Proposal for Council Regulation introducing a scheme to compensate for the additional costs incurred in the marketing of certain fishery products from the Azores, Madeira, the Canary Islands and the French departments of Guiana and Réunion as a result of those regions' remoteness
Date: 2003-08-25
Institutions: European Commission
Subjects: Azores, Canary Islands, Guyana, Madeira, Réunion, fishery product, peripheral region, sales aid

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 25.8.2003
COM(2003) 516 final

2003/0202 (CNS)

Proposal for

COUNCIL REGULATION

introducing a scheme to compensate for the additional costs incurred in the marketing
of certain fishery products from the Azores, Madeira, the Canary Islands and the
French departments of Guiana and Réunion as a result of those regions' remoteness

(presented by the Commission)

EXPLANATORY MEMORANDUM

The outermost regions of the Community (the Portuguese autonomous regions of the Azores
and  Madeira,  the  Spanish  autonomous  community  of  the  Canary  Islands  and  the  French
overseas departments of Guadeloupe, Guiana, Martinique and Réunion) are lagging behind in
socio-economic terms, which is why the Community provides assistance for promoting their
economic and social development as well as their smooth integration in the dynamics of the
internal market.

In this  context, the  Council, by decisions  89/686/EEC1, 91/314/EEC2 and 91/315/EEC3, has
instituted  programmes  of  specific  options  for  addressing  the  remoteness  and  insularity  of
these  regions,  creating  a  suitable  framework  for  the  adoption  of  measures  in  the  various
sectors  of  activity  which  require  particular  attention  as  regards  the  strengthening  of  the
Community  support  necessary  for  alleviating  the  permanent  constraints  which  characterise
these regions.

These programmes are designed to take account, in implementing Community policies, of the
special  characteristics  and  handicaps  of  these  regions  in  connection  with  their  remoteness,
insularity, small size and difficult topography and climate. Their economic dependence on a
small number of products, their limited markets, their dual nature as both Community regions
and as territories situated in an environment of developing countries thus affect the economic
and social life of these regions.

Symbolising  Community  solidarity  with  the  outermost  regions,  and  essential  to  their
integration into the internal market, these programmes were conceived as frames of reference
for the implementation of Community policies in these regions.

Article 299(2) of the EC Treaty recognises the need to adopt special measures to assist them,
particularly in the fisheries sector, which is mentioned explicitly4

1

2

3

4

OJ L 399, 30.12.1989, p. 39.
OJ L 171, 29.6.1991, p. 5.
OJ L171, 29.6.1991, p. 10.
The full text reads as follows:
"The provisions of this Treaty shall apply to the French overseas departments, the Azores, Madeira and
the Canary Islands.
However,  taking  account  of  the  structural  social  and  economic  situation  of  the  French  overseas
departments, the  Azores, Madeira and the Canary Islands,  which is compounded by their remoteness,
insularity,  small  size,  difficult  topography  and  climate,  economic  dependence  on  a  few  products,  the
permanence  and  combination  of  which  severely  restrain  their  development,  the  Council,  acting  by  a
qualified  majority on  a  proposal  from  the  Commission  and  after  consulting  the  European  Parliament,
shall adopt specific measures aimed, in particular, at laying down the conditions of application of the
present Treaty to those regions, including common policies.
The  Council  shall,  when  adopting  the  relevant  measures  referred  to  in  the  second  subparagraph,  take
into account areas such as customs and trade policies, fiscal policy, free zones, agriculture and fisheries
policies, conditions for supply of raw materials and essential consumer goods, State aids and conditions
of access to structural funds and to horizontal Community programmes.
The  Council  shall  adopt  the  measures  referred  to  in  the  second  subparagraph  taking  into  account  the
special characteristics and constraints  of  the  outermost  regions  without  undermining  the  integrity  and
the coherence of the Community legal order, including the internal market and common policies."

2

                                                
Several factors, in particular the extent of the exclusive economic zones and the employment
created by fisheries-related activities, justify a Community approach reflecting the importance
of the fishery industry and, at the same time, the constraints stemming from the remoteness of
the regions concerned.

There  are  several  significant  factors  contributing  to  the  socio-economic  situation  in  these
regions:

– 

– 

– 

– 

a per capita GDP below the Community average;

high  unemployment  rates  in  some  regions  and  situations  of  serious  under-
employment;

a  primary  sector  still  largely  dependent  on  traditional  industries  and  employing  a
large part of the population. The fishing industry is dominated by family firms.

additional costs in relation to supplies and transport: the absence of nearby regional
markets, the limitations of local markets and transport difficulties mean that there are
permanent constraints on these economies as regards access to the outlets where their
products are marketed.

Precisely  in  the  light  of  this  situation  the  Community  decided  to  assist  producers  in  the
regions  concerned  with  marketing  certain  fishery  products.  Thus  it  was  that  a  scheme  was
introduced  in  19925  which  has  been  highly  successful.  The  scheme  was  renewed  in  1994,
1995, 1998 and 20026, thus enabling support for the disposal of the species most concerned.

Article 6 of Regulation (EC) No 1587/98 lays down the Commission is to present appropriate
proposals as the need arises. It should be pointed out that the conditions previously noted with
regard to the marketing of the products covered by this Regulation still prevail.

As  far  as  the  Azores  and  Madeira  are  concerned  the  local  canneries  represent  a  volume  of
production equivalent to nearly half  of  total  exports  and  employ  a  significant  percentage  of
the working population. Production goes mainly to the Portuguese mainland and to the Italian
market.  Nonetheless,  the  specific  conditions  prevailing  in  these  regions,  arising  from  their
small  size  and  geographical  situation,  generate  additional  production  and  marketing  costs,
which  weakens  their  competitive  position  compared  with  that  of  similar  activities  on  the
European mainland. Consequently, remuneration levels in the sector  are substantially below
the Community averages. The factors determining this situation are the operating conditions
of  the  industry:  additional  transport  and  financial  costs  arising  from  the  immobilisation  of
inputs (in particular salt, oil and cans); extra energy costs; insurance costs in connection with
transport.  The  same  applies  to  the  Canary  Islands  as  regards  the  tuna,  sardine,  mackerel,
cephalopods  and  aquaculture  products,  the  additional  costs  of  which  are  also  linked  to  raw
materials, energy and expenditure on transport. The situation in this region has been  further
aggravated  recently  by  the  non-renewal  of  the  fisheries  agreement  between  the  Community
and  Morocco.  The  situation  is  similar  in  the  French  departments  of  Guiana  and  Réunion
where, in addition to the factors mentioned above, there are particular circumstances making
operations  more  difficult  (absence  of  maritime  credit  for  financial  costs;  need  to  build  up

5

6

OJ L 248, 28.8.1992, pp. 73 and 75.
OJ L 162, 30.6.1994, p. 8; OJ L 236, 5.10.1995, p. 2; OJ L 208, 24.7.1998, p. 1; OJ L 89, 5.4.2002, p. 1.

3

                                                
substantial stocks of spare parts for vessels, price differential - due to the lack of local supply
- compared with the purchase price of vessels from continental shipyards; competition from
exports  from  certain  third  countries  in  South  and  Central  America  which  benefit  from
advantageous conditions under Community law).

The situation thus described cannot be resolved in the short term. It is therefore necessary to
follow  up  on  the  measures  already  taken  by  adopting  a  legal  instrument  whereby  a  stable
reference framework can be put in place for the economic operators concerned.

The purpose  of this proposal is to enable the  scheme already in place  to continue,  given  its
considerable  success.  The  existing  arrangements  have  enabled  the  producers  concerned  to
overcome the constraints of the additional costs in connection with transport to the continental
market.

On  this  aspect  the  proposal  merely  sets  out  to  offset  the  additional  costs  arising  from  the
disposal  of  the  products  concerned.  The  aim  is  to  bring  conditions  into  line  with  those
prevailing on the mainland so that the sector can integrate into the single market.

The  measures  proposed  are  designed  to  support  the  market  in  order  to  compensate  for  a
permanent geographical handicap and involve no structural aspect or impact. For this reason,
these measures are to be financed by the EAGGF Guarantee Section and cannot be charged to
the  FIFG  (Financial  Instrument  for  Fisheries  Guidance)  since  the  latter  is  by  definition  for
financing structural measures.

These  measures,  which  cover  a  particularly  important  sector  in  these  regions  from  both  the
economic  and  social  point  of  view,  with  virtually  no  alternatives  available,  will  help  to
improve the sector's competitiveness by compensating for the handicap of the isolation of the
local  fishery  products  industry  within  the  framework  of  Community  policy  to  assist  the
outermost regions.

4

2003/0202 (CNS)

Proposal for

COUNCIL REGULATION

introducing a scheme to compensate for the additional costs incurred in the marketing
of certain fishery products from the Azores, Madeira, the Canary Islands and the
French departments of Guiana and Réunion as a result of those regions' remoteness

THE COUNCIL OF THE EUROPEAN UNION,

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

Having regard to the proposal from the Commission7,

Having regard to the opinion of the European Parliament8,

Having regard to the opinion of the European Economic and Social Committee9,

Whereas:

(1)

(2)

(3)

7

8

9

10

11

12

The  fisheries  sector  in  the  outermost  regions  of  the  Community  faces  difficulties,
which are aggravated in particular by the  cost of transporting fishery  products to  the
markets as a result of their remoteness and isolation.

As  part  of  the  Community's  policy  to  assist  its  outermost  regions,  by  Decisions
89/687/EEC10, 91/314/EEC11 and 91/315/EEC12 the Council has set up programmes of
options specific  to  the  remote  and insular nature of the  French overseas departments
(Poseidom),  the  Canary  Islands  (Poseican)  and  Madeira  and  the  Azores  (Poseima)
respectively,  which  outline  the  measures  to  be  applied  taking  account  of  the  special
characteristics of and constraints on those regions.

Article 299(2) of the Treaty recognises the particular handicaps affecting the economic
and  social  situation  of  the  outermost  regions,  made  worse  by  their  remoteness  and
insularity. The same also applies to the fishing industry.

OJ C […], […], p. […].
OJ C […], […], p. […].
OJ C […], […], p. […].
OJ L 399, 30.12.1989, p. 39.
OJ L 171, 29.6.1991, p. 1.
OJ L 171, 29.6.1991, p. 10.

5

                                                
(4)

The  regions  concerned  are  facing  specific  development  problems,  and  in  particular
additional  costs  incurred  in  the  marketing  of  certain  products  as  a  result  of  their
remoteness.

(5) With a view to maintaining the competitiveness of certain fishery products compared
with  that  of  similar  products  from  other  Community  regions,  the  Community
introduced measures in 1992 and 1993 to compensate for such additional costs in the
fisheries sector. Those measures were then followed in 1994 and in the period 1995-97
by the adoption of Council Regulations (EC) Nos 1503/9413 and 2337/9514 and in the
period  1998-2002  by  the  adoption  of  Council  Regulations  (EC)  Nos  1587/9815  and
579/200216. From 2003 provision needs to be made for continuation of the scheme for
offsetting  the  additional  costs  for  certain  fishery  products  [(tuna  and  pelagic  and
demersal  species  in  the  case  of  the  Azores;  tuna,  black  scabbard,  mackerel  and
aquaculture  products  in  the  case  of  Madeira;  tuna,  sardine,  mackerel,  aquaculture
products, cephalopods and demersal species in the case of the Canary Islands; shrimp,
white  fish  and  aquaculture  products  in  the  case  of  Guiana;  tuna,  swordfish,
dolphinfish,  marlins  and  sharks  in  the  case  of  Réunion)]  as  regards  processing  and
marketing  and,  accordingly  measures  should  be  adopted  so  that  these  measures  may
continue.

(6)

(7)

(8)

The non-industrial and inshore fishing industry is of social and economic importance
in the outermost regions of the European Union.

For  the  sake  of  sound  management  of  stocks  fishing  effort  must  be  rationalised,  in
particular  in  the  light  of  the  research  of  a  high  technical  standard  conducted  in  this
area by various scientific institutions in the outermost regions.

The  Community  rules  on  the  conservation  and  management  of  stocks  must  be
observed in  those  regions, and in particular, in  the  case  of  the  French  department  of
Guiana, the rule prohibiting fishing for shrimp at a depth of less than 30 metres, and
provision should be made for the adjustment, where necessary, of the amounts set for
the  various  species  according  to  their  characteristics  and  production  and  marketing
conditions,

HAS ADOPTED THIS REGULATION:

Article 1
Purpose

This  Regulation  introduces  a  scheme  to  compensate  for  the  additional  costs  incurred  in  the
marketing of certain fishery products listed in Annexes I to V from the Azores, Madeira, the
Canary  Islands  and  the  French  departments  of  Guiana  and  Réunion  (hereafter  "the
compensation") as a result of those regions' remoteness.

13

14

15

16

OJ L 162, 30.6.1994, p. 8.
OJ L 236, 5.10.1995, p. 2.
OJ L 208, 24.7.1998, p. 1.
OJ L 89, 5.4.2002, p. 1.

6

                                                
Article 2
Recipients

The recipients of the compensation shall be the producers, the owners or operators of vessels
registered  in  the  ports  of  the  regions  referred  to  in  Article  1  and  operating  therein  or
associations  of  such  operators,  and  the  operators  in  the  processing  and  marketing  sector  or
associations  of  such  operators,  who  incur  the  additional  costs  in  marketing  the  products
concerned as a result of the remoteness of those regions.

Article 3
Azores

In the case of the Azores, the compensation shall be payable for the fishery products listed in
Annex  I.  The  amounts  of  the  compensation  and  the  quantities  for  the  region  shall  be  as
follows:

a)

b)

c)

EUR  177  per  tonne  of  tuna  for  up  to  10  000  tonnes  a  year  delivered  to  the  local
canning industry;

EUR 455 per tonne of species for marketing fresh for up to 2 000 tonnes a year;

EUR 148 per tonne of small pelagics and demersal species delivered to local industry
or  local  producer  associations  or  organisations  for  freezing  or  processing  for  up  to
1 554 tonnes a year.

Article 4
Madeira

In the  case of  Madeira, the  compensation shall  be  payable  for  the  fishery  products  listed  in
Annex  II.  The  amounts  of  the  compensation  and  the  quantities  for  the  region  shall  be  as
follows:

a)

b)

c)

EUR  230  per  tonne  of  tuna  for  up  to  4  000  tonnes  a  year  delivered  to  the  local
canning industry;

EUR 250 per tonne of black scabbard-fish for up to 1 600 tonnes a year;

EUR 1 080 per tonne of aquaculture products for up to 50 tonnes a year.

Article 5
Canary Islands

In the case of the Canary Islands, the compensation shall be payable for the fishery products
listed in Annex III. The amounts of the compensation and the quantities for the region shall be
as follows:

a)

b)

EUR 950 per tonne of tuna marketed by air for up to 1 619 tonnes a year;

EUR 500 per tonne of tuna marketed by sea in the raw state for up to 453 tonnes a
year;

7

c)

d)

e)

f)

g)

EUR 250 per tonne of skipjack marketed by sea for up to 453 tonnes a year;

EUR 220 per tonne of skipjack marketed by sea in the raw state for up to 712 tonnes
a year;

EUR 240 per tonne of sardines and mackerel for freezing for up to 347 tonnes a year;

EUR  268  per  tonne  of  cephalopods  and  demersal  species  for  up  to  8  292  tonnes  a
year;

EUR 1 300 per tonne of aquaculture products for up to 1 157 tonnes a year.

Article 6
Guiana

In  the  case  of  Guiana,  the  compensation  shall  be  payable  for  the  fishery  products  listed  in
Annex  IV.  The  amounts  of  the  compensation  and  the  quantities  for  the  region  shall  be  as
follows:

a)

b)

c)

d)

e)

f)

EUR 788 per tonne of shrimp for up to 4 200 tonnes a year;

EUR 933 per tonne of fresh fish for the fresh market for up to 325 tonnes a year;

EUR 282 per tonne of quick-frozen fresh fish for up to 450 tonnes a year;

EUR 282 per tonne of deep-frozen fresh fish for up to 800 tonnes a year;

EUR 463 per tonne of shrimp for up to 23 tonnes a year;

EUR 0.027 per ornamental fish for up to one million fish a year.

Article 7
Réunion

In the  case of Réunion, the  compensation  shall  be  payable for the  fishery  products  listed  in
Annex  V.  The  amounts  of  the  compensation  and  the  quantities  for  the  region  shall  be  as
follows:

a)

b)

c)

d)

e)

EUR 395 per tonne of swordfish for up to 1 424 tonnes a year;

EUR 395 per tonne of tuna for up to 657 tonnes a year;

EUR 395 per tonne of marlin for up to 44 tonnes a year;

EUR 395 per tonne of shark for up to 44 tonnes a year;

EUR 395 per tonne of dolphinfish for up to 17 tonnes a year.

8

Article 8
Adjustment of amounts and quantities

1.

2.

The Commission may, in accordance with the procedure laid down in Article 10(2),
adjust the amounts and the quantities set for the various species, in the light of their
production and marketing conditions, within the overall financial provisions set out
in Articles 3 to 7.

The  adjustment  referred  to  in  paragraph  1  shall  take  account  of  all  the  relevant
factors,  in  particular  the  biological  characteristics  of  the  species,  changes  in
additional costs and qualitative and quantitative aspects of production and marketing.

Article 9
Detailed rules of application

Detailed rules for the application of this Regulation shall be adopted in accordance with the
procedure laid down in Article 10(2).

Article 10
Committee

1.

2.

The  Commission  shall  be  assisted  by  the  Management  Committee  for  Fishery
Products (hereafter "the Committee").

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

The period referred to in Article 4(3) of Decision 1999/468/CE shall be one month.

3.

The Committee shall adopt its internal rules of procedure.

Article 11
Financing

The measures provided for in this Regulation shall constitute intervention intended to stabilise
the  agricultural  markets  within  the  meaning  of  Article  2  of  Council  Regulation  (EC)  No
1258/199917. They shall be financed by the Guarantee  Section of  the  European  Agricultural
Guidance and Guarantee Fund (EAGGF).

Article 12
Reporting

The  Commission  shall  report  to  the  European  Parliament,  the  Council  and  the  European
Economic  and  Social  Committee  every  four  years,  starting  on  1  January  2007,  on  the
implementation of  the measures provided  for in this  Regulation,  accompanied,  if  necessary,

17

OJ L 160, 26.6.1999, p. 103.

9

                                                
by  proposals  for  appropriate  adjustments  needed  to  achieve  the  objectives  laid  down  in
Article 1.

Article 13
Transitional measures

Requests  to  the  Commission  for  adjustments  under  Article  2(6)  of  Regulation  (EC)  No
1587/98  on  which  no  decision  has  been  taken  before  the  date  of  entry  into  force  of  this
Regulation shall be subject to the procedure laid down in Article 10(2).

Article 14
Entry into force and applicability

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

It shall apply from 1 January 2003.

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

Done at Brussels,

For the Council
The President

10

ANNEX I

Azores

a)

Tuna

Katsuwonus pelamis
Thunnus alalunga
Thunnus albacares
Thunnus obesus
Thunnus thynnus

b)

Species for marketing fresh

Phycis phycis
Beryx splendens
Pomatomus saltator
Sphyraena viridensis
Pagellus acame
Helicolenus dactylopterus dactylopterus
Cetrolabrus trutta
Labrus bergylta
Galeorhinus galeus
Pontinus kuhlii
Polyprion americanus
Coryphaena hippurus
Pseudocaranx dentex
Epigonus telescopus
Xiphias gladius
Serranus cabrilla
Serranus atricauda
Pagellus bogaraveo
Beryx decadactylus
Phycis blennoides
Seriola spp.
Loligo forbesi
Mora moro
Epinephelus guaza
Pagrus pagrus
Promethichthys prometeus
Lepidopus caudatus
Aphanopus carbo
Zeus faber, Zenopsis conchifer
Balistes carolinensis
Molva macrophthalma
Raja clavata
Scorpaena scrofa
Conger conger
Mullus surmelutus
Diplodus sargus

11

Sarda sarda
Sparisoma cretense

c)

Small pelagics and demersal species

Scomber japonicus
Trachurus picturatus
Sardina pilchardus
Chaceon affinis
Aphanopus carbo

12

ANNEX II

Madeira

a)

Tuna

Thunnus alalunga
Thunnus albacares
Thunnus Thynnus
Thunnus obesus
Katsuwonus pelamis

b)

Black scabbardfish

Aphanopus carbo

c)

Aquaculture products

Sparus aurata

13

ANNEX III

Canary Islands

a)

Tuna

Thunnus alalunga
Thunnus albacares
Thunnus thynnus thynnus
Thunnus obesus

b)

Skipjack

Katsuwonus pelamis

c)

Pilchard

Sardina pilchardus

d)

Mackerel

Scomber spp.

e)

Cephalopods and demersal species

Dentex dentex
Dentex gibbosus
Dentex macrophatalmus
Diplodus sargus
Diplodus cervinus
Lithognathus mormyrus
Pagellus acarne
Pagellus bogaraveo
Pagellus erythrinus
Sparus aurata
Sparus caeruleostictus
Sparus auriga
Sparus pagrus
Spondyliosoma cantharus
Merluccius merluccius
Phycis phycis
Lepidorhombus boscii
Lophius piscatorius
Dicologlossa cuneata
Solea vulgaris
Seppia Officinalis
Loligo vulgaris
Octopus vulgaris
Todarodes sagittatus

14

f)

Aquaculture products

Sparus aurata
Dicentrarchus labrax

15

ANNEX IV

Guiana

a)

Shrimp

Penaeus subtilis
Penaeus brasiliensis
Plesiopenaeus edwardsianus
Solenocra acuminata
Xipheopenaeus kroyeri

b)

Fresh-fished fish for marketing fresh, quick-frozen or deep-frozen

Cynoscion acoupa
Cynoscion virescens
Cynoscion steindachneri
Macrodon ancylodon
Lobotes surinamensis
Centropomus undecimalis
Arius parkeri
Arius proops
Sphyrnidae
Carcharhinidae
Trachynotus cayennensis
Oligoplites saliens
Scomberomorus maculatus

c)

Freshwater prawn

Macrobrachium rosenbergii

16

a)

Swordfish

Xiphias gladius

b)

Tuna

Thunnus albacares
Thunnus alalunga
Thunnus obesus

c)

Marlin

Makaira mazara
Makaira indica
Tetrapterus audax

d)

Shark

Carcharinus longimanus
Isurus oxyrinchus

e)

Dolphinfish

Coryphaena hippurus

ANNEX V

Réunion

17

LEGISLATIVE FINANCIAL STATEMENT

Policy area(s): Common fisheries policy

Activit(y/ies): 5. Fisheries markets

TITLE OF ACTION: FISHERIES PROGRAMME FOR THE OUTERMOST REGIONS

1.

BUDGET LINE(S) + HEADINGS

2.

2.1

B1-3240 Fisheries programme for the outermost regions

OVERALL FIGURES

Total allocation for action (Part B): EUR million for commitment

EUR 59 981 648 (EUR 14 995 412 per year for a 4-year period)

The  Commission  is  proposing  the  scheme  without  a  time  limit,  with  the  annual
funding indicated above. The Council generally fixes a period of application of four
years.

2.2

Period of application:

2003 and following years (see comments under point 2.1)

2.3

Overall multiannual estimate on expenditure :

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

(EUR million to three decimal places)

Year n

n + 1

n + 2

n + 3

n + 4

Commitments

Payments

14 985 412

14 995 412

14 995 412

14 995 412

14 995 412

14 995 412

14 995 412

14 995 412

[n+5
and
subs.
Year
s]

Total

59 981 648

59 981 648

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

Commitments

Payments

18

Subtotal a+b

Commitments

Payments

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

Payments

2.4

Compatibility with the financial programming and the financial perspective

(cid:1)

Proposal is compatible with existing financial programming

(cid:2) Proposal  will  entail  reprogramming  of  the  relevant  heading  in  the  financial
perspective.

(cid:2) Proposal  may  require  application  of  the  provisions  of  the  Interinstitutional
Agreement.

2.5

Financial impact on revenue

Proposal  has  no  financial  implications  (involves  technical  aspects  regarding

(cid:1)
implementation of a measure).

OR

(cid:2) Proposal has financial impact - the effect on revenue is as follows:

(NB All details and observations relating to the method of calculating the effect on
revenue should be shown in a separate annex.)

Budget line Returns

(EUR million to one decimal place)

Prior to
action
(Year n-
1)

Situation following implementation of action

Year
n3

n+1

n+2

n+3

n+4

n+5

a) Revenue in absolute terms1

b) Change in revenue2

 (cid:1)

(Please specify each budget line involved, adding the appropriate number of rows
to the table if there is an effect on more than one budget line)

19

3.

BUDGET CHARACTERISTICS

Type of expenditure

New

EFTA
contribution

Contributions
form applicant
countries

Heading in
financial
perspective

Comp/
Non-comp

Comp

Diff/
Non-diff

Non-diff

4.

LEGAL BASIS

YES/ NO

YES/NO

YES/NO

No 1

YES

NO

NO

Council  Regulation  (EC)  No XXX/2003  introducing  a  scheme  to  compensate  for  the
additional  costs  incurred  in  the  marketing  of  certain  fishery  products  from  the  Azores,
Madeira, the Canary Islands and the French departments of Guiana and Réunion as a result of
those regions’ remoteness.

(New Regulation to apply from 1 January 2003).

5.

5.1

DESCRIPTION AND GROUNDS

Need for Community intervention18

5.1.1. Objectives pursued

The  Community’s  outermost  regions  are  lagging  behind  in  socio-economic  terms,  which  is
why  the  Community  provides  assistance  for  promoting  their  development  as  well  as  their
smooth  integration  in  the  dynamics  of  the  internal  market.  It  is  in  this  context  that  the
Community  decided  in  recent  years  to  assist  producers  in  the  regions  concerned  with
marketing certain fishery products.

The objective of the programme is to compensate for the additional costs incurred as a result
of the specific production and marketing conditions, and of the permanent constraints due to
remoteness  and  island  location,  which  encumber  the  marketing  of  fishery  products  when
significant  amounts  go  outside  the  region.  In  the  fisheries  sector,  in  order  to  place  the
operators  concerned  on  an  equal  footing  with  operators  on  the  European  mainland,  the
additional costs due to this remoteness should be compensated.

The fisheries sector is of particular social and economic importance, and there is practically
no  possibility  of  conversion.  Some  communities  even  depend  completely  on  the  fisheries
sector for their very existence.

This measure will help improve the situation in the sector by compensating for the handicap
of  the  isolation  of  the  local  fishery  products  industry  within  the  framework  of  Community
policy to assist the outermost regions.

18

For further information, see separate explanatory note.

20

                                                
5.1.2. Measures taken in connection with ex-ante evaluation

The aim of this proposal is to roll over the scheme which has been in place for several years.
The  experience  gained  in  applying  this  scheme  shows  that  the  goals  underlying  its
introduction  have  been  achieved  in  full.  These  goals  are,  on  the  one  hand,  establishing  a
permanent legal framework allowing, for a significant period in terms of the management of
operations undertaken by the economic operators concerned, a stable reference framework in
which  to  conclude  these  operations,  while,  on  the  other  hand,  compensating  for  a  situation
which  cannot  be  resolved  because  it  is  due  to  the  inherent  characteristics  of  these  regions
(remoteness, isolation, the narrowness of local markets, dependency on a reduced number of
products  and,  in  most  cases,  location  as  an  island  group).  Moreover,  the  legal  basis  of  this
proposal (Article 299(2) of the EC Treaty) explicitly recognises these characteristics.

In  this  context,  the  application  of  the  partnership  principle,  which  is  fundamental  to
Community action to assist the outmost regions, has helped identify, over the years, areas of
assistance  which  justify  such  action.  These  are  linked  to  the  sectors  concerned  (production,
processing  and  marketing  outside  the  region),  the  beneficiaries  (operators  in  the  fishing,
processing  and  marketing  sectors),  the  amounts  of  additional  costs,  the  modulation
mechanism  (use,  within  the  limits  of  the  amount  granted  to  each  region,  of  various
possibilities as regards the species and amounts of aid in order to tackle situations relating to
fishery resources and market conditions). It should also be noted that, each time the scheme
has been extended, it has been able to adapt to the circumstances arising as the sector evolves.
Thus the legal framework has been progressively amended to incorporate the realities found
when preparing to extend the scheme. The circumstances influencing this flexibility relate to
the  development  of  the  sector  (new  species  fished,  change  in  commercial  presentation)  or
situations  which  have  to  be  taken  into  account  by  the  Community  legislator  with  a  view  to
adapting to the realities which harm the activity of the operators concerned (variations in the
behaviour of certain species, lack of access to certain third-country waters due to the failure to
extend  agreements  between  the  Community  and  those  countries,  impact  of  the  use  of
particular fishing gear by third countries on the migration of certain species, illegal fishing by
non-Community vessels, etc.).

The Commission arranged for a study from an external consultant on the operating conditions
of economic operators concerned by this scheme in the regions covered by the proposal (the
Azores, Madeira, Canary Islands, French Guiana and Réunion). This study (which was carried
out in 2001 and submitted in January 2002) showed that these operators incur additional costs
in marketing the products concerned, to date, by the scheme, or products in a sector which has
become  significant  in  marketing  terms  from  the  economic  and  social  perspective.  The
consultant made contact with the key operators in the sector, produced a detailed breakdown
of  the  additional  costs  and  compared  the  production  and  marketing  costs  incurred  by
operators in these regions and those on the European mainland. This model was submitted for
approval by operators in the sector, who endorsed it. The results of the study coincide with the
net values supplied by the national and regional administrations and transmitted officially to
the Commission in the context  of  preparatory  work  on  the  proposal.  It  should,  however,  be
noted that the Commission had to take account of the fixed budget ceiling in drawing up the
proposal.  It  therefore  kept  strictly  to  this  ceiling.  The  proposal  respects  the  net  values
indicated and the overall amount provided for by the budgetary authority.

5.1.3. Measures taken following ex-post evaluation

In accordance with the relevant provision of the proposal, the Commission is to report to the
European Parliament, the Council and the European Economic and Social Committee and the

21

Committee  of  the  Regions  every  four  years,  starting  on  1  January  2007,  on  the
implementation  of  the  scheme  accompanied,  if  necessary,  by  proposals  for  the  measures
needed  to  achieve  the  objective  of  compensating  the  additional  costs  found  in  marketing
particular species.

This report is to contain assessment criteria allowing evaluation of the implementation of the
scheme  and  whether  there  is  a  need  to  adapt  it  in  view  of  the  situation  found  during  the
application  of  measures  under  the  scheme.  In  particular,  any  applications  for  modulation
submitted to the Commission (see Article 8 of the proposal) will allow changes experienced
during the first period of application of the scheme to be taken into account, with a view to
making the necessary adjustments when proposing to extend it.

5.2

Actions envisaged and arrangements for budget intervention

The scheme to compensate for the additional costs incurred as a result of remoteness
consists of a fixed amount per tonne with annual quantity ceilings.

The  recipients under the  scheme  are  producers  and  operators  in  the  processing  and
marketing sector who incur additional costs in marketing.

The products, the additional costs per tonne and the annual quantities are as follows:

a)

b)

c)

d)

e)

f)

g)

h)

i)

j)

k)

l)

Tuna, EUR 177 , 10 000 tonnes (Azores),

Fresh species, EUR 455, 2 000 tonnes (Azores),

Small pelagics and demersal species, EUR 148, 1 554 tonnes (Azores),

Tuna, EUR 230 , 4 000 tonnes (Madeira),

Black scabbardfish, EUR 250, 1 600 tonnes (Madeira),

Aquaculture products, EUR 1 080, 50 tonnes (Madeira),

Tuna marketed by air, EUR 950, 1 619 tonnes (Canary Islands),

Tuna marketed by sea in the raw state, EUR 500, 453 tonnes (Canary Islands),

Skipjack marketed by sea, processed, EUR 250, 453 tonnes (Canary Islands),

Skipjack  marketed  by  sea  in  the  raw  state,  EUR 220,  712  tonnes  (Canary
Islands),

Sardines and mackerel, EUR 240, 347 tonnes (Canary Islands),

Cephalopods and demersal species, EUR 268, 8 292 tonnes (Canary Islands),

m) Aquaculture products, EUR 1 300, 1 157 tonnes (Canary Islands),

n)

o)

p)

Prawns, EUR 788, 4 200 tonnes (French Guiana),

Fresh fish for the fresh market, EUR 933 euros, 325 tonnes (French Guiana)

Quick-frozen fresh fish, EUR 282 euros, 450 tonnes (French Guiana),

22

q)

r)

s)

t)

u)

Deep-frozen fresh fish, EUR 282 euros, 800 tonnes (French Guiana),

Shrimp, EUR 463, 23 tonnes (French Guiana),

Ornamental fish, EUR 0.027 per fish, 1 million fish (French Guiana),

Swordfish, EUR 395, 1 424 tonnes (Réunion),

Tuna, EUR 395, 657 tonnes (Réunion),

u) Marlin, EUR 395, 44 tonnes (Réunion),

w)

Shark, EUR 395, 44 tonnes (Réunion),

x)

Dolphinfish, EUR 395, 17 tonnes (Réunion).

5.3

Methods of implementation

The  scheme  will  be  implemented  by  the  national  and  regional  authorities,  in
accordance  with  the  provisions  of  the  Council  Regulation  establishing  the  scheme
and  the  respective  detailed  rules  of  application  adopted  within  the  context  of  a
Commission Regulation.

The national authorities also adopt internal measures providing for the mechanisms
and  criteria  for  allocating  among  recipients  the  amounts  provided  for  under
Community rules.

Since  this  is  a  scheme  financed  by  the  EAGGF  Guarantee  Section,  the  Member
States make the payments and are subsequently reimbursed.

6.

6.1

FINANCIAL IMPACT

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

6.1.1. Financial intervention. Commitments (in EUR million to three decimal places

Year n

n + 1

 n + 2

n + 3

n+ 4

Total

n + 5 and
subs.
Years

14 995 412

14 995 412

14 995 412

14 995 412

59 981 648

Breakdown

Action 1
Action 2
etc.

TOTAL

23

6.1.2 Technical and administrative assistance, support expenditure and IT expenditure

(commitment appropriations)

Year n

n + 1

 n + 2

n + 3

n + 4

Total

n + 5 and
subs.
Years

and

Technical 

1) 
administrative assistance
a) 
offices

Technical 

assistance

b) Other technical
and administrative
assistance:
- intra-muros:
- extra muros:
of  which  for  construction
and 
of
maintenance 
computerised  management
systems

Subtotal 1

2) Support expenditure
a) Studies
b) Meetings of experts
c) Information and
publications

Subtotal 2

TOTAL

24

6.2.

Calculation  of  costs  by  measure  envisaged  in  Part  B  (over  the  entire
programming period)19

Breakdown

Commitments (in EUR million to three decimal places)

Type
of outputs

1

Number of
outputs
-
Ceiling in t/fish
2

Average unit
cost
-
EUR/t
3

Total cost

4=(2X3)

by 

sea,

and 

pelagics 

demersal

Tuna Azores
Fresh species, Azores
Small 
species, Azores
Tuna, Madeira
Black scabbardfish, Madeira
Aquaculture products, Madeira
Tuna  marketed  by  air,  Canary
Islands
Tuna  marketed  by  sea,  Canary
Islands
Skipjack  marketed 
processed, Canary Islands
Skipjack marketed by sea in the raw
state, Canary Islands
Sardines  and  mackerel,  Canary
Islands
Cephalopods  and  demersal  species,
Canary Islands
Aquaculture 
Islands
Prawns, French Guiana
Fresh  fish  for  the  fresh  market,
French Guiana
Quick-frozen  fresh  fish,  French
Guiana
Deep-frozen 
Guiana
Shrimp, French Guiana
Ornamental fish, French Guiana
Swordfish, Réunion
Tuna, Réunion
Marlin, Réunion
Shark, Réunion
Dolphinfish, Réunion

products,  Canary

fish,  French

fresh 

10 000
2 000
1 554
-
4 000
1 600
50
1 619
-
453
-
453
-
712
-
347
-
8 292
-
1 157
-
4 200
325
-
450
-
800
-
23
1 million fish
1 424
657
44
44
17
-

177
455
148
-
230
250
1 080
950
-
500
-
250
-
220
-
240
-
268
-
1 300
-
788
933
-
282
-
282
-
463
0,027
395
395
395
395
395

1 770 000
910 000
229 992
-
920 000
400 000
54 000
1 538 050
-
226 500
-
113 250
-
156 640
-
83 280
-
2 222 256
-
1 504 100
-
3 309 600
303 225
-
126 900
-
225 600
-
10 649
27 900
562 480
259 515
17 380
17 380
6 715

TOTAL COST

14 995 412

If necessary explain the method of calculation.

19

For further information, see separate explanatory note.

25

                                                
7.

IMPACT ON STAFF AND ADMINISTRATIVE EXPENDITURE

7.1.

Impact on human resources

Types of post

Staff to be assigned to management of the
action using existing and/or additional
resources

Number of
employees:
Permanent staff:

Number of
employees:
Temporary staff:

1

Total

1

Officials or
Temporary staff

A
B
C

Other human resources
Total

Description of tasks deriving from the
action

to 

regions 

Preparation 

Negotiation  of  the  proposal  for  a  Regulation  in
group),
the  Council 
(outermost 
submission  of  proposal 
the  European
Parliament  and  the  European  Economic  and
Social  Committee  and  preparation  of  documents
needed  for  negotiations  in  Coreper  and  in  the
Council. 
a  Commission
Regulation  laying  down  detailed  implementing
rules  and  its  submission  to  the  Management
Committee  for  Fishery  Products.  Preparation  of
actions
all  documents 
(legislative  text,  briefing  notes,  speaking  notes).
Monitoring  the  application  of  the  scheme  in
the  national  and  regional
partnership  with 
authorities, 
any
regards 
particularly 
modulation of the amounts and quantities.

relating 

these 

as 

of 

to 

7.2

Overall financial impact of human resources

Type of human resources

Amount (EUR)

Method of calculation *

Officials
Temporary staff

Other human resources

(specify budget line)

Total

The amounts are total expenditure for twelve months.

7.3

Other administrative expenditure deriving from the action

Amount (EUR)

Method of calculation

Budget line
(number and heading)

Overall allocation (Title A7)
A0701 – Missions
A07030 – Meetings
A07031 – Compulsory committees(1)
A07032 – Non-compulsory committees(1)
A07040 – Conferences
A0705 – Studies and consultations
Other expenditure (specify)

Information systems (A-5001/A-4300)

Other expenditure - Part A (specify)

The amounts are total expenditure for twelve months.

Total

26

(1) Specify the type of committee and the group to which it belongs.

I.
II.
III.

8.

8.1

Annual total (7.2 + 7.3)
Duration of action
Total cost of action (I x II)

EUR
Years
EUR

FOLLOW-UP AND EVALUATION

Follow-up arrangements

In  accordance  with  the  detailed  rules  for  the  application  of  the  scheme  to  be  laid
down  in  a  Commission  Regulation,  and  as  has  always  been  the  case  to  date,  the
Member  States  will  adopt  appropriate  provisions  to  ensure  compliance  with  the
requirements for implementing the scheme, particularly as regards the correctness of
operations.  They  undertake  to  prevent  and  pursue  any  irregularities  and  recover
amounts  wrongly  paid  out,  to  make  available  to  the  Commission  all  information
required for the purposes of applying the scheme and to facilitate all checks. A report
on  the  quantities  produced  and  marketed,  and  the  value  thereof,  for  which  aid  has
actually been received must be sent to the Commission.

8.2

Arrangements and schedule for evaluation

The Commission will report to the European Parliament, the Council, the European
Economic and Social Committee and the Committee of the Regions every four years
on the implementation of the scheme accompanied, if necessary, by proposals for the
measures needed to achieve the objective of compensating the additional costs found
in marketing certain fishery products.

9.

ANTI-FRAUD MEASURES

On-the-spot checks and EAGGF Guarantee Section control system.

27