Proposal for a Council Regulation amending Regulation (EC) No 2792/1999 as regards a specific action for transfers of vessels to countries hit by the Tsunami in 2004
Date: 2005-02-10
Institutions: European Commission
Subjects: FIFG, South-East Asia, aid policy, aid to disaster victims, derogation from EU law, fishing fleet, fishing industry, fishing vessel

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 10.2.2005 
COM(2005) 36 final 

2005/0005 (CNS) 

Proposal for a 

COUNCIL REGULATION 

amending Regulation (EC) No 2792/1999 as regards a specific action for transfers of 
vessels to countries hit by the Tsunami in 2004 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

In  December  2004,  the  tidal  wave  that  occurred  in  the  Indian  Ocean  (hereafter  Tsunami) 
ravaged the coast and the industries located in a number of third countries and thousands of 
lives  were  lost.  The  environmental  and  economic  effects  of  this  Tsunami  were  devastating. 
Besides tourism, the fishing and the aquaculture sectors were the most affected. With regard 
to the fishing fleet, a large number of vessels were shipwrecked off the coast or destroyed in 
the  fishing  ports  of  these  countries.  Moreover,  the  Tsunami  damaged  their  port  facilities, 
shipyards, the processing industry and almost all their aquaculture sites. 

In line with a relevant resolution of the European Parliament on 11/01/2005, the Commission 
agreed to a package of measures aimed at providing aid for rehabilitation and restructuring to 
rebuild  the  fishing  industry  in  the  most  affected  countries  by  the  Tsunami.  The  present 
proposal is part of this package. 

On  24/1/2005  the  Agriculture  and  the  Fisheries  Council  welcomed  and  encouraged  this 
initiative. 

An  existing  provision  of  the  Regulation  governing  the  financial  instrument  for  fisheries 
(2792/1999)  makes  it  possible  to  allocate  public  funds  with  FIFG  co-financing  for  the 
implementation of permanent cessation of fishing activities of Community fishing vessels by 
scrapping vessels. 

Given  the  number  of  vessels  destroyed  in  the  third  countries  affected  by  the  Tsunami,  it  is 
proposed  to  allow  the  transfer  of  those  Community  vessels  that  correspond  to  the  needs  of 
these third countries. 

With  this  aim,  a  specific  action  within  the  framework  of  the  FIFG  is  set  up  by  means  of 
amending Regulation N° 2792/1999. 

This draft Council Regulation foresees a specific action for the transfer of Community small 
fishing  vessels  subject  to  permanent  cessation  of  fishing  activities  to  fishing  communities 
located  in  those  third  countries  affected  by  the  Tsunami.  It  also  establishes  the  legislative 
framework required for Member States to allow Community vessels receiving FIFG funds for 
permanent cessation to be transferred to third countries affected by the Tsunami, rather than 
being scrapped or reassigned for non-profitable purposes other than fishing. 

To  ensure  consistency  with  the  general  objectives  of  the  common  fisheries  policy  and 
promote sustainability of the fishing activities in the long term, for the implementation of this 
proposal, the Commission will set up an appropriate monitoring system with the participation 
of the Member States concerned. Representatives of the FAO and of specialised NGOs may 
also be invited to participate. 

The following conditions will apply: 

(a) 

The vessels concerned must be registered in the Community Register of fishing 
vessels, have an overall length of less than 12 metres and be between five and 
twenty years old. 

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(b) 

The  permanent  cessation  of  vessels  fishing  activities  may  be  achieved  by  the 
permanent transfer of the vessel to the third countries affected by the Tsunami 
only until 30 June 2006. 

Furthermore,  the  following  three  derogations  to  Council  Regulation  (EC)  2792/1999  will 
apply for the implementation of this draft Regulation: 

(a) 

(b) 

(c) 

The minimum age of vessels eligible for transfer will be reduced to five years 
and this action may only be applied to vessels up to 20 years old. 

The premiums shall not be reduced by a part of the amount previously received 
in the case of renewal, equipment and modernisation aid foreseen. 

An additional premium may be granted to cover on the one hand the expenses 
incurred by public or private organisations for the transport of the vessels to the 
third  countries  and  on  the  other  hand  to  compensate  vessels  owners  to  make 
fully seaworthy and equipped the eligible vessels. 

It  should  be  stressed  that  the  proposal  does  not  invoke  any  extra  financial  or  budgetary 
implication on the Community budget since this action will be financed entirely from funds 
available to Member States for FIFG operational programming period 2000-2006. 

Legal bases 

The proposed legal base is Article 37 of the Treaty. 

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2005/0005 (CNS) 

Proposal for a 

COUNCIL REGULATION 

amending Regulation (EC) No 2792/1999 as regards a specific action for transfers of 
vessels to countries hit by the Tsunami in 2004 

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 Commission1, 

Having regard to the opinion of the European Parliament2, 

Whereas: 

(1) 

On 26 December 2004, a strong tsunami in the Indian Ocean struck a number of third 
countries,  ravaging  their  coasts  and  their  industries  and  causing  heavy  loss  of  life. 
Many fishing vessels were wrecked at sea or destroyed in port. 

(2)  Within  the  framework  of  the  common  fisheries  policy,  fishing  vessels  can  be 
withdrawn from the Community fishing fleet with public aid only if they are scrapped 
or reassigned for non-profitable purposes other than fishing.  

(3) 

(4) 

(5) 

(6) 

It  is  appropriate  to  extend  the  possibility  of  withdrawal  of  vessels  from  the 
Community  fleet  with  such  aid  to  vessels  which  are  transferred  to  the  countries 
affected by the tsunami for the benefit of the fishing communities concerned. 

This would help those communities to rebuild their fishing fleets swiftly, taking into 
account local needs as recorded by the UN Food and Agriculture Organisation (FAO). 

To meet the needs of those communities, only vessels which are fully seaworthy, well-
equipped  and  of  an  overall  length  of  less  than  12  metres  should  be  eligible  for  the 
measures provided for by this Regulation. 

It  is  appropriate  to  provide  for  the  grant  of  an  additional  premium  to  cover  the 
expenses incurred by public or private organisations for the transport of the vessels to 
the third countries and to compensate owners for equipping their vessels and making 
them fully seaworthy. 

1 
2 

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

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(7) 

(8) 

(9) 

The  Commission  should  be  given  the  power  to  suspend  transfers  if  the  prescribed 
conditions are not complied with. 

Reports  on  steps  taken  under  this  Regulation  should  be  submitted  by  the  Member 
States  and  by  the  Commission  in  order  to  guarantee  transparency  of  the  Financial 
Instrument for Fisheries Guidance (FIFG) provided for in Council Regulation (EC) No 
1260/1999 of 21 June 1999 laying down general provisions on the Structural Funds.3 

To ensure that the measures are implemented to the benefit of the fishing communities 
concerned  and  to  ensure  consistency  with  the  general  principles  of  the  common 
fisheries  policy  and  promote  long-term  sustainability  of  fishing  activities,  it  is 
appropriate to ask representatives of the FAO and of specialised NGOs to participate 
in the monitoring system to be set up by the Commission. 

(10)  Council  Regulation  (EC)  2792/1999  of  17  December  1999  should  therefore  be 

amended accordingly, 

HAS ADOPTED THIS REGULATION: 

Article 1 

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

(1) 

Article 7 shall be amended as follows: 

(a) 

Paragraph 2 shall be replaced by the following: 

‘2.  Measures to stop vessels’ fishing activities may be applied only to vessels 10 

years old or more.  

However, until 30 June 2006, vessels 5 years old or more may be eligible for 
permanent transfer in accordance with paragraph 3(d).’ 

(b) 

In paragraph 3, the following point (d) is added: 

‘(d)  until 30 June 2006, permanent transfer of the vessel to a third country hit 
by the tsunami in the Indian Ocean in December 2004, provided that the 
following criteria are met: 

(i) 

(ii) 

the  vessel  has  an  overall  length  of  less  than  12  metres  and  is  not 
more than 20 years old; 

the  Member  State  which  authorizes  the  transfer  must  ensure  that 
the  vessel  is  fully  seaworthy  and  equipped  for  fishing  activity,  is 
transferred to a region affected by the tsunami for the benefit of the 
fishing  communities  having  suffered  the  consequences  of  it  and 
that  adverse  effects  on  the  fisheries  resources  and  the  local 
economy are kept to a minimum.  

3 

OJ L 161, 26.6.1999, p. 1. Regulation as last amended by Regulation (EC) No 1105/2003 (OJ L 158, 
27.6.2003, p. 3). 

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(iii) 

the transfer must meet the needs identified by the assessment of the 
FAO and be in accordance with the third country’s requests.’ 

(c) 

The following paragraph 6 is added : 

‘6.  By way of derogation from paragraph 5(a), public aid for the permanent 
transfer of vessels in accordance with paragraph 3(d) shall be calculated 
as follows: 

(i) 

for  vessels  of  five  years  to  15  years,  the  premium  referred  to  in 
paragraph  5(a)(i)  shall  apply  and  for  vessels  of  16  years  to  20 
years, the premium referred to in paragraph 5(a)(ii) shall apply; 

(ii) 

the premium referred to in point (a) may be increased by up to 20% 
for the following purposes : 

– 

– 

to  cover  the  expenses  incurred  by  the  public  or  private 
organisations  designated  by  the  Member  States  to  be 
responsible for the transfer of the vessel to the third country, 

to compensate the vessel owner benefiting from the premium 
for equipping the vessel and making it fully seaworthy.  

Vessels for which an application for permanent cessation of activities has been submitted to 
the competent authorities of the Member State before […] [the date of entry into force of this 
Regulation] may also benefit from the premiums under this paragraph.’ 

(2) 

In Article 10(4), the following sentence shall be added: 

‘This paragraph shall not apply to vessels transferred pursuant to Article 7(3)(d).’ 

(3) 

The following Articles 18a and 18b shall be inserted: 

‘Article 18 a  

Suspension of the transfer of a vessel pursuant to Article 7(3)(d) 

The Commission may suspend the transfer of a vessel pursuant to Article 7(3)(d) if it 
considers that such transfer does not comply with the conditions laid down therein. 

Article 18 b  

Reporting on the transfer of vessels pursuant to Article 7(3)(d) 

(1) 

(2) 

By 30 September 2005 and every three months thereafter Member States shall 
present  to  the  Commission  all  available  information  on  transfers  of  vessels 
pursuant to Article 7(3)(d). 

On  the  basis  of  the  information  referred  to  in  paragraph  1  and  any  other 
information,  the  Commission  shall  report  every  six  months  to  the  European 

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Parliament  and  to  the  Council  on  on  transfers  of  vessels  pursuant to Article 
7(3)(d).  

(3) 

The Member States shall include in the annual report on the implementation 
of the FIFG intervention provided for in Article [37] of Regulation (EC) No 
1260/1999,  forwarded  to  the  Commission  in  2007,  a  section  on  transfers  of 
vessels pursuant to Article 7(3)(d) of this Regulation.’ 

This Regulation shall enter into force on the third 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 

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