Proposal for a Council Regulation instituting specific measures to compensate the Spanish fisheries, shellfish industry and aquaculture, affected by the oil spills from the Prestige
Date: 2002-12-19
Institutions: European Commission
Subjects: FIFG, Galicia, coastal pollution, economic consequence, economic support, fishing industry, indemnification, marine pollution, shellfish farming

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 19.12.2002
COM(2002) 776 final

2002/0305 (CNS)

Proposal for a

COUNCIL REGULATION

instituting specific measures to compensate the Spanish fisheries, shellfish industry and
aquaculture, affected by the oil spills from the Prestige

(presented by the Commission)

EXPLANATORY MEMORANDUM

Introduction

In  November  2002,  the  tanker  Prestige,  carrying  77.000  tonnes  of  heavy  fuel  oil,  was
shipwrecked off the coast of Galicia, causing oil spills to start arriving to the Spanish coast as
from 16 November 2002. These oil spills are likely to continue for a unforeseeable time, as
the Prestige sank with oil in its tanks and the wreck appears still to be leaking oil.

However, the environmental consequences already to be noted are very substantial: owing to
the oil pollution, fisheries have been closed for a coastline exceeding 900 km and the shellfish
industry banned for some 800 km. These closures are presently affecting almost 7.000 vessels
with  over  16.000  fishermen,  as  well  as  more  than  5.000  people  engaged  in  the  shellfish
industry.  Besides,  also  some  aquaculture  sites  located  in  this  coastline  have  been  damaged.
Other regions are beginning to receive oil spills, too, in particular in Northern Spain.

Because of these suspensions of economic activities in the regions concerned, a great number
of  individuals  and  enterprises  engaged  in  the  fisheries  and  aquaculture  sector  have  suffered
considerable economic damage. In these circumstances, given also the fact that the regions in
question  have  a  high  economic  dependence  on  this  sector,  it  is  necessary  to  foresee
appropriate reparation of the damages which are not compensated by insurance.

Budgetary aspects

For these purposes, the Community should make an appropriate contribution, alongside Spain
as  the  Member  State  currently  concerned,  and  in  line  with  the  budgetary  limits.  The  most
recent  information  from  the  Spanish  authorities  assume  that  132  M€  would  be  required  to
cope with the impact of the oil pollution on the fisheries and aquaculture sector. Most of the
expenditure foreseen (around 80 M€) can be c overed by reprogramming the Spanish share of
the Financial Instrument of Fisheries Guidance (FIFG).

In addition, it is proposed to modify Council Regulation (EC) No 2561/2001 of 17 December
2001, aiming to promote the conversion of fishing vessels and of fishermen that were, up to
1999, dependent on the fishing agreement with Morocco, in order to allow to make a part of
the budgetary resources for the reconversion of these Spanish vessels available instead for the
reparation of the damages in question. A part of this previous allocation, around 30 M€, will
not  be  needed  at  least  immediately  for  those  purposes  and  could  thus  be  transferred  to  be
utilised for these compensations.

Derogation measures

While there exist certain possibilities within the framework of the FIFG to grant assistance on
the  occasion  of  temporary  cessations  of  activities,  as  well  as  for  the  investments  for
aquaculture, the existing rules have been aimed at normal circumstances and do not allow to
cope with environmental damages of this dimension. Therefore, derogations would have to be
adopted from certain provisions of Council Regulation (EC) No 2792/1999, laying down the
detailed  rules  and  arrangements  regarding  Community  structural  assistance  in  the  fisheries
sector.

Firstly, the compensation paid to fishermen for the temporary  cessation of their  activities in
the event of unforeseeable circumstances is limited in Article 16(1)a to two months annually

2

and,  according  to  Article  16(3),  cannot  exceed  4  %  of  the  overall  FIFG  allocation  of  the
Member State. These restrictions should be lifted in order to cope with the present situation.

Secondly, at present the compensations for the temporary cessation of activities can only be
paid to fishermen and vessel owners. In order for the representatives of the shellfish industry
and  aquaculture  in  these  regions  to  receive  equal  treatment  with  them,  the  possibility  of
granting these compensations should be extended to these categories.

Thirdly, the criteria for eligibility of expenditure, defined in Regulation (EC) No 2792/1999,
are  not  designed  for  the  type  of  measures  necessary  to  cope  with  the  consequences  of
pollution. Therefore, the activities necessary to be carried out in order to reinstate the previous
economic  activities,  in  particular  to  clean,  repair  and  reconstruct  shellfish  and  aquaculture
sites, to replace damages fishing gear and to replace shellfish stocks, should be made eligible
by derogations, so as to avoid any doubts about their treatment in this context.

Specific measures

The  specific  measures,  to  be  instituted  by  this  Regulation,  are  intended  to  supplement  the
actions  taken  in  the  context  of  the  interventions  of  the  Structural  Funds  in  Spain  for
compensating  the  sector  affected  by  the  oil  spills  from  the  Prestige  shipwreck.  These
measures are proposed to consist of the following actions:

(1) 

(2) 

(3) 

Compensation to those engaged in the Spanish shellfish industry and aquaculture for
the temporary cessation of their activities;

Encouragement of the replacement of damaged fishing gear;

Encouragement  of  the  cleaning,  the  repairing  and  the  reconstruction  of  shellfish  and
aquaculture sites; and

(4) 

Compensation for the replacement of shellfish stocks.

The  implementation  of  these  specific  measures  has  to  be  coherent  with  that  of  the  current
structural  programmes  of  Spain.  For  this  reason,  it  is  proposed  to  make  reference  to  the
application of the provisions contained in the general Regulations (EC) No 1260/1999 and No
2792/1999.

Legal Bases

The proposed legal bases are Articles 36 and 37 of the Treaty.

3

2002/0305 (CNS)

Proposal for a

COUNCIL REGULATION

instituting specific measures to compensate the Spanish fisheries, shellfish industry and
aquaculture, affected by the oil spills from the Prestige

THE COUNCIL OF THE EUROPEAN UNION,

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

Having regard to the proposal from the Commission1,

Having regard to the opinion of the European Parliament2,

Having regard to the opinion of the Economic and Social Committee3,

Whereas:

(1)

(2)

(3)

In November 2002, the tanker Prestige, carrying 77.000 tonnes of heavy fuel oil, was
shipwrecked off the coast of Galicia, causing oil spills to start arriving to the Spanish
coast as from 16 November 2002.

Owing to the environmental effects of the aforementioned oil pollution, in addition to
fisheries, all shell-fishing and certain aquaculture activities have been forbidden along
large  parts  of  the  Spanish  Atlantic  coastline.  Moreover,  the  oil  spills  have  also
damaged certain aquaculture sites located in the affected coastal regions of Spain.

Council Regulation (EC) No 2792/1999 lays down the detailed rules and arrangements
regarding Community structural assistance in the fisheries sector. In particular, Article
13(1)  and  the  more  specific  rules  enclosed  in  Annex III  of  the  said  Regulation,
determine the eligible costs within the fields of  aquaculture as  well  as  the  protection
and development of aquatic resources, to be co-financed from the Financial Instrument
for  Fisheries  Guidance  (FIFG).  In  addition,  Article 16  of  that  Regulation  lays  down
the terms on which the Member States may receive  a financial contribution from the
FIFG  towards  compensation  they  grant  to  fishermen  and  vessel  owners  for  the
temporary cessation of activities in the event of unforeseeable circumstances.

(4)

However, the criteria for the eligibility of expenses within the fields in question, to be
co-financed from the FIFG, have not been designed for the type of measures necessary
to cope with the consequences of oil pollution.

1

2

3

OJ C , , p. .
OJ C , , p. .
OJ C , , p. .

4

                                                
(5)

(6)

(7)

(8)

(9)

(10)

(11)

Besides,  the  granting  of  compensation  for  the  temporary  cessation  of  activities  is
currently  allowed  to  fishermen  and  vessels  owners,  but  not  to  other  persons  or
enterprises engaged in shellfish industry or aquaculture. Also the aggregated amounts
of financial contributions from the FIFG to these purposes have been restricted by the
said Article 16.

In these circumstances, it is necessary to facilitate the compensation to be granted for
temporary cessation of fishing, shellfish and aquaculture activities affected by the oil
pollution described above.  In  addition, it  is  appropriate  to  facilitate  the  cleaning,  the
repairing and the reconstruction of shellfish and aquaculture sites and the replacement
of  shellfish  stocks  in  order  to  restore  their  production  capacity,  as  well  as  the
replacement of fishing gear, damaged by the oil spills in question.

Consequently, there is a need  for derogations from the aforementioned provisions of
Regulation (EC) No 2792/1999.

On the understanding that the other parts will have to be carried out with the assistance
of  FIFG  appropriations,  the  complementary  appropriations  necessary  for  these
purposes should be made available from the assistance defined within the framework
of  Council  Regulation  (EC)  No  2561/2001,  aiming  to  promote  the  conversion  of
fishing  vessels  and  of  fishermen  that  were,  up  to  1999,  dependent  on  the  fishing
agreement with Morocco, and especially Article 5(1) thereof..

These  complementary  appropriations  available  should  be  devoted  to  the  specific
measures  taken,  on  one  hand  compensating  the  persons  and  enterprises  engaged  in
Spanish  fisheries  industry,  shellfish  and  aquaculture  for  the  temporary  cessation  of
their  activities,  and  on  the  other  hand  providing  for  assistance  for  reinstating  the
previous activities affected by the oil pollution.

The specific measures must be consistent with the general principles of the structural
policy in the fisheries sector.

The measures necessary for the implementation of this (instrument in question) should
be adopted in accordance with Council Decision 1999/468/EC of 28 June 1999 laying
down  the  procedures  for  the  exercise  of  implementing  powers  conferred  on  the
Commission 

HAS ADOPTED THIS REGULATION:

Article 1

Scope

This Regulation lays down exceptional supporting measures for the persons and enterprises,
engaged  in  the  Spanish  fisheries,  shellfish  industry  and  aquaculture  in  the  Spanish  coastal
areas affected by the oil pollution from the Prestige shipwreck, as well as the conditions for
and the limits of such support.

5

Article 2

Specific measures

1.

The  following  specific  measures  may  be  taken  by  Spain  for  the  persons  and
enterprises referred to in Article 1:

(a)

compensation to persons and owners of enterprises for the temporary cessation
of their activities.

(b) measures to encourage the replacement of fishing gear.

(c) measures  to  encourage  the  cleaning,  the  repairing  and  the  reconstruction  of

shellfish and aquaculture sites.

(d) measures to compensate for the replacement of shellfish stocks.

2.

The  expenses  incurred  within  the  framework  of  the  specific  measures  shall  be
eligible under the condition that the temporary cessation of the activities referred to
in  point (a)  as  well  as  the  damages  caused  to  the  gear  or  the  sites  referred  to  in
points (b), (c) and (d) have been due to the oil spills from the Prestige shipwreck.

3

The rates of assistance for the specific measures are specified in Annex.

Article 3

Derogations from Regulation (EC) No 2792/1999

1.

2.

3.

4.

5.

By  derogation  from  the  provisions  of  Regulation  (EC)  No 2792/1999,  the  specific
mesures referred to in Article 2 shall be granted in accordance with paragraphs 2 to 6
of this Article

The  compensations  for  the  temporary  cessation  of  activities,  referred  to  in
Article 16(1)(a) of Regulation (EC) No 2792/1999, may be granted also for persons
and owners of enterprises engaged in the Spanish shellfish industry and aquaculture.

The annual limit of two months prescribed in Article 16(1)(a) of Regulation (EC) No
2792/1999 shall not apply.

The  financial  contribution  from  the  FIFG  to  the  compensations  referred  to  in
paragraphs (1)  and  (2)  shall  not  be  taken  into  consideration  when  determining
compliance with the thresholds referred to in the first subparagraph of Article 16(3)
of Regulation (EC) No 2792/1999.

The restrictions set out in Annex III, point 1.4, last paragraph, of Regulation (EC) No
2792/1999  shall  not  be  applicable  with  regard  to  the  replacement  of  fishing  gear
damaged by the oil pollution from the Prestige shipwreck.

6

6.

The  following  costs  shall  be  eligible  under  Art  13(1)  of  Regulation  (EC)  No
2792/1999:

(a)

costs  incurred  by  the  cleaning,  the  repairing  and  the  reconstruction  activities
aimed  at  restoring  the  production  capacity  of  shellfish  and  aquaculture  sites
affected by the oil pollution in question

(b)

costs  of  the  restocking  necessary  to  reinstate  the  shellfish  stocks  aquaculture
sites affected by the oil pollution in question.

Article 4

Applicability of general provisions

The  provisions  of  Regulation  (EC)  No 1260/1999  and  No 2792/1999  shall  apply  for  the
implementation  of  the  specific  measures  defined  in  Article 2  under  the  provisions  and  the
derogation conditions laid down in this Regulation.

Article 5

Additional Community participation

1.

2.

In  addition  to  the assistance of  FIFG  appropriations, the complementary amount of
the  Community  participation  allocated  to  the  purposes  of  this  Regulation  shall  be
30 Mio €.

This additional amount shall be made available from the funds previously allocated
for the purposes of Regulation (EC) No 2561/2001.

Article 6

Amendment to Regulation (EC) No 2561/2001

In Article 5(1) of Regulation (EC) No 2561/2001 the following subparagraph is added:

“Within the allocation for Spain, an amount not exceeding EUR 30 million shall be
reserved for the measures defined in Council Regulation (EC) No XXXX.”

Article 7

Implementation reports

Spain  shall  present  to  the  Commission  a  consolidated  report  of  the  implementation  of  the
specific measures, referred to in Article 2, for every year of their implementation by 31 March
of the following year. The first of such reports will be due on 31 March 2004.

7

Article 8

Detailed rules

The  measures  necessary  for  the  implementation  of  this  regulation  shall  be  adopted  in
accordance with management procedure referred to in Article 9(2).

1.

2.

Article 9

The  Commission  shall  be  assisted  by  the  committee  on  structures  for  fisheries  and
aquaculture established by Article 51 of Regulation ( EC) No 1260/1999 [hereinafter
referred to as "the Committee"].

Where 
Decision 1999/468/EC shall apply.

is  made 

reference 

to 

this 

paragraph,  Articles 4 

and 7 

of

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

Article 10

Final provisions

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

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

Done at Brussels,

For the Council
The President

8

ANNEX

RATES OF ASSISTANCE

The  rates  of  assistance  for  the  specific  measures,  referred  to  in  Article 2,  are  defined
according to the groups listed in Annex IV, point 2 of Regulation ( EC) No 2792/1999 and to
the rates determined in Table 3 of the said Annex, as amended by Council Regulation  (EC)
No 1451/2001, as follows:

(1)

(2)

(3)

Temporary cessation of shellfish or aquaculture activities

Replacement of fishing gear

Cleaning, repairing and reconstruction of shellfish and aquaculture sites

-

-

carried out by public authorities

carried out by private enterprises

(4)

Replacement of shellfish stocks

Group 1

Group 2

Group 1

Group 3

Group 1

9

LEGISLATIVE FINANCIAL STATEMENT

Policy area(s):FISHERIES

Activit(y/ies):structural policy

TITLE  OF  ACTION:  SPECIFIC  MEASURES  TO  COMPENSATE  THE  SPANISH
FISHERIES, SHELLFISH INDUSTRY AND AQUACULTURE, AFFECTED BY
THE OIL SPILLS FROM THE PRESTIGE

1.

BUDGET LINE(S) + HEADING(S)

B2-200 “Specific measure to promote the conversion of vessels and of fishermen that
were, up to 1999, dependent on the fishing agreement with Morocco

2.

OVERALL FIGURES

2.1.

Total allocation for action (Part B): 30 million € for commitment

The 30 million € will be allocated to the sp ecific measures within the existing budget
line  B2-200  “aiming  to  promote  the  conversion  of  vessels  and  of  fishermen  that
were,  up  to  1999,  dependent  on  the  fishing  agreement  with  Morocco”.  The  total
amount  for  this  measure  is  197  million  €,  of  which  almost  161  million  have  been
committed in 2002 for Spain. 30 million € of the already committed amount will be
decommitted and then recommitted into a sub-line in B2-200 for the purpose of the
said specific measures.

In addition to the specific measures, around 80 million € of Community aid can be
covered by reprogramming the Spanish share of the Financial Instrument of Fisheries
Guidance (FIFG).

2.2. Period of application: 2002 Budget (commitment in one year only)

2.3.

Overall multiannual estimate of expenditure:

(a)

Schedule  of  commitment  appropriations/payment  appropriations 
intervention) (see point 6.1.1)

(financial

€ million ( to three decimal places)

Year n
= 2002

[n+1]=

2003

[n+2]=
2004

[n+4]

[n
+3
]

Commitments

30.000

Payments

15.000

15.000

[n+5
and
subs.
Years
]

Total

30.000

30.000

10

(b)

Technical and administrative assistance and support expenditure(see point 6.1.2)

Commitments

Payments

Subtotal a+b

Commitments

30.000

Payments

15.000

15.000

30.000

30.000

(c)

Overall  financial  impact  of  human  resources  and  other  administrative  expenditure
(see points 7.2 and 7.3)

Commitments/
payments

TOTAL a+b+c

Commitments

30.000

Payments

15.000

15.000

30.000

30.000

2.4.

Compatibility with financial programming and financial perspective

X

Proposal is compatible with existing financial programming.

2.5.

Financial impact on revenue:4

X

Proposal  has  no  financial  implications  (involves  technical  aspects  regarding
implementation of a measure)

3.

BUDGET CHARACTERISTICS

Type of expenditure

New

EFTA
contribution

Contributions
form applicant
countries

Heading in
financial
perspective

Non-comp

Diff/

YES/

NO

NO

No 2

4.

LEGAL BASIS

Proposal  for  a  Council  Regulation  instituting  specific  measures  to  compensate  the
Spanish fisheries, shellfish industry  and  aquaculture,  affected by  the oil  spills  from
the Prestige

4

For further information, see separate explanatory note.

11

                                                
5.

5.1.

DESCRIPTION AND GROUNDS

Need for Community intervention 5

5.1.1. Objectives pursued

In November 2002, the tanker Prestige, carrying 77.000 tonnes of heavy fuel oil, was
shipwrecked off the coast of Galicia, causing oil spills to start arriving to the Spanish
coast  as  from  16  November  2002.  These  oil  spills  are  likely  to  continue  for  a
unforeseeable time, as the Prestige sank with oil in its tanks and the wreck appears
still to be leaking oil.

However, the environmental consequences already to be noted are very substantial:
owing to the oil pollution, fisheries have been closed for  a coastline exceeding 900
km and the shellfish industry banned for some 800 km. These closures are presently
affecting  almost  7.000  vessels  with  over  16.000  fishermen,  as  well  as  more  than
5.000 people engaged in the shellfish industry. Besides, also some aquaculture sites
located in this coastline have been damaged. Other regions are beginning to receive
oil spills, too, in particular in Northern Spain.

Because of these suspensions of economic activities in the regions concerned, a great
number of individuals and enterprises engaged in the fisheries and aquaculture sector
have suffered considerable economic damage. In these circumstances, given also the
fact that the regions in question have a high economic dependence on this sector, it is
necessary  to  foresee  appropriate  reparation  of  the  damages  which  are  not
compensated by insurance.

5.2.

Action envisaged and budget intervention arrangements

For  these  purposes,  the  Community  should  make  an  appropriate  contribution,
alongside  Spain  as  the  Member  State  currently  concerned,  and  in  line  with  the
budgetary  limits. The most recent  information  from  the  Spanish  authorities  assume
that 132  M€  would  be  required  to  cope  w ith  the  impact  of  the  oil  pollution  on  the
fisheries  and  aquaculture  sector.  Most  of  the  expenditure  foreseen  (around  80  M€)
can be covered by reprogramming the Spanish share of the Financial  Instrument of
Fisheries Guidance (FIFG).

In addition, it is proposed  to  modify Council Regulation (EC) No 2561/2001 of  17
December  2001,  aiming  to  promote  the  conversion  of  fishing  vessels  and  of
fishermen that were, up to 1999, dependent on the fishing agreement with Morocco,
in order to allow to make  a part  of the  budgetary  resources for the reconversion of
these Spanish vessels available instead for the reparation of the damages in question.
In  view  of  the  exceptional  circumstances,  the  Spanish  authorities  have  asked  to  be
able  to  reallocate  a  part  of  this  previously  agreed  amount,  around  30  M€,  to  be
utilised  for  these  compensations,  without  prejudice  to  the  original  objectives  of
Regulation (EC) No 2561/2001.

5

For further information, see separate explanatory note.

12

                                                
5.3.

Methods of implementation

The provisions of Regulation (EC) No 1260/1999 and No 2792/1999 shall apply for
the implementation of the specific measures defined in Article 3 under the provisions
and the derogation conditions laid down in this Regulation.

6.

FINANCIAL IMPACT

6.1.

Total financial impact on Part B - (over the entire programming period)

(The method of calculating the total amounts set out in the table below must be explained by
the breakdown in Table 6.2. )

6.1.1.

Financial intervention

The breakdown below is purely indicative

Breakdown

Action 1

Temporary 
shellfish 
activities

Action 2

cessation 

of
aquaculture

or 

Year n
=

2002

10.000

Replacement of fishing gear

5.000

Action 3

repairing 

Cleaning, 
and
reconstruction  of  shellfish
and aquaculture sites

10.000

Action 4

Replacement  of 
stocks

shellfish

5.000

TOTAL 30.000

Commitments (in € million to three decimal places)

[n+1]

[n+2]

[n+3]

[n+4]

Total

[n+5
and
subs.
Years]

10.000

5.000

10.000

5.000

30.000

6.1.2.

Technical  and  administrative  assistance,  support  expenditure  and  IT  expenditure
(commitment appropriations)

6.2.

Calculation  of  costs  by  measure  envisaged  in  Part  B  (over  the  entire
programming period)

The  extraordinary  character  of  these  specific  measures  do  not,  at  this  stage,  permit
any detailed calculations of costs.

13

Breakdown

Commitments (in € million to three decimal places)

Type
of outputs
(projects, files )

Number of
outputs

Average unit
cost

(total for years
1…n)

Total cost

(total for years
1…n)

1

2

3

4=(2X3)

Action 1

- Measure 1

- Measure 2

Action 2

- Measure 1

- Measure 2

- Measure 3

etc.

TOTAL COST

30.000

If necessary explain the method of calculation

The  extraordinary  character  of  these  specific  measures  do  not,  at  this  stage,  permit
any detailed calculations of costs.

7.

IMPACT ON STAFF AND ADMINISTRATIVE EXPENDITURE

None

8.

FOLLOW-UP AND EVALUATION

8.1.

Follow-up arrangements

Spain shall present to the Commission a consolidated report of the implementation of
the specific measures, referred to in Article 3, for every year of their implementation
by 31 March of the following year. The first of such reports will be due on 31 March
2004

8.2.

Arrangements and schedule for the planned evaluation

Owing  to  the  specific  character  of  the  measure  and  to  its  limited  duration,  no
intermediate  evaluation  is  envisaged.  An  a  posteriori  evaluation  will  be  based  on
final implementation report.

9.

ANTI-FRAUD MEASURES

The  anti-fraud  measures  are  those  envisaged  in  the  general  Regulation  of  the
Structural  Funds,  period  2000-2006  (Regulation  (EC)  No  1260/1999  and  derived
legislation).

14