Community and by a set of specific decisions. The scope of inspection and 
monitoring has been extended geographically to fishing activities by Community 
vessels on the high seas - activities which are also subject to a set of 
international rules to ensure responsible fishing - and in the waters of third 
countries on the basis of fishing agreements concluded between those 
countries and the Union. Furthermore, inspection and monitoring has been 
extended to cover all the components of the CFP, in particular those relating to 
the "market" and "structures" aspects. To this will be added surveillance over 
the fishing effort deployed, which will make it possible to complete the system 
of monitoring inputs. The second section goes on to analyse the conditions of 
effective controls. It argues that a system of human and technical resources 
needs to be set up and organized to achieve the necessary synergies in order 
to serve a strategy targeted at the sensitive areas of monitoring. 
The third and finai section of the report demonstrates the need for a further 
financial solidarity measure following on from Decision 89/631/EEC. It proposes 
guidelines, a wider and better defined field of application and detailed rules 
adapted to the new approach, as well as an assessment of budget needs to 
extend the Community's financial contribution to Member State expenditure 
and improve its effectiveness, taking account of the changing context. 
The emphasis is on the fact that needs are increasing and the scope for 
intervention needs to be expanded. In particular, technological developments 
such as the tracking of vessels by satellite and computer networking must be 
accelerated. On the other hand, firmer guarantees regarding effectiveness and 
transparency must be obtained from the Member States. 
The draft Council Decision formalizes the report's conclusions on the future 
Community financial contribution to expenditure incurred by Member States. In 
addition to the contribution to investment expenditure, it is now planned to 
make the financing of integrated projects possible from the beginning, in 
contrast to the previous Decision; which needed to be amended to allow the 
financing of pilot projects for the continuous tracking of fishing vessels by 
satellite. The draft Decision also provides for support for a set of measures 
promoting training and staff exchanges. This will make it possible to act not 
only on technical and regulatory aspects, but also to raise awareness of the 
issues involved in inspection and monitoring among those working in the field 
and better to train and motivate the agents responsible for monitoring. The 
proposed Decision also takes account of the need to formalize the Council's 
undertakings to Ireland. The extended guarantees of effectiveness and 
transparency are laid down in specific clauses. 
In conclusion, taken together, all the measures and operations envisaged in the 
report and draft Decision reflect a more global and integrated approach to the 
management and monitoring of the CFP. This approach will help to make the 
fishing industry itself more responsible for management and will reinforce the 
role of the authorities both at Member State and Community level. 
PROPOSAL FOR A 
COUNCIL DECISION 9 5/0142 (CNS) 
on a Community financial contribution towards certain expenditures incurred by the 
Member States in implementing the monitoring and control system applicable to the 
common fisheries policy 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community, and in particular 
Article 43 thereof, 
Having regard to the proposal from the Commission1, 
Having regard to the opinion of the European Parliament2, 
Having regard to the opinion of the Economic and Social Committee3, 
Whereas Council Decision 89/631/EEC of 27 November 1989 on a Community financial 
contribution towards expenditure incurred by Member States for the purpose of ensuring 
compliance with the Community system for the conservation and management of fishery 
resources4, as last amended by Decision 94/207/EC5, and in particular Article 1(5) thereof, 
provides that the Council must adopt, before 30 June 1995, the provisions for Community 
financial assistance which could apply from 1 January 1996; 
Whereas the common fisheries policy, which guarantees the long-term existence of 
fishery stocks and thus employment in the sector, can achieve its objectives only if its 
rules are complied with and effectively controlled; 
OJNoC 
OJNoC 
OJNoC 
OJNoL364, 14.12.1989, p. 64. 
OJNoL 101,20.4.1994, p. 9. 
Whereas those objectives and rules are primarily established by Council Regulation (EEC) 
No 3760/92 of 20 December 1992 establishing a Community system for fisheries and 
aquaculture1 and by Council Regulation (EEC) No 2847/93 of 12 October 1993 
establishing a control system applicable to the common fisheries policy2; 
Whereas the Member States, by guaranteeing the implementation of the control system 
applicable to the common fisheries policy, are carrying out an obligation of Community 
interest; 
Whereas for some Member States the scale of the enforcement task is unrelated to budget 
capacity and may in certain cases constitute a disproportionate burden; 
Whereas it is therefore appropriate to provide for a contribution by the Community 
towards certain inspection and monitoring expenditures incurred by some Member States; 
Whereas Article 7 of Council Regulation (EEC) No 685/95 of 27 March 1995 on the 
management of fishing effort relating to certain Community fishing areas and resources3 
provides for additional Community financial support for Ireland, including support for 
operating expenditure, for the purposes of improving controls, with due regard for 
authorised Community practices and in the framework of financial guidelines; 
Whereas the total Community contribution should remain within the limits of a budget 
provision of ECU 41 million per annum for a period of five years (1996-2000) and the 
corresponding financial resources should be entered as annual appropriations in the 
general budget of the European Communities; 
OJNoL389, 31.12.1992, p. 1. 
OJNoL261, 20.10.1993, p. 1. 
OJNoL71, 31.3.1995, p. 5. 
C 
Whereas any such contribution should be conditional on the attainment, by the Member 
States which are beneficiaries, of a satisfactory standard of enforcement both at sea and 
on land; whereas the effectiveness of the enforcement must be made apparent in the 
annual report referred to in Article 35 of Council Regulation (EEC) No 2847/93, 
HAS ADOPTED THIS DECISION: 
Article 1 
1. The Community may, under the conditions set out in this Decision, contribute to 
the financing of certain expenditures by Member States relating to the 
implementation of the control system applicable to the common fisheries policy 
provided for in Regulation (EEC) No 2847/93, as amended by Regulation (EC) 
No ..../95. The following expenditure may be regarded as eligible: 
(a) the acquisition or modernisation of inspection and control equipment; 
(b) specific measures intended to improve the quality and effectiveness of the 
monitoring of fishing and related activities, the duration of which does not 
exceed two years. 
This expenditure must contribute to the mobilisation of monitoring facilities in 
accordance with Article 1(2) of Regulation (EEC) No 2847/93. 
2. The Community contribution shall relate to eligible expenditure incurred by 
Member States between 1 January 1996 and 31 December 2000. 
Eligible expenditure means the legal and financial undertakings entered into by 
national authorities within the above period. 
3. The maximum amount of Community expenditure deemed necessary to carry out 
the scheme introduced by this Decision shall be ECU 41 million per annum. 
i) ¥ 
4. The budgetary authority shall determine the available appropriations for each 
financial year. The Community contribution shall be granted within the limits of 
the appropriations allocated to that end in the Community budget. 
Article 2 
1. The financial contribution referred to in Article l(l)(a) shall cover investment 
expenditure relating to the acquisition or modernisation of: 
vessels, aircraft and land vehicles employed in the monitoring and control 
of fishing activities; 
systems for the detection and recording of fishing activities (including 
equipment installed on fishing vessels); 
systems for the recording, management and transmission of data relating 
to controls, including computer applications and software. 
The above expenditure shall be eligible on condition that it is actually used for 
the implementation of the control system referred to in Article 1. 
2. The financial contribution referred to in Article l(l)(b) shall cover eligible 
expenditure which is intended to increase the effectiveness of the application of 
the common fisheries policy and relates to measures and projects not exceeding 
two years in duration and having the following purposes: 
(a) the implementation of joint inspection programmes as referred to in Article 
2(4) of Regulation (EEC) No 2847/93; 
(b) experiments with and the introduction of new technologies to improve the 
monitoring of fishing and related activities; 
(c) the implementation of specific control programmes established by 
Community initiative and carried out by the Member State(s) concerned; 
(d) programmes to computerise the processing and exchange of data developed 
by joint agreement between several Member States and, where appropriate, 
the Commission; 
(e) other control measures of Community interest to be adopted at a later date. 
3. The financial contribution referred to in Article l(lXb) may also relate to eligible 
expenditure intended for the training of national officials connected with control 
activities, in particular in a Member State other than that in which they work. 
Detailed rules for the application of this paragraph will be adopted in accordance 
with Article 18 of Regulation (EEC) No 3760/92 of 20 December 1992 
establishing a Community system for fisheries and aquaculture. 
Article 3 
1. The Community financial contribution shall not exceed the following rates per 
Member State and per annum: 
35% of the amount of eligible expenditure referred to in Article 2(1); 
50% of the amount of eligible expenditure referred to in Article 2(2) and 
(3). 
2. However, notwithstanding paragraph 1, the Commission may decide to grant a 
higher rate, in particular in order to permit: 
the realisation of a joint measure by Member States and the Commission 
likely to remedy control difficulties affecting an area of special 
Community interest; 
experiments with and the introduction of new technologies to improve the 
monitoring of fishing and related activities. 
•9 
The annual budget allocation reserved for such measures shall be limited to 15% 
of the budget allocation. 
3. The Commission may, notwithstanding paragraph 1, decide to grant a higher rate 
in order to provide for additional financial support for Ireland for the purpose of 
improving controls, including support for the following operating expenditure: 
remuneration of national officials connected with monitoring and control 
activities and occupying additional posts created after 1 January 1996 
within the framework of a detailed programme, for a period not exceeding 
one year, and relating to the inspection and control of specific fisheries 
and zones; for the purposes of this paragraph, "remuneration" means the 
salaries, less taxes and charges levied in accordance with national 
legislation, of the officials concerned and the travel allowances necessary 
for the carrying out of their duties; 
costs relating to training and providing information for the national 
officials connected with control activities; 
costs incurred as a result of controls entrusted to surveillance companies. 
The financial support for operating expenditure for Ireland shall be granted up to 
a total amount of ECU 2 million per annum. 
Article 4 
1. Member States wishing to benefit from a financial contribution shall forward to 
the Commission, before 30 September 1995: 
(a) a five-year programme describing the controls which they intend to carry 
out during the period referred to in Article 1(2). The control programme 
must contain in particular the objectives of the proposed control and 
inspection measures, the envisaged operational measures and the 
anticipated results. 
AS> 
(b) a programme of forecast annual expenditure for the period referred to in 
Article 1(2) for which they wish to receive a financial contribution from 
the Community. 
2. Every Member State shall forward to the Commission, for the first time in 1996 
and each year thereafter, a report on progress achieved with regard to forecasts 
and to the need to adjust the control programme. That report shall form a special 
chapter in the report referred to in Article 35 of Regulation (EEC) No 2847/93. 
3. The information referred to in paragraphs 1 and 2 must enable the Commission 
to ensure adequate monitoring of the expenditure relating to the implementation 
of the control system applicable to the common fisheries policy. 
Article 5 
1. Member States wishing to benefit from a Community financial contribution 
towards the expenditure referred to in Article 2 shall forward to the Commission, 
on the first occasion before 30 September 1995 and subsequently before 31 May 
of each year, an application for funding for the following year containing the 
information specified in points 1, 2 and 3 of the Annex hereto. Applications 
received after those dates shall not be considered except in exceptional, duly 
justified cases. 
2. The application for funding must be drawn up within the framework of the 
programmes referred to in Article 4. 
M 
Article 6 
On the basis of information provided by the Member States, the Commission shall decide, 
for the first time before 31 December 1995 and subsequently before 31 December of each 
year, in accordance with the procedure laid down in Article 18 of Council Regulation 
(EEC) No 3760/92, on: 
the eligibility of the planned expenditure; 
the rate of the Community contribution; 
any conditions to which the contribution may be subject. 
Article 7 
At the reasoned request of a Member State, the Commission may grant advances up to 
a maximum of 25% of the Community's annual contribution. That advance shall be 
deducted from the final amount of the Community contribution to the eligible expenditure 
actually incurred. 
Article 8 
In the event that a Member State decides not to realise all or part of the expenditure 
which the Commission has deemed eligible, in accordance with Article 6, it shall inform 
the Commission thereof without delay giving details of the impact on its control 
programme. 
Article 9 
1. Member States shall present their applications for reimbursement of expenditure 
no later than 31 May of the year following that during which the expenditure was 
incurred. 
2. When submitting an application for the reimbursement of expenditure, Member 
States should have a national control authority verify and certify that the 
expenditure was incurred with due regard to the conditions laid down in this 
Decision, in particular point 4 of the Annex hereto. 
A<L 
3. If the application reveals indications that the conditions set out in paragraph 2 
have not been complied with, the Commission shall undertake a thorough 
examination of the case by asking the Member State to forward its comments 
within a specific time limit. If the examination œnfirms that the conditions have 
not been complied with the Commission shall set a suitable time limit for 
compliance by the Member State. If, when the time limit has expired, the Member 
State has not acted on the recommendations the Commission may reduce, suspend 
or cancel its contribution in the area of assistance concerned. 
Article 10 
Member States shall provide the Commission with any information which it may request 
for the performance of its duties under this Decision. 
Member States shall provide the Commission with any information which will enable it 
to verify the use of the surveillance and control facilities which have been the subject of 
a Community financial contribution pursuant to this Decision. 
If the Commission considers that the facilities are not being used for the intended purpose 
or in accordance with the conditions set out in this Decision, it shall inform the Member 
State accordingly. The Member State shall then conduct an administrative inquiry in 
which Commission officials may participate. The Member State shall inform the 
Commission of the progress and results of the inquiry and provide the Commission 
without delay with a copy of the report of the inquiry and the principal data used in 
preparing it. 
43 
Article 11 
The Commission may carry out any checks which it deems necessary to ensure that the 
conditions and tasks imposed on the Member States by this Decision are fulfilled, and the 
Member States shall provide assistance to the staff appointed by the Commission for this 
purpose. 
The provisions of this Article shall be without prejudice to Article 29 of Council 
Regulation (EEC) No 2847/93. 
Article 12 
This Decision is addressed to the Member States. 
Done at , 
For the Council 
The President 
Jif 
ANNEX 
1. The applications for financing referred to in Article 5 shall state the expenditure 
envisaged for the following years. It shall specify in particular: 
the timetable for the expenditure envisaged; 
the technical features of the equipment, its cost, the method of payment 
envisaged and its control objective relative to the programme; 
the planned use of the equipment, including its date of entry into service; 
the nature and cost of specific measures intended to improve the quality 
and effectiveness of the control of fishing and related activities and details 
of their envisaged duration. 
2. Member States shall justify the above measures with regard to the following 
criteria: 
the objectives pursued within the framework of the expenditure which they 
wish to incur; 
the anticipated results linked to the expenditure to be incurred; 
in the case of expenditure on the purchase of vessels, aircraft and land 
vehicles, the amount of time which they will devote to fisheries inspection 
and monitoring; 
the use made by a Member State of any financial contribution granted 
under Decision 89/631/EEC or under this Decision in any previous year; 
AC 
the improvement in the Member State's performance in fisheries 
enforcement at sea and on land in the period preceding the application, 
under the programme referred to in Article 4, and the improvement likely 
to result from the expenditure envisaged. 
3. The Member State shall also provide the following information for each measure: 
the prevention, detection and prosecution of infringements against the 
common fisheries policy; 
the presence in national legislation and the application in practice of 
penalties that are commensurate with the seriousness of infringements and 
effectively discourage further infringements of the same kind; 
the reliability of the catch figures forwarded by the Member State to the 
Commission and the Member State's ability to prevent the overfishing of 
its quotas; 
the amount and effectiveness of the human and material resources devoted 
by the Member State to fisheries enforcement; 
the diversity of the fishing activities in the Member State's fishery zone; 
the degree of cooperation in fisheries enforcement between that Member 
State and other Member States and the Commission; 
where applicable, that Member State's contribution to fisheries enforcement 
in areas governed by international conventions to which the Community 
is a Contracting Party and the scale and effectiveness of that enforcement; 
the enforcement effort devoted by the Member State to the fishing 
activities of its vessels on the high seas. 
4. The reimbursement of expenditure and the payment of advances shall be made 
only if the provisions of the Directives coordinating procedures for the award of 
public works and supply contracts have been complied with, in the sense that the 
duly completed public contract questionnaires must make reference to the notices 
Af 
on the award of public contracts published in the Official Journal of the European 
Communities. In case of non-publication of the notices in the Official Journal of 
the European Communities, the beneficiary shall certify that the public contracts 
have been awarded in conformity with Community legislation. 
The Commission may request any information which it considers necessary for 
judging whether Community legislation on public contracts has been respected. 
Reimbursement shall be subject to the presentation of documentary evidence in 
duplicate. That evidence should contain at least the main elements of the 
agreement between the Member State and the service providers) and the 
corresponding proofs of payment. To be eligible for reimbursement, individual 
items of expenditure must be listed in a summary statement indicating explicitly 
for each item the object of the expenditure, its connection with the proposed 
programme and the net amount excluding VAT. 
SlVbùo 

FINANCIAL STATEMENT 
Heading B2-901: financial participation in inspection and monitoring operations 
1. Title of operation 
Financial participation in inspection and monitoring operations. 
2. Budget heading involved 
B2-901. 
3. Legal basis 
Article 43 of the Treaty and Council Decision 89/631/EEC. 
4. Description of operation 
4.1 General objective of operation 
The question of financial assistance for inspection operations carried out 
by the Member States was raised when the CFP was introduced After a 
preliminary stage, assistance of an initial amount of ECU 22 million per 
annum was granted for the period from 1991 to 1995 on the basis of 
Decision 89/631/EEC, allowing the Commission to contribute up to 50% 
of expenditure on equipment incurred by the Member States. The Council 
undertook to decide on future provisions before 30 June 1995 on the basis 
of a report drawn up by the Commissioa In the mean time, the Council 
has taken other decisions which have a bearing on this question. 
When the new control Regulation was adopted, the Council said that the 
current system of inspections would now extend to new areas and required 
the implementation of additional measures not covered by the previous 
Decision (89/631/EEC)1. The range of operations for which a financial 
contribution could be made to the expenditure of the Member States would 
therefore have to be widened: 
OJ No L 364, 14.12.1989, p.64. 
AS 
Support for investment expenditure must continue to be a priority 
for financial assistance. The acquisition of heavy equipment is 
particularly difficult to finance from national budgets. Moreover, 
the investments made during the period 1989 to 1995 have not 
fully covered needs as shown by the assessments made by the 
Member States for the period 1996 to 2000. The working life of 
the equipment concerned ranges from several decades (seagoing 
equipment) to several years (motor vehicles, computer equipment, 
technical inspection equipment), airborne inspection equipment 
coming somewhere in between. The equipment with a short 
working life will have to be replaced within the next five years. 
Even amongst the seagoing equipment there will have to be 
additions, replacements and renewals. A greater priority will 
furthermore have to be given to investments in modem technology. 
Investment will have to cover not only the acquisition of 
equipment but also other types of expenditure, in particular on 
software. 
If rapid progress is to be made, integrated projects may need to be 
set up, the financing of which, like that of the satellite pilot 
projects, may require expenditure over and above the cost of 
investments. The setting-up of information networks depends on 
such integrated projects. The agreement reached in the Council in 
December 1994 on fisheries inspection west of longitude 4°W 
requires very rapid implementation and specific financial 
arrangements. 
The serious problem of training needs to be stressed. Support must 
be permitted for the Member States' initiatives in this area Priority 
must also be given to assistance for exchanges between Member 
States and between Member States and the Commission, both for 
the initial training of officials responsible for control and 
subsequently to promote temporary detachments and exchanges. 
4.2 Duration of operation and provisions for renewal 
The operation forms part of a measure planned to cover the period 1996 
to 2000. Any subsequent action will have to be decided upon before the 
end of the period. 
5. Classification of expenditure or revenue 
5.1 Compulsory expenditure. 
5.2 Differentiated appropriations. 
5.3 No revenue. 
A.% 
6. TVpc of expenditure or revenue 
Subsidy for joint financing with other sources in the public and/or private sector 
Subsidy in the form of a reimbursement. Possibility of paying advances. 
7. Financial impact 
7.1 Method of calculating the total cost of the scheme 
The financial contribution to investment expenditure is, inter alia, for the 
acquisition or modernization of: 
vessels, aircraft, and land vehicles employed in the monitoring and 
supervision of fishing activities; 
>* - systems for the detection and recording of fishing activities 
(including equipment installed on fishing vessels); 
systems for recording, managing and transmitting inspection data, 
including computer applications and software. 
The contribution should be limited to 35%, as against 50% under the 
previous Decision. 
The financial contribution to expenditure intended to improve the 
application of the common fisheries policy as part of specific measures 
and projects not exceeding two years is limited to 50%. 
The same limit applies for expenditure on the training of national officials 
involved in inspection work, in particular in a Member State other than 
that in which they are employed. 
The Commission may, however, decide on higher rates, in particular: 
to permit the implementation of a coordinated measure by Member 
States and the Commission to overcome difficulties with inspection 
in an area of Community interest; 
to permit experimentation with and the introduction of new 
technology to improve the control of fishing and related activities; 
to permit an additional Community financial contribution not 
necessarily limited to expenditure on investments in favour of 
Ireland for the improvement of inspection work. 
to 
7.2 Breakdown by type of measure 
Commitment appropriations in ECU million 
(at 1996 prices) 
Type of measure Annual budget Total budget over five 
. 1996 to 2000 years 
1. Investment in 28 140 
equipment 
2. Operating expenditure 2 10 
(Ireland) 
3. Information networks 10 50 
4. Training and 1 5 
exchanges 
Total 41 205 
A more detailed breakdown of expenditure is not possible since it is up to 
the Member States to submit applications. Priority should nevertheless be 
given to new technology and to seagoing inspection equipment for those 
Member States which are still underequipped. 
7.3. Operating expenditure on studies, meetings of experts, etc. included in Part 
B 
The nature of this heading excludes operating expenditure of this type. 
7.4 Schedule to be completed for multiannual operations whose basic 
instrument contains "an amount deemed necessary" 
amount deemed necessary: ECU 41 million 
period: 1996 to 2000 
Commitment appropriations / payment appropriations in ECU million 
(at 1996 prices) 
CA 
PA Indicative plan 
1996 
41 
10 1997 
41 
40 1998 
41 
40 1999 
41 
40 2000 
41 
40 2001 
35 Total 
205 
205 
3.A 
8. Ftaud-prevention measures; results of measures taken 
Under the scheme, the Commission must take a decision every year on the 
Community contribution to expenditure incurred by the Member States. A prior 
appraisal is made of the proposals submitted by the Member States and the 
Commission decides on the eligibility of applications on the basis of the 
documentation submitted Each year, after an interdepartmental consultation, the 
selected proposals are examined by the Management Committee for Fisheries and 
Aquaculture. The Commission then decides on the eligibility of the applications 
and the size of the Community contribution. 
Payment of the Commission contribution is made on presentation of duly 
receipted invoices relating to eligible expenditure actually incurred and on 
presentation of the duly completed "public contract questionnaire". 
To enable the best use to be made of assistance granted from the Community 
budget, the Member States must ensure the effectiveness of all their arrangements 
for controls and penalties and complete transparency of all procedures. 
The importance of inspection missions.carried out by officials on behalf of the 
Commission in the Member States should be stressed. They enable verification of 
the conformity of equipment with the administrative documents which the 
authorities of the Member States are obliged to submit to the Commission and the 
effective use of all the control facilities part-financed by the Community. Joint 
missions by the Authorizing Office and Financial Control are planned in the 
beneficiary Member States. 
The above provisions will enable the Commission to evaluate the actual 
application of the Decision which will succeed Decision 89/631/EEC. 
9. Dements of cost-effectiveness analysis 
Expenditure on fisheries enforcement must be set against the value of fish stocks 
and the damage caused by non-declaration (estimated at 10% of the value of the 
catches landed) and poor management (resulting in the loss of an estimated 
potential annual revenue of ECU 3 000 million). 
9.1 Specific and quantifiable objectives; target population 
Specific objectives: links with general objective 
To provide inspection authorities with efficient, modern equipment. 
To set up the mechanisms and computer networks necessary for the 
exchange of information relating to enforcement operations. 
To promote the training of those involved in enforcement operations. 
*> £X 
Target population: distinguish as applicable for each objective; indicate the 
end-beneficiaries of the Community's financial contribution and the 
intermediaries involved 
The direct targets are the national fisheries inspection authorities, but it is 
all those involved in fishing and related activities, often in regions where 
other economic activities are limited, who will benefit from efficient 
fisheries enforcement. It is not only the fisheries sector which is concerned 
- the ecological impact of poorly controlled fishing activities affects the 
whole of the Union as do the diplomatic consequences when there are 
inadequate controls in international or third country waters. 
9.2 Grounds for the operation 
Need for Community financial assistance 
If the inadequacies in fisheries inspection are to.be overcome, the 
Commission must take political, regulatory and budgetary action. 
None of these areas can be neglected; they are in any case linked. 
Progress has been made on regulatory provisions, essentially at the 
initiative of the Commission. The corresponding political decisions 
have financial consequences which the Commission cannot ignore. 
The existence of the common fisheries policy and the 
interdependence of the fisheries sectors in the different Member 
States resulting from the movement of fish stocks makes fisheries 
control a Community problem. Cost-benefit analyses of fisheries 
control cannot be carried out at Member-State level. Community 
financial solidarity is therefore essential and the budget heading 
permitting assistance towards expenditure incurred by the Member 
States is the expression and the instrument of that solidarity. 
Furthermore, the growth of that heading is the result of decisions 
already taken. 
Choice of ways and means 
* advantages over alternative measures (comparative 
advantages), 
* analysis of any similar measures implemented at 
Community or national level. 
The budget required for effective control is small when set against 
the economic importance of fisheries, the losses from fraud and the 
waste arising from the current ineffectiveness of the CFP. It is also 
small compared with the amounts spent in this area by other 
countries. 
£5 
The Community budget for control will remain small compared 
with the expenditure of Member States, but that budget is the key 
to any progress. Reference has been made to the obligations arising 
from the decisions taken since 1991, particularly those taken by the 
Council. Assistance with the expenditure incurred by the Member 
States is essential. 
Community financial assistance accounts for 2.7% of the 1995 
Community budget for fisheries and is less than 10% of the almost 
ECU 230 million per year spent by the Member States on 
inspection and monitoring. Of that amount, ECU 54 million is for 
investment, the rest to cover operating costs. That expenditure can 
be compared with the expenditure on controls by certain third 
countries. The annual estimated cost of enforcement operations 
carried out by Norway is NOK 500 million (ECU 60 million) and 
Canada spends CAD 85 million (ECU 58 million). The 1995 
budget of the US Coast Guard for policing fishing activities is 
USD 500 million (ECU 390 million). The Community budget for 
fisheries control is therefore modest when measured against a range 
of criteria 
Mean factors of uncertainty which could affect the specific results 
of the operation 
The most serious risk is that Member States will be unable to meet 
their commitments as regards part-financing and their other 
obligations (organization, personnel, penalties, etc.). 
In order for equipment towards which financial assistance has been 
granted to be used effectively, it niust be used in a suitable context. 
Operating budgets, staffing, administrative organization and 
penalties are, without exception, the responsibility of the Member 
States. If the Member States do not adopt the appropriate measures, 
Community assistance will not produce the desired results. 
National authorities, although well-equipped, will not be fully 
effective. 
9.3 Monitoring and evaluation of the operation 
Evaluation of costs 
The major difficulty is that the authorities involved in fisheries 
enforcement are often also carrying out other duties. Costs have therefore 
to be allocated. The most obvious example is operations at sea. Where 
these involve the armed forces, and even where an operation is mainly 
concerned with fisheries enforcement, they could possibly include other 
activities (sea rescue, demonstrating a security presence). 
£M 
Whatever the difficulties, the expenditure required for effective controls 
is such that appropriate accounting measures must be taken to permit an 
effective breakdown of costs. 
Assessment of the results 
The initial indicators are a measure of the means employed: the number 
of days at sea of inspection vessels or flying hours of airplanes and 
helicopters, the area covered, the number of inspections carried out on land 
and at sea. These are indicators of activity and not a measure of 
effectiveness. They must nevertheless be part of any system for monitoring 
progress in enforcing the CFP. 
The second set of indicators is the number of suspected infringements 
detected and the penalties imposed This information, together with the 
activity indicators referred to above, are vital for any appraisal of the 
thoroughness of inspections and penalties. They do not, however, give a 
complete picture, since the number of suspected infringements depends on 
both the effectiveness of inspections and the actual number of 
infringements. 
As regards resource-conservation policy, the actual effectiveness of the 
enforcement of the CFP should be assessed in the light of two criteria: 
limits on the rate of exploitation and protection of the smallest fish 
(juveniles). This means making a comparison between actual catches and 
authorized catches for each stock and calculating the proportion of 
undersized fish taken. Paradoxically, this is technically easier than proving 
individual infringements on a legally accepted basis. Procedures can be 
worked out for carrying out checks to verify the catches of a group of 
vessels. However statistically lax the procedures, it will be possible to 
assess the reliability of such estimates and to improve that reliability as 
required by adjusting the size of the samples taken. It will often be more 
difficult to acquire legally acceptable proof against a probable fraudster. 
On the one hand, the so-called "law of large numbers" facilitates the 
estimation of overall quantities, and, on the other, the burden of proof 
placed on the prosecution makes the penalization of individual 
infringements difficult. This duality must be an element in any 
consideration of the effectiveness of controls. It shows that it is easier than 
it is sometimes thought to measure the actual overall result of 
infringements. Scientists have regularly done this by comparing the official 
statistics with estimates based on research work. The unreliability of 
certain official statistics forces research institutes to devote a considerable 
part of their limited resources to non-scientific work. However, in terms 
of enforcement, the possibility of quantifying fraud permits us not only to 
have immediate composite indicators of efficiency but also to target 
inspections in the most important areas. It therefore becomes possible to 
rationalize inspections so that the means devoted to prevention and 
dissuasion and to the gathering of evidence necessary for the imposition 
of penalties are concentrated on the most serious problems. Such 
rationalization would not only permit a direct improvement in the 
^ 
effectiveness of controls but would also increase the credibility of controls 
with tliose working in the sector, who are often well-informed about large 
and recurrent cases of fraud 
On an operational level, it would be useful if each Member State were 
able to verify certain catches on the basis of random checks. DG XTV 
should use the assessments made by international scientific bodies. 
(Items for internal information purposes) 
9.4 Consistency with financial programming 
Is the operation incorporated in the DG's financial programming for the 
relevant years? 
The operation is to be implemented under a Council Decision covering 
the period 1996 to 2000. 
To which broader objective defined in the DG's financial programming 
does the objective of the proposed operation correspond? 
The question of enforcement concerns the. whole of the CFP. 
10 Administrative expenditure (part A of the budget) 
This section of the financial statement must be sent to DGs XIX and IX; DG 
IX will then forward it to DG XIX with its opinion. 
10.1 Will the proposed operation involve an increase in the number of 
Commission staff? If so, how many? 
An increase is necessary to intensify anti-fraud controls, monitoring and 
assessment. The estimated increase is 0.5 A and 1 B grade staff. 
'i(c 
10.2 Indicate the amount of staff and administrative expenditure involved in 
the proposed operation Explain the method of calculation 
Mission expenses: ECU 15 000 
Staffing - 75% of the time of an A grade official 
- 150% of the time of a B grade official 
- 150% of the time of a C grade official 
- translation work (correspondence, proposed programmes, 
Commission Decision) 
In the medium term, after the transitional phase, the additional 
resources might no longer be required 
£V 
REPORT FROM THE COMMISSION TO THE COUNCIL 
AND THE EUROPEAN PARLIAMENT 
ON THE COMMUNITY'S FINANCIAL CONTRIBUTION TOWARDS 
EXPENDITURE INCURRED BY MEMBER STATES FOR THE 
PURPOSE OF ENSURING COMPLIANCE WITH 
THE COMMON FISHERIES POLICY 
Note on the English translation: it has not proved possible to translate the Annexes of this 
Report by 28 April. The English version of these will follow in the first week of May. -
SdT/€/3 
£8-
CONTENTS 
INTRODUCTION 
l. APPLICATION OF COUNCIL DECISION 89/631/EEC 
1.1 BACKGROUND 
1.2 DESCRIPTION OF THE SCHEME 
1.3 PURPOSE OF THE INVESTMENTS 
\A RESULTS 
2. CONTEXT FOR THE PREPARATION OF A NEW DECISION 
2.1 NEW REGULATORY FRAMEWORK/COUNCIL AND COMMISSION 
UNDERTAKINGS 
2.2 CONDITIONS OF EFFECTIVE MONITORING 
3. RJTURE FINANCIAL SOLIDARITY 
3.1 JUSTIFICATION 
3.2 TOWARDS A PARTNERSHIP BETWEEN THE COMMISSION AND MEMBER 
STATES 
3.3 SCOPE OF APPLICATION AND PROCEDURES 
3.4 BUDGET APPROPRIATIONS 
CONCLUSIONS 
ï*> 
ANNEX 1: Implementation of Decision 89/631/EEC 
ANNEX 2: Factors in the cost-effectiveness of controls 
ANNEX 3: Analysis of some Community schemes to finance controls in the 
agricultural and customs sectors 
ANNEX 4: Forecast expenditure by the Member States for the period 1996-2000 
ANNEX 5: Indicative financial planning for the period 1996-2000 
(5) 
INTRODUCTION 
The common fisheries policy includes a comprehensive, integiated system of control for 
ensuring compliance with the rules relating to all the key aspects of that policy. The 
Member States have direct responsibility for most operational aspects. Each Member State 
designates the competent authorities responsible for carrying out inspections and makes 
the necessary funding and staffing available. Given that controls are of more than purely 
national interest and that the investments necessary to acquire suitable monitoring and 
control facilities in certain cases exceed the funding available from national budgets, since 
1978 the Community has gradually introduced a system of financial contributions towards 
expenditure incurred by the Member, States. 
The purpose of this report is, in the first instance, to review application of Council 
Decision 89/631/EEC on a Community financial contribution towards expenditure 
incurred by Member States for the purpose of ensuring compliance with the Community 
system for the conservation and management of fishery resources'. The Decision covers 
1991-95 and an initial budget of ECU 110 million was authorized for the five-year 
period. 
Before looking at the future, an in-depth analysis of the current situation is required. This 
analysis is the subject of the second part of this report, which summarizes recent 
decisions affecting the rules on the enforcement of the CFP and looks at the general 
conditions necessary for progress on fisheries control. . 
On the basis of the analysis given in that second part, the third and final part aims to 
define the rules for a new system of financial support for fisheries control. 
OJNoL364, 14.12.1989, p. 64. 
M 
l. APPIJCATIQN OF COUNCIL DECISION 89/631/EEC 
1.1 BACKGROUND 
The primary responsibility for enforcement of the common fisheries policy (CFP) lies 
with the Member States. Each Member State controls fishing and related activities carried 
out on its territory and within the maritime waters under its sovereignty or falling within 
its jurisdiction. Controls cover all vessels and all operators, both those of the Member 
State responsible for controls and those of other Member States and third countries. 
The decentralization of responsibility for the inspection and monitoring of fishing 
activities to the Member States is in accordance with the principle of subsidiarity. The 
Commission must provide support for these controls and ensure that they are effective, 
fair, objective and transparent. The financial burden, the relationship between that burden 
and the benefits for the national economy and budgetary capacity vary considerably from 
Member State to Member State. Financial solidarity is therefore necessary. From the 
introduction of the CFP, therefore, support has been given through a contribution to the 
cost of investments. 
Following on from an initial measure introduced in 1978 for Ireland and Denmark 
(Greenland), it was decided in 1987 to grant financial assistance to all Member States for 
the development of their monitoring and inspection facilities. This measure was then 
extended for a period of five years by Council Decision 89/631/EEC of 27 November 
1989 on a Community financial contribution towards expenditure incurred by Member 
States for the purpose of ensuring compliance with the Community system for the 
conservation and management of fishery resources2. The Decision covers the period 1991-
95 and extends, as an interim measure, to monitoring operations' in the Mediterranean 
pending the adoption of Community rules for that area. 
This section reviews the implementation of Decision 89/631/EEC. The subject has already 
been covered in two previous documents: the Report on Monitoring Implementation of 
the Common Fisheries Policy3 makes an overall evaluation of the controls exercised by 
the Member States and examines in detail Community contributions towards expenditure 
incurred by Member States; the report from the Commission to the Council on the 
Memorandum submitted by Ireland on the fisheries sector4, from a more specific point 
of view, contains an appraisal of the Community contribution granted to Ireland 
OJNoL364, 14.12.1989, p. 64. 
Doc. SEC(92) 394 final. 
Doc. SEC(93) 882 final. 
1.2 DESCRIPTION OF THE SCHEME 
Council Decision 89/631/EEC provides for a Community financial contribution towards 
expenditure incurred by Member States for the purpose of ensuring compliance with the 
Community system for the conservation and management of fishery resources. The 
principal objective of the measure is to contribute to the development of monitoring and 
inspection facilities in the Member States, since improving control will help conserve 
fishery resources and result in more rational, and therefore more economically efficient, 
fishing. Day-to-day expenditure and running costs are not eligible for a financial 
contribution from the Union. 
The Community contribution applies to eligible expenditure incurred by the Member 
States between 1 January 1991 and 31 December 1995. The Council, acting in accordance 
with the procedure provided for in Article 43 of the Treaty, must decide before 30 June 
1995 on provisions for any Community financial contribution to be made after 1 January 
1996 (Article 1(5)). 
In 1989, the Council considered that a budget of ECU 22 million was needed over the 
five years, with Community financing limited to a maximum of 50%. . 
In 1994 a budget of ECU 10 million was earmarked for pilot projects concerning 
continuous satellite position monitoring of fishing vessels and automatic position 
recorders. These projects were implemented during the second half of 1994 and the first 
half of 1995 in preparation for a Council decision on the definitive introduction of such 
a monitoring system. 
The budget for the measure in 1995 is ECU 22.5 million or 2.7% of the Community 
budget for fisheries. 
s 
Between 1991 and 1995, the Commission made a total financial contribution of 
ECU 118 million. The Community contribution was 50% of eligible expenditure in all 
cases, except for the pilot projects concerning continuous satellite position monitoring, 
which were financed at the rate of 100%, the total contribution for those projects in 1994 
and 1995 being ECU 9.4 million. 
Annex 1 shows the consolidated position with regard to commitments and payments for 
all the Member States. 
M 
1.3 PURPOSE OF THE INVESTMENTS 
Eligible expenditure has been spent on the acquisition or modernization of: 
seagoing equipment, aircraft and land vehicles and equipment installed in them; 
systems for the detection and recording of fishing activities; 
systems for recording and processing data on catches and landings/transshipments. 
The Community contribution of an average of ECU 22 million per year should be set 
against the investment of more than ECU 54 million per year made by the Member States 
themselves. 
The final beneficiaries of the Community contribution are the national inspection 
authorities designated by the Member States. In certain cases, benefits are passed on to 
the regional inspection authorities. 
The range of investments made and planned under Decision 89/631/EEC varies from one 
Member State to another. An indication is given in Annex 1. 
1.4 RESULTS 
The results of the financial support given for investment expenditure can only be fully 
assessed on the basis of a cost-effectiveness analysis of the whole range of controls. As 
shown in Annex 2, the analytical tools required are not yet fully in place in the Member 
States. The following analysis can therefore be no more than partial. 
The purpose of the expenditure on seagoing equipment, aircraft and land vehicles and on 
the systems for the detection and recording of fishing activities was to improve controls 
in order to achieve fuller compliance with conservation measures. An evaluation must 
cover- the performance of inspection services and the results obtained in terms of the 
compliance of fishermen with the rules on conservation (access to zones and resources, 
technical measures) and application by the Member States of the overall restrictions on 
catches (quotas). 
Surveillance and controls at sea and on land can be analyzed in terms of activity. 
Evaluation is often based on key data such as the number of inspection days, the number 
of inspections at sea, the number of infringements detected, etc. Some of this information 
is systematically gathered under Commission Regulation (EEC) No 3561/85 of 
17 December 1985 concerning information about inspections of fishing activities carried 
">M 
out by national control authorities5. Between 1990 and 1993, the number of inspection 
days spent at sea by national inspection vessels rose from 12 970 to 16 520 and the 
number of inspections at sea from 20 537 to 31 944. The number of infringements 
detected increased from 2 393 to 5 092, with infringements at sea involving the log-book 
rising from 217 to 489 and illegal catches from 152 to 320. 
As shown in Annex 2, it is vital to be able to estimate the extent of fraud. The increase 
in the number of infringements detected could be the result of the intensification of 
controls and, in part, of the widening of the scope of controls. In addition to the 
indicators of activity, an indication of effectiveness could be gained from a comparison 
of official statistics and the unofficial statistics used by ICES working parties (see 
Annex 2). Comparison shows that the reliability of official statistics has not significantly 
improved 
The increase in investment, with a financial contribution from the Community, has 
enabled fisheries control to be intensified This has not permitted any large reduction in 
fraud, since the factors which tend to encourage it, such as commercial difficulties, have 
been increasing. In any event, any improvement in controls is impossible without 
investment, although investment on its own is insufficient, as shown in paragraph 2.2 
As regards legislation, Decision 89/631/EEC had to be amended to include expenditure 
on controls in the Mediterranean and to permit the financing of pilot projects concerning 
satellite position monitoring of fishing vessels. 
OJNoL339, 18.12.1985, p. 29. 
^S' 
2. CONTEXT FOR THE PREPARATION OF A NEW DECISION 
2.1 NEW REGULATORY FRAMEWMUC/CCOVOL^ 
2.1.1 REVIEW OF THE CFP 
Council Regulation (EEC) No 3760/92 of 20 December 1992 establishing a Community 
system for fisheries and aquaculture6 created the main frame of reference for the 
implementation of the common fisheries policy up to 2002. The CFP now covers all 
activities involving the exploitation of live aquatic resources, including aquaculture, and 
product processing and marketing. The new basic Regulation, which essentially rolled 
forward the CFP on the basis of what had been achieved since its establishment in 1983, 
also provides for the possibility of direct management of fishing effort and the need for 
effective links between conservation policy and limiting catch capacity. 
2.1.2 EXTENDED SCOPE OF THE MONTTORING AND INSTCOION REQME 
Council Regulation (EEC) No 2847/93 establishing a control system applicable to the 
common fisheries policy7 entered into force on 1 January 1994. It is an instrument of the 
revised CFP and has extended the scope of application of monitoring to the 
Mediterranean, to fishing activities by Community vessels in the waters of third countries 
and on the high seas, as well as structural measures and measures on the common 
organization of the market. 
This new instrument, which replaces Regulation (EEC) No 2241/87s, maintains and 
extends the responsibility of each Member State with regard to compliance with 
Community legislation. It paves the way for increasing use of new technologies. Two 
such uses are explicitly introduced: satellite technology (monitoring vessel position) and 
computer technology (databases and networking). 
With regard to satellite tracking, an experiment is under way which at the same time is 
testing arrangements for the continuous recording of vessel position. Conclusions based 
on this experiment will be reached in 1995. The creation of interconnectable 
computerized databases for all information (e.g. log books, sales documents) will be 
compulsory from the beginning of 1996. 
OJ No L 389, 31.12.1992, p.l. 
OJ No L 261, 20.10.1993, p.l 
OJ NoL 207, 29.7.1987, p.l. Regulation amended by Regulation (EEC) 
No 3483/88 (OJ No L 306, 11.11.1988, p.2). 
^ 
Progressive computerization should lead to the creation at local, regional and national 
level of computerized data bases and a computer network enabling the exchange of data 
between Member States and between Member States and the Commission. In addition to 
assisting monitoring, this would guarantee the availability at Community level of essential 
basic data, 
2.1.3 DŒNCES AND SPECIAL FISHING PERMITS 
Council Regulation (EC) No 3690/93 of 20 December 1993 establishing a Community 
system laying down rules for the minimum information to be contained in fishing 
licences9 enhances the regulatory framework introduced in new "control1' Regulation. 
Applicable from January 1995, this Regulation lays down that every Community fishing 
vessel must have a fishing licence containing technical information on that vessel. 
The licence system was supplemented by Council Regulation (EC) No 1627/94 of 27 
June 199410 laying down special provisions concerning special fishing permits for 
Community vessels and third-country vessels operating in Community waters. In addition, 
Council Regulation (EC) No 3317/94 of 22 December 199411 lays down a specific 
licensing system for Community vessels fishing under a fishing agreement in the waters 
of third countries. 
2.1.4 CONSERVATION OF MEDITERRANEAN RESOURCES 
In June 1994 the Council adopted a set of technical measures to create the basis for a 
management system in the Mediterranean (Regulation (EC) No 1626/94 of 27 June 
199412). 
2.1.5 ENLARGEMENT 
Two new Member States are involved, which operate exclusively (Finland) or principally 
(Sweden) in the Baltic. Both the conclusions arising from the satellite pilot projects and 
the obligations with regard to computerization from 1 January 1996 will apply fully to 
the new Member States. In addition, special monitoring rules Were initiated in the Baltic 
in September 1994. Finally, Sweden and Finland have a direct interest in industrial 
fishing. The volume of monitoring to be carried out for this type of fishing, especially 
in the Baltic and the Kattegatt, is going to increase substantially, particularly since a 
transitional period has been accepted for both Sweden and Finland at the end of which 
' an overall solution will have to be found 
9 OJ No L 341, 31.12.1993, p.93. 
10 OJ No L 171, 6.7.1994, p.7. 
11 OJ No L 350, 31.12.1994, p.13. 
12 OJNoL 171, 6.7.1994, p.l. 
2.1.6 MANAGEMENT SYSTCIM WEST OF. 4° W 
(Successor to the terms of Spanish and Portuguese accession) 
The Council meeting in December 1994 decided to establish new detailed management 
rules, giving a major role to the direct management of fishing effort, and to define 
associated control measures. The latter are to involve the systematic transmission, from 
1996, of entries into and exits from fishing areas for vessels of more than 15 metres, and, 
not later than 1998, the catch data will also have to be transmitted. Community 
management and data communication infrastructures are planned for this purpose. 
2.1.7 NATO REGIME 
The inspection regime in the NAFO area adopted in Council Regulation (EEC) 
No 1956/8813 has been supplemented by control measures contained in Council 
Regulation (EEC) No 189/9214 requiring vessels to communicate certain information 
relating to their activity ("hail system"), by a pilot observation programme contained in 
Council Regulation (EEC) No 3928/9215 and by certain resource conservation and 
management measures (Council Regulation (EEC) No 3860/9316. 
2.1.8 UNEQUAL BURDENS 
During the debate leading to the adoption of the new control Regulation at the Council 
meeting in June 1993, the Council and the Commission undertook to examine the issue 
of the unequal burdens placed on certain Member States in the light o£ among other 
things, the extent of their EEZs, the economic significance of their fisheries and their 
financial capacity. 
This undertaking was œnfirmed by the Council in December 1994. In particular, it was 
planned, as part of the authorized practical Community measures and within the 
framework of the financial guidelines, to grant additional Community support, including 
operating expenditure, to Ireland to help it improve its monitoring, 
16 OJ No L 175, 6.7.1988, p.l. 
OJ No L 21, 30.1.1992, p.4. 
OJ No L 397, 31.12.1992, p. 78, OJ No L 44, 22.2.1993, p.82 (corrigendum). 
Regulation amended by Regulation (EC) No 2762/94 (OJ No L 294, 15:11.1994, 
p.5). 
OJ No L 341, 31.12.1993, p. 42. 
V* 
2.2 CONDITIONS Œ EFFECTIVE MONITORING 
2.2.1 MEANS OF IMPLEMENTATION 
Investment expenditure 
Monitoring at sea can only be carried out with suitable seagoing and airborne equipment. 
Inspection on land, too, requires means of transport and communications. Monitoring 
fishing also involves the collection, archiving and collation of considerable volumes of 
data. Computerized equipment is therefore essential. 
All the above equipment must be constantly modernized so that it does not become 
outdated and to prevent fraud, whose practitioners are constantly increasing and updating 
their equipment and expertise. 
Investment needs to take account not only of equipment, but also of other aspects such 
as the development of appropriate technology and the writing of software packages. 
Operating expenditure 
For full use to be made of the equipment, it must be ensured that not only the staff 
referred to in paragraphs 1-3 are provided, but also that the necessary operating budgets 
are available. 
Human resources 
It is sometimes easier to find the funds for acquiring heavy equipment than to ensure that 
the human resources needed to make full use of the equipment will be available on a 
long-term basis. It is nevertheless essential that organizations with a sufficient number of 
steadily employed, trained and motivated staff should be established 
The use of modem technology can mean that the same level of effectiveness in 
monitoring can be achieved with reduced numbers of staff, as can be seen from the cases 
of computerization and satellite surveillance. Yet, while it may be possible to reduce the 
number of staff, those employed must be qualified The required qualifications go far 
beyond computer skills. The use of statistical methods means mat the monitoring services 
must be able to rely on real specialists in the field, and other specializations could be 
added to the list. But the essential point is the general need for a sufficient number of 
increasingly highly qualified staff. 
'i3 
Legal powers 
If the agents responsible for monitoring do not have right of access to the relevant 
information, monitoring will be more difficult. If the range of penalties available is not 
sufficient, the very usefulness of such monitoring will be affected. 
Involvement of those working in the fishing industry and in the monitoring services 
Although it is hard to conceive of monitoring being implemented without any friction, 
effective control of the CFP cannot be hoped for unless those involved, beginning with 
the fishermen themselves, can be made to see the need for it. Some progress has been 
achieved A few years ago monitoring of fishing was perceived mainly as unjustified 
harassment from the authorities. But the fact that overall encouraging progress has been 
made should not blind us to the fact that there is still a long way tb go. Both those 
working in the fishing industry and those responsible for monitoring need to be better 
informed about what is at stake in cases of fraud 
Equity and transparency 
The primary fear blocking acceptance by fishermen of more effective control measures 
is that they will be subject to more rigorous controls than other fishermen. This concern 
is most clearly reflected in the difficulties between Member States. It is therefore essential 
to improve transparency œnceming the exact means used by each Member State for 
monitoring and their detailed arrangements for the application of rules and follow-up 
action on monitoring. The Commission must play a leading role in ensuring that the 
relevant information is communicated and made public. The annual reports provided for 
in Regulation (EEC) No 2847/9317 will constitute a particularly important instrument for 
this purpose. But the cooperation of national authorities is indispensable. 
General advancement of the CFP 
Monitoring may uncover gaps in the CFP, but it cannot be a tool for correcting a fault 
in policy. On the other hand, gaps in the CFP can only make monitoring more difficult 
and expensive. The most important problem here is that of fishing overcapacity. 
Overcapacity is an essential factor in explaining the depletion of resources. This 
depletion, which reduces yield, affects the profitability of fishing vessels. It .increases the 
temptation to commit fraud, in particular for vessels in commercial difficulties. 
The Council's deliberations on TACs and quotas have been moving in a satisfactory 
direction for some years now, which has made it possible to take better account, for sorne 
overexploited stocks, of scientific opinion recommending a reduction in the level of 
17 OJ No L 26,1, 20.10.1993, p.l 
Ho 
exploitation. But the overcapacity which has give rise to the abovementioned 
over-exploitation has only been marginally influenced by the MGPs, at least so far. As 
a result the catch capacity in various fisheries still far exceeds that needed for catches 
within the quotas. If restrictions on the activity of the vessels concerned cannot be 
established in parallel, the situation will lead to closures of fisheries in the course of the 
fishing year, to massive discards into the sea, or to fraud Monitoring catches is made all 
the more difficult and expensive by the wide gap between the fishing capacity available 
and that needed to catch within the quotas. 
Use of recent technological developments 
Fishermen have often been quicker to take advantage of the opportunities offered by 
technical developments than have the organizations responsible for monitoring. Reference 
has already been made to satellites and computer technology in this connection. It is 
important not to stand still in trying to apply the new control Regulation. On the contrary, 
active and constant steps must be taken to seize all the opportunities offered by 
technological development. 
2.2.2 STRATEGY AND ORGANIZATION 
The extremely heterogeneous nature of the fisheries and aquaculture sector, the size of 
the zones to be supervised, the mixed nature of fisheries, the large number of landing and 
sales points and, above all, the imbalance between fishing capacity and the potential of 
existing fish stocks all make monitoring more difficult. Substantial physical, human and 
financial resources are needed to achieve successful monitoring. But it is the linchpin of 
the CFP. It is therefore essential to define a strategy and organization for it. 
The available means should be deployed in optimal fashion so as to concentrate 
them on the most serious problems and give proportionate attention to the 
different aspects concerned (catches, fishing effort, structures, the market). At 
operational level, monitoring should be targeted on areas and fisheries where non­
compliance with Community rules is most widespread, and concentrate on major 
infringements. The monitoring and inspection services cannot afford to carry out 
random surveillance with the limited means at their disposal. Moreover, dealing 
with major infringements has a deterrent effect, whereas the pursuit of minor 
infringements may be counterproductive and even undermine the credibility of 
monitoring. Equally, infringements duly discovered must be penalized in an even-
handed way and have a deterrent effect 
- . Changes that have occurred in the recent past mean that alterations are also 
needed in the way monitoring is conducted The monitoring of technical measures 
and landings, which have so far been the mainstay of fisheries monitoring, must 
be supplemented by other measures to achieve global and integrated control 
covering the key elements of the common fisheries policy. It follows that the 
monitoring of inputs, put into practice through, among other things, capacity 
inspections (e.g. checking vessel displacement and engine power) and surveillance 
4'1 
of fishing effort (number of days at sea), must be stepped up. The validation of 
catch and landing data and cross-checking of data from different sources, in 
particular through the use of computers, will also provide valuable support. 
Sampling procedures should be defined, both to check certain data and to fill in 
information gaps. National authorities should develop programmes to take account 
of these new developments. The result will be a real increase in efficiency. 
Experience has shown that breaking up monitoring tasks among several 
departments or ministries greatly complicates the collection of information. In 
some cases a monitoring officer is obliged to curtail his work in order not to 
impinge upon the prerogatives of a department to which he does not belong. What 
makes these difficulties all the more regrettable is that the collation of information 
from various sources is one of the essential instruments for improving fisheries 
monitoring. The information required may be collected in some cases at sea, in 
others at the point of landing or first sale, and in still other cases during transport 
or trade transactions beyond the first sale. It is probably not conceivable for one 
authority to be responsible for the all the aspects likely to be of interest for 
fisheries monitoring purposes. But the greater the number of departments 
involved, the more difficult monitoring is, while the stronger the coordination 
structures and mechanisms, the more effective it is. This is another respect in 
which each Member State should establish the necessary organization, unless they 
wish to accept inefficient monitoring at prohibitive expense. 
4°L 
3. FUTURE FINANCIAL SOLIDARITY 
3.1 JUSTIFICATION 
Improving monitoring is a priority for the CFP that is recognized by everyone. 
Expenditure on monitoring must therefore also be seen in relation to the value of 
Community production, which is more than ECU 8 500 million. The improper 
exploitation of resources, which cannot be remedied without improving 
monitoring, is leading to a fall in revenue in many fisheries of 10% to 30% on the 
most conservative estimate. At a global level, the FAO estimates the value of 
waste resulting from over-fishing at between USD 15 000 million and USD 30 
000 million. The present level of Commission financial assistance represents 2.7% 
of the section of the Community budget allocated to fisheries in 1995, and less 
than 10% of the total expenditure of Member States on monitoring. Total Member 
State expenditure on monitoring is approaching ECU 230 million per year. Of this 
amount, ECU 54 million relates to investment, the rest goes on running costs. 
This expenditure may also be compared with the cost of monitoring in certain 
third countries. The annual cost of monitoring in Norway is estimated at 
NOK 500 million (ECU 60 million) and in Canada at CAD 85 million (ECU 58 
million). In the United States, the proportion of the 1995 budget allocated to the 
Coast Guard for policing fisheries is USD 500 million (= ECU 390 million). The 
Community fisheries monitoring budget is thus modest on a number of measures. 
Community participation in Member State expenditure is justified by the fact that 
the rules to be complied with are Community rules. Only the application of 
common rules can ensure effective conservation of resources. Monitoring landings 
and transport of fish goes beyond purely national interests. A fisherman from one 
Member State may land fish in another Member State and the fish landed may 
then be transported to a third Member State. (For example, a Belgian fisherman 
may land his catch, caught in the North Sea, in Denmark and then transport it to 
the Netherlands and market it there). The Member State where the landing takes 
place and transport commences monitors the application of Community rules 
without having any direct economic interest in the operation. Monitoring by a 
Member State, on its territory and in its maritime waters therefore goes beyond 
national interests. The Community dimension is becoming more and more 
important as time passes because of the interpénétration of activities. 
W5 
Non-compliance with the control system results in frauds that undermine the 
internal and external credibility of the common fisheries policy, and in certain 
cases of the Community itself. The establishment at Community level of effective 
monitoring should create a climate of confidence and cooperation between 
inspection bodies and those active in the industry, and between the Community 
and third countries. 
The benefits of effective monitoring cannot be assigned to specific Member 
States. In this context solidarity is needed in bearing the costs. This is made still 
more important by the fact that some Member States bear disproportionate 
burdens. The benefits that a Member State may hope to derive from better 
fisheries monitoring is not proportionate to the financial burden it has to bear. The 
. cost of monitoring for a Member State increases according to the extent of its 
exclusive economic zone, and more particularly the extent of the continental shelf 
included in that zone since, apart from the large migratory fish (e.g. the tuna 
family), most fisheries are concentrated on the shelf. The size of landings and the 
possible number of landing points also increases costs. The financial capacity of 
Member States to bear monitoring costs depends on other factors, and even the 
commercial value of the fishing activity within a Member State is not 
proportionate to the potential burden of monitoring it has to take on. Having 
recognized the imbalance of this situation, an exercise in increased solidarity 
should be undertaken to support the Member States concerned, of which the 
clearest example is Ireland 
Beyond the requirements of solidarity, there is major potential for synergy. 
Monitoring in one Member State will be all the more effective if it is also 
efficient in others. Moreover, economies of scale may be found by avoiding 
unnecessary duplication. This is particularly true in the case of experimenting with 
new technology as in the case of satellite tracking or the definition of software for 
data management and transfer. 
3.2 TOWARDS A PARTNERSHIP BETWEEN THE COMMISSION AND NBEMBER STATES 
Such a partnership presupposes general agreement on overall strategy, taking account of 
the principle of subsidiarity and the exclusive competence of Member States for 
monitoring their territory and EEZs, as well as the need for coordination at Community 
level and specific Commission tasks. 
The Commission must ensure that national monitoring is effective, provide the necessary 
financial assistance as discussed in this report and develop its roles as an initiator of 
progress and coordinator. However, the Member States must continue to provide and 
develop the basics. Community measures will be in vain if the Member States do not 
make all the necessary arrangements. The function of Community financing for 
monitoring should be clearly defined It is only under these conditions that an effective 
partnership can be established between Commission and Member States. 
4W 
Community funding must not be a substitute for national financing. The principle of 
additionality must pertain fully. In addition to that principle, to ensure that the best 
possible use is made of funding granted from the Community budget by the Commission, 
the Member States must guarantee the efficiency of all the monitoring systems and 
penalties they use and also ensure complete transparency. 
When funding is granted under the heading of equipment, to enable it to be well used, 
there must be an adequate context into which it is to be integrated. Barring exceptions, 
the allocation of staffing, operational and administrative budgets lies within the 
competence of the Member States. If they do not make the necessary arrangements, 
Community assistance will not achieve the desired ends. National teams with good 
equipment will continue to be less effective than they could be. 
In order to be able to guarantee efficient use of Community assistance, the Member States 
must also make the necessary arrangements to ensure the transparency required It must 
be possible for the Commission to establish that every Member State is fulfilling its 
obligations with regard to means (cost and activity indicators) and results (efficiency 
indicators). Independently of the general responsibilities in this regard established by 
Regulation (EEC) No 2847/9318, it will thus be possible to quantify and guarantee what 
the ultimate benefits of Community financing have been. 
3.3. SCOPE OF APPLICATION AND PROCEDURES 
When the Council adopted the new control Regulation, it declared that the new control 
system as adopted also relates to the new fields of application and that supplementary 
implementing measures were needed for which the earlier Decision (89/631/EEC)19 did 
not provide. It will therefore be necessary to extend the areas of Member State 
expenditure eligible for Community assistance. 
Support for investment expenditure must however continue to be a key sphere of 
financial assistance. The acquisition of heavy equipment is particularly difficult 
to finance from national budgets. Furthermore, the size of the investments 
approved for the period 1989-95 did not provide fully for all needs as Member 
State assessments for the period 1996-2000 show (Annex 4). The lifetime of the 
equipment concerned has been falling from several decades to several years (car 
and computer pool, technical inspection equipment), while aerial control 
equipment is an intermediate case. Equipment with a short life should be renewed 
within the next five years. Even seagoing equipment will need additional 
attachments, replacement parts and renovation. A more important place under the 
heading of investment should also be given to modern technology. Investment 
expenditure should cover not only the acquisition of equipment, but also other 
types of costs, starting with software. 
18 
19 QJ No L 261, 20.10.1-993, p.l 
OJ No L 364, 14.12.1989, p.64. 
MV 
Rapid progress may also involve setting up integrated projects, and judging by the 
satellite pilot projects the financing needed will go beyond investment costs. 
Establishing an information network would be one of these integrated projects. 
The agreement reached at trie Council meeting in December 1994 on monitoring 
fisheries west of longitude 4° W will need to be implemented very rapidly and in 
itself will require specific financing capacity. 
Finally, the importance of training must be emphasized There must be provision 
for supporting Member State initiatives in this matter. Priority assistance should 
also be granted to exchanges between Member States and between Member States 
and the Commission, both for initial training of monitoring staff and for 
secondments and limited-duration further training. 
It should be possible to provide Community financial support for all the above measures. 
The assistance rate should vary according to the nature of those measures. For investment 
assistance, in order to avoid inflation of Community expenditure that is not strictly 
justified, the minimum rate could be brought down to 35%, except for Member States that 
bear a disproportionately heavy burden of expenditure. 
Beyond contributions to expenditure incurred by the Member States, the Commission 
should also be able to assist directly. 
With regard to specific measures, it has proved necessary to have the capacity to 
initiate operations rapidly to deal with problems beyond the scope of a single 
Member State. For example, the monitoring of international seas for long-finned 
tuna in the Atlantic and swordfish in the Mediterranean has posed problems that 
• could have been simplified by the presence in the area of a vessel chartered by 
the Commission, following NAFO precedents. Member State inspectors without 
their own inspection vessel in the zone could have operated from that vessel. This 
is just one example. 
Support should also be given to experiments with new methods, as was done with 
the CAP, to encourage the use of new technology. Between the initial research 
stage, which would obviously • look for funding under Community research 
programmes, and the operational application of findings, feasibility studies should 
be supported by the Commission. For example, the standardization of the 
measurement of engine power, procedures for locating and identifying passive 
gears, and the development of techniques for determining the biological and 
geographical origin of certain products all require specific studies. 
Direct Commission financing of these measures may, however, be treated separately. 
we 
3.4 BUDGET APPROPRIATIONS 
At the Commission's request, the Member States have provided an assessment of 
their needs for the period up to 2000 (see Annex 4). On this basis, applying a 
corrective factor to take account of the accession of Sweden and Finland, and 
taking an average financial contribution at the "normal" rate of 35%, a package 
of ECU 150 million over five years should be planned for support for investment 
expenditure, budgeting for traditional investment and the investment necessary for 
the implementation of new technology together. 
Support for specific integrated projects (satellites, databases and computer 
networks) of limited duration, which may cover other expenditure than investment, 
will need an overall budget of ECU 50 million. This is an indicative figure and 
remains to be fixed following the conclusions on the pilot projects for satellite 
tracking of fishing vessels and on the basis of the rules shortly to be adopted on 
the management of fishing effort. 
Support for training and exchanges would require funding of ECU 5 million. 
A total budget of ECU 205 million, or ECU 41 million per year on average, is 
thus required This increase on the previous period must be seen in the light of 
all the new arrangements adopted by the Council and referred to. in paragraph 2.1. 
(extension of scope of application, enlargement, integration of the Mediterranean), 
as well as the need to expand the range of assistance possible, as has been done 
for the CAP. 
The proposed increase will only be sufficient if other Community budget 
resources are used at the same time. A computerized network for the exchange of 
data between the Member States and the Commission could be partly financed by 
the Community IDA programme (Interchange of Data between Administrations). 
The programme provides for financial support for projects for cooperation 
between national administrations and the Commission in respect of the 
telecommunication of computerized data. The FIDES (Fisheries Data Exchange 
System) feasibility study provided for in the Directorate-General for Fisheries' 
1994-95 Computer Guideline was financed in this way (ECU 1 million) and pilot 
projects in fisheries are to be financed for an amount of ECU 0.75 million in 
1995; Under the FTFG (financial instrument for fisheries guidance), certain 
expenditure on fisheries monitoring equipment is eligible. However, in the case 
of expenditure charged to the fishermen, the monitoring agencies appointed by the 
Member States may not benefit from such assistance. 
<tf 
Funds for operations directly initiated by the Commission must also be increased. 
The financing of specific measures coordinated at Community level will require an 
additional budget of ECU 10 million. Support for experimenting with new technology 
could be provided on the basis of a budget of ECU 10 million for five years. 
S 
CONCLUSIONS 
The scheme on Decision 89/631/EEC20 and summarized in this report currently covers a 
period of five years, up to 1995. It has been very fruitful, but must be extended. The 
Control Report established in 1992 has shown up. gaps which will not have been made 
good by the end of 1995. Monitoring is essentially a Community matter. Financial 
solidarity is all the more necessary because no Member Sate can hope to benefit directly 
from the efforts it alone dedicates to monitoring, and certain Member States have to bear 
a disproportionate burden. Moreover, coordinated Community action enables synergy and 
economies of scale to be achieved 
It will be all the more important to support Member State efforts since the scope of 
monitoring has been extended by Regulation (EEC) No 2847/9321 to cover structural and 
market aspects of fisheries and a number of other decisions have increased the range of 
needs, as has enlargement. The Council has emphasized the need to implement additional 
measures for which the relevant existing Decision does not provide in terms of financial 
assistance. That declaration highlights the importance of a financial contribution by the 
Union to Member State efforts to develop monitoring in line with new needs. 
Beyond the renewal and consolidation of the existing system, accompanied by a 
multiannual financial framework, a major overhaul is needed. The existing system will 
have to be supplemented and adjusted in relation to specific criteria The incentive to use 
new technology and coordinated measures must be stepped up, with the Commission 
acting as the motive force in this respect, and the Commission must therefore have the 
necessary financial instruments. 
On the basis of forecast monitoring expenditure for the period up to 2000, and assuming 
that the existing system is rolled forward, a substantial increase on the present financial 
package of ECU 22 million per year will be necessary. 
However, granting a financial contribution must be made conditional upon the Member 
State concerned establishing all the necessary facilities and measures for effective 
monitoring, which has not always been the case in the past. This will involve establishing 
a financial system with tighter constraints. Measures for which Community assistance is 
being requested will have to be assessed ex ante and ex post on the basis of verifiable 
criteria and objectives in order to determine in each case, both during and at the end of 
the programme, whether the objectives can be achieved at reasonable cost. 
20 OJ No L 364, 14.12.1989, p.64. 
21 OJ No L 261, 20.10.1993, p.l. 
4^ 
ANNEX1 
BVffUEMENTATlON OF DECISION 89/631/EEC (') 
(') OJ No L 364, 14.12.1989, p. 64. 
Ç© 
ANNEX I 
1. CONSOLIDATED SITUATION OF COMMTIMENTS AND 
PAYMENTS 
(at 31 December 1994) 
(in ecu) 
1991 instalment 
1992 instalment 
1993 instalment 
1994 instalment 
1995 instalment 
TOTAL (1) 
Programming 
(commitments) 
. 19 238 472 
25 522 237 
28 620 985 
30 299 796 
23 935 267 
127 616 757 (2) 
Implementation 
(payments) 
15 809 313 
16 252 278 
19 876 974 
12 041 391 
. o 
63 979 956 (3) 
Cancellation 
(released) 
3 429 159 
9 269 959 
915 971 
1 505 711 
0 
15 120 800 (4) = (1M2M3) 
In suspense 
(remain to be 
liquidated) 
0 
0 
7 828 040 
16 752 694 
23 935 267 
48 516 001 
The divergences between commitments and payments are explained by the fact that 
certain investments were overestimated and others were not carried out within the time 
initially envisaged. 
The investment projects planned for 1991 and 1992 but then cancelled have resulted in 
releases of budget funds. 
^ 
ANNEX 1 (cont) 
2. SITUATION OF œMMHMENTSAlWPAYMEI^ 
(at 31 December 1994) 
(in ecu) 
Belgium 
Denmark 
Germany 
Greece 
Spain 
France 
Ireland 
Italy 
Luxembourg 
Netherlands 
Portugal 
United Kingdom 
TOTAL (1) 
Programming 
(commitments) 
342.551 
4.291.242 
2.387.897 
10.544.199 
19.441.470 
13.013.689 
29.575.133 
3.513.887 
-
2.591.372 
31.674.105 
10.241.212 
127.616.757 (2) 
Implementation 
(payments) 
143.780 
1.924.193 
799.765 
3.498.691 
7.998.025 
4.603.535 
21.385.559 
2.185.876 
-
273.688 
15.402.754 
5.764.090 
63.979.956 (3) 
Cancellation 
(released) 
0 
464.397 
85.662 
3.617.407 
3.429.522 
729.220 
887.003 
0 
-
0 
4.419.716 
1.487.873 
15.120.800 (4) = (1M2M3) 
In suspense 
(remain to be 
liquidated) 
198.771 
1.902.652 
1.502.470 
3.428.101 
8.013.923 
7.680.934 
7.302.571 
1.328.011 
-
2.317.684 
11.851.635 
2.989.249 ' 
48.516.001 
-T? 
ANNEX I (cont) 
3. RANGE OF EXPENDITURE BY MEMBER STATE 
BELGIUM envisages expenditure in 1995 on airborne monitoring, as well as the purchase 
of one off-road vehicle and two rubber dinghies with engine. 
DENMARK has ordered a new fisheries inspection vessel which started building in 1993 
and should be-finished in 1994. It is also envisaged to supplement the present pool of 
seagoing craft and to purchase vehicles and communications equipment for land-based 
teams. 
GERMANY has started on the modernization and, in one case, complete refitting of 
existing monitoring vessels used by the various Lander. This includes the acquisition and 
installation of systems of communication and navigation by satellite, radar, VHF 
communications equipment, map tables, NAVTEX receivers, rubber dinghies with engine, 
etc. In order to stay abreast of technological progress and with the increased demand for 
data, computer equipment has been bought for the processing of catch data and of 
statistics. 
GREECE, which is awaiting the extension of the common fisheries policy to the 
Mediterranean, has carried out only a part of the envisaged programmes. So far, the 
Greek authorities have purchased several rubber dingjhies and two*fast monitoring craft, 
off-road vehicles and motor bicycles as well as electronic equipment on ships such as 
radar, VHF receivers and NAVTEX receivers, etc. The acquisition of three monitoring 
aircraft is planned as well as of high-speed motorboats for monitoring, additional vehicles 
and motor bikes, and more computer equipment. 
SPAIN has bought a helicopter for fisheries surveillance equipped with systems for 
photography and positioning, seagoing monitoring craft and land vehicles. Existing 
monitoring craft have been modernized (navigation equipment: autopilot, radar, navigation 
by satellite, map tables). A part of this equipment is intended for the autonomous 
communities of Galicia and Catalonia In 1995, Spain envisages the purchase of a 
fisheries inspection vessel. 
6^> 
FRANCE has made investments in a radio-navigation network, radio stations and voice-
scrambling equipment. New high-speed motorboats have been built and existing 
higji-speed motorboats have been modernized Land vehicles for personnel responsible 
for fisheries monitoring have also been bought. The Regional Operational Rescue and 
Monitoring Centres (C.RO.S.S.) have been equipped with VHF transmitter-receivers and 
radioelectric/telephone telecommunications systems, and the Regional Centre for 
Processing Statistics (C.RT.S.) in the Mediterranean has been equipped with 
clata-processingtetatistics equipment. In 1995, the purchase of seagoing craft is planned, 
including specialized patrol boats. 
IRELAND has purchased two.monitoring aircraft which should be operational in 1994. 
In addition, it has acquired monitoring craft, land vehicles, computers, and equipment for 
safety and protection, navigation equipment, radar and other fittings for seaborne vessels, 
as well as communications and data-processing systems. In 1995, the construction of a 
new fisheries inspection vessel is envisaged 
ITALY planned in 1993 to acquire 18 high-speed motorboats for the.merchant navy, 
which is one of the authorities responsible for monitoring fishing. For 1994, the purchase 
of two inspection vessels for the region of Sardinia is planned and for 1995 the 
acquisition of airborne equipment and land vehicles. 
The NETHERLANDS has planned to purchase land vehicles and safety and protection 
equipment, and to modernize a number of inspection vessels. 
PORTUGAL has invested in the purchase of aircraft, the acquisition of new inspection 
craft and land vehicles, the modernization of existing monitoring craft and the installation 
of the MONICAP and SIFICAP systems for the location and continuous monitoring of 
fishing vessels by satellite. 
In the UNITED KINGDOM, the Ministry for Fisheries together with the various Fisheries 
Committees have been modernized by the acquisition of computer equipment, navigation 
systems, telecommunications, marine electronics, radar and VHF equipment. The UK has 
also replaced two monitoring aircraft and purchased new monitoring craft as well as land 
vehicles. 
~h 
ANNEX2 
FACTORS IN THE OOST-EFFECIWENESS OF CONTROLS 
Evaluation of costs 
A major difiSculty comes from the fact that the departments taking part in the monitoring 
of activities connected with fishing often have a number of different roles. The costs thus 
have to be allocated among the various tasks. The most clear example is action at sea. 
Where units of the armed forces are involved, and even if a mission is focused on 
fisheries enforcement, other activities can arise (sea rescue, demonstrating an armed 
presence). 
Whatever the difficulties, the amount of expenditure necessary for effective controls is 
such that the accounting systems have to be designed to enable them to be quantified 
Assessment of efficiency 
The first-line indicators involve measuring the means employed: numbers of days spent 
at sea by inspection vessels or time spent in the air by planes and helicopters, the extent 
of areas covered, the number of inspections at sea or on land. These figures constitute 
activity indicators and are not an efficiency measure. They are a necessary part, however, 
in developing the instruments for monitoring the CFP 
The second level of analysis is the number of apparent infringements detected, 
supplemented by action taken to impose penalties. These data, when measured against the 
above activity indicators, are essential in assessing the rigour of controls and penalties. 
They are not sufficient for a complete analysis. The apparent-infringement level results 
from the combination of the effectiveness of controls and the real infringement rate. 
As regards the policy on conservation of resources, the real effectiveness of controls has 
ultimately to be measured against the two fundamental concerns, which are the limitation 
of exploitation rates and protection of the smallest fish (juveniles). It is necessary to 
compare, for each stock, the level of actual catches and of permitted catches and to 
quantify the scale of under-size catches. This task is paradoxically simpler in technical 
terms than in cases of individual infringements, which have to be proved on a legally 
OS" 
enforceable basis. On the scale of a group of vessels, it is possible to devise sampling 
procedures to ascertain actual catch levels. Provided a statistically rigorous approach is 
followed, it should be possible to assess, the reliability of these estimates and to adapt it 
to the needs, of the study at hand by varying the sample size. It will often be more 
difficult to collect legally acceptable evidence against a possible fraudster. On the one 
hand, the law of large numbers facilitates the calculation of overall estimates, while on 
the other hand the importance of the burden of proof when bringing charges makes it 
difficult to demonstrate individual infringements. This dilemma is basic to any discussion 
of the effectiveness of controls. It shows that it is less difficult than sometimes believed 
to measure the real overall impact of infringements. Scientists regularly make such 
estimates, as in Table 1 showing - for a number of stocks - a comparison of official 
statistics and estimates made by researchers. The unreliability of some official data leads 
the research establishments to divert an important part of their limited resources into non-
scientific tasks. But in terms of monitoring and inspection, the ability to quantify fraud 
makes it possible in the immediate future not only to have compound efficiency 
indicators but also to direct the efforts of inspectors towards the most important problems. 
This makes it possible to rationalize the deployment of the different inspectorates, so that 
the resources devoted both to prevention and dissuasion and to the collection of the 
evidence necessary for imposing penalties are concentrated on the most serious problems. 
This rationalization would not only lead to direct improvements in the effectiveness of 
controls but woulç! do a great deal for the credibility of these controls in the eyes of the 
industry, members of which are often well-informed about major and recurrent instances 
of fraud 
At operational level, it would be desirable that internally each Member State be capable 
of estimating the actual levels of some catches by sampling. DG XIV should rely on the 
evaluations of international scientific bodies. 
56 
Species Zone Misreporting 
Anglerfish VH, Vffla, b, d Stationary (8%) 
Cod IV Stationary (3%) 
Haddock IV Stationary (1%) 
Hake Northern Slight inc. (16%) 
Southern Slight inc. (16%) 
Plaice IV Stationary (16%) 
^ VHd Stationary (12%) 
VHe Stationary (9%) 
Vllf, g Stationary (2%) 
Saithe ma; IV Stationary (2%) 
Sole IV Stationary (48%) 
VHd Stationary (25%) 
Vile Stationary (15%) 
Vllf, g Stationary (-1%) 
Vffla, b Stationary (14%) 
Whiting Vfflf, g 
Bluewhitipg All -
Anchovy VITI Stationary (27%) 
Herring IVc, VHd Stationary (48%) 
Via S., Vllb, c Slight dec. (42%) 
Via Clyde Stationary (9%) 
VIIj Decreasing (21%) 
Horse mackerel VI Stationary, some 
overreporting 
VH Increasing (23%) 
VIII Stationary (1%) 
Mackerel Ha, IV Increasing (47%) 
Vfflc, DC, X, CECAF Increasing (24%) 
Norway Pout lia, Ola, IV Stationary, some 
overreporting 
*¥ 
ANNEX3 
ANALYSIS OF SOME COMMUNITY SCHEMES 
TO FINANCE CONTROLS 
IN THE AGRICULTURAL AND CUSTOMS SECTORS 
<X 
ANNEX3 
Analysis of some Cbmmunity schemes to finance controls 
in the agricultural and customs sectors 
General remarks 
Under Council Decision 89/631/EEC on a Community financial contribution towards 
expenditure incurred by Member States for the purpose of ensuring compliance with the 
Community system, for the conservation and management of fishery resources Ç), the 
Community finances every year at least 35% and at most 50% of the expenditure of the 
Member States on equipment for physical controls (seagoing and airborne craft for 
monitoring, other .equipment down to and including shipboard clothing, etc). 
On the basis of applications from the Member States, the Commission decides on 
financing after checking the supporting administrative documents and subject to 
administrative controls on the spot. Financed equipment has to be used for monitoring 
and inspecting fishing activities. 
0 OJ No L 364, 14.12.1989, p. 64. 
A. Community participation in expenditure by the Member States on their monitoring 
and inspection activities 
CouncO Regulation (EEQ No 4045/89 of 21 December 1989 on scrutiny by Member 
States of transactions forming part of the system of financing by the Guarantee Section 
of the European Agricultural Guidance and Guarantee Fund f) 
The Community participates in actual expenditure incurred by the Member States for 
purchasing data-processing and office automation equipment needed by the departments 
responsible for the application of controls within the framework of EAGGF financing 
(checking of the commercial documents of companies benefiting from Community aid) 
at a rate of 100% up to a maximum of: 
ECU 100 000 for Germany, Spain, France, Italy, the Netherlands, the United 
Kingdom, 
ECU 60 000 for Belgium, Denmark, Greece, Ireland and Portugal, 
- ECU 20 000 for Luxembourg. 
This limit is fixed for each Member State on the basis of the scale of the control 
operations that they have to carry out to ensure monitoring of the correctness of 
transactions directly or indirectly part of the EAGGF financing system 
Council Regulation (EEQ No 307/91 of 4 February 1991 on reinforcing the monitoring 
of certain expenditure chargeable to the Guarantee Section of the European Agricultural 
Guidance and Guarantee Fund (3) 
The Community participates in the cost of equipment for agents of the Member States 
responsible for controls at a rate of 50% for the first three years and 25% for the fourth 
and the fifth year after the entry into force of this Regulation. 
Council Regulation (EEQ No 3508/92 of 27 November 1992 establishing an integrated 
administration and control system for certain Community aid schemes in the agricultural 
sector (*) 
The Community participates in expenditure incurred by the Member States for setting up 
data-processing and monitoring structures as well as for acquiring aerial photographs and 
satellite images and their analysis (monitoring system by remote sensing) for a three-year 
period, at a maximum rate of 50% of the payments carried out by the Member States up 
to a limit allotted to each country in proportion to its monitoring tasks. 
O OJ No L 388, 30.12.1989, p. 18. 
O OJ No L 37, 09.02.1991, p. 5. 
(4) OJNoL355, 05.12.1992, p. 1. 
é'o 
Council Regulation (EQ No 165/94 of 24 January 1994 concerning the co-financing by 
the Community of remote sensing checks and amending Regulation (EEQ No 3508/92 
establishing an integrated administration and control system for certain Community aid 
schemes (*). 
The Community can part-finance checks by remote sensing on agricultural utilized areas. 
The Commission can grant advances up to a maximum of 75% of the foreseeable 
Community share. If the total amount of the appropriations available is not used, the 
Commission can redistribute the surplus funds among the Member States which finance 
from their own funds more than 50% of the cost of work approved by the Commission. 
Council Regulation (EEQ No 2392/86 of 24 Jury 1986 establishing a Community 
vineyaid register (?) 
The Community participates in financing the actual costs of setting up the Community 
vineyard register and investments in data-processing necessary to the management of the 
register, at a rate of 50%. 
Council Regulation (EEQ No 154/75 of 21 January 1975 on the establishment of a 
register of olive cultivation in the Member States producing olive oil () 
The Community participates in financing of the costs of setting up the olive cultivation 
register. 
B. Community participation in the operating costs of monitoring activities in the 
Member States 
Council Regulation (EEQ No 307/91 of 4 Febmary 1991 on reinforcing the monitoring 
of certain expenditure chargeable to the Guarantee Section of the European Agricultural 
Guidance and Guarantee Fund (*) 
The Community participates in actual expenditure incurred by the Member States for 
remunerating and training the additional staff assigned to the specific monitoring 
departments in each Member State in respect of operations financed by EAGGF and 
strictly defined in the Regulation. This participation is at a rate of 50% for the first three 
years and 25% in the fourth and the fifth year up to a limit of an annual maximum 
amount per Member State. 
(5) OJNoL 24, 29.01.1994, p. 6. 
(6) OJNoL208, 31.07.1986, p. 1. 
O OJNoL 19, 24.01.1975, p. 1. 
(*) OJNoL 37, 09.02.1991, p. 5. 
Gs\ 
Remuneration means salary less taxes and fiscal charges for the agents responsible for 
controls and their.travelling expenses as required for carrying out their tasks. The 
maximum Community participation in expenditure on staff remuneration is fixed as a 
flat-rate sum per Member State. The level of remuneration is fixed for all the 
Community. 
The Community can also finance, at 50% for the first three years then 25% for the fourth 
and the fifth year, the expenditure incurred by Member States for expenses resulting from 
controls entrusted to monitoring companies and approved laboratories. 
C Community financing of the specific agencies created in the Member States for 
agricultural controls 
Council Regulation (EEQ No 2262/84 of 17 July 1984 laying down special measures in 
respect of olive oil Ô 
The Community finances the specific agencies responsible for various checks and 
activities within the framework of production aid for olive oil, at 100% for the first two 
years up to a limit fixed on a flat-rate basis for each Member State (e.g. ECU 14 Million 
for the agency set up in Italy and ECU 7 Million for the agency in Greece), and 50.% in 
the third year. 
The agencies have a general work programme with a minimum of tasks defined in the 
Regulation, and an annual specific programme which they submit in the national 
government and to the Commission, which can modify it. Agents of the Commission may 
monitor at all times the activities carried out by the agencies. Annual Community 
financing is granted only after checks by the Commission that the agency in question has 
been set up and has carried out its proper tasks. 
The agencies enjoy full administrative autonomy. They are provided by the Member State 
with any powers necessary to carry out their tasks. 
They are composed of agents in suitable numbers and suitably trained for carrying out 
their tasks. 
0 OJ No L 208, 03.08.1984, p. 11. 
ê^L 
Council Regulation (EEQ No 2075/92 of 30 June 1992 on the common oiganization of 
the market in raw tobacco O 
The Regulation stipulates that each producing Member State is to set up a specific agency 
responsible for various controls within the framework of the Community regime for 
tobacco. The actual expenditure of the agencies is covered from the general budget of the 
European Communities at a rate of 50%, the balance being financed by the Member State 
in question. 
D. Financing of staff training in the Member States 
Council Decision 91/341/EEC of 20 June 1991 on the adoption of a programme of 
Community action on the subject of vocational training of customs officials (Mathaeus 
programme) (") 
The Commission covers the accommodation and travelling expenses arising from 
exchanges of customs officers between national adrninistrations. It also covers the 
accommodation and travelling expenses of officials taking part in training seminars 
intended for customs officers when these officials are required to operate in a Member 
State other than their country of origin. 
(,0) OJ No L 215, 30.07.1992, p. 70. 
(n) OJNoL 187, 13.07.1991, p. 41. 
6^> 
ANNEX4 
FORECAST EXPENDITURE BY THE MEMBER STATES 
FOR THE PERIOD 1996-2000 
6^ 
ANNEX4 
Investments planned for the period from 1996 to 2000 
(excluding a satellite monitoring system) 
(estimates by the Member States in million ecu) 
Belgium 
Denmark 
Germany 
vncece 
Spain 
France 
Ireland 
Italy 
Luxembourg 
Netherlands 
Austria 
Portugal 
Finland 
Sweden 
United Kingdom 
TOTAL 
Contrib.35% 
Côntrib.50% 
Cbntrib.75% 1996 
.37 
8.5 
4.16 
17.53 
10.55 
12.09 
22.91 
1.86 
2.0 
12.89 
0.26 
1.79 
4.75 
99.66 
34.88 
49.83 
74.75 1997 
.28 
.7 
1.56 
11.49 
10.87 
6.11 
20.39 
1.86 
2.0 
12.75 
0.34 
1.79 
4.67 
74.81 
26.18 
37.41 
56.11 1998 
. .25 
.7 
•34.43 
20.87 
10.55 
3.38 
11.01 
1.86 
2.0 
13.52 
0.26 
1.79 
5.87 
106.49 
37.27 
53.25 
79.87 1999 
.25 
.7 
3.80 
12.72 
10.93 
6.59 ' 
6.39 
1.86 
2.0 
11.65 
0.26 
1.79 
.5.08 
64.02 
22.41 
32.01 
.48.02 2000 
.25. 
.7 
.72 
1.40 
10.55 
4.16 
. 1.86 
2.0 
2.27 
0.26 
1.79 
2.70 
28.66 
10.03 
14.33 
21.50 TOTAL 
1.40 
11.30 
44.67 
64.01 
53.45 
32.33 
60.70 
9.30 
0.00 
10.00 
0.00 
53.08 
1.38 
8.95 
23.07 
373.64 
130.77 
186.82 
280.23 annual 
0.28 
2.26 
8.93 
12.80 
10.69 
6.47 
12.14 
1.86 
0.00 
2.00 
0.00 
10.62 
0.28 
1.79 
4.61 
74.73 
26.15 
37.36 
56.05 
i ; 1 
£S 
ANNEX5 
INDICATIVE FINANCIAL PLANNING FOR THE PERIOD 1996-2000 
G6 
ANNEX5 
INDICATIVE FINANCIAL PLANNING FOR THE PERIOD 1996-2000 
(estimates in million ecu) 
Subject 
1.Capital acods 
- traditional 
- modern 
2.Information networks 
- national 
- transnational 
3.Experiments and 
pilot projects 
4.Concerted actions 
between Member States • 
5.Training and exchanges 
- national 
- transnational 
TOTAL Maximum 
rate 
35% 
50% 
35% 
100% 
100% 
50% 
50% 
100% Maximum 
amount 
estimated 
necessary 
per year 
30 
10 
2 
2 
1 
45 Maximum 
amount 
estimated 
necessary 
over 5 years 
150 
50 
10 
10 
5 
225 
Ç* 

ISSN 0254-1475 
COM(95) 243 final 
DOCUMENTS 
EN 03 
Catalogue number : CB-C0-95-268-EN-C 
ISBN 92-77-89563-2 
Office for Official Publications of the European Communities 
L-2985 Luxembourg