PROPOSAL FOR A COUNCIL REGULATION ( EEC ) ON THE IMPROVEMENT OF THE CONDITIONS UNDER WHICH FISHERY AND AQUACULTURE PRODUCTS ARE PROCESSED AND MARKETED
Date: 1989-05-12
Institutions: European Commission
Subjects: development policy, fishing industry, inshore fishing, sea fishing

COMMISSION  OF  THE  EUROPEAN  COMMUNITIES 

C0M(89) 187 final 

Brussels, 12 May 1989 

Proposal  for a 

COUNCIL  REGULATION (EEC) 

on the improvement  of the conditions  under  which  fishery and 

aquaculture  products are processed and marketed 

(presented by the Commission) 

PROPOSAL  FOR  A  QOCWCIL  RBOTLATIQf  O*  T HE  PBOGESfiTMR 
AM)  MARgETINS  OF  FISHER?  AND  AqPACOT/TORE PRCDOHTS 

EXPIANAIQRY  MBCRANEPM 

1. 

INTRLJLUJriCW 

The common fisheries policy defined in Article 30 of the Treaty of Rome 
encompasses an immense range of fishing activities beginning with the 
straightforward exploitation of fish stocks in a m^mpr such as to ensure a 
fair standard of living for the oammunity directly dependent on them, to 
stabilise markets and supplies and to ensure supplies at reasonable prices. 

The resulting economic activity begins therefore at sea and on fish farms 
since that is where the raw material is produced.  However, and this 
applies particularly in the case of fisheries, a long economio chain is 
formed (comprising landing, repairs, supplies, storage, eto.) that leads to 
the processing industry and the distribution network and has a considerable 
irnpact on local economies.  In order to obtain the optimum benefit from the 
cannon fisheries policy all these activities need to be properly 
coordinated. 

2.  TSS  ocMManrr  FROCTRSSUP  m w s mc 

The Community processing industry is still very diverse, with the 
differences between the Member States being linked to their Individual 
customs and uses.  It continues to be a locally-based Industry, generally 
limited to a single market, and is not designed for the Community market as 
a whole.  It is obvious, therefore, that in most oases the size and types 
of undertakings will not, in the long term, help attain the objectives of 
1992. 

Numerous changes have taken place in the processing and marketing of 
fishery and aquaculture products, notably since European consumers have set 
about cutting their intake of meat and following a more varied diet 
(consisting in particular of salads) in which fishery and aquaculture 
products can play a significant role.  In addition, the preparation of food 
differs betweeen Northern and Southern Europe.  An enlargement of the 
market could give rise to an Increase in consumption. 

1 

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There is a very distinct difference, as far as the market in frozen fish is 
concerned, between the northern and southern Community Member States.  In 
the north most of the frozen products are prepared from freshly-landed 
fish.  Processing is a more complicated operation.  Since consumption of 
fresh fish is less widespread than in the southern Community countries, the 
consumer wants foodstuffs that are more elaborate and ready to use. 

In the southern Community Member States fish for the most part is eaten 
fresh, while frozen fish is used as a substitute.  Processing amounts 
therefore to little more than gutting on board vessels.  In many cases 
processing on land consists only of packaging.  Most products are sold to 
the consumer in their original packing. 

To sum up, the European market in fishery and aquaculture products has 
various shortcomings, as do the processing and marketing sectors; these 
sectors will have to undergo change if they are to supply the single 
European market and become competitive at international level.  The 
situation in this respect is not the same as In the agriculture sector, 
where trade has already reached a higher level of development. 

The new single European market should lead to specialization on the 
prepared foodstuffs market, both in terms of the products and in the 
qiality criteria. 

3.  SZaSLLITr OF MAPKETS AND SUPPLIES  OF RAV MATERIALS 

The next question to be considered is whether the markets in and supplies 
of raw materials have remained stable since the entry into force of 
Regulation (EEC) No 355/77.  Studies indicate that the processing sector 
has not benefited from the same stability of supply of raw materials as the 
agriculture sector. 

On the contrary, between 1977 and 1988, there have been many changes on the 
markets in fishery products.  The Instability is due largely to the new 
situation created by the establishment of exclusive 200-mile economic 
zones, which has forced fleets and the main suppliers to make adjustments 
and/or to seek new fishing zones (in general, the new holders of the 
enlarged zones have not been able to replace the Member States as suppliers 
of the Community market).  Both in terms of prices and of the market, 
supplies of species such as cod, squid and herring have undergone 
fundamental change. 

3 

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The latest technologies (such as the installation of surimi production 
systems on board fishing vessels, etc.) offer new opportunities for 
exploiting blue whiting stocks, which are plentiful in the Community's 
200-mile zone, and facilitate also the exploration of resources which in 
the past were regarded as being of no economic interest whatsoever. 

4.  REFORM OF THE STUUCIDKAL FONDS 

The reform of the structural Funds provides for the speedier adjustment of 
fishery stuctures through oammon measures to improve the conditions under 
which fishery and aquaculture products are processed and marketed. 

In view of the special characteristics of the fishing industry, it is 
appropriate for such measures to be implemented under a speciflo regulation 
for the sector.  This Regulation, which is in conformity with the alms and 
provisions of Council Regulations (EEC) Nos 2052/88 and 4253/88, applies to 
all regions of the Community. 

The Regulation will be Implemented in the context of the doubling of the 
resources of the structural Funds planned between now and 1993, with the 
regions concerned by Objective 1 qualifying for a higher rate of Community 
assistance. 

5.  CCMCU7SIQNS 

1.  The  Community policy on the processing and marketing of fishery and 
aquaculture products must be incorporated in the oommon fisheries 
policy. 

2.  In the fisheries sector, processing and marketing play a major role in 

stabilizing the market and must be developed in the light of the 
current opportunities afforded by the market, and, above all, of the 
situation regarding resouroes, both now and in the future. 

3.  There is a close link between resouroes, fishing, related activities, 

the processing industry and distribution networks, with the latter two 
being of special importance for stabilizing markets and limiting the 
need for aid.  Under the common fisheries policy, instability of 
resources and structures gives rise to instability of all the other 
activities. 

4 

- 4 -

The adaptation of the sectors in question to future developments r^n g 
for a certain degree of flexibility that can only be provided by a 
separate regulation on the processing and marketing of fishery 
products. 

4.  Facilities for the processing and marketing of fishery and aquaculture 
products should be developed in step with other structural measures 
under the common fisheries policy in order to absorb any workers in the 
fisheries sector who may lose their jobs, to consolidate fishing 
activities and to establish a core of internal growth and of 
import/export industries.  Since fishing and aquaculture activities are 
usually located and concentrated in sensitive areas, such development 
would be entirely in keeping with the spirit of the reform of the 
structural Funds. 

5.  Such a policy could never be developed at local level.  TO ensure 
adequate coordination, the common fisheries policy can only be 
successfully Implemented at Community level since it encompasses 
resources which, even internally, are exploited in areas far removed 
from sensitive regions.  This applies even more as regards 
non-Community resources, which are the subject of multilatéral 
negotiations, and as regards trade in fish, which is currently 
witnessing considerable growth. 

3.  For all these reasons, it is essential not only that the policy for the 
processing and marketing of fishery and aquaculture products be tied in 
closely with the other aspects of the structural policy for fisheries, 
hut also that coordination be established at Community level, which 
will ensure the lasting and harmonious development of the sector only 
if a specific regulation is adopted. 

7.  It is proposed therefore that a specific regulation be implemented on 
the iinproveroent of the conditions under which fishery and aquaculture 
products are processed and marketed, taking account both of the alms of 
the reform of the Funds, in particular of the concentration of 
financial resources in certain regions of the Community, and of the 
specific nature of the fisheries sector, and in particular of the link 
to be established with Regulation (EEC) No 4028/86 on Community 
measures for Improving and adapting structures in the fisheries and 
aquaculture sector. 

5 

Proposal  for a 

COUNCIL RBG0LAT1CN (EEC) 

on the improvement of the conditions under which fishery 
and aquaculture products are processed and marketed 

THE COUNCIL OF THE EUROPEAN OQUMDNinES, 

Having regard to the Treaty establishing the European Economie Community, 
and in particular Articles 42 and 43 thereof, 

Having regard to the proposal from the Commission, 

Having regard to the opinion of the European Parliament, 

Having regard to the opinion of the Economic and Social Committee, 

Whereas on 20 January 1989 the European Parliament adopted a resolution on 
the fishery products processing industry; 

1 

Whereas, within the framework of the reform of the Structural Funds, the 
Council has adopted: 

-  Council  Regulation  (EEC)  No 2052/88 of  24  June  1988,  on  the  tasks  of  the  Structural  Funds and 

their  effectiveness  and on coordination  of  their  activities  between 
themselves  and with  the  operation  of  the  European Investment  Bank and 
the  other  existing  financial  instruments  ; 

- 

Council  Regulation.(EEC)  No 4253/88 of  19 December  1988-  laying  down provisions  for  inplenentinq 
Regulation  (EEC) No 2052/86 as  regards  coordination  of  the  activities  or 
* 
the different  Structural  Funds between themselves  and with  the 
operations  of  the  European Investment  Bank and the  other  existing 
financial  instruments  ; 

Council  Regulation  (EEC)  No 4254/88 of  19  December  1988.  laying  down provisions  for  irolemen 
Regulation  (EEC) No 2052/68 as  regards  the  European Regional DercèloiûenT iting 
Fund** 

Council  Regulation  (EEC)  No 4255/88 of  19 December  1988,  laying  down provisions  for  implementing 
Regulation  (EEC) No 2052/88 as  regards  the  European Social  Fund 5. 

Council  Regulation  (EEC)  No 4256/88 of_19  December .1988.  laying  downorovisions ior  implementina 
Regulation  (EEC) No 2052/88 as  regards  the  ^aroi^^rlo^tu¥alor  lmPlementln9 
Guidance and Guarantee Fund (EAGGF) Guidance Section6; 

OJ  No  C  4 7,  2 7 . 2 . 1 9 8 8,  p.  1 7 6. 
30J  No  L  185,  1 5 . 7 . 1 9 8 8,  p.  9. 
,0J  No  L  374,  3 1 . 1 2 . 1 9 8 8,  p.  1. 
50J  No  L  374,  3 1 . 1 2 . 1 9 8 8,  p.  15. 
60J  No  L  374,  3 1 . 1 2 . 1 9 8 8,  p.  2 1. 
OJ  No  L  3 7 4,  3 1 . 1 2 . 1 9 8 8,  p.  2 5. 

- 2 -

Whereas Article 10 of Regulation (EEC) No 4256/88 provides that the Council 
is to decide by 31 December 1969 at the latest on the forms of and the 
conditions for the Fund contribution to measures to improve the conditions 
under which fishery products are processed and marketed; 

Whereas, following the adoption of the Regulations on the reform of the 
Structural Funds, Council Regulation  (EEC) No 355/77 must  be replaced 
by a new  regulation; 

Whereas, in order to incorporate the improvement of the conditions under 
which fishery and aquaculture products are processed and marketed in the 
common fisheries policy, it has become necessary to adopt a separate 
specific regulation; 

Whereas the adoption of a separate regulation is in accordance with  Counci l 
Regulation (BCSC, EBC, Euratom) No 2049/88 of 24 June 1988 amending the 
Financial Regulation of 21 December  1977 applicable to the general, budget 
of the European Communities  and entails the application of stricter rules 
for Improving transparency and financial management; 

Whereas Title I of Regulation (EBC) No 4256/88 on the speeding up of the 
adjustment of agricultural structures with a view to the reform of the 
common agricultural policy concerns measures for improving the processing 
and marketing of fishery products; 

Whereas these measures for improving the processing and marketing of 
fishery products are to be Implemented as part of Objective 5(a) of 
Regulation (EBC) No 2052/88 in order to speed up the adjustment of fishery 
and aquaculture structures in all Member States; 

Whereas Community measures for Improving and adapting structures in the 
fishery and aquaculture sector were adopted at Community level by  ccunci I 
Regulation (EEC) No 4028/868; whereas the processing and marketing of 
fishery and aquaculture products are activities appertaining to structural 
policy and form an essential component  thereof; 

Whereas the improvement of the processing and marketing of fishery and 
aquaculture products, and in particular the improvement of the salubrity, 
quality and presentation of such products may open up more outlets, enhance 
the value of the products oonoerned and thereby help to increase the 
productivity of fisheries and aquaculture, and to stabilize prices; 

70J No L 185, 15.7.1988, p. 3. 
3& No L 376, 31.12.1986, p. 7. 

> 

- 3 -

whereas the common fisheries policy  v:,z  deslgi*ed to be managed and 
jjnplemented at Member State level ard. vbarat.s stejs must therefore be taken 
to ensure that measures relating to the jiroc easing and marketing of fishery 
and aquaculture products are consistent \d.th the common fisheries policy; 

Whereas the contlnuiDg Improvement of structures in the sector is essential 
to the harmonious development of a common fisheries policy and thus 
represents a means of attaining, in the sector, the objectives set out in 
Article 39(1)(a), (b) and (d) of the Treaty;  whereas structural measures 
for achieving this Improvement must  therefore be based on a Community 
approach and criteria; 

Whereas the basio guidelines of the new structural policy for fisheries and 
aquaculture must not only take account of the results obtained and 
experience gained in the past, but must be defined in terms of the new 
situation obtaining in the sector, which has become more important since 
the accession of Spain and Portugal to the Community; 

Whereas the sectoral objectives of the common fisheries policy must 
contribute to the harmonious development of the Community, to the 
strengthening of its economic and social cohesion and, in particular, to 
the speedier advancement of the less favoured and less developed regions; 

Whereas, furthermore, in accordance with Article 39(2) of the Treaty, -the 
structural policy must take ample account of the economic and social 
environment of the sector and must allow scope for adaptation, if 
necessary, in the light of the diversity or seriousness of oertain 
structural problems at regional level; 

Whereas the measures laid down must be In step with the requirements of 
environmental protection; 

Whereas, in the Implementation of this Regulation, the Commission will be 
assista by the Standing Committee on the Fishing Industry set up by 
Article 47 Of Regulation (EEC) No 4028/86, 

y 

HAS ADOPTS)  ŒES  R33ILATICH: 

-  4  -

ArUQle 1 
Cbjeotjvejs 

1.  Within the framework of the reform of the Structural Funds provided 
for in Regulation (EEC) No 2052/88 and In order to facilitate the 
adaptation of the conditions under which fishery and agriculture products 
are marketed and processed to the development of the common fisheries 
policy, a common measure within the meaning of Article 2 of Regulation 
(EEC) No 4256/88 is hereby established in order to Improve the conditions 
under which fishery and aquaculture products are processed and marketed. 
Under this measure, the Community may participate in the financing of 
investments which: 

(a) contribute to the economic and social cohesion of the Community; 

(b) take account of the needs of the less favoured regions; 

(c) help to direct production and processing towards the objectives pursued 
by the common fisheries policy through the structural measures provided for 
in Regulation  (EEC) No 4028/86; 

(d) improve, In the long term, the marketing and processing structures for 
fishery and aquaculture products; 

Ce) improve the marketing and distribution networks for fishery and 
aquaculture products; 

(f) help to improve the salubrity, quality, preservation and packaging of 
products, or contribute to the better use of by-products; 

Cg) promote technical innovation, and the processing and marketing of new 
or underexploited species; 

(h) help to adapt processed products to consumer demand; 

Ci) contribute to market stability for fishery and aquaculture products; 

Cj) help to ensure the regular supply of raw materials to the fishery and 
aquaculture product processing sector, or enable such supplies to be 
mod.1 fled by a more flexible production process. 

f 

- 5 -

2.  The primary aim of the common measure shall be to contribute towards 
the achievement of Objective 5Ca) defined in Article 1 of Regulation CEBC) 
No 2052/88 by speeding up the adjustment of fishery and aquaculture 
structures to the development of the common fisheries policy, in accordance 
•y-ith the oorditiens laid down in Regulation (SBC) No 4256/88. 

:. 

1^L3 ccrjrcn ssasu!^ shall ^^pl? to the entire CcmEunity. 

Z^s  ocEson s'sacur-e  ii&H  l:s iu keepir- *ith the datai!3&  irclzs  -for» the' 

1. 
•ipplic&cicn of CSocsunity measures.  It shall complement national measures 
of a similar nature and contribute to their Implementation within the 
framework of the partnership between the Community and the Member States 
defined in Article 4 of Regulation CEBC) No 2052/86. 

TXXUZ I 

SBCTORAL PIANS 

Article a 

In order to Improve the processing and marketing of fishery and aquaculture 
products, each Member State shall prepare a sectoral plan covering the 
entire fisheries and aquaculture sector. Plans must be drawn up at national 
level, must group together In a coordinated way all the regional plans of 
the Member State concerned, In order to ensure the effective Integration, 
planning and management of the processing and marketing of fishery and 
aquaculture products, and must be devised In such a way as to: 

-  create a viable industry which is in conformity with Community policies 
and in particular with the oommon fisheries policy, which takes account 
of the foreseeable trend of raw materials supplies In the medium term 
and which is in step with fishery activities and structures 1A the area 
in question; 

-  develop and adapt facilities for the processing and marketing of fishery 
and aquaculture products In order to obtain maximum added value and to 
satisfy the requirements of pcroduoers and consumer demand; 

-  take account of the socio-economic needs of the fishing industry and of 

the Impact of this Regulation. 

y/O 

- 6 -

Article 3 
Octant of fleotroml plans. 

1.  Sectoral plans must contain a description of the history and present 
situation as regards the processing and marketing of fishery and 
ao^iaculture products. 

2.  Sectoral plans must give details of the requirements of the sector and 
of the means which will be deployed to satisfy those requirements and to 
justify Community assistance. 

3.  Sectoral plans must give particulars also of the policies implemented 
by the Member State during the period of validity of the plan and give 
details of the objectives and the financing plan. 

4.  The period envisaged for Implementing the plan must not exceed 
five years. 

5.  An outline of the sectoral plan and of the minimum information which 
it must contain are shown in the Annex. 

Article 4 
nprtAtHT^ *Trf T WI  anntmLl  p1*n« 

If the period originally determined by a Member State for implementing a 
sectoral plan has expired, or if a significant modification must be made to 
it, a new sectoral plan or updated plan must be drawn up, containing, in 
addition to the information referred to In Article 3, a report showing: 

Ca) the progress achieved as against the forecasts in the earlier plan, in 
particular regarding the availability of public funds; 

Cb) the development of the situation regarding the processing and marketing 
of products, and the need to update the plan or to prepare a new one. 

Article B 
ProoftihiTft  frnr  tdhn Intro^ritlnn  of  ftrrfriml  p1«nn 
VA  *>*> Ajppvw^i  r*  rv—tt^ty  support  fmmewnrkH 
1.  The  initial  sectoral  plans  must  be  submitted  to  the  Commission by  the 
Member State  by  31  March  1990. 

The dates  for  the  submission  of  subsequent  plans  or  of  adjustments  to 
existing  plans  shall  be  fixed  by  the  Commission In  agreement  with  the 
Member State  concerned. 

V-7 

- 7 -

2.  Decisions concerning the Community support frameworks for fishery and 
aquaculture products shall be taken by the Commission, on the basis of the 
sectoral plans, within six months in accordance with Article 11 of 
Regulation CEBC) No 2052/88 and Article 8 of Regulation CEBC) No 4253/88 
and in accordance with the procedure laid down in Article 29 of Regulation 
(EEC) No 4253/88.  For this purpose the Commission shall seek the opinion 
of the Standing Committee on the Fishing Industry set up by Article 47 of 
Regulation CEBC) No 4028/86. 

3.  As part of the approval procedure, the Commission shall see to it that 
the Community support frameworks are compatible with the priorities of the 
Community policies and in particular with those of the common fisheries 
policy. 

4.  Measures falling within the scope of this Regulation may be taken into 
consideration by the Commission when establishing the Community support 
frameworks for areas covered by Objectives 1, 2 and 5(b), as provided for 
in Title III of Regulation CEBC) No 4253/88.  Such measures must be In 
conformity with the provisions of this Regulation. 

In such oases, the Commission, before adopting its decision, shall consult 
In respect of the Community support frameworks, the Standing Committee on 
the Fishing Industry set up by Article 47 of Regulation CEBC) No 4028/86. 

TITLE  H 

OPBRATIOHAL  PROGRAMMES, 
GLOBAL  GRANTS,  SDTTAHLB  HOJHCTS 

ATftlfflft  ft 

1.  For the purposes of the application of this Regulation, Community 
assistance shall be provided In one of the following forms: 

-  part-financing of operational programmes; 

-  provision of global grants; 

-  part-financing of suitable projects; 

-  support for pilot and demonstration projects and for technical 

assistance and studies in preparation for operations, 

as shown In Article 5(2) of Regulation CEBC) No 2062/88. 

/Il 

- 8 -
Th3 pai"t-firpzcing of operational  programmes and the provision of 

2. 
global grants shall constitute the main forms of assistance. 

3.  Part-financing may also be granted for suitable projects, but only 
where they relate to new production units.  In this case the thresholds 
referred to in Article 16C2) of Regulation CEBC) No 4253/88 shall not 
apply. 

In addition, limited financial aid shall be provided for In respect of 
studies fyd pilot  w*  demonstration projects yrf for 'fc^rfrmina.i assistance. 

ArJdcieJZ 
Pllot/drtamHlimtJOD projects, teohnlml  Afffrtfrtawnft, fftnrilfis 

Community financial support of up to 1% of the annual budgeted 
amount  may, 
No 4256/88, cover: 

in accordance with Article 8 of Regulation  CEBC) 

-  pilot or demonstration projects for the processing or marketing of 

species, especially new ones; 

-  technical assistance and the necessary preparatory studies; 

-  studies to assess the effectiveness of the measures provided for by this 

Regulation. 

ArjàoiûJi 
AppllOAtlnnR for flfffrtfrtaaoa 

1.  Applications for assistance shall be drawn up in accordance with the 
conditions laid down in  Articles 14(1) and 16(1) of Regulation  CEBC) 
No 4253/88 and shall be submitted to the Commission by the Member State or 
by any body the  latter may designate to do so. 

Applications shall relate to one of the forms of assistance provided for in 
Article 6 CD  of this Regulation  and shall be compatible  with the  Community 
support  framework  adopted by the  Commission. 

Member States shall submit, with the applications for assistance, a 
description of the national management and oontrol arrangements applicable 
to them. 

/)!> 

- 9 -

2.  Applications shall contain the information necessary for the 
Commission to: 

-  assess the oonf ormity of the proposed measures with the Community 

policies, in particular the common fisheries policy; 

-  assess the contribution of the proposed measure to the improvement of 

the processing and marketing structures, the consistency of the 
constituent measures, and their conformity with the Community support 
framework it has approved and the selection priorities; 

-  check that the implementing and financing procedures will ensure the 

effective implementation of the measure; 

-  determine the precise nature of the assistance it will have to provide; 

-  evaluate the overall impact on the environment and the means available 

for offsetting or reducing any adverse effects. 

TITUS  HI 

INVESTMENTS, KUtilHI U'lY, SELBCTTCN 

Article Q 
IVJflP. Of lllVHHlflHltP. 

Measures Implemented under this Regulation shall be public  semi-public or 
private investments, In respect of fishery and aquaculture products, 
covering, in whole or in part, premises and/or equipment Intended in 
particular for the development or rationalization of facilities for 
cutting, filleting, the removal of heads, evisceration and skinning, and 
for canning, smoking, cooking and packaging of products for retail sale, 
and for auction markets, and facilities for the storage, cold storage, 
deepfreezing and bulk packaging of the products.  They shall also Include 
facilities, Including those for water filtration, and equipment required 
for processing and marketing from the time of landing from fishing vessels 
in ports to final consumption. 

</* 

- 10 -

1. The Investments defined in Article 9 shall be eligible for Community 
assistance throughout the Community. 

2. However, in order to be eligible for such assistance, investments, must: 

-  belong to one of the classes defined In Article 9; 

-  form an integral part of a Community support framework and contribute to 
the lasting economic effect of the structural improvement provided for 
therein; 

-  offer adequate assurances of technical and economic viability; 

-  guarantee permanently the Community origin of the bulk of the raw 

materials. 

Investments shall not be eligible which concern: 

-  fishery and aquaculture products intended to be used and processed for 
purposes other than human consumption (except investments intended 
solely for the treatment, processing or marketing of fishery wastes); 

-  the retail sector; 

-  work begun before the date of receipt by the Commission of the 

application for assistance; 

-  products other than those listed in Annex II to the Treaty.  The 

Commission may, however, allow investments concerning other products 
provided that the bfpgf 1 <H 4W*1 f*p of the assistance have direct 
contractual links with the producers of basio fishery and aquaculture 
products. 

•/r 

- 11 -

3 • Within the framework of the investments referred to in paragraph 1, 
costs may be eligible for funding if they relate to: 

(a) 

(b) 

(c) 

the construction and acquisition of immovable property, other than 
the purchase of land; 

the acquisition of new machinery and equipment, iTvVhv^ng 
computers, software and computer programs; 

overheads such as fees for architects, engineers and consultants, 
the cost of feasibility studies and contingencies up to 12% of the 
costs referred to in points (a) and (b) above. 

Article 11 
Selection priorities 

The Investments must ensure the rational development of the processing and 
marketing of fishery and aquaculture products and guarantee producers of 
basic products a satisfactory and lasting share of the economic benefits 
arising from them. 

In general, priority  shall be given to investments which oonoern: 

-  the modernization and rationalization of auction markets and halls for 
the first-hand sale of products landed by vessels flying the flag of a 
Member State; 

-  the storage, smoking and handling of fishery and aquaculture products; 

-  facilities for preparation for first-hand sale and filleting of fresh 

fish; 

-  the preparation of finished products from fish which has been caught and 

deepfrozen on board vessels flying the flag of a  Member state; 

-  undertakings producing preserved products provided that they are 

production units which are technically advanced, eoonomioally viable and 
capable of withstanding free international competition; 

-  the development of new products and new technologies based in particular 

on the results of the research, pilot and demonstration projects; 

-  the Improvement of the quality and hygiene of production processes; 

-  the enhancement of the added value of products; 

-  producers of basic products, producers' groups or associations thereof, 

and coopératives. 

Article 12 

1. Community assistance shall be granted to natural or legal persons or 
groups of persons responsible for investments. 

2. Community assistance shall be paid In accordance with the conditions 
laid down in Article 15: 

/?& 

- 12 -

-  by the authorities designated pursuant to Article 14(1) of Regulation 

-  by the intermediaries designated pursuant to Article 16(1) of Regulation 

(EEC) No 4253/88, OT 

(EBC) No 4253/88. 

Article 13 
Dfifrtfrtnnfi  granting  vrrlfrtanoft  anl  ludgfttAry,  orwnltinflntB 

1. The Commission Shall decide upon granting assistance. 

2. The decisions referred to in paragraph 1 shall be notified to the 

authority or intermediary referred to in Articles 14(1) and 16(1) of 
Regulation (EBC) No 4253/88 and to the Manner State concerned. 

3. In the oase of multiannual measures, the authority or intermediary 
referred to in paragraph 2 shall send the Commission each year the 
Information necessary to enable the commitment to be effected in the 
annual instalments provided for in Article 20(2) of Regulation (EBC) 
No 4253/88 and to check the conformity of the investments with the 
decisions referred to in paragraph 1 and in Article 5(2) and (4) of this Regulation. 

TITLE IV 

F D W d AL  AND GENERAL  PROVISIONS 

ArtilOlft  14 
Bates,  of  vrrtfTtianPft 

1.  Assistance  may not  exceed,  In relation  to  the  eligible  oosts  of  the 

Investments: 

(a)  50% In  the  regions  concerned by Objective  1; 
(b)  30% In  other  regions. 

2.  In general,  aid  shall  be In the  form of  capital  grants.  If  it  is  In a 
different  form it  may not  exoood  the  equivalent  of  the  capital  grant 
referred  to  above. 

/7f 

- 13 -

3. The Member States concents! shall finanoe at least 5% of the eligible 

costs of the investments accepted by the Commission for the grant of the 
assistance. 

4. The contribution of the beneficiaries referred to in Article 12(1), in 
relation to the eligible costs of the investments accepted, shall be at 
least: 

(a)  25% in the areas oonoerned by Objective 1 ; 
(b)  45% in other areas. 

5. Member States may, within the limits set by the scope of this 
Regulation, adopt additional aid measures which are subject to 
conditions or rules other than those laid down herein, or which involve 
an amount In excess of the maximum amounts referred to in this Article provided 
that they are in conformity with the provisions of Articles 92 to &  of 
the EEC Treaty. 

Article 10 

1. The amount of the advances or balances which must be paid in accordance 
with Article 21 of Regulation (EEC) No 4253/88 shall be paid to the 
authority designated pursuant to Article 14(1) of Regulation (EEC) 
No 4253/88 or, where appropriate, to the intermediary referred to in 
Article 16(1) of that Regulation. 

Payment of the balance shall be made only after the financial 
contribution of the Member States, provided for in Article 14(3) of this 
Regulation, has been paid to the final beneficiaries. 

2. The authority or Intermediary referred to in paragraph 1 shall check the 
documents supporting the final expenditure of the beneficiaries and 
shall see to it that there are no irregularities before the Community 
assistance is paid.  It shall also carry out on-the-spot checks in order 
to verify that the information contained in the aid application 
corresponds to the true situation.  Payment to the beneficiary must be 
made within four weeks of submission of the application provided that 
the latter Is accompanied by all the documents necessary for 

the effective nature of the expenditure. 

41 

-  14  -

3.  At  the  end  of  each  quarter  the  authority  or  intermediary  referred  to 
in  paragraph  1  shall  transmit  to  the  Commission  a  l i st  of  the  payments made 
to  beneficiaries  with  particulars  of  the  supporting  documents  in  i ts 
possession. 

4.  A progress  report  Shall  be  transmitted  by the authority  or  intermediary  referred 
to  in paragraph 1 to the Commission every  six months. 

Article 18 

1.  The authority designated pursuant to Article 14(1) of Regulation  (EEC) 
No 4253/88, or, where appropriate the intermediary referred to in 
Article 16(1) of that Regulation, shall transmit to the Commission, at its 
request, all supporting documents and evidence for establishing that the 
financial or other conditions have been met.  The Commission may carry out 
on-the-spot checks. 

The Commission may decide to suspend, reduce or discontinue its 

2. 
assistance if: 

-  the investments have not been carried out as envisaged; 

-  certain conditions laid down in the Commission decision referred to in 

Article 13(1) have not been fulfilled; 

-  the implementation periods have not been observed. 

Such a decision shall be notified to the Member State concerned and to 

the authority designated pursuant to Article 14(1) of Regulation (EEC) 
No 4253/88 or, where appropriate, the intermediary referred to in 
Article 16(1) of that Regulation. 

Arlilolft 17 

The monitoring and assessment of the financial measures provided for herein 
shall be carried out In accordance with Articles 25 and 26 of Regulation 
(EEC) NO 4253/88. 

, •; 

-  15 -

Article lfi 

All references in other  acts to Regulation (EEC) No 355/77 and relating to 
fisheries shall be replaced by references to this Regulation. 

Article la^ 

Until  31 December  1990, projects may be submitted  in 

1. 
accordance with  Regulation  (EEC) No 355/77. 

2.  Projects presented in 1990 under Regulation (EBC) No 355/77 which do 
not form part of a sectoral plan shall be considered, until 30 June 1991, 
for the purposes of the grant of assistance under that Regulation. 

3.  Specific programmes have been approved for Member States under 
Regulation (EBC) No 355/77. * On their expiry and at the time of their 
review, they will be replaced by Community support frameworks which will 
enter into force on 1 January 1991 at the latest. 

Article J8Q 

This Regulation shall enter into force on 1 January 1990. 

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

° °ne  a t' 

For the Council 

I 

OBBBL 

OUTLINE  SBCTORAL  FLAN 

A. 

FISHERIES 

l.  Oflnflml  dft=K?rlpUoQ  of  the,  arm 

-  geographical configuration; 
-  demographio structure; 
-  main eoonomlo Indicators; 
-  level of employment; 
-  gross regional product (composition and trends); 
-  Importance of fisheries to the general economy of the region. 

2. 

rtetAllfld  dftwrrHptlnn  nf  flfihgrlflg  il7} f£*>  rffjfiip 

2.1  Wfthii-y  n*»+. 

(a) types of vessel, characteristics, types of fishing gear used; 

(b) employment directly linked with the fishing fleet; 

(c) area of activity of the fishing fleet in the short, medium and long 
term;  development trends of resources in terms of yield;  information 
sources used for evaluating these trends; 

(d) development of the fishing fleet in the region following the 
Implementation of the multlannual guidance programme defined in Regulation 
(EEC) No 4026/86, and impact on capacity and future landings. 

i 

2.2  Porte  and  l a n ^ ry 

fâfm 

-  2  -

(a) description of fishing ports (location, size); 

(b) complete breakdown of main species landed; 

(c) description of facilities, current needs and problems In each port. 

2.3  Auctions 

Number, capacity, location and extent of use of auctions;  species sold; 
current shortcomings due to lack of concentration of sales;  shortcomings 
attributable to the Inadequacy of facilities and equipment or other 
factors. 

2.4  OnldfitOTft capacity of thft a rm 

Location and capacity of ooldstore facilities in the area;  turnover 
(annual volume of entries and exits of goods);  types of product stored. 
Inadequacy of capacity for storing the production of local or other fleets. 
Storage of products from other regions (differentiating between Community 
and nonHDommunity products):  types and quantities of products stored for 
processing;  description of problems and of shortcomings. 

2 .5  PftlA-ted  «ftrttnrfl 

Description of related sectors In the region (sMpyards, repair workshops, 
supply stores) and Impact of the local fleet on their economy. 

21 

B. 

A(grWJ.miUKE 

-  3  -

1. 

ftetAilfld dAgnrHptT1rm  nf 

f ^ y ^ }} frurft 1.11 tJlft rflglm 

(a) Outline of the aquaculture sector, present situation and outlook 
(requirements, plans); 

(b) Description of the type of facilities, their capacity and methods of 
production; 

(c) Description of the types and quantities of products for which 

aquaculture production could supply the raw material; 

(d) Description of the quality of the waters concerned, means used for 

obtaining an appropriate quality of water for fishfarming In aooordanoe 

with Directive 79/923. 

c 

«aassiAC  AND  MAEKKTBG 

1. 

£TOOjQfiS2n£ 

Detailed figures for the sector (number of undertakings, types of products 
processed);  present sources of raw materials;  problems Involving the 
ability of the industry to oompete with other Industries inside and outside 
the Community;  current problems relating to equipment and sources of raw 
materials;  full description of the present situation and outlook for the 
various types of fishery and aquaculture products. 

2.  ifcxkeiiDg 

Detailed figures for the sector (number of undertakings, type of 
marketing) ;  description of future sales and marketing strategies for the 
various types of fishery and aquaculture product. 

12 

- 4 -

D.  AIMS OF THE PROGRAMME AHD RESORTS HKpmjiw FOR  TER FEKDQD IN QUBBTIUI 

A detailed description should be given of the aims to be achieved for 
remedying the abovementioned shortcomings, and particulars «hCTld be given 
of the way in which the various sectors will be affected. 

A list should also be given of the legal, financial or other measures 
planned by the Member State for developing the processing and marketing 
sector, as well as the number and type of projects to be presented under 
the programme. 

The desired level of Community funding should also be specified, together 
with the consequences of a total or partial refusal.  A financing plan 
must be prepared for this purpose. 

Lastly, details should  he  given of why the objectives have been set, the 
way In which they will benefit the region and the quantitative effect of 
their implementation on the regional eoonomy. 

B.  BBGKATXCN 

(a) Definition of the geographical areas in which fisheries and aquaculture 
are significant;  history of the processing and marketing sector and the 
reasons for its present geographical location; 

(b) a survey of the present situation and a description of past and future 
trends justifying the action, particularly as regards: 

-  the eoonomlo and social situation of the area In general, in so far as 

it Is of Importance to the sectoral plan, and in parti oui AT the 
fisheries and aquaculture sector; 

-  the importance of fishing and/or aquaculture to the eoonomy; 

-  the situation as regards the processing and marketing of fishery and/or 

aquaculture products, in particular the present capacity of the 
undertakings in question and their geographical distribution; 

M 

- 5 -

(c) the needs which the plan must answer and its objectives, in particular 
the number, nature and size of the processing units, storage facilities and 
auctions, but also the number of jobs likely to be created, and the species 
and quantities of raw materials for processing; 

(d) the means deployed to improve salubrious conditions at each stage of 

the  processing and marketing of fishery and aquaculture products; 

(e) the marketing and sales strategies proposed for the processed products; 

(f) the means envisaged for attaining the objectives of the plan, in 
particular the total amount of the investments and the financial 
contribution of the Member State; 

(g) the relationships, coordination and links of the sectoral plan with 
other national and Community programmes in the area, and in particular, 
with the measures provided for in  Regulation (EBC) No 4028/66 on Community 
measures to improve and adapt structures in the fisheries and aquaculture 
sector; 

(h) a description of the nature of and detailed provisions relating to 
national aid, and relevant national and regional legislation; 

(i) an illustrative list of the investments and other measures liable to be 
funded as part of the plan (the Commission will decide later on the 
information to be provided in respect of each Investment); 

(j) national criteria for selecting investments not referred to above since 
it cannot be expected that a sectoral plan will describe in detail all the 
investments proposed for funding during its period of validity; 

2S 

- 6 -

(k) an indication of the way in which investments liable to be funded will 
obtain their supplies of raw materials, taking into considération Community 
resources, the resources of non-member countries, the trend of fishery 
agreements, agreements relating to international waters and other 
non-Community sources of supply; 

(1) a description of the types of product likely to be marketed and of 
their situation in relation to the present state of the Community market; 

(m) the overall impact on the environment of the measures provided for in 
the plan, where such Impact is significant, and the means for dealing with 
it; 

(n) the period envisaged for implementing the plan, which must not exceed 

five years; 

(o) the administrative, legal or financial measures adopted or to be taken 
for implementing the plan, In particular the nature of the measures 
envisaged and the authorities or intermediaries designated pursuant to 
Articles 14(1) and 16(1) of Regulation (EEC) No 4253/88. 

?£ 

Commission of the  European Communities 

COM(89)  187  final 

Proposal for a 

COUNCIL  REGULATION (EEC) 

on the  improvement  of the conditions under which fishery and aquacul 
ture  products  are processed and  marketed 

(presented by the  Commission) 

12.5.1989 

Office for  Official  Publications of the  European Communities 
L - 2985  Luxembourg 

Series:  DOCUMENTS 

1989 -  26 pp. — Format:  21.0 *  29.7  cm 

EN 

ISSN  0254-1475 

ISBN  92-77-49520-0 

Catalogue number:  CB-CO-89-183-EN-C 

COM(89)  187  final 

ISSN 0254-1475 

DOCUMENTS 

Proposal for  a 

COUNCIL  REGULATION  (EEC) 

on the  improvement  of  the  conditions  under 
which  fishery  and  aquaculture  products  are 
processed  and  marketed 

(presented  by the  Commission) 

04 

Catalogue  number:  CB-CO-89-183-EN-C 

ISBN  92-7 ,'-49520-0 

€ 

COMMISSION  OF THE EUROPEAN  COMMUNITIES 

12.5.1989