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DOCUMENTS "COM"
COM(77)543
Vol.1977/0174

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(77 )543final
Brussels ,24October 1977
PROPOSAL FOR ACOUNCIL REGULATION
oncertain immediate measures toadjust capacity in
the fisheries sector
(Submitted "bytheCommission totheCouncil )
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COol(77,i 543final

ibnolanatory rrÆ.Torar.dum
Therecent action "bymany States toestablish offshore economic zones of200nautical
miles hasupset theestablished pattern offishing ofthefleets ofnon-coastal
countries which traditionally fished inthese areas .This situation also affects
theCommunity ,which haduntil nowobtained aconsiderable proportion ofitssupplies
offish outside itsownwaters .
This state ofaffairs isaggravated bythedangerously lowstocks ofseveral' species
ofahigh commercial value inhabiting Community waters andbytheprecarious
financial situation ofanumber ofvessels fishing indistant waters -.
These problems oblige theCommunity toadopt asamatter ofurgency anumber of
measures infavour ofthesector most affected bythis situation ,thehigh–sea
fishing industry .
TheCommission therefore proposes adoption ofadirective providing forfinancial
aidfor thepurpose ofadapting production capacity tothenew catch quotas and
adapting theprocessing sector engaged inproduction forpurposes other than human
consumption tothenew supply situation ,andmaking provision for actions onbehalf
oftheconsumer todevelop outlets for species that are little known onthemarket .
Theproposed directive isnotintended toestablish acomplete structural policy
inthe fisheries sector .
Although inthenewcircumstances the Community will need tobring about comprehensive
structural changes intheyears tocome ,itwould seem impossible ,andindeed
premature ,todefine andimplement such apolicy atthis stage .Uncertainties
still exist asregards future access tofishing grounds innon-member countries and
asregards thedevelopment ofthe Community system for theconservation and
management offishery resources ,theconditions ofapplication ofv;Lich will determine
therate ofrecovery ofstocks .
Theproposed measure should ,however ,enable astart tobemade with theadjustment
ofproduction andprocessing capacity tothenewsituation created .bytheextension
offishing zones to200miles .
Itwill also facilitate theimplementation ofthecatch limitation measures which
arenecessary for theconservation ofstocks .

Theproposed directive allows foraction inaddition toother measures already the
subject ofproposals from theCommission totheCouncil inthefisheries sector ,
namely restructuring thenon-industrial inshore fishing industry'' andprovisions on
conditions forthegranting ofnational aidintheabovementioned sector2 .
TheCommission considers that thework onthese twoproposals already undertaken "by
the Council should befollowed upwithout delay :
•7!oninshore fishing ,sothat aframework canbeworked outinwhich this important
part ofthefisheries sector candevelop following therelocation ofthe
Community 'sresources ;
–ontheharmonization ofnational aidwith aview todefining common rules forthe
granting ofsuch aidandensuring that itisdirected towards operations for the
redeployment and adjustment offishing andprocessing capacity ,rather than
towards newinvestment that could hinder thenecessary structural rationalization
ofthe sector .
Proposal foraCouncil Regulation onaprogramme forrestructuring thenon–industrial
inshore fishing industry COM(75)574 final .
2Proposal foraRegulation laying down theconditions forgranting national aidunder
thecommon structures policy inrespect ofthefisheries sector (R/2713/73(AGRI 732)]

Lastly ,theproposed measures serve toreinforce themeans already available
totheCommunity fortheimprovement ofprocessing andmarketing structures
foragricultural products'' ,forimprovement oftheinfrastructure inconnection
with theRegional Pond ,andinrespect ofinitial andfurther training and
retraining ofworkers inthefisheries sector under measures available through
theEuropean Social Fund .The Social Fund canprovide aid tofurther the
geographical andoccupational mobility offishermen bytaking over training
costs andproviding income support during training periods2 .
1.Adiustment ofproduction capacity
Three types ofmeasure ,allcomplementary ,areproposed .These are :
(a)redeployment ofsome ofthesurplus capacity tothefishing ofunderexploited
species andtheprospection ofnewfisheries resources ;
(b)atemporary reduction offishing activity pending therecovery ofstocks
andincase theredeployment measures donotprove adequate ;
(o)thedefinitive withdrawal from operation ofcertain vessels which cannot
beused anylonger for lack ofresources orwhich cannot beadapted to
the new situation for technical reasons .
1From 1978 onwards ,structural adjustment ofinvestment inthefish processing
sector will qualify foraidfrom theEAGGF ,Guidance Section ,under the
provisions fortheimprovement ofprocessing andmarketing ofagricultural
products (Regulation (EEC)No355/77of )•
A
Applications foraidfrom thePond maybesubmitted under Articles 4and5of
Council Decision Jl/66/EECof1February 1971 •Under Article 4,aidis
restricted topersons whocease fishing ,whereas aidundor Article 5is
restricted tofishermen who continue tofish butwho need retraining following
reorganization ofthe sector .

Thepurpose oftb3 .rrrviiros under (a)istoencourage apartial redeployment of
tnafishing effort ofhigh-sea fleets towards fishing outside theCommunity
zone onfishing under -exploited species insids theCommunity zone .These
measures -will thus reduce pressure onCommunity stocks oftraditionally fished
species ,prevent theunprofit ability offishing fleets from "being aggravated
byalower outpux perproduction unit ,while keeping theCommunity market
supplied with marine protein .
Toachieve this purpose ,this proposal provides forthegrant ofaredeployment
premium toundertakings willing tosteer their fishing activities inanew
direction .This premium will begranted byMember States fortrial fishing
seasons authorized inadvance bythese States after considering what balance
should besought between thequantity ofagiven species which itishoped to
catch and therequirements ofthe market .
Thepurpose ofthemeasures under (b)istokeep inbeing aproportion ofthe
production potential traditionally devoted totheexploitation ofstocks which
arenow subject toquantitative conservation measures implying areduction in
the overall fishing effort .
Asitislikely that theredeployment ofsurplus production capacity towards the
catching ofnewspecies will notonitsownbesufficient toresolve theproblem ,
itwould seem necessary toprovide forother measures toavoid anuncoordinated
disinvestment which might otherwise occur andmight atalater stage prejudice
theoptimum exploitation ofregenerated stocks byMember States' fishermen .
Toachieve theabove purpose ,itisproposed togrant alaying-^up premium to
fleets which agree tosuspend temporarily thefishing activity ofoneormore
vessels ,either independently orbyway ofwithdrawal plans established by

recognized producer organizations ,limiting their overall activity
Theamount ofthis laying-up premium ,calculated inrelation tothecost ofthe
initial investments (cost ofconstruction orvalue atpurchase )andincreased
where necessary bytheoost ofanymodernizations ,isintended tocover the
financial andother costs oflaying –upinaport .
Themeasures referred toat(c)have thepurpose ofallowing acertain number
ofhigfr-sea fishing vessels ,which aredifficult toadapt toother activities
andwhose technical characteristics (size ,equipment )arenotsuitable for
economically profitable fishing inCommunity waters even inthemedium term ,
tobewithdrawn from theproduction potential .
Toachieve this purpose ,byencouraging thefleets concerned tobring about a
restructuring oftheCommunity fleet inkeeping with thenewinternational
maritime context ,thepresent proposal provides forthegranting ,after the
vessels concerned have been struck offtheregister offishing vessels ,ofa
final cessation premium varying according towhether thevessel issold for
breaking ,assigned topurposes other than fishing orsold tonon-member countries .
2. Measures for the reduction oftreatment orprocessing capacity mrespect
offishery products
Thesector concerned with processing fishery products forpurposes other than
human consumption isfaced with areduction insupplies andinconsequence
with areduction intheprofitability ofits plant as aresult ofthe
conservation andmanagement measures necessary fortheregeneration ofthreatened
stocks .
Totheextent necessary ,apartial restructuring ofthis industry must therefore
take place ,either bycompletely closing down some oftheplants orby
converting plants ,forexample totreat fishery products forhuman consumption .

lias proposal therefore provides forMember States tointroduce financial aid
foroperations toreorganize the sector .
Itisproposed that thesystem offinancial aidinclude thegranting ofa
premium for theclosure ofsurplus processing capacity andapremium for
converting capacity tothetreatment offishery products forhuman consumption .
The closure premium andtheconversion premium will begranted bytheMember
States concerned either asasingle payment orinmonthly instalments while
conversion istaking place .
3.Measures topromote consumption
Even ifthebest possible use ismade ofsurplus production capacity byapartial
redirection ofthefishing effort towards theexploitation ofunder –exploited
species ,problems will still arise inthemarketing ofspecies which arenot
familiar orare unknown toconsumers .
Toovercome these difficulties ,theCommunity mast ,inparallel totheproposed
reorganization measures ,help toencourage thedevelopment ofmarkets forthese
species with aview tostimulating demand tomatoh thelikely increase insupply .
Since theCouncil hasadopted measures toencourage investment intheprocessing
andmarketing offishery products' !,further measures aimed atinforming the
consumer arenecessary ifthemeasures concerning theprocessing industry and
thefishing fleets proposed inthis directive are tobefully effective .
Inorder toavoid animbalance between supply anddemand damaging toboth consumers
andfishermen ,publicity campaigns should beundertaken using themost appropriate
media with aview toincreasing thedemand forfishery products ,inparticular the
lesser-known species offish andproducts processed from those species .
Regulation (EEC)NO355/77(OJNoL51,1977 )

-6-
4.Measures toassist fishermen
Twoofthemeasures proposed concerning fishing fleets -final cessation offishing ,
temporary reduction offishing –are "bound tohave immediate social consequences .
Implementation ofthese provisions islikely tocause long-term unemployment or
technical unemployment asthecase may "be.Although thetransfer ofsome ofthe
fishermen affected toactivities outside thefishing industry may "beaperfectly
reasonable measure initself ,itcould inthis case cause serious medium-term
difficulties once the crisis isover and itbecomes necessary toensure optimum
management ofregenerated stocks intheCommunity zone .
Consequently ,Member States will need toimplement accompanying social measures to
alleviate theconsequences ofafinal ortemporary cessation ofactivities bypart
ofthefleet .Therefore Community financing isproposed incases where Member
States introduce ascheme toencourage thedefinitive cessation offishing activities
byfishermen between 50and65,andascheme ofcessation premiums .
5»Financial ,budgetary and general provisions
(a)Financial implications
Provision ismade for theCommunity toreimburse Member States part oftheir
expenditure inrespect ofmeasures provided forunder this Directive .Community
participation amounts to50$ofeligible expenditure .
Pursuant toprocedure laid down inthis respect ,a.financial record sheet is
attached tothis proposal togive arough idea ofthelikely initial cost of
theproposed measures spread over five years .

(b)Budget présentation
The Conunission regards thepresent action asbeing ofaspecific nature and
consequently not tobeassimilated tocommon measures within themeaning of
Regulation No729/70which receive appropriations under theGuidance Section
oftheEuropean Agricultural Guidance andGuarantee Fund .
Itis,therefore ,proposed tocreate anadhocchapter representing thelayout
forthis expenditure inthebudget inwhich estimates fortheexpenditure in
question will beentered .
(c)Procedure andimplementation
For theimplementation ofthis Directive ,the Commission proposes toapply by
analogy certain implementing provisions contained inRegulation NoJ29/70-
Sothat themeasure mayhave theflexibility needed for itsadaptation tothe
particular situation ofeach Member State ,theCommission proposes that all
laws ,regulations andadministrative measures that Member States propose to
adopt should besubject toscrutiny toensure their conformity with the
purposes ofthedirective and thenecessary connection between themeasures .
This proposal therefore provides ,inorder toensure Community financial support ,
forthemeasures adopted byMember States ,fortheir prior approval bythe .
Commission after consultation with theStanding Committee fortheFisheries
Industry andwith theEAGGF Committee onthefinancial aspects .
This proposal also lays down theprocedure fortheannual submission of
applications forreimbursement ofexpenditure incurred byMember States
andforthecontrol ofoperations financed bytheCommunity .
Astheproposal isofgeneral application ,theadoption ofwhich is
notcovered byexisting instruments andwhich involves asignificant
level ofexpenditure ,theCommission believes that theconditions for
application oftheconciliation procedure arefulfilled .

Draft proposal for
COUNCIL DIRECTIVE
of
oncertain immediate measures toadjust capacity inthefisheries sector
THECOUNCIL OPTHEEUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic Community ,
andinparticular Articles 43and209thereof ,
Having regard totheproposal from theCommission ,
Having regard totheOpinion oftheEuropean Parliament \
Whereas recent changes inthe law ofthe seaand the consequent establishment
of200-mile offshore economic zones have modified the situation confronting
thefishing industry ;
Whereas thediversity ofthesocio-structural problems calls for separate
solutions foreach oneinorder tohelp maintain optimum productive
capacity ineach region andhelp develop themarket ;whereas thebest
results canbeobtained ifonthebasis ofCommunity concepts andcriteria
theMember States introduce specific socio-structural measures ,taking
theform ofafinancial aidandconsumer promotion system ,bywayof
national laws ,regulations andadministrative provisions ;
Whereas fishing fleets operating inthewaters under Member States'
jurisdiction areexperiencing difficulty because fish stocks inthese
waters aredangerously low ;
1

Whereas inthese circumstances theCommunity ,intheinterests ofboth
fishermen and .consumers ,should ,during thetime required forthe •
threatened stocks torecover ,preserve theproductive capacity ofMember
States necessary fortheoptimum exploitation ofthese stocks when they
have been replenished ;whereas thesearch fornewfishery resources ,
both within andoutside theMember States *fishing zones ,should be
promoted bywayofpremiums forthe redeployment ofexcess production
capacity ;
Whereas themaintenance oftheproduction capacity required inthemedium
term maybepromoted bymeasures designed tosecure atemporary reduction
inthefishing activities ofvessels which areliable tobecome
unprofitable because ofthe catch restrictions ;whereas aidshould be
given intheform oflaying-up premiums tofishermen whoundertake
towithdraw their vessels from operation and torecognize producers *
organizations which produce plans forreducing theamount offishing
done bytheir members ;
Whereas themaintenance ofproductive capacity does not obviate thenecessity
ofpermanently reducing the capacity offishing fleets thetechnical
characteristics ofwhich make itdifficult toadapt them tothetypes of
fishing anticipated inthemedium term within andoutside thefishing
zones oftheMember States ;whereas such reduction incapacity can
beencouraged bymeans ofacessation premium scaled according towhat
istobedone with thevessel ;whereas thegranting ofthis premium
should beconditional onthevessel first being struck offtheregister of
fishing vessels soastoensure that itisnotagain used forfishing in
thewaters ofanyMember State oftheCommunity ;
Whereas ,insofar asthesector processing fish forpurposes other than
human consumption isfacing difficulties owing todiminished supplies
asaresult ofthefisheries conservation andmanagement measures adopted
bytheCommunity ;itmaybenecessary foraction tobetaken toclose
down some ofthis excess processing capacity andpossibly also to
convert soma ofitforprocessing fishery products forhuman consumption ;

-3-
Whereas campaigns .-should bemounted "toinfluence marketdemand
inlinewiththechangedsupplysituation ,withparticular reference
tospecieslittleknowntoconsumers :
Whereasthefinalcessation offishingactivities byfishingvessels
andthetemporary reduction intheseactivities cannotfailtoaffeot
fishermen andtoleadtherefore totheadoption byMemberStatesof
measures toencourage fishermen toceasefishingandtoprovide
compensation fortemporary cessation ;
WhereasinviewofthebenefittotheCommunity ofthesesocio-structural
measuresitisappropriate thattheCommunity shouldcontribute'to their
cost;whereasitmustbeabletoascertain thattheprovisions
adoptedbytheMemberStatesai-ecommensurate withtheobjectives tobe
attained ;whereasforthispurposethereshouldbeaprocedure
wherebyclosecooperation ismaintained betweentheMemberStatesand
theCommission throughtheStanding Committee fortheFishingIndustry
andtheEAGGFCommittee isconsulted onfinancial matters aslaiddown
inArticles 11to15ofCouncilRegulation (EEC)No729/70of
21April1970onthefinancingofthecommonagricultural 'policy^;
Whereasthismeasureisofaspecific character andmaynottherefore
betreatedasacommonmeasureinconnection withtheEAGGF,Guidance
Section -,
HASADOPTED THISDIRECTIVE :
10JNoL94,28.4.1970,p.13

Article 1
1.Inorder "toassist,inthefisheries sector,theadaptation ofthe
production capacity ofthefleetsconcerned tothenewfisheries
situation resulting fromtheestablishment of200-mile offshore
economic zonesandtheactiontakentoconserve andmanagefishstocks,
andinordertoassisttheadaptation offishtreatment andprocessing
capacityforpurposes otherthanhumanconsumption tothesupply
situation resulting fromtheahoveraentioned conservation measures ,
theMemberStatesshallintroduce afinancial aidandconsumer
promotion system.
2.Thesystemreferredtoinparagraph 1shallapplyuntil
31December 1982.

Article 2
Thefinancial aidreferred -toinArtiole 1may"begrantedto:
(a)producers ,whethernaturalorlegalpersona,ortheirrecognized
organizations ,operating oneormoreshipsofalength "between
perpendiculars greaterthan24mBailingundertheflagofa
MemberStateandregistered intheterritory oftheCommunity ;
("b)naturalorlegalpersonsoperating land-based undertakings the
principal purposeofwhichisthetreatment orprocessing of
fisheryproductsfornon-foodstuff purposes .

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Article 3
The financial aidreferred toinArticle 1may oegiven ?
(a)-formeasures toredeploy fishing operations towards theprospecting
ofnew fishery resources ;
-formeasures relating tothetemporary orpermanent reduction of
production capacity#
(h)formeasures toadapt fish treatment andprocessing capacity
forpurposes other than human consumption tocatch possibilities ;
(c)forinformation campaigns topromote theconsumption oflesser-known
species offish .

-7-
TitleI:Measures fortheredeployment andadatpation
ofproduction capacity
Article 4-
1.Theredeployment offishingaotivityreferred tointhefirstindent
ofArticle3(a)may"bebroughtaboutinthefollowing ways:
(a)thereduction ofexcesscapacitytofishingforspecieswhichareat
presentunderexploited
(b)thetransferoffishingvesselstotakepartinexperimental fishing
toseeknon-exploited speciesortolocatenewfishinggrounds *
2*TheMemberStateswillgrantapplicants ,whowillhaverecievedprior
approval fromthecompetent authority ,aredeployment premiumtohelp
off-settheoperating costsforthevesselssoemployed *
3*Theredeployment premiumreferred toinparagraph 2shallbecalculated ,
foreachvessel,according tothenumberofdaysspentatsea,the
distancetothefishinggroundsandthecommercial characteristics of
thespeciessought,onthebasisofthedifference betweentheestimated
fishingcostsandtheprobable valueofthecatches.

Artici9
1.Thetemporary reduction inproduction capacity referred toin
•thesecond indent ofArticle 3(a)mayconsist ,under theconditions
laid down inArticle 6,oftemporary withdrawal from operation of
thevessels inquestion .
2.Member States shall grant ,foreaoh year oflaying up,alaying^-up
premium of&%oftheconstruction cost orpurchase value ofthevessel
plus the cost ofanymodernization undertaken .
3*Foravessel laid upforaperiod ofless than ayear ,thepremium
shall becalculated onthebasis ofthenumber ofdays laid up.
However ,ifthelaying-up period isless than 250days acoefficient
shall beapplied tothepremium totake account oftheratio between
theaverage number ofdays spent atseaandthenumber ofdays ofthe
calendar year .
4*The coefficient referred toinparagraph 3shall be0.7
5.Thelaying-up premium shall only begranted tovessels putinto
commission after 1January 1969 andiftheperiods oflaying-up are
not less than :
–90days peryear forvessels oovered bytheplans forwithdrawal
from operation provided forinArticle 6(a)
–90consecutive days peryear forvessels forwhich theundertaking
provided forinArticle 6(b)isgiven .

Article 6
Thelaying-up pranitm referred toinArticle 5(2)shall "begranted
subjeot tothefollowing conditions :
(a)inthecase ofrecognized producer organizations :
approval bythe competent authority oftheMember State concerned
ofplans forthewithdrawal from operation ofthevessels owned by
their members inorder toreduce fishing activity .Withdrawal
plans must include thefollowing information :
-the name andtechnical specifications ofthevessels concerned ;
-thewithdrawal programme for each vessel ;
-theport orports ofregistry during periods oftemporary
withdrawal ;
(b)inthecase ofother recipients :
awritten undertaking bytherecipient that thefishing activity
ofoneormore vessels owned byhimwill besuspended foragiven
period andthat anychange ofport ofregistry while thevessel or
vessels concerned arewithdrawn from operation will benotified .

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Article 7
1.Production capacity may"bereducedpermanently ,asprovided for
inthesecondindentofArticle3(a),bymeansofthefollowing
operations :
(a)thesaleofvesselsforbreaking ;
(b)theassignment ofvesselstopurposesotherthanfishing;
(c)thesaleofvesselsforuseinthewatersofnonr-member countries *
2*Subsequent totheissueofthecertificate provingthatthevessel
hasbeenstruokofftheregister offishingvessels,theMemberState
shallgranttotheownerafinalcessation premiumoft
–300u.a*pergrossregistered toninthecaseofoperations provided
forinparagraph 1(a);
–$0u.a.pergrossregistered toninthecaseofoperations provided
forinparagraph 1(b);
–300u.a*pergrossregistered toninthecaseofoperations provided
forinparagraph 1(o)•
3*Thefinalcessation premiumshallbegrantedonlyforvesselswhich
haveengagedinfishingforatleastSOdaysduringthetwelvemonths
preceding thedatewhenthevesselisstruckofftheregister of
fishingvessels.
4.Vesselswhichhavebeenthesubjectofoneoftheoperations
referredtoinparagraph 1(b)and(c)shallbepermanently barredfrom
fishinginanyMemberStateoftheCommunity *

Article 8
Whereitisnecessary toadaptthecapacityforthenon-foodstuffs
treatment Orprocessing offisheryproducts totheresources
available ,MemberStatesshallmakearrangements toprovide
financial aidfortheoperations referredtoinArticle 9.

Article 9
1.Theadaptation of -theoapacity referred totoinArticle 8may
beacheived inthefollowing ways :
(a)"bythetotal andfinal closing down ofBorne plants ;
(b)byconverting thecapacity concerned toactivities other than the
non-foodstuffs treatment orprocessing offishery produots .
2*Member States shall adopt appropriate measures toensure that the
capacity towhich theprovisions ofthepreceding paragraph have been
applied isnolonger used forthetreatment orprocessing offishery
products fornon-foodstuffs purposes *

Article 10
1.FortheactionreferredtoinArticle9(a)theMemberStateshall
grantaclosurepremiumfixedataratepertonneof
finished productandcalculated onthebasisofaverageproduction
overthethreeyearspriortotheclosure.
2*FortheactionreferredtoinArticle9(h),theMemberStateshall
grantaconversion premium *Suchpremiumshallhegrantedforthe
periodduringwhichthetreatment andprocessing facilities areout
ofuseonaocountoftheconversion work,totheextentofthe
reduction inproduction recorded ,hutnotforlongerthan12months*
Thereduction shallhecalculated byreference toaverageproduction
overthethreerearspriortotheclosure *

-14-
Article 11
Member Statesshall,"iniordertoassistconsumer choice,arrange
topublicize thechangeinsupplies duetothescarcity ofcertain
well-known speciesoffi6handtotheincreased fishingoflesser-known
species.
j

Article 12
Thepublicity measures must:
-usethemostappropriate mediaforthepurpose ;
-takeparticular account,intheinterests of"bothconsumers
andfishermen ,oftheneedtopromotethemarketing and
consumption oflesser-known speciesandtheconsumption ofproducts
processed fromthosespeoies *

TitleII-Measures to"benefit fishermen
Article 13
UndertheConditions setoutinArticle18,theCommunity shallcontribute
towards sohemessetupbyMemberStatestobenefitfishermen affected by
themeasures provided forunderTitle1andwhohavebeenemployed as
fishermen foraminimumperiodtobefixed.

TitleIII-General andfinancial provisions
Article 14
TheMemberStatesshallprepareprogrammes fortheimplementation ofthe
measuresreferredtoinTitleIand,ifnecessary ,thosereferredto
inTitleII.

-18-
Article15 j
i
I
1.TheMemberStatesshallcommunicate totheCommission :" •
: i
-theprogrammes referred ,toinArticle 14.
I
!-thedraftsofanylaws,regulations oradministrative provisions ■■■[
whichtheyproposeadoptingpursuanttothiBDirective, J
I'
I
S-anyprovisions effectively implementing thisDirective J
existingpriortothedateofitsentryintoforce.
s !
2.Incommunicating theprogrammes ,draftlaws,regulations andadministrative
provisions andtheprovisions alreadyinforcereferred toin
paragraph 1,theMemberStatesshallmakecleartheconnection ,at
regionallevel,betweenthemeasureinquestion andtheeconomic
situation andthestructural andsocialfeatures ofthefishing
industry .
3.Inthecaseoftheprogrammes anddraftscommunicated inaccordance with
paragraph"!,theCcmmisicn shalldetermine whether,havingregardtotheobjectives
ofthisDirective andtotheneedforaproperconnection betweenthe
variousmeasures ,suchdraftscomplywiththeDirective andthus
satisfythecondition forfinancial participation bytheCommunity .Withintwomonth!
following suchcommunication adecision onthemattershallbetakenin !
accordance withtheprocedure laiddowninArticle 21afterconsulting
withtheEAGGPCommittee onthefinancial aspects. "■'t
4>TheMemberStatesshallcommunicate totheCommission thelaws,
regulations andadrainistative provisions referredtoinparagraph 3 .-
immediately ontheiradoption.

Article 16
1,Themeasures adopted "bytheMemberStatesmaynotreceive
financial assistance fromtheCommunity unlesstheprovisions relating
tothemhavebeentheeubjeotofadecision inaccordance withArticle
2.Financial participation bytheCommunity shallrelatetothe
eligibleexpenditure resulting fromaidgrantedpursuanttodecisions
takenafterthedateofentryintoforceofthisDirective .

-20-
Article 17
1.Undertheconditions setoutinthefollowing paragraph ,theCommunity
shallreimburse toMemberStatestheeligible expenditure incurred
pursuant toTitleI*
2.Thefinancialparticipation oftheCommunityshallamountto50$
ofeligible expenditure .
3.Theeligibility oftheexpenditure incurredinimplementing the
measures referred toinArticle 9shallbelimitedtoanamountof:
-100u.a.pertonne,inasinglepayment,fortheclosurepremium
referredtoinArticle10(l);
-5u.a.permonthandpertonnenotproducedfortheconversion premium
referredtoinArticle10(2). --
4.Expenditure toimplement themeasuresreferredto.inArticle3(a)
inrespectofvesselsputintocommission intheCommunity after
1January1978shallnotbeeligible.
5.Thegeneralconditions forafinancial contribution bytheCommunity
shallbeadoptedbytheCouncilactingbyaqualified majority ona
proposal fromtheCommission# Thederailedrulesofapplication ,which
mayincludethefixingofalowerpercentage ,shallbeadoptedin
accordance withtheprooedure referred toinArticle 22*

Article 18
1.WhereMemberStatesintroduce schemestoencourage theearlyretirement
offishermen aged50-65yearswhoareaffected bythefinalwithdrawal from
operation ofvessels,theCommunity shallcontribute towardsthecostof
theseschemeswithinthelimitsoftheappropriations enteredforthat
purposeintheBudget.
2.WhereMemberStatesgrantcompensation forcessation ofworktofishermen
fromfishingvesselswhicharethesubjectoftheoperations provided for
inArticle 5 "thepermanent reduction providedforinArticle 7a«d
whoaretherebyforcedtemporarily intototalunemployment andthis
compensation maybeaddedtootherallowances provided undernational
legislation ,theCommunity shallcontribute towardsthecostofthis
schemewithinthelimitsoftheappropriations enteredforthatpurpose
intheBudget.
3.TheCommunity'sfinancial contribution shallnotexceed59$ofthe
expenditure declared bytheMemberState.Thegeneralconditions forafinancial
contribution bytheCommunity shallbeadopted bytheCouncilactinglya
qualified majority onaproposal fromtheCommission .Thedetailedrules
ofapplication ,whichmayinoludethefixingofalowerpercentage ,shall
beadoptedinaooordance withtheprooedure referredtoinArticle 22.

-22-
Article 19
1.Applications forreimbursement shallrelatetoexpenditure incurred
overacalendaryearbytheMemberStatesandshall "besubmittedtothe
Commission before 1September ofthefollowing year#
2.TheCommission shalltakeadecisionontheseapplications ,onone
ormoreoccasions ,inaccordance withtheprocedurelaiddownin
Article7(l)ofRegulation (EEC)No729/70.
3«Advances maybegrantedbytheCommission .
4.Detailedrulesfortheapplication ofthisArticleshallbeadopted
.inaccordance withtheprocedurelaiddowninArticle13of
Regulation (EEC)No729/70.

Article 20
1.Tiri crSia /teamaccordar )cevdth natiorsi ,crovision a1-iid dovn \v
«/
1ex*yregal avion ora^mrn is'trat ivsaction shall "take themeamiregnenes?n.rv
to :
-satisfy themselves that operations financed "bytheCommunity areactually
Couried cutandareexecuted correctly ;
-prevent anddeal with irregularities ;
-recover suras lost asaresult ofirregularities orafailure tokeep
theundertaking referred toinArticle 6(b).
/
TheMember States shall inform the Commission ofthemeasures taken for
I
those purposes and inparticular ofthe state oftheadministrative and
judicial procedures .
2.Intheabsence ofrecovery ,thefinancial consequences ofirregularities
shall "beborne laytheCommunity andtheMember States inproportion totheir
financial participation except incases ofnegligence "byadministrative
authorities oragencies ofMember States .
Thesums recovered shall "bepaid tothepaying departments oragencies
anddeducted bythem from theexpenditure financed "bytheCommunity
proportionately totherate ofCommunity financing .
3.TheCouncil ,acting byaqualified majority onaproposal from
theCommission ,shall laydown ,asnecessary ,general rules forthe
application ofthis Article *

-24-
Article 21
1.MemberStatesshallmakeavailable totheCommission allinformation
required andshalltakeallsuitable measurestofacilitate "thesupervision
whichtheCommission mayconsider necessary toundertake withinthe
framework ofthemanagement ofCommunity financing ,including inspection
visits.
2.Withoutprejudice tothesupervision effected byMemberStatesin
accordance withnational provisions laiddownbylaw,regulation or
administrative actionandwithoutprejudice totheprovisions ofArticle4
ortotheprovisions ofArticle 206oftheTreaty,ortoanyinspection
organized onthebasisofArticle209(c)oftheTreaty,agentsauthorized
bytheCommission tocarryoutinspection visitsshallhaveaccessto
thebooksandallotherdocuments relating toexpenditure financed by
theCommunity underthisDirective .Theymayinparticular check:
(a)whetheradministrative practices areinaccordance withCommunity
rulesj
(b)whethertherequisite supporting documentsexistandtallywiththe
operations financed bytheCommunity ;
*
(o)theconditions underwhichoperations financedbytheCommunity
arecarried outandchecked.
TheCommission shallgiveduenoticebeforetheinspection iscarried
outtotheMemberStateconcerned ortotheMemberStateonwhose
territoryitistotakeplace.AgentsoftheMemberStateconcerned
maytakepartintheinspection .
AttherequestoftheCommission andwith-theagreement oftheMember
State,inspections orinquiries concerning theoperations referredto
inthisDirective shallbecarriedoutbythecompetent authorities
ofthatMemberState.AgentsoftheCommission mayalsoparticipate .

Tomakeverification moreeffective "theCommission may,withthe
agreementoftheMemberStatesconcernedarrangeforadministrative
authorities ofthoseStatestoparticipate incertaininspections or
inquiries .
3.TheCouncil,acting "byaqualifiedmajorityonaproposalfrom
theCommission ,shalllaydownasnecessary ,generalrulesforthe
application ofthisArticle.

-26-
Article 22'
1.Wheretheprocedure laiddowninthisArticleistobefollowed ,
theChairman oftheStanding Committee forthePishingIndustry
shallreferthemattertotheCommittee eitheronhisowninitiative or
attherequestoftherepresentative ofaMemberState.
2.Therepresentative oftheCommission shallsubmitadraftofthe
measures tobetaken.TheCommittee shalldeliveritsOpinion onsuch
measures withinatimelimittobesetbytheChairman according to
theurgencyofthequestions underconsideration .AnOpinionshallbe
adoptedbyamajorityof41votes,thevotesofMemberStatesbeing
weightedinaccordance withArticle148(2)oftheTreaty.The
Chairman shallnotvote.
i
3*TheCommission shalladoptmeasures whichshallapplyimmediately .
However,ifthesemeasures arenotinaccordance withtheOpinionof
theStanding Committee forthePishingIndustry ,theyshallforthwith
becommunicated bytheCommission totheCouncil.Inthateventthe
Commission maydeferapplication ofthemeasures whichithasadopted -
fornotmorethanonemonthfromthedateofsuchcommunication .
• * ■
TheCouncil,actingbyaqualified majority ,maytakeadifferent
decision withinonemonth.
«

Theprovision sArticle40(2;ofFinancial Ttegulation JTo73/9
3EC,3a.ratocnnf25Api'il1973applicable tothegeneralbudget "ofthe
European Gomtnuriities andthoseofRegulation (ESC)Uo283/72
concerning irregularities and.therecovery ofsumswronglypaidin
connection withthefinancing ofthe'commonagricultural policyand
2theorganization ofaninformation systeminthisfield,shall
apply.
10JNoL116,1.5*1973,p.1.
20JNoL36.10.2.1972,p.1.

Article 2'A
TheMemberStatesshall "bringintoforcethemeasures necessary in
ordertocomplywiththisDirective within6monthsofthedateof
itsnotification .
DoneatBrussels . FortheCouncil

Fin ozalest iraate
TheCommunity high-sea fishing fleet contains about 2500vessels with agn
ofover 100tonnes cutofatotal tonnage ofabout 842000tonnes (1976).
Distribution among theMember States isasfollows :
Total No Over 1000 grt Total grt
îfo grt
Belgium 89 13592
Denmark 358 1 1500 69009
France607 30 48114 201718
Germany 151 40 96720 141069
Ireland 27 1 1921 5177
Italy 247 21 31856 91822
Netherlands 389 3 4437 88819
United Kingdom 630 43 56096 230776
Total 2498 138 240640 841982
The "breakdown bytonnage isgiven inAnnex 1.
This proposal provides forthree types ofmeasure :_
(a)Measures toencourage theredeployment offishing activity andthe
temporary ordefinitive adjustment oftheproduction captivities of
high-sea fishing fleets .
(b)Measures toencourage theadjustment ofnon-food treatment and
processing capacities .
(c)Social measures . •
(d)Measures toencourage theconsumption oflessei^-kncwn speces

mmCmm
Measures referred toin (a)
1.Redeployment offishing activity
Itisdifficult tomake avalid estimate forthis type ofoperation since the
redeployment premiums arefixed "bytheMember States depending onthenumber
ofdays spent atseainexperimental fishing andthedistance from thefishing
grounds andontheprobable catch ,which allows therelationship between
running costs andtheprobable value ofthecatch landed tobedetermined .
However ,ifredeployment of2$ofthetotal tonnage peryear isassumed ,the
following calculation maybemade :
-2$oftotal tonnage peryear «•)16800grt
corresponding to ) or
-Qfiofthetotal tonnage forthree months peryear»j67280grt
-2.5tonnes offish »average fishing capaoity peryear foreach gross
registered tonne engaged infishing .
-average value offish caught »400u.a./tintheperiod preceding the
experimental fishing .
-probable loss invalue onnewspecies ifthecatoh isidentical - to
becompensated for .
CALCULATION
16800x2.5■42000x400u.a .«16800000peryear
Total cost ofredeployment ■5of16800000x5years ■42000000u.a .
2.Laying-up ofvessels
Itshould benoted that thelaying-up measures aremainly intended tocompensate
forthereduction intheactivity ofvessels equipped foroperations within
Community waters ,about 2000inall .
Asaresult ofconservation measures ,these vessels will probably have to
reduce their fishing activity .Some sectors (herring fisheries )already have .
f

tosuspend "theiractivity whollyorinpartforseveralmonths.
Assumingthatlaying-upforaperiodof12monthscouldaffect15$ofthe
totaltonnageeachyearandsincetheaidwillhecalculated "byreference to
the"buildingcostorpurchasevalueofthevesselsconcerned ,whichmayhe
putatanaverageof2000u.a.pergrossregistered tonne("buildingcostin
1970),thefollowing estimates may"bemade:
-15$oftotaltonnageperyear*126000grt
-purchasevalueofvessels»2000u.a./t
CALCULATION
(126000i2000u.a.18$)x5years*100800000
Totalcostoflaying-up *100800000u.a.
3.Finalcessation ofactivity
Itmay"benotedthatthemeasuresproviding forthefinalcessation of
activity "bytheexcesscapacityofthehi^h-seafishingfleetBwillmainly
affectthedeep-water vesselsintendedforfishinginthewatersofnon-
membercountries .
Assumingthat20$ofthepresenttotaltonnage,orabout50$ofthetotal
tonnageofthefleetof600grtandover,isbrokenupoveraperiodof
5years,thefollowing calculation maybemade:
-20$oftotaltonnageoveraperiodof5years=168000grt
-average premium *
(premiumforbreaking upor
(saletonon-member country60$!<*■(premiumforotherusex40$)
2
«(300160$)+(50140$)-200u.a./t
CALCULATION
200u.a.x168000grt-33600000u.a.
Totalcostoffinalcessation «33600000u.a.

-4-
Measuresrefarredtoin(b)
Asregardsprocessing fornon-food purposesitislikelythattheconservation
measureswhichwillheadoptedinordertoencourage thereplenishment of
threatened fishstockswillgreatlyreducetheprofitability ofthissector.
Aperiodofadjustment willtherefore "benecessary forconverting and,where
necessary ,closing downsomeofitspresentcapacity .
However ,sincemorespeciesoflowcommercial valuewill "beavailable than
inthepastbacauseofthewithdrawal ofnon-member countries *fleetsfrom
Community fishingzones,conversion ofthenon-food processing sectormay
not"betooextensive .
Inthiscontext,thefollowing estimate mustbetakenasamaximum :
Assumingatotalreduction over5yearBof45$ofthepresentprocessing
capacity (350000tonnesoffinishedproduct),tobeobtainedbythejoint
effectoffinalcessation andthegradualconversion ofsurpluscapacity ,
thefollowing calculation maybemade:
45*350000«157000tonnesin5years.
(a)20fofinalcessation-70000t/finishedproductin5years
(*>)5$peryearx5yearsofgradualconversion-87500t/finishedproduct.
CALCULATION
(a)70000x100u.a.»7000000u.a.
(b)(17250x12monthsx5tx.a.)x5years»10500000
17500000
Totalcostofrestructuring processing faotories =17500000u.a*

Themeasures contained ,inthisproposal concernthefinalcessation of
fishing "byfishermen agedatleast50yearswhoapplytherefor ,and
tliemaintenance oftheincomeoffishermen temporarily unemployed asa
resultofthelaying–upordefinitive withdrawal fromoperation of
high-sea fishingvessels.
(a)Cessation offiBhing
Itmayheestimated thatearlyretirement annuities will "begrantedto
2500fishermen ,or10$ofthetotalworkforce inthissector(25000
fishermen).Theamountoftheannuitywillrange "between900and
1200u.a.,depending ontherecipient *smaritalstatus,theaverage
annuityworkingoutat1125u.a.(onthe"basisof75$marriedmenand
25$single).Thetotalcostofthesemeasuresistherefore :
25^0x1125x10years(averagelengthofpension)«
28125000u.a.
("b)Inoomemaintenance
About15-20$ofthetotalworkforce (4400men)will "beentitledto
compensation fortemporary cessation offishing.
Astherulesgoverning unemployment benefitvaryaccording toMember
State,noestimate canbemadeofthetotalsuminvolved .
However,thedifference betweennational unemployment benefitand
formerincomeisprobably intheregionof1000u.a.permanperyear.
Onthisbasisthetotalcostofthesemeasures is:
4400x1000u.a.x5years»22000000u.a.
Thetotalcostofmeasuresunder(a)and(b)istherefore 28125000+
22000000u.a*»50125000u.a*.roundedto50000000u.a.

-6-
Measuresreferredtoin(cjforencouraging thesaleoflesser-known species
Itshould "benotedthatthemeasures proposed ,forpublicity campaigns to
encourage thesaleoflessex^-known species,arelimitedto191$.
Theneedtopromoteincreased consumer knowledge ofthespecieswhichwill
"becaughtduringtheexperimental redeployment offishingactivitywillbe
feltmostintheinitialperiodofapplication oftheDirective .
Thefinancial estimateforthistypeofoperation mustbelimited,onthe
1linesofprevious examples ,tosettingasidealumpsumfortheabovementioned
publicity campaigns .J ..1 :
4millionunitsofaccountperyearx5years-20Mxua.
Summaryof_total_costof_pro£0£ed measures
Redeployment offishingactivities 42000000
Laying-up ofvessels 100800000 '
Pinalcessation •.■ 33600000
Finalreduction andconversion of
processing capacity 17500000
Socialmeasures " ..50000000.
Consumerpublicity campaigns 20000000
263900000u.a.
Community reimbursement
42000000χ50$=21000000 ,
100800000χ50$=50400000
33600000X50$=16800000
17500000X50$=8750000
50000000χ50$-25000000
20000000χ50$-10000000 ·
131950000
ThetotalcosttotheCommunity mayberoundedoffat132millionu.a.
CouncilRegulation (EEC)No2930/74onadvertising andpublicity campaigns
designed topromotetheconsumption ofmeat#Thesecampaigns saaycoverthe
fullperiodofapplication oftheDirective ,namely5years.

FINANCIAL STATEMENT
DATE :18October 1977
1.RELEVANT iAlJxitff HEADINGCODE *Nevhcsdinr
tTITLE OPMEASURE :^proposal foraCouncil Regulation oncertain imaediate
Measures toadjust capacities inthefisheries sector
LEGAL BASIS : Articles 43arid 209
4.OBJECTIVES S)sAdjustmentof production capacities tonewtypes ofcatch and
ofprocessing capacities fornon-food purposes -tothechanged
supply situation .Measures toencourage consumption of
lesser-kno wnBpecies .Social Measures
5.FINANCIAL IMPLICATIONS
5.0EXPENDITURE
-CHARGED TOTHE EC
BUDGET (REVENUES /
INTERVENTION S)
-CHARCED TONATIONAL
AttHNISTR .
.-CHARCED TOOTHER
NATIONAL CROUPS
5.1RECEIPTS
•-OVJN RESOURCES OP
THE EC
(LEVIES /CUSTOMS
ixrriEs )
-NATIONALrRTHEMARKETINaTEARCURHENT FINANCIAL
TEARFOLLOWING FINANCIAL
TEAR
(1979 )
20Billion tt.t *
TEAR1980TEAR1981
5.0.1 PLURLANNUAL PATTERN OF
EXPENDITURE
5.1.1 PLURIANÎJUAL PATTERN 0F
RECEIPTS30 -Billion u.a.40million u.a.
1983
20Billion u.a .'YTPÀI » 19®2
22Billion u.a.
5.2METHOD OFCALCULATION Calculation isdifficult intheabsence ofdraft laws ,
regulations oradministrative provisions designed toimplement this Directive .
Aprovisional financial estimate drawn upinaccordance with certain initial
hypotheses isattached tothis financial statement forguidance .The
pluriannual pattern ofexpenditure takes account ofthefact that expenditure ,
after aninitial period lasting about ayear ,will reach amaximum inthesecond
andthird years ,before dropping asfish stocks arereconstituted .
6.0FINANCING POSSIBLE WITH CREDITS INSCRIBED INRELEVANT CHAPTER OF
CURREHT BUDGET ? * TES/NO
6.1FINANCING POSSIBLE BTTRANSFER BETWEEN CHAPTERS OPCURRENT BUDGET ?YES/NO
6.2NECESSITY FORASUPPLEMENT ARTBUDGET ?ÏES/N0
6.3APPROPRIATIONS TOBEENTERED !in197$Budget YES/
C0MMEBTS :« ■