Proposal for a COUNCIL DECISION establishing Regional Advisory Councils under the Common Fisheries Policy

(presented by the Commission)

EXPLANATORY MEMORANDUM

With the aim of improving governance within the Common Fisheries Policy (CFP), Regional Advisory Councils have been provided for in the framework of the CFP reform, particularly in Articles 31 and 32 of Council Regulation (EC) No 2371/2002 on the conservation and sustainable exploitation of fisheries resources under the CFP. Article 32 specifies that the Council will decide on the establishment of a Regional Advisory Council. Regional Advisory Councils offer the opportunity to respond to the demand of stakeholders to be more closely involved in the development of the CFP.

Article 31 of Council Regulation (EC) No 2371/2002 lays down certain principles which require further development if they are to provide a general framework that will serve as a basis for the establishment of Regional Advisory Councils by stakeholders. Even though stakeholders will be responsible for the operation of Regional Advisory Councils, it is necessary that they comply with this general framework in order to ensure a consistent and balanced approach amongst the Regional Advisory Councils.

The Decision focuses on the main aspects that should be clarified at Community level: the definition of the areas to be covered, the main structure of Regional Advisory Councils, their composition, functioning, appointment procedure and financing. On the basis of the criteria laid down in this Decision, stakeholders will submit a request for the establishment of a Regional Advisory Council to the Member States concerned by the Regional Advisory Council and to the Commission for verification and approval.

In order to offer meaningful advice to the Commission and the Member States, Regional Advisory Councils should be large enough to cover management units based on biological criteria. In line with this approach, Annex I to the Decision lists the Regional Advisory Councils that the Commission proposes to establish. Such an approach will ensure that all fisheries are covered by a Regional Advisory Council and also avoid an overlapping of fisheries between different Regional Advisory Councils. Organisational and financial constraints plead in favour of a limited number of Regional Advisory Councils. At the same time, the Regulation leaves open the possibility of creating subdivisions within a Regional Advisory Council to cover specific fisheries.

Regional Advisory Councils are also meant to enhance the dialogue between the different interests concerned with the CFP. Building mutual trust between scientists and fishermen would certainly contribute to improving the transparency of scientific advice. In defining the structure of the Regional Advisory Councils, it is necessary to find a balance between efficiency of discussions and inclusiveness of all parties with a real interest. The Commission proposes that the Regional Advisory Councils consist of a general assembly, which will appoint an executive committee, restricted in size but with a balanced representation of all interests affected by the CFP. Member States are best placed to appoint the representatives of the various interests that will be members of the general assembly. Participants in the Regional Advisory Councils will be considered as members, observers or experts. Another important point is that some meetings will be open to the public.

In order to avoid duplication of work with other existing consultative bodies such as the Advisory Committee on Fisheries and Aquaculture (ACFA), it is essential to establish appropriate links. Regional Advisory Councils should prepare an annual report that should be transmitted to the ACFA. The ACFA may also send a representative to meetings of the Regional Advisory Councils. At the same time, where there are issues of interest to more than one Regional Advisory Council, the coordination of the work of the Regional Advisory Councils concerned is envisaged with a view to adopting joint recommendations.

With regard to the financing of Regional Advisory Councils, the aim is that they become self-financing in the long-term. Nevertheless, in order to ensure the credibility of this new structure, Regional Advisory Councils must be granted sufficient public financing, particularly in the start-up phase.

Regional Advisory Councils should be considered an evolutionary structure that will develop over time on the basis of experience. The Commission proposes to carry out a review three years after their establishment and, if necessary, recommend improvements in their functioning.

2003/0238 (CNS)

Proposal for a COUNCIL DECISION establishing Regional Advisory Councils under the Common Fisheries Policy

THE COUNCIL OF THE EUROPEAN UNION,

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

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

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

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

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

Whereas:

(1) Council Regulation (EC) No 2371/2002 of 20 December 2002 on the conservation and sustainable exploitation of fisheries resources under the Common Fisheries Policy [3] and in particular Articles 31 and 32 thereof, provides for new forms of participation by stakeholders in the Common Fisheries Policy through the establishment of Regional Advisory Councils.

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

(2) A consistent approach to the establishment of Regional Advisory Councils requires that they correspond to management units based on biological criteria and that they are limited in number in order to offer meaningful advice.

(3) Since Regional Advisory Councils are stakeholder-led organisations, they should adapt their structure to the specific characteristics of the fisheries and regions concerned. Nevertheless, a general framework is necessary for the establishment of the Regional Advisory Councils.

(4) In the interests of efficiency, it is necessary to limit the size of Regional Advisory Councils whilst ensuring that they include all the interests affected by the Common Fisheries Policy.

(5) In order to avoid overlapping on issues of common interest to more than one Regional Advisory Council, it is essential to establish links between the different Regional Advisory Councils.

(6) In view of the tasks of the Advisory Committee on Fisheries and Aquaculture renewed by Commission Decision 1999/478/EC [4], which is composed of representatives of a wide range of European organisations and interests, the work of the Regional Advisory Councils should be coordinated with that of the Advisory Committee on Fisheries and Aquaculture.

[4] OJ L 187, 20.7.1999, p. 70.

(7) In order to ensure the effective establishment of the Regional Advisory Councils, it is essential that public funds contribute to their costs in the start-up phase,

HAS DECIDED AS FOLLOWS:

Article 1 Definitions

For the purposes of this Decision the following definitions shall apply:

(1) "Member State concerned" means a Member State having fishing rights for regulated species in the area or fisheries covered by a Regional Advisory Council;

(2) "Fisheries sector" means shipowners, small-scale fishermen, employed fishermen, producer organisations, processors, traders and other market organisations and women's networks;

(3) "Other interest groups" means environmental organisations and groups, aquaculture producers, consumers and recreational or sport fishermen;

(4) "Catching sector" means shipowners, small-scale fishermen, employed fishermen and producer organisations.

Article 2

Establishment of Regional Advisory Councils

A Regional Advisory Council is established for each of the following:

(a) Baltic Sea

(b) Mediterranean Sea

(c) North Sea

(d) North Western waters

(e) South Western waters

(f) Pelagic stocks

The geographical areas covered by each Regional Advisory Council are set out in Annex I.

Each Regional Advisory Council may create subdivisions to deal with issues that cover specific fisheries and biological regions.

Article 3

Procedure

1. Representatives of the fisheries sector and other interest groups with an interest in one of the Regional Advisory Councils shall submit a request concerning the operation of that Regional Advisory Council to the Member States concerned and to the Commission. The request shall include:

(a) a statement of objectives

(b) operating principles

(c) rules of procedure

(d) the budget estimate.

2. The Member States concerned shall check whether the request is in accordance with the provisions laid down in this Decision and shall transmit a recommendation to the Commission on that Regional Advisory Council.

3. After evaluation of the recommendation and possible amendments to the request, the Commission shall adopt a decision specifying the date from which the Regional Advisory Council shall become operational. The decision shall be published in the Official Journal of the European Union.

Article 4

Structure

1. Each Regional Advisory Council shall consist of a general assembly and an executive committee.

2. The general assembly shall meet at least once a year to review the work of the Regional Advisory Council.

3. The general assembly shall appoint an executive committee of between twelve and eighteen members. The executive committee shall manage the work of the Regional Advisory Council and adopt its recommendations and suggestions.

Article 5

Membership

1. The Regional Advisory Councils shall be composed of representatives from the fisheries sector and other interest groups affected by the Common Fisheries Policy.

2. Members of the general assembly shall be appointed by common agreement between the Member States concerned. European and national organisations representing the fisheries sector and other interest groups may propose members to the Member States concerned.

3. In the general assembly and executive committee two thirds of the seats shall be allotted to representatives of the fisheries sector and one third to representatives of the other interest groups affected by the Common Fisheries Policy.

4. At least one representative of the catching sector from each Member State concerned shall be represented in the executive committee.

Article 6

Participation

1. Scientists from institutes of the Member States concerned or international bodies shall be invited to participate as experts in the work of the Regional Advisory Councils.

2. National and regional administrations of the Member States concerned may be present at meetings as observers to express their views on the recommendations or suggestions to be adopted by a Regional Advisory Council.

The Member States not having fishing rights for regulated species in the area or fisheries covered by the Regional Advisory Council which declare a fishing interest may also participate as observers.

3. The Commission may be present at any meeting of a Regional Advisory Council.

4. A representative of the Advisory Committee on Fisheries and Aquaculture may participate as an observer in the Regional Advisory Councils.

5. Representatives of third countries that have a fishing interest in the area or fisheries covered by a Regional Advisory Council may participate in that Regional Advisory Council as observers when issues which affect them are discussed.

6. The meetings of the general assembly and executive committee shall be open to the public.

Article 7

Functioning

1. Regional Advisory Councils shall adopt the measures necessary for their organisation.

2. The members of the executive committee shall, where possible, adopt recommendations and suggestions by consensus. If no consensus can be reached, dissenting opinions expressed by members shall be recorded in the recommendations and suggestions adopted by the majority of the members present and voting.

3. Each Regional Advisory Council shall designate a chairperson by consensus. The chairperson shall act impartially.

4. The Member States concerned shall provide the necessary support, including logistical help, to facilitate the functioning of a Regional Advisory Council.

Article 8

Coordination between Regional Advisory Councils

If an issue is of common interest to two or more Regional Advisory Councils, they shall coordinate their positions with a view to adopting joint recommendations on that issue.

Article 9

Financing

1. A Regional Advisory Council which has acquired a legal personality may apply for Community financial aid.

2. Community start-up aid may be granted for the operating expenditure of a Regional Advisory Council during its first three years in accordance with the conditions set out in Annex II, Part 1.

3. Community aid may be granted for the interpretation and translation costs of the meetings of the Regional Advisory Councils as set out in Annex II Part 2.

Article 10

Annual Report and Audit

1. Each Regional Advisory Council shall transmit an annual report of its activities to the Commission, the Member States concerned and the Advisory Committee on Fisheries and Aquaculture before 31 March of the year following the year covered by the report.

2. The Commission or the Court of Auditors may, at any time, arrange for an audit to be carried out either by an outside body of its choice or by the Commission or the Court of Auditors departments themselves.

3. Each Regional Advisory Council shall appoint a certified auditor for the period during which it benefits from Community funds.

Article 11

Review

After a period of three years following the establishment of the Regional Advisory Councils, the Commission shall send a report to the European Parliament and the Council on the functioning and implementation of the Regional Advisory Councils.

Article 12

Entry into force

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

Done at Brussels,

For the Council

The President

ANNEX I

Regional Advisory Councils referred to in Article 2

Name of the Regional Advisory Council // ICES areas, CECAF divisions and GFCM

Baltic Sea // IIIb, IIIc and IIId

Mediterranean Sea // EC waters

North Sea // IV, IIIa, VIId (Eastern Channel)

North Western waters // V (excluding Va and only EC waters in Vb), VI, VII (excluding VIId and VIIe)

South Western waters // VIIe (Western Channel), VIII, IX and X (waters around Azores), and CECAF division 34.1.2 (waters around Madeira and the Canary Islands)

Pelagic stocks (blue whiting, mackerel, horse mackerel, atlanto-scandic herring) // All areas

ANNEX II

Costs incurred by the Regional Advisory Councils

Part 1. Contribution towards the start-up costs of the Regional Advisory Councils (RACs)

The Community will contribute part of the operating costs from the year of their establishment for a maximum of three years. The amount allocated to each RAC for operating costs will not exceed 85% of its operating budget in the first year and may not exceed EUR100 000. In the two following years, the financial contribution will be degressive and depend on the budget available. The Commission will conclude with each RAC and for each year an "operating grant agreement" which will set the precise terms and conditions and the procedure for the grant of financing.

The eligible costs will consist of the costs necessary to ensure the normal operation of the RACs and enable them to pursue their aims.

The following direct costs will be eligible:

- personnel expenses (cost of personnel per day of work on the project);

- new or used equipment;

- materials and supplies;

- dissemination of information to members;

- travel and accommodation expenses of scientific experts attending Committee meetings (based on scales or rules laid down by the Commission departments);

- audits;

- a contingency reserve of not more than 5% of eligible direct costs.

Part 2. Interpretation and translation costs

The Commission will conclude with each RAC and for each year an action grant agreement which will set the precise terms and conditions and the procedure for the grant of financing.

LEGISLATIVE FINANCIAL STATEMENT

Policy area(s): FISHERIES

Activity(ies): 1104 : GOVERNANCE OF THE CFP

Title of action: Contribution to the operating costs of the regional advisory committees and meeting the cost of part of their interpretation and translation expenses

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

B2-903 (110401)

Closer dialogue with the fishing industry and those affected by the common fisheries policy.

2. OVERALL FIGURES

2.1 Total allocation for action (Part B): Estimate of expenditure for the period 2004-2009 = EUR 2.278 million in commitment appropriations

2.2 Period of application:

Annual action

2.3 Overall multiannual estimate of expenditure:

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

EUR million (to three decimal places)

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(b) Technical and administrative assistance and support expenditure (see p

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oint 6.1.2)

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

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2.4 Compatibility with financial programming and financial perspective

|X| Proposal compatible with existing financial programming

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

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

2.5 Financial impact on revenue

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

OR

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

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

EUR million (to one decimal place)

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(Describe each budget line concerned, adding the appropriate number of lines to the table if several budget lines are affected)

3. BUDGET CHARACTERISTICS

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4. LEGAL BASIS

Article 37 of the EC Treaty

5. DESCRIPTION AND GROUNDS

5.1 Need for Community intervention

5.1.1 Objectives pursued

An important feature of the reform of the common fisheries policy (CFP) is to make stakeholders more closely involved in the formulation and implementation of the policy, including its local and regional aspects.

To that end Articles 31 and 32 of Council Regulation (EC) No 2371/2002 provide for the setting up of Regional Advisory Councils (RACs) whose main task will be to advise the Commission on the management of resources.

These Councils will be called on in particular to present recommendations/suggestions/opinions to the Commission and/or the Member State concerned regarding various proposals for measures such as recovery plans, technical and other measures affecting the fishing zones concerned.

In order to enable these Councils to carry out their consultative role fully and thus respond to the needs of the Commission, public financing will be essential, failing which there is a danger that the Councils will not be established or function effectively.

It is planned, therefore, to provide part-financing of the operating costs of the RACs in the form of degressive start-up aid over a three-year period, and to meet the interpretation and translation costs of the Councils, given their multilingual character.

5.1.2 Measures taken in connection with ex ante evaluation

The Green Paper on the future of the common fisheries policy emphasised that the parties concerned are not sufficiently involved in the development of the CFP, and that this has a negatives impact on observance of the rules.

The rules apply not only to shipowners, seamen, producer organisations, processors and trade representatives (auction markets), but also to groups involved in the environment and sport fishing, fish farmers, consumer interests and women's networks.

All these categories are concerned, directly or indirectly, by the development and implementation of the CFP. It is important that their views be heard and taken into account when the opinions the RACs are called upon to give are drawn up.

The general aims which the RACs should contribute to attaining concern the sustainable management of fish stocks, incorporating an approach based on the eco-systems and the precautionary principle.

In addition to the specific aims of the RACs referred to in point 5.1.1 above, emphasis should be placed on the need to improve the transparency of scientific advice by promoting dialogue between scientific experts and fishermen.

The main operational objective in the short term is to put in place RACs with transparent operating rules. They must be representative of all the parties concerned and should cover all fishing zones in the European Union under the jurisdiction of at least two Member States. The Commission will present to the RACs proposals for measures it is planning to take and which cover fishing zones within their competence. The RACs will be asked to deliver opinions which the Commission will examine when the proposal is being finalised; where appropriate, it will give reasons for its refusal to take account of the opinions.

The Commission also expects the RACs to produce a number of recommendations/suggestions, of their own accord, on topics related to the management of resources in the zone they cover.

Their role will be to inform the Commission about difficulties involved in implementing the Community rules and to make recommendations and suggestions.

A number of indicators linked to the above objectives have been identified:

- the number of fishing zones in the European Union under the jurisdiction of at least two Member States covered by operational RACs;

- their composition in relation to their geographical and sectoral representativeness;

- the rate of participation of stakeholders, and in particular scientists, in the RAC working groups;

- the percentage of opinions obtained compared with the proposals presented for consultation, a rate of around 80% being satisfactory; the number of recommendations and suggestions, if any, made of their own accord;

- the number of meetings each year, with three at least appearing to be essential;

- the quality of the opinions presented;

- the total operating costs eligible per year in the three years following their establishment.

To attain the objectives, various options were considered, including expanding the role and functions of the Advisory Committee on Fisheries and Aquaculture. This Committee, however, deals with fairly general matters and it may be difficult for it to take into account the special characteristics of certain fishing zones and/or fish stocks or represent local/regional actors which will have their place within RACs.

It is important to underline that in the European fishing industry, because of their transnational character, the RACs will bring added value to the quality of consultations.

On the cost/effectiveness side, the RACs are a new tool whose expected effects do not appear to be obtainable at lower cost. Moreover, the start-up aid is degressive and covers a three-year period, at the end of which the RACs should be self-financing.

5.1.3 Measures taken following ex post evaluation

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5.2 Actions envisaged and arrangements for budget intervention

The total annual budget will be distributed to finance two actions, a contribution towards start-up costs and the financing of translation and interpretation costs.

The calculation of the annual amounts to be earmarked is based on an estimate that three RACs will be established in 2004, two in 2005 and one in 2006 (see Annex).

5.2.1. Contribution towards the start-up costs of the Regional Advisory Councils

From the year they are set up the Commission will contribute part of their operating costs for three years. The maximum amount allocated for operating costs for each RAC will be 85% of their operating budget in the first year, and may not exceed EUR100 000. The financial contribution for the next two years will be degressive and depend on the available budget.

The Commission will conclude an "operating grant agreement" with each RAC and for each year setting the precise terms and conditions and the procedure for the grant of financing.

The eligible costs will be the costs needed to ensure the normal operation of the RACs.

The following direct costs are eligible:

- personnel expenses (cost of personnel per day of work on the project);

- new or used equipment; these costs must reflect market costs;

- costs of non-capital equipment and supplies;

- dissemination of information to members;

- travel and accommodation expenses of scientific experts attending Committee meetings (based on scale or rules laid down by the Commission departments) ;

- audits;

- a contingency reserve of not more than 5% of eligible direct costs.

According to the rules in force regarding start-up grants, the Regional Advisory Councils must present their applications in the first half of their budget year.

5.2.2. Interpretation and translation costs

In view of the multilingual nature of the Regional Advisory Councils and in the interests of contributing effectively to the cooperation and communication needs of their members, the European Union will meet the interpretation and translation costs as follows:

The overall annual amount earmarked for this action is estimated as follows: EUR100 000 for 2004, EUR 166 665 for 2005 and EUR 200 000 for subsequent years (See Annex).

The Commission will conclude an "action grant agreement" with each RAC and for each year setting the precise terms and conditions and the procedure for the grant of financing .

5.3 Methods of implementation

The Commission will be solely responsible for implementing the actions.

6. FINANCIAL IMPACT

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

(The method of calculating the total amounts shown in the table below must be explained by the breakdown in table 6.2. )

6.1.1 Financial intervention Commitments in EUR million (to three decimal places)

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

(Where there are several actions, details should be given about the practical measures to be taken for each action, needed for estimating the volume and cost of outputs)

Commitments in EUR million (to three decimal places)

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Where necessary, explain the method of calculation.

7. IMPACT ON STAFF AND ADMINISTRATIVE EXPENDITURE

7.1. Impact on human resources

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7.2 Overall financial impact of human resources

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The amounts are total expenditure for 12 months.

7.3 Other administrative expenditure deriving from the action

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The amounts are total expenditure for 12 months.

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

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The human resource and administrative needs will be covered within the allocation for the managing DG under the annual allocation procedure.

8. FOLLOW-UP AND EVALUATION

8.1 Follow-up arrangements

The Commission departments will see to it that the operating grant agreements stipulate that an annual report is required for each RAC, which will be essential for the final annual payment and the renewal of the grant for the following year. The report will include a model table determined in advance by the Commission containing some of the indicators listed under 5.1.2.

The quality of the opinions issued by the RACs and the participation of officials from DG FISH - as observers - at the meetings of the RACs will attest to the satisfactory operation and the quality of the Councils.

8.2 Arrangements and schedule for the planned evaluation

As provided for in Article 11 of this Regulation, the Commission will draw up a report on the operation of each RAC three years after it is set up.

For subsequent years, DG FISH undertakes to provide a report every three years on the operation of each RAC.

9. ANTI-FRAUD MEASURES

To prevent the risk of fraud, each RAC must appoint a certified auditor. In addition, the Commission may require the audit of an RAC at any time.

Annex to the Financial Statement (simulation)

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