Proposal for a COUNCIL DECISION on a specific measure to encourage Italian fishermen to diversify out of certain fishing activities
Date: 1996-12-16
Institutions: European Commission
Subjects: Italy, Structural Funds, fishing net, indemnification, redevelopment aid

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels,  16.12.1996 
COM(96)  682  final 

96/0308  (CNS) 

Proposal  for  a 

COUNCIL  DECISION 

on  a specific  measure  to  encourage  Italian  fishermen  to  diversify  out  of 
certain  fishing  activities 

(presented  by  the  Commission) 

EXPLANATORY  MEMORANDUM 

concerning  a  proposal  for  Council  decision  on  a specific  measure  to  encourage 
conversion  of  Italian  fisheries  away  from  certain  activities  (driftnet  fishing  -
"spadare") 

1. 

BACKGROUND 

At  the  end  of  1991,  the  Council  unanimously  adopted  Regulation  (EEC)  No  345/92 
prohibiting  the  use  of  driftnets  of  a total  length  of  over  2.5  kilometres.  Driftnet  fishing 
is  a  traditional  activity  in  Italy;  the  use  of  nets  shorter  than  2.5  kilometres  adversely 
affects  productivity,  and jeopardizes  profitability.  There have been  protests  and  pressure 
from  environmentalist  movements  following  the  frequent  infringements  of  Community 
legislation  in  Italy. 

2. 

ITALIAN  CONVERSION  PLAN:  OBJECTIVES  AND  GENERAL 
CONSIDERATIONS 

On  25  July,  after  extensive  consultations  with  workers'  and  employers'  organizations  in 
the industry, the Italian  authorities presented a plan for the rationalization  and  conversion 
of  the  spadare,  on  a  voluntary  basis,  including  several  conversion  measures  for 
shipowners  and  sailors. 

The  objective  of  this  plan  for  the  rationalization  and  conversion  of  the  spadare  is  to 
withdraw licences for  driftnet  fishing,  and to withdraw and destroy the nets. The approach 
to  eliminating  this  activity  has  been  designed  to  ensure  that  the  impact  on  employment 
will  be  as  small  as  possible.  Arrangements  have  been  made  to  encourage  fishermen  to 
convert  to  other,  more  selective,  methods,  and  to provide  them  with  assistance  to  offset 
the  loss  of  income  due  to  the  disappearance  of  the spadare. 

The plan which  the Italian  authorities have presented  includes powerful  incentives,  since 
this type of driftnet  fishing  takes place almost exclusively  in Objective  1  areas, which  are 
socially and economically  sensitive (high unemployment, few opportunities for  alternative 
employment). 

The  Italian  authorities'  initiative  in  presenting  this  plan  has  averted  the  threat  of  an 
embargo  procedure  by  the  United  States;  however,  if the  plan  were  not  applied,  the  US 
authorities  might  well  initiate  that  procedure  once  again. 

3.  LEGAL AND BUDGET FRAMEWORK 

As  shipowners  are  entitled  under  Article  14  of  (EC)  Regulation  3699/93  (structural 
assistance  in the fisheries  sector) to  Community  assistance from  the  FIFG, it  is proposed 
that  complementary  assistance  to  crew  members  should  be  financed  by  means  of  a 
specific  measure  under  Article  3 of  (EEC)  Regulation  2080/93. 

The amount of Community  aid (over three years)  is estimated  at a maximum of  HC  U 100 
million,  to  be  made  available  by  reprogramming  structural  assistance  already  allocated 
under  the  Objective  1 CSF  for  Italy. 

4-

Proposal  for 

Council  Decision 

on  a  specific  measure  to  encourage  Italian  fishermen  to 
diversify  out  of  certain  fishing  activities 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Article  43  thereof, 

Having  regard  to  Council  Regulation  (EEC)  No  2080/93]  of  20 July  1993  laying  down 
provisions  for  implementing  Regulation  (EEC)  No  2052/882  as  regards  the  financial 
instrument  for  fisheries  guidance  and  in particular  Article  6 thereof, 

Having  regard  to  the  proposal  from  the  Commission, 

Having  regard  to  the  opinion  of the  European  Parliament, 

Whereas a specific  number of fishing vessels flying the Italian flag fish the Mediterranean 
for  tuna  and  swordfish  using  drift  nets;  whereas  this  traditional  form  of  fishing  is  a 
significant  source of income for these fishermen  and for the residents of the fishing areas 
dependent  upon  this  activity; 

into  account  the  special  fishing  conditions  and  the  biological 
Whereas,  taking 
characteristics  of the species targetted  in the Mediterranean,  fishing  for  large pelagic  fish 
with  drift  nets  of  2.5km.  or  less  in length  is not  profitable  for  these  fishermen;  whereas 
it has been established that these fishermen  are often  required to use drift  nets longer than 
2.5  km  in  order  to  operate  profitably; 

Whereas  Article  9a  of  Council  Regulation  (EEC)  No  3094/86  laying  down  certain 
technical  measures  for  the  conservation  of  fishery  resources3,  as  last  amended  by 
Regulation  (EC) No  3071/954, prohibits the keeping on board  and use for  fishing  of  one 
or  more  drift  nets  whose  individual  or total  length  exceeds  2.5  km; 

Whereas  the use  of  drift  nets over  2.5  km is illegal  under  national  and  Community  law; 
whereas the Commission has initiated the proceedings provided for in this regard; whereas 
the Italian Government  has adopted new provisions to improve the monitoring  of  fishing 
and  to  penalize  severely  fishermen  who  infringe  national  and  Community  rules; 

Whereas the economic  and  social  problems affecting  the  areas dependent  on this type  of 
fishing  (most of which lie within regions eligible for  Structural  Funding  under  Objective 
1) are  such that  it cannot  be abandoned  effectively  or  quickly  without  a conversion  plan 
and  accompanying  measures; 

1  O J N oL  193, 31.7.93, p. 1 
2  O J N oL  185,  15.7.88, p. 9 
3  O J N oL  288,  11.10.1986,  p.  1. 
4  OJ No  L  329,  30.12.1995,  p.  14. 

-LL 

Whereas the Italian Government has drawn up an overall plan to resolve the problem once 
and for all; whereas the plan depends for its success on offering  interested parties  genuine 
aid  incentives  to  participate  in  it; whereas  most  of the possible  measures  fall  within  the 
scope  of  the  financial  instrument  for  fisheries  guidance  (FIFG);  whereas  they  will  be 
financed  from  the  FIFG  following  normal  procedure; 

Whereas,  however,  in  certain  cases  the  permitted  aid  ceiling  would  not  produce  the 
desired  effect;  whereas  some  measures  planned  by  the  Italian  Government  do  not  fall 
within  the  scope  of  those  provided  for  under  the  FIFG  ; whereas  specific  measures  and 
provisions  must  therefore  be  adopted, 

Whereas, so as to ensure that the compensation foreseen  for the fishermen  is only  granted 
to those whose income depends on the fishing  activities targetted by the present  decision, 
it must  be specified  that they  must have been  employed  on  a registered  fishing  vessel  at 
a  date  before  the  communication  of  the Italian plan  to  the  Commission. 

HAS  ADOPTED  THIS  DECISION: 

Article 1 

As part  of the plan  drawn  up by the Italian  Government  to reorganize  and  diversify  out 
of drift  net fishing  for  large pelagic fish, as notified  to the  Commission  on 25 July  1996, 
a  specific  measure  is hereby  established  to  grant  aid: 

(a) 

(b) 

(c) 

to  nationals  of  any  Member  State  employed  on  22  July  1996  as  fishermen  on  a 
fishing  vessel  flying  the  Italian  flag,  practising  this type  of  fishing,  or  who  were 
employed  in  1995, in the form  of compensation  for  suspending  this activity.  The 
amount of this compensation cannot exceed ECU 918.23 per fisherman  per month, 
for  a maximum  of  six months, and can only be paid  for  the years  1996,  1997 and 
1998.  To  qualify  for  this  compensation,  fishermen  must  undertake  to  cease  this 
fishing  activity  or  to  convert  to  another  activity  in  1997,  1998,  or  1999,  in 
conformity  with  the  Italian  plan; 

to  vessel  owners  entered  in  the  Italian  register,  who  have  undertaken  to  cease 
definitively  all  fishing  activity.  The  aid  shall  be  as  set  out  in  the  table  A  annex; 

to vessel  owners entered  in the Italian fishing  fleet  register,  who have  undertaken 
to  diversify  definitively  towards  another  fishing  activity.  The  premium  for 
diversifying  shall  be  as  set  out  in the table  B  annex. 

Article  2 

1. Fishermen  referred  to  under  Article  1(a) can  also  qualify  for: 
-  aid  up to  a maximum  of  ECU  50 000 when they  cease  all  economic  activity.  This  aid 
is additional  to the  contribution towards early-retirement  schemes foreseen  under  Article 
14a of  Regulation  (EC)  No  3699/935, but  replaces the  flat  rate  foreseen  under  the  same 
article,  under  3(b); 

OJNo  L  346,  31.12.1993, p. 1 

-  a  conversion  premium  up  to  a  maximum  of  ECU  20  000,  in  the  case  of  conversion 
towards another fishing  activity or towards another sector. This premium replaces the flat 
rate  foreseen  under  Article  14a3(b)  of  Regulation  (EC) No  3699/93. 

Article 

The  public  financial  contribution,  including  that  of the  Community,  for  projects  funded 
under  the FIFG  allowing  for  the  reconversion  of vessel  owners  and fishermen  who  have 
benefitted  from  measures under the present decision can reach a maximum  of 75%  of the 
eligible investment in objective  1  regions and 50% of eligible investment in non-objective 
1  regions. 

Article  4 

Community participation  shall be as laid down for FIFG assistance and within the  funding 
limits for  Italy  under the  1994-99 Structural  Fund programmes up to a maximum  of 50% 
of  eligible  investment  undertaken  by  the  Member  State. 

Article  5 

Notwithstanding  all  other  applicable  provisions  and  in  particular  those  of  Regulation 
(EEC)  No  2S47/936.  the  Italian  authorities  shall  send  the  Commission  an  annual  report 
on  the  implementation  of  the  plan  referred  to  in  Article  1. 

fhis  Decision  is  addressed  to  the  Republic  of  Italy. 

Article  6 

Done  at. 

For the Council 

o:> No  i.  :oi.  z o . i o .w 

Table  A 

Annex 

Vessel  by  tonnage 
category  (GRT) 

Cessation payment 
1997 

Cessation payment 
1998 

Cessation  payment 

1999 

0 <5 

5  < 20 

2 0 < 40 

> 40 

Table  B 

ECU  26  000 

ECU  23  000 

ECU  20  000 

ECU  104  000 

ECU  92  000 

ECU  80  000 

ECU  120  000 

ECU  105 000 

ECU  93  000 

ECU  156  000 

ECU  138 000 

ECU  120  000 

Vessel  by  tonnage 
category  (GRT) 

Reconversion 
premium  1997 

Reconversion 
premium  1998 

Reconversion 
premium  1999 

0 <5 

5  < 20 

20  < 40 

> 40 

16.000  ecu 

94.000  ecu 

13.000 ecu 

82.000  ecu 

110.000 ecu 

95.000  ecu 

10.000  ecu 

70.000  ecu 

83.000  ecu 

146.000  ecu 

128.000  ecu 

110.000  ecu 

FINANCIAL STATEMENT 

1 

TITLE  OF OPERATION 

Council Decision on a specific measure to encourage Italian fishermen to diversify 
out of  certain fishing  activities (driftnet  fishing  - "spadare") 

2 

BUDGET HEADING INVOLVED 

B2  1100 

3 

LEGAL BASIS 

Article  43  of the Treaty 

4 

DESCRIPTION OF OPERATION 

4.1 

General  objective 

The  purpose  of  the  plan  for  the  rationalization  and  conversion  of  the 
spadare  is to  withdraw  licences  for  driftnet  fishing,  and to  withdraw  and 
destroy  the nets. 

4.2 

Period  covered  and  arrangements  for  renewal  or  extension 

1997-99 

There  are no  arrangements  for  renewal  or  extension. 

5 

CLASSIFICATION OF  EXPENDITURE OR REVENUE 

5.1 

Non-compulsory  expenditure 

5.2 

Differentiated 

5.3 

Type  of  revenue  involved 

None 

6 

TYPE OF EXPENDITURE OR REVENUE 

Subsidy  for joint financing  with other  sources in the public  and/or  private 
sector 

^ 

FINANCIAL IMPACT 

7.1  Method  of calculating  total cost  of operation  (definition  of  unit  costs) 

The  total  cost  of  Community  aid  has  been  calculated  on the  assumption 
that the premium would be introduced in  1997, and that all eligible vessels 
and  fishermen  would  leave the  driftnet  sector,  as  follows: 

No  of 
vessels 

GRT 

Premium 

Total 

Community 
contribution 
(50%) 

124 

354 

0-5 

5-20 

26  000 

3 224 000 

1  612  000 

104  000 

30 816 000 

15 408  000 

.  147 

20-40 

120  000 

17 640 000 

52 

>40 

156  000 

8 112 000 

8  820  000 

4  056  000 

677 

No  of 
fishermen 
leaving  the 
sector 

59 792 000 

29  869  000 

Premium 

Total 

Community 
contribution 
(50%) 

2658 

50 000 

132  900  000 

66  450  000 

As the above amounts depend on the year of implementation, the premium 
in force  and the rate of take-up, they will be revised  downwards when the 
Member  State has completed  the  detailed  calculations. 

7.2 

Itemised  breakdown  of  cost 

Breakdown 

Budget 
year  n 
1997 

n  + 1 
1998 

n  + 2 
1999 

TOTAL 

EC  in  ECU  million 
(current  prices) 

"Driftnet" 
measure 

1.  premium 
for  vessels 

2. 
compensation 
for  fishermen 

Total 

11 

23 

34 

33 

67 

100 

11 

22 

33 

11 

22 

33 

c 

7.3 

Indicative  schedule  of  appropriations 

n 
1997 

n+  1 

1998 

34 

33 

n + 2 
1999 

33 

EC  in  ECU  million 

n+3 
2000 

n + 4 
2001 

TOTAL 

100 

Commitment 
appropriations 

Payment 
appropriations 

n  1997 

12 

n +  1 1998 

n  + 2  1999 

n +  3 2000 

n + 4 2001 

11 + 11 

11 +  11 + 11 

TOTAL 

12 

22 

FRAUD PREVENTION MEASURES 

Specific  monitoring  measures  planned: 

11 + 11 

22 

11 

11 

100 

Because  this  plan  for  diversification  is  voluntary,  and  because  it  is  possible  to 
continue  fishing  using  nets  of  a  length  of  up  to  2.5  km,  the  planned  inspection 
scheme  will  provide  for  fines  and  criminal proceedings  in cases  of  infringement; 
in  particular,  the  Italian  authorities  will  be  very  strict  about  the  withdrawal  and 
destruction  of  driftnets. 

Moreover,  Structural  Fund  rules  will  apply. 

ELEMENTS  OF  COST-EFFECTIVENESS  ANALYSIS 

9.1 

Specific  and  quantified  objectives;  target  population 

Specific  objectives: 

links  with  general  objective 

The  objective  of  this  plan  for  the  rationalization  and  conversion  of  the 
spadare  is  to  withdraw  licences  for  driftnet  fishing,  and  to  withdraw  and 
destroy  the  nets. 

It  is  not  the  purpose  of  this  measure  to  eliminate  jobs,  but  rather  to 
eradicate  this  fishing  method:  arrangements  have  been  made  to  encourage 
fishermen  to  convert  to  other,  more  selective,  methods,  and  to  provide 
them  with  assistance  to  offset  the  loss  of  income  due  to  the  disappearance 
of  the  spadare. 

Target  population:  distinguish  as  applicable  for  each  objective; 
indicate 
financial 
of 
contribution  and  the  intermediaries 

the  Community's 
involved. 

the  end-beneficiaries 

The  target  population  comprises  2  658  people,  shipowners  and  fishermen, 
who  are  also  the  end-beneficiaries  of  the  measure. 
There  are  677  vessels  for  conversion,  including  40  outside  Objective  1 
regions. 

9.2 

Grounds  for  the  operation 

Need  for  Community 
principle  of  subsidiarity 

financial  aid,  especially 

in  view  of 

the 

the  Commission's  view, 

In 
the 
Mediterranean  fleet,  in  relation  to  the  objectives  of  the  CFP.  justifies 
Community  assistance  and  financial  support  for  the  measure  proposed  by 
the  Italian  authorities. 

importance  of 

restructuring 

the 

Choice  of  ways  and  means 

The  ways  and  means  of  the  Structural  Funds  make  them  the  appropriate 
instruments  for  the  planned  restructuring. 

* 

advantages 
advantages) 

over  possible 

alternatives 

(comparative 

Protection  of  fisheries  resources: no extra  financial  impact,  because  subject 
to  the  ceiling  integrated  into  the  Structural  Funds  framework. 

Main  factors  of  uncertainty  which  could  affect  the  specific  results 
of  the  operation 

The  basic  principle  of  the  measure  is  that  it  is  voluntary. 

9.3  Monitoring  and  evaluation  of  the  operation 

Performance  indicators selected 

Kw,  GRT  and the  number  of  fishermen. 

Details  and frequency  of planned  evaluations 

The  Italian  authorities  must  send  the  Commission  a  report  each  year  on  the 
implementation  of the  conversion  plan. 

The  measure  will  also  be  assessed  as  part  of  the  evaluation  of  Community 
Programmes. 

Assessment  of  the  results  obtained  (if  the  existing  measure  is  to  be 
continued  or renewed) 

It  is  not  intended  to  renew the  measure. 

S 

ISSN 0254-1475 

COM(96) 682 final 

DOCUMENTS 

EN 

03  13 

Catalogue number  :  CB-CO-96-693-EN-C 

ISBN 92-78-13628-X 

Office  for  Official  Publications of the European  Communities 

L-2985  Luxembourg 

/o