Council Regulation (EC) No 2792/1999 of 17 December 1999 laying down the detailed rules and arrangements regarding Community structural assistance in the fisheries sector
Date: 1999-12-17
Institutions: Council of the European Union
Subjects: FIFG, Structural Funds, fishing fleet, fishing industry, fishing regulations, structural policy

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COUNCIL REGULATION (EC) No 2792/1999

of 17 December 1999

laying down the detailed rules and arrangements regarding Community structural assistance in the
fisheries sector

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community, and in particular Articles 36 and 37 thereof,

Having regard to the proposal from the Commission (1),

Having regard to the opinion of the European Parliament (2),

Having regard to the opinion of the Economic and Social
Committee (3),

Whereas:

(1)

(2)

(3)

Council Regulation (EC) No 1260/1999 of 21 June
1999 laying down general provisions on the Structural
Funds (4) defines the general objectives and tasks of the
Structural Funds and the Financial Instrument for Fish-
eries Guidance (‘FIFG’), their organisation, the assistance
methods, the programming and general organisation of
the aid provided by the Funds and the general financial
arrangements;

Council Regulation (EEC) No 3760/92 of 20 December
1992 establishing a Community system for fisheries and
aquaculture (5)
lays down the objectives and general
rules of the common fisheries policy; the development
of the Community fishing fleet must in particular be
regulated according to the decisions that the Council is
called upon to take by virtue of Article 11; it is for the
Commission to translate these decisions into precise
measures at the level of each Member State; furthermore,
Council Regulation (EEC) No 2847/93 of 12 October
1993 establishing a control system applicable to the
common fisheries policy (6) is to be complied with;

for

Financial

Instrument

Council Regulation (EC) No 1263/1999 of 21 June
1999 on the
Fisheries
Guidance (7) defines the specific purpose of structural
measures in the sector, as it is defined in Article 1 of the
said Regulation; under Article 4 thereof the Council is to
decide, no later than 31 December 1999, on the terms
and conditions of the contribution of the FIFG to the
restructuring of the sector in order to ensure that this
restructuring achieves its intended objectives;

(4)

(5)

(6)

(7)

(8)

(9)

(10)

the provisions concerning the programming should be
fixed;

the multiannual guidance programmes for the fishing
fleets for
the period from 1 January 1997 to 31
December 2001 are to remain in force until they expire;
appropriate provisions should be laid down for the
period commencing on 1 January 2002;

the provisions for the monitoring and implementation
the multiannual guidance programmes should be
of
specified,
in particular concerning the mechanism of
fleet entries and exits as well as the framework of public
aid for the renewal of the fleet, the modernisation of
vessels and the establishment of joint enterprises;

small scale coastal fishing has a special status in terms of
the objectives for fishing effort adjustments; it is impor-
tant that this specificity is translated into concrete meas-
ures at the level of this Regulation;

socio-economic accompanying measures will be needed
to implement the restructuring of the fishing fleets;

detailed rules should be fixed for the granting of aid for
the protection and development of the aquatic resources,
for aquaculture,
for
processing, for marketing, for inland fishing and for the
promotion of fisheries and aquaculture products;

in fishing ports,

for equipment

certain measures having a structural character for the
benefit of producer organisations currently being imple-
mented under Council Regulation (EEC) No 3759/92 of
17 December 1992 on the common organisation of the
market in fishery and aquaculture products (8) should be
included among the structural measures, and such inclu-
sion should not jeopardise the regulatory role of the
producer organisations as defined in Regulation (EEC)
No 3759/92; it is also convenient to include other meas-
ures of collective interest undertaken by the professio-
nals;

(1) OJ C 16, 21.1.1999, p. 12.
(2) OJ C 279, 1.10.1999, p. 325.
(3) OJ C 209, 22.7.1999, p. 10.
(4) OJ L 161, 26.6.1999, p. 1.
(5) OJ L 389, 31.12.1992, p. 1. Regulation as last amended by Regula-

tion (EC) No 1181/98 (OJ L 164, 9.6.1998, p. 1).

(6) OJ L 261, 20.10.1993, p. 1. Regulation as last amended by Regula-

tion (EC) No 2846/98 (OJ L 358 31.12.1998, p. 5).

(7) OJ L 161, 26.6.1999, p. 54.

(11)

detailed rules should be fixed for the granting of indem-
nities and financial compensation to fishermen and
vessel owners, in cases of temporary cessation of activity
or of
technical restrictions being applied to certain
equipment on board or fishing methods;

(8) OJ L 388, 31.12.1992, p. 1. Regulation as last amended by Regula-

tion (EC) No 3318/94 (OJ L 350, 31.12.1994, p. 15).

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(12)

(13)

(14)

(15)

(16)

the programmes are to envisage the means necessary for
the execution of innovative actions and technical assis-
tance;

achieving a lasting balance between aquatic resources
and their exploitation and environmental impact repre-
sent an important interest for the fisheries sector; it is as
important, therefore, to provide for appropriate meas-
ures to preserve the trophic chain as it is to provide for
aquaculture and the fish processing industry;

insofar as such measures are not limited to the granting
of Community aid,
it is appropriate in particular to
regulate State aid schemes in this sector, without preju-
dice to Articles 87 to 89 of the Treaty, and to integrate
the programming of the restructuring of Community
fishing fleets in a coherent manner in the context of
structural assistance as a whole;

the measures necessary for implementing this Regulation
should be adopted in accordance with Council Decision
1999/468/EC of 28 June 1999 laying down the proced-
ures for the exercise of implementing powers conferred
on the Commission (1);

Council Regulation (EC) No 2468/98 of 3 November
criteria and arrangements
1998 laying down the
regarding Community structural assistance in the fish-
eries and aquaculture sector and the processing and
marketing of its products (2) as well as other provisions
should be repealed; at the same time, for the proper
execution of the aid, actions and projects approved up
until 31 December 1999 the repealed provisions should
remain applicable to that end,

HAS ADOPTED THIS REGULATION:

Article 1

Objectives

This Regulation provides a framework for all structural
1.
measures in the fisheries sector carried out in the territory of a
Member State, without prejudice to regional particularities with
a view to achieving the objectives set out in Article 1 (1) of
Regulation (EC) No 1263/1999 and the objectives of
the
common fisheries policy, in particular conservation and long-
term sustainability of resources.

2.
Structural policy in this sector aims at guiding and facili-
tating restructuring. Restructuring shall comprise actions and
measures with a lasting effect that contribute to achieving the
tasks defined in Article 1(2) of Regulation (EC) No 1263/1999.

(1) OJ L 184, 17.7.1999, p. 23
(2) OJ L 312, 20.11.1998, p. 19.

Article 2

Means

Instrument

for Fisheries Guidance, hereafter
The Financial
referred to as ‘FIFG’ may, under the conditions laid down in
this Regulation, provide assistance for the measures defined in
Titles II, III and IV within the fields covered by the common
fisheries policy as defined in Article 1 of Regulation (EEC) No
3760/92.

TITLE I

PROGRAMMING

Article 3

Common provisions

1.
Programming, defined in Article 9(a) of Regulation (EC)
No 1260/1999, shall be in accordance with the objectives of
the common fisheries policy and with the provisions of the
multiannual guidance programmes
fishing fleets
referred to in Article 4 of this Regulation. To this end, it may
be revised as necessary and in particular at the end of each
period of application of the multiannual guidance programmes.

the

for

Programming shall cover all the fields referred to in Titles II, III
and IV.

2.
Programming of measures part-financed by the FIFG in
Objective 1 regions shall be in accordance with Article 2(2),
first subparagraph of Regulation (EC) No 1263/1999.

Programming of measures part-financed by the FIFG outside
Objective 1 regions shall be in accordance with Article 2(2),
second subparagraph of Regulation (EC) No 1263/1999.
Articles 14, 15(2), 15(3),
first subparagraph, 15(5), 15(6),
15(7), 19(3) and 19(4) of Regulation (EC) No 1260/1999 shall
apply.

3.
The plans, defined in Article 9(b) of Regulation (EC) No
1260/1999, shall demonstrate that public aid is necessary with
regard to the objectives pursued, and in particular that without
public aid the fishing fleets concerned could not be renewed or
modernised and that the planned measures will not jeopardise
the long-term equilibrium of fishery resources.

The contents of the plans shall be as set out in Annex I.

For the remainder of the programming period not yet
4.
covered by a multiannual guidance programme approved by
the Commission, the programming information shall be purely
indicative; such information shall be specified when the new
multiannual guidance programme is approved, in accordance
with its objectives.

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Article 4

Multiannual guidance programmes for fishing fleets

1.
The Council, under Article 11 of Regulation (EEC) No
3760/92, lays down the objectives and measures for restruc-
turing the fisheries sector. On the basis of
this Council
Decision, the Commission shall, acting in accordance with the
procedure laid down in Article 23(2), adopt the multiannual
guidance programmes for individual Member States.

2.
The Commission Decision referred to in paragraph 1
shall fix, in particular, a series of objectives accompanied by a
set of measures for their realisation, enabling management of
fishing effort on an overall,

long-term basis.

Before 1 May 2001 at the latest, Member States shall
3.
supply the Commission with the information specified in
Annex II to this Regulation, to be used in drawing up subse-
quent multiannual guidance programmes.

Article 5

Monitoring multiannual guidance programmes

For the purpose of monitoring the implementation of
1.
multiannual guidance programmes, Member States
shall
transmit to the Commission, before 1 May each year, a docu-
ment reviewing the progress made with their multiannual
guidance programme. Within three months of this deadline the
Commission shall forward an annual report to the European
Parliament and the Council on the implementation of multi-
the Community.
annual guidance programmes throughout

2. Member States shall transmit to the Commission infor-
mation on the physical characteristics of fishing vessels and the
monitoring of fishing effort by fleet segment and by fishery,
particularly as regards the development of capacities and the
corresponding fishing activities, in accordance with the proced-
ures laid down in Commission Regulations (EC) No 2090/98 of
30 September 1998 concerning the fishing vessel register of
the Community (1) and (EC) No 2091/98 of 30 September
1998 concerning the segmentation of the Community fishing
fleet and fishing effort in relation to the multiannual guidance
programmes (2).

3.
On its own initiative or at the request of the Member
State concerned, or under provisions laid down in the multi-
annual guidance programmes,
the Commission may re-
examine and adapt any multiannual guidance programme,
whilst respecting the Council Decision mentioned in Article
4(1).

The Commission shall decide on the revisions provided
4.
for in paragraph 3 in accordance with the procedure laid down
in Article 23(2).

(1) OJ L 266, 1.10.1998, p. 27.
(2) OJ L 266, 1.10.1998, p. 36.

For the implementation of this Article, Member States
5.
shall apply the provisions of Article 24 of Regulation (EEC) No
2847/93.

TITLE II

IMPLEMENTATION OF MULTIANNUAL GUIDANCE PRO-
GRAMMES FOR FISHING FLEETS

Article 6

Fleet renewal and modernisation of fishing vessels

Fleet renewal and the modernisation of fishing vessels

1.
shall be organised in accordance with this title.

to the Commission,

Each Member State shall submit
for
approval in accordance with the procedure laid down in Article
23(2), permanent arrangements for monitoring fleet renewal
and modernisation. Within the framework of these arrange-
ments Member States shall demonstrate that entries and exits
from the fleet will be managed in such a way that the capacity
does not exceed the annual objectives fixed in the multiannual
guidance programme, overall and for the segments concerned,
or where appropriate that fishing capacity is gradually reduced
to attain these objectives.

These arrangements shall, in particular, take into account that
capacity, other than that of vessels of less than 12 metres
overall length excluding trawlers, which has been withdrawn
with public aid, cannot be replaced.

2. Member States can submit a request for a clearly identi-
fied and quantified increase in the capacity objectives for meas-
ures to improve safety, navigation at sea, hygiene, product
quality and working conditions provided that these measures
do not result in an increase in the exploitation rate of the
resources concerned.

Such a request shall be examined by the Commission and
approved in accordance with the procedure laid down in
Article 23(2). Any capacity increase shall be managed by the
Member States under the permanent arrangements referred to
in paragraph 1.

Article 7

Adjustment of fishing effort

1. Member States shall take appropriate measures to adjust
the multiannual
fishing effort
guidance programmes referred to in Article 4.

to achieve the objectives of

Where necessary, this shall be achieved by stopping vessels'
fishing activities permanently or restricting them or a combina-
tion of both measures, in accordance with the applicable provi-
sions of Annex III.

2. Measures to stop vessels' fishing activities may be applied
only to vessels 10 years old or more.

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The permanent cessation of vessels' fishing activities may

3.
be achieved by:

(a) the scrapping of the vessel;

(b) permanent

transfer of

to a third country,
the vessel
including in the framework of a joint enterprise within the
meaning of Article 8, after agreement by the competent
authorities of
the
following criteria are met:

the country concerned, provided all

(i) there exist appropriate guarantees that international
law is not likely to be infringed,
in particular with
respect to the conservation and management of marine
resources or other objectives of the common fisheries
policy and with respect to working conditions of fish-
ermen;

(ii) the third country to which the vessel is to be trans-
ferred is not a country which is a candidate for acces-
sion;

(iii) the transfer results in a reduction of fishing effort on
the resources previously exploited by the vessel trans-
ferred; however, this criterion shall not apply when the
vessel transferred has lost fishing possibilities under a
fisheries agreement with the Community or under
another agreement;

(c) permanent reassignment of the vessel for purposes other

than fishing.

The capacity of vessels, except vessels less than 12 metres
4.
overall
length other than trawlers which may be replaced
without public aid, that are subject to a measure to stop fishing
activities permanently within the meaning of paragraph 2 and
3 may under no circumstances be replaced.

Member States shall ensure that the fishing licenses of all
vessels withdrawn are cancelled and that the withdrawals of the
vessels are communicated to the fishing vessel register of the
Community. They shall also ensure that vessels transferred to
third countries and declared as deleted from the register are
permanently excluded from fishing in Community waters.

Public aid for final cessation paid to beneficiaries may not

5.
exceed the following amounts:

(a) scrapping premiums:

(i) vessels of 10 to 15 years old: see Tables 1 and 2 in

Annex IV;

(ii) vessels from 16 to 29 years old: the scales in Tables l

and 2 decreased by 1,5 % per year over 15;

(iii) vessels of 30 years old or more: the scales in Tables 1

and 2,

less 22,5 %;

(b) premiums for permanent transfer within the framework of
a joint enterprise: the amounts referred to in Article 8(3);
however, no public aid for this purpose can be given for
vessels with a tonnage less than 20 GRT or 22 GT, or of
30 years old or more;

(c) premiums for other permanent transfer to a third country:
the maximum amounts
the scrapping premiums
for
referred to in (a) above, less 50 %. However, no public aid

for this purpose can be given for vessels with a tonnage
less than 20 GRT or 22 GT, or of 30 years old or more,
except under the conditions provided for in paragraph 6;

(d) premiums for other cases stopping fishing activities perma-
nently: the maximum amounts for the scrapping premiums
referred to in (a) above, less 50 %. However, no public aid
for this purpose can be given for vessels with a tonnage
less than 20 GRT or 22 GT, except under the conditions
provided for in paragraph 6.

6.
Notwithstanding paragraph 5(c) and (d), where the vessel
is definitively assigned for the preservation of historical heri-
tage in the territory of a Member State, or for the fisheries
research or training activities of public or semi-public bodies of
a Member State, or for the control of fishing activities,
in
particular by a third country, public aid shall be granted under
the conditions given in paragraph 5(a).

7. Without prejudice to Article 16, measures to restrict
fishing activities may include restrictions on the fishing days or
days at sea authorised for a specific period. Such measures may
not give rise to any public aid.

Article 8

Joint enterprises

1. Member States may take measures to promote the crea-
tion of joint enterprises.

For the purpose of this Regulation ‘joint enterprise’ means a
commercial enterprise with one or more partners who are
nationals of the third country in which the vessel is registered.

2.
In addition to the conditions laid down in Article 7 and
Annex III for the grant of a premium for permanent transfer,
the following conditions shall apply:

(a) the creation and registration of a commercial enterprise, in
accordance with the laws of the third country, or the
acquisition of holdings in an enterprise that is already
registered, for the purpose of engaging in a commercial
activity in the fisheries sector in the waters under the
sovereignty or the jurisdiction of the third country. The
Community partner must hold a significant proportion,
generally between 25 % and 75 %, of the share capital;

(b) ownership of the permanently transferred vessel must be
handed over to the joint enterprise in the third country. For
five years the vessel may not be used for fishing activities
other than those authorised by the competent authorities of
the third country, nor may it be used by other shipowners.

3.
The premiums for the creation of joint enterprises may
not exceed 80 % of the maximum amount of the premium for
scrapping referred to in Article 7(5)(a).

The premiums cannot be cumulated with the premiums
referred to in Article 7(5)(a),(c),(d).

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the
The management authority shall pay 80 % of
4.
premium to the applicant when the vessel is transferred to the
joint enterprise, after the applicant has provided proof that a
bank guarantee for an amount equal to 20 % of the premium
has been lodged.

5.
Each year for five consecutive years from the date of
constitution of the joint enterprise or the date on which the
Community partner acquired holdings in the enterprise, appli-
cants shall submit to the management authority a report on the
implementation of the activity plan, including data on catches
and markets of fisheries products, in particular products landed
in or exported to the Community, with supporting documents,
together with the enterprise's balance sheet and a statement of
its net worth. The management authority shall forward the
report to the Commission for information.

The balance of the premium shall be paid to applicants after
two years of activity and after the first two reports have been
received.

The guarantee shall be released, provided all the condi-

6.
tions are met, once the fifth report has been approved.

7. Where necessary, the Commission shall adopt detailed
rules for the application of this Article in accordance with the
procedure laid down in Articles 23(2).

Article 9

Public aid for fleet renewal and modernisation of fishing
vessels

1. Without prejudice to the conditions laid down in the
second subparagraph of Article 3(3), public aid for
fleet
renewal and modernisation shall be granted only on the
following conditions and those set out in Article 6 and Annex
III and provided that the overall annual objectives of the multi-
annual guidance programme are respected:

(a) where the annual objectives for the segments concerned are
respected, Member States must ensure that during the
programming period from 2000 to 2006 the entry of new
capacity with public aid is compensated by the withdrawal
of a capacity without public aid which is at least equal to
the new capacity introduced in the segments concerned,
taken in aggregate and in terms of both tonnage and
power;

(b) until 31 December 2001, where the annual objectives of
the segments concerned are not yet respected, Member
States must ensure that during the period from 2000 to
2001 the entry of new capacity with public aid is compen-
sated by the withdrawal of a capacity without public aid

which is at least 30 % greater than the new capacity intro-
duced in the segments concerned, taken in aggregate and in
terms of both tonnage and power.

The capacity withdrawn cannot be replaced by any capacity
other than the new capacity which is introduced with
public aid as provided for under this point;

(c) public aid may also be granted for the equipping or moder-
nising of vessels where this does not concern capacity
measured in terms of either tonnage or power.

The Council shall, acting in accordance with the procedure laid
down in Article 37 of the Treaty, decide by 31 December 2001
on any necessary adjustments to be applied as from 1 January
2002 to the provisions of this paragraph.

2.
the annual

The effect of granting public aid shall be accounted for in
implementation report referred to in Article 21.

3.
The indicators relating to the granting of public aid for
fleet renewal and modernisation of fishing vessels in the plans,
as provided for in Annex I
(d), must be drawn up in
(2)
accordance with this Article.

Expenditure eligible for public aid as referred to in para-

4.
graph 1 may not exceed the following amounts:

(a) construction of fishing vessels: twice the scales in Table 1

in Annex IV;

(b) modernisation of fishing vessels including, where applic-
able, the cost of remeasuring tonnage in accordance with
Annex I
to the 1969 Tonnage Measurement Conven-
tion (1): the scales in Table 1 of Annex IV.

Article 10

Common provisions on fishing fleets

1.
Public aid for fleet renewal and the modernisation of
vessels can be permitted only where, within the time allowed,
the Member State:

(a) has submitted the information provided for in Article 5;

(b) has complied with Council Regulation (EEC) No 2930/86
of 22 September 1986 defining characteristics for fishing
vessels (2);

(c) has implemented the arrangements referred to in Article

6(1); and

(d) complies with the overall annual objectives, specified in the

multiannual guidance programmes.

2.
If the obligations referred to in paragraph 1 (a) to (d) are
not respected, the Commission may adjust the capacity objec-
tives in the multiannual guidance programme in the light of
the information available to it, in accordance with the proce-
dure laid down in Article 23(2).

The following provisions shall apply to the cumulation of

3.
public aids to the fishing fleet:

(a) expenditure on modernisation shall not be eligible for aid
for five years following the grant of public aid for the
construction of the vessel concerned;

(1) International Convention on tonnage measurement of ships, drawn
up in London in 1969 under the auspices of the international mari-
time organisation (IMO).

(2) OJ L 274, 25.9.1986, p. 1. Regulation as last amended by Regula-

tion (EC) No 3259/94 (OJ L 339, 29.12.1994, p. 11).

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(b) permanent withdrawal premiums within the meaning of
Article 7(S) and premiums for the creation of joint enter-
prises within the meaning of Article 8 may not be added to
other Community aid granted under this Regulation or
Regulations (EEC) No 2908/83 (1), (EEC) No 4028/86 (2)
and (EC) No 2468/98. These premiums are to be reduced:

— technological
niques),

innovations

(more selective fishing tech-

— organisation of the production, processing and marketing
chain (promotion and added value of the products),

— professional requalification or training.

(i) by a part of the amount previously received in the case
of modernisation aid and/or the allowance for a tempo-
rary joint venture;
is calculated pro rata
temporis for the five-year period preceding the perma-
nent withdrawal or the setting up of the joint enter-
prise;

this part

(ii) by the total amount previously received in the case of
aid for the temporary cessation of activities within the
meaning of Article 16 (1) of this Regulation and under
Article 14 of Regulation (EC) No 2468/98 paid during
the year preceding permanent withdrawal or the setting
up of the joint enterprise.

4.
An aid for construction or for modernisation, under this
Regulation shall be reimbursed pro rata temporis when the vessel
concerned is deleted from the fishing vessel register of the
Community, within 10 years from the construction, or within
five years from the modernisation works.

Article 11

Small-scale coastal fishing

1.
For the purposes of this Article, ‘small-scale coastal fish-
ing’ means fishing carried on by vessels of an overall length of
less than 12 metres.

2. Member States may take additional measures as provided
for under this Regulation to supplement
the measures to
improve the conditions in which small-scale coastal fishing is
carried on, under the terms laid down in this Article.

3. Where a group of owners of vessels or families of fish-
ermen involved in small-scale coastal fisheries cooperatively
implement an integrated collective project
to develop or
modernise this fishing activity, a lump-sum premium part-
financed by the FIFG may be granted to the participants.

4.
The following projects, inter alia, may be considered inte-
grated collective projects for the purpose of this paragraph:

— safety equipment on board and improvement of sanitary

and working conditions,

(1) Council Regulation (EEC) No 2908/83 of 4 October 1983 on a
common measure for restructuring, modernising and developing the
fishing industry and for developing aquaculture (OJ No L 290,
22.10.1983, p. 1). Regulation as last amended by Regulation (EEC)
No 3733/85 (OJ L 361, 31.12.1985, p. 78).

(2) Council Regulation (EEC) No 4028/86 of 18 December 1986 on
Community measures to improve and adapt structures in the fishe-
ries and aquaculture sector (OJ L 376, 31.12.1986, p. 7). Regulation
as last amended by Regulation (EEC) No 3946/92 (OJ L 401,
31.12.1992, p. 1).

5.
The lump-sum premium shall not exceed EUR 150 000
per integrated collective project. The management authority
shall determine the amount of the premium actually paid and
how it is shared between the beneficiaries according to the
scale of the project and the financial commitments made by
each participant.

Article 12

Socioeconomic measures

For

the purposes of

‘fisherman’ means
1.
anyone engaging in his main occupation on board an opera-
tional seagoing fishing vessel.

this Article,

2.
The Member States may take, for fishermen, measures of
a socioeconomic nature associated with restructuring of the
Community fisheries sector within the meaning of Article 11
of Regulation (EEC) No 3760/92.

Financial assistance from the FIFG may be granted only

3.
for the following measures:

(a) part-financing of national early-retirement schemes for fish-
ermen, provided that the following conditions are fulfilled:

(i) at the time of early retirement, the age of the beneficia-
ries of the measure must be not more than 10 years
from the legal retirement age within the meaning of the
legislation in force in the Member State, or the benefi-
ciaries must be aged at least 55;

(ii) the beneficiaries can show that they have worked for at

least 10 years as fishermen.

However, contributions to the normal retirement scheme
for fishermen during the period of early retirement shall not
be eligible for financial assistance from the FIFG.

In each Member State, for the entire programming period
the number of beneficiaries may not exceed the number of
jobs eliminated on board fishing vessels as a result of those
vessels permanently stopping fishing activities within the
meaning of Article 7;

(b) granting individual compensatory payments to fishermen
who can show that they have worked for at least twelve
months as fishermen, on the basis of an eligible cost
limited to EUR 10 000 per individual beneficiary, provided
the vessel on which the beneficiaries were employed has
been the object of measures permanently stopping its activ-
ities, within the meaning of Article 7;

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(c) granting non-renewable individual compensatory payments
to fishermen who can show that they have worked for at
least five years as fishermen, to help them retrain or diver-
sify their activities outside maritime fisheries under an indi-
vidual or collective social plan, on the basis of an eligible
cost limited to EUR 50 000 per individual beneficiary; the
management authority shall determine
individual
amount according to the scale of the retraining and diversi-
fication project and the financial commitment entered into
by the beneficiary;

the

(d) granting individual premiums to fishermen younger than 3
5 years who can demonstrate that they have worked at
least five years as fishermen or can demonstrate equivalent
vocational training and who acquire for the first time part
or total ownership in a fishing vessel, provided that the
following conditions are fulfilled:

(i) the fishing vessel must have an overall length between
7 and 24 metres; at the time of acquisition of owner-
ship it must be aged between 10 and 20 years, it must
be operational and it must be registered in the fishing
vessel register of the Community;

(ii) the transfer of ownership does not occur within the

same family up to the second degree.

The management authority shall determine the amount of
each individual premium in particular on the basis of the
size and age of the vessel and of the financial conditions of
the acquisition (cost of acquisition of ownership; level and
conditions of bank loan; guarantee, if any, given by a third
party; and/or other financial engineering facilities).

subject to a permanent withdrawal pursuant to Article 7,
within a period of less than five years after being paid the
premium.

5.
All arrangements, methods of calculation, criteria and
other rules that the management authority shall establish for
the implementation of this Article shall be described in the
programme complements referred to in Article 18(3) of Regu-
lation (EC) No 1260/1999.

6.
The Member States may introduce nationally financed
accompanying social measures for fishermen in order to facili-
tate temporary cessation of fishing activities in the framework
of plans for the protection of aquatic resources.

TITLE III

PROTECTION AND DEVELOPMENT OF AQUATIC RESOURCES,
AQUACULTURE, FISHING PORT FACILITIES, PROCESSING
AND MARKETING AND INLAND FISHING

Article 13

Scope

1. Member States may, under the conditions specified in
Annex III, take measures to encourage capital investment in the
following fields:

(a) fixed or movable facilities aimed at the protection and
development of aquatic resources, except restocking;

The management authority shall also establish the other
conditions and criteria under which acquisition takes place.

(b) aquaculture;

In any event, the amount of the premium may not exceed
10 % of the cost of acquisition of ownership nor exceed the
amount of EUR 50 000.

4.
The management authority shall make the necessary
arrangements, in particular through appropriate control mech-
anisms, to ensure:

(a) that the beneficiaries of the measure referred to in para-
graph 3(a) permanently give up work as fishermen;

(b) that no one fisherman can benefit from more than one of

the measures referred to in paragraph 3;

(c) that the compensation referred to in paragraph 3 (b) is
refunded on a pro rata temporis basis where the beneficiaries
return to their work as fishermen within a period of less
than one year after being paid the compensation;

(d) that the compensation referred to in paragraph 3 (c) is
refunded on a pro rata temporis basis where the beneficiaries
return to their work as fishermen within a period of less
than five years after being paid the compensation;

(c) fishing port facilities;

(d) processing and marketing of fishery and aquaculture prod-

ucts;

(e) inland fishing.

Financial assistance from the FIFG may be granted only

2.
for projects which:

(a) contribute to lasting economic benefits from the structural

improvement in question;

(b) offer an adequate guarantee of technical and economic

viability;

(c) avoid counterproductive effects, particularly the risk of

creating surplus production capacity.

TITLE IV

OTHER MEASURES

Article 14

(e) that the beneficiaries of the measure referred to in para-

Measures to find and promote new market outlets

graph 3 (c) actually engage in a new activity;

(f) that the premium referred to in paragraph 3(d) is refunded
on a pro rata temporis basis where the ownership acquired
is
by the beneficiary is transferred, or where the vessel

1. Member States may, under the conditions specified in
Annex III, take measures to encourage collective operations to
find and promote new market outlets for fishery and aquacul-
ture products,

in particular:

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(a) operations associated with quality certification, product
labelling, rationalisation of product names and product
standardisation;

(b) promotion campaigns, including those highlighting quality;

(i) 3 %, 2 % and 1 % respectively of the value of the prod-

ucts marketed by the producer organisation;

(ii) 60 %, 40 % and 20 % respectively of the administrative

costs of the producer organisation;

(c) projects to test consumer and market reactions;

(d) organisation of and participation in trade fairs and exhibi-

tions;

(e) organisation of study and sales visits;

(f) market studies and surveys, including studies relating to the
prospects for marketing Community products in third
countries;

(g) campaigns improving marketing conditions;

(h) sales advice and aids, services provided to wholesalers,

retailers, and producer organisations.

2.

Priority is to be given to investments:

(a) to encourage the sale of surplus or underexploited species;

(b) implemented by organisations officially recognised within

the meaning of Regulation (EEC) No 3759/92;

(c) jointly implemented by several producer organisations or
other organisations of the sector recognised by national
authorities;

(d) pursuing a quality policy for fishery and aquaculture prod-

ucts;

(e) to promote products obtained using environmentally

friendly methods.

3.
The measures must not be based around commercial
brands nor make reference to particular countries or a
geographic zone, except in specific cases where official recogni-
tion of origin with reference to a specified geographical zone
for a product or process is granted pursuant to Regulation
(EEC) No 2081/92 of 14 July 1992 on the protection of
geographical indications and designations of origin for agricul-
tural products and foodstuffs (1). The reference may be used
only from the date on which the name has been entered in the
register provided for in Article 6(3) of Regulation (EEC) No
2081/92.

Article 15

Operations by members of the trade

The Member States may encourage the creation and facili-
1.
tate the operation of producer organisations recognised under
Regulation (EEC) No 3759/92:

(a) aid can be granted to producer organisations created after 1
January 2000 for three years following the date of recogni-
tion. This aid for the first, second and third years must be
within both the following limits:

(1) OJ L 208, 27.7.1992, p. 1. Regulation as last amended by Regula-

tion (EC) No 1068/97 (OJ L 156, 13.6.1997, p. 10).

(b) without prejudice to the aid referred to at (a), aid may be
granted to producer organisations that have been specifi-
cally recognised under Article 7a(1) of Regulation (EEC) No
3759/92 during the three years following the date of the
specific recognition to facilitate the implementation of their
plans to improve quality. The amount of this aid, for the
first, second and third years shall not exceed 60 %, 50 %
and 40 % respectively of the costs incurred by the organ-
isation in implementing the plan;

(c) the aid referred to at (a) and (b) shall be paid to the final
beneficiaries during the year following that for which it was
granted, and not later than 31 December 2008.

2.
The Member States may encourage short-term operations
of collective interest with a broader scope than operations
normally undertaken by private businesses, carried out with the
active contribution of members of the trade themselves or
carried out by organisations acting on behalf of the producers
or by other organisations having been recognised by the
management authority, and serving to attain the objectives of
the common fisheries policy.

Eligible operations

3.
following topics:

shall

relate in particular

to the

(a) management and control of conditions for access to

certain fishing zones and quota management;

(b) management of fishing effort;

(c) promotion of gear or methods recognised by the manage-

ment authority as being more selective;

(d) promotion of technical measures for the conservation of

resources;

(e) promotion of measures improving the working conditions
and the sanitary conditions concerning the products, on
board and landed;

(f) collective aquaculture facilities, restructuring or improve-
ment of aquaculture sites, collective treatment of aquacul-
ture effluent;

(g) eradication of the pathological risks of fish farming or
parasites in catchment areas or coastal ecosystems;

(h) collection of basic data and/or preparation of environ-
mental management models for fisheries and aquaculture
with a view to drawing up integrated management plans
for coastal areas;

(i) organisation of electronic trade and other information
technologies to disseminate technical and commercial
information;

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(j) creation of business incubators in the sector and/or centres
for the collection of fishery and aquaculture products;

(k) access to training, particularly in quality, and organisation
of transmission of know-how on board vessels and on
land;

(l) design and application of systems to improve and control
instru-

traceability, health conditions, statistical

quality,
ments and environmental

impact;

(m) creation of added value in products (inter alia, through
experimentation, innovation, the addition of value to by-
products and co-products);

(n) improvement of knowledge and transparency in produc-

tion and in the market.

Expenditure incurred in the normal production process in firms
shall not be eligible under this paragraph.

The Commission shall adopt detailed rules

4.
the
application of this Article in accordance with the procedure
laid down in Article 23(2).

for

The Member States may grant financial compensation to
2.
fishermen and owners of vessels where a Council Decision
imposes technical restrictions on the use of certain gear or
fishing methods; this aid is intended to cover the technical
adjustment and may not be paid for more than six months.

3.
The financial contribution from the FIFG to the measures
referred to in paragraphs 1 and 2 per Member State for the
entire period from 2000 to 2006 may not exceed the higher of
the following two thresholds: EUR 1 million or 4 % of the
Community financial assistance allocated to the sector in the
Member State concerned.

The management authority shall determine the amount of
compensation as provided for in paragraphs l and 2 to be paid
in individual cases taking account of relevant parameters such
as the real losses suffered, the scale of the conversion effort,
recovery plan or technical adjustment effort.

4.
The measures taken under this Article may under no
circumstances be invoked as contributing to the attainment of
the objectives of the multiannual guidance programme referred
to in Article 5, nor can they be justified by a recurrent seasonal
suspension of activity as part of the ongoing management of
fisheries.

Article 16

Article 17

Temporary cessation of activities and other financial
compensation

Innovative measures and technical assistance

1.
The Member States may grant compensation to fishermen
and owners of vessels for the temporary cessation of activities
in the following circumstances:

caused by biological

(a) in the event of unforeseeable circumstances, particularly
those
the granting of
compensation may last for no more than two months per
year or six months over the entire period from 2000 to
2006. The management authority shall forward suitable
scientific proof to the Commission in advance;

factors;

(b) where a fisheries agreement is not renewed, or where it is
suspended, for the Community fleets dependent on the
agreement;
last
longer than six months; it may be extended by a further six
months provided a conversion plan approved by the
Commission is implemented for the fleet concerned;

the granting of compensation may not

(c) where a plan is introduced for the recovery of a resource
threatened with exhaustion, decided by the Commission or
by one or some Member States; the granting of compensa-
tion may last for no more than two years and may be
extended by a further year. Compensation may also be
granted, subject to the same restrictions as to duration, to
the processing industry where it depends for its supply on
a resource covered by a recovery plan and where imports
cannot compensate for the reduced supply. Before the
recovery plan is put into place the management authority
shall forward to the Commission suitable scientific and
economic justification. The Commission shall
request
without delay the opinion of the Committee provided for
in Article 16 of Regulation (EEC) No 3760/92.

1.
The Member States shall envisage in the plans referred to
in Articles 3(3) and defined in Article 9(b) of Regulation (EC)
No 1260/1999 the means necessary to undertake studies, pilot
projects, demonstration projects, training measures, technical
assistance, the exchange of experience and publicity connected
with the preparation, implementation, monitoring, evaluation
or adjustment of the operational programmes and the single
programming documents.

2.
‘Pilot project’ means a project carried out by an economic
operator, a scientific or technical body or another competent
body to test, in conditions approaching actual conditions in the
industry, the technical reliability and/or financial viability of an
innovative technology with a view to acquiring and dissemi-
nating technical and/or financial knowledge of the technology
being tested. Pilot projects shall always comprise scientific
monitoring of sufficient intensity and duration to obtain signif-
icant results; they must be the subject of scientific reports
forwarded to the management authority. The latter shall imme-
diately forward such reports to the Commission for informa-
tion.

Experimental fishing projects shall be eligible as pilot projects
provided their aim is the conservation of fishery resources and
they implement more selective techniques.

3.
The measures referred to in paragraph 1 may, in partic-
ular, concern the topics referred to in Article 15(2) and (3),
provided they are implemented on the initiative of public or
semi-public bodies or other bodies designated to that end by
the management authority.

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They may also include the construction or transformation of
vessels provided that these vessels are destined exclusively for
fisheries research and training activities, undertaken by public
or semi-public bodies, under the flag of a Member State.

In addition, the measures referred to in paragraph 1 may
4.
include the promotion of equal employment opportunities
between men and women working in the sector.

Article 22

Committee procedure

The measures necessary for the implementation of this Regula-
tion relating to matters referred to in Articles 4, 5, 6, 8, 10, 15
and 21 shall be adopted in accordance with the management
procedure referred to in Article 23(2).

TITLE V

GENERAL AND FINANCIAL PROVISIONS

Article 23

Committees

Article 18

Compliance with the conditions governing assistance

The management authority shall ensure that the special condi-
tions governing assistance listed in Annex III are complied
with.

It shall also satisfy itself as to the technical capacity of benefi-
ciaries and the financial viability of firms before granting aid.

Article 19

Notification of aid schemes

The Member States shall notify the Commission of the
1.
aid schemes provided for in the plans referred to in Article 3(3)
and defined in Article 9(b) of Regulation (EC) No 1260/1999,
in accordance with Articles 87 to 89 of the Treaty.

2. Within the scope of this Regulation, Member States may
introduce supplementary aid measures subject to conditions or
rules other than those laid down in this Regulation, or covering
a sum in excess of the maximum amounts referred to in Annex
IV, provided they comply with Articles 87 to 89 of the Treaty.

Article 20

Monetary conversion

For Member States which are not
the
amounts in euro set by this Regulation shall be converted into
national currency at the rate published in the C series of the
Official Journal of the European Communities.

in the euro zone,

The conversion shall be made at the rate applicable on 1
January of the year of the Member State's decision to grant the
premium or aid.

1.

The Commission shall be assisted:

(a) for the purpose of the implementation of Articles 8, 15
and 21 by the Committee on structures for fisheries and
aquaculture established by Article 51 of Regulation (EEC)
No 1260/1999; and

(b) for the purpose of the implementation of Articles 4, 5, 6
and 10 by the Committee for fisheries and aquaculture
established by Article 17 of Regulation (EEC) No 3760/92.

2. Where reference is made to this paragraph, the provisions
of Articles 4 and 7 of Decision 1999/468/EC shall apply.

The period laid down in Article 4(3) of Decision 1999/468lEC
shall be set at one month.

3.

The Committees shall adopt their rules of procedure.

Article 24

Transitional provisions

The following shall be repealed with effect from 1 January
2000:
— Regulation (EC) No 2468/98,
— Article 7(1), (2), (3) and Article 7b of Regulation (EEC) No

3759/92;

— Regulation (EEC) No 3140/82 (1).

However, the repealed provisions shall remain applicable for
aid, measures and projects approved before 31 December
1999.

References to the repealed Regulations and Articles shall be
understood as references to this Regulation.

Article 25

Entry into force

Article 21

Implementing rules

This Regulation shall enter
into force on the third day
following that of its publication in the Official Journal of the
European Communities.

The form of the expenditure statements and annual
imple-
mentation reports shall be adopted by the Commission in
accordance with the procedure laid down in Article 23(2).

(1) Council Regulation (EEC) No 3140/82 of 22 November 1982 on
granting and financing aid granted by Member States to producers'
organisations in the fishery products sector (OJ L 331, 26.11.1982,
p. 7).

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

Done at Brussels, 17 December 1999.

For the Council

The President

K. HEMILÄ

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ANNEX I

CONTENTS OF THE PLANS

1. Quantified description of the current situation for each of the fields referred to in Titles II, III and IV

(a) Strengths and weaknesses;

(b) summary of operations undertaken and impact of funds used in previous years;

(c) requirements of the sector, particularly with regard to the constraints of the multiannual guidance programme for

the fishing fleet.

2. Strategy for restructuring the sector

(a) Results of consultations and measures to involve the competent authorities and bodies and socioeconomic partners

at the appropriate levels;

(b) objectives:

(i) general objectives under the common fisheries policy;

(ii) priorities;

(iii) objectives specific to each area of assistance, quantified if possible;

(c) demonstration that public aid is necessary to attain the objectives sought; steps taken to prevent counterproductive

effects, particularly as regards the creation of surplus capacity;

(d) with regard to the fleet:

(i) indicators concerning the development of the fleet in relation to the objectives of the multiannual guidance

programme;

(ii) fishing techniques and gear to be encouraged in the event of redeployment of fishing activities;

(e) anticipated impact (on employment, production, etc.).

3. Means to attain the objectives

(a) The measures (legal, financial or other) planned in each field to implement the plans, particularly aid schemes;

(b) indicative financing schedule covering the entire programming period and listing the regional, national,

Community or other resources provided for each area of assistance;

(c) the requirements in terms of studies, pilot projects, demonstration projects, training, technical assistance and
publicity measures connected with the preparation, implementation, monitoring, evaluation or adjustment of the
measures concerned.

4. Implementation

(a) Management authority designated by the Member State;

(b) steps taken to ensure efficient and effective implementation, including monitoring and evaluation; definition of the

quantified indicators;

(c) provisions relating to checks, penalties and publicity measures;

(d) with regard to the fleet:

(i) the methods for monitoring trends in fishery resoures, particularly vulnerable resources;

(ii) for static gear, the arrangements for monitoring fishing effort, including trends in the number and size of gear.

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ANNEX II

MINIMUM CONTENT OF SUBSEQUENT MULTIANNUAL GUIDANCE PROGRAMMES (MAGPs) FOR THE
FISHING FLEET

1. Updating of the description of the situation provided for in Annex I

This consists in describing the change in the situation regarding fisheries, the fleet and related employment since the
date of submission of the programming documents referred to in Article 3.

2. Results from the previous programme

(a) Member States shall by 1 May 2001 identify and comment on the progress achieved and means used in attaining

the objectives set for the 1997-2001 programme;

(b) analyse the general administrative and socioeconomic context in which it was implemented and in particular,
in which measures to reduce fishing activity were implemented;

where appropriate,

(c) specify and comment on the Community, national and regional financial resources committed in attaining the

results achieved, for each fleet segment.

3. New guidelines

On the basis of the replies given to points 1 and 2 indicate the guidelines which should be given to the various fleet
segments for the subsequent MAGPs,

in particular in relation to the following two operations:

(a) fleet renewal: criteria for joining and leaving the fleet, for each segment and associated funding. Legal or
administrative provisions enabling the Member State to monitor vessels joining and leaving its fleet. Measures
taken by the Member State per fleet segment to ensure that public aid granted for fleet renewal and adjustment of
fishing effort does not have contradictory effects where the pursuit of the objectives of the programmes is
concerned;

(b) adjustment of fishing effort: desirable evolution of fishing effort per segment until the end of the subsequent
MAGP, expressed in relation to the objectives set for each segment for 31 December 2001. Associated laws,
regulations or administrative provisions. Systems for managing fishing activity. Extent of administrative and
financial resources to be used to attain the new objectives thus set.

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ANNEX III

SPECIAL CONDITIONS AND CRITERIA FOR ASSISTANCE

1.

Implementation of multiannual guidance programmes (Title II)

1.0. Age of vessels

For the purposes of this Regulation, the age of a vessel is a whole number defined as the difference between the year
of the management authority's decision to grant a premium or aid and the year in which the vessel was built (or, if
this is not known, the year of commissioning).

1.1. Permanent withdrawal (Article 7(3))

(a) Permanent withdrawal may concern only vessels which have carried out a fishing activity for at least 75 days at
sea in each of the two periods of 12 months preceding the date of the application for permanent withdrawal or,
as the case may be, a fishing activity for at least 80 % of the number of days at sea permitted by current national
regulations for the vessel concerned.

In the Baltic Sea the number of 75 days shall be reduced to:

— 60 for vessels registered in ports situated north of parallel 59°30(cid:1)N,

— 40 for vessels registered in ports situated north of parallel 59°30(cid:1)N and fishing for salmon;

(b) the following conditions must be met:

(i) prior to its permanent withdrawal, the vessel must be registered in the fishing vessel register of the

Community;

(ii) the vessel must be operational at the time the decision is taken to grant the premium;

(iii) after permanent withdrawal, the fishing licence must be cancelled and the vessel declared permanently

deleted from the fishing vessel register of the Community;

(iv) in the event of permanent transfer to a third country, the vessel must be registered in the register of the third

country without delay and may never return to Community waters;

(c) if a vessel is lost between the date of the decision to grant the premium and the actual date of permanent
withdrawal, the management authority shall make a financial correction for the amount of the compensation
paid by the insurance;

(d) no public aid within the meaning of Article 7 may be paid for a vessel transferred to a third country to replace a

lost vessel belonging to a joint enterprise within the meaning of Article 8.

1.2. Joint enterprises (Article 8)

(a) In addition to the conditions for the permanent transfer of a vessel to a third country within the meaning of
Article 7(3)(b) and point 1.1 of this Annex, vessels, transferred within the framework of joint enterprises, must
meet the following conditions:

(i) they must have been operating for at least the last five years, under the flag of a Member State of the

Community:

— in Community waters,

— and/or in the waters of a third country either under a fisheries agreement with the Community or under

another agreement,

— and/or in international waters where fisheries are ruled by an international Convention;

(ii) they must, within six months of the date of the decision to grant the premium, be fitted out with the
technical equipment needed to operate in the waters of the third country under the terms of the fishing
authorisation issued by the authorities of the third country; they must comply with the Community safety
regulations and be adequately insured as decided by the management authority; costs associated with such a
fitting,

if any, are not eligible for a Community aid;

(b) when the application for the premium for joint enterprises is lodged, beneficiaries must provide the management

authority with the following information:

(i) a description of the vessel, including, in particular, the internal number, registration number, tonnage, power

and year of entry into service;

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(ii) during the last five years: service and activity of the vessel (and conditions under which the activity was
carried on); indication of fishing zones (Community waters/other); any previous Community, national or
regional aid received;

(iii) proof of the project's financial viability,

including,

in particular:

— a financing plan showing the contributions of the different shareholders in cash and in kind; level of
contribution of Community/third country partners; proportion of the premium provided for in Article
7(5)(b), which is to be invested in cash in the capital of the joint enterprise,

— an activity plan covering at least five years, showing, in particular, fishing zones, places of landing and

final destination of catches;

(iv) a copy of the insurance contract;

(c) the following conditions must be met by the beneficiary during a period of five years from the transfer of

ownership of the vessel to the joint enterprise:

(i) any change in the conditions under which the vessel is operated (particularly change of partner, change in the
share capital of the joint enterprise, change of flag, change of fishing zone), within the limits of the
conditions referred to in Article 8(2), shall be subject to prior authorisation by the management authority;

(ii) a vessel lost through shipwreck must be replaced by an equivalent vessel within one year of the shipwreck;

(d) if the conditions at (a) and (b) are not fulfilled when the application for the premium for joint enterprises is
lodged, the public aid shall be restricted to the premium for permanent transfer referred to in Article 7(5)(c);

(e) without prejudice to Articles 29(4) and 38 of Regulation (EC) No 1260/1999, the management authority shall
carry out a financial correction on the difference between the premium for joint enterprise and the premium for
permanent transfer of the same vessel (hereinafter called ‘difference’),

in the following cases:

(i) if the beneficiary notifies to the management authority a change in operating conditions that lead to
non-compliance with the conditions referred to in Article 8(2) of this Regulation, including the sale of the
vessel, the transfer of holding by the Community partner or the retirement of the Community shipowner in
the joint enterprise the financial correction shall be equal to part of the amount of the difference; this part
shall be calculated pro rata temporis over the period of five years;

(ii) if during a control it is found that the conditions provided for in Article 8(2) of this Regulation and point (c)
of this paragraph are not complied with, the financial correction shall be equal to the difference;

(iii) if the beneficiary fails to provide the activity reports provided for in Article 8(5) of this Regulation after
having been served notice by the management authority, the financial correction shall be equal to part of the
amount of the difference; this part shall be calculated pro rata temporis over the period of five years;

(iv) if the vessel is lost and not replaced, the financial correction shall be equal to part of the amount of the

difference; this part shall be calculated pro rata temporis over the period of five years.

1.3. Fleet renewal (Articles 6 and 9)

(a) Vessels must be built to comply with the Regulations and Directives governing hygiene, safety, health, product
quality and working conditions and the Community provisions concerning the measurement of vessels and the
monitoring of fishing activities;

(b) vessels shall be entered in the appropriate segment of the Community register;

(c) without prejudice to Articles 7, 8 and 12(3)(d) the transfer of ownership of a fishing vessel shall not give rise to

Community aid.

1.4. Vessel modernisation (Articles 6 and 9)

(a) Vessels must be registered in the fishing vessels register of the Community. Changes in vessel characteristics must
be communicated to this register and the vessels must be measured in accordance with Community provisions,
when they are modernised;

(b) investments should relate to:

(i) the rationalisation of fishing operations, in particular by the use of more selective fishing technologies and

methods on board in order to avoid undesirable by-catches,

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and/or

(ii) improvement of the quality of products caught and preserved on board, the use of better fishing and
preserving techniques and the implementation of legal and regulatory provisions regarding health,

and/or

(iii) improvement of working and safety conditions.

Without prejudice to Article 16(2), the replacement of fishing gear shall not be considered eligible expenditure.

2.

Investment in the areas referred to in Title III

2.0. General provisions

(a) Projects in undertakings may involve capital investment in production and management (construction, enlarge-

ment, equipping and modernisation of facilities);

(b) capital investment to improve conditions of hygiene or human or animal health, to improve product quality or
reduce pollution of the environment and, where relevant, to increase production itself, shall be eligible for
assistance;

(c) the transfer of ownership of an undertaking shall not give rise to the grant of Community aid.

2.1. Protection and development of aquatic resources

Expenditure eligible for assistance from the FIFG may concern only the installation of fixed or movable facilities to
protect and develop aquatic resources and the scientific monitoring of projects. Such projects must:

(a) be of collective interest;

(b) be implemented by public or semi-public bodies, recognised professional organisations or other bodies desig-

nated to that end by the management authority;

(c) not have a negative impact on the aquatic environment.

Each project must include scientific monitoring for at least five years, comprising in particular the evaluation and
monitoring of the development of aquatic resources in the waters concerned. The management authority shall
forward the scientific monitoring reports to the Commission every year for information.

2.2. Aquaculture

(a) For the purposes of this Regulation,

‘aquaculture’ means the rearing or culture of aquatic organisms using
techniques designed to increase the production of the organisms in question beyond the natural capacity of the
environment; the organisms remain the property of a natural or legal person throughout the rearing or culture
stage, up to and including harvesting;

(b) the promoters of intensive fish-farming projects shall forward the information provided for in Annex IV to
Directive 85/337/EEC (1) to the management authority together with their application for public aid. The
management authority shall decide whether the project must be submitted for assessment under Articles 5 to 10
of that Directive. Where the public aid is granted the cost of collecting information on environmental impact and
any assessment costs shall be eligible for assistance from the FIFG;

(c) investments in works concerning the installation or improvement of water circulation in aquaculture enterprises

and on service vessels shall be eligible;

(d) notwithstanding Group 3 in Table 3 in paragraph 2 of Annex IV, where investments concern the use of
techniques that substantially reduce environmental impact, the contribution of private beneficiaries (C) may be
restricted to 30 % of eligible expenditure in Objective 1 regions and 50 % in other areas, instead of 40 % and
60 % respectively.

2.3. Fishing port facilities

Priority shall be given to investments of collective interest to fishermen using a port and contributing to the general
development of the port and to the improvement of services offered to fishermen. Investments shall relate in
particular to installations and equipment intended:

(a) to improve the conditions under which fishery products are landed, treated and stored in ports;

(b) to support fishing vessel activities (provision of fuel,

ice and water, maintenance and repair of vessels);

(c) to improve jetties with a view to improving safety during the landing or loading of products.

(1) Council Directive 85/337/EEC of 27 June 1985 on the assessment of the effects of certain public and private projects on the

environment (OJ L 175, 5.7.1985, p. 40). Directive as amended by Directive 97/11/EC (OJ L 73, 14.3.1997, p. 5).

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2.4. Processing and marketing

(a) For the purposes of this Regulation, ‘processing and marketing of fishery and aquaculture products’ means all
operations, including handling, treatment, production and distribution, between the time of landing or harvesting
and the end-product stage;

(b) investments shall not be eligible for assistance where they concern:

(i) fishery and aquaculture products intended to be used and processed for purposes other than human
consumption, with the exception of investments exclusively for the treatment, processing and marketing of
fishery and aquaculture product wastes;

(ii) the retail trade.

(c) Notwithstanding group 3 in Table 3 in paragraph 2 of Annex IV, where investments concern the use of
collective facilities or techniques that substantially reduce environmental impact, the contribution of private
beneficiaries (C) may be restricted to 30 % of eligible expenditure in Objective 1 regions and 50 % in other areas,
instead of 40 % and 60 % respectively.

2.5. Inland fishing

(a) For the purpose of this Regulation, ‘inland fishing’ means fisheries carried out for commercial purpose by vessels
operating exclusively in inland waters of the territory of Member States and which are not subject to the
provisions of Title II;

(b) when the investment concerns the construction of a vessel for inland fishing, the provisions of point 1.3(a) of

Annex III shall apply;

(c) when the investment concerns the modernisation of a vessel for inland fishing, the provisions of point 1.4(b) of

Annex III shall apply;

(d) investments shall not be eligible for assistance if they are likely to jeopardise the equilibrium between the fleet

size and the corresponding fish resources available;

(e) scrapping premiums for vessels for inland fishing shall not be eligible for assistance;

(f) the management authority shall take all necessary measures to ensure that vessels receiving financial assistance

from the FIFG under Article 13 shall continue to operate exclusively in inland waters.

3. Measures to find and promote new market outlets (Article 14)

(a) Eligible expenditure shall cover in particular:

(i) the costs of advertising agencies and other service providers involved in the preparation and implementation

of promotion campaigns;

(ii) the purchase or hire of advertising space and the creation of slogans and labels for the duration of

promotion campaigns;

(iii) expenditure on publishing, external staff, premises and vehicles required for the campaigns;

(b) the beneficiary's operating costs (staff, equipment, vehicles, etc.) shall not be eligible.

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ANNEX IV

SCALES AND RATES OF ASSISTANCE

1. Scales of assistance relating to fishing fleets (Title II)

TABLE 1

Category of vessel by tonnage (GT)

EUR

0 < 10

10 < 25

25 < 100

100 < 300

300 < 500

500 and above

11 000/GT +

2 000

5 000/GT + 62 000

4 200/GT + 82 000

2 700/GT + 232 000

2 200/GT + 382 000

1 200/GT + 882 000

Category of vessel by gross registered tonnes (GRT)

EUR

TABLE 2

0 < 25

25 < 50

50 < 100

100 < 250

8 200/grt

6 000/grt + 55 000

5 400/grt + 85 000

2 600/grt + 365 000

From 1 January 2000, for vessels longer than 24 metres between perpendiculars, and from 1 January 2004, for all
vessels, only table 1 shall apply.

2. Rates of financial participation

For all the operations referred to in titles II, III and IV, the limits on Community financial participation (A), total State
financial participation (national, regional and other) by the Member State concerned (B) and, where applicable,
financial participation by private beneficiaries (C) shall be as follows, expressed as a percentage of eligible costs.

Group 1:
Permanent withdrawal premiums (Article 7), premiums for the creation of joint enterprises (Article 8), small-scale
coastal fishing (Article 11 ), socioeconomic measures (Article 12), protection and development of aquatic resources
(Article 13(1)(a)), fishing port facilities with no financial participation by private beneficiaries (Article 13(1)(c)),
measures to find and promote new market outlets with no financial participation by private beneficiaries (Article 14),
operations by members of the trade with no financial participation by private beneficiaries (Article 15), temporary
cessation premiums and other financial compensation (Article 16),
innovative measures and technical assistance
including pilot projects carried out by public bodies (Article 17).

Group 2:

fleet renewal and modernisation of fishing vessels (Article 9).

Group 3:

facilities with financial participation by private beneficiaries (Article
aquaculture (Article 13(1)(b)),
13(1)(c)), processing and marketing (Article 13(1)(d)), inland fishing (Article 13(1)(e)), measures to find and promote
new market outlets with financial participation by private beneficiaries (Article 14), operations by members of the
trade with financial participation by private beneficiaries (Article 15(2)).

fishing port

Group 4:

pilot projects other than carried out by public bodies (Article 17).

With respect to operations concerning the protection and development of aquatic resources (Article 13(1)(a)), fishing
port facilities (Article 13(1)(c)), measures to find and promote new market outlets (Article 14) and operations by
members of the trade (Article 15), the management authority shall determine whether they fall under group l or group
3,

in particular on the basis of the following considerations:

— collective versus individual

interests,

— collective versus individual beneficiary (producers' organisations, organisations representing the trade),

— public access to the results of the operation versus private ownership and control,

— financial participation by collective bodies, research institutions.

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TABLE 3

Group 1

Group 2

Group 3

Group 4

50 % ≤ A ≤ 75 %

A ≤ 35 %

Objective 1 regions 1 (*)

B ≥ 25 %

B ≥ 5 %

C ≥ 60 %

25 % ≤ A ≤ 50 %

A ≤ 15 %

Other areas

B ≥ 50 %

B ≥ 5 %

C ≥ 60 %

A ≤ 35 %

B ≥ 5 %

C ≥ 40 %

A ≤ 15 %

B ≥ 5 %

C ≥ 60 %

A ≤ 75 %

B ≥ 5 %

C ≥ 20 %

A ≤ 50 %

B ≥ 5 %

C ≥ 30 %

(*) Including those referred to in Article 6(1) of Regulation (EC) No 1260/1999.

In the case of investments in small and medium-sized businesses within the meaning of Commission Recommendation
96/280/EC (1) the (A) rates for groups 2 and 3 may be increased by an amount for forms of finance other than direct
assistance, provided that this increase does not exceed 10 % of the total eligible cost. The contribution of the private
beneficiary shall be reduced accordingly.

(1) Commission Recommendation 96/280/EC of 3 April 1996 concerning the definition of small and medium-sized enterprises (OJ L

107, 30.4.1996, p. 4).