Proposal for a Council Regulation on the conclusion of the Protocol modifying the Fourth Protocol laying down the conditions relating to fishing provided for in the Agreement on fisheries between the European Economic Community, on the one hand, and the Government of Denmark and the Local Government of Greenland, on the other
Date: 2003-10-16
Institutions: European Commission
Subjects: Denmark, European Community, Greenland, agreement (EU), fishing agreement, fishing regulations, protocol to an agreement

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 16.10.2003
COM(2003) 609 final

2003/0236 (CNS)

Proposal for a

COUNCIL REGULATION

on the conclusion of the Protocol modifying the Fourth Protocol laying down the
conditions relating to fishing provided for in the Agreement on fisheries between the
European Economic Community, on the one hand, and the Government of Denmark
and the Local Government of Greenland, on the other

(presented by the Commission)

EXPLANATORY MEMORANDUM

The  Community  has  a  longstanding  relation  with  Greenland  on  fisheries.  The  Framework
Agreement dates back to 1985 and the latest Protocol is the fourth.

The  Fourth  Protocol  to  the  Fisheries  Agreement  between  the  European  Community  and  the
Government  of  Denmark  and  the  Local  Government  of  Greenland  expires  on  31  December
2006. However, according to Article 14 of the Protocol a Midterm Review was foreseen to be
finalised by 30 June 2003.

Further to the final round of negotiations which took place on 16-18 June in Athens, a Protocol
modifying the Fourth Protocol was initialled.

The modified Protocol covers the period from 1 January 2004 to 31 December 2006. Though
the financial contribution remains EUR 42,820,000 per year, there is now a clear distinction
between the  budget  support  in  compensation for  the fisheries possibilities; EUR 31,760,679
and the budget support for the structural reform of the fisheries policy; EUR 11,059,321.

The compensation for the fisheries possibilities is based on several changes:

– 

– 

– 

– 

The deletion of “paper-fish” such as Cod, Blue Whiting, Capelin in Western waters
and Redfish in Western waters, as well as Catfish;

An  increase  in  quotas  of  800  tonnes  of  Atlantic  Halibut,  of  4,200  tonnes  of
Greenland  Halibut  in  Eastern  waters,  and  of  4,000  tonnes  of  Shrimps  in  Western
waters, in accordance with scientific advice;

The  introduction  of  a  quota  of  1000  tonnes  of  Snowcrab,  in  accordance  with
scientific advice;

The introduction of a quota of 2,000 tonnes for all by-catches.

The budget support for  the structural reform  of  the fisheries policy  and sector  is  a  new  and
innovative  element,  which  shows  the  desire  of  the  two  Parties  to  contribute  to  the
development  of  sustainable  and  responsible  fisheries.  Furthermore,  the  amount  comprises  a
specific  amount  of  EUR  500,000  for  increasing  the  scientific  capacity  and  budget  of  the
Greenland Institute for Natural Resources.

In  order  to  streamline  the  Agreement  to  other  Third  Country  Agreements  with  financial
compensation, make it consistent with the reform of the Fisheries Policy, and in particular the
external Fisheries policy, new elements have been introduced:

The main elements of change are:

– 

– 

The  introduction  of  a  yearly  revision  of  the  quotas  attributed  in  light  of  scientific
advice and the introduction of a restriction of the number of boats fishing at the same
time  in  the  same  zone,  as  well  as  a  possibility  of  revision  in  the  light  of  the
agreement  for  the  allocation  of  catch  possibilities  between  coastal  countries  for
Greenland Halibut. This in order to avoid over exploitation of the resources.

The introduction of payment of licences  for all fishery, with  rates based on 3  % of
landing prices. The rates may be adapted periodically by administrative arrangement
between the Parties, taking into account the market and fisheries situation. This is a

2

completely new and key element which should ensure the sound management of the
resources, the sound management of Community finances, as well as the coherence
with  the  CFP  and  the  commitment  to  progressively  increase  the  vessels  owners
participation. The financial contribution deriving from the direct payment of licences
by the vessels owners will be deducted from the Community compensation.

– 

The  introduction  of  the  possibility  for  experimental  fisheries  on  deep  sea  species,
cephalopods and clams. This is an important part of the agreement, as it could lead to
a  needed  diversification  of  the  fisheries  in  Greenland  and  increase  the  fishing
opportunities for Community vessels in the future.

Furthermore, in order to optimise the use of fishing possibilities, the present proposal foresees
a  mechanism  that  permits  the  Commission  to  temporarily  transfer  the  fishing  possibilities
during the year in progress that are not utilised by one Member State benefiting from a fishing
quota to the catch quota of another Member State, on demand.

This  transfer,  considering  it  is  of  a  temporary  nature,  does  not  pre-judge  the  allocation  and
future  fishing  possibilities  between  member  States  and  respects  the  principle  of  relative
stability  and  is  without  prejudice  to  the  competences  attributed  to  the  Member  States  by
Article 20 (5) of Regulation No 2371/2002.

In  view  of  the  above,  the  Protocol  modifying  the  Fourth  protocol  is  considered  to  be  good
value  for  money  and  will  encourage  the  responsible  and  sustainable  exploitation  of  the
resources to the mutual benefit of the Community and Greenland.

The Commission proposes, on this basis, that the Council adopt by Regulation the conclusion of
the Protocol modifying the Protocol laying down the  conditions relating to fishing provided
for in  the  Agreement  on  fisheries  between  the  European  Economic  Community,  on  the  one
hand, and the Government of Denmark and the Local Government of Greenland, on the other,
for the period 1 January 2004 to 31 December 2006

A draft Council decision on the provisional application of the Protocol modifying the Fourth
protocol concerning the provision for experimental fisheries, pending its definitive entry into
force is the subject of a separate procedure.

3

2003/0236 (CNS)

Proposal for a

COUNCIL REGULATION

on the conclusion of the Protocol modifying the Fourth Protocol laying down the
conditions relating to fishing provided for in the Agreement on fisheries between the
European Economic Community, on the one hand, and the Government of Denmark
and the Local Government of Greenland, on the other

THE COUNCIL OF THE EUROPEAN UNION,

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular
Article 37  in  conjunction  with  Article  300(2)  and  the  first  subparagraph  of  Article  300(3)
thereof,

Having regard to the proposal from the Commission1,

Having regard to the opinion of the European Parliament2,

Whereas:

(1)

(2)

(3)

(4)

(5)

1

2

3

4

5

In  accordance  with  Article  14  of  the  Agreement  on  fisheries  between  the  European
Economic  Community  on  the  one  hand,  and  the  Government  of  Denmark  and  the
Local Government of Greenland on the other3, the two parties held negotiations with a
view to determining the amendments to be made to the Fourth Protocol4 laying down
the conditions relating to fishing provided for in that Agreement.

As  a  result  of  those  negotiations,  a  Protocol  modifying  the  Fourth  Protocol  was
initialled on 18 June 2003.

The  amendments  to  the  Fourth  Protocol  are  following  the  guidelines  set  out  in  the
Communication  from  the  Commission  of  23  December  2002  on  an  integrated
framework for fisheries partnerships agreements with third countries5.

The  Protocol  modifies  the  fishing  opportunities  for  Community  fishermen  in  waters
under the sovereignty or jurisdiction of Greenland for the period from 1 January 2004
to 31 December 2006.

It  is  in  the  Community’s  interest  to  approve  the  Protocol  modifying  the  Fourth
Protocol.

OJ C…, …,p….
OJ C…, …,p….
OJ L 29, 1.2.1985, p. 9
OJ L 209, 2.8.2001, p. 2
COM (2002) 637final

4

                                                
(6)

In order to optimise the use of fishing opportunities, it is necessary to provide for the
possibility  to  reallocate  the  non-utilised  fishing  opportunities  of  one  Member  State,
during a fishing campaign, to another Member State on request. Such a transfer, which
is  to  be  of  a  temporary  nature,  should  not  prejudice  future  allocations  of  fishing
opportunities amongst the Member States and is without prejudice to the competences
attributed to the Member States by Article 20 (5) of Regulation No 2371/2002,

HAS ADOPTED THIS REGULATION:

Article 1

The  Protocol  modifying  the  Fourth  Protocol  laying  down  the  conditions  relating  to  fishing
provided for in the Agreement on fisheries between the European Economic Community, on
the  one  hand,  and  the  Government  of  Denmark  and  the  Home  Rule  Government  of
Greenland,  on  the  other,  (“the  modifying  Protocol”),  is  hereby  approved  on  behalf  of  the
Community.

The text of the modifying Protocol is attached to this Regulation.

Article 2

The Commission may  conclude  an administrative arrangement with the  competent  authority
of  Greenland  in  order  to  adapt  periodically  the  rates  of  licence  fees,  in  accordance  with
Article 11 (5) of the Fourth Protocol.

Article 3

1.

2.

When  there  is  an  under-utilisation  of  the  fishing  opportunities  realised  in  the
framework of the quota and licences allocated to a Member State in waters under the
sovereignty  or  jurisdiction  of  Greenland,  without  prejudice  to  the  competences
attributed to the Member States by  Article  20 (5) of  Regulation No 2371/2002, the
Commission  may  reallocate  for  the  fishing  campaign  in  question,  the  non-utilised
fishing  opportunities  to  vessels  of  another  Member  State,  who  makes  a  request  for
such reallocation.

The transfer of fishing opportunities of a Member State to another Member State, as
provided  for  in  paragraph  1,  shall  not  prejudice  future  allocations  of  fishing
opportunities amongst the Member States.

Article 4

Owners of Community vessels who receive  a  licence for a Community  vessel  authorised  to
fish  in  waters  under  the  sovereignty  or  jurisdiction  of  Greenland  shall  pay  a  licence  fee  in
accordance with Article 11(5) of the Fourth Protocol.

The rules for the implementation of this Article, including the licence application and issuing
formalities, shall be subject to the procedure provided for in Article 30 of Council Regulation
(EC) No 2371/20026.

6

OJ L 358, 31.12.2002, p. 59

5

                                                
Article 5

The President of the Council is hereby authorised to designate the persons empowered to sign the
modifying Protocol in order to bind the Community.

Article 6

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

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

Done at Brussels,

For the Council
The President

6

PROTOCOL MODIFYING THE FOURTH PROTOCOL

laying down the conditions relating to fishing provided for in the Agreement on fisheries
between the European Economic Community, on the one hand, and the Government of
Denmark and the Local Government of Greenland, on the other

Further to the Joint Committee meeting of 16-18 June 2003, the Fourth Protocol is modified
as follows, with effect from 1 January 2004:

I.

Article 1 is replaced by the following text:

“Article 1

1.

2.

7

8

9

10

11

12

This Protocol shall apply to fishing activities from 1 January 2001 to 31 December
2006.

The quotas referred to in Article 2 of the Agreement shall be fixed each year in the
light of available scientific information. They shall be calculated as the remainder of
Greenland’s total allowable catches after subtraction of the  quantities referred  to in
the first paragraph of Article 7 of the Agreement and indicated in Article 2, but shall
not exceed the following quantities:

Species

Cod

Redfish

Greenland halibut

Shrimp

Atlantic Halibut

Western  stock
(NAFO 0/1)

Eastern  stock
(ICES XIV/V)

pm7

0 8

1,50010

4,000

20012

25,5009

 9,00011

5,675

1,00012

In  the  event  of  stock  recovery,  the  Community  may  fish  up  to  31,000  tonnes,  with  a  corresponding
increase  in  the  part  of  the  financial  compensation  referred  to  in  Article  11(2).  May  be  fished  East  or
West.
The Community may ask for an increase in the quota, by the end of November for the following year,
up  to  a  maximum  of  5,500  tonnes,  with  a  corresponding  increase  in  the  part  of  the  financial
compensation referred to in Article 11(2).
May be fished East or West and of which a maximum of 20,000 tonnes may be fished by pelagic trawl.
Catches  from  the  bottom  trawl  fishery  and  the  pelagic  trawl  fishery  shall  be  reported  separately.  The
Community may ask for an increase in the quota, by the end of November for the following year, up to
a maximum of 47,320 tonnes, with a corresponding increase in the part of the financial compensation
referred to in Article 11(2).
500 tonnes may be fished either North or South in agreement with Greenland authorities.
This figure may be revised in the light of the agreement for the allocation of catch possibilities between
coastal countries. The fishery shall be managed through a limitation on the number of vessels fishing at
the same time.
If bycatches by Community vessels of Atlantic halibut in trawl cod and redfish fisheries would imply
overruns of Community quotas of Atlantic halibut, the Greenland authorities will provide solutions to
the effect that Community cod and redfish fisheries nevertheless can continue until the cod and redfish
quotas have been exhausted.

7

                                                
Capelin

Roundnose grenadier

snowcrab

Bycatches

1,350

1,000

2,00014

13

2,000

3.

4.

5.

The quota for shrimp in East Greenland  may be  fished in areas West of  Greenland
provided that arrangements for quota transfers between shipowners from Greenland
and  the  European  Community  have  been  established  on  a  company-to-company
basis.  The  Greenland  Home  Rule  Government  shall  undertake  to  facilitate  such
arrangements.  The  transfers  of  quotas  can  only  take  place  within  a  maximum  of
2,000  tonnes  annually  in  areas  of  West  Greenland.  The  fishery  carried  out  by  the
Community  vessels  shall  take  place  on  the  same  conditions  as  laid  down  in  the
license issued to the Greenlandic shipowner.

Authorisations for experimental fisheries will be made available for a trial period of
maximum six month each, in accordance with Article 9 and Annex V.

When the Parties conclude that the  experimental campaigns  have achieved  positive
results,  the  Greenland  Home  Rule  Government  will  allocate  50%  of  the  fishing
opportunities  on  the  new  species  to  the  Community  fleet,  until  the  end  of  this
Protocol.  This,  with  a  corresponding  increase  in  the  part  of  the  financial
compensation referred to in Article 11(2).”

II.

Article 2 is replaced by the following text:

“Article 2

The quantities referred to in the first paragraph of article 7 of the Agreement are hereby set at
the following levels each year:

Species (tonnes)

Western 
(NAFO 0/1)

stock

Eastern 
(ICES XIV/V)

stock

(tonnes)

Cod

Redfish

Greenland halibut

Shrimp

50,00015

2,500

4,700

25,000

5,000

4,000

1,500

“

13

14

15

7,7% of the capelin TAC for the season.
Refers  to  the  combined  by-catch  of  cod,  catfish,  skate,  ling  and  tusk.  The  by-catch  quantities  of  cod
shall not exceed 100 tonnes. May be fished East or West.
May be fished West or East

8

                                                
III.

IV.

Article 3 is deleted.

Article 9 is replaced by the following text:

“Article 9

The  Parties  shall  promote  the  conduct  of  experimental  fisheries  on,  inter  alia,  deep  sea
species,  cephalopods,  clams  and  capelin  (Western  stock)  in  Greenland  waters.  To  this  end,
they  shall  hold  consultations  whenever  one  of  the  Parties  so  requests  and  determine,  on  a
case-by-case  basis,  relevant  species,  conditions  and  other  parameters.  The  Parties  shall
implement the experimental fishery in accordance with Annex V.”

V.

Article 11 is replaced by the following text:

“Article 11

1.

2.

3.

4.

5.

6.

The  financial  compensation  referred  to  in  Article  6  of  the  Agreement  shall,  during
the  period  of  validity  of  this  Protocol,  be  fixed  at  42,820,000  Euro  (€)  payable
annually at the beginning of each fishing year.

The  part  of  the  financial  compensation  representing  31,760,679  Euro  (€)  is
considered to be the amount in return for fishing possibilities. That amount shall be
adjusted during the course of each fishing  year where any supplementary quota are
allocated to the Community in excess of the quota quantities referred to in the table
in Article 1. The adjustment shall be calculated on the basis of the market prices of
the different species for which the supplementary quota are allocated.

Greenland shall make available to the Community a quantity of 20,000 tonnes of cod
equivalents,  which  the  Community  may  use  for  the  purposes  of  acquiring
supplementary  catch  possibilities.  The  adjusted  compensation  referred  to  in
paragraph 2 may consist of up to 50% of these cod equivalents.

The  procedure  to  be  followed  as  regards  the  allocation  of  supplementary  catch
possibilities under Article 8 of the Agreement is set out in Annex III.

The  financial  contribution  deriving  from  the  direct  payment  of  licences  by  the
vessels owners will be deducted from the Community global compensation as set out
in  Article  11  (1).  The  licence  fees  per  species  and  per  tonnes  allocated  to  vessels
shall be set in accordance with Annex VI. The implementing technical modalities for
the attribution of fisheries licences shall be agreed by an administrative arrangement
between the Parties.

Greenland shall  implement  a  budgetary  support  to  the  fisheries  sector  for  the  three
remaining  years  of  the  Protocol  in  accordance  with  the  policy  commitments
undertaken  in  the  Greenland  Prime  Ministers  letter  to  President  Prodi  of  12  June
2003.  The  orientations  on  strategy  and  objectives  of  the  reform  of  the  Greenland
fisheries policy, as defined and programmed independently and autonomously by the
Greenland  Home  Rule  Government,  as  well  as  the  technical  details  concerning  the
definition,  the  implementation  and  the  monitoring  of  the  budget  support  to  the
fisheries  sector  in  Greenland  shall  be  determined  in  an  administrative  arrangement
between  Greenland  and  the  European  Community.  Greenland  shall  affect  500,000
Euro (€) to increase the budget of the Greenland Institute of Natural Resources.”

9

VI.

Article 14 is replaced by the following text:

“Article 14

No later than 30 June 2005 the Parties shall assess the implementation of this Protocol in view
to prepare the negotiations for the next Agreement. ”

VII. Annex I is deleted.

VIII. Annex V is added, as follows:

“Annex V

Details of implementation for experimental fisheries

The Home Rule Government of Greenland and the European Commission shall jointly decide
on the European Community operators, the most suitable time as well as the arrangements for
the implementation of experimental fisheries. In order to facilitate the exploratory work of the
vessels, the Home Rule Government of Greenland (through the Greenland Institute of Natural
resources) shall provide existing scientific and other basic information.

The Greenland fishing industry shall be closely associated (co-ordination and dialogue on the
arrangements for experimental fisheries).

Length of the campaigns: maximum six month and minimum three month, unless changed by
the parties in agreement.

Selection of candidates for the implementation of the experimental campaigns:

The  European  Commission  shall  communicate  to  the  Greenland  authorities  the  requests  for
licences for experimental fishery. A technical dossier specifying:

– 

– 

– 

the technical characteristics of the vessel;

the level of expertise on the fishery of the ship officers;

the proposal for the technical parameters of the campaign (length , gear, exploration
regions etc. )

The  Home  Rule  Government  of  Greenland  will  organise  a  technical  dialogue  between  the
administrations of the Greenland Government  and the European  Commission  with  the ship-
owners concerned, if it considers this necessary.

Before  the  beginning  of  the  campaign,  the  vessel  owners  shall  submit  to  the  Greenland
authorities and to the European Commission:

– 

– 

– 

a declaration of the catches already on board;

the technical characteristics of the fishing gear to be used for the campaign;

an assurance that they comply with the Greenland Regulations for fisheries;

10

During the campaign at sea, the owners of the vessels concerned shall:

– 

– 

– 

– 

– 

provide the Greenland Institute of Natural Resources, the Greenland authorities and
the  European  Commission  with  a  weekly  report  on  catches  per  day  and  by  haul,
including  the  description  of  the  campaign’s  technical  parameters  (position,  depth,
date and time, catches and other observations or comments);

communicate the vessel’s position, speed and heading by VMS;

ensure the presence on board of one Greenlandic scientific  observer or  an observer
chosen  by  the  Greenland  authorities.  The  role  of  the  observer  will  be  to  gather
scientific  information  from  the  catches,  as  well  as  to  sample  the  catches.  The
observer  shall  be  treated  as  a  ship’s  officer  and  the  vessel-owner  shall  cover  the
living  costs  of  the  observer  during  his  stay  on  the  vessel.  The  decision  on  the
observers time on board, the length of his stay, the boarding and landing harbour will
be  fixed  in  agreement  with  the  Greenland  authorities.  Unless  there  is  agreement
between  the  parties  to  the  contrary,  the  vessel  will  never  be  obliged  to  put  into
harbour more than once per two month;

submit  the  vessels  to  inspection  on  leaving  Greenland’s  waters  if  the  Greenland
authorities so request;

ensure that they comply with the Greenland Regulations for fisheries;

The  catches  including  the  by-catches  obtained  during  the  scientific  campaign  remain  the
property of the vessel-owner.

The  Greenland  authorities  will  designate  a  contact  person  responsible  for  addressing  any
unforeseen problems that might hinder the development of the experimental fisheries.”

IX.

Annex VI is added as follows:

“Annex VI

Licence fees

The following rates16 shall apply:

EUR. Per tonne

Species

Redfish

Greenland Halibut

Shrimp

Atlantic Halibut

Capelin

Roundnose Grenadier

Snowcrab

52

85

74

199

7

10

122

16

The rates may be adapted periodically by administrative arrangement between the Parties, taking into
account the market and fisheries situation.

11

                                                
LEGISLATIVE FINANCIAL STATEMENT

Policy area(s): Fisheries

Activity(ies): International fisheries

TITLE  OF  ACTION:  REVISION  OF  THE  FOURTH  PROTOCOL  LAYING  DOWN  THE  CONDITIONS
PROVIDED  FOR  IN  THE  AGREEMENT  ON  FISHERIES  BETWEEN  THE  EUROPEAN  ECONOMIC
COMMUNITY  ON  THE  ONE  HAND  AND  THE  GOVERNMENT  OF  DENMARK  AND  THE  LOCAL
GOVERNMENT OF GREENLAND , ON THE OTHER.

1.

BUDGET LINE(S) + HEADING(S)

B7-8000(110301) : International fishery agreements

2.

2.1.

2.2.

2.3.

OVERALL FIGURES

Total allocation for action (Part B): min. 119.685.065 € - max 128.519.000 €

Period of application: 1. 1. 2004 – 31. 12. 2006

Overall multiannual estimate on expenditure:

a)

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

€ million ( to 3rd decimal place)

2004

2005

2006

Min.

Max.

Min.

Max.

Min.

Max.

Min.

Total

Max.

Commitments

39.875.355

42.820.000

39.875.355

42.820.000

39.875.355

42.820.000

119.626.065

128.460.000

Payments

39.875.355

42.820.000

39.875.355

42.820.000

39.875.355

42.820.000

119.626.065

128.460.000

b)

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

2004

2005

2006

Total

Commitments

3.000

53.000

3.000

59.000

Payments

3.000

53.000

3.000

59.000

Subtotal
a+b

Commitme
nts

2004

2005

2006

Total

Min.

Max.

Min.

Max.

Min.

Max.

Min.

Max.

39.878.355

42.823.000

39.928.355

42.873.000

39.878.355

42.823.000

119.685.065

128.519.000

Payments

39.878.355

42.823.000

39.928.355

42.873.000

39.878.355

42.823.000

119.685.065

128.519.000

12

c)

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

2004

2005

2006

Total

Commitments

57.460

57.460

57.460

172.380

Payments

57.460

57.460

57.460

172.380

Total
a+b+c

Commit
ments

Payment
s

2004

2005

2006

Total

Min.

Max.

Min.

Max.

Min.

Max.

Min.

Max.

39.935.815

42.880.460

39.985.815

42.930.460

39.935.815

42.880.460

119.857.445

128.691.380

39.935.815

42.880.460

39.985.815

42.930.460

39.935.815

42.880.460

119.857.445

128.691.380

2.4.

Compatibility with the financial programming and the financial perspective

X

Proposal compatible with the existing financial programming

(cid:1) This  proposal  will  entail  reprogramming  of  the  relevant  heading  in  the
financial perspective

(cid:1) This  may  entail  application  of  the  provisions  of  the  Interinstitutional
Agreement.

2.5.

Financial impact on revenue:

No financial implications (involves technical aspects regarding implementation

X
of a measure)

OR

(cid:1) Financial impact – the effect on revenue is as follows:

Note: All details and observations pertaining to the method of calculating the effect
on revenue should be included in a separate annex.

Budget line Revenue

€ million  (to 1 decimal place)

Situation following action

Year n

n+1

n+2

n+3

n+4

n+5

Prior to
action
(Year n-
1)

a) Revenue in absolute terms

b) Change in Revenue

 (cid:1)

13

3.

BUDGET CHARACTERISTICS

Type of expenditure

New

EFTA
participation

Participation
applicant
countries

Heading
Financial
Perspective

CE

DA

NO

NO

NO

4

4.

LEGAL BASIS

Article 37 of the Treaty, in conjunction with Article 300(2) and (3) first subprargraph.

EC/Greenland Agreement (OJ L29, 1.2.1985, p.9)

5.

DESCRIPTION AND GROUNDS

5.1.

Need for Community intervention

5.1.1. Objectives pursued

In  accordance  with  Article  14  of  the  Fishery  agreement  between  the  EC  and  The
Government of Denmark and the Local Government of Greenland , and as specified
in the Article 14 of the Fourth Protocol (OJ L 209, 2.8.2001) , a midterm review had
to  be  completed  by  the  30  June  2003.  This  in  order  to  review  and  assess  the
adequacy of the Protocol and if necessary propose amendments.

The purpose of the revision of the Fourth Protocol is to increase the adequacy of the
Protocol,  to  eliminate  the  high  level  of  “paper-fish”,  to  ensure  a  better  balance
between  fishing  possibilities  and  the  financial  compensation,  as  well  as  to  increase
the transparency and  accountability as  requested by  the Council,  Court  of  Auditors
and the European Parliament.

5.1.2. Measures taken in connection with ex ante evaluation

Further  to  the  Communication  from  the  Commission  to  the  Council  and  the
European  Parliament  on  the  Midterm  review  of  the  Fourth  Fisheries  protocol
between the EC and Greenland COM(2002)697 of 4.12.2002 and as requested by the
Council  Conclusions  of  24  February  2003,  the  Commission  carried  out  a  financial
evaluation  of  the  Protocol.  This  evaluation  was  transmitted  to  the  Council  and
Parliament  in  April  2003,  and  was  the  basis  for  the  amendments  brought  to  the
Fourth Protocol.

The main amendments are the following:

(cid:1)  Deletion  of  paper-fish:  change  in  fishing  quotas-:  The  quotas  as  laid  down  in
Art.  1  (2)  in  the  Revised  Fourth  Protocol  have  been  reduced  compared  to  the
Fourth Protocol in order to fix fishing opportunities, which are really available, of
interest to the Community fleet and in line with scientific advice. This is the case
with  cod  (from  2,000  t  to  pm),  redfish  (from  31,000  t  to  25,500  t),  catfish

14

(deleted), blue whiting (deleted), and capelin (deletion of western quota of 25,000
t). At the same time, the Community has the option to fix higher quotas, in most
cases up to the levels of the Fourth Protocol, for cod and redfish, in the event of
stock  recovery  with  an  additional  financial  compensation,  as  set  out  in  Article
11(2).

(cid:1)  New  or  increased  fishing  opportunities:  The  new  fishing  opportunities  include
quotas on the Western shrimp stock (4,000 t). The increased fishing opportunities
include  the  Atlantic  halibut  (800  t),  the  Greenland  Halibut  (4  200  t)  and  the
introduction  of  a  quota  of  snowcrab  (1  000  t).  Furthermore,  a  quota  for  all  by-
catches (2,000) has also been introduced.

(cid:1)  Yearly  revision of  the fishing possibilities:  In  light  of  scientific  advice,  a  yearly

revision may be operated in the Article 1 (2) allocated fishing possibilities.

(cid:1)  Experimental  fisheries:  The  article  on  the  promotion  of  experimental  fisheries
(Art. 9), has been modified to introduce cephalopods and clams. An Annex V has
been introduced, detailing the modalities for experimental fisheries and Article 1
(5)  specifies,  that  in  the  case  of  success  of  the  experimental  campaigns,  the
Community will be granted 50% of the fishing possibilities of the new species.

(cid:1)  Introduction of licence fees: Payment of licences is introduced for all fishery, with
rates  based  on  3  %  of  landing  prices.  The  rates  may  be  adapted  periodically  by
administrative  arrangement  between  the  Parties,  taking  into  account  the  market
and  fisheries  situation.  This  is  a  completely  new  and  key  element  which  should
ensure  the  sound  management  of  the  resources,  the  sound  management  of
Community finances, as well as the coherence with the CFP and the commitment
to  progressively  increase  the  vessels  owners  participation.  The  financial
contribution deriving  from  the  direct  payment  of  licences  by  the  vessels  owners
will be deducted from the Community compensation.

(cid:1)  Introduction  of  transfer  of  fishing  possibilities :  in  order  to  optimise  the  use  of
fishing  possibilities,  the  present  proposal  foresees  a  mechanism  that  permits  the
Commission  to  temporarily  transfer  the  fishing  possibilities  during  the  year  in
progress that are not utilised by one Member State benefiting from a fishing quota
to the catch quota of another Member State, on demand. This transfer, considering
it  is  a  temporary  nature,  does  not  pre-judge  the  allocation  and  future  fishing
possibilities between member States and respects the principle of relative stability.

(cid:1)  Introduction of budget support: The budget support for the structural reform of the
fisheries  policy  and  sector  is  a  new  and  innovative  element,  which  shows  the
desire  of  the  two  Parties  to  contribute  to  the  development  of  sustainable  and
responsible  fisheries.  Furthermore,  the  amount  comprises  a  specific  amount  of
EUR 500,000  for increasing  the  scientific  capacity  and  budget  of  the  Greenland
Institute for Natural Resources.

(cid:1)  Review  clause:  The  review  clause  has  been  updated  in  order  to  assess  the
implementation of the revised Protocol in view to prepare the negotiations for the
next agreement. The review shall take place not later than 30 June 2005.

15

(cid:1)  In  addition  to  the  direct  sale  value  of  catches,  the  Agreement  continues  to  offer

the following advantages:

–  the multiplier effect on jobs for the ports, auctions, processing factories, shipyards

and service industries in the regions concerned;

–  these jobs are created in regions where there are few alternatives to fishing;

–  supply to the Community market in fishery products;

–  the importance of relations with Greenland, both in the fisheries sector and in the
political  sphere  and  the  pivotal  role  of  the  Fisheries  Agreement  with  Greenland
for  the  proper  functioning  of  the  Community's  fisheries  agreements  with  other
third countries. It must also be noted that the Parties agreed that Greenland shall
not  receive  any  financial  aid  by  virtue  of  its  OCT  status  during  the  period  of
application of the 4th Protocol unless agreed otherwise after the review required
under art. 14 of the Protocol.

5.1.3. Measures taken following ex post evaluation

A  thorough  evaluation  is  foreseen  in  order  to  assess  the  implementation  of  the
revised  Protocol  in  view  to  prepare  the  negotiations  for  the  next  agreement.  The
review shall take place not later than 30 June 2005.

5.2.

Actions envisaged and arrangements for budget intervention

In accordance with the Fishery Agreement, the Local Government of Greenland will
continue  to  be  paid  €42.82  million  per  annum,  as  set  out  in  the  Fourth  Protocol.
However, the Revised Protocol introduces two main modifications:

1.

The  compensation  for  the  fishing  possibilities  is  assessed  to  be  of  a  value  of
€31,760,679, in light of the modified fishing possibilities. The Fourth Protocol
had an estimated value of the fishing possibilities of €28 million. The value is
calculated on the basis of landing prices (average 2002). The remainder of the
annual compensation, €11,059,321 per annum,  will cover a budget support for
the structural reform of the fisheries policy in Greenland, as presented with the
Council  Decision  in  the  form  of  an  Exchange  of  Letters  for  the  provisional
application of the Protocol modifying the Fourth Protocol.

2. With the introduction of licence fees (Article 2 of the Regulation, Article 11(5)
and Annex VI of the Protocol), there will be a positive financial impact in form
of a reduction of the Community budget in the range of €0 to €2,944,645. The
table  below  shows  the  amount  of  licence  fees  possible  in  the  event  of  full
utilisation of the fishing possibilities of the Revised Protocol17:

17

This does not include the fishing possibilities for transfers to Norway, Iceland and Feroes

16

                                                
Species

Redfish

Greenland Halibut

Shrimps

Atlantic Halibut

Capelin

Roundnose Grenadier

Crab

Total

Tonnes for EU MS Licence  fee  pr.

Tonne

Total in €

21,425

8,600

6,025

800

49,285

2,750

1,000

52

85

74

1,114,100

731,000

445,850

199

159,200

7

10

344,995

27,500

122

122,000

2,944,645

The amount will depend on the rate of utilisation of the fishing possibilities, as well
as  the  final  level  of  the  fees18,  which  will  be  finally  determined  by  administrative
arrangement between the Commission and the Greenland Authorities. The financial
contribution deriving from the direct payment of licences by the vessels owners will
be deducted from the Community compensation.

5.3.

Methods of implementation

Implementation of the Protocol falls exclusively to the Commission, which for this
purpose will use officials in Brussels.

6.

FINANCIAL IMPACT

6.1.

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

6.1.1.

Financial intervention

2004

2005

2006

Total

Commitments in € million (to the 3rd decimal place)

Min.

Max.

Min.

Max.

Min.

Max.

Min.

Max.

31.760.679

31.760.679

31.760.679

31.760.679

31.760.679

31.760.679

95.282.037

95.282.037

-2.944.645

0

-2.944.645

0

-2.944.645

0

- 8.833.935

0

11.059.321

11.059.321

11.059.321

11.059.321

11.059.321

11.059.321

33.177.963

33.177.963

Breakdo
wn

Financial
Compens
ation

Licences
19

Budget
Support

Total

39.875.355

42.820.000

39.875.355

42.820.000

39.875.355

42.820.000

119.626.065

128.460.000

18

19

Which currently is set as 3% of landing prices of each species.
To be paid by EU vessels owners to the Greenland authorities

17

                                                
1) Technical and administrative assistance

a) Technical assistance offices

2004

2005

 2006

Total

b) 
administrative assistance:

Other 

technical 

and

- intra muros :

- extra muros :

of which for construction and maintenance of
computerised management systems

Subtotal 1

2) Support expenditure

a) Studies

50.000

50.000

b) Meetings of experts

3.000

3.000

3.000

9.000

c) Information and publications

Subtotal 2

3.000

53.000

3.000

59.000

TOTAL

3.000

53.000

3.000

59.000

6.2.

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

Breakdown

See point 6.1.1. Financial
intervention

TOTAL COST

Commitments in € million (to the 3rd decimal place)

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)

Min.: 119.626.065

Max.: 128.460.000

18

7.

IMPACT ON STAFF AND ADMINISTRATIVE EXPENDITURE

7.1.

Impact on human resources

Description of tasks deriving from the
action

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

Number of
permanent posts

Number of
temporary posts

1

1

2

1

1

Total

6

0.5

0.5

7

Types of post

Permanent
officials 
Temporary staff

or

A

B

C

Other human resources

Total

7.2

Overall financial impact of human resources

Type of human resources

Amount €

Method of calculation  *

Officials

Temporary staff

Other human resources

(100.000/12*6) 
(47.000/12*0.5)

+(60.000/12*0.5)+

54.460

(give budget line)

Total

54.460

The amounts are total expenditure for twelve months.

7.3.

Other administrative expenditure deriving from the action

Amount €

Method of calculation

3.000

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 (state which)

Information systems (A-5001/A-4300)

Other expenditure - Part A (state which)

Total

3.000

The amounts are total expenditure for twelve months.
(1) Specify the type of committee and the group to which it belongs.

19

I.

II.

III.

8.

Annual total (7.2 + 7.3)

Duration of action

Total cost of action (I x II)

€57.460

3 Years

€172.380

FOLLOW-UP AND EVALUATION

8.1.

Follow-up arrangements

With regards to the financial compensation for the fisheries component, a system of
monitoring of the catches and the rate of utilisation of the fishing possibilities will be
set up by Council Regulation on the transfer and licences.

With  regards  to  the  financial  compensation  for  the  budget  support  to  the  structural
reform of the Greenland fisheries policy, the Greenland authorities have committed
themselves to introduce a planning of reforms before the end of 2003. This will allow
the  contracting  Parties  to  monitor  on  a  yearly  basis  the  implementation  of  the  set
indicators.

Furthermore, a meeting of the Joint Committee at the request of either party allows
the  Community  and  the  Greenland  authorities  to  consult  on  matters  pertaining  to
implementation  and  operation  of 
its
interpretation or application is a matter for consultation.

the  agreement.  Any  disagreement  on 

8.2.

Arrangements and schedule for the planned evaluation

Article 14 of the revised Protocol states that no later than 30.6.2005 the Parties shall
assess the implementation of this Protocol in view to prepare the negotiations for the
next agreement. This entails that before the renewal of the Agreement on 1 January
2007  the  entire  period  covered  by  the  Fourth  Protocol  (including  the  revised
Protocol)  will  be  assessed  using  indicators  measuring  direct  results  (catches,  catch
values),  other  outcomes  (Protocol  cost/catch  value  ratio)  and  results  on  the
implementation  of  the  Budget  support  for  the  structural  reform  of  the  fisheries
policy. To ensure that fishing operations in the region are sustainable, an economic,
social  and  environmental  impact  assessment  will  be  made  before  any  renewal  of
Protocols in the future.

9.

ANTI-FRAUD MEASURES

Since  a  financial  contribution  is  paid  by  the  Community  for  services  rendered
(fishing opportunities  and  others)  and  neither  the  Agreement  nor  the  Protocol  have
any specifications in this domain, it may be used by the authorities of Greenland as
they see fit.

The  Protocol  foresees  the  implementation  of  a  joint  Committee  to  oversee  the
activities of temporary joint ventures and joint enterprises as described in art. 4.

20