Proposal for a Council Decision on a specific measure to encourage diversification out of certain fishing activities and amending Council Decision 97/292/EC of 28 April 1997
Date: 1998-09-04
Institutions: European Commission
Subjects: FIFG, common fisheries policy, fishing regulations, redevelopment aid, terms for aid

COMMISSION OF THE EUROPEAN COMMUNITIES 

-A- 

TÛT 

* 

* 

Brussels, 04.09.1998 
COM(1998) 515  final 

98/ 0274 (CNS) 

Proposal for a 

COUNCIL DECISION 

on a specific  measure to encourage diversification  out of certain fishing activities and 

amending Council Decision 97/292/EC of 28 April  1997 

(presented by the Commission) 

EXPLANATORY  MEMORANDUM 

1.  On  8 June  1998,  the  Council  adopted  a  Regulation1  amending  Council  Regulation 
(EC)  No  894/97  of  29  April  1997  laying  down  certain  technical  measures  for  the 
conservation  of fishery resources2. Article  11a of  the  amended  Regulation  prohibits 
the use of drift nets intended for the capture of certain species from 1  January 2002. 

2.  In  a joint  statement  annexed  to  the minutes  of the  meeting3,  "The Council and the 
Commission  acknowledge  that  the  decision  taken  [...]  will  have  unfavourable 
economic and social repercussions in the short term for  a  number of fishing  fleets. 
[....  The  two  institutions]  agree  on  the  need  to  introduce  in  the  Community an 
appropriate range of actions and special supporting measures for fishermen  serving 
on board and the owners of fishing  vessels. The measures concerned will have to be 
exceptional in character, however, and in any event be met from  the budget for  the 
affected  Member  States '  existing  structural programmes.  [They]  will temporarily 
provide a derogation of the criteria for  eligibility under the Financial Instrument for 
Fisheries Guidance (FIFO) and, if necessary,  adjust the upper limit on the relevant 
eligible expenditure. " 

3.  This proposal constitutes the draft  ad hoc Decision, based on Article 43 of the Treaty, 
that  the  Commission  undertook  to  "present  to  the  Council  at  the  earliest 
opportunity".  In  accordance  with  the  undertakings  entered  into  on  8  June,  this 
proposed Decision does not have any financial  impact on the Community budget. 

4.  Five Member States are affected  by the ban on fishing  with drift  nets, namely  Spain, 
France,  Ireland,  Italy  and  the  United  Kingdom.  In  Italy,  however,  a  raft  of 
accompanying  measures  was  introduced  in  1997  on  a  voluntary  basis.  Since  this 
programme  has  already  been  the  subject  of  a  specific  Council  Decision4,  it  is  not 
appropriate  to adopt  a new  specific  measure  for  Italian  fishermen.  However,  for  the 
sake  of  clarity,  that  Decision  should  be  amended  to  list  the  cases  where  the 
cumulation of aid is authorised. 

5.  This  proposal  is  aimed  at  two  categories  of  beneficiaries,  i.e.  fishermen  serving  on 
board  and  owners  of  vessels.  Provision  is  made  for  two  types  of  aid:  for  the 
permanent cessation of all economic activity and for conversion. 

6.  This proposal only lays down the maximum amounts of such aid. The Member States 
are to adjust  these payments in line with the actual economic or social  loss resulting 
from  the  ban  on  fishing  adopted  by  the  Council  on  8 June  1998. They  should  also 
take into account the cost of conversion and the age of the vessels. 

1  Regulation (EC) No  1239/98 (OJ L 171, 17.6.1998, p.l). 
2  OJL  132, 23.5.1997, p.l. 
3  Reference 8866/98. 
4  Council Decision 97/292/EC of 28 April  1997 on a specific  measure to encourage  Italian fishermen  to 

diversify  out of certain fishing  activities (OJ L 121,  13.5.1997, p.20). 

J. 

In  relation  to  the  abovementioned  ad  hoc  Decision  for  Italy,  this  proposal  aims  to 
simplify  the  mechanisms  while  maintaining  equal  treatment  for  Italian  fishermen  on 
the  one  hand  and  for  Spanish,  French,  Irish  and  United  Kingdom  fishermen  on  the 
other.  The  scales  of  aid  have  therefore  largely  been  maintained  (although  some  new 
tonnage  categories  have  been  added  to  the  tables  to  take  account  of  the  fact  that 
certain  vessels,  in  particular  Irish  and  French  vessels,  are  larger  and  newer).  In 
addition the  1997  Decision  is framed in a multiannual  context while the new proposal 
applies  only  to  the  year  1999.  It  does  not  therefore  provide  for  any  specific 
compensation  for  suspension  of  fishing  activities.  Finally,  in  view  of  the  fact  that 
some vessels will have to undergo extremely  expensive  conversion,  a derogation has 
been  proposed  from  the  rules  on  aid  for  modernisation  of  vessels  laid  down  in 
Regulation  (EC)  No  3699/935,  to  raise  the  ceiling  on  eligible  expenditure  and 
decrease  the  rate  of  participation  by  beneficiaries  (there  is  no  change  to  the  rate  of 
Community  aid: the Member State concerned  must bear the costs of  increased  public 
participation in full). 

Council Regulation (EC) No 3699/93 of 21 December  1993 laying down the criteria and arrangements 
regarding  Community  structural  assistance  in the fisheries  and aquaculture  sector  and  the  processing 
and  marketing  of  its  products  (OJ  L  346,  31.  12.  1993, p.  1).  Last  amended  by  Regulation  (EC) 
No 25/97 (OJ L 6, 10. 1.1997, p. 7). 

Proposal  for a 

COUNCIL DECISION 

of 

1998 

on a specific  measure to encourage diversification  out of certain fishing activities and 

amending Council Decision 97/292/EC of 28 April 1997 

(98/ 

/EC) 

THE COUNCIL OF THE EUROPEAN UNION, 

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

Having regard to the proposal from the Commission ', 

Having regard to the opinion of the European Parliament2, 

(1)  Whereas,  under  Council  Regulation  (EEC)  No  2080/93  of  20  July  1993  laying 
down  provisions  for  implementing  Regulation  (EEC)  No  2052/88  as  regards  the 
Financial  Instrument of Fisheries Guidance3, specific  measures may be financed  by 
that Instrument; 

(2)  Whereas  Article  11a  of  Council  Regulation  (EC)  No  894/97  of  29  April  1997 
laying down  certain  technical  measures  for  the conservation  of  fishery  resources4, 
as amended by Regulation  (EC) No  1239/98 of 8 June  19985, prohibits the use of 
drift nets intended for the capture of certain species from  1  January 2002; 

(3)  Whereas this Decision will have unfavourable  economic and social repercussions in 
the short  term  for  a number of  fishing  fleets,  so justifying  at Community  level an 
appropriate range of actions and special  supporting measures  for fishermen  serving 
on board  and  the owners of  fishing  vessels; whereas  the  measures  concerned  will 
have  to  be  exceptional  in  character,  however,  and  in  any  event  be  met  from  the 
budget for the affected  Member States' existing structural programmes; 

(4)  Whereas it is consequently appropriate to derogate temporarily from the criteria  for 
eligibility  under  the  Financial  Instrument  for  Fisheries  Guidance  (FIFG)  and,  if 
necessary, adjust the upper limit on the relevant eligible expenditure; 

(5)  Whereas  a  specific  number  of  fishing  vessels  flying  the  Spanish,  French,  Irish, 
Italian and United Kingdom  flags are affected  by the ban on fishing  with drift  nets 

1998, p 
1998, p 

1  OJC..., 
2  OJC..., 
3  OJ L 193, 31.7.1993, p.  t. 
4  OJ L 132, 23.5.1997, p. 1. 
5  OJL  171, 17.6.1998, p. 1. 

V 

imposed  by Regulation  (EC) No  1239/98; whereas  on  28  April  1997  the  Council 
adopted  Decision  97/292/EC on a specific  measure to encourage  Italian fishermen 
to diversify  out of certain  fishing  activities6; whereas  there  is therefore  no need  to 
adopt a new specific  measure for the said  Italian  fishermen;  whereas, however,  for 
the sake of clarity, that Decision should be amended to list the cases where aid may 
be cumulated; 

(6)  Whereas  most  of  the  possible  measures  fall  within  the  scope  of  the  Financial 
Instrument  for  Fisheries  Guidance  (FIFG)  as  laid  down  by  Council  Regulation 
(EC) No 3699/93 of 21 December  1993 laying down the criteria and  arrangements 
regarding  Community  structural  assistance  in  the fisheries and  aquaculture  sector 
and  the processing  and  marketing  of  its products7;  whereas  they  will  be financed 
from the FIFG following normal procedures; 

(7)  Whereas  the  Member  States  concerned  must  draw  up  conversion  plans  for  this 

purpose; 

(8)  Whereas,  so  as  to  ensure  that  compensation  is  granted  only  to  fishermen  and 
owners  of  vessels  whose  income depends  on fishing with  drift  nets as  banned  by 
the  Council,  it  must  be  specified  that  the fishermen and  vessels  concerned  must 
have  practised  these  activities  in  1995,  1996  or  1997;  whereas  provision  should 
also  be made  for  effective  variation  in  the amounts of aid  depending  in  particular 
on the extent to which these activities are actually practised, the cost of conversion 
and the age of the vessels; 

(9)  Whereas  the  authorities  of  the  Member  States  concerned  must  ensure,  when 
implementing their national plan, that beneficiaries  may not receive aid other than 
that  provided  for  under  this Decision  nor  obtain  other financial incentives  which 
would  not  be  justified;  whereas  in  particular,  cumulation  of  premiums  for  the 
permanent  cessation  of all  fishing  activities provided  for  by this  specific  measure 
with aid for construction of new vessels paid before  1998 under Council Regulation 
(EEC) No 4028/86 of  18 December  1986 on Community measures to improve and 
adapt  structures  in  the  fisheries  and  aquaculture  sector8  or  Regulation  (EC)  No 
3699/93 must be prohibited; 

(10)  Whereas  the  final  date  for  implementing  this  specific  measure  must  not  be  later 
than the date on which the ban on fishing  with drift  nets comes into force; whereas 
in any case the commitment by the Member States of the necessary financial  means 
by 31 December  1999, and booking of the expenditure by 31 December  2001, are 
compatible with the Structural Funds regulations, 

HAS ADOPTED THIS DECISION: 

6  OJL  121, 13.5.1997, p. 20. 
7  OJL 346, 31.12.1993, p. 1. Last amended by Regulation (EC) No 25/97 (OJ No L 6,  10.1.1997, p. 7). 
8  OJ No L 376, 31.12.1986, p.7. Last amended by Regulation (EC) No 3944/90 (OJ  L 380, 31.12.  1990, 

p. 1). 

r 

Article 1 

1. 
In  connection  with  the  ban  on  fishing  with  drift  nets  laid  down  by  Regulation 
(EC)  No  894/97  as  amended  by  Regulation  (EC)  No  1239/98,  the  Member  States 
concerned  shall  draw  up a conversion  plan  and communicate  it to the Commission.  The 
conversion  plans  shall  be  examined  by  the  monitoring  committees  for  the  programmes 
referred  to in Article 5(2) of this Decision. 

2. 
To  implement  the  plans  referred  to  in  paragraph  1, a  specific  measure  shall  be 
established  to  grant  aid  to  fishermen  and  owners  of  vessels  under  the  conditions  laid 
down in Articles 2 to 6 of this Decision. 

Article 2 

Fishermen  who  are nationals of  a Member  State and worked  in  1995,  1996 or  1997 on 
board  a fishing  vessel  flying  the  Spanish, French,  Irish or United  Kingdom  flags,  using 
one  or  more  drift  nets  intended  for  the  capture  of  the  species  listed  in  Annex  VIII  to 
Regulation (EC) No 894/97, may receive: 

(a) 

an  individual  compensatory  payment  of  up to  a maximum  of  ECU 50 000  if  they 
cease all economic activity before  1  January 2002; this payment: 

(i)  may be cumulated with benefits  from  early-retirement  schemes provided  for by 
the  legislation  of  the  Member  State  concerned,  including  when  the  early-
the  FIFG  under 
retirement  scheme 
Article  14a(3)(a) of Regulation (EC) No 3699/93; 

is  part-financed  by 

in  question 

(ii) may  not be cumulated with the individual  compensatory  payment  provided  for 

in Article 14a(3)(b) of Regulation (EC) No 3699/93; 

(b) 

an  individual  compensatory  payment  of  up to  a maximum  of  ECU 20 000,  in the 
case  of  conversion  to  another  fishing  activity  or  another  sector  before  1 January 
2002. This payment may be cumulated  with the individual  compensatory  payment 
under  Article 14a(3)(b)  of Regulation  (EC)  No  3699/93  and,  if  appropriate,  with 
the aid provided for in Title III of that Regulation. 

Article 3 

Owners  of  a  fishing  vessel  flying  the  Spanish,  French,  Irish  or  United  Kingdom  flags, 
which have used one or more drift  nets intended to catch the species listed in Annex VIII 
to Regulation (EC) No 894/97 in 1995, 1996 or 1997, may obtain for those vessels: 

(a) 

a compensatory payment of an amount up to the maximum listed in Annex I to this 
Decision, for the permanent cessation of all  fishing  activity before  1  January 2002; 
this payment: 

(i)  may  be  cumulated  with  aid  for  the  permanent  cessation  of  fishing  activities 

under Article 8 of Regulation (EC) No 3699/93; 

(ii)  may  not  be  cumulated  with  any  aid  for  construction  which  may  have  been 
paid under Regulation (EEC) No 4028/86 or Regulation (EC) No 3699/93; 

(b) 

a compensatory payment of an amount up to the maximum  listed  in Annex  1  to this 
Decision,  in the case of permanent  conversion  to another  fishing  activity  before 1 
January 2002; this payment: 

(i)  may be cumulated with aid for the modernisation of the vessel under Article 10 
of  Regulation  (EC) No 3699/93  which  would  be granted  in  1998 or  in  1999, 
under the conditions for derogation  laid down in Annex II to this Decision; 

(ii)  may not be cumulated with aid for the permanent transfer to a third country or 
for  setting  up  joint  enterprises  under  Articles  8  and  9  of  Regulation  (EC) 
No 3699/93. 

Article 4 

1. 
The  Member  States may  restrict  the payments  laid  down  in  Articles  2  and  3 to 
fishermen  and owners of vessels who prove that they will  actually  suffer  loss as a result 
of the ban on fishing referred  to in Article 1(1). 

When  establishing  the actual  individual  amount  of the payments  provided  for in 

2. 
Articles 2 and 3, Member States shall take particular account  of: 

(a) 

the  actual  extent  of  use  by  the  beneficiaries  (fishermen  and  owners  of  vessels) 
during  the  reference  period,  of  the  drift  nets  covered  by  the  ban  referred  to  in 
Article 1(1); 

(b) 

the cost of conversion; 

(c) 

the age of the vessels. 

Article 5 

1. 
The public financial contribution, including that of the Community,  for measures 
under this Decision  shall cover all eligible costs up to the maximum  amounts  laid down 
in Articles 2 and 3. 

2. 
The  Community  contribution  may  run  to  a  maximum  of  50% of  eligible  costs 
incurred  by  the  Member  States.  It  may  not  exceed  the  funding  limits  for  the  Member 
States  concerned  under  the  1994  to  1999  Structural  Fund  programmes  (Community 
support  frameworks,  operational  programmes  and  single  programming  documents  for 
Objective  1  and Objective 5(a)). 

3. 
Save  as  otherwise  provided  in  this  Decision,  the  payments  provided  for  in 
Articles 2 and 3 shall be subject  to the conditions governing the programmes referred  to 
in paragraph 2; they must therefore be the subject  of legally binding commitments in the 
Member State concerned  for which the requisite  finance  must be specifically  committed 
no  later  than  31  December  1999.  The  final  date  for  booking  expenditure  on  these 
measures shall be 31 December 2001. 

O-

Article 6 

Without  prejudice  to  other  provisions  applicable  and  in  particular  those  of  Council 
Regulation  (EEC)  No  2847/93  of  12  October  1993  establishing  a  control  system 
applicable  to  the  common  fisheries  policy9,  the  authorities  of  the  Member  States 
concerned shall send the Commission  each year, at the latest by  1 April  for the previous 
year, a report on the implementation of the conversion plan referred  to in Article  1. They 
shall adopt the necessary provisions to prevent cumulation of aid not expressly authorised 
by this Decision and any grant of aid not justified. 

Article 7 

Article  1(b) and (c) of Decision 97/292/EC are replaced by the following: 

"(b)  to vessel owners who have undertaken to cease definitively  all fishing activity. The 

aid shall be as set out in Table A in the Annex. This aid: 

(i)  may  be  cumulated  with  aid  for  the  permanent  cessation  of  fishing  activities 
under  Article 8  of  Regulation  (EC)  No 3699/93.  However,  point  1.1(a)  of 
Annex III to that Regulation shall not apply; 

(ii)  may not be cumulated with any aid for construction which may have been paid 

under Regulation (EEC) No 4028/86 or Regulation (EC) No 3699/93; 

(c) 

to  vessel  owners  who  have  undertaken  to  diversify  definitively  towards  another 
fishing  activity. The aid for diversifying  shall be as set out in Table B in the Annex. 
This aid: 

(i)  may be cumulated with aid for the modernisation of the vessel under Article 10 

of Regulation (EC) No 3699/93; 

(ii)  may not be cumulated with aid for the permanent transfer  to a third country or 
for  setting  up  joint  enterprises  under  Articles 8  and  9  of  Regulation  (EC) 
No 3699/93." 

Article 8 

This  Decision  is addressed  to the Kingdom  of  Spain, the French  Republic,  Ireland,  the 
Italian Republic and the United Kingdom of Great Britain and Northern Ireland. 

Done at 

, [.. .date... ] 

For the Council 

The President 

i k * * * * * * * * * * * * * * * * * * * * * * * * * * ** 

()  OJ  I,  261,  20.10.1993,  p.  I.  Last  amended  by  Regulation  (liC)  No  2035/97  (OJ  I,  356,  31.12.1997, 

p.  14). 

r 

ANNEX I 

Maximum premiums for vessels (ECU) 

Tonnage class 

Compensatory payment for the 

Compensatory payment for 

GT10 

__ 

_ __ 

10<20 

20 < 40 
_____ 

50<60 

60<70 

_ __ 

__ 

" 

permanent cessation of all 

fishing  permanent conversion to another 

activity 

fishing 

activity 

[Article 3(a)] 
26 000 

60 000 

104 000 

120 000 
156 000 

190 000 

225 000 

260 000 

295 000 

ANNEXll 

[Article 3(b)] 
16000 

50000 

94 000 

110 000 
146 000 

180 000 

215 000 

250 000 

285 000 

Notwithstanding the conditions  laid down in Annex IV to Regulation (EC) No 3699/93, 
the  aid  for  the  modernisation  of  vessels  in  receipt  of  the  premium  provided  for  in 
Article 3(b) is amended as follows: 

(a)  in point  1.4  (Scales  of assistance relating to fishing fleets - Modernisation  aid), the 

maximum of 50% is replaced by 65%; 

(b) opposite  "Other regions" in  the column  headed  "Group 1" of  Table 3  in  point  2.1 
(Participation  rates  -  Investments  in  enterprises),  the  60%  minimum  financial 
participation by private beneficiaries (C) is replaced by 40%. 

* * * * * * * * ** * * * * £ * * * * * * * * * * * *  ** 

1 °  If the  tonnage  in GT  is unavailable,  a GRT/GT conversion  formula  is to be  used  in accordance  with 
Council  Regulation  (EEC)  No  2930/86  of  22  September  1986  defining  characteristics  for  fishing 
vessels  (OJ  L  274,  25.9.1986,  p.  1),  as  last  amended  by  Regulation  (EC)  No  3259/94  (OJ  L  339, 
29.12.1994, p.  11), and with Commission Decisions 95/84/EC of 20 March  1995 (OJ L 67, 25.3.1995, 
p. 33) and 97/259/EC of  1  April  1997 (OJ L 104, 22.4.1997, p. 28). 

ISSN 0254-1475 

COM(98) 515 final 

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03  07  10  01 

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