4.2.3.     Fisheries structural policy

LEGAL BASIS

Articles 32 to 37 (38 to 43) and 158 (130 a) of the EC Treaty.

OBJECTIVES

The main objective of the fisheries structural policy is to adjust fleet capacity to potential catches in order to relieve the problem of overfishing. To this end, efforts are being made to modernise the fleet and make it competitive by removing surplus capacity and orienting the industry towards support for and integrated development of coastal regions which are heavily dependent on fisheries.

ACHIEVEMENTS

1.     Background

a. The fisheries structural policy originated in 1970 with the decision to apply to the EAGGF Guidance section for support for construction, modernisation, marketing and processing within the fisheries sector.

b. In 1992 the Edinburgh European Council decided to incorporate fisheries structural policy into the Structural Funds with its own objective, Objective 5a (adaptation of fisheries structures) and its own financial instrument, the Financial Instrument of Fisheries Guidance (FIFG). As a response to the socio-economic implications of restructuring in the sector, additional measures were adopted in parallel with the FIFG. The PESCA Community initiative to provide financial support for fisheries-dependent areas was put in place for the period 1994 - 1999, together with accompanying measures such as early retirement, premiums for young fishermen, etc.

c. Agenda 2000 introduced new approaches, including bringing the structural problems of fisheries-dependent areas into the new Structural Funds Objective 2 (Council Regulation 1260/99 of 21 June 1999) and not renewing the PESCA initiative in 2000.

d. Council Regulation 1263/99 of 21 June 1999 sets the new FIFG operating framework for the period 2000 - 2006. Regulation 2792/99 of 17 December 1999 lays down the rules and arrangements for the FIFG.

a. Multiannual Guidance Programmes (MAGPs)

MAGPs are the key element of structural policy. They are defined as a series of objectives, accompanied by a set of measures for their realisation, allowing for management of fishing effort on a consistent, longer-term basis.

To this end, the Member States were invited to draw up plans for the way their fleet would evolve over the next four or five years. Objectives were set for each country's fleet in terms of fishing capacity (i.e. vessel tonnage and engine capacity) and fishing effort (calculated by multiplying capacity by the number of days at sea).

The Commission's proposed objectives for reductions are based on independent scientific advice. The Commission also examines programmes before they are approved. MAGPs I (1983-1986) and II (1987-1991) made it possible to start winding down the power struggle in the Community fleet. MAGP III (1992-1996) set more ambitious objectives for overall reductions, with different targets for each Member State. MAGP IV (1997-2002) follows the same line. A new MAGP will be drawn up for the period after 2001.

b. The Financial Instrument of Fisheries Guidance (FIFG)

Regulation 1263/99 has replaced Council Regulation 2080/93. The FIFG's objectives remain unchanged and almost all the measures currently eligible for financial aid have been maintained. The new Council Regulation 2792/99 of 17 December 1999 lays down the rules and arrangements for Community assistance under the FIFG, covering the period 2000 to 2006. The mechanisms and rules for intervention under this new regulation have been derived from the new provisions on global reform of the Community Structural Funds.

- Objectives:

• to help achieve a sustainable balance between resources and exploitation,
• to promote the development of economically viable enterprises in the fisheries sector,
• to improve market supply and increase the added value of fish and aquaculture products through processing,
• to contribute to revitalising industries which depend on fisheries and aquaculture.

- Types of action:

The FIFG can help to finance the following measures:

• adjustment of fishing effort (grants for scrapping and creation of joint enterprises), . fleet renewal and modernising fishing vessels,
• investment in aquaculture, development of coastal areas, fishing port facilities, processing and marketing fisheries products (improving quality and hygiene, preserving the environment, developing statistical instruments, etc.),
• other measures such as promoting and seeking new markets and activities by trade organisations (managing fishing quotas, temporary cessation of activity, etc.).

- Rates of financial participation:

As with the other Structural Funds, the maximum amount of FIFG aid for investment in enterprises has fallen to 35% for Objective 1 regions and 15% elsewhere (from 50% and 30% previously). For infrastructures and premiums for collective operations the rates remain 75% and 50%.

- Resources:

The FIFG budget for 1999 was EUR 808m.

3. Guiding principles of current policy

These are essentially the result of the new Regulation 2792/99 of 17 December 1999.

a. Reducing fleet capacity

• The general principle of the new regulation is that State aid to fleets must not serve to increase fishing capacity. To obtain authorisation to allocate aid, the Member States must demonstrate to the Commission that development of their fleet does not exceed the objectives set by the MAGP, overall and for each type of fishing. They may even have to prove that they have taken steps towards gradually reducing capacity to attain these objectives.
• The system for creating joint shipbuilding enterprises has been reformed so that it helps effectively to reduce fishing effort, focusing on the stocks fished by the vessel in question and ensuring compliance with the rules on conservation and management of fish stocks.

b. Involvement in fisheries policy by members of the trade

State aid can be granted to producer organisations engaged in certain activities.

- Seeking new markets: activities to find markets for surpluses and under-exploited species, to improve product quality and promote products obtained using environment-friendly methods, for example:

• quality certification,
• product labelling,
• promotion campaigns,
• market research,
• trade fairs and exhibitions,
• marketing advice and assistance.

- Support for achieving the general objectives of the fisheries policy: this is for short-term operations of collective interest, for example concerned with managing fishing effort, promoting selective fishing gear or methods, aquaculture facilities, training, electronic trade in products and quality control systems.

c. Extension of social measures

Apart from some measures to promote small-scale coastal fishing, the regulation provides for aid to:

• young people starting out in the industry, to help them buy their first boat;
• fishermen and boat owners who temporarily cease fishing activities;
• older people retiring from fishing.

ROLE OF THE EUROPEAN PARLIAMENT

Parliament was one of the main advocates of incorporating the fisheries structural policy into the Structural Funds.

• It recommended the creation of an autonomous Objective 6 (1993 reform) for fisheries within the Structural Funds.
• It closely monitored the creation of the FIFG, paying special attention to certain problems which were excluded from or not adequately covered by the Commission proposals, such as the social impact of restructuring in the sector, support for small fisheries, aid for experimental fishing campaigns, improvement of distribution channels, etc.
• Similarly, it urged that the FIFG financial endowment should at least match that of the instruments it replaced ^[1].
• In its resolution on the CFP after 2002 ^[2], Parliament stressed the need for an integrated approach to developing coastal areas and gradual regionalisation of fisheries structural policy.
• During the debates following presentation of Agenda 2000 it was concerned at the risk that the structural problems of areas dependent on fisheries would be neglected in the new Objective 2 of the Structural Funds ^[3].

PROCEDURE REFERENCES

[1] Consultation procedures: CSA3543, CSA1813 and CSA4853

[2] Own-initiative report: INI0473

[3] Consultation procedures: CNS98116, AVC98090 and CNS98102

18/10/2001