CELEX: 51977PC0543
Language: en
Date: 1977-10-21
Title: PROPOSAL FOR A COUNCIL REGULATION on certain immediate measures to adjust capacity in the fisheries sector (Submitted by the Commission to the Council)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (77) 543
Vol. 1977/0174
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                             COM(77 ) 543 final
                                                             Brussels , 24 October 1977
                        PROPOSAL FOR A COUNCIL REGULATION
             on certain immediate measures to adjust capacity in
                                        the fisheries sector
                     ( Submitted "by the Commission to the Council )
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   COol(77,i 543 final
 ---pagebreak---                                ibnolanatory rrÆ.Torar.dum
The recent action "by many States to establish offshore economic zones of 200 nautical
miles has upset the established pattern of fishing of the fleets of non-coastal
countries which traditionally fished in these areas .     This situation also affects
the Community , which had until now obtained a considerable proportion of its supplies
of fish outside its own waters .
This state of affairs is aggravated by the dangerously low stocks of several' species
of a high commercial value inhabiting Community waters and by the precarious
financial situation of a number of vessels fishing in distant waters-.
These problems oblige the Community to adopt as a matter of urgency a number of
measures in favour of the sector most affected by this situation , the high–sea
fishing industry .
 The Commission therefore proposes adoption of a directive providing for financial
 aid for the purpose of adapting production capacity to the new catch quotas and
 adapting the processing sector engaged in production for purposes other than human
 consumption to the new supply situation , and making provision for actions on behalf
 of the consumer to develop outlets for species that are little known on the market .
 The proposed directive is not intended to establish a complete structural policy
 in the fisheries sector .
 Although in the new circumstances the Community will need to bring about comprehensive
 structural changes in the years to come , it would seem impossible , and indeed
 premature , to define and implement such a policy at this stage .   Uncertainties
 still exist as regards future access to fishing grounds in non-member countries and
 as regards the development of the Community system for the conservation and
 management of fishery resources , the conditions of application of v;Lich will determine
 the rate of recovery of stocks .
 The proposed measure should , however , enable a start to be made with the adjustment
 of production and processing capacity to the new situation created . by the extension
 of fishing zones to 200 miles .
 It will also facilitate the implementation of the catch limitation measures which
 are necessary for the conservation of stocks .
 ---pagebreak--- The proposed directive allows for action in addition to other measures already the
subject of proposals from the Commission to the Council in the fisheries sector ,
namely restructuring the non-industrial inshore fishing industry'' and provisions on
conditions for the granting of national aid in the abovementioned sector2 .
The Commission considers that the work on these two proposals already undertaken "by
the Council should be followed up without delay :
•7! on inshore fishing , so that a framework can be worked out in which this important
    part of the fisheries sector can develop following the relocation of the
    Community 's resources ;
– on the harmonization of national aid with a view to defining common rules for the
    granting of such aid and ensuring that it is directed towards operations for the
    redeployment and adjustment of fishing and processing capacity , rather than
    towards new investment that could hinder the necessary structural rationalization
    of the sector .
  Proposal for a Council Regulation on a programme for restructuring the non–industrial
  inshore fishing industry COM(75)574 final .
2
  Proposal for a Regulation laying down the conditions for granting national aid under
  the common structures policy in respect of the fisheries sector (R/2713/73 (AGRI 732)]
 ---pagebreak--- Lastly , the proposed measures serve to reinforce the means already available
to the Community for the improvement of processing and marketing structures
for agricultural products'' , for improvement of the infrastructure in connection
with the Regional Pond , and in respect of initial and further training and
retraining of workers in the fisheries sector under measures available through
the European Social Fund .    The Social Fund can provide aid to further the
geographical and occupational mobility of fishermen by taking over training
costs and providing income support during training periods2 .
1.    Adiustment of production capacity
Three types of measure , all complementary , are proposed .    These are :
(a) redeployment of some of the surplus capacity to the fishing of underexploited
      species and the prospection of new fisheries resources ;
(b) a temporary reduction of fishing activity pending the recovery of stocks
      and in case the redeployment measures do not prove adequate ;
(o ) the definitive withdrawal from operation of certain vessels which cannot
      be used any longer for lack of resources or which cannot be adapted to
      the new situation for technical reasons .
1
  From 1978 onwards , structural adjustment of investment in the fish processing
  sector will qualify for aid from the EAGGF , Guidance Section , under the
  provisions for the improvement of processing and marketing of agricultural
A
  products (Regulation (EEC) No 355/77 of                   )•
  Applications for aid from the Pond may be submitted under Articles 4 and 5 of
  Council Decision Jl /66/EEC of 1 February 1971 •  Under Article 4 , aid is
  restricted to persons who cease fishing , whereas aid undor Article 5 i s
  restricted to fishermen who continue to fish but who need retraining following
  reorganization of the sector .
 ---pagebreak--- The purpose of tb3 . rrrviiros under ( a) is to encourage a partial redeployment of
tna fishing effort of high-sea fleets towards fishing outside the Community
zone on fishing under-exploited species insids the Community zone .      These
measures -will thus reduce pressure on Community stocks of traditionally fished
species , prevent the unprofitability of fishing fleets from "being aggravated
by a lower outpux per production unit , while keeping the Community market
supplied with marine protein .
To achieve this purpose , this proposal provides for the grant of a redeployment
premium to undertakings willing to steer their fishing activities in a new
direction .   This premium will be granted by Member States for trial fishing
seasons authorized in advance by these States after considering what balance
should be sought between the quantity of a given species which it is hoped to
catch and the requirements of the market .
The purpose of the measures under (b ) is to keep in being a proportion of the
production potential traditionally devoted to the exploitation of stocks which
are now subject to quantitative conservation measures implying a reduction in
the overall fishing effort .
As it is likely that the redeployment of surplus production capacity towards the
catching of new species will not on its own be sufficient to resolve the problem ,
it would seem necessary to provide for other measures to avoid an uncoordinated
disinvestment which might otherwise occur and might at a later stage prejudice
the optimum exploitation of regenerated stocks by Member States' fishermen .
To achieve the above purpose , it is proposed to grant a laying-^up premium to
fleets which agree to suspend temporarily the fishing activity of one or more
vessels , either independently or by way of withdrawal plans established by
 ---pagebreak--- recognized producer organizations , limiting their overall activity
The amount of this laying-up premium , calculated in relation to the cost of the
initial investments ( cost of construction or value at purchase ) and increased
where necessary by the oost of any modernizations , is intended to cover the
financial and other costs of laying–up in a port .
The measures referred to at ( c ) have the purpose of allowing a certain number
of higfr-sea fishing vessels , which are difficult to adapt to other activities
and whose technical characteristics ( size , equipment ) are not suitable for
economically profitable fishing in Community waters even in the medium term ,
to be withdrawn from the production potential .
To achieve this purpose , by encouraging the fleets concerned to bring about a
restructuring of the Community fleet in keeping with the new international
maritime context , the present proposal provides for the granting , after  the
vessels concerned have been struck off the register of fishing vessels ,   of a
final cessation premium varying according to whether the vessel is sold    for
breaking , assigned to purposes other than fishing or sold to non-member   countries .
2.   Measures for the reduction of treatment or processing capacity m respect
     of fishery products
The sector concerned with processing fishery products for purposes other than
human consumption is faced with a reduction in supplies and in consequence
with a reduction in the profitability of its plant       as a result of the
conservation and management measures necessary for the regeneration of threatened
stocks .
To the extent necessary, a partial restructuring of this industry must therefore
take place , either by completely closing down some of the plants or by
converting plants , for example to treat fishery products for human consumption.
 ---pagebreak--- lias proposal therefore provides for Member States to introduce financial aid
for operations to reorganize the sector .
It is proposed that the system of financial aid include the granting of a
premium for the closure of surplus processing capacity and a premium for
converting capacity to the treatment of fishery products for human consumption.
The closure premium and the conversion premium will be granted by the Member
States concerned either as a single payment or in monthly instalments while
conversion is taking place .
3.   Measures to promote consumption
Even if the best possible use is made of surplus production capacity by a partial
redirection of the fishing effort towards the exploitation of under–exploited
species , problems will still arise in the marketing of species which are not
familiar or are unknown to consumers .
To overcome these difficulties , the Community mast , in parallel to the proposed
reorganization measures , help to encourage the development of markets for these
species with a view to stimulating demand to matoh the likely increase in supply.
Since the Council has adopted measures to encourage investment in the processing
and marketing of fishery products'! , further measures aimed at informing the
consumer are necessary if the measures concerning the processing industry and
the fishing fleets proposed in this directive are to be fully effective .
In order to avoid an imbalance between supply and demand damaging to both consumers
and fishermen , publicity campaigns should be undertaken using the most appropriate
media with a view to increasing the demand for fishery products , in particular the
lesser-known species of fish and products processed from those species .
 Regulation (EEC ) NO 355/77 (OJ No L 51 , 1977 )
 ---pagebreak---                                         - 6 -
4.   Measures to assist fishermen
Two of the measures proposed concerning fishing fleets - final cessation of fishing ,
temporary reduction of fishing – are "bound to have immediate social consequences .
Implementation of these provisions is likely to cause long-term unemployment or
technical unemployment as the case may "be .  Although the transfer of some of the
fishermen affected to activities outside the fishing industry may "be a perfectly
reasonable measure in itself , it could in this case cause serious medium-term
difficulties once the crisis is over and it becomes necessary to ensure optimum
management of regenerated stocks in the Community zone .
Consequently , Member States will need to implement accompanying social measures to
alleviate the consequences of a final or temporary cessation of activities by part
of the fleet .   Therefore Community financing is proposed in cases where Member
States introduce a scheme to encourage the definitive cessation of fishing activities
by fishermen between 50 and 65 , and a scheme of cessation premiums .
5»   Financial , budgetary and general provisions
(a) Financial implications
Provision is made for the Community to reimburse Member States part of their
expenditure in respect of measures provided for under this Directive .    Community
participation amounts to 50$ of eligible expenditure .
Pursuant to procedure laid down in this respect , a. financial record sheet is
attached to this proposal to give a rough idea of the likely initial cost of
the proposed measures spread over five years .
 ---pagebreak--- (b) Budget présentation
The Conunission regards the present action as being of a specific nature and
consequently not to be assimilated to common measures within the meaning of
Regulation No 729/70 which receive appropriations under the Guidance Section
of the European Agricultural Guidance and Guarantee Fund .
It is , therefore , proposed to create an ad hoc chapter representing the layout
for this expenditure in the budget in which estimates for the expenditure in
question will be entered .
( c ) Procedure and implementation
For the implementation of this Directive , the Commission proposes to apply by
analogy certain implementing provisions contained in Regulation No J2 9/ 70-
So that the measure may have the flexibility needed for its adaptation to the
particular situation of each Member State , the Commission proposes that all
laws , regulations and administrative measures that Member States propose to
adopt should be subject to scrutiny to ensure their conformity with the
purposes of the directive and the necessary connection between the measures .
This proposal therefore provides , in order to ensure Community financial support ,
for the measures adopted by Member States , for their prior approval by the .
Commission after consultation with the Standing Committee for the Fisheries
Industry and with the EAGGF Committee on the financial aspects .
     This proposal also lays down the procedure for the annual submission of
     applications for reimbursement of expenditure incurred by Member States
     and for the control of operations financed by the Community .
     As the proposal is of general application , the adoption of which is
     not covered by existing instruments and which involves a significant
      level of expenditure , the Commission believes that the conditions for
      application of the conciliation procedure are fulfilled.
 ---pagebreak---                            Draft proposal for
                            COUNCIL DIRECTIVE
                             of
on certain immediate measures to adjust capacity in the fisheries sector
THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
and in particular Articles 43 and 209 thereof ,
Having regard to the proposal from the Commission ,
Having regard to the Opinion of the European Parliament \
Whereas recent changes in the law of the sea and the consequent establishment
of 200-mile offshore economic zones have modified the situation confronting
the fishing industry;
Whereas the diversity of the socio-structural problems calls for separate
solutions for each one in order to help maintain optimum productive
capacity in each region and help develop the market ;   whereas the best
results can be obtained if on the basis of Community concepts and criteria
the Member States introduce specific socio-structural measures , taking
 the form of a financial aid and consumer promotion system , by way of
national laws , regulations and administrative provisions ;
Whereas fishing fleets operating in the waters under Member States'
jurisdiction are experiencing difficulty because fish stocks in these
waters are dangerously low;
 1
 ---pagebreak--- Whereas in these circumstances the Community , in the interests of both
fishermen and. consumers , should , during the time required for the •
threatened stocks to recover , preserve the productive capacity of Member
States necessary for the optimum exploitation of these stocks when they
have been replenished ;    whereas the search for new fishery resources ,
both within and outside the Member States * fishing zones , should be
promoted by way of premiums for the redeployment of excess production
capacity ;
Whereas the maintenance of the production capacity required in the medium
term may be promoted by measures designed to secure a temporary reduction
in the fishing activities of vessels which are liable to become
unprofitable because of the catch restrictions ;     whereas aid should be
given in the form of laying-up premiums to fishermen who undertake
to withdraw their vessels from operation and to recognize producers *
organizations which produce plans for reducing the amount of fishing
done by their members ;
Whereas the maintenance of productive capacity does not obviate the necessity
of permanently reducing the capacity of fishing fleets the technical
characteristics of which make it difficult to adapt them to the types of
fishing anticipated in the medium term within and outside the fishing
zones of the Member States ;    whereas such reduction in capacity can
be encouraged by means of a cessation premium scaled according to what
is to be done with the vessel ;     whereas the granting of this premium
should be conditional on the vessel first being struck off the register of
fishing vessels so as to ensure that it is not again used for fishing in
the waters of any Member State of the Community ;
Whereas , insofar as the sector processing fish for purposes other than
human consumption is facing difficulties owing to diminished supplies
as a result of the fisheries conservation and management measures adopted
by the Community ; it may be necessary for action to be taken to close
down some of this excess processing capacity and possibly also to
convert soma of it for processing fishery products for human consumption ;
 ---pagebreak---                                   - 3 -
Whereas     campaigns .- should   be   mounted "to influence market demand
in line with the changed supply situation , with particular reference
to species little known to consumers :
 Whereas the final cessation of fishing activities by fishing vessels
 and the temporary reduction in these activities cannot fail to affeot
 fishermen and to lead therefore to the adoption by Member States of
 measures to encourage fishermen to cease fishing and to provide
 compensation for temporary cessation ;
Whereas in view of the benefit to the Community of these socio-structural
measures it is appropriate that the Community should contribute'to their
cost ;     whereas it must be able to ascertain that the provisions
adopted by the Member States ai-e commensurate with the objectives to be
attained ;     whereas for this purpose there should be a procedure
whereby close cooperation is maintained between the Member States and
the Commission through the Standing Committee for the Fishing Industry
and the EAGGF Committee is consulted on financial matters as laid down
in Articles 11 to 15 of Council Regulation (EEC ) No 729/70 of
21 April 1970 on the financing of the common agricultural ' policy^ ;
Whereas this measure is of a specific character and may not therefore
be treated as a common measure in connection with the EAGGF , Guidance
Section -,
HAS ADOPTED THIS DIRECTIVE :
10J No L 94, 28.4.1970 , p. 13
 ---pagebreak---                          Article 1
1.  In order "to assist , in the fisheries sector , the adaptation of the
production capacity of the fleets concerned to the new fisheries
situation resulting from the establishment of 200-mile offshore
economic zones and the action taken to conserve and manage fish stocks ,
and in order to assist the adaptation of fish treatment and processing
capacity for purposes other than human consumption to the supply
situation resulting from the ahoveraentioned conservation measures ,
the Member States shall introduce a financial aid and consumer
promotion system.
2.  The system referred to in paragraph 1 shall apply until
31 December 1982 .
 ---pagebreak---                                  Article 2
The financial aid referred -to in Artiole 1 may "be granted to :
( a) producers , whether natural or legal persona , or their recognized
      organizations , operating one or more ships of a length "between
      perpendiculars greater than 24 m Bailing under the flag of a
      Member State and registered in the territory of the Community ;
("b ) natural or legal persons operating land-based undertakings the
      principal purpose of which is the treatment or processing of
      fishery products for non-foodstuff purposes .
 ---pagebreak---                                     - 6 -
                                  Article 3
The financial aid referred to in Article 1 may oe given ?
( a) - for measures to redeploy fishing operations towards the prospecting
       of new fishery resources ;
     -for measures relating to the temporary or permanent reduction of
       production capacity#
(h ) for measures to adapt fish treatment and processing capacity
       for purposes other than human consumption to catch possibilities ;
( c ) for information campaigns to promote the consumption of lesser-known
       species of fish .
 ---pagebreak---                                  - 7 -
          Title I : Measures for the redeployment and adatpation
                               of production capacity
                                Article 4-
 1.  The redeployment of fishing aotivity referred to in the first indent
of Article 3(a) may "be brought about in the following ways :
 (a) the reduction of excess capacity to fishing for species which are at
     present underexploited
 (b) the transfer of fishing vessels to take part in experimental fishing
     to seek non-exploited species or to locate new fishing grounds *
2*   The Member States will grant applicants , who will have recieved prior
approval from the competent authority , a redeployment premium to help
off-set the operating costs for the vessels so employed *
3*   The redeployment premium referred to in paragraph 2 shall be calculated ,
for each vessel , according to the number of days spent at sea , the
distance to the fishing grounds and the commercial characteristics of
the species sought , on the basis of the difference between the estimated
fishing costs and the probable value of the catches .
 ---pagebreak---                                Art ici 9
 1.   The temporary reduction in production capacity referred to in
•the second indent of Article 3(a) may consist , under the conditions
laid down in Article 6 , of temporary withdrawal from operation of
the vessels in question.
2.    Member States shall grant , for eaoh year of laying up , a laying^-up
premium of &% of the construction cost or purchase value of the vessel
plus the cost of any modernization undertaken.
3* For a vessel laid up for a period of less than a year , the premium
shall be calculated on the basis of the number of days laid up .
However , if the laying-up period is less than 250 days a coefficient
shall be applied to the premium to take account of the ratio between
the average number of days spent at sea and the number of days of the
calendar year .
4*    The coefficient referred to in paragraph 3 shall be 0.7
5.    The laying-up premium shall only be granted to vessels put into
commission after 1 January 1969 and if the periods of laying-up are
not less than:
– 90 days per year for vessels oovered by the plans for withdrawal
    from operation provided for in Article 6(a)
– 90 consecutive days per year for vessels for which the undertaking
   provided for in Article 6(b) is given.
 ---pagebreak---                               Article 6
The laying-up pranitm referred to in Article 5(2 ) shall "be granted
subjeot to the following conditions :
(a) in the case of recognized producer organizations :
    approval by the competent authority of the Member State concerned
    of plans for the withdrawal from operation of the vessels owned by
    their members in order to reduce fishing activity. Withdrawal
    plans must include the following information:
    - the name and technical specifications of the vessels concerned ;
    - the withdrawal programme for each vessel ;
    - the port or ports of registry during periods of temporary
      withdrawal ;
(b) in the case of other recipients :
    a written undertaking by the recipient that the fishing activity
    of one or more vessels owned by him will be suspended for a given
    period and that any change of port of registry while the vessel or
    vessels concerned are withdrawn from operation will be notified.
 ---pagebreak---                                  - 10 -
                                Article 7
 1.   Production capacity may "be reduced permanently , as provided for
in the second indent of Article 3(a), by means of the following
operations :
 (a) the sale of vessels for breaking ;
 (b) the assignment of vessels to purposes other than fishing;
 ( c) the sale of vessels for use in the waters of nonr-member countries *
2*    Subsequent to the issue of the certificate proving that the vessel
has been struok off the register of fishing vessels , the Member State
shall grant to the owner a final cessation premium oft
– 300 u.a * per gross registered ton in the case of operations provided
    for in paragraph 1 (a) ;
– $0 u.a . per gross registered ton in the case of operations provided
    for in paragraph 1(b);
– 300 u.a * per gross registered ton in the case of operations provided
    for in paragraph 1 ( o) •
3*    The final cessation premium shall be granted only for vessels which
have engaged in fishing for at least SO days during the twelve months
preceding the date when the vessel is struck off the register of
fishing vessels .
4.    Vessels which have been the subject of one of the operations
referred to in paragraph 1(b) and ( c) shall be permanently barred from
fishing in any Member State of the Community*
 ---pagebreak---                               Article 8
Where it is necessary to adapt the capacity for the non-foodstuffs
treatment Or processing of fishery products to the resources
available , Member States shall make arrangements to provide
financial aid for the operations referred to in Article 9 .
 ---pagebreak---                               Article 9
1 . The adaptation of -the oapacity referred to to in Article 8 may
be acheived in the following ways :
(a) "by the total and final closing down of Borne plants ;
(b) by converting the capacity concerned to activities other than the
    non-foodstuffs treatment or processing of fishery produots .
2 * Member States shall adopt appropriate measures to ensure that the
capacity to which the provisions of the preceding paragraph have been
applied is no longer used for the treatment or processing of fishery
products for non-foodstuffs purposes *
 ---pagebreak---                              Article 10
1 . For the action referred to in Article 9(a) the Member State shall
grant a closure premium fixed at a rate per tonne of
finished product and calculated on the basis of average production
over the three years prior to the closure .
2 * For the action referred to in Article 9(h) , the Member State shall
grant a conversion premium*  Such premium shall he granted for the
period during which the treatment and processing facilities are out
of use on aocount of the conversion work , to the extent of the
reduction in production recorded , hut not for longer than 12 months *
The reduction shall he calculated by reference to average production
over the three rears prior to the closure*
 ---pagebreak---                                - 14 -
                              Article 11
 Member   States  shall , " in i order to assist consumer choice , arrange
to publicize the change in supplies due to the scarcity of certain
well-known species of fi6h and to the increased fishing of lesser-known
species .
                                                          j
 ---pagebreak---                               Article 12
The publicity measures must :
- use the most appropriate media for the purpose ;
- take particular account , in the interests of "both consumers
  and fishermen , of the need to promote the marketing and
  consumption of lesser-known species and the consumption of products
  processed from those speoies *
 ---pagebreak--- Title II - Measures to "benefit fishermen
                                Article 13
Under the Conditions set out in Article 18 , the Community shall contribute
towards sohemes set up by Member States to benefit fishermen affected by
the measures provided for under Title 1 and who have been employed as
fishermen for a minimum period to be fixed .
 ---pagebreak--- Title III - General and financial provisions
                               Article 14
The Member States shall prepare programmes for the implementation of the
measures referred to in Title I and , if necessary , those referred to
in Title II .
 ---pagebreak---                                       - 18 -
                                      Article 15                                                j
                                                                                               i
                                                                                               I
1.   The Member States shall communicate to the Commission :            "                 •
                                                                                      :       i
- the programmes referred, to in Article 14 .                                                I
                                                                                             !
- the drafts of any laws , regulations or administrative provisions                      ■■■[
   which they propose adopting pursuant to thiB Directive ,                                 J
                                                                                            I'
                                                                                            I
                                                                                            S
- any provisions effectively implementing this Directive                                    J
   existing prior to the date of its entry into force .
                                                                   s                        !
2 . In communicating the programmes , draft laws , regulations and administrative
provisions and the provisions already in force referred to in
paragraph 1 , the Member States shall make clear the connection , at
regional level , between the measure in question and the economic
situation and the structural and social features of the fishing
industry .
3.   In the case of the programmes and drafts communicated in accordance with
para graph"!, the Ccmmisicn shall determine whether , having regard to the objectives
of this Directive and to the need for a proper connection between the
various measures , such drafts comply with the Directive and thus
satisfy the condition for financial participation by the Community. Within two month!
following such communication a decision on the matter shall be taken in                  !
accordance with the procedure laid down in Article 21 after consulting
with the EAGGP Committee on the financial aspects .                          "■' t
4>   The Member States shall communicate to the Commission the laws ,
regulations and adrainistative provisions referred to in paragraph 3                  .-
immediately on their adoption .
 ---pagebreak---                               Article 16
1,  The measures adopted "by the Member States may not receive
financial assistance from the Community unless the provisions relating
to them have been the eubjeot of a decision in accordance with Article
2.   Financial participation by the Community shall relate to the
eligible expenditure resulting from aid granted pursuant to decisions
taken after the date of entry into force of this Directive .
 ---pagebreak---                              - 20 -
                           Article 17
1.   Under the conditions set out in the following paragraph , the Community
shall reimburse to Member States the eligible expenditure incurred
pursuant to Title I *
2 . The financial participation of the Community shall amount to 50$
of eligible expenditure .
3.   The eligibility of the expenditure incurred in implementing the
measures referred to in Article 9 shall be limited to an amount of :
- 100 u.a . per tonne , in a single payment , for the closure premium
   referred to in Article 10(l );
- 5 u.a . per month and per tonne not produced for the conversion premium
   referred to in Article 10(2 ).                    -  -
4. Expenditure to implement the measures referred to . in Article 3(a)
in respect of vessels put into commission in the Community after
1 January 1978 shall not be eligible .
5 . The general conditions for a financial contribution by the Community
shall be adopted by the Council acting by a qualified majority on a
proposal from the Commission# The derailed rules of application , which
may include the fixing of a lower percentage , shall be adopted in
accordance with the prooedure referred to in Article 22 *
 ---pagebreak---                               Article 18
1.  Where Member States introduce schemes to encourage the early retirement
of fishermen aged 50-65 years who are affected by the final withdrawal from
operation of vessels , the Community shall contribute towards the cost of
these schemes within the limits of the appropriations entered for that
purpose in the Budget .
2.  Where Member States grant compensation for cessation of work to fishermen
from fishing vessels which are the subject of the operations provided for
in Article 5      "the permanent reduction provided for in Article 7 a«d
who are thereby forced temporarily into total unemployment and this
compensation may be added to other allowances provided under national
legislation , the Community shall contribute towards the cost of this
scheme within the limits of the appropriations entered for that purpose
in the Budget .
3.  The Community 's financial contribution shall not exceed 59$ of the
expenditure declared by the Member State .    The general conditions for a financial
contribution by the Community shall be adopted by the Council acting ly a
qualified majority on a proposal from the Commission .    The detailed rules
of application, which may inolude the fixing of a lower percentage , shall
be adopted in aooordance with the prooedure referred to in Article 22 .
 ---pagebreak---                                  - 22 -
                             Article 19
  1 . Applications for reimbursement shall relate to expenditure incurred
  over a calendar year by the Member States and shall "be submitted to the
  Commission before 1 September of the following year#
  2 . The Commission shall take a decision on these applications , on one
  or more occasions , in accordance with the procedure laid down in
  Article 7(l ) of Regulation (EEC) No 729/70.
   3 « Advances may be granted by the Commission .
   4. Detailed rules for the application of this Article shall be adopted
. in accordance with the procedure laid down in Article 13 of
   Regulation (EEC ) No 729/70 .
 ---pagebreak---                             Article 20
 1 . Tiri        cr Sia/tea m accordar) ce vdth nati or si ,crovision a 1-iid dovn \v  «/
1 ex * y regal avion or a^mrn i s'trat i vs action shall "take the me am ire g nenes?n.rv
to :
- satisfy themselves that operations financed "by the Community are actually
     Couried cut and are executed correctly ;
- prevent and deal with irregularities ;
- recover suras lost as a result of irregularities or a failure to keep
    the undertaking referred to in Article 6(b ).
                                                                       /
The Member States shall inform the Commission of the measures taken for
       I
those purposes and in particular of the state of the administrative and
judicial procedures .
2 . In the absence of recovery , the financial consequences of irregularities
shall "be borne lay the Community and the Member States in proportion to their
financial participation except in cases of negligence "by administrative
authorities or agencies of Member States .
The sums recovered shall "be paid to the paying departments or agencies
and deducted by them from the expenditure financed "by the Community
proportionately to the rate of Community financing.
3 . The Council , acting by a qualified majority on a proposal from
the Commission , shall lay down , as necessary, general rules for the
application of this Article *
 ---pagebreak---                                  - 24 -
                               Article 21
1.    Member States shall make available to the Commission all information
required and shall take all suitable measures to facilitate "the supervision
which the Commission may consider necessary to undertake within the
framework of the management of Community financing , including inspection
visits .
2.    Without prejudice to the supervision effected by Member States in
accordance with national provisions laid down by law , regulation or
administrative action and without prejudice to the provisions of Article 4
or to the provisions of Article 206 of the Treaty , or to any inspection
organized on the basis of Article 209(c ) of the Treaty , agents authorized
by the Commission to carry out inspection visits shall have access to
the books and all other documents relating to expenditure financed by
the Community under this Directive .     They may in particular check :
( a ) whether administrative practices are in accordance with Community
      rules j
(b ) whether the requisite supporting documents exist and tally with the
      operations financed by the Community ;
                                                          *
( o ) the conditions under which operations financed by the Community
      are carried out and checked .
The Commission shall give due notice before the inspection is carried
out to the Member State concerned or to the Member State on whose
territory it is to take place .     Agents of the Member State concerned
may take part in the inspection .
At the request of the Commission and with- the agreement of the Member
State , inspections or inquiries concerning the operations referred to
in this Directive shall be carried out by the competent authorities
of that Member State .    Agents of the Commission may also participate .
 ---pagebreak--- To make verification more effective "the Commission may , with the
agreement of the Member States concerned arrange for administrative
authorities of those States to participate in certain inspections or
inquiries .
 3 . The Council , acting "by a qualified majority on a proposal from
 the Commission , shall lay down as necessary , general rules for the
 application of this Article .
 ---pagebreak---                                 - 26 -
                            Article 22'
1.  Where the procedure laid down in this Article is to be followed ,
the Chairman of the Standing Committee for the Pishing Industry
shall refer the matter to the Committee either on his own initiative or
at the request of the representative of a Member State .
2.  The representative of the Commission shall submit a draft of the
measures to be taken .    The Committee shall deliver its Opinion on such
measures within a time limit to be set by the Chairman according to
the urgency of the questions under consideration .     An Opinion shall be
adopted by a majority of 41 votes , the votes of Member States being
weighted in accordance with Article 148(2 ) of the Treaty .    The
Chairman shall not vote .
                                          i
3*  The Commission shall adopt measures which shall apply immediately .
However , if these measures are not in accordance with the Opinion of
the Standing Committee for the Pishing Industry , they shall forthwith
be communicated by the Commission to the Council .     In that event the
Commission may defer application of the measures which it has adopted -
for not more than one month from the date of such communication .
                    •                                *         ■
The Council , acting by a qualified majority , may take a different
decision within one month .
                        «
 ---pagebreak--- The provision s      Article 40(2 ; of Financial Ttegulation JTo 73/9
3EC , 3a.ratocn nf 25 Api'il 1973 applicable to the general budget " of the
European Gomtnuriities and those of Regulation (ESC ) Uo 283/ 72
concerning irregularities and. the recovery of sums wrongly paid in
connection with the financing of the 'common agricultural policy and
                                                            2
the organization of an information system in this field , shall
apply .
10J No L 116 , 1.5*1973, p . 1 .
20J No L 36 . 10.2.1972 , p . 1 .
 ---pagebreak---                            Article 2'A
The Member States shall "bring into force the measures necessary in
order to comply with this Directive within 6 months of the date of
its notification .
Done at Brussels .                         For the Council
 ---pagebreak---                              Fi n    o z al est ira a t e
The Community high-sea fishing fleet contains about 2 500 vessels with a gn
of over 100 tonnes cut of a total tonnage of about 842 000 tonnes ( 1976 ).
Distribution among the Member States is as follows :
                             Total No                   Over 1 000 grt  Total grt
                                                        îfo       grt
  Belgium                           89                                     13 592
  Denmark                          358                     1      1 500    69 009
  France                           607                   30      48 114  201 718
  Germany                          151                   40      96 720  141 069
  Ireland                           27                     1      1 921     5 177
  Italy                            247                    21     31 856    91 822
  Netherlands                      389                     3      4 437    88 819
  United Kingdom                   630                   43      56 096   230 776
   Total                         2 498                 138      240 640   841 982
 The "breakdown by tonnage is given in Annex 1 .
 This proposal provides for three types of measure : _
 (a) Measures to encourage the redeployment of fishing activity and the
         temporary or definitive adjustment of the production captivities of
         high-sea fishing fleets .
  (b) Measures to encourage the adjustment of non-food treatment and
         processing capacities .
   ( c ) Social measures .                               •
   (d) Measures to encourage the consumption of lessei^-kncwn spec es
 ---pagebreak---                                  mm C mm
Measures referred to in ( a)
1.   Redeployment of fishing activity
It is difficult to make a valid estimate for this type of operation since the
redeployment premiums are fixed "by the Member States depending on the number
of days spent at sea in experimental fishing and the distance from the fishing
grounds and on the probable catch , which allows the relationship between
running costs and the probable value of the catch landed to be determined.
However , if redeployment of 2$ of the total tonnage per year is assumed , the
following calculation may be made :
- 2$ of total tonnage per year                       «• ) 16 800 grt
               corresponding to                         )            or
- Qfi of the total tonnage for three months per year » j 67 280 grt
- 2.5 tonnes of fish » average fishing capaoity per year for each gross
   registered tonne engaged in fishing.
- average value of fish caught » 400 u.a./t in the period preceding the
   experimental fishing.
- probable loss in value on new species if the catoh is identical -       to
   be compensated for.
CALCULATION
16 800 x 2.5 ■ 42 000 x 400 u.a. « 16 800 000 per year
Total cost of redeployment ■ 5 of 16 800 000 x 5 years ■ 42 000 000 u.a.
2.   Laying-up of vessels
It should be noted that the laying-up measures are mainly intended to compensate
for the reduction in the activity of vessels equipped for operations within
Community waters , about 2 000 in all .
As a result of conservation measures , these vessels will probably have to
reduce their fishing activity .   Some sectors (herring fisheries) already have .
                     f
 ---pagebreak--- to suspend "their activity wholly or in part for several months .
Assuming that laying-up for a period of 12 months could affect 15$ of the
total tonnage each year and since the aid will he calculated "by reference to
the "building cost or purchase value of the vessels concerned , which may he
put at an average of 2 000 u.a. per gross registered tonne ("building cost in
1970 ) , the following estimates may "be made :
- 15$ of total tonnage per year * 126 000 grt
- purchase value of vessels » 2 000 u.a. /t
CALCULATION
( 126 000 i 2 000 u.a. 1 8$ ) x 5 years * 100 800 000
Total cost of laying-up * 100 800 000 u.a.
3.    Final cessation of activity
It may "be noted that the measures providing for the final cessation of
activity "by the excess capacity of the hi^h-sea fishing fleetB will mainly
affect the deep-water vessels intended for fishing in the waters of non-
member countries .
Assuming that 20$ of the present total tonnage , or about 50$ of the total
tonnage of the fleet of 600 grt and over , is broken up over a period of
5 years , the following calculation may be made :
- 20$ of total tonnage over a period of 5 years = 168 000 grt
- average premium *
   (premium for breaking up or
   ( sale to non-member country
                                  60$! <*■ (premium for other use x 40$ )
                                        2
   « (300 1 60$) + ( 50 1 40$) - 200 u.a./t
CALCULATION
200 u.a. x 168 000 grt - 33 600 000 u.a .
Total cost of final cessation « 33 600 000 u.a.
 ---pagebreak---                                  - 4 -
Measures refarred to in (b )
As regards processing for non-food purposes it is likely that the conservation
me asures which will he adopted in order to encourage the replenishment of
threatened fish stocks will greatly reduce the profitability of this sector.
A period of adjustment will therefore "be necessary for converting and , where
necessary , closing down some of its present capacity .
However , since more species of low commercial value will "be available than
in the past bacause of the withdrawal of non-member countries * fleets from
Community fishing zones , conversion of the non-food processing sector may
not "be too extensive .
In this context , the following estimate must be taken as a maximum :
Assuming a total reduction over 5 yearB of 45$ of the present processing
capacity (350 000 tonnes of finished product ), to be obtained by the joint
effect of final cessation and the gradual conversion of surplus capacity ,
the following calculation may be made :
45 * 350 000 « 157 000 tonnes in 5 years .
( a) 20fo final cessation - 70 000 t/finished product in 5 years
(*>) 5$ per year x 5 years of gradual conversion - 87 500 t/finished product .
CALCULATION
( a)  70 000 x 100 u.a. » 7 000 000 u.a.
(b )  ( 17 250 x 12 months x 5 tx.a.) x 5 years » 10 500 000
                                                  17 500 000
Total cost of restructuring processing faotories = 17 500 000 u.a*
 ---pagebreak--- The measures contained, in this proposal concern the final cessation of
fishing "by fishermen aged at least 50 years who apply therefor , and
tlie maintenance of the income of fishermen temporarily unemployed as a
result of the laying–up or definitive withdrawal from operation of
high-sea fishing vessels .
(a)    Cessation of fiBhing
It may he estimated that early retirement annuities will "be granted to
2 500 fishermen , or 10$ of the total workforce in this sector ( 25 000
fishermen ).    The amount of the annuity will range "between 900 and
 1 200 u.a . , depending on the recipient * s marital status , the average
annuity working out at 1 125 u.a . ( on the "basis of 75$ married men and
25$ single ).     The total cost of these measures is therefore :
             2 5^0 x 1 125 x 10 years ( average length of pension ) «
                        28 125 000 u.a .
 ("b ) Inoome maintenance
About 15-20$ of the total workforce (4 400 men ) will "be entitled to
compensation for temporary cessation of fishing .
As the rules governing unemployment benefit vary according to Member
State , no estimate can be made of the total sum involved .
However , the difference between national unemployment benefit and
former income is probably in the region of 1 000 u.a . per man per year .
On this basis the total cost of these measures is :
          4 400 x 1 000 u.a . x 5 years » 22 000 000 u.a .
The total cost of measures under ( a ) and (b ) is therefore 28 125 000 +
22 000 000 u.a * » 50 125 000 u.a *. rounded to 50 000 000 u.a .
 ---pagebreak---                                         - 6 -
Measures referred to in ( cj for encouraging the sale of lesser-known species
 It should "be noted that the measures proposed , for publicity campaigns to
 encourage the sale of lessex^-known species , are limited to 191$ .
The need to promote increased consumer knowledge of the species which will
"be caught during the experimental redeployment of fishing activity will be
 felt most in the initial period of application of the Directive .
The financial estimate for this type of operation must be limited , on the
                                  1
 lines of previous examples , to setting aside a lump sum for the abovementioned
publicity campaigns.          J                         ..1        :
                          4 million units of account per year x 5 years - 20 M xua.
Summary of_t ot al_cost of_pro£0£ed measure s
 Redeployment of fishing activities               42 000 000
Laying-up of vessels                             100 800 000           '
Pinal cessation         • . ■                     33 600 000
Final reduction and conversion of
processing capacity                               17 500 000
Social measures     "                         . . 50 000 000 .
Consumer publicity campaigns                      20 000 000
                                                 263 900 000 u.a.
 Community reimbursement
  42  000 000 χ 50$  =   21   000   000                         ,
 100  800 000 χ 50$  =   50   400   000
  33  600 000 X 50$  =   16   800   000
  17  500 000 X 50$  =     8  750   000
   50 000 000 χ 50$  -   25   000   000
   20 000 000 χ 50$  -   10   000  000                               ·
                       131 950 000
The total cost to the Community may be rounded off at 132 million u.a.
  Council Regulation (EEC ) No 2930/74 on advertising and publicity campaigns
  designed to promote the consumption of meat# These campaigns saay cover the
  full period of application of the Directive , namely 5 years .
 ---pagebreak---                   FINANCIAL STATEMENT
                                                                       DATE: 18 October 1977
  1.    RELEVANT iAlJxitff HEADING CODE* Nev hcsdinr
t       TITLE OP MEASURE :
        LEGAL BASIS:
                                   ^ proposal for a Council Regulation on certain imaediate
                               Measures to adjust capacities in the fisheries sector
                               Articles 43 arid 209
  4.    OBJECTIVES S) s        Adjustmentof production capacities to new types of catch and
                               of processing capacities for non-food purposes -to the changed
                               supply situation. Measures to encourage consumption of
                               lesser-known Bpecies. Social Measures
  5. FINANCIAL IMPLICATIONS
                                      rR THE MARKETINa
                                            TEAR
                                                           CURHENT FINANCIAL
                                                                   TEAR
                                                                                  FOLLOWING FINANCIAL
                                                                                         TEAR
  5.0 EXPENDITURE
        - CHARGED TO THE EC                                                              (1979 )
          BUDGET ( REVENUES/                                                      20 Billion tt.t*
          INTERVENTIONS)
       - CHARCED TO NATIONAL
          AttHNISTR.
     . - CHARCED TO OTHER
          NATIONAL CROUPS
 5.1 RECEIPTS
   •   - OVJN RESOURCES OP
          THE EC
          (LEVIES/CUSTOMS
                  ixrriEs)
       - NATIONAL
                                    TEAR      1980                   1981      ' YTPÀI»    19®2
                                                            TEAR
 5.0.1 PLURLANNUAL PATTERN OF
                 EXPENDITURE             30- Billion u. a. 40 million u. a.      22 Billion u. a.
 5.1.1 PLURIANÎJUAL PATTERN 0F
                 RECEIPTS                                        1983
                                                           20 Billion u.a.
 5.2 METHOD OF CALCULATION         Calculation is difficult in the absence of draft laws,
       regulations or administrative provisions designed to implement this Directive.
       A provisional financial estimate drawn up in accordance with certain initial
       hypotheses is attached to this financial statement for guidance . The
       pluriannual pattern of expenditure takes account of the fact that expenditure,
       after an initial period lasting about a year , will reach a maximum in the second
       and third years , before dropping as fish stocks are reconstituted .
6.0 FINANCING POSSIBLE WITH CREDITS INSCRIBED IN RELEVANT CHAPTER OF
       CURREHT BUDGET?                                            *                   TES/NO
6.1 FINANCING POSSIBLE BT TRANSFER BETWEEN CHAPTERS OP CURRENT BUDGET?                YES/NO
6.2 NECESSITY FOR A SUPPLEMENTART BUDGET?                                             ÏES/N0
6.3 APPROPRIATIONS TO BE ENTERED! in 197$ Budget                                      YES/
                                    « ■
C0MMEBTS: