CELEX: 51978PC0247
Language: en
Date: 1978-06-08
Title: Amendment to the proposal for a Directive on certain immediate measures for adjustment in the fisheries sector (Doc. COM(77) 543 final of 21 October 1977)#Amended proposal for a Council Regulation (EEC) on a common interim measure for restructuring the inshore fishing industry (COM/75/574 final of 14 November 1975) (submitted to the Council by the Commission pursuant to the second paragraph of Article 149 of the EEC Treaty)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (78) 247
Vol. 1978/0080
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 ---pagebreak---         COMMISSION OF THE EUROPEAN COMMUNITIES
                                                             COM(78)247 final
                                                             Brussels , 8 June 1978
                                Amendment to the proposal for a Directive
                               /
                  on certain immediate measures for adjustment in the fisheries
                  sector ( Doc . COM(77 ) 543 final of 21 October 1977 )
                             Amended proposal for a Council Regulation (EEC )
                  on a common interim measure for restructuring the inshore fishing
                                industry ( COM/ 75/ 574 final of 14 November 1975)
                            ( submitted to the Council by the Commission pursuant
                              to the second paragraph of Article 149 of the EEC
/S'y""          A                                 Treaty)
       i                 »o
>;!       • .
              -        y*
         COM(78 ) 247 final
 ---pagebreak---                         EXPLANATORY MEMORANDUM
Subject :    Amended Commission proposals on immediate measures for adjustment
             in the fisheries sector ( C0M(77)543 final of 21 October 1977 ) and
             on a programme for restructuring the non-industrial inshore
             fishing industry ( COM / 75 / 574 final of 14 November 1975 )
             In January 1978 the Commission sent the Council a draft Resolution
on the common structural policy in the fisheries sector .        The object of this
Resolution was to obtain an undertaking from the Council on the subject at
the time when the Council was also requested to adopt a package of proposals
on the future internal fishing arrangmeents .        Particular attention was
requested for, the restructuring and possible development of fishing and of
inshore fishing in particular , and for the possible development of aquaculture ,"
whilst the Council was also invited to undertake / 'the examination of the proposal
for a Directive on certain immediate measures for adjustment in the fisheries
sector most affected by the difficulties arising from the international
          »»                    .       .                                     «
situation .   The draft Resolution also requested the Council to adopt a
                         II
common interim measure to provide aid from the Guidance Section of the
                                                II
EAGGF during 1978 for investment projects relating to the purchase or
construction of fishing vessels and to aquaculture in regions where the
development of fisheries may be envisaged "
                                                                           II
             Since then the Commission has placed before the Council the
                                       H
proposal for common interim action just mentioned .        Moreover the delay
in obtaining a decision from the Council on the future internal arrangements
for fisheries has modified the situation substantially .        The Commission
accordingly thinks it right to put the two proposals in question forward
now for approval by the Council so that they may be examined as part of
the package of fisheries problems with which the Council is required to deal .
 ---pagebreak---          The Commission has therefore made certain adjustments to the
above mentioned proposals , substantially on account of the changes in
the situation in the fisheries sector which have come about since 28
November 1975 , when the proposal on inshore fisheries was put before
the Council , and of the need , resulting from that situation , to propose
measures to reduce investment .
         For these reasons it seemed appropriate to harmonize the
provisions of the two proposals and in particular to bring up to date
the proposal covering inshore fisheries , in accordance with the
Council 's wish C1 ), as well as to avoid the overlaps and gaps which
may occur between two such proposals which            cover , in part , the same
ground , while taking account as far as possible of the observations
made during the Council discussions .
         This is the background to the package of adjustments proposed .
These are aimed at making a clear distinction between on the one hand
the provisions designed to facilitate the adjustment of certain
production and processing resources to the new situation of relative
shortage , by encouraging temporary or permanent disinvestment and by
proposing related social measures as well as,on the other hand
provisions intended to promote productive investments in the inshore
fishing sector and in aquaculture .
( 1 ) Cf. Doc R / 2830 / 77 ( AGRI 751 ) ( Fin 735 ) - 22 November 1977
 ---pagebreak---             This distinction has resulted in an increase    in the economic and
social coverage of the Directive on immediate measures for adjustment and ,
accordingly , the withdrawal of some provisions from the proposal on inshore
fishing , uhilst limiting the general scope of that proposal .
            With respect to the financial aspects , the increase in scope
of the Directive involves an increase in prospective expenditure of some
20 million EUA .  This is offset by a reduction in the estimated expenditure
on inshore fisheries of 18 million EUA .
 ---pagebreak--- I.    Amendment to the proposal for a Directive on certain immediate
     measures for adjustment in the fisheries sector ( Doc . C0M(77 ) 543 final
     of 21 October 1977 )
              During the discussion in the Council ( R / 2952 / 77 ( AGRI 783 ) ( Fin 759 ),
the scope of this proposal for a Directive was , at the request of several
delegations , extended very substantially to cover all vessels between 12 and
24 m in length , provided , however , that any financial aid granted was subject
to conditions to be determined by the Standing Committee for the Fishing
Industry .
             The object of broadening the scope of the Directive in this way
was to make it possible for producers operating vessels of less than 24 m and
equal to or longer than 12 m and for the crews of these vessels to benefit as
appropriate from the provisions on disinvestment and on social matters pro­
vided for in the Commission 's initial proposal which was originally limited
to vessels longer than 24 m .
             However , it is felt , firstly , that the economic and social
consequences of this provision , and its budgetary implications , could be
substantial in view of the number of vessels involved ( 1 ) and , secondly ,
that it is desirable to differentiate between the various measures , some
of which are scarcely applicable to certain types of vessel .          The object of
the present amendments to the text proposed by the Commission is accordingly
to comply with the wishes expressed in earlier discussions in respect of
certain types of vessel excluded from the original proposal , and to set
these amendments in a coherent economic and legal context .
( 1 ) More than 9.000 vessels could now fall within the scope of the directive
      in place of slightly more than 2.000 as originally envisaged .
 ---pagebreak---                                                                          5.
It is therefore proposed to amend Articles 2 , 4, 5 , 7 and 18 of the text
as it stands after the discussions in the Council .
Amendments to articles 2 , 4 , 5 , 7 and 18
             The proposed amendments to these 5 articles extend the scope of
the provisions on temporary or permanent withdrawal of vessels from operation ,
as desired by the Council , and differentiate this increase in scope in
terms of considerations specific to each situation .
             For purpose it is proposed to define the extent of each of the
provisions specifically rather than to lay down a general principle for
applying the Directive as a whole .
             The reason for this approach is that it seems very difficult in
practice to extend measures for adaptation of production potential or for
temporary withdrawal from service to vessels of low tonnage and small size .
             With regard to the redeployment measures provided for in Article 4 ,
it is difficult to see how they could be applied to vessels of less than
24 m or less than 130 grt , of which there are very many ( 1 ), since ( the
text of article 4 is quite clear on this point ) redeployment is really aimed
at vessels of a substantial size, adequate to carry out experimental work
on underfished ' species or to prospect for new fishing grounds which are
usually far from the home port .
( 1 ) Whereas the Community has some 2.000 vessels over 100 grt , there are
      more than 7.000 between 25 and 100 grt .
 ---pagebreak---            The question of supervision of such a large number of vessels of
small size is also a delicate one to say the least .
            For these reasons , the Commission feels that the scope of Article 4
should be restricted to vessels of over 24 m in length or of a tonnage
greater than 130 grt .
           With regard to the temporary reduction in production capacity
referred to in Article 5 , on the other hand , although it might still be
difficult to extend the scope of such a measure to all vessels of 12m length or
25 grt or over for reasons simi lar to those just given ( doubt as to whether the measure
is appropriate for smaller vessels , checking difficulties owing to the
substantial number of these vessels ), it would nevertheless be logical
to make this provision available to the majority of fishing vessels opera­
ting at a distance from the coast since they are       likely to be more seriously
affected by Community measuresfor restricting catches .
           The Commission feels that this objective should be attained by
extending the scope of Article 5 to cover vessels of over 18 m or 50 grt .
           Finally , in order to comply with the wish expressed in the Council ,
the measure laid down in Article 7 on permanent reduction in production
capacities should be extended to all vessels of not less than 12 m or 25 grt .
This measure should make it easier to restructure the inshore fishing fleet ,
long overdue for lack of capital on the part of the owners .
 ---pagebreak---                           Amendment to the proposal for a Directive
                  on certain immediate measures to adjust capacities in
                       the fisheries sector ( C0MC77 ) 543 final of 21.10.77 )
Article 2 - Paragraph 1
Replace point a ) by :
         • " a ) producers , whether natural or legal persons , or their
                  recognized organizations , operating one or more vessels
                  flying the flag of one of the Member States , registered
                  in the territory of the Community and whose characteristics
                  shall be   specifically defined in the appropriate provisions
                  of this Directive .
Article 4
Replace the first sentence of paragraph 1 by :
             " The redeployment of fishing activity referred to in the first
               indent of Article 3 ( a ) for vessels of a length between perpen­
               diculars of 24 metres or more , or whose tonnage is 130 gross
               registered tons or more may be brought about in the following
              ways :"
Article 5
Replace the first paragraph by the following sentence :
             "The temporary reduction in production capacity referred to
                in the second indent of Article 3(a ) shall be brought about , urder
              the conditions laid down in Article 6 , by the temporary withdrawal
               from operation of vessels whose length between perpendiculars is
               18 metres or more or whose tonnage is 50 gross registered tons or
              more ."
 ---pagebreak---                                                                             8.
Article 7
Replace the first sentence of paragraph 1 by :
             " Production capacity shall be reduced permanent ly , as provided
                in the second indent of Article 3(a ),      for vessels whose
               length between perpendiculars is 12 metres or more and whose
               tonnage is 25 gross registered tons or more , by means of the
               following operations :"
Article 18
Replace paragraph 2 by :
             " 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 and the permanent reduction
               provided for in Article 7 and who are thereby forced temporarily
               into total unemployment and this compensation is added / where
               appropriate , to the other allowances provided under national
                leai slation , the Community shall contribute towards the cost of
                such measures within the limits of the appropriations entered
               for that purpose in the Budget . "( 1 )
( 1 ) Modification requested by the European Parliament and accepted
      by the Commission ( see Doc . Council 1524 / 77 - Ass . 942 of 21.12.77 ) p. 6 .
 ---pagebreak---                                                                           9.
                 Amendment to the proposal for a Directive
                  on certain immediate measures to adjust
                    capacities in the fisheries sector
                           Financial assessment
            The object of this financial assessment is to assess the cost
of the proposed amendment to the proposal for a Directive . It therefore
only concerns four measures since the others have not been amended .
I. Temporary withdrawal of vessel from operation ( Article 5 )
            The proposed amendment extends the scope of this measure to all
vessels of not less than 18 m or not less than 50 grt . Since the corresponding
measure in the initial proposal applied to all vessels of over 24 m ( between
perpendiculars ) the cost to be assessed is that for application of the measure
to the newly-included class of vessels between 18 and 24 m ( or between 50
and 130 grt )/ commissioned since 1 January 1977 .
            A recent estimate shows that some 850 vessles fall in this category,
of an overall tonnage of some 75.000 grt .
            If one assumes that temporary withdrawal from operation will apply
to some 15 % of this overall tonnage for a period of twelve months and that
the construction cost or present value of the vessles can be assessed on
average at 2.000 EUA per gross registered ton      ( construction cost in 1970),
the following estimate may be made :
            15 % of the overall tonnage per year : 11.250 grt , or over five
            years
            ( 11.250 x 2.000 x 8 % ) x 5 years = 9.000.000 EUA .
            Total cost of the proposed amendment : 9.000.000 EUA
            Total cost to the Community :             4.500.000 EUA
 ---pagebreak---                                                                         10 .
II . Permanent withdrawal of vessels from operation ( Article 7 )
              Whereas in the initial proposal this measure applied only to
vessels of more than 24 m , the amendment extends the provision to cover the
group of vessels between 12 and 24 m ( or from 25 to 130 grt ) representing
a total of some 360.000 grt .
              Assuming that permanent withdrawal from fishing will affect
some 20 % of this tonnage for a period of five years and that the average
premium to be paid will be 200 EUA / grt ( 60 % premium for breaking up or
for sale to non-member countries ; 40 % for putting vessels to uses other
than fishing ( 1)),the following estimate of cost can be made :
Calculation
Total cost of the proposed amendment
              200 EUA x 70.000 = 14 million EUA
Cost to the Community : 7 million EUA
( 1 ) 0r ( 300 x 60 % ) + ( 50 x 40 % ) = 200 EUA / grt
 ---pagebreak--- III . Early retirement ( Article 18 § 1 )
            The proposed amendment to Article 7 automatically extends the
arrangements for encouraging retirement from fishing , provided for in
Article 18 § 1 , to fishermen aged more than fifty years sailing on vessels
of not less than 12 but less than 24 m length , while those sailing on larger
vessels already fall within the scope of the original provision .
            The number of fishermen thereby covered may be estimated at 2.300 .
If one assumes that half of them could take advantage of this provision , the
following estimate may be made on the basis of an average grant of 1.125 EUA
            Total cost of the proposed amendment ( ten years pre-pension )
                1.150 x 1.125 x 10 = 13 million EUA ( rounded off )
            Cost to the Community : 6.5 million EUA .
 ---pagebreak---                                                                          12 .
IV . Income maintenance for fishermen ( Article 18 § 2 )
            Since the provisions of Article 5 on temporary withdrawal of
vessels from operation has been extended to the group of vessels between
18 and 24 m ( Chapter I ), crews sailing on vessels of this category who
satisfy the conditions of Article 5 therefore qualify for the compensation
provided for in Article 18 § 2 , under the conditions there laid down .
The number concerned may be estimated at 5.000 .
            If one assumes , as previously , that this measure could come
into play for about 15 % of those numbers and that the difference between
previous incomes and national unemployment benefit is 1.000 EUA per year
per fisherman , the total cost of the proposed amendment would , over five yea
be :
            1.000 x 750 x 5    =  3.750.000 EUA
Cost to the Community : 1.875.000 EUA ( rounded off to 2 million EUA ).
Summary : Cost to the Community of the proposed amendments
           Million EUA
I.          4.5
II .        7.0
III .       6.5
IV .        2.0
Total      20.0
 ---pagebreak---                                                                                                                    13.
                     FINANCIAL              STATEMENT
                                                                                    MTB • 3 May 1978
     i . BUDCCT LINS coricuuJEB I     Article 870
    2. ACTION I       Immediate measures to adjust capacities
    3. LECAL BASIS T      Articles 43 and 209
    4. OBJECTIVES I        Extension of the scope of the proposal for a Directive
                           C0M(77 ) 543 of 21.10.1977
    5. FINANCIAL COIFSEQULNCE
   5.0 EXPENDITURE
                                               I TOR TUB KARKETINO YEAH CURRBIT FINANCIAL TEAR
                                                                               I    1          • FOLLCWINO_|^NAHCIAL TM |
         -CLLAROED TO THE EC BUDCBT
          ( ROUNIS/INTERVENTI OHS )                                                                     3 MEUA             I
         -CHARCED TO NATIONAL AIWINISTR.
         –CHARCED TO OTHER NATIONAL CROUPS                                                                             :
   5.1 RECEIPTS                                                                                                            I
         –OWN RESOURCES OF T!!E EC
          ( LEVIES/CUSTOTS DUTIES )
         -NATI0MAL
                                                                        |                                               J
                                                TEAR  ... 1980
                                                 1MJI ••••••••••••••«     TSAR   1981            TIAR
                                                                                                 IMJI    1982
                                                                                                      •••••••••••
   5.0.1 PLURIA-'JNUAL PATTERN OP EXPEJFDITURE MEUA        7.4                   4.4                      3.4
   5.1.1 PLURI ANNUAL PATTERN OF RECEIPTS                                         Year 1983       1.8
                                                Tntfi     ; ?U MFIIA
   5»2 METHOD OF CALCULATION        See the financial assessment attached to the proposal ..
         The proposed pluriannual pattern is based on the following assumptions :
                                              1979         1980       1981       1982      1983
         Temporary withdrawal                 10 %         25 %        20 %      15 % ,     5.% of overall tonnage
         Permanent withdrawal                   4 7.        6 %           4 %     4 %     . 2 % = 20%       "
         Early reti rement                     10 %        50 %        20 %      10 7. ■   10.%    ( 100% )
         Maintaining incomes-                  15 %        30 %        25 %      20 %      10 %    ( 100% )
  6.0 FINANCING POSSIBLE NITH CREDITS INSCRIBED IN RELEVANT CHAPTER OF CURRENT BUDGET T                     Mt/K'O
                                                                                                                         I
  6.1 FINANCING POSSIBLE BY TRANSFER B2TA'J2M CHAPTERS OF CUR3E.VT BUDGET 1
& 6.2 NECESSITY FOR A SUPPLEMENTARY BUDCCT ?
r – ., –                                             ,           .                                          rss/m
  contons «
 ---pagebreak--- II .      Amended proposal foraCouncil Regulation ( EEC )
     a common interim measure for restructuring the inshore fishing
     industry ( COM / 75 / 574 final of 14 November 1975 )
             The amendments to this proposal fulfil the twofold objective
of harmonization and simplification : harmonization in respect of the
provisions and the enlarged scope of the proposed Directive ; simplification
of the operating mechanism and the procedure for the common measure proposed
for inshore fishing .
             The inclusion in the proposal for a Directive of provisions
to adjust production potential to the present situation of relative
scarcity ( by means of redeployment , temporary or permanent disinvestment
and appropriate social measures ) means that the common inshore fishing
measure is limited to a single objective : promoting production investments
for fleets with certain types of vessel , for aquaculture and for further
professional training .       The provisions dealing at economic level with the
sale of vessels and in a social context with early retirement ( Articles 10
and 11 of the original proposal ) have therefore been withdrawn .
             Furthermore , since the publication in February 1977 of Regulation
n° 355 / 77 on common measures to improve the conditions under which agricul­
tural products are processed and marketed , which applies to the fisheries
sector , the measures concerning processing in the original text were no
longer necessary in this proposal and have therefore been removed .
             Apart from these amendments , the operating mechanism of the
common action has also been simplified by removing the " development measures "
in the procedure for assessing eligibility of projects for EAGGF financing .
Only the " specific programmes ", whose content has been reduced compared
with the multinannual regional programmes originally provided for ,
 ---pagebreak---                                                                             15 .
while retaining the same objectives as those programmes , have been
retained , as well as the "projects " in order to ensure economic correlation
of all the proposed investments .
             It should also be pointed out that this proposal remains essen­
tially , in respect of the provisions on investments in the fleet and in
aquaculture , similar to the original proposal approved by the European
Parliament and the Economic and Social Committee and takes into account
the opinion delivered by these two Institutions and of the remarks made
within the Council ( 1 ).
( 1 ) Council Docuemnt S / 347 / 76 ( CSA 77 ) and S / 688 / 76 ( CSA 121 )
                                                                                 /
 ---pagebreak---                                                                          16 .
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
and in particular Article 43 thereof ,
Having regard to the proposal from the Commission,
Having regard to the Opinion of the European Parliament , (1 )
Having regard to the Opinion of the Economic and Social Committee ( 2 )
Whereas Council Regulation ( EEC ) N° 101 / 76 of 19 January 1976 laying down
a common structural policy for the fishing industry ( 3 ), provides that
common measures may be decided upon for the attainment of the objectives
mentioned in Article 9(l ) thereof in so far as they relate to the objectives
set out in Article 39(1 )( a) of the Treaty ; whereas these common measures
may be financed by the Guidance Section of the European Agricultural Guidance
and Guarantee Fund by virtue of Article 1(3) of Council Regulation ( EEC )
No 729/70 of 21 April 1970 on the financing of the common agricultural
policy ( 4), as last amended by Regulation ( EEC ) No 2788/72 ( 5 );
Whereas action to restructure the inshore fishing sector is necessary within the
common fisheries policy in order to resolve the sector 's growing difficulties
which are mainly     of a structural nature ;
( 1 ) 0J n° C
( 2 ) 0J n° C
( 3 ) 0J n° L 20, 28.1.1976 , p.19
( 4 ) 0J n° L 94, 28.4.1970 , p.13
( 5 ) 0J n° L 295 , 30.12.1972, p.l
 ---pagebreak---                                                                         17 .
Whereas these difficulties cause a fall in income for undertakings , which
are often family businesses , and prevent appropriate technical and economical
renewal of the means of production and ancillary equipment ;
Whereas the development of aquaculture may help improve supplies of fishery
products for Member States of the Community ; whereas this common measure should
therefore also include the encouragement of this activity ;
Whereas , it may be appropriate that the Fund also participate in projects
for the further training of fishermen, so that the investments to which
the Fund contributes may be used efficiently;
Whereas , so as to ensure that the production activities of the undertakings
in the sector are restructured or developed on a technically and economically
sound basis , participation by the Fund should be subiect to the prior approval
by the Commission of one or more . specific programmes submitted to it by the
Member State concerned; whereas these programmes should enable the Commission
to assess the structural situation in the areas which they cover and the planned
scope of the structural policy of each Member State including the production
objectives and the means to be employed to achieve them ;
Whereas , during the first years of the common measure it should be possible, in
order to allow time for programmes to be drawn up, to finance projeots which
do not fall within them ;
Whereas , in order to qualify for aid from the Fund, equipment must conform to
certain technical characteristics and safety standards so that in particular,
the structural rationalization may be a lasting one and the living and
working conditions of those employed in the sector may be improved;
                                                                      ■ ■ ■/• ■ •
 ---pagebreak---  Whereas the provision by the Fund of a capital subsidy not exceeding
 25 % of the value of the investment would , in general , be an appropriate
 contribution thereto ; whereas , however , where projects cover a technically
 and economically coordinated complex of investments which may enable the
programme to be carried out more quickly , the contribution from the
Fund may amount to 30$ ;
 Whereas Greenland , Ireland , Northern Ireland and the Mezzogiorno are in a
 special situation because of their retarded economic and social development ,
 their financing difficulties and their location on the periphery
of the Community : whereas useful economic initiatives cannot be encouraged
 in those regions without a specially intensive effort and whereas Fund
 participation in thsse regions should consequently be allowed to amount to 50$
 Whereas , in order to ensure a balance between the financial participation
of the Community and that of the Member State , a minimum participation by the
 latter should be laid down ;
 Whereas , in order to ensure that beneficiaries observe the conditions
 imposed when aid from the Fund is qranted, an effective control procedure
 should be provided for with the possibility of suspending , reducing
or discontinuing the aid from the Fund ;
 Whereas a Drocedure for approval of the programmes and projects should be
 provided for to ensure close cooperation between the Member States
 and the Commission within the Standing Committee for the Fishing Industry
 and , on the financial aspects , within the Fund Committee referred to in
 Article /I1 of Regulation ( EEC ) No 729 / 70,
 HAS ADOPTED THIS REGULATION
 ---pagebreak---                                                                         19 .
                          ARTICLE 1
1 . In order to promote the necessary structural changes within the guidelines
      of the common fisheries policy and to enable the objectives set out .
     in Article 9 of Regulation (EEC) No 101/76 to "be achieved , a common
     measure shall be undertaken to restructure and develop the inshore
     fishing industry and to develop aquaculture .
2 . All the measures provided for in this Regulation shall constitute a
     common measure within the meaning of Article 6 (l ) of Regulation
     (EEC) No 729/70.
3 . The Commission may , in accordance with the provisions of Titles III
     and IV , grant aid for the common measure , by financing projects which
     are included in specific programmes and which satisfy the conditions
     of Article 5 » through the Guidance Section of the European Agricultural
     Guidance and Guarantee Fund , hereinafter referred to as "the Fund".
 ---pagebreak---                                                                        20 .
                           ARTICLE 2
For the purposes of this Regulation :
- " specific programme s" , hereinafter referred to as "programmes ", shall mean
    a set of objectives together with a statement of the means for achieving
    them , designed to develop and restructure inshore fishing and to develop
    aquaculture , in one or more Member States .
- "project" shall mean any project concerning
             - the purchase , construction or modernization of inshore fishing
               vessels
             - the construction , equipment or modernization of aqu culture
               installations for rearing   fish , crustaceans and molluscs
             - the provision of further training for the operators
               concerned insofar provided that the need for such training
               results from the structural changes effected "by the programme .
 ---pagebreak---                                                                       21 .
Title I : SPECIFIC PROGRAMMES
                                 ARTICLE 3
1 . Member States or the agencies appointed by them for the purpose
    shall draw up programmes based on the factors listed in the Annex .
    These points shall be sent to the Commission through the Member State
    concerned.
2 . The Commission shall examine whether , having regard to the production
    potentialf the measures for the conservation and management of fish stocks ,
    the demand for the product conoerned and the guidelines of the common
     fisheries policy , the programmes constitute a suitable, framework for
     projects which may qualify for financial support from the Community .
3 . Within six months of      notification of each programme a decision shall
    be taken on its approval , after consultation of the Fund Committee on
    the financial aspects , in accordance with the procedure provided for
    in Article 16.
 ---pagebreak---                                                                        22 .
Title II - PROJECTS
                                ARTICLE 4
1 . Pro jects shall :
    ( a) "be included in the programme ;
    (b ) offer a satisfactory assurance that they will be profitable ;
    ( c) contribute to the lasting eoonomic effect of structural
          improvement aimed at by the programmes .
2 . Until 31 December 1980 , projects may qualify for aid from the Fund ,
    even though no programmes may    have been approved .
 ---pagebreak---                                                                       23 .
                          ARTICLE 5
Equipment covered by a project shall satisfy the following conditions :
1 . Fishing vessels :
    ( a) trawlers , purse-seiners and multi-purpose vessels shall :
              ν
         - have a length measured between perpendiculars of between 12 and 24
           metres inclusive or a tonnage of between 25 and 130 gross registered
           tons inclusive
         - be fitted with the necessary equipment for fishing and for crew
           safety •
         - comply with the safety standards for fishing vessels .
    (b ) fishing vessels using gear other than trawl or purse-seins shall :
         - have a length           between perpendiculars of between 6 and
           12 metres inclusive ,
         - comply with the safety standards for fishing vessels .
2 . Aquaculture installations
    - shall have an adequate capacity to ensure sustained commercial operation
    - in the case of mussel culture , shall be provided with adequate purifi­
      cation plant for treating the products before marketing, except where
      mussel culture is carried out in waters which comply with national or
       Community quality standards .
 ---pagebreak---                                                                    24.
                         ARTICLE 6
Projects shall "be carried, out by natural or legal persons who satisfy
       the following conditions :
1 * In respect of the fishing sector
     - In the case of natural persons, they shall have "been engaged in
       fishing activities for at least five years t shall have drawn and "be
        drawing at least half their income from these activities and shall have
        devoted and be devoting at least half their total working
       time to them.
    - In the case of legal persons , at least of/o of their total
       turnover shall have related to fishing activities during the five
       years preceding that which the project is submitted .
2 . In respect of acruaculture
    They shall show a significant experience in the fields of fish ,
    crustacean , or mollusc rearing ,
3 . In respect of vocational retraining
    They shall be a recognized producer organization, a producer cooperative
    or an agency appointed    for that purpose by the competent authority of
    the Member State concerned.
 ---pagebreak---                                                                        ; 25 .
Title III - PROCEDURE FOR THE EXAMINATION OP PROJECTS
                              ARTICLE    7
1 . Applications for aid from the Fund shall be submitted through the
    Member State concerned before 1 May.
2 . The Commission shall take decisions twice yearly on the applications
    for aid which have been submitted .    Its decisions shall be taken not
    later than 30 June and 31 December.
    Decisions taken during the first half of a year shall be limited to
    applications for aid submitted by 31 December of the previous • year.
    Applications for aid submitted between 1 January and 30 April may only
    be considered during the second half of the same year#
3 . To qualify for aid from the Fund , a project shall have been approved
    by the Member State concerned.
4. The particulars to be given in the applications and the form
    in which they are to be submitted shall be determined in accordance with
    the procedure laid down in Article 16 , after consultation of the Fund
    Committee on the financial aspects .
 ---pagebreak---                                                                       26 .
                        ARTICLE   8
1 . The Commission shall , when assessing the projects , take account of
     the following criteria :
   ( a) production policy , in relation to the retirements of the system
        for the conservation and management of fishery resources within
        the Community ;
   (b ) the search of new outlets through the catching or rearing of
        certain species of fish ;
   ( c) the employment situation;
   (d) the working conditions and, in particular, the safety of the workers
        concerned ;
   (e ) the participation "by producer organizations in the execution of the
        project ;
   ( f) the alleviation of the intervention mechanisms provided for in the
        common organization of the market , through a better adaptation of
        catch capacity to market requirements ;
   (g) the requirement for environmental protection;
   (h) the interests of consumers .
2 . The grant of aid from the Fund shall not alter the conditions of competition
     in a manner incompatible with the principles set out in the relevant
     provisions of the Treaty.
 ---pagebreak---                                                                  27 .
                      ARTICLE  9
A decision on aid from the Fund shall be taken in accordanoe with the
procedure laid down in Article 16 , after consultation of the Fund
Committee on the financial aspects .
The Member State concerned and the beneficiary shall be notified of
the aid decision.
 ---pagebreak---                                                                      28 .
                             ARTICLE 10
1 . In taking its decision on a project the Commission shall take
    particular account    of the allocation to that project of any
    direct or indirect investment aid other than that provided for
    in this Regulation.  The Member State concerned shall , for this pur­
    pose inform the Commission of any such aid.
2 . Projects which fall within the soope of this Regulation may not
    qualify for Community aid under other common measures within the
    meaning of Article 6 (l ) of Regulation (EEC ) No 729/70.
 ---pagebreak---                                                                      29 .
Title IV - FINANCIAL AND GENERAL PROVISIONS
                            ARTICLE 11
1 . The proposed duration of the common measure shall be four years from
    1 January 1979 *
2 . Before 31 December 1982 the detailed rules of this Regulation shall "be
    re-examined by the Council on a proposal from the Commission.
3 . The estimated total cost of the common measure to the Fund  shall
    be 100 million European Units of Account *
 ---pagebreak---                                                                       30 .
                           ARTICLE 12
1 . Aid from the Fund shall take the form of capital subsidies ,
    granted in one or more     instalments .
2 . For any given project :
    - the aid , from      the Fund shall not exceed 25 $ of the total
       investment ,
    - the beneficiary shall contribute at least 5C$ of the total
       investment .
    However , aid granted by the Fund may amount to 30% for a project
    covering an economically and technically coordinated complex of
    material investments for all or part of the geographical area covered by the
    programme , for restructuring or developing the inshore fishing
    industry or for carrying out pilot schemes in aquaculture .
3 . By way of derogation from paragraph 2 , in Greenland , Ireland, Northern
    Ireland and in the Mezzogiorno :
    - aid from the Fund may amount to 5&f0
    - the beneficiary shall contribute at least 2% ,
4# The financial participation by the Member State shall be at least 5)>•
 ---pagebreak---                                                                      31 .
                           Article 13
1 . Aid from the Fund shall be granted to natural or legal persons
    or groups thereof bearing the ultimate financial responsibility
    for carrying out the project .
    Payments in respect of aid from the Fund shall be made by agencies
    appointed   for this purpose by the Member State concerned .
2 . Throughout the period in which aid is being provided by the Fund ,
    the department or agency appointed for this purpose by the Member
    State shall send to the Commission on request all supporting
    documents and all documents showing that the financial or other
    conditions imposed for each project are satisfied . The Commission
    may , if necessary , make an inspection visit .
    After consulting the Fund Committee on the financial aspects , the
    Commission may decide to suspend , reduce or discontinue aid from
    the Fund , in accordance with the procedure laid down in Article 16 ,
    - if the project is not carried out as laid down or
    - if certain conditions imposed are not satisfied or
    - if the benecificiary , contrary to the particulars given in his
      application and repeated in the decision granting aid , has not ,
      within two years from the date of notification of that decision ,
      begun the work and if he has not , before the end of this period ,
      supplied satisfactory assurances that the projeot will he carried out .
    The decision shall be notified to the Member State concerned and to
    the beneficiary .
    The Commission shall take steps to recover any sums unduly paid .
 ---pagebreak---                                                                        32 .
3 . Without prejudice to Article 6(5 ) of the Financial Regulation
    of 25 April 1973 applicable to the general budget of the
                        1
    European Communities , as last amended by the Financial
    Regulation of 21 December 1976 , any appropriations made
    available by a decision taken   under the second
    subparagraph of paragraph 2 or because
    the beneficiary has abandoned the project or reduced "the investment
    provided for in the decision granting aid , may be used to
    finance other projects .
1 ) OJ n° L 116 of 1.5.1973 , p. 1
2 ) OJ n° L 362 of 31.12.1976 , p. 52
 ---pagebreak---                                                                        33 .
                        Article 14
1 . An application for aid from the Fund submitted to the Commission but
    not accepted for lack of funds may ,, with the consent of the applicant , "be
    carried forward to the following financial year by the Member State
    concerned . Applications to carry forward shall be submitted, to
    the Commission within thirty days of the date on which the Member
    State received notification of the result of the procedure provided
    for in Article 16 .   An application for aid may only be carried
    forward once .
2 . An application for aid from the Fund put before the Commission
    pursuant to Council Regulation ( EEC ) No     on a common interim
    measure for restructuring the inshore fishing industry ^, which was
    not accepted for lack of funds , may be taken into consideration
    within the framework of and subject to the conditions of this Regulation *
  ^ 'OJ No L     ,       197 , p.
          \
 ---pagebreak---                                                                        34 .
                       Article 15
1 . For each project aided from the Fund , the beneficiary shall send
    to the Commission , through the Member State , a report showing the
    financial results of the project .   This report shall "be submitted
    within the time limit fixed "by the Commission in its decision
    to grant aid .
2 . If the beneficiary does not comply with the requirement laid down in
    paragraph 1 , the Commission may , after giving notice , decide to
    reconsider , in whole or in part , its decision to grant aid in
    accordance with the procedure laid down in Article 16 and after
    consultation of the Fund Committee on the financial aspects .     The
    decision shall be notified to the Member State concerned and to
    the beneficiary .  The Commission shall take steps to recover all
    or part of the sums paid .
3 . Detailed rules for the application of this Article , in particular
    in respect of the details which the report referred to in paragraph
    1 are to contain , shall he adopted in accordance with the procedure
    laid down in Article 16 , after consultation   of the Fund Committee
    on the financial aspects .
 ---pagebreak---                                                                     35 .
                       Article 16
1 . Where the procedure Laid down in this Article is to be followed ,
    the Chairman shall refer the matter to the Standing Committee for
    the Fishing Industry either at 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 matter .  Opinions shall be adopted
    by a majority of forty-one votes , the votes of the Member States
    being weighted as laid down in Article 148(2 ) of the Treaty .  The
    Chairman shall not vote .
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   their application 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---                   Article 17
The first decisions to grant aid under this Regulation
shall relate to the 1979 financial year . They shall be taken
respect of applications submitted before 30 April 1979 *
 ---pagebreak---                       Article 18
This Regulation shall enter into force on  1   January 1979 .
This Regulation shall be binding in its entirety and directly
applicable in all Member States .
Done at Brussels , on
                                       For the Counci 1 ,
                                       The President .
 ---pagebreak---                                                                      38 .
                              ANNEX
Information to be included in programmes
a ) Description of the area and the sectors covered by the programme
b ) Social and economic significance of the fishing industry and of
    the aquaculture in the area covered by the programme
c ) State of existing structures ; analysis thereof
    1.  Fleet
        - where the fishing ports concerned are located
        - description of the inshore fishing fleet in each such port ,
          its structure and degree of renewal
        - description of the types of fishing done
        - identification of the areas traditionally fished
        - employment situation
    2 . Aquaculture
        - identification of the areas and type of installation employed
          for rearing fish , crustaceans and molluscs commercially
        - brief details of the degree of bacterial or chemical coastal
          pollution of urban , industrial or agricultural origin , if any
d ) The needs which are to be served by the programme and the production
    objectives at which it aims , in particular target capacities bearing
    in mind catch or breeding potentials .
e ) Means to be deployed to achieve the production objectives
    1.  Fleet
        - Estimate of the number of vessels which will come into service
          during the period within which the programme is to be carried
          out , indication of their probable tonnage and their fishing
          capacity .
 ---pagebreak---                                                                          39 .
        - Estimation of the number of vessels to be withdrawn from fishing
           and their fishing capacity .
    2 . Aquaculture
        - estimation of the areas to be used for breeding and their
          expected yield
        - brief description of the breeding methods , in particular
           intensive breeding methods to be employed .
f ) Expected effect of the programme on :
    - the economic viability of small-scale inshore fishing undertakings
       in the region or regions concerned
    - the economic situation of fishermen and shore workers
    - the general economic situation of the region and the employment
       situation in particular
    - the social situation of sea fishermen
    - the environment situation
g ) Situation of the programme in relation to other eventual measures
     aimed at encouraging balanced development of the overall economy of the
     geographical area concerned , and more precisely an indication of the
     links with regional development programmes .
h ) Scheduled period for carrying out the programme , which should not ,
    in principle , exceed five years .
 ---pagebreak---                                                                         40 .
                        INSHORE FISHING MEASURE
                           Financial assessment
1.   Vessels
               The class of vessels between 12 and 24 metres ( or between
25 and 130 GRT ) includes some 7 200 vessels representing a tonnage of
360 000 GRT ( estimated data , see table attached ).
               A renewal programme of normal proportions should cover
about 18 / 20 000 GRT per year .
               In the present situation , bearing in mind the budget limits
on Community support , it seems reasonable to provide for aid for about
half this tonnage , which corresponds to renewal of some 3% per year
of the tonnage in question . Account should also be taken of the need
to convert some high-seas vessels , which can be estimated for the whole
period in question at 3% of the overall tonnage of vessels of over
24 metres ( 750 000 GRT ).
               The following estimate can therefore be made :
renewal      :   12% of the overall tonnage below 24 metres 3 360 000 x 12% =
                                                                     43 200
internal     :    3 % of the overall tonnage over 24 metres = 750 000 x   3% =
conversion                                                           22 500
                                             rounded off to          66 000 GRT
25 %         : average Community support
4 500 EUA    : cost per GRT
66 000 x 4 500 - 297 million EUA x 25% = 75 million EUA ( rounded off ).
2.   Aquaculture
               The average cost of a semi-intensive aquaculture installation ,
where the investment is mainly concerned with provisions of infrastructures ,
may be estimated at about 1 million EUA . If one takes an average of
6 installations per year , the estimated expenditure for the EAGFF could
be 24 million EUA for the whole period .
3.   Projects for the further training of fishermen
               The original estimate of 1.5 million EUA envisaged applied
research as well as projects for the further training of fishermen .
The present proposal is limited to further training projects and the
cost to the EAGGF can be estimated at 1 million EUA .
 ---pagebreak---                                                                    41 .
4.     MuLti annual breakdown
                The total cost to the EAGGF may be broken down as
follows :
Budgetary Commitment
Million EUA          TOTAL      1979   1980    1981     1982
                     100%       20%     30%     30%       20%
1.     Vessels        75        15      22.5    22.5       15
2 . Aquaculture       24         6        6      6          6
3.   Further           1         0.5      0.5
     training for
     fishermen
                     100        21.5    29.0    28.5       21
Payment appropriation
                    1979      1980   1981     1982   1983     1984
1.     Vessels         5        12.5    20 .    20    12.5      5
2 .„ Aquaculture       3         3        6      6     6.
3.   Further
     training for      0.5       0.5
     fishermen
                       8.5       16     26      26    18.5      5
 ---pagebreak---                  FINANCIAL              STATEMENT
                                                                             DATE I    3 May 1978
L. BUDGET LINE coiicawED T       Arti cle 860
2. ACTION I       Measures for restructuring the inshore fishing industry
3 . LECAL BASIS I     Arti cLe 43
4. OBJECTIVES I       Promoting structural adjustments in inshore fishing and
                      developing that industry and aquaculture
J. FINANCIAL C0II5EQULKCE
5.0 EXFHT.'DITUSE
     –CHARGED TO THE EC BUDGET
                                           FOR THE MARKETING YEAR CURREMT PINAJ.'CIAL TEAR
                                                                         £    )            ■ FOLLOWING E^AJICIAL TEAR |
       ( MMJHIS/IHTCSVEMTI ONS )                                                              8.5 million EUA
     -CHARGED TO KATIOKAL AEMNISTR .
     -CHARGED TO OTHER NATIONAL GROUPS
5.1 RECEIPTS
     -<WN RESOURCES OP TIE EC
       ( LEVIES/ CUSTOM DUTIES )
     -RATI 0MA1
                                           TEAR J.?.8.9           TEAR           J           TEAR ....1.?8 ?
5.0.1 PUJRI A.VNUAL PATTERH OP EXPENDITURE m i I lion
5.1.1 PLUR!ANNUAL PATTER!! OP RECEIPTS       EUA      1                      ^                           ^
5.2 KETIIOD op CALCULATION $ ee financial assessment
6.0 FINANCING POSSIBLE KITH CREDITS INSCRIBED IN RELEVANT CHAPTER OF CURRSST BUDGET T                    M/KO
6.1 FINANCING POSSIBLE BY TRANSRER B2TV2EH CHAPTERS OF CURSE.VT BUDGET ?
6.2 KEC-SSITT FOR A SUFPLEIZ.'TARY BUDGET ?                                                              ®/Ν0
6 .} CREDITS TO BE WRITT^L INTO FUTURE BUDGETS ?
caoœrrs •
              This proposal replaces the original Commission proposal ( C0MC75 ) 574 final )
              of 14 November 1975 .
              The estimated total expenditure for this four-year measure is 100 million
              EUA .   This figure replaces the 1975 estimate which was 118 million EUA .
 ---pagebreak---                             MOTOR INSHORE FISHING VESSELS AS AT 1.1.1977
           0-25 GRT             25-50 GRT          50 - 100 GRT     0 - 100 GRT   100-150 GRT ( 1 )
           N°      GRT          N°      GRT        N°       GRT      N°     GRT   N°       GRT
 Β            9        150       64    2.460         93    7.460     166   10.070  54     7.460
 DK     6.009      38.079       839   32.214       233    16.806  7.081    87.099 184    25.195
 D      1.052       5.200       244    7.560        136   10.164  1.432    22.924  30     3.384
 F     11.057      55.560     1.088   41.216        164   12.396 12.309   109.172 119    14.875
 IRL       873      5.000       176    6.329        154   10.712  1.203    22.041  32     3.538
 I     19.078      79.935     1.509   53.264        505   37.401 21.092   170.600 185    23.045
 NL        306      4.193       208    7.928        203   15.104     717   27.225 103    12.487
 UK     5.153      36.167       881   33.566        321   21.183  6.355    90.916  56     6.601
 Total 43.537     224.284     5.009  184.537    1 . 809  131.226 50.355   540.047 763    96.585
Sources : Eurostat    and national Sources .
(1 ) : Estimate .