CELEX: 51997PC0723
Language: en
Date: 1998-01-07
Title: Proposal for a Council Regulation (EC) laying down the criteria and arrangements regarding Community structural assistance in the fisheries and aquaculture sector and the processing and marketing of its products (consolidated version)

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                      Brussels, 07.01.1998
                                                      C()M(97) 723 final
                                                      98/0008 (CNS)
                                       Proposal for a
                             COUNCIL REGULATION (EC)
laying down the criteria and arrangements regarding Community structural assistance in
  the fisheries and aquaculture sector and the processing and marketing of its products
                                   ^consolidated version^
                              (presented by the Commission)
 ---pagebreak---                              EXPLANATORY MEMORANDUM
 In the context of a people's Europe, the Commission attaches great importance to
 simplifying and clarifying Community law so as to make it clearer and more accessible
 to the ordinary citizen, thus giving him new opportunities and the chance to make use
 of the specific rights it gives him.
 This aim cannot be achieved so long as numerous provisions that have been amended
 several times, often quite substantially, remain scattered, so that they must be sought
 partly in the original instrument and partly in later amending ones. Considerable re-
 search work, comparing many different instruments, is thus needed to identify the
 current rules.
 For this reason a consolidation of rules that have frequently been amended is also
essential if Community law is to be clear and transparent.
On 1 April 1987 the Commission therefore decided to instruct its staff that all legis-
lative measures should be consolidated after no more than Ten amendments, stressing
that this was a minimum requirement and that departments should endeavour to con-
solidate at even shorter intervals the texts for which they were responsible, to ensure
that the Community rules were clear and readily understandable.
The Conclusions of the Presidency of the Edinburgh European Council (December
1992) confirmed this, stressing the importance of legislative consolidation as it offers
certainty as to the law applicable to a given matter at a given time.
It must be undertaken in full compliance with the normal Community legislative pro-
cedure.
Given that no changes of substance may be made to the instruments affected by legis-
lative consolidation. Parliament, the Council and the Commission have agreed, by an
interinstitutional agreement dated 20 December 1994, that an accelerated procedure
may be used for the fast-track adoption of codification instruments.
The purpose of this proposal (l) for legislative consolidation of Council Regulation
(EC) No 3699/93 of 21 December 1993, laying down the criteria and arrangements
regarding Community structural assistance in the fisheries and aquaculture sector and
the processing and marketing of its products, is to undertake official codification of
this type. The new regulation will supersede the various regulations incorporated in
it ( 2 ); their content is fully preserved, and they are brought together with onlv such
formal amendments as are required by the codification exercise itself.
This legislative consolidation proposal was drawn up on the basis of a preliminary
consolidation, in all the official languages, of Regulation (EC) No 3699/93 and the
instruments amending it, carried out by the Office for Official Publications of the
European Communities, by means of the data-processing system referred to in the
conclusions of the European Council meeting at Edinburgh. AJthough the articles
have been given new numbers, the old numbering has been retained in the margin for
ease of reference; the correlation between the old and new numbers is shown in a
table set out in Annex IV, Part A to the consolidated Regulation.
  (*) Entered in the legislative programme for 1997.
  ( 2 ) See Annex IV, Part B of this Proposal.
 ---pagebreak---                                                 PROPOSAL FOR A
                                    COUNCIL REGULATION (EC) No .J...
                                                          of ...
        laying down the criteria and arrangements regarding Community structural assistance
       in the fisheries and aquaculture sector and the processing and marketing of its products
        THE COUNCIL OF THE EUROPEAN UNION,
        Having regard to the Treaty establishing the European
        Community, and in particular Article 43 thereof,
        Having regard to the proposal from the Commission,
        Having regard to the opinion of the European Parlia-
        ment (!),
        Having regard to the opinion of the Economic and So-
        cial Committee ( 2 );
 1)     Whereas Council Regulation (EC) No 3699/93 of 21 De-
        cember 1993 laying down the criteria and arrangements
        regarding Community structural assistance in the fish-
        eries and aquaculture sector and the processing and mar-
         keting of its products (3) has been frequently and sub-
        stantially amended ( 4 ); whereas for reasons of clarity and
         rationality the said Regulation should be codified;
 2)     Whereas Council Regulation (EEC) No 2052/88 of 24                   3699/93
        June 1988 on the tasks of the Structural Funds and their            (adapted)
        effectiveness and on coordination of their activities be-
         tween themselves and with the operations of the Euro-
        pean Investment Bank and the other existing financial
         instruments ( 5 ) and Council Regulation (EEC) No
         4253/88 (6) laying down provisions for implementing Re-
         gulation No 2052/88 define the general objectives and
         tasks of the Structural Funds and the financial instru-
         ment for fisheries guidance, their organization, the assist-
         ance methods, programming and general organization of
         the aid provided by the Funds and the general financial
         arrangements;
        OJ No C....
( 23 )  OJ No C....
( )     OJNoL346, 31. 12. 1993, p. 1. Regulation as last amended by
        Regulation (EC) No 25/97(OJ No L 6,10. 1. 1997, p. 7).
( 54 )  See Annex IV, Part B.
(>      OJ No L 185,15.7.1988, p. 9. Regulation as last amended by the
        Act of Accession of Austria, Finland and Sweden.
(6>     OJ No L 374, 31.12.1988, p. 1. Regulation as last amended by
        Regulation (EC) No 3193/94 (OJ No L 337,24. 12. 1994, p. 11).
                                                                 3
 ---pagebreak---  3)   Whereas Council Regulation (EEC) No 3760/92 of 20              3699/93
      December 1992 establishing a Community system for
      fisheries and aquaculture (') lays down the objectives
     and general rules of the common policy; whereas the de-
     velopment of the Community fishing fleet must in par-
     ticular be restricted according to the decisions that the
     Council is called to take by virtue of Article 11; whereas
     it is for the Commission to translate these decisions into
     precise measures at the level of each Member State;
     whereas, furthermore, the provisions of Council Regula-
     tion (EEC) No 2847/93 of 12 October 1993 establishing
     a control system applicable to the common fisheries
     policy (2) must be respected;
 4)  Whereas Council Regulation (EEC) No 2080/93 of 20            3. (adapted)
     July 1993 laying down provisions for implementing Re-
     gulation (EEC) No 2052/88 as regards the financial in-
     strument of fisheries guidance ( 3 ), (FIFG) defines the
     specific tasks of Community structural aid measures in
     the fisheries and aquaculture sector and the industry
     processing and marketing its products, hereinafter re-
     ferred to as 'the sector'; whereas under Article 6 the.
     Council must decide on the terms and conditions of the
     contribution of the FIFG to adaptation measures of the
     structures of the sector;
 5)  Whereas the Council must lay down detailed rules for         4.
     the implementation of measures connected with the
     modification of the structures of the sector in order to
     ensure that FIFG assistance achieves the objectives as-
     signed to the structural policy of the sector within the
     overall framework of Community structural assistance
     and the common fisheries policy as a whole, which
     comes under the exclusive competence of the Commun-
     ity, and so that each Member State is in a position to
     manage structural assistance in the sector; whereas, in so
     far as such assistance is not limited to the granting of
     Community aid, it is appropriate in particular to inte-
     grate, in a coherent manner, the programming of the re-
     structuring of Community fishing fleets in the context of
     structural assistance as a whole;
 6)  Whereas promotion of products or forms of processing         2. 25/97
     should be encouraged in those cases where official rec-
     ognition of origin with reference to a specified geo-
     graphical zone is granted pursuant to Council Regulation
     (EEC) No 2081/92 of 14 July 1992 on the protection of
     geographical indications and designations of origin for
     agricultural products and foodstuffs ( 4 ); whereas the use
     of geographical references can be permitted only if such
     official recognition of origin has been granted;
t1) OJ No L 389, 31.12. 1992, p. 1. Regulation as last amended by
    the Act of Accession of Austria, Finland and Sweden.
(2) OJ No L 261,20.10.1993, p. 1. Regulation as last amended by
    Regulation (EC) No 686/97 (OJ No L 102, 19. 4. 1997, p. 1).
(3) OJ No L 193, 31. 7. 1993, p. 1.
(4) OJ No L 208, 27. 7. 1992, p. 1. Regulation as last amended by
    Regulation (EC) No 1068/97 (OJ No L 156,13. 6. 1997, p. 10).
                                                             4
 ---pagebreak---   7)  Whereas Article 7b of Council Regulation (EEC) No                25/97
      3759/92 of 17 December 1992 on the common organiz-               (adapted)
      ation of the market in fishery and aquaculture prod-
      ucts (*) provides for financial aid to producer organiz-
      ations implementing a plan to improve the quality and
      marketing of their products; whereas for reasons of legal
      and budgetary consistency, this Regulation should refer
      to this aid;
  8)  Whereas financial aid for FIFG in the case of temporary       4. 965/96
      cessation of activities, taking account of this type of in-      (adapted)
      tervention, must remain an exceptional measure; whereas
      it is therefore advisable to set a ceiling on the funds
      allocated to this measure, without prejudice to possible
      recourse, on a case-by-case basis, to the specific
      measures referred to in Article 3 of Regulation (EEC)
      No 2080/93;
  9)  Whereas the fishing industry is now undergoing far-              2719/95
      reaching changes in the context of a serious crisis;             (adapted)
      whereas the necessary adjustments to the industry en-
      tailed by the application of the common fisheries policy
      as laid down in Regulation (EEC) No 3760/92 are creat-
      ing a need for an extensive range of accompanying
      measures of a socio-economic nature;
10)   Whereas a range of socio-economic accompanying
      measures to assist enterprises and individuals in the fish-
      ing industry as well as areas dependent on fishing is al-
      ready available at Community level in the general con-
      text of the Structural Funds;
11)   Whereas these measures are not, however, sufficient to           (adapted)
      prevent the fishing industry from losing dynamic and
      skilled members through the reduction of fishing capac-
      ity; whereas appropriate measures should therefore be
      implemented at Community level, in particular to assist
      elderly fishermen;
12)   Whereas the provisions of the London Convention (ITC             1624/95
      69) were extended to all fishing vessels by Council Re-          (adapted)
      gulation (EEC) No 2930/86 of 22 September 1986 defin-
      ing characteristics of fishing vessels ( 2 ); whereas the im-
      plementation of the provisions of the said Convention
      will generalize, by 1 January 2004 at the latest, the use
      of gross tonnage as the unit of tonnage to all vessels of
      the fishing fleet of the European Union;
 (*) OJ No L 388, 31.12. 1992, p. 1. Regulation as last amended by
     Regulation (EC) No 3318/94 (OJ No L350,31.12.1994, p. 15).
 (2) OJ No L 274,25.9.1986, p. 1. Regulation amended by Regula-
     tion (EC) No 3259/94 (OJ No L 339, 29.12.1994, p. 11).
 ---pagebreak--- 13) Whereas there should be provision for a specific activity  1624/95
    threshold that renders a fishing vessel eligible for       (adapted)
    measures of permanent withdrawal as regards fishing
    vessels registered in the North Baltic ports, having re-
    gard to the special climatic conditions of the region
    which cause its water which is only slightly salty to
    freeze for a large part of the year,
14) Whereas national and Community rules are at the heart      965/96
    of a strengthening of the conditions controlling access to (adapted)
    fish resources, in particular by the introduction of sys-
    tems of fishing licences and permits; whereas those new
    restrictions on access are having the effect of increasing
    the value of vessels, in particular those more than 30
    years old; whereas this increase in value has made with-
    drawals of those fishing vessels more difficult to guaran-
    tee than in the past;
15) Whereas provision should be made to ensure that pref-
    erence is given to the withdrawal from the fleet of the
    oldest of the vessels; whereas the premiums should
    therefore be maintained at a sufficiently high level to
    guarantee the withdrawal of that category of vessels,
    HAS ADOPTED THIS REGULATION:
 ---pagebreak---                            Article J                          3699/93   Article 1
                                                              (adapted)
                             Scope
The financial instrument of fisheries guidance (FIFG) may,
under the conditions laid down in this Regulation, provide
assistance for the measures referred to in Titles II, III and
IV, within the fields covered by the common fisheries
policy as defined in Article 1 of Regulation (EEC) No
3760/92.
                            TITLE I
                        PROGRAMMING
                           Article 2                                    Article 2
                      General provisions
1. The measures referred to in Article 1 of this Regula-
tion shall be the subject of a two-stage programming pro-
cedure under the conditions laid down in Articles 3 and 4.
2. Provision for the restructuring of the Community's
fishing fleets shall be made in multiannual guidance pro-
grammes, as referred to in Article 5.
                           Article 3                                    Article 3
              Sectoral plans and aid applications
1. Each Member State shall present to the Commission          (adapted)
in the form of a single programme document, hereinafter
referred to as 'the document*:
—      a sectoral plan,
—      an aid application.
Each document shall cover a period of six years, the first
programming period beginning on 1 January 1994.
For the part of the programme period covered by a multi-
annual guidance programme already approved by the Com-
mission under Article 5 (2), the document shall be drawn
up in accordance with paragraph 2 of this Article.
For the remainder of the programme period not yet
covered by a multiannual guidance programme approved
by the Commission, the programme information given in
the document shall be purely indicative; it shall be
specified by Member States when the new multiannual
guidance programme is approved, in accordance with its
objectives.
The documents covering programme periods following the
 first period shall be submitted at least six months before
 the start of each period.
 ---pagebreak--- 2. Each sectoral plan may cover all of the fields referred     3699/93
to in Titles II, III and IV. It shall contain all the informa-
tion specified in Annex I. It shall be drawn up in accord-
ance with the objectives of the common fisheries policy
and the provisions of the multiannual guidance programme
referred to in Article 5.
Aid applications shall be drawn up in accordance with
Article 14 (1) and (2) of Regulation (EEC) No 4253/88.
They shall describe all the measures that are planned in
order to give effect to common measures and shall specify
the forms of assistance within the meaning of Article 5 of
Regulation (EEC) No 2052/88.
3. The document shall draw a distinction between in-
formation relating to Objective 1 regions and information
relating to other regions.
The information relating to Objective 1 regions shall be
covered by the programming referred to in Article 8 (7) of
Regulation (EEC) No 2052/88 and Article 5 (2) of Regula-
tion (EEC) No 4253/88.
                           Article 4                                   Article 4
                   Community programmes
1. The Commission shall examine the sectoral plans to
determine whether they are consistent with the tasks of the
FIFG as provided for in Article 1 of Regulation (EEC) No
2080/93 and with the provisions and policies referred to in
Articles 6 and 7 of Regulation (EEC) No 2052/88.
Aid applications shall be examined in accordance with
Article 14 (3) and (4) of Regulation (EEC) No 4253/88.
2. On the basis of the document referred to in Article 3
of this Regulation, within six months of receiving it, the
Commission shall adopt a single decision on a Community
programme for structural assistance in the sector.
The Commission's decision, taken in accordance with the
procedure laid down in Article 8 of Regulation (EEC) No
2080/93, shall be taken in the framework of the partner-
ship referred to in Article 4 (1) of Regulation (EEC) No
2052/88 and in agreement with the Member State
concerned.
The Commission's decision on a Community programme
shall be communicated to the Member State concerned
and published in the Official Journal of the European
Communities.
3. Community programmes shall be drawn up in ac-
cordance with the objectives of the common fisheries
policy and the provisions of the multiannual guidance
programmes referred to in Article 5. They may in particu-
lar, to this end, be revised in the event of major changes
and at the end of each programme period for the re-
structuring of the Community's fishing fleets.
 ---pagebreak---                            Article 5                         3699/93              Article 5
    Multiannual guidance programmes for fishing fleets
 1. For the purposes of this Regulation, a 'multiannual      (adapted)
guidance programme for the fishing fleet' shall mean a
series of objectives accompanied by a set of measures for
their realization, allowing for management of fishing effort
on a consistent, longer-terra basis.
2. On the basis of multiannual objectives and measures
for restructuring the fisheries sector as laid down by the
Council pursuant to Article 11 of Regulation (EEC) No
3760/92, the Commission shall, acting in accordance with
the procedure provided for in Article 18 of Regulation       1624/95 - Art. 1 (1)
(EEC1 No 3760/92. approve the multiannual guidance pro-
grammes for individual Member States.
3. The multiannual guidance programmes adopted for
the period from 1 January 1993 to 31 December 1996, as
referred to in Article 9 (1) of Regulation (EEC) No
2080/93, shall remain in effect until they expire.
                           Article 6                         3699/93              Article 6
       Monitoring multiannual guidance programmes
1. For the purpose of monitoring the implementation of       (adapted)
multiannual guidance programmes, Member States shall
transmit to the Commission, before 1 April each year, a
document reviewing the progress made with their multian-
nual guidance programme. Within three months of this
deadline the Commission shall forward an annual report to
the European Parliament and the Council on the imple-
mentation of multiannual guidance programmes throughout
the Community.
2. Member States shall transmit to the Commission
information on the monitoring of fishing effort by fleet
segment, particularly as regards the development of capa-
cities and the corresponding fishing activities, in accord-
ance with the procedures implemented by the Commission.
3. To this end the Commission shall operate a Com-
munity register of fishing vessels designed for use in man-
aging fishing effort.
4. The Commission shall adopt the rules relating to the
register referred to in paragraph 3 in accordance with the
procedure laid down in Article 18 of Regulation (EEC) No
3760/92.
5. At the request of the Member State concerned or the
Commission, or pursuant to provisions laid down in the
multiannual guidance programmes, any multiannual guid-
ance programme which has been approved may be re-
examined and, if necessary, revised.
 ---pagebreak--- 6. The Commission shall decide whether or not to ap-             3699/93
prove the revisions provided for in paragraph 5 of this
Article in accordance with the procedure laid down in
Article 18 of Regulation (EEC) No 3760/92.
7. For the implementation of this Article, Member Sta-
tes must comply in particular with Article 24 of Regulation
(EEC) No 2847/93.
                            TITLE II
      IMPLEMENTATION OF MULTIANNUAL GUIDANCE
           PROGRAMMES FOR FISHING FLEETS
                           Article 7                                       Article 7
                     Common provisions                         1 (adapted)
1. At the end of a multiannual guidance programme,
where, with regard to a given segment of a Member State's
fleet, the reductions in capacity financed by official aid
lead to overachieveraent of the objectives for that segment,
the new situation brought about solely as a result of that
aid may not be invoked to bring into service new capacity.
These provisions do not apply in the particular case of
small local coastal fishing fleets made up of vessels of
under 220 kW, for which fisheries quotas have not been set
at Community level.
For such fleets, the Member State may finance, by State
aids alone and within the limits of the premiums and ceil-
ings of the official aids referred to in 1.3 and 2.1 of Annex
III, the capacities corresponding to this excess.
2. Each year, for each fleet segment, Member States
shall ensure that aid for modernization and construction
does not result in an increase in fishing effort.
                            Article 8                                      Article g
                 Adjustment of Fishing effort
1. Member States shall take measures to adjust fishing
effort to achieve at least the objectives of the multiannual
guidance programmes referred to in Article 5.
Where necessary, Member States shall take measures to
stop vessels' fishing activities permanently or restrict them.
2. Measures to stop vessels' fishing activities permanent-
ly may include:
                                             10
 ---pagebreak--- —     scrapping,                                               3699/93
—     permanent transfer to a third country, provided such
      transfer is not likely to infringe international law or
      affect the conservation and management of marine
      resources,
—     permanent re-assignment of the vessel in question to
      uses other than fishing in Community waters.
For vessels of less than 25 gross registered tonnes (GRT)
or 27 gross tonnes (GT) only the scrapping of the vessel       1624/95 - Art. 1 (2)
may qualify for official aid within the meaning of this
Article.
Member States shall ensure that vessels concerned by such
measures are deleted from the registration lists for fishing
vessels and from the Community fishing vessel register.
They shall also ensure that deleted vessels are permanently
excluded from fishing in Community waters.
3. Measures to restrict fishing activities may include
restrictions on fishing days or days at sea authorized for a
specific period. Such measures may not give rise to any
State aid.
                           Article 9                                                Article 9
   Re-orientation of fishing activities — temporary joint
               ventures and joint enterprises
1. Member States may take measures to promote the
re-orientation of fishing activities by encouraging the crea-
tion of temporary joint ventures and/or joint enterprises.
2. For the purposes of this Regulation 'temporary joint
venture' means any association based on a contractual
agreement of limited duration between Community ship-
owners and physical or legal persons in one or more third
countries with which the Community maintains relations,
with the aim of jointly fishing for and exploiting the fishery
resources of the third country or countries and sharing the
costs, profits or losses of the economic activity jointly
undertaken, with a view to the priority supply of the
Community market.
The contractual agreement shall provide for the catching
and, where necessary, the processing and/or marketing of
those species covered, the provision of know-how and/or
the transfer of technology where linked to the said oper-
ations.
                                            11
 ---pagebreak--- 3. For the purposes of this Regulation 'joint enterprise'        3699/93
means any company regulated by private law comprising
one or more Community shipowners and one or more
partners in a third country, constituted in the framework of
formal relations between the Community and the third
country, with the aim of fishing for and possibly exploiting
fishery resources in the waters under the sovereignty and/
or jurisdiction of the third country, with a view to the
priority supply of the Community market.
4. Where necessary the Commission, acting in accord-
ance with the procedure referred to in Article 8 of Regula-
tion (EEC) No 2080/93, shall set conditions for imple-
menting this Article.
                          Article 10                                       Article 10
    Fleet renewal and modernization of fishing vessels
1. Member States may take such measures to promote               (adapted)
the construction of fishing vessels as comply with the
global annual intermediate objectives and the final objec-
tives by segment under their multiannual guidance pro-
gramme within the stated time limits.
Member States shall, when forwarding any pertinent aid
proposal, inform the Commission of provisions taken to
ensure that this condition is complied with.
2. Member States may take measures to promote the
modernization of fishing vessels. Such measures shall be
subject to the conditions referred to in paragraph 1 where
investments are likely to result in an increase in fishing
effort.
                           TITLE III
  INVESTMENT AID IN THE FIELDS OF AQUACULTURE, THE
   DEVELOPMENT OF COASTAL WATERS, FISHING PORT
      FACILITIES AND PROCESSING AND MARKETING
                          Article 11                                       Article 11
                             Scope
 1. Member States may, under the conditions specified in         (adapted)
Annex II, take measures to encourage capital investment in
the following fields:
—     aquaculture,
—     protection and development of marine resources in
      coastal waters, in particular by the installation of fixed
      or movable facilities to enclose protected underwater
      areas,
— fishing port facilities,
—     processing and marketing of fishery and aquaculture
      products.
                                             12
 ---pagebreak--- 2. In addition, Member States may take measures to            3699/93
encourage the devising and implementation of systems for
the improvement and control of quality, hygiene condi-
tions, statistical instruments and environmental impact, as
well as research and training initiatives in enterprises. The
relevant expenditure, with the exception of beneficiary
enterprises' operating costs, may be funded from the
FIFG, provided that it is directly linked to the investments
referred to in paragraph 1.
                           TITLE IV
                       OTHER MEASURES
                          Article 12                                              Article 12
    Measures to find and promote new market outlets
Member States may take measures in favour of finding and      (adapted)
promoting new market outlets for fishery and aquaculture
products, in particular:
—    operations associated with quality certification and
     product labelling,
—    promotion campaigns, including those highlighting
     quality issues,
—    consumer surveys,
—    projects to test consumer reactions,
—    organization of and participation in trade fairs and ex-
     hibitions,
—    organization of study and sales visits,
—    market studies, including those relating to the pros-
     pects for marketing Community products in third
     countries, and surveys,
—    campaigns improving marketing conditions,
—    sales advice and aids, services provided to wholesalers
     and retailers.
The above measures must not be based around commercial
brands nor make reference to particular countries or re-
gions except in specific cases where official recognition of  25/97 - A r t 1 (1)
origin with reference to a specified geographical zone for a
product or process is granted pursuant to Regulation
(EEC) No 2081/92. The reference may be used only from
the date on which the name has been entered on the regis-
ter provided for in Article 6 (31 of Regulation (EEC) No
2081/92.
                                            13
 ---pagebreak---                             Article 13                        3699/93               Article 13
              Operations by members of the trade              (adapted)
Member States may take measures to promote operations
carried out by members of the trade themselves and
regarded by the competent authorities in the Member
State as short-term operations of collective interest,
provided such operations serve to attain the objectives of
the common fisheries policy.
The measures referred to in this first subparagraph include
in particular aid to producer organizations within the
meaning of Articles 7 and 7b of Regulation (EEC) No           25/97 - Art. 1 (2)
3759/92.
                            Article 14                                              Article 14
                Temporary cessation of activities
Member States may take measures for the temporary
cessation of activities.
FIFG assistance may be used only to finance measures
intended to offset partially the loss of income suffered as a
result of a temporary cessation of fishing activities caused
by unforeseen and non-repetitive events resulting from
biological phenomena in particular.
This grant cannot exceed, for each calendar year and for      965/96 - Art. 1 (1)
each Member State, ECU 350 000 or 0,85 % of the funds
foreseen in the financial plan for each Member State for
the year concerned, whichever amount is the greater.
                            Article 15                        2719/95 - Art. 1 (1) Article 14a
              Measures of a socio-economic nature             (adapted)
1. For the purposes of this Article, "fisherman" shall
mean anyone engaging in his main occupation on board an
operational sea-going fishing vessel.
2. The Member States may take, for fishermen,
measures of a socio-economic nature associated with
restructuring of the Community fisheries sector within the
meaning of Article 11 of Regulation (EEC) No 3760/92.
3. Financial assistance from the FIFG may only be
granted for the following measures:
(a) part-financing of national early-retirement schemes for
      fishermen, provided that the following conditions are
      fulfilled:
      —      at the time of early retirement, the age of the
             beneficiaries of the measure must be not more
             than ten years from the legal retirement age for
             the purposes of the legislation in force in the
             Member State, or the beneficiaries must be aged
             at least 55,
                                            14
 ---pagebreak---       — the beneficiaries can show that they have worked        2719/95 Art. 1 (1)
            for at least 10 years as fishermen.
      However, contributions to the normal retirement
      scheme for fishermen during the period of early
      retirement shall not be eligible for financial assistance
      from the FIFG.
      In each Member State, for the entire programming
      period referred to in Article 3, the number of benefi-
      ciaries may not exceed the number of jobs eliminated
      on board fishing vessels as a result of those vessels
      permanently stopping fishing activities, within the
      meaning of Article 8 (2), or because of the perma-
      nent transfer of vessels to a third country in the con-
      text of the creation of a joint enterprise, within the
      meaning of Article 9 (3);
(b) granting individual compensatory payments to fisher-
      men, on the basis of an eligible cost limited to ECU
      7 000 per individual beneficiary, provided the vessel
     on which the beneficiaries were employed has been
      the object of measures permanently stopping its acti-
     vities, within the meaning of Article 8 (2), or perma-
      nently transferring it to a third country in the context
     of the creation of a joint enterprise, within the mean-
      ing of Article 9 (3).
Under no circumstances may any one fisherman accumu-
late the benefits of the two measures referred to in points
(a) and (b).
4. The Member States shall adopt the necessary provi-
sions to prohibit any one fisherman from accumulating
benefits from the two measures referred to in paragraph 3
(a) and (b). They shall also make the necessary arrange-
ments to ensure that the beneficiaries of the measure
referred to in paragraph 3 (a) permanently give up work
as fishermen and that the compensation referred to in
paragraph 3 (b) is refunded on a pro rata temporis basis
where the beneficiaries return to their work as fishermen
within a period of less than six months after the decision
to grant them the compensation.
5. Unless provisions to the contrary are adopted
according to the procedure provided for in Article 43 of
the Treaty, this Article shall automatically be repealed
when the first programming period referred to in Article 3
of this Regulation expires.
                                             15
 ---pagebreak---                           TITLE V                          3699/93
          GENERAL AND FINANCIAL PROVISIONS
                         Article 16                                              Article 15
   Compliance with the conditions governing assistance     (adapted)
1. Member States shall ensure that the special conditions
governing assistance listed in Annex II to this Regulation
are complied with.
2. When requesting payment of each annual aid instal-
ment, Member States shall certify that compliance with the
conditions governing assistance set out in this Regulation
has been verified.
3. Where the conditions referred to in paragraph 2 have
not been complied with, the Commission shall carry out a
suitable examination of the circumstances in the framework
of the partnership, in particular asking the Member State
or the authorities appointed by it for implementation of
the measure to submit their comments within a given
period.
Following that examination, the Commission may suspend,
reduce or cancel FIFG assistance in the area of assistance
concerned as defined in point 1 of Annex I if the exami-
nation confirms that the conditions referred to in para-
graph 2 have not been complied with.
                         Article 17                                              Article 16
               Scales and rates of assistance
1. The maximum amounts of assistance payable under         (adapted)
this Regulation and the limits on financial participation
from the Member States, beneficiaries and the Community
are listed in Annex III.
2. Amounts in ecus set by this Regulation shall be con-    25/97 - Art. 1 (3)
verted into national currency at the rate published in the
Official Journal of the European Communities, C series.
The conversion shall be made at the rate applicable on
1 January of the year of the Member State's decision to
grant the premium or aid.
3. Within the scope of this Regulation, Member States      3699/93
may introduce supplementary aid measures subject to
conditions or rules other than those laid down in this
Regulation, or covering a sum in excess of the maximum
amounts referred to in this Article, provided that they
comply with Articles 92, 93 and 94 of the Treaty.
4. From 1 January 2004 only reference to the GT unit        1624/95 - Art. 1 (3)
of tonnage shall be possible in this Regulation.
                                           16
 ---pagebreak---                           Article 18                           3699/93 ArticU
                    Budget commitments
 1. In the case of multiannual operations. Member States
shall forward to the Commission each year the information
required to permit commitment of the annual instalments
provided for in Article 20 of Regulation (EEC) No
4253/88.
2. Budgetary resources shall be committed in line with
the implementation stages set out in the decisions granting
assistance.
3.    Detailed rules for the application of this Article shall
be adopted by the Commission in accordance with the
procedure laid down in Article 8 of Regulation (EEC) No
2080/93.
                          Article 19                                   Article 18
           Procedures for the payment of assistance
1. Financial assistance shall be paid in accordance with
Article 21 of Regulation (EEC) No 4253/88 and in line
with the implementation stages and financial provisions set
out in the decision to grant assistance.
2. Applications for payment must be accompanied by
documents providing evidence of the progress made in
implementing the operation and any payments made by
the Community and national authorities to the bene-
ficiaries.
3. Detailed rules for the application of this Article shall
be adopted by the Commission in accordance with the
procedure laid down in Article 8 of Regulation (EEC) No
2080/93.
                          Article 20
                            Repeal
Regulation (EC) No 3699/93 is repealed.
The references to the above Regulation shall be construed
as references to this Regulation and should be read in ac-
cordance with the correlation table set out in Annex IV,
Part A.
                           Article 21
                        Entry into force
This Regulation shall enter into force on the date of its
publication in the Official Journal of the European Commu-
nities.
This Regulation shall be binding in its entirety and directly
 applicable in all Member States.
 Done at Brussels
                                           For the Council
                                            The President
                                            17
 ---pagebreak---                            ANNEX I                               3699/93 ANNEX I
      INDICATIVE CONTENTS OF SECTORAL PLANS
1.   Description of current situation broken down by
     area of assistance (*)
     —    Strengths and weaknesses.
     —    Summary of operations undertaken and impact
          of funds used in previous years.
     —    Needs of the sector.
2.   Strategy for adjustment of fishery structures
     —    General objectives under the common fisheries
          policy.
     —    Objectives specific to each area of assistance, .,
          quantified if possible.
     —    Anticipated impact (on employment, production,
          etc.).
3.   Means to attain the objectives
     —    Measures selected (legal, financial or other) in
          each area of assistance.
     —    Indicative financing schedule covering the entire
          programming period and listing the national and
          Community resources provided for each area of
          assistance.
     —    Indications of how the FIFG assistance is to be
          used (forms of assistance, etc.).
     —    Justification for Community assistance.
 (*) 'Area of assistance' means subsectors of the fishery sector
     whose problems can be grouped together, for example:
      — adjustment of fishing effort,
      — renewal and modernization of the fishing fleet,
      — aquaculture,
      — enclosed seawater areas,
      — fishing port facilities,
      — product processing and marketing,
      — product promotion.
                                             18
 ---pagebreak---                            ANNEX II                              3699/93              ANNEX III
        SPECIAL CONDITIONS AND CRITERIA FOR
                          ASSISTANCE
1.    Implementation of        multiannual      guidance    pro- (adapted)
     grammes (Title II)
1.1. Permanent withdrawal (Article 8 (2))
     (a)   Permanent withdrawal may concern only vessels
           which have carried out a fishing activity for at
           least 75 days at sea in each of the two periods of
           12 months preceding the date of request for per-
           manent withdrawal or, as the case may be, a
           fishing activity for at least 80 % of the number
           of days at sea permitted by current national re-
           gulations. In the Baltic Sea the number of seven-     1624/95 - Art. 1 (4)
           ty five davs shall be reduced to sixty davs for
           vessels registered in ports, situated north of paral-
           lel 59° 30- N.
     (b) Operations may concern only vessels more than
           10 years old.
1.2. Temporary joint ventures and joint enterprises (Ar-
     ticle 9)
     (a) Operations must satisfy the following conditions:
           —     they must involve vessels of more than 25
                 GRT or 27 gross tonnes (GT). registered in      1624/95 - Art. 1 (5)
                 a Community port, operating for more than
                 five years under the flag of a Community
                 Member State and technically suited to the
                 proposed fishing operations; however, a
                 minimum operating period of five years will
                 not be required of vessels registered in a
                 Community port between 1 January 1989
                 and 31 December 1990,
           —     the vessels in question must fly the flag of a
                 Member State throughout the duration of
                 the temporary joint venture, which must
                 consist of fishing activities lasting between
                 six months and one year,
           —     in the case of the founding of a joint enter-
                 prise, they must be accompanied by the per-
                 manent transfer of the vessels to the third
                 country concerned with no possibility of a
                  return to Community waters.
                                              19
 ---pagebreak---      (b) The financial assistance given to joint enterprise    3699/93
          projects may not be added to other Community
          aid granted under this Regulation or Regulations
          (EEC) No 2908/83 ( ^ or (EEC) No 4028/86.
          The assistance granted is to be reduced pro rata
          temporis by the amount previously received in
          the following cases:
          —     aid for construction during the 10 years pre-
                ceding the setting-up of the joint enterprise,
          —     aid for the modernization and/or allowance
                for a temporary joint venture during the
                five years preceding the setting-up of the
                joint enterprise.
1.3. Vessel construction (Article 10)
     (a) Vessels must be built to comply with the regula-
          tions and directives governing hygiene and safety
          and the Community provisions concerning the di-
          mension of vessels. They shall be entered in the
          appropriate segment of the Community register.
     (b) Financial assistance shall be granted by way of
          priority to those vessels using the most selective
          fishing gear and methods.
1.4. Vessel modernization (Article 10)
     (a) Investments should relate to:
          —     the rationalization of fishing operations, in
                particular by the use of more selective fish-
                ing gear and methods, and/or
          —      improvement of the quality of products
                caught and preserved on board, the use of
                better fishing and preserving techniques and
                 the implementation of legal and regulatory
                 provisions regarding health, and/or
          —      improvement of working conditions and
                 safety, and/or
          —      equipment on board vessels to monitor fish-
                 ing activities.
     (b) Operations may cover only vessels less than 30
          years old. This limit shall not apply where invest-
           ment relates to the improvement of working
          conditions and safety and/or equipment on board
          vessels to monitor fishing activities.
 f1) Council Regulation (EEC) No 2908/83 of 4 October 1983
      (OJ No L 290, 22. 10. 1983, p. 1).
                                            20
 ---pagebreak---      Investment in the areas referred to in Title III           3699/93
2.0. General
     (a)  Investments must:
          —     contribute to lasting economic benefits from
                the structural improvement in question,
          —     offer an adequate guarantee of technical
                and economic viability, in particular by
                avoiding the risk of creating surplus produc-
                tion capacity.
     (b) In all the spheres referred to in Title III, physi-
          cal investment intended to improve conditions of
          hygiene or human or animal health, to improve
          product quality or reduce pollution of the envi-
          ronment shall be eligible.
     (c)  Investment in the purchase of land, coverage of
          general expenses beyond 12 % of costs and ve-
          hicles for passenger transport shall not be eligi-
          ble.
2.1. Aquaculture
     Measures may involve physical investments:
     (a)  in the construction, equipping, expansion and
          modernization of aquaculture installations, such
          as:
          —     the construction, modernization and acquisi-
                tion of buildings,
          —     works concerning the development or im-
                provement of water circulation in aquacul-
                ture enterprises,
          —     the acquisition and installation of new plant
                and machinery intended exclusively for
                aquaculture production, including service
                vessels and equipment concerned with data
                processing and data transmission;
     (b) concerning projects intended to demonstrate, on
          a scale approaching that of normal productive in-
          vestments, the technical and economic viability of
          farming species not yet commercially exploited in
           the aquaculture sector or innovative farming
           techniques, provided that they are based on suc-
           cessful research work.
2.2. Development of coastal waters
     Investments should meet the following conditions:
      (a)  they must include scientific monitoring of the
           operation for at least five years, in particular the
           evaluation and momtoring of the development of
           marine resources in the waters concerned;
                                            21
 ---pagebreak---       (b) they must be carried out by public institutions,      3699/93
          recognized producer organizations or bodies de-
          signated for that purpose by the competent au-
          thorities of the Member State concerned.
2.3. Fishing port facilities
      (a) Eligible investments shall relate in particular to
          installations and equipment:
          —     to improve the conditions under which fish-
                ery products are landed, handled and stored
                in ports,
          —     to support fishing vessel activities (provision
                of fuel, ice and water, maintenance and re-
                pair of vessels),
          —     to improve jetties with a view to improving
                safety during the landing or loading of
               products.
     (b) Priority is to be given to investments:
          —     of interest to all fishermen using a port,
          —     contributing to the general development of
                the port and to the improvement of services
                offered to fishermen.
2.4. Processing and marketing
      (a) Eligible investments shall relate in particular to:
          —     the construction and acquisition of buildings
                and installations,
          —     the acquisition of new equipment and instal-
                lations needed for the processing and mar-
                keting of fishery and aquaculture products
                between the time of landing and the end-
                product stage (including in particular data-
                processing and data-transmission equip-
                ment),
          —     the application of new technologies in-
                tended in particular to improve competitive-
                ness and increase value added.
      (b) Investments shall not be eligible for assistance
          where they concern:
          — fishery and aquaculture products intended
                 to be used and processed for purposes other
                 than human consumption, with the excep-
                 tion of investments exclusively for the hand-
                 ling, processing and marketing of fishery
                 and aquaculture product wastes,
           —     the retail trade.
                                            22
 ---pagebreak--- Promotion (Article 12)                                 3699/93
(a) Eligible expenditure shall cover in particular:
— expenditure by advertising agencies and other
    providers of services involved in the preparation
    and implementation of promotion campaigns,
— the purchase or hire of advertising space and the
    creation of slogans and labels for the duration of
    promotion campaigns,
— expenditure on publishing, external staff, prem-
    ises and vehicles required for the campaigns.
(b) Priority is to be given to:
    — campaigns to encourage the sale of surplus
         or underexploited species,
    — campaigns of a collective nature,
    — operations to develop a quality policy for
         fishery and aquaculture products.
(c) The beneficiary's operating costs (staff, equip-
    ment, vehicles, etc.) shall not be eligible.
                                     23
 ---pagebreak---                              ANNEX 111                                 3699/93              ANNEX IV
          SCALES AND RATES OF ASSISTANCE                               (adapted)
1.   Scales of        assistance   relating    to    fishing    fleets 1624/95 - Art. 1 (6)
     (Title II)
1.1. Permanent withdrawal and joint enterprises (Articles              (adapted)
     8 (2) and 9 (3); Annex II, 1.1 and 1.2)
                              TABLE 1
                                          Maximum amount of
          Class of vessel by gross     premium for a 15-year-old
        registered tonnage (GRT)             vessel (in ecus)
              0 <     25                6 215/GRT
            25 <      50                5 085/GRT +        28 250
            50 < 100                    4 520/GRT +        56 500
           100 < 400                    2 260/GRT + 282 500
          400 and over                  1 130/GRT + 734 500
                            TABLE 2 (•)
                                          Maximum amount of
           Class of vessel (GT)        premium for a 15-year-old
                                             vessel (in ecus)
               0,2 <     10               8 130/GT +         1 200
              10    <    25               4 100/GT +       41 500
              25    < 100                 3 520/GT +       56 000
             100    < 300                 2 348/GT + 173 200
             300    < 500                 1 912/GT + 304 000
             500 and over                 1 045/GT + 737 500
     (a) The premiums for scrapping of a vessel for set-
            ting up joint enterprises paid to beneficiaries
            may not exceed the following amounts:
            —     15-year-old vessels: see Tables 1 and 2
                  above,
            —    vessels less than 15 years old: scale from
                  Tables 1 and 2 increased by 1,5 % per year
                  less than 15,
            —     vessels more than 15 years old: scale from
                  Tables 1 and 2 decreased by 1,5 % per year
                  over 15 and up to 30 years old, the age be-          965/96 - Art. 1 (2)
                  yond which premiums are limited to the
                  amount for vessels 30 years old.
 (*) Vessels longer than 24 metres between perpendiculars may
      only benefit from the premiums in Table 2 or 4.
                                                24
 ---pagebreak---      (b) Premiums for the permanent transfer of a vessel       1624/95 - Art. 1 (6)
           to a third country or for permanent re-assign-
           ment, in Community waters, to uses other than
           fishing paid to beneficiaries, may not exceed the
           maximum amounts for the scrapping premiums
           referred to in (a) above, less 50 %.
1.2  Temporary cessation of fishing activities and temporary   (adapted)
    joint ventures (Articles 14 and 9 (2)); Annex II, 1.2)
     The laying-up premiums (for temporary cessation)
     and cooperation premiums (for temporary joint ven-
     tures) paid to beneficiaries may not exceed the scales
     set out in Tables 3 and 4 below.
                             TABLE 3
                                       Maximum amount of
         Class of vessel by gross       premium per vessel
       registered tonnage (GRT)              (ecu/day)
               0 <       25            4,52/GRT +          20
              25 <       50            4,30/GRT +          25
              50 <       70            3,50/GRT +          65
              70 < 100                 3,12/GRT +          88
             100 < 200                 2,74/GRT +         120
            200 < 300                  2,36/GRT +         177
            300 < 500                  2,05/GRT +         254
             500 < 1000                1,76/GRT +         372
          1 000 < 1 500                1,50/GRT +         565
          1500 < 2 000                 1,34/GRT +         764
          2 000 < 2 500                1,23/GRT +         956
          2 500 and over               1,15/GRT + 1137
                           TABLE 4 {*
                                       Maximum amount of
           Class of vessel (GT)     premium per vessel per day
                                        for a vessel (in ecus)
               0 <        10             5.2 /GT +         20
              10 <        25             4.3 /GT +         30
              25 <        50             3,2 /GT +         55
              50 <      100              2,5 /GT +         90
             100 <      250              2.0 /GT + 140
             250 <      500              1,5 /GT + 265
             500 < 1 500                 1.1 /GT + 465
          1500 < 2 500                   0,9 /GT + 765
          2 500 and over                 0,67/GT + 1 340
 (*) Vessels longer than 24 metres between perpendiculars may
      only benefit from the premiums in Table 2 or 4.
                                              25
 ---pagebreak--- 1.3. Construction aid (Article 10; Annex II, 1.3)              1624/95 - Art. 1 (6)
                                                               (adapted)
     The eligible expenditure for aid for the construction
     of fishing vessels may not exceed the scales in Tables
      1 and 2 above, increased by 37,5 %. However, for
     vessels with a steel or glass fibre hull, the coefficient
     of increase is 92,5 %.
1.4. Modernization aid (Article 10; Annex II, 1.4)
     The eligible expenditure for aid for the modernization
     of fishing vessels may not exceed 50 % of the eligible
     costs for construction aid referred to in 1.3 above.
2.   Participation rates                                       3699/93
     For all the operations referred to in Titles II, III and
     IV, the restrictions on Community participation (A),
     total State participation (national, regional and oth-
     ers) by the Member State concerned (B) and, where
     applicable, participation by private beneficiaries (C)
     shall be subject to the following conditions, expressed
     as a percentage of eligible costs:
2.1. Investments in enterprises
     Group 1: construction and modernization of vessels,
                  aquaculture;
     Group 2: other investments and measures with fi-
                  nancial participation by private beneficia-
                  ries.
                          TABLE 5
                              Group 1            Group 2
       Objective 1           A < 50 %           A < 50 %
       regions
                             B >     5%         B >    5%
                             C > 40 %           C > 25 %
       Other regions         A < 30 %           A < 30 %
                             B >     5%         B >    5%
                             C > 60 %           C > 50 %
2.2. Other measures: scrapping premiums, temporary cessa-
      tion premiums, temporary joint ventures, joint enter-
      prises and investments and measures financed exclu-
      sively by the Community and the national, regional or
      other authorities of the Member States concerned, in-     2719/95 - Art. 1 (2)
      cluding the measures referred to in Article 15 (3).
                                           26
 ---pagebreak---                     TABLE 6                  3699/93
                                             (adapted)
Objective 1 regions         50 % < A < 75 %
                                    B > 25 %
Other regions               25 % < A < 50 %
                                    B > 50 %
                                 27
 ---pagebreak---                                                    ANNEX IV
                                                     Part A
                                               CORRELATION TABLE
Regulation 3699/93                                       Present Regulation
Article 1                                                Article 1
Article 2                                                Article 2
Article 3 (1), 1st to 4th subparagraphs                  Article 3 (1), 1ST to 4th subparagraphs
Article 3 (1), 5th subparagraph (up to semi-colon)
Article 3(1), 5th subparagraph (after semi-colon)        Article 3 (1), 5th subparagraph
Article 4                                                Article 4
Article 5(1)                                             Article 5(1)
Article 5 (2)                                            Article 5 (2)
Article 5 (3)                                            Article 5 (3)
Article 5 (4)
Article 6                                                Article 6
Article 7                                                Article 7
Article 8                                                Article 8
Article 9                                                Article 9
Article 10(1)                                            Article 10(1)
Article 10 (2), 1st subparagraph                         Article 10 (2)
Article 10 (2), 2nd subparagraph
Article 11                                               Article 11
Article 12                                               Article 12
Article 13                                                Article 13
Article 14                                                Article 14
Article 14a                                               Article 15
Article 15                                                Article 16
Article 16(1)                                             Article 17(1)
Article 16 (1) a                                          Article 17 (2)
Article 16 (2)                                            Article 17 (3)
Article 16 (3)                                            Article 17 (4)
Article 17                                                Article 18
Article 18                                                Article 19
                                                          Article 20
                                                          Article 21
Annex I                                                   Annex I
Annex II
Annex III                                                 Annex II
                                                       28
 ---pagebreak--- Regulation 3699/93          Present Regulation
Annex IV, 1                 Annex III, 1
Annex IV, 1.1 Table 1       AnnexIII, 1.1 Table 1
Annex IV, 1.1 Table la      Annex III, 1.1 Table 2
Annex IV, 1.1 (a) and (b)   AnnexIII, 1.1 (a) and (b)
Annex IV, 1.2 Table 2       AnnexIII, 1.2Table 3
Annex IV, 1.2 Table 2a      AnnexIII, 1.2 Table 4
Annex IV, 1.3 and 1.4       Annex III, 1.3 and 1.4
Annex IV, 2                 Annex III, 2
Annex IV, 2.1 Table 3       AnnexIII, 2.1 Table 5
Annex IV, 2.1 Table 4       Annex III, 2.1 Table 6
                            Annex IV
                          29
 ---pagebreak---                                                    Part B
                             Regulations amending Regulation (EEC) No 3699/93
                                                                                 Official Journal
                                                                             No      page          date
Council Regulation (EC) No 1624/95 of 29 June 1995                         L 155        1         6. 7.1995
Council Regulation (EC) No 2719/95 of 20 November 1995                     L283         3       25.11.1995
Council Regulation (EC) No 965/96 of 28 May 1996                           L 131        1         1. 6.1996
Council Regulation (EC) No 25/97 of 20 December 1996                       L6           7        10.1.1997
                                                     30
 ---pagebreak---                                                                   ISSN 0254-1475
                                                           COM(97) 723 final
                                             DOCUMENTS
EN                                                               03 04 10
                                    Catalogue number : CB-CO-97-744-EN-C
                                                             ISBN 92-78-29822-0
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