CELEX: 51989PC0187
Language: en
Date: 1989-05-12
Title: PROPOSAL FOR A COUNCIL REGULATION ( EEC ) ON THE IMPROVEMENT OF THE CONDITIONS UNDER WHICH FISHERY AND AQUACULTURE PRODUCTS ARE PROCESSED AND MARKETED

COMMISSION OF THE EUROPEAN COMMUNITIES
                                      C0M(89) 187 final
                                     Brussels, 12 May 1989
                           Proposal for a
                     COUNCIL REGULATION (EEC)
   on the improvement of the conditions under which fishery and
         aquaculture products are processed and marketed
                   (presented by the Commission)
 ---pagebreak---              PROPOSAL FOR A QOCWCIL RBOTLATIQf O* T H E PBOGESfiTMR
               AM) MARgETINS OF FISHER? AND AqPACOT/TORE PRCDOHTS
                            EXPIANAIQRY MBCRANEPM
 1.  INTRLJLUJriCW
 The common fisheries policy defined in Article 30 of the Treaty of Rome
 encompasses an immense range of fishing activities beginning with the
 straightforward exploitation of fish stocks in a m^mpr such as to ensure a
 fair standard of living for the oammunity directly dependent on them, to
 stabilise markets and supplies and to ensure supplies at reasonable prices.
The resulting economic activity begins therefore at sea and on fish farms
 since that is where the raw material is produced. However, and this
 applies particularly in the case of fisheries, a long economio chain is
 formed (comprising landing, repairs, supplies, storage, eto.) that leads to
 the processing industry and the distribution network and has a considerable
irnpact on local economies. In order to obtain the optimum benefit from the
 cannon fisheries policy all these activities need to be properly
coordinated.
2.   TSS ocMManrr FROCTRSSUP m w s m c
The Community processing industry is still very diverse, with the
differences between the Member States being linked to their Individual
customs and uses. It continues to be a locally-based Industry, generally
limited to a single market, and is not designed for the Community market as
a whole. It is obvious, therefore, that in most oases the size and types
of undertakings will not, in the long term, help attain the objectives of
1992.
Numerous changes have taken place in the processing and marketing of
fishery and aquaculture products, notably since European consumers have set
about cutting their intake of meat and following a more varied diet
(consisting in particular of salads) in which fishery and aquaculture
products can play a significant role. In addition, the preparation of food
differs betweeen Northern and Southern Europe. An enlargement of the
market could give rise to an Increase in consumption.
                                                                           1
 ---pagebreak---                                     - 2 -
 There is a very distinct difference, as far as the market in frozen fish is
 concerned, between the northern and southern Community Member States. In
 the north most of the frozen products are prepared from freshly-landed
 fish. Processing is a more complicated operation. Since consumption of
 fresh fish is less widespread than in the southern Community countries, the
 consumer wants foodstuffs that are more elaborate and ready to use.
 In the southern Community Member States fish for the most part is eaten
 fresh, while frozen fish is used as a substitute. Processing amounts
 therefore to little more than gutting on board vessels. In many cases
processing on land consists only of packaging. Most products are sold to
 the consumer in their original packing.
To sum up, the European market in fishery and aquaculture products has
various shortcomings, as do the processing and marketing sectors; these
sectors will have to undergo change if they are to supply the single
European market and become competitive at international level. The
situation in this respect is not the same as In the agriculture sector,
where trade has already reached a higher level of development.
The new single European market should lead to specialization on the
prepared foodstuffs market, both in terms of the products and in the
qiality criteria.
3. SZaSLLITr OF MAPKETS AND SUPPLIES OF RAV MATERIALS
The next question to be considered is whether the markets in and supplies
of raw materials have remained stable since the entry into force of
Regulation (EEC) No 355/77. Studies indicate that the processing sector
has not benefited from the same stability of supply of raw materials as the
agriculture sector.
On the contrary, between 1977 and 1988, there have been many changes on the
markets in fishery products. The Instability is due largely to the new
situation created by the establishment of exclusive 200-mile economic
zones, which has forced fleets and the main suppliers to make adjustments
and/or to seek new fishing zones (in general, the new holders of the
enlarged zones have not been able to replace the Member States as suppliers
of the Community market). Both in terms of prices and of the market,
supplies of species such as cod, squid and herring have undergone
fundamental change.
                                                                          3
 ---pagebreak---                                      - 3 -
The latest technologies (such as the installation of surimi production
 systems on board fishing vessels, etc.) offer new opportunities for
 exploiting blue whiting stocks, which are plentiful in the Community's
 200-mile zone, and facilitate also the exploration of resources which in
 the past were regarded as being of no economic interest whatsoever.
4. REFORM OF THE STUUCIDKAL FONDS
The reform of the structural Funds provides for the speedier adjustment of
fishery stuctures through oammon measures to improve the conditions under
which fishery and aquaculture products are processed and marketed.
In view of the special characteristics of the fishing industry, it is
appropriate for such measures to be implemented under a speciflo regulation
for the sector. This Regulation, which is in conformity with the alms and
provisions of Council Regulations (EEC) Nos 2052/88 and 4253/88, applies to
all regions of the Community.
The Regulation will be Implemented in the context of the doubling of the
resources of the structural Funds planned between now and 1993, with the
regions concerned by Objective 1 qualifying for a higher rate of Community
assistance.
5.  CCMCU7SIQNS
1. The Community policy on the processing and marketing of fishery and
     aquaculture products must be incorporated in the oommon fisheries
    policy.
2. In the fisheries sector, processing and marketing play a major role in
     stabilizing the market and must be developed in the light of the
     current opportunities afforded by the market, and, above all, of the
     situation regarding resouroes, both now and in the future.
3. There is a close link between resouroes, fishing, related activities,
    the processing industry and distribution networks, with the latter two
    being of special importance for stabilizing markets and limiting the
    need for aid. Under the common fisheries policy, instability of
    resources and structures gives rise to instability of all the other
    activities.
                                                                        4
 ---pagebreak---                                      - 4 -
    The adaptation of the sectors in question to future developments r^n g
    for a certain degree of flexibility that can only be provided by a
    separate regulation on the processing and marketing of fishery
    products.
4. Facilities for the processing and marketing of fishery and aquaculture
    products should be developed in step with other structural measures
    under the common fisheries policy in order to absorb any workers in the
    fisheries sector who may lose their jobs, to consolidate fishing
    activities and to establish a core of internal growth and of
    import/export industries. Since fishing and aquaculture activities are
    usually located and concentrated in sensitive areas, such development
    would be entirely in keeping with the spirit of the reform of the
    structural Funds.
5. Such a policy could never be developed at local level. TO ensure
   adequate coordination, the common fisheries policy can only be
   successfully Implemented at Community level since it encompasses
   resources which, even internally, are exploited in areas far removed
   from sensitive regions. This applies even more as regards
   non-Community resources, which are the subject of multilatéral
   negotiations, and as regards trade in fish, which is currently
   witnessing considerable growth.
3. For all these reasons, it is essential not only that the policy for the
   processing and marketing of fishery and aquaculture products be tied in
   closely with the other aspects of the structural policy for fisheries,
   hut also that coordination be established at Community level, which
   will ensure the lasting and harmonious development of the sector only
   if a specific regulation is adopted.
7. It is proposed therefore that a specific regulation be implemented on
   the iinproveroent of the conditions under which fishery and aquaculture
   products are processed and marketed, taking account both of the alms of
   the reform of the Funds, in particular of the concentration of
   financial resources in certain regions of the Community, and of the
   specific nature of the fisheries sector, and in particular of the link
   to be established with Regulation (EEC) No 4028/86 on Community
   measures for Improving and adapting structures in the fisheries and
   aquaculture sector.
                                                                        5
 ---pagebreak---                                         Proposal for a
                                COUNCIL RBG0LAT1CN (EEC)
              on the improvement of the conditions under which fishery
                   and aquaculture products are processed and marketed
THE COUNCIL OF THE EUROPEAN OQUMDNinES,
Having regard to the Treaty establishing the European Economie Community,
and in particular Articles 42 and 43 thereof,
Having regard to the proposal from the Commission,
Having regard to the opinion of the European Parliament,
Having regard to the opinion of the Economic and Social Committee,
                                                                                            1
Whereas on 20 January 1989 the European Parliament adopted a resolution on
the fishery products processing industry;
Whereas, within the framework of the reform of the Structural Funds, the
Council has adopted:
-    Council Regulation (EEC) No 2052/88 of 24 June 1988, on the tasks of the Structural Funds and
     their effectiveness and on coordination of their activities between
     themselves and with the operation of the European Investment Bank and
     the other existing financial instruments ;
-     Council Regulation.(EEC) No 4253/88 of 19 December 1988- laying down provisions for inplenentinq
     Regulation (EEC) No 2052/86 as regards coordination of the activities or                          *
     the different Structural Funds between themselves and with the
     operations of the European Investment Bank and the other existing
     financial instruments ;
      Council Regulation (EEC) No 4254/88 of 19 December 1988. laying down provisions for irolemen
     Regulation (EEC) No 2052/68 as regards the European Regional DercèloiûenT iting
     Fund**
     Council Regulation (EEC) No 4255/88 of 19 December 1988, laying down provisions for implementing
     Regulation (EEC) No 2052/88 as regards the European Social Fund 5.
     Council Regulation (EEC) No 4256/88 of_19 December .1988. laying downorovisions ior lm
                                                                                      or  implementina
                                                                                              lementln
     Regulation (EEC) No 2052/88 as regards the ^aroi^^rlo^tu¥al        6                   P         9
     Guidance and Guarantee Fund (EAGGF) Guidance Section ;
  OJ  No  C  4 7 , 27.2.1988, p. 176.
30J   No L   185, 1 5 . 7 . 1 9 8 8 , p. 9 .
,0J   No L   374, 3 1 . 1 2 . 1 9 8 8 , p. 1 .
50J   No L   374, 3 1 . 1 2 . 1 9 8 8 , p. 15.
6 0J  No  L  374, 3 1 . 1 2 . 1 9 8 8 , p. 2 1 .
  OJ  No L   374, 31.12.1988, p. 25.
 ---pagebreak---                                      - 2 -
 Whereas Article 10 of Regulation (EEC) No 4256/88 provides that the Council
 is to decide by 31 December 1969 at the latest on the forms of and the
 conditions for the Fund contribution to measures to improve the conditions
 under which fishery products are processed and marketed;
 Whereas, following the adoption of the Regulations on the reform of the
 Structural Funds, Council Regulation (EEC) No 355/77 must be replaced
  by a new regulation;
 Whereas, in order to incorporate the improvement of the conditions under
 which fishery and aquaculture products are processed and marketed in the
 common fisheries policy, it has become necessary to adopt a separate
 specific regulation;
Whereas the adoption of a separate regulation is in accordance with Counci l
Regulation (BCSC, EBC, Euratom) No 2049/88 of 24 June 1988 amending the
Financial Regulation of 21 December 1977 applicable to the general, budget
 of the European Communities and entails the application of stricter rules
for Improving transparency and financial management;
Whereas Title I of Regulation (EBC) No 4256/88 on the speeding up of the
adjustment of agricultural structures with a view to the reform of the
common agricultural policy concerns measures for improving the processing
and marketing of fishery products;
Whereas these measures for improving the processing and marketing of
fishery products are to be Implemented as part of Objective 5(a) of
Regulation (EBC) No 2052/88 in order to speed up the adjustment of fishery
and aquaculture structures in all Member States;
Whereas Community measures for Improving and adapting structures in the
fishery and aquaculture sector were adopted at Community level by ccunci I
Regulation (EEC) No 4028/868; whereas the processing and marketing of
fishery and aquaculture products are activities appertaining to structural
policy and form an essential component thereof;
Whereas the improvement of the processing and marketing of fishery and
aquaculture products, and in particular the improvement of the salubrity,
quality and presentation of such products may open up more outlets, enhance
the value of the products oonoerned and thereby help to increase the
productivity of fisheries and aquaculture, and to stabilize prices;
7
 0J No L 185, 15.7.1988, p. 3.
3& No L 376, 31.12.1986, p. 7.
                                                                          >
 ---pagebreak---                                     - 3 -
whereas the common fisheries policy v:,z deslgi*ed to be managed and
jjnplemented at Member State level ard. vbarat.s stejs must therefore be taken
to ensure that measures relating to the jiroc easing and marketing of fishery
and aquaculture products are consistent \d.th the common fisheries policy;
Whereas the contlnuiDg Improvement of structures in the sector is essential
to the harmonious development of a common fisheries policy and thus
represents a means of attaining, in the sector, the objectives set out in
Article 39(1)(a), (b) and (d) of the Treaty; whereas structural measures
for achieving this Improvement must therefore be based on a Community
approach and criteria;
Whereas the basio guidelines of the new structural policy for fisheries and
aquaculture must not only take account of the results obtained and
experience gained in the past, but must be defined in terms of the new
situation obtaining in the sector, which has become more important since
the accession of Spain and Portugal to the Community;
Whereas the sectoral objectives of the common fisheries policy must
contribute to the harmonious development of the Community, to the
strengthening of its economic and social cohesion and, in particular, to
the speedier advancement of the less favoured and less developed regions;
Whereas, furthermore, in accordance with Article 39(2) of the Treaty, -the
structural policy must take ample account of the economic and social
environment of the sector and must allow scope for adaptation, if
necessary, in the light of the diversity or seriousness of oertain
structural problems at regional level;
Whereas the measures laid down must be In step with the requirements of
environmental protection;
Whereas, in the Implementation of this Regulation, the Commission will be
assista by the Standing Committee on the Fishing Industry set up by
Article 47 Of Regulation (EEC) No 4028/86,
                                                                           y
 ---pagebreak---                                       - 4 -
 HAS ADOPTS) ŒES R33ILATICH:
                                    ArUQle 1
                                   Cbjeotjvejs
 1. Within the framework of the reform of the Structural Funds provided
 for in Regulation (EEC) No 2052/88 and In order to facilitate the
 adaptation of the conditions under which fishery and agriculture products
 are marketed and processed to the development of the common fisheries
 policy, a common measure within the meaning of Article 2 of Regulation
 (EEC) No 4256/88 is hereby established in order to Improve the conditions
 under which fishery and aquaculture products are processed and marketed.
 Under this measure, the Community may participate in the financing of
 investments which:
 (a) contribute to the economic and social cohesion of the Community;
 (b) take account of the needs of the less favoured regions;
 (c) help to direct production and processing towards the objectives pursued
by the common fisheries policy through the structural measures provided for
in Regulation (EEC) No 4028/86;
 (d) improve, In the long term, the marketing and processing structures for
 fishery and aquaculture products;
 Ce) improve the marketing and distribution networks for fishery and
aquaculture products;
 (f) help to improve the salubrity, quality, preservation and packaging of
products, or contribute to the better use of by-products;
 Cg) promote technical innovation, and the processing and marketing of new
or underexploited species;
(h) help to adapt processed products to consumer demand;
Ci) contribute to market stability for fishery and aquaculture products;
Cj) help to ensure the regular supply of raw materials to the fishery and
aquaculture product processing sector, or enable such supplies to be
mod.1 fled by a more flexible production process.
                                                                          f
 ---pagebreak---                                        - 5 -
2. The primary aim of the common measure shall be to contribute towards
the achievement of Objective 5Ca) defined in Article 1 of Regulation CEBC)
No 2052/88 by speeding up the adjustment of fishery and aquaculture
structures to the development of the common fisheries policy, in accordance
•y-ith the oorditiens laid down in Regulation (SBC) No 4256/88.
:.     1^L3 ccrjrcn ssasu!^ shall ^^pl? to the entire CcmEunity.
 1. Z^s ocEson s'sacur-e ii&H l:s iu keepir- *ith the datai!3& irclzs -for» the'
•ipplic&cicn of CSocsunity measures. It shall complement national measures
of a similar nature and contribute to their Implementation within the
framework of the partnership between the Community and the Member States
defined in Article 4 of Regulation CEBC) No 2052/86.
                                       TXXUZ I
                                  SBCTORAL PIANS
                                     Article a
In order to Improve the processing and marketing of fishery and aquaculture
products, each Member State shall prepare a sectoral plan covering the
entire fisheries and aquaculture sector. Plans must be drawn up at national
level, must group together In a coordinated way all the regional plans of
the Member State concerned, In order to ensure the effective Integration,
planning and management of the processing and marketing of fishery and
aquaculture products, and must be devised In such a way as to:
- create a viable industry which is in conformity with Community policies
    and in particular with the oommon fisheries policy, which takes account
    of the foreseeable trend of raw materials supplies In the medium term
    and which is in step with fishery activities and structures 1 A the area
    in question;
- develop and adapt facilities for the processing and marketing of fishery
    and aquaculture products In order to obtain maximum added value and to
    satisfy the requirements of pcroduoers and consumer demand;
- take account of the socio-economic needs of the fishing industry and of
    the Impact of this Regulation.
                                                                          y/O
 ---pagebreak---                                            - 6 -
                                         Article 3
                               Octant offleotromlplans.
 1. Sectoral plans must contain a description of the history and present
 situation as regards the processing and marketing of fishery and
 ao^iaculture products.
 2. Sectoral plans must give details of the requirements of the sector and
 of the means which will be deployed to satisfy those requirements and to
 justify Community assistance.
3. Sectoral plans must give particulars also of the policies implemented
by the Member State during the period of validity of the plan and give
details of the objectives and the financing plan.
4. The period envisaged for Implementing the plan must not exceed
five years.
5. An outline of the sectoral plan and of the minimum information which
it must contain are shown in the Annex.
                                        Article 4
                          nprtAtHT^ *Trf T W I anntmLl p1*n«
If the period originally determined by a Member State for implementing a
sectoral plan has expired, or if a significant modification must be made to
it, a new sectoral plan or updated plan must be drawn up, containing, in
addition to the information referred to In Article 3, a report showing:
Ca) the progress achieved as against the forecasts in the earlier plan, in
particular regarding the availability of public funds;
Cb) the development of the situation regarding the processing and marketing
of products, and the need to update the plan or to prepare a new one.
                                        Article B
               ProoftihiTft frnr tdhn Intro^ritlnn of ftrrfriml p1«nn
               VA *>*> Ajppvw^i r* rv—tt^ty support fmmewnrkH
1. The initial sectoral plans must be submitted to the Commission by the
Member State by 31 March 1990.
The dates for the submission of subsequent plans or of adjustments to
existing plans shall be fixed by the Commission In agreement with the
Member State concerned.
                                                                       V-7
 ---pagebreak---                                     - 7-
2. Decisions concerning the Community support frameworks for fishery and
aquaculture products shall be taken by the Commission, on the basis of the
sectoral plans, within six months in accordance with Article 11 of
Regulation CEBC) No 2052/88 and Article 8 of Regulation CEBC) No 4253/88
and in accordance with the procedure laid down in Article 29 of Regulation
 (EEC) No 4253/88. For this purpose the Commission shall seek the opinion
of the Standing Committee on the Fishing Industry set up by Article 47 of
Regulation CEBC) No 4028/86.
3. As part of the approval procedure, the Commission shall see to it that
the Community support frameworks are compatible with the priorities of the
Community policies and in particular with those of the common fisheries
policy.
4. Measures falling within the scope of this Regulation may be taken into
consideration by the Commission when establishing the Community support
frameworks for areas covered by Objectives 1, 2 and 5(b), as provided for
in Title III of Regulation CEBC) No 4253/88. Such measures must be In
conformity with the provisions of this Regulation.
In such oases, the Commission, before adopting its decision, shall consult
In respect of the Community support frameworks, the Standing Committee on
the Fishing Industry set up by Article 47 of Regulation CEBC) No 4028/86.
                                  TITLE H
                          OPBRATIOHAL PROGRAMMES,
                      GLOBAL GRANTS, SDTTAHLB HOJHCTS
                                 ATftlfflft ft
1. For the purposes of the application of this Regulation, Community
assistance shall be provided In one of the following forms:
- part-financing of operational programmes;
-  provision of global grants;
- part-financing of suitable projects;
-  support for pilot and demonstration projects and for technical
   assistance and studies in preparation for operations,
as shown In Article 5(2) of Regulation CEBC) No 2062/88.
                                                                        /Il
 ---pagebreak---                                       - 8-
 2.   Th3 pai"t-firpzcing of operational programmes and the provision of
 global grants shall constitute the main forms of assistance.
 3. Part-financing may also be granted for suitable projects, but only
 where they relate to new production units. In this case the thresholds
 referred to in Article 16C2) of Regulation CEBC) No 4253/88 shall not
apply.
 In addition, limited financial aid shall be provided for In respect of
studies fyd pilot w* demonstration projects yrf for 'fc^rfrmina.i assistance.
                                   ArJdcieJZ
         Pllot/drtamHlimtJOD projects, teohnlml Afffrtfrtawnft, fftnrilfis
Community financial support of up to 1% of the annual budgeted
 amount may,     in accordance with Article 8 of Regulation CEBC)
No 4256/88, cover:
-   pilot or demonstration projects for the processing or marketing of
    species, especially new ones;
-   technical assistance and the necessary preparatory studies;
-   studies to assess the effectiveness of the measures provided for by this
    Regulation.
                                   ArjàoiûJi
                         AppllOAtlnnR for flfffrtfrtaaoa
1. Applications for assistance shall be drawn up in accordance with the
conditions laid down in Articles 14(1) and 16(1) of Regulation CEBC)
No 4253/88 and shall be submitted to the Commission by the Member State or
by any body the latter may designate to do so.
Applications shall relate to one of the forms of assistance provided for in
Article 6 C D of this Regulation and shall be compatible with the Community
support framework adopted by the Commission.
Member States shall submit, with the applications for assistance, a
description of the national management and oontrol arrangements applicable
to them.
                                                                           /)!>
 ---pagebreak---                                      - 9 -
 2. Applications shall contain the information necessary for the
 Commission to:
 -  assess the oonformity of the proposed measures with the Community
    policies, in particular the common fisheries policy;
 - assess the contribution of the proposed measure to the improvement of
    the processing and marketing structures, the consistency of the
    constituent measures, and their conformity with the Community support
    framework it has approved and the selection priorities;
 -  check that the implementing and financing procedures will ensure the
    effective implementation of the measure;
-   determine the precise nature of the assistance it will have to provide;
-   evaluate the overall impact on the environment and the means available
    for offsetting or reducing any adverse effects.
                                   TITUS H I
                     INVESTMENTS, KUtilHI U'lY, SELBCTTCN
                                   Article Q
                            IVJflP. Of lllVHHlflHltP.
Measures Implemented under this Regulation shall be public semi-public or
private investments, In respect of fishery and aquaculture products,
covering, in whole or in part, premises and/or equipment Intended in
particular for the development or rationalization of facilities for
cutting, filleting, the removal of heads, evisceration and skinning, and
for canning, smoking, cooking and packaging of products for retail sale,
and for auction markets, and facilities for the storage, cold storage,
deepfreezing and bulk packaging of the products. They shall also Include
facilities, Including those for water filtration, and equipment required
for processing and marketing from the time of landing from fishing vessels
in ports to final consumption.
                                                                         </*
 ---pagebreak---                                        - 10 -
 1. The Investments defined in Article 9 shall be eligible for Community
assistance throughout the Community.
2. However, in order to be eligible for such assistance, investments, must:
-   belong to one of the classes defined In Article 9;
-   form an integral part of a Community support framework and contribute to
    the lasting economic effect of the structural improvement provided for
    therein;
-   offer adequate assurances of technical and economic viability;
-   guarantee permanently the Community origin of the bulk of the raw
    materials.
Investments shall not be eligible which concern:
-   fishery and aquaculture products intended to be used and processed for
   purposes other than human consumption (except investments intended
    solely for the treatment, processing or marketing of fishery wastes);
-   the retail sector;
-   work begun before the date of receipt by the Commission of the
   application for assistance;
-   products other than those listed in Annex II to the Treaty. The
   Commission may, however, allow investments concerning other products
   provided that the bfpgf1 <H 4W*1 f*p of the assistance have direct
   contractual links with the producers of basio fishery and aquaculture
   products.
                                                                         •/r
 ---pagebreak---                                      - 11 -
 3 • Within the framework of the investments referred to in paragraph 1,
 costs may be eligible for funding if they relate to:
 (a)      the construction and acquisition of immovable property, other than
          the purchase of land;
 (b)      the acquisition of new machinery and equipment, iTvVhv^ng
          computers, software and computer programs;
 (c)      overheads such as fees for architects, engineers and consultants,
          the cost of feasibility studies and contingencies up to 12% of the
          costs referred to in points (a) and (b) above.
                                   Article 11
                             Selection priorities
 The Investments must ensure the rational development of the processing and
 marketing of fishery and aquaculture products and guarantee producers of
 basic products a satisfactory and lasting share of the economic benefits
 arising from them.
 In general, priority shall be given to investments which oonoern:
 - the modernization and rationalization of auction markets and halls for
    the first-hand sale of products landed by vessels flying the flag of a
     Member State;
 - the storage, smoking and handling of fishery and aquaculture products;
 - facilities for preparation for first-hand sale and filleting of fresh
    fish;
- the preparation of finished products from fish which has been caught and
    deepfrozen on board vessels flying the flag of a Member state;
- undertakings producing preserved products provided that they are
    production units which are technically advanced, eoonomioally viable and
    capable of withstanding free international competition;
- the development of new products and new technologies based in particular
    on the results of the research, pilot and demonstration projects;
- the Improvement of the quality and hygiene of production processes;
- the enhancement of the added value of products;
- producers of basic products, producers' groups or associations thereof,
   and coopératives.
                                  Article 12
1. Community assistance shall be granted to natural or legal persons or
groups of persons responsible for investments.
2. Community assistance shall be paid In accordance with the conditions
laid down in Article 15:
                                                                          /?&
 ---pagebreak---                                           - 12 -
 - by the authorities designated pursuant to Article 14(1) of Regulation
    (EEC) No 4253/88, OT
 - by the intermediaries designated pursuant to Article 16(1) of Regulation
    (EBC) No 4253/88.
                                       Article 13
           Dfifrtfrtnnfi granting vrrlfrtanoft anl ludgfttAry, orwnltinflntB
1. The Commission Shall decide upon granting assistance.
2. The decisions referred to in paragraph 1 shall be notified to the
   authority or intermediary referred to in Articles 14(1) and 16(1) of
   Regulation (EBC) No 4253/88 and to the Manner State concerned.
3. In the oase of multiannual measures, the authority or intermediary
   referred to in paragraph 2 shall send the Commission each year the
   Information necessary to enable the commitment to be effected in the
   annual instalments provided for in Article 20(2) of Regulation (EBC)
   No 4253/88 and to check the conformity of the investments with the
   decisions referred to in paragraph 1 and in Article 5(2) and (4) of this Regulation.
                                        TITLE IV
                          F D W d A L AND GENERAL PROVISIONS
                                       ArtilOlft 14
                                  Bates, of vrrtfTtianPft
1. Assistance may not exceed, In relation to the eligible oosts of the
   Investments:
   (a) 50% In the regions concerned by Objective 1;
   (b) 30% In other regions.
2. In general, aid shall be In the form of capital grants. If i t i s In a
   different form i t may not exoood the equivalent of the capital grant
   referred to above.
                                                                             /7f
 ---pagebreak---                                     - 13 -
 3. The Member States concents! shall finanoe at least 5% of the eligible
    costs of the investments accepted by the Commission for the grant of the
    assistance.
4. The contribution of the beneficiaries referred to in Article 12(1), in
    relation to the eligible costs of the investments accepted, shall be at
    least:
     (a) 25% in the areas oonoerned by Objective 1 ;
    (b) 45% in other areas.
5. Member States may, within the limits set by the scope of this
    Regulation, adopt additional aid measures which are subject to
    conditions or rules other than those laid down herein, or which involve
    an amount In excess of the maximum amounts referred to in this Article provided
    that they are in conformity with the provisions of Articles 92 to & of
    the EEC Treaty.
                                  Article 10
1. The amount of the advances or balances which must be paid in accordance
    with Article 21 of Regulation (EEC) No 4253/88 shall be paid to the
    authority designated pursuant to Article 14(1) of Regulation (EEC)
    No 4253/88 or, where appropriate, to the intermediary referred to in
    Article 16(1) of that Regulation.
    Payment of the balance shall be made only after the financial
    contribution of the Member States, provided for in Article 14(3) of this
   Regulation, has been paid to the final beneficiaries.
2. The authority or Intermediary referred to in paragraph 1 shall check the
   documents supporting the final expenditure of the beneficiaries and
   shall see to it that there are no irregularities before the Community
   assistance is paid. It shall also carry out on-the-spot checks in order
   to verify that the information contained in the aid application
   corresponds to the true situation. Payment to the beneficiary must be
   made within four weeks of submission of the application provided that
   the latter Is accompanied by all the documents necessary for
                 the effective nature of the expenditure.
                                                                             41
 ---pagebreak---                                             - 14 -
 3.    At the end of each quarter the authority or intermediary referred to
 in paragraph 1 shall transmit to the Commission a l i s t of the payments made
 to beneficiaries with particulars of the supporting documents in i t s
 possession.
 4.   A progress report Shall be transmitted by the authority or intermediary referred
to in paragraph 1 to the Commission every six months.
                                         Article 18
 1. The authority designated pursuant to Article 14(1) of Regulation (EEC)
No 4253/88, or, where appropriate the intermediary referred to in
Article 16(1) of that Regulation, shall transmit to the Commission, at its
request, all supporting documents and evidence for establishing that the
financial or other conditions have been met. The Commission may carry out
on-the-spot checks.
2. The Commission may decide to suspend, reduce or discontinue its
assistance if:
- the investments have not been carried out as envisaged;
- certain conditions laid down in the Commission decision referred to in
    Article 13(1) have not been fulfilled;
- the implementation periods have not been observed.
      Such a decision shall be notified to the Member State concerned and to
the authority designated pursuant to Article 14(1) of Regulation (EEC)
No 4253/88 or, where appropriate, the intermediary referred to in
Article 16(1) of that Regulation.
                                         Arlilolft 17
The monitoring and assessment of the financial measures provided for herein
shall be carried out In accordance with Articles 25 and 26 of Regulation
(EEC) NO 4253/88.
                                                                                ,•;
 ---pagebreak---                                      - 15 -
                                   Article lfi
All references in other acts to Regulation (EEC) No 355/77 and relating to
fisheries shall be replaced by references to this Regulation.
                                   Article la^
1.     Until 31 December 1990, projects may be submitted in
 accordance with Regulation (EEC) No 355/77.
2. Projects presented in 1990 under Regulation (EBC) No 355/77 which do
not form part of a sectoral plan shall be considered, until 30 June 1991,
for the purposes of the grant of assistance under that Regulation.
3. Specific programmes have     been approved for Member States under
Regulation (EBC) No 355/77. *   On their expiry and at the time of their
review, they will be replaced   by Community support frameworks which will
enter into force on 1 January   1991 at the latest.
                                  Article J8Q
This Regulation shall enter into force on 1 January 1990.
This Regulation shall be binding in its entirety and directly applicable in
all Member States.
°°ne at
        '                                     For the Council
                                                                           I
 ---pagebreak---                                                                  OBBBL
                                OUTLINE SBCTORAL FLAN
 A.    FISHERIES
 l.   Oflnflml dft=K?rlpUoQ of the, arm
 -  geographical configuration;
 -  demographio structure;
 -  main eoonomlo Indicators;
-   level of employment;
-   gross regional product (composition and trends);
-   Importance of fisheries to the general economy of the region.
2.    rtetAllfld dftwrrHptlnn n f flfihgrlflg il7} f£*> rffjfiip
2.1   Wfthii-y n*»+.
(a) types of vessel, characteristics, types of fishing gear used;
(b) employment directly linked with the fishing fleet;
(c) area of activity of the fishing fleet in the short, medium and long
term; development trends of resources in terms of yield; information
sources used for evaluating these trends;
(d) development of the fishing fleet in the region following the
Implementation of the multlannual guidance programme defined in Regulation
(EEC) No 4026/86, and impact on capacity and future landings.
                                                                        i
 ---pagebreak---                                        - 2 -
 2.2   Porte and l a n ^ r y fâfm
 (a) description of fishing ports (location, size);
 (b) complete breakdown of main species landed;
 (c) description of facilities, current needs and problems In each port.
2.3 Auctions
Number, capacity, location and extent of use of auctions; species sold;
current shortcomings due to lack of concentration of sales; shortcomings
attributable to the Inadequacy of facilities and equipment or other
factors.
2.4 OnldfitOTft capacity of thft a r m
Location and capacity of ooldstore facilities in the area; turnover
(annual volume of entries and exits of goods); types of product stored.
Inadequacy of capacity for storing the production of local or other fleets.
Storage of products from other regions (differentiating between Community
and nonHDommunity products): types and quantities of products stored for
processing; description of problems and of shortcomings.
2.5   PftlA-ted «ftrttnrfl
Description of related sectors In the region (sMpyards, repair workshops,
supply stores) and Impact of the local fleet on their economy.
                                                                         21
 ---pagebreak---                                               - 3 -
 B.    A(grWJ.miUKE
 1.    ftetAilfld dAgnrHptT1rm nf f ^ y ^ } } frurft 1.11 tJlft rflglm
 (a) Outline of the aquaculture sector, present situation and outlook
 (requirements, plans);
 (b) Description of the type of facilities, their capacity and methods of
production;
 (c) Description of the types and quantities of products for which
aquaculture production could supply the raw material;
 (d) Description of the quality of the waters concerned, means used for
obtaining an appropriate quality of water for fishfarming In aooordanoe
with Directive 79/923.
c     «aassiAC AND      MAEKKTBG
1.    £TOOjQfiS2n£
Detailed figures for the sector (number of undertakings, types of products
processed); present sources of raw materials; problems Involving the
ability of the industry to oompete with other Industries inside and outside
the Community; current problems relating to equipment and sources of raw
materials; full description of the present situation and outlook for the
various types of fishery and aquaculture products.
2.    ifcxkeiiDg
Detailed figures for the sector (number of undertakings, type of
marketing) ; description of future sales and marketing strategies for the
various types of fishery and aquaculture product.
                                                                          12
 ---pagebreak---                                      - 4 -
 D.    AIMS OF THE PROGRAMME AHD RESORTS HKpmjiw FOR TER FEKDQD IN QUBBTIUI
A detailed description should be given of the aims to be achieved for
 remedying the abovementioned shortcomings, and particulars «hCTld be given
 of the way in which the various sectors will be affected.
A list should also be given of the legal, financial or other measures
planned by the Member State for developing the processing and marketing
sector, as well as the number and type of projects to be presented under
the programme.
The desired level of Community funding should also be specified, together
with the consequences of a total or partial refusal. A financing plan
must be prepared for this purpose.
Lastly, details should he given of why the objectives have been set, the
way In which they will benefit the region and the quantitative effect of
their implementation on the regional eoonomy.
B.     BBGKATXCN
(a) Definition of the geographical areas in which fisheries and aquaculture
are significant; history of the processing and marketing sector and the
reasons for its present geographical location;
(b) a survey of the present situation and a description of past and future
trends justifying the action, particularly as regards:
- the eoonomlo and social situation of the area In general, in so far as
    it Is of Importance to the sectoral plan, and in parti oui A T the
    fisheries and aquaculture sector;
-   the importance of fishing and/or aquaculture to the eoonomy;
- the situation as regards the processing and marketing of fishery and/or
    aquaculture products, in particular the present capacity of the
    undertakings in question and their geographical distribution;
                                                                         M
 ---pagebreak---                                     - 5 -
 (c) the needs which the plan must answer and its objectives, in particular
 the number, nature and size of the processing units, storage facilities and
 auctions, but also the number of jobs likely to be created, and the species
 and quantities of raw materials for processing;
 (d) the means deployed to improve salubrious conditions at each stage of
 the processing and marketing of fishery and aquaculture products;
 (e) the marketing and sales strategies proposed for the processed products;
 (f) the means envisaged for attaining the objectives of the plan, in
particular the total amount of the investments and the financial
contribution of the Member State;
(g) the relationships, coordination and links of the sectoral plan with
other national and Community programmes in the area, and in particular,
with the measures provided for in Regulation (EBC) No 4028/66 on Community
measures to improve and adapt structures in the fisheries and aquaculture
sector;
(h) a description of the nature of and detailed provisions relating to
national aid, and relevant national and regional legislation;
(i) an illustrative list of the investments and other measures liable to be
funded as part of the plan (the Commission will decide later on the
information to be provided in respect of each Investment);
(j) national criteria for selecting investments not referred to above since
it cannot be expected that a sectoral plan will describe in detail all the
investments proposed for funding during its period of validity;
                                                                         2S
 ---pagebreak---                                     - 6 -
 (k) an indication of the way in which investments liable to be funded will
obtain their supplies of raw materials, taking into considération Community
resources, the resources of non-member countries, the trend of fishery
agreements, agreements relating to international waters and other
non-Community sources of supply;
(1) a description of the types of product likely to be marketed and of
their situation in relation to the present state of the Community market;
(m) the overall impact on the environment of the measures provided for in
the plan, where such Impact is significant, and the means for dealing with
it;
(n) the period envisaged for implementing the plan, which must not exceed
five years;
(o) the administrative, legal or financial measures adopted or to be taken
for implementing the plan, In particular the nature of the measures
envisaged and the authorities or intermediaries designated pursuant to
Articles 14(1) and 16(1) of Regulation (EEC) No 4253/88.
                                                                         ?£
 ---pagebreak---  ---pagebreak--- Commission of the European Communities
COM(89) 187 final
Proposal for a
COUNCIL REGULATION (EEC)
on the improvement of the conditions under which fishery and aquacul-
ture products are processed and marketed
(presented by the Commission)
 12.5.1989
Office for Official Publications of the European Communities
L - 2985 Luxembourg
Series: DOCUMENTS
 1989 - 26 pp. — Format: 21.0 * 29.7 cm
EN
ISSN 0254-1475
ISBN 92-77-49520-0
Catalogue number: CB-CO-89-183-EN-C
 ---pagebreak---                                           ISSN 0254-1475
COM(89) 187 final
 DOCUMENTS
Proposal for a
COUNCIL REGULATION (EEC)
on the improvement of the conditions under
which fishery and aquaculture products are
processed and marketed
(presented by the Commission)
04                                      12.5.1989
Catalogue number: CB-CO-89-183-EN-C
ISBN 92-7 ,'-49520-0
€
COMMISSION OF THE EUROPEAN COMMUNITIES