Proposal for a Council Regulation amending Regulation (EC) No 2792/1999 laying down the detailed rules and arrangements regarding Community structural assistance in the fisheries sector
Date: 2003-11-05
Institutions: European Commission
Subjects: FIFG, aquaculture, common fisheries policy, fishing regulations, structural policy, sustainable development

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 05.11.2003
COM(2003)658 final

2003/0261 (CNS)

Proposal for a

COUNCIL REGULATION

amending Regulation (EC) No 2792/1999 laying down the detailed rules and
arrangements regarding Community structural assistance in the fisheries sector

(presented by the Commission)

EXPLANATORY MEMORANDUM

The Commission submitted to the Council and the European Parliament in September 2002 a
Communication  on  a  Strategy  for  the  sustainable  development  of  European  aquaculture
(COM(2002)511  final),  in  the  framework  of  the  reform  of  the  Common  Fisheries  Policy
(CFP).

The Strategy consists in a series of actions aiming to i) creating long term secure employment
in the aquaculture sector, in particular in fisheries dependent areas, ii) assuring the availability
to  consumers  of  aquaculture  products  that  are  healthy,  safe  and  of  good  quality,  as  well  as
promoting  high  animal  health  and  welfare  standards,  and  iii)  ensuring  an  environmentally
sound development of the aquaculture industry.

The  Financial  Instrument  for  Fisheries  Guidance  has  an  important  role  to  play  in  order  to
fulfil  the  objectives  of  the  Strategy.  The  Strategy  specifies  the  modifications  to  the  FIFG
regulation that need to be done.

The  Council  and  the  European  Parliament  gave  their  opinion  in  January  2003.  Both
Institutions  were  supportive  of  the  Strategy,  and  gave  some  additional  indications  on  the
needs  of  the  aquaculture  sector,  in  view  of  the  envisaged  modifications  of  the  FIFG
regulation.

The  attached  regulation  modifies  Council  regulation  (EC)  no  2792/99  in  order  to  allow  the
FIFG to better contribute to the implementation of the Strategy.

2

2003/0261 (CNS)

Proposal for a

COUNCIL REGULATION

amending Regulation (EC) No 2792/1999 laying down the detailed rules and
arrangements regarding Community structural assistance in the fisheries sector

THE COUNCIL OF THE EUROPEAN UNION,

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

Having regard to the proposal from the Commission1,

Having regard to the opinion of the European Parliament2,

Whereas:

(1)

(2)

(3)

(4)

(5)

1

2

3

4

Council  Regulation  (EC)  No  2792/19993  lays  down  provisions  relating  to  the
protection  and  development  of  aquatic  resources  and  to  the  development  of  the
Community aquaculture sector.

The  Commission  issued  on  19  September  2002  a  communication  to  the  European
Parliament and the Council on a strategy for the sustainable development of European
aquaculture4.  The  implementation  of  the  strategy  involves  the  need  to  amend
Regulation (EC) No 2792/1999.

The  protection  and  development  of  aquatic  resources  do  not  concern  exclusively
measures  taken  at  sea,  but  also,  and  in  particular  for  anadromous  and  catadromous
species, works in inland waters. In this respect, the rehabilitation of spawning areas is
of particular importance.

Any increase in production in excess of the likely evolution in demand should not be
encouraged. Better marketing strategies have to be implemented, but reliable statistics
on  fish  consumption  are  often  lacking,  as  is  economic  analysis  on  markets  and
marketing of aquaculture products.

Harmful  algal  blooms  are  among  the  most  serious  threats  for  the  future  of  shellfish
farming  in  Europe.  Sometimes  a  bloom  can  last  for  exceptionally  long  periods  and
compensation for the shellfish farmers affected may be justified, except in the case of
recurring phenomena.

OJ C , , p. .
Opinion delivered on
OJ L 337, 30.12.1999, p. 10. Regulation as last amended by Regulation (EC) No 2369/2002 (OJ L 358,
31.12.2002, p. 49).
COM (2002) 511 final.

3

                                                
(6)

(7)

(8)

(9)

Enlarging the knowledge base of the industry encompasses all the aspects of farming
and is paramount for aquaculture. Due to the inadequacy of the funds allocated for this
purpose,  it  is  essential  to  further  encourage  applied  research  and  technological
development  in  aquaculture,  by  expanding  the  opportunities  for  its  public  financing
and promoting private initiative in this area.

Aquaculture  enterprises  should  be  encouraged  to  improve  their  environmental
performance and to develop voluntarily initiatives that go beyond the minimum legal
requirements in terms of environmental protection.

In  order  to  enable  public  aid  for  aquaculture  service  vessels  to  be  maintained,  it  is
necessary to establish a clear distinction between those vessels and fishing vessels as
defined  in  Council  Regulation  (EC)  No  2371/2002  of  20  December  2002  on  the
conservation  and  sustainable  exploitation  of  fisheries  resources  under  the  Common
Fisheries Policy5, since some fishing  vessels  may be  exclusively  used  in aquaculture
but could possibly revert to fishing activity.

The intervention by public authorities in favour of aquaculture from the late 1970's has
stimulated  production  growth,  but  nowadays  the  situation  has  changed  and
overproduction is a threat for some branches. Consequently, new priorities within the
aquaculture measures in the FIFG Programmes should be set and in certain cases the
rate of aid should be reduced.

(10)

Extensive fish farming may have an ecologically beneficial role, as a way to associate
an  economic  activity  with  the  conservation  or  development  of  wetlands.  In  such
circumstances an increase in public support is justified.

(11) Regulation (EC) No 2792/1999 should therefore be amended accordingly,

HAS ADOPTED THIS REGULATION:

Article 1

Regulation (EC) No 2792/1999 is amended as follows :

1.

In Article 13(1), point (a) is replaced by the following :

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

2.

In Article 15(3), point (n) is replaced by the following :

"(n)  improvement  of  knowledge  and  transparency  in  production  and  in  the  market,
including statistics and economic analysis."

3.

Article 16 is amended as follows :

(a)

The following paragraph 1 bis is inserted :

5

OJ L 358, 31.12.2002, p. 59.

4

                                                
"1bis.  The  Member  States  may  grant  financial  compensation  to  shellfish  farmers
where the contamination due to the growth of toxic algae makes it necessary, for the
protection  of  human  health,  to  suspend  harvesting  for  more  than  six  consecutive
months.  The  granting  of  compensation  may  cover  no  more  than  six  months  of
suspension  of  harvesting  over  the  entire  period  from  the  entry  in  force  of  this
Regulation to the end of 2006.";

(b)

In paragraph 3, the first subparagraph is replaced by the following :

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

(c)

Paragraph 4 is replaced by the following :

"4.  Recurrent  seasonal  suspension  of  fishing  and  aquaculture  activity  shall  not  be
eligible for compensation under paragraph 1, 1bis, 2 and 3."

4.

In Article 17(2), the following third subparagraph is added :

"Small-scale,  applied-research  initiatives,  not  exceeding  EUR  150  000  in  total  cost
and  three  years  in  duration,  carried  out  by  an  economic  operator,  a  scientific  or
technical body or other competent body, shall be eligible as pilot projects, provided
that they  contribute to the objectives of sustainable development of the aquaculture
industry in the Community."

5.

Annex III is amended as follows :

(a)

The first sentence of point 2.1. is replaced by the following :

"Expenditure eligible for assistance from the FIFG may concern only the installation
of  fixed  or  movable  facilities  to  protect  and  develop  aquatic  resources,  the
rehabilitation of spawning areas, and the scientific monitoring of projects."

(b)

Point 2.2. is replaced by the following :

"2.2. Aquaculture

(a)

For the purposes of this Regulation,

(i)

(ii)

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

"extensive  fish  farming"  means  finfish  culture  operations  that  are
characterised by a low degree of control by the  farmer  on environment,
nutrition, predators, disease  agents, and by low production efficiency as
well as high dependence on local climate and water quality;

5

(b)

(c)

(iii)

"intensive  fish  farming"  means  finfish  culture  operations  (in  hatchery,
nursery,  on-growing  stages)  in  a  largely  controlled  environment  and
involving a high input of energy to optimise growth and survival;

the promoters of intensive fish farming projects shall forward the information
provided  for  in  Annex  IV  to  Directive  85/337/EEC6  to  the  management
authority  together  with  their  application  for  public  aid.  The  management
authority  shall  decide  whether  the  project  must  be  submitted  for  assessment
under Articles 5-10 of that Directive. Where the public aid is granted the cost
of  collecting  information  on  environmental  impact  and  any  assessment  costs
shall be eligible for assistance from the FIFG;

the  initial  costs  incurred  by  aquaculture  enterprises  to  join  in  the  Community
eco-management and audit schemes set up by Regulation (EC) No 761/20017,
as well as investments in works concerning the installation or improvement of
water  circulation  in  aquaculture  enterprises  and  on  service  vessels  shall  be
eligible;

(d)

fishing  vessels  as  defined  in  Article  3,  point  (c)  of  Regulation  (EC)  No
2371/2002,  will  not  be  considered  as  service  vessels  even  when  they  are
exclusively used in aquaculture;

(e) within  the  measures  related  to  aquaculture  in  the  FIFG  Programmes,  priority

shall be given to :

(i)

(ii)

the  development  of  techniques  that  substantially  reduce  environmental
impacts,

the  improvement  of  traditional  aquaculture  activities  such  as  mollusc
farming,  that  are  important  in maintaining the  social  and  environmental
tissue of specific areas,

(iii)

the modernisation of existing enterprises,

(iv) measures  intended  to  benefit  aquaculture  falling  under  the  scope  of

Articles 14 and 15 of this Regulation,

(v)

farmed species diversification;

(f)

By  way  of  derogation  from  the  column  for  Group  3  in  Table  3  in  point  2  of
Annex IV, the following rates of contribution shall apply;

(i)

for investments concerning the use of techniques that substantially reduce
environmental  impact,  or  structural  costs  for  extensive  fish  farming
practices  that  are  beneficial  to  the  environment  in  inland  and  coastal
ponds/lagoons,  the  contribution  of  private  beneficiaries  (C)  shall  be  at
least 30% of eligible expenditure in Objective 1 regions and at least 50%
in other areas;

6

7

OJ  L  175,  5.7.1985,  p. 40.  Directive  as  last  amended  by  Directive  2003/35/EC  (OJ  L  156,  25.06.03,
p.17).
OJ L 114, 24.4.2001, p. 1.

6

                                                
(ii)

for investments concerning the construction of new intensive  fish farms
not included in the priorities listed in point (e), the contribution of private
beneficiaries  (C)  shall  be  at  least  60%  of  eligible  expenditure  in
Objective 1 regions and at least 80% in other areas."

This Regulation shall enter into force on the 20th day following that of its publication in the
Official Journal of the European Union.

Article 2

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

Done at Brussels,

For the Council
The President

7

FINANCIAL STATEMENT

ANNEX

1.

2.

3.

4.

5.

5.0

5.1

DATE:
APPROPRIATIONS:

BUDGET HEADING:
B2 - 1010
B2 - 1300
B2 - 1610
TITLE:
Draft Council Regulation amending Regulation (EC) No 2792/1999 laying down the detailed rules and
arrangements regarding Community structural assistance in the fisheries sector.
LEGAL BASIS:
Art 36 and 37
AIMS:
To extend the field of application of the FIFG to some additional measures within the existing FIFG
budget.
FINANCIAL IMPLICATIONS
NONE

12 MONTH
PERIOD

CURRENT
FINANCIAL
YEAR
[n]
(EUR million)

FOLLOWING
FINANCIAL
YEAR
[n+1]
(EUR million)

(EUR million)

CHARGED TO THE EC BUDGET

NATIONAL AUTHORITIES
OTHER

EXPENDITURE
-
(REFUNDS/INTERVENTIONS)
-
-
REVENUE
-
(LEVIES/CUSTOMS DUTIES)
NATIONAL
-

OWN RESOURCES OF THE EC

5.0.1 ESTIMATED EXPENDITURE
5.1.1 ESTIMATED REVENUE
5.2 METHOD OF CALCULATION:

[n+2]

[n+3]

[n+4]

[n+5]

6.0

6.1

CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE
RELEVANT CHAPTER OF THE CURRENT BUDGET?
CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF
THE CURRENT BUDGET?

6.2 WILL A SUPPLEMENTARY BUDGET BE NECESSARY?
6.3 WILL APPROPRIATIONS NEED TO BE ENTERED IN FUTURE BUDGETS?
OBSERVATIONS:

YES NO

YES NO
YES NO
YES NO

8