Proposal for a COUNCIL REGULATION (EC) establishing a system of compensation for the additional costs incurred in the marketing of certain fishery products from the Azores, Madeira, the Canary Islands and the French department of Guiana as a result of their very remote location
Date: 1993-12-03
Institutions: European Commission
Subjects: EAGGF, compensatory financing, food processing, peripheral region, transport price

MK 

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COMMISSION OF THE EUROPEAN  COMMUNITIES 

C0M(93) 630 final 

Brussels, 3 December  1993 

Proposal  for a 

milNCIL REGULATION  (EC) 

establishing a system of compensation for the additional costs 
incurred in the marketing of certain fishery  productsfrom the Azores, 
Madeira, the Canary Islands and the French department  of Guiana 
as a result of their very remote location 

(presented  by  the Commission) 

EXPLANATORY  MEMORANDUM 

^ 

The  outermost  regions  of  the Community  (the Portuguese  archipelagos  of  the Azores and 
Madeira, the Spanish archipelago of the Canary Islands and the French overseas departments 
of  Guadeloupe,  Guiana,  Martinique  and  Réunion)  suffer  from  structural  backwardness 
justifying Community action to promote their economic and social development and their full 
involvement in the dynamics of  the internal market. 

Against this background, Council Decisions 89/68?/EEC(I), 91/314/EEC® and 91/315/EEC(3) 
set  up programmes  of  options  specific  to  the remote  and insular  nature  of  those  regions, 
creating a suitable framework  for the adoption of measures in those economic sectors where 
particular attention must be given to strengthening the Community support required to reduce 
the permanent constraints  which characterize the regions. 

Amongst  those  sectors  in  which  Community  measures  have  already  been  applied  is  the 
fisheries  and  aquaculture  sector.  Under  the  Poseican  and  Poseima  programmes,  the 
Community  has  supported  research  into  fishery  resources  and  the  processing  of  certain 
products  (tuna in the case of  the Azores and Madeira and tuna and sardines  in the Canary 
Islands)(4). 

These measures are limited to the period  1992-93. Given the usefulness  of the measures and 
the  efficient  manner  in  which  they  have  been  applied,  they  should  be  continued  after 
1 January  1994.  This  also  includes  aid  for  prawn  producers  in  the  French  department  of 
Guiana. 

All  the  above  measures  concern  a  sector  which  is  of  particular  economic  and  social 
importance for the regions  in question and for which there exists  virtually  no possibility  of 
conversion.  The  measures  will  help  to  improve  the  competitiveness  of  the  sector  by 
compensating  for the handicap isolation constitutes  for the local  fishery  products industry. 

(,)  OJ No  L 399,  30.  12.  1989, p.  39. 

« O J N oL  171,29.  6.  1991, p.  5. 

°> OJ No  L  171, 29.  6.  1991, p.  10. 

(4) OJ No  L 248,  28.  8.  1992,  pp.  73 and 75.  Decisions  implementing  the  abovementioned 
programmes  of  specific  options and a Decision  fixing  the Community  financial  contribution 
to the construction  of  an océanographie research  vessel  for the Azores  region. 

Proposal  for  a 

COUNCIL 

figfiULATMM 

i£C) 

3 

establishing a system of compensation for the additional costs 
Incurred in the marketing of certain fishery products from the Azores» 
Madeira» the Canary Islands and the frerich départaient of Guiana 
as a result of their very remote location 

THE COUNCIL OF THE EUROPEAN UNION. 

Having regard to the Treaty establishing fee European Community, and in particular Article 
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 Committee00, 

Whereas,  by  Decisions  89/687/EEC^,  91/314/EEC®  and  91/315/EEC^,  the  Council 
established,  as  part  of  the  Community's  policy  in  favour  of  its  outermost  regions, 
programmes  of  opdons  specific  to the remote and insular  nature of  the French  overseas 
departments  (Poseidom),  the  Canary  Islands  (Poseican)  and  Madeira  and  the  Azores 
(Poseima) respectively,  laying down the general outlines of measures  to be applied taking 
account of the special characteristics  of and constraints on those regions; 

Whereas those regions aie suffering  from specific development problems,  in particular the 
additional costs incurred in the marketing of certain products as a result of their remoteness; 
whereas, in order to maintain the competitiveness of certain fishery products in relation to 
similar products from other Community regions, Community measures have been applied in 
the fisheries sector in  1992 and 1993 to compensate for the additional  costs incurred in the 
processing of tuna in the Azores and Madeira and the production and freezing  of tuna and 
the  freezing  and  processing  of  sardines  in  the  Canary  Islands;  whereas  a  system  of 
conmensaflon  for  the additional costs incurred  in  the processing  and  marketing  of those 
products  should  be  provided  for  at  Community  level  from  1994  and  measures  should 
therefore be adopted providing for the continuation of the existing measures; 

Whereas  measures  should  be  laid  down  for  the fisheries sector,  under  the  Poseidom 
programme,  to  improve  the  marketing  conditions  for  prawns  produced  in  the  French 
department of Guiana, 

« O J N oC 

m  OJ No C 

®OJNoC 

& OJ No L 399, 30.  12.  1989, p, 39. 

® OJ No L  171, 29. 6.  1991, p. 1. 

»  OJ No L  171, 29. 6.  1991, p. 10. 

HAS  ADOPTED  THIS  REGULATION: 

Article 1 

t 

A system of compensation for the additional costs incurred in the marketing of certain fishery 
products from the Azores, Madeira, the Canary Islands and the French department of Guiana 
as a result of their remoteness  is hereby established. 

Article 2 

1.  For  the  Azores  and  Madeira,  the  system  referred  to  in  Article  1 shall  consist  of  the 
payment of  ECU  155 per tonne up to a maximum  of  15 000 tonnes per year delivered 
to local  industry  (10 000 tonnes  for the Azores  and 5 000 tonnes  for Madeira). 

2.  For the Canary Islands,  the system  referred  to in Article  1 shall consist  of the payment 
of ECU  125 per tonne up to a maximum of 5 000 tonnes per year of tuna for marketing 
fresh,  ECU 45  per  tonne  up  to  a  maximum  of  7 000 tonnes  per  year  of  frozen  tuna, 
ECU  85 per tonne up to a maximum of  15 000 tonnes per year of  sardines  for canning 
and  ECU 45  per  tonne  up  to  a  maximum  of  10 000 tonnes  per  year  of  sardines  for 
freezing  . 

3.  For the French department of Guiana, the system referred  to in Article  1 shall consist of 
the payment of ECU  865 per tonne of prawns up to a maximum of 3 500 tonnes per year 
for industrial fishing and ECU 930 per tonne of prawns up to a maximum of 500 tonnes 
per year for non-industrial  fishing. 

Article  3 

The detailed rules for the application of this Regulation shall be adopted in accordance with 
the  procedure  laid  down  in  Article  32  of  Council  Regulation  (EEC)  No  3759/92  of  17 
December  1992  on  the  common  organization  of  the  market  in  fishery  and  aquaculture 
products00. 

Article 4 

The  measures  provided  for  in  this  Regulation  are  measures  intended  to  stabilize  the 
agricultural markets within the meaning of Article 3 of Council Regulation (EEC) No 729/70 
of  21  April  1970  on  the  financing  of  the  common  agricultural  policy(8).  They  are  to  be 
financed  by the European  Agricultural  Guidance and Guarantee Fund,  Guarantee Section. 

Article 5 

Every  three  years,  commencing  on  1  January  1997,  the  Commission  shall  present  the 
European  Parliament and the Council  with a report on the implementation  of  the measures 
provided  for  in  this  Regulation  accompanied,  where  appropriate,  by  proposals  for  any 
adjustments which  might be necessary  to achieve the objectives  set out in Article  1. 

^  OJ No  L 388,  31.  12.  1992, p.  1. 

(8) OJ No  L 94,  28.  4.  1970, p.  13. 

This Regulation  shall enter into force on  1 January  1994. 

Article  6 

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

Done at Brussels, 

For the Council 

€ 

Financial  Statement 

Date 

1. BUDGET  HEADING  =  Article  B1-262 

Heading  B1-2622 

Programmes  for  the most  remote  regions:  fishery  products 

Additional  disposal  costs 

2. TITLE : 

Proposal  for a Council  Regulation  establishing a system  of  compensation  for  the  additional  costs 
incurred  in  the marketing  of  certain  fishery  products  from  the Azores, Madeira,  the  Canary  Islands 
and  the  French  department  of  Guiana  as a result  of  their  very  remote  location 

3. LEGAL  BASIS :  Article  43  of  the EEC  Treaty;  Council  Decision  89/687/EEC;  Council  Decision  91/3U/EEC 

Council  Decision  91/315/EEC 

4. AIMS 

To compensate  for  the  additional  costs  involved  in disposing  of  certain  fishery  products  in the most 
remote  regions 

5.  FINANCIAL  IMPLICATIONS 

PERIOD  OF  12 MONTHS 

CURRENT  FINANCIAL  YEAR 

< 1994 

\ 

FOLLOWING  FINANCIAL  YEAR 

i  1995 

I 

5.0  EXPENDITURE 

- CHARGED  TO THE  EC  BUDGET 
(REFUNDS/INTERVENT IONS) 

•  NATIONAL  AUTHORITIES 

- OTHER 

5.1  REVENUE 

• OUN  RESOURCES  OF  THE EC 
(LEVIES/CUSTOMS  DUTIES) 

-  NATIONAL 

5.0.1  TIMETABLE  FOR  MULTIANNUAL 

EXPENDITURE 

5.2 METHOD  OF  CALCULATION 

ECU  10.25 m 

ECU 6.25 m 

ECU  10.25 m 

1996 

ECU  10.25 m 

1997 
ECU  10.25 m 

Azores/Madeira 
Canaries 

French 
Guiana 

TOTAL 

tuna 

sardines 

fresh 
frozen 
tinned 
frozen 

15 000  t/yr 
5 000  t/yr 
7 000  t/yr 
15 000  t/yr 
10 000  t/yr 

ECU  155/t 
ECU  125/t 
ECU  45/t 
ECU  85/t 
ECU  45/t 

shrimps  industrial  fishing 

artisanal  fishing 

3 500  t/yr  X  ECU  865/t 
500  t/yr  X  ECU  930/t 

ECU 2 325  000 
625  000 
ECU 
ECU 
315  000 
ECU  1 275  000 
450  000 
ECU 

ECU 3 027 500 
465  000 
ECU 

ECU 8 482  500 

with a correction  factor  of  1.207509,  this  amount  in green-rate  ECUs  corresponds  to close  on 
ECU  10.25 m in the  budget 

6.0  CAN  THE  PROJECT  BE  FINANCED  FROM  APPROPRIATIONS  ENTERED  IN THE  RELEVANT  CHAPTER  OF  THE  CURRENT  BUDGET ? 

6.1  CAN  THE  PROJECT  BE  FINANCED  BY  TRANSFER  BETWEEN  CHAPTERS  OF  THE  CURRENT  BUDGET ? 

1994 - draft  budget 

6.2  WILL A SUPPLEMENTARY  BUDGET  BE  NECESSARY ? 

1994 - draft  budget 

6.3  WILL  FUTURE  BUDGET  APPROPRIATIONS  BE  NECESSARY ? 

NO 

NO 

YES 

YES 

COMMENTS : 

The Regulation  in question  will  be  subject  to a budgetary  analysis  as part  of  the  budgetary 

procedure  for  1994 

KSN 0254-1475 

COM (93) 630 final 

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