Brussels, 17.11.2004

COM(2004) 758 final

Proposal for a

COUNCIL REGULATION

fixing for the 2005 fishing year the guide prices and Community producer prices for certain fishery products pursuant to Regulation (EC) No 104/2000

(presented by the Commission)

EXPLANATORY MEMORANDUM

Article 18 of Regulation (EC) No 104/2000 on the common organisation of the markets in fishery and aquaculture products requires a guide price to be fixed for each of the products listed in Annex I and each of the products and groups of products listed in Annex II thereto. The calculation is made on the basis of the average of prices recorded for a significant proportion of Community output on wholesale markets or in ports during the three fishing years immediately preceding the year for which the price is fixed.

When fixing those prices, account is also taken of trends in production and demand and other factors such as the need to ensure stable market prices and support producers’ incomes and the interests of consumers.

Compared with the period 2001-2003, average prices for white fish have fallen over the period 2002-2004, with decreases of between -2% and -10% for most species. During the first half of 2004, prices for white fish were generally lower than during the same period of the previous year. In the light of this unfavourable market situation, the Commission proposes decreases in the guide prices for most species of white fish of between –0.5% and -3%. On the other hand, the Commission recommends slight increases of +0.5% and +1.5% for megrim and whiting. It is also proposed maintaining the price for spotted dogfish, plaice, hake, dab and common flounder at its current level.

As regards pelagic species, the change in average prices over 2002-2004 compared to 2001-2003 ranged from -8% to +10% for most products. While prices for mackerel and anchovies have been increasing, the situation for herring, Spanish mackerel and albacore has deteriorated. The Commission is therefore proposing increases of +1.5% and +2% (mackerel and anchovies) and decreases between –1% and -3% (herring, whole albacore and Spanish mackerel). The Commission also proposes maintaining the prices for sardines and gutted albacore.

As regards other species, in particular crustaceans, the recent market situation has been less favourable. The Commission, therefore, proposes decreases in the corresponding prices.

Prices for frozen products have tended to decrease on the international markets with the exception of sea bream and illex, for which the Commission proposes increases between +1% and +1,5%. The Commission also proposes maintaining current guide prices for Greenland halibut, hake fillets, swordfish, squids (Loligo) and common squids.

Furthermore, Article 26 of Council Regulation (EC) No 104/2000 requires a Community producer price to be fixed for tuna intended for the canning industry. The calculation is made on the basis of the average of prices recorded for a significant proportion of Community output on wholesale markets or in ports during the three fishing years immediately preceding the year for which the price is fixed.

The average Community price fell in the period 2002-2004 compared with 2001-2003. This trend persisted in the first six months of 2004. In the light of this market situation, the Commission proposes a 2% reduction in the Community producer price for 2005.

Proposal for a

COUNCIL REGULATION

fixing for the 2005 fishing year the guide prices and Community producer prices for certain fishery products pursuant to Regulation (EC) No 104/2000

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community,

Having regard to Council Regulation (EC) No 104/2000 of 17 December 1999 on the common organisation of the markets in fishery and aquaculture products[1], and in particular Article 18(3) and Article 26(1) thereof,

Having regard to the proposal from the Commission,

Whereas:

Article 18(1) and Article 26(1) of Regulation (EC) No 104/2000 provide that a guide price and a Community producer price should be fixed for each fishing year in order to determine price levels for intervention on the market for certain fisheries products.

Article 18(1) of Regulation (EC) No 104/2000 requires the guide price to be fixed for each of the products and groups of products listed in Annexes I and II to that Regulation.

On the basis of the data currently available on the prices for the products concerned and the criteria referred to in Article 18(2) of Regulation (EC) No 104/2000, the guide prices should be increased, maintained or reduced for the 2005 fishing year depending on the species.

Regulation (EC) No 104/2000 requires the Community producer price to be fixed for each of the products listed in Annex III to that Regulation. It is, however, sufficient to establish the Community producer price for only one of the products listed in Annex III to Regulation (EC) No 104/2000 since the prices for the other products may be calculated by means of the conversion factors established by Commission Regulation (EEC) No 3510/82[2].

On the basis of the criteria laid down in the first and second indent of Article 18(2) and in Article 26(1) of Regulation (EC) No 104/2000, the Community producer price for the 2005 fishing year should be reduced,

HAS ADOPTED THIS REGULATION:

Article 1

For the fishing year from 1 January to 31 December 2005, the guide prices as provided for in Article 18(1) of Regulation (EC) No 104/2000 shall be as set out in Annex I to this Regulation.

Article 2

For the fishing year from 1 January to 31 December 2005, the Community producer prices as provided for in Article 26(1) of Regulation (EC) No 104/2000 shall be as set out in Annex II to this Regulation.

Article 3

This Regulation shall enter into force on 1 January 2005.

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

Done at Brussels,

For the Council

The President

ANNEX I

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ANNEX II

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The Community producer prices for the other products listed in Annex III to Regulation (EC) No 104/2000 shall be determined by means of the conversion factors referred to in Regulation (EEC) No 3510/82.

LEGISLATIVE FINANCIAL STATEMENT

NAME OF THE PROPOSAL :

Proposal for a Council Regulation fixing the guide prices for the 2005 fishing year for fishery products listed in Annexes I and II and the Community producer price for the fishery products listed in Annex III to Regulation (EC) No 104/2000 on the common organisation of the markets in fishery and aquaculture products

ABM / ABB FRAMEWORK

Policy Area(s) concerned and associated Activity/Activities:

Policy Area 11: Fisheries

Activity ABB 11 02: Fisheries markets

BUDGET LINES

Budget lines (operational lines and related technical and administrative assistance lines (ex- B.A lines)) including headings :

11 02 01: Interventions in fishery products (18.200.000 € in the PDB 2005):

Indicative breakdown:

- Operational programmes: 6.800.000 € [3]

- Community withdrawals: 3.000.000 €

- Autonomous withdrawals and carry-overs: 2.200.000 €

- Private storage aid: 350.000 €

- Compensatory allowance for tuna: 1.700.000 €

- Community carry-overs: 4.000.000 €

- Technical assistance: 150.000 €

Duration of the action and of the financial impact:

Measures restricted to the 2005 fishing year (16.10.2004 – 16.10.2005)

Since this is a price-fixing exercise, the impact on expenditure is indirect. The expenditure in question will largely depend on developments in the market situation and on quantities landed.

Budgetary characteristics (add rows if necessary) :

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SUMMARY OF RESOURCES

Financial Resources

Summary of commitment appropriations (CA) and payment appropriations (PA)

EUR million (to 3 decimal places)

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Total indicative financial cost of intervention

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Co-financing details

If the proposal involves co-financing by Member States, or other bodies (please specify which), an estimate of the level of this co-financing should be indicated in the table below (additional lines may be added if different bodies are foreseen for the provision of the co-financing):

EUR million (to 3 decimal places)

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Compatibility with Financial Programming

( Proposal is compatible with existing financial programming.

( Proposal will entail reprogramming of the relevant heading in the financial perspective.

( Proposal may require application of the provisions of the Interinstitutional Agreement[10] (i.e. flexibility instrument or revision of the financial perspective).

Financial impact on Revenue

( Proposal has no financial implications on revenue

( Proposal has financial impact – the effect on revenue is as follows:

NB: All details and observations relating to the method of calculating the effect on revenue should be shown in a separate annex.

EUR million (to one decimal place)

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CHARACTERISTICS AND OBJECTIVES

Need to be met in the short or long term

The interventions concerning fishery products are carried out under the Common Fisheries Policy (CFP) in accordance with Article 34 of the Treaty. They aim at providing stability to the Community markets by preventing possible risks of crisis. In this context, appropriate price and supply policies are of utmost importance. The interest of the production and marketing chain and the need to strengthen the competitiveness of the sector in a context of globalisation must be taken into account. The objective of market stability together with the support to producers’ income can essentially be achieved through the different mechanisms of intervention on the markets, e.g. withdrawals, carry-over, compensatory allowance. The interest of the consumers must also be considered.

Value-added of Community involvement and coherence of the proposal with other financial instruments and possible synergy

The question of subsidiarity is not relevant to this proposal since Community intervention falls within the exclusive competence of the Community. The added value of Community intervention is directly related to the underlying arguments of the existence of a common organisation of the markets in fishery and aquaculture products.

Objectives, expected results and related indicators of the proposal in the context of the ABM framework

This proposal aims at the fixation of guide prices and Community producer price by the Council in accordance with Articles 18 and 26 of Council Regulation (EC) No 104/2000. The guide prices provide the basis for the subsequent fixing, by way of Commission Regulations, of the different parameters needed for the operation of the intervention mechanisms for the fishing year concerned. Similarly, the Community producer price forms the basis of the granting of the compensatory allowance for tuna which might be triggered depending on the development of prices on the world markets.

In order to ensure the proper functioning of the common organisation of the markets in 2005, all regulations should be adopted before the end of 2004.

Method of Implementation (indicative)

Show below the method(s)[12] chosen for the implementation of the action.

ٱ Centralised Management

( Directly by the Commission

ٱ Indirectly by delegation to:

ٱ Executive Agencies

ٱ Bodies set up by the Communities as referred to in art. 185 of the Financial Regulation

ٱ National public-sector bodies/bodies with public-service mission

ٱ Shared or decentralised management

( With Member states

ٱ With Third countries

ٱ Joint management with international organisations (please specify)

Relevant comments:

Most measures financed under the budget heading 11.02.01 are implemented in shared management with the EU Member States. However, the management of data notified by the Member States in accordance with Commission Regulation (EC) No 80/2001 is the sole responsibility of the Commission.

MONITORING AND EVALUATION

Monitoring system

The monitoring of the envisaged measures is ensured through the collection and the analysis of data notified by the Member States by way of the FIDES system in accordance with Commission Regulation (EC) No 80/2001.

Evaluation

Ex-ante evaluation

Considering the specific nature of the proposal, namely the annual fixation of certain Community prices within the framework of the current common organisation of the markets for fishery and aquaculture products, an ex-ante evaluation as defined in Article 21 (1) of Commission Regulation (EC, Euratom) No 2342/2002 laying down detailed rules for the implementation of the Financial Regulation is not required. Nevertheless, the Commission proposal is based on regular monitoring of interventions in previous fishing years and thorough analysis of the market situation for the relevant products.

Measures taken following an intermediate/ex-post evaluation (lessons learned from similar experiences in the past)

Not relevant since the intervention measures for fishery products have not yet been subject to intermediary or ex-post evaluation.

Terms and frequency of future evaluation

In accordance with Article 41 of Council Regulation (EC) No 104/2000, the Commission shall submit by 31 December 2005 to the Council and to the Parliament an evaluation report on the implementation of this Regulation.

ANTI-FRAUD MEASURES

The anti-fraud measures are in conformity with the provisions laid down in Regulation (CE) No 104/2000 and, in particular, with the provisions laid down in Regulation (EEC) No 595/91 concerning irregularities and the recovery of sums wrongly paid.

DETAILS OF RESOURCES

Objectives of the proposal in terms of their financial cost

Commitment appropriations in EUR million (to 3 decimal places)

Description of tasks deriving from the action

Sources of human resources (statutory)

(When more than one source is stated, please indicate the number of posts originating from each of the sources)

( Posts currently allocated to the management of the programme to be replaced or extended

( Posts pre-allocated within the APS/PDB exercise for year n

( Posts to be requested in the next APS/PDB procedure

( Posts to be redeployed using existing resources within the managing service (internal redeployment)

( Posts required for year n although not foreseen in the APS/PDB exercise of the year in question

Other Administrative expenditure included in reference amount (XX 01 04/05 – Expenditure on administrative management)

EUR million (to 3 decimal places)

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Financial cost of human resources and associated costs not included in the reference amount

EUR million (to 3 decimal places)

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Calculation– Officials and Temporary agents

Reference should be made to Point 8.2.1, if applicable

Calculation– Staff financed under art. XX 01 02

Reference should be made to Point 8.2.1, if applicable

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Calculation - Other administrative expenditure not included in reference amount

[1] OJ L 17, 21.1.2000, p. 22.

[2] OJ L 368, 28.12.1982, p. 27. Regulation as last amended by Regulation (EEC) No 3899/92 (OJ L 392, 31.12.1992, p. 24).

[3] Aid not affected by the fixation of the guide prices

[4] Differentiated appropriations

[5] Non-differentiated appropriations hereafter referred to as NDA

[6] Expenditure that does not fall under Chapter xx 01 of the Title xx concerned

[7] Expenditure within article xx 01 04 of Title xx.

[8] Expenditure within chapter xx 01 other than articles xx 01 04 or xx 01 05.

[9] Does not affect tasks distribution and does not require additional posts

[10] See points 19 and 24 of the Inter-institutional agreement.

[11] Additional columns should be added if necessary i.e. if the duration of the action exceeds 6 years

[12] If more than one method is indicated please provide additional details in the "Relevant comments" section of this point

[13] As described under Section 5.3

[14] Cost of which is NOT covered by the reference amount

[15] Does not affect administrative cost or staffing

[16] Cost of which is NOT covered by the reference amount

[17] Cost of which is included within the reference amount

[18] Reference should be made to the specific legislative financial statement for the Executive Agency(ies) concerned.

[19] Specify the type of committee and the group to which it belongs.