REPORT on the proposal for a Council regulation on the conclusion of the Protocol defining, for the period from 1 June 1996 to 31 May 1999, the fishing opportunities and the financial contribution provided for by the Agreement between the European Community and the Democratic Republic of São Tomé and Principe on fishing off São Tomé and Principe (COM(96)0394 - C40485/96 - 96/0199(CNS))

18 April 1997

Committee on Fisheries
Rapporteur: Mr Allan Macartney

By letter of 12 September 1996 the Council consulted Parliament, pursuant to Article 43 in conjunction with Article 228(2) and (3) first subparagraph, of the EC Treaty, on the proposal for a Council regulation on the conclusion of the Protocol defining, for the period from 1 June 1996 to 31 May 1999, the fishing opportunities and the financial contribution provided for by the Agreement between the European Community and the Democratic Republic of São Tomé and Principe on fishing off São Tomé and Principe.

At the sitting of 20 September 1996 the President of Parliament announced that he had referred this proposal to the Committee on Fisheries as the committee responsible and the Committee on Budgets for its opinion. At the sitting of 21 February 1997, he announced that he had referred the proposal to the Committee on Development and Cooperation for its opinion.

At its meeting of 9/10 September 1996 the Committee on Fisheries had appointed Mr Macartney rapporteur.

It considered the Commission proposal and the draft report at its meetings of 20/21 January, 19/20 March and 16/17 April 1997.

At the last meeting it adopted the draft legislative resolution unanimously.

The following were present for the vote: Fraga Estévez, chairman, Macartney, vice-chairman and rapporteur; Cunha, Dührkop Dührkop, Gallagher, Girão Pereira (for d'Aboville), Imaz San Miguel (for Provan), Jöns (for Adam), Langenhagen, Medina Ortega, Nicholson (for Souchet), Novo, Pery, Roubatis, Varela and Suanzes-Carpegna.

The opinion of the Committee on Budgets is attached. The opinion of the Committee on Development and Cooperation will be published separately.

The report was tabled on 18 April 1997.

The deadline for tabling amendments will be indicated in the draft agenda for the relevant partsession.

A LEGISLATIVE PROPOSAL - DRAFT LEGISLATIVE RESOLUTION

Proposal for a Council regulation on the conclusion of the Protocol defining, for the period from 1 June 1996 to 31 May 1999, the fishing opportunities and the financial contribution provided for by the Agreement between the European Community and the Democratic Republic of São Tomé and Principe on fishing off São Tomé and Principe (COM(96)0394 - C4-0485/96 - 96/0199(CNS))

The proposal is approved with the following amendments:

Commission text[1]

Amendments

(Amendment 1)

Citation 1a (new)

Having regard to the Resolution on fishing agreements with developing countries adopted by Parliament on 19 February 19871. 1 OJ C76, 23.3.1987, p. 123

(Amendment 2)

Citation 1b (new)

Having regard to the Resolutions on fisheries in the context of ACP-EEC cooperation adopted by the ACP-EEC Joint Assemblies on 21 September 19841 and on 7 October 19932. 1 OJ C282, 22.10.1984 2 OJ C14, 17.1.1994, p. 22

(Amendment 3)

Recital 1a (new)

	Whereas it is important to improve the information provided to the budgetary authority and whereas the Commission should submit an annual report on the progress made in applying this agreement in order to facilitate the taking of decisions during the annual budgetary procedure.
Commission text Amendments

(Amendment 4)

Recital 1b (new)

Whereas EC-bilateral fisheries agreements with ACP countries, although fundamentally trade agreements, can be important components in the economic and social development of these countries.

(Amendment 5)

Article 3a (new)

During the final year of application of the Protocol and before the conclusion of any agreement to renew it, the Commission shall submit a report to the Council and Parliament on the application and conditions of implementation of the agreement.

(Amendment 6)

Article 3b (new)

On the basis of this report and after consulting the European Parliament, the Council shall grant a mandate to the Commission for negotiating the protocols for the implementation of this agreement.

Legislative resolution embodying Parliament's opinion on the proposal for a Council regulation on the conclusion of the Protocol defining, for the period from 1 June 1996 to 31 May 1999, the fishing opportunities and the financial contribution provided for by the Agreement between the European Community and the Democratic Republic of São Tomé and Principe on fishing off São Tomé and Principe (COM(96)0394 - C4-0485/96 - 96/0199(CNS))

(Consultation procedure)

The European Parliament,

- having regard to the Commission proposal to the Council, COM(96)0394 - 96/0199(CNS)[2],

- having been consulted by the Council pursuant to Article 43 in conjunction with Article 228(2) and (3) first subparagraph, of the EC Treaty (C4-0485/96),

- having regard to Rule 58 of its Rules of Procedure,

- having regard to the report of the Committee on Fisheries and the opinion of the Committee on Budgets (A4-0145/97),

1. Approves the Commission proposal, subject to Parliament's amendments;

2. Calls on the Council to notify Parliament should it intend to depart from the text approved by Parliament;

3. Asks to be consulted again should the Council intend to make substantial modifications to the Commission proposal;

4. Instructs its President to forward this opinion to the Council and the Commission.

• [1]  O.J. C
• [2]  OJ C

B. EXPLANATORY STATEMENT

INTRODUCTION

The agreement between the European Economic Community and the Government of the Democratic Republic of São Tomé e Principe on fishing off São Tomé e Principe was concluded in 1984 for an initial period of three years, with provisions for subsequent revision on the basis of three years protocols. The proposal of this Council regulation is the fifth revision in respect of which Parliament is now called on to deliver its opinion, for the period from 1 January 1996 to 31 May 1999.

CONTENTS OF THE PROTOCOL

The agreement between the European Union and São Tomé e Principe is basically a tuna fishing Protocol. The following table provides an overview of the evolution of the agreement in recent years:

Content	1.6.90-31-5.93	1.6.93-31.5.96	1.6.96-31.5.99
Freezer tuna seiners	46	40	37(Fr=18, Es=19)
Pole and line tuna vessels	5	8	7(Fr)
Surface long liners			25 [20(Sp), 5(Pt)[
Financial compensation (ECUs)	1.650.000	1.650.000	1.800.000
Scientific programme (ECUs)	150.000	250.000	187.500
Study grants (limit) (ECUs)	375.000	275.000	187.500*
Total cost (ECUs)	2.175.000	2.175.000	2.175.000

The scarcity of fishery resources in the EEZ means that this agreement can not be extended to other species. Anyway, taking into account the large São Tomé e Principe EEZ, this country constitutes the central base for the Gulf of Guinea European fleet.

Development of the regional sector

The sum earmarked for improving the skills and knowledge of the São Tomé e Principe fishing sector is distributed as follows:

35,000 ECUs: places in establishment in the Member states (scholarships) and practical training in scientific, technical and economic disciplines relative to fisheries;

90,000 ECUs: São Tomé e Principe participation in the Regional Fisheries Committee for the Gulf of Guinea and ICCAT meetings;

62,500 ECUs Participation in international meetings or training courses on fisheries.

Fees to be paid by shipowners

The fees provided for in Article 4 of the Agreement shall be set at ECU 20 per tonne caught in São Tomé and Principe fishing zone.

The competent authorities of São Tomé and Principe shall indicate the detailed rules for payment of the fees, in particular the bank accounts and currencies to be used.

Licences shall be issued following payment to the National Bank of São Tomé and Principe of a lump sum of ECU 3000 for each freezed tuna seiner per year and ECU 500 for each pole-and-line tuna vessel or surface long-liner per year, equivalent to the fees for:

- 150 tonnes of tuna caught per freezer tuna seiner per year,

- 25 tonnes of tuna caught per pole-and-line tuna vessel or surface long-liner per year.

However, if the amount of the final statement is lower than the advance referred to in paragraph 5, the resulting balance shall not be reimbursable to the shipowner.

The São Tomé and Principe authorities shall draw up the statement of fees due for the past calendar year on the basis of the catch declarations for each Community vessel and of any other information in their possession.

The previous year's statement shall reach the Commission by 31 March which shall forward it simultaneously to the shipowner and national authorities of the Member States concerned by 15 April.

Where the shipowners dispute the statement presented by São Tomé and Principe they may request the relevant scientific institutes, e.g. France's Institut de la Recherche Scientifique d'Outre-Mer (ORSTOM) and the Instituto Español de Oceanografía (IEO), to verify the catch data before consulting with the São Tomé and Principe authorities with a view to drawing up the final statement by 15 May of the current year. In the absence of any observations from the shipowners by that date, the statement drawn up by the São Tomé and Principe authorities shall be deemed final. Member States shall forward to the Commission the final statements relating to their own fleets.

Scientific observer

Vessels shall allow on board observers at the request of the authorities of São Tomé and Principe. Observers must not remain on board for longer that needed to carry out spot checks on the catch. The master of the vessel shall take all necessary steps to facilitate the task of the observers on board. The salary and the social security contributions of the observer shall be borne by the competent authorities of São Tomé and Principe. Should the observer be taken on board in a foreign port, his travelling costs shall be borne by the shipowner. Should a vessel with an observer from São Tomé and Principe on board leave the São Tomé and Principe fishing zone, all measures must be taken to ensure the observer's return to São Tomé and Principe as soon as possible at the expense of the shipowner.

Signing-on of local crews

At the request of the authorities of São Tomé and Principe, owners of tuna fishing vessels shall endeavour to sign on three São Tomé and Principe seamen for all the Community tuna seiners, all such seamen to be assigned to different vessels. The conditions of employment and remuneration shall be fixed by mutual agreement between the shipowners and representatives of the seamen.

Monitoring

Within three hours of entering or leaving the zone and every three days during their fishing activities in São Tomé and Principe waters, vessels shall be obliged to communicate their position and the volume of the catch on board direct to the São Tomé and Principe authorities preferably by fax or, failing that, by radio in the case of vessels not equipped with fax. The fax number and radio frequency shall be notified on issue of the licence.

A copy of the fax messages or of the record of radio communications shall be kept by the São Tomé and Principe authorities and the shipowners until both parties have approved the final statement of fees referred to in paragraph 7.

A vessel caught fishing without having notified the São Tomé and Principe authorities of its presence shall be considered an unlicensed vessel.

The international standards on tuna fishing as recommended by ICCAT shall apply.

Comments on the Commission proposal

This agreement is an improvement on previous agreements from the point of view of São Tomé and Principe in the following respects:

A) The 3000 ECUs fees for each freezer tuna seiner and 500 ECUs for each tuna vessel or surface long-liner to be paid by the shipowner are due even if they do not catch the tonnes of fish used as the basis for the calculation. It is a lump sum that the shipowners must pay regardless.

The calculation appears to err on the generous side since most of the time the ships are unlikely to catch such quantity.

B) The calculation system has changed, now favouring São Tomé and Principe. The statement of fees will be drawn up not by the Commission or by the shipowner, but by the São Tomé and Principe authorities.

Should any dispute arise about declarations by shipowners, there will be consultation with scientific institutes in order to determine the correct amount caught.

Procedure

On 23 May 1996, a new protocol defining the fishing opportunities and the financial compensation for São Tomé and Principe for the period from 1 June 1996 to 31 May 1999 was initialled following negotiations with the Commission.

On 25 July 1996 the European Commission sent a letter to the European Parliament informing it of the proposal for a Council regulation and a Council decision concerning the provisional application of the Agreement between the European Community and the Democratic Republic of São Tomé and Principe on fishing off São Tomé and Principe.

The formal consultation to the European Parliament took place on 20 September 1996, but only on the proposal for a Council regulation on the conclusion of the protocol (COM(96)0394).

The first payment of this Agreement should have been made on 31 October 1996, ie one month after the consultation. This practice give the European Parliament no opportunity to exercise its proper role in the decision making process.

Once more the Council has presented the Parliament with a fait accompli. This habit clearly illustrates the need for a new interinstitutional agreement between the Council and the Parliament on this issue in order to preserve the institutional role of the Parliament as guaranteed in the Treaties.

CONCLUSIONS

EC fisheries agreements with third countries must be drawn up in the interests and for the benefit of both contracting parties. Although legally fisheries agreements are purely trade agreements, the potential for these agreements to play a positive role in the development of the indigenous fishing industry should not be neglected.

The rapporteur supports the proposal, while reiterating the Parliament's demand for proper follow up procedures in relation to the fisheries agreements, for transparency and for a reasonable timing for consultation. Establishment of sound practices in these regards is not only in the interest of the democratic function of the Community, it would also improve the basis for the Commission's actions and the Council's decision.

EUROPEAN PARLIAMENT

14 November 1996

OPINION

(Rule 147)

for the Committee on Fisheries

on the proposal for a Council Regulation on the conclusion of the Protocol defining, for the period 1 June 1996 to 31 May 1999, the fishing rights and the financial compensation provided for in the Agreement between the European Community and the Democratic Republic of São Tomé e Príncipe on fishing off São Tomé e Príncipe (COM(96)0394 - 96/0199(CNS))

Committee on Budgets

Draftswoman: Mrs. Karin Jöns

PROCEDURE

At its meeting of 4 September 1996, the Committee on Budgets appointed Mrs. Karin Jöns draftswoman.

It considered the draft opinion at its meetings of 14 November 1996.

At the last meeting it adopted the following conclusions unanimously.

The following took part in the vote: Samland, Chairman; Tillich, Willockx, and Porto, vicechairman; Mrs Jöns, Draftswoman; Colom I Naval, Dührkop, Elles, Fabra Vallés, Haug, Ilaskivi (for M. Böge), Kellett-Bowman (for M. Bardong), Miranda, Mulder (for M. Brinkhorst), Tappin, Virrankoski, Waidelich and Wynn.

1. THE COMMISSION PROPOSAL AND ITS ANTECEDENTS

1.1 The Procedure

- On 23 May 1996, a new protocol defining the fishing opportunities and the financial compensation for São Tomé e Príncipe for the period from 1 June 1996 to 31 May 1999 was initialled following negotiations with the Commission.

- On 25 July 1996, the Commission sent a letter to the European Parliament informing it of the proposal for a Council decision on the conclusion of the agreement, in the form of an exchange of letters, concerning the provisional application of this new proposal for a protocol (the first payment being considered by 31 October 1996), as well as on the proposal for a Council Regulation adopting this new protocol. At that time, the Commission advised the EP that the Council was only expected to consult the European Parliament on the proposal for a Regulation adopting this protocol and that a decision on its provisional implementation would be taken by the Council as soon as possible.

- On 20 September 1996, the European Parliament was formally consulted, but only on the proposal for a Council Regulation on the conclusion of this protocol (COM(96)0394 final).

- As the first payment should commence by 31 October 1996 (due to the exchange of letters between the Commission and the Government of São Tomé e Príncipe) the Council adopted its Decision on the provisional application of this new protocol on 25 October 1996. The Commission has proposed the commitment of the first instalment on 31 October. However, the Financial Controller has not yet endorsed this proposal (11 November). All of these procedures took place, despite the fact that the European Parliament consultation has only taken place on 20 September and it will take about three/four months to adopt its opinion.

1.2 The Significance of the Council's and Commission's Acts

As was already mentioned during the EP consultation on the renewal of all other protocols during this mandate, the following points arise from this procedure:

- The European Parliament consultation on the modification of a fishing protocol occurred almost 4 months after negotiations with the third country were concluded.

- Despite the unexpected delay in the procedure, a decision with financial implications has been taken without hearing the opinion of the other branch of the Budgetary Authority and without having a sufficient legal base from the Treaty.

- The payment of the financial contribution will probably be made before the EP adopts its opinion on the Regulation, which means that the Commission considers the Council decision a sufficient legal base by which to pay the EU financial contribution.

- Once again, such a payment will be made after the deadline agreed upon in the form of an exchange of letters between the EU and the third country.

The Committee on Budgets and the European Parliament have protested several times against such a procedure. It is unacceptable that the Council systematically decides upon the provisional application of these protocols without consultation, and that the Commission intends to pay part of the financial compensation to the third country before the EP gives its opinion.

Last year, after having consulted the Committee on Legal Affairs on other dossiers, the Committee on Budgets decided upon the strategy to follow in such cases. A systematic political protest strategy was therefore developed. This year, the Committee on Budgets has confirmed its strategy. On 21 February, the Legal Service prepared a note on this problem. The Committee on Legal Affairs had an exchange of views on this issue last March and has continued its analysis of this matter.

The letter of 22 March 1996 addressed to the President of the European Parliament by the Council presidency does not present relevant arguments to justify the Council practice and does not answer the legal and political questions which the Committee on Budgets has been raising.

The draftswoman considers that the normal EP consultation procedure should take place in due time and the Council should avoid the systematic utilization of atypical procedures such as the provisional application of international protocols. The third country, being aware of the fact that no payment could be made before the EP consultation procedure is concluded (which always take about 3/4 months), should be interested in not delaying negotiations unnecessarily and to accept longer delays in payment in those cases where provisional application is necessary.

The draftswoman also calls attention to the fact that the possible changing of the EP consultation procedure within the framework of the IGC (all international agreements and protocols being submitted to assent procedure) will not resolve the criticisms that have been raised regarding the practice of provisional application.

2.THE CONTENTS OF THE PROTOCOL

This new protocol provides for a financial contribution of 2,175 ECU million, payable for a period of three years commencing on 31 October 1996 (according to the Decision on provisional implementation).

Breakdown of the cost of the new protocol (B7-800)

(in commitment and payment appropriations)

ECU million

Breakdown	1996	1997	1998	Total
Financial contribution	600.000	600.000	600.000	1.800.000
Scientific and technical programme	187.500			187.500
Study and training	62.500	62.500	62.500	187.500
TOTAL	850.000	662.500	662.500	2.175.000

As mentioned above, no payment has been made at this date, the Financial Controller having not yet endorsed the proposal for committing the first instalment.

3. FINANCIAL IMPLICATIONS AND AMENDMENTS TO BE TABLED

Your draftswoman recalls that this new Protocol has come before the EP while negotiations are under way for the adoption of a "code of conduct" on improvement of information on the preparation and implementation of international fisheries agreements and protocols (joint declaration). For this reason, while awaiting this joint declaration, the usual amendments on information and EP consultation should be adopted (am. 1, 3 and 4).

The financing of this Protocol is charged to Article B7-800 (allocated ECU 245 million in c.a. and 235 ECU million in p.a. in 1996) which, as far as the European Parliament is concerned, relates to compulsory and non-compulsory expenditure; in this case, the draftswoman's opinion is that it concerns non-compulsory expenditure. Such an argument is based both on the content of the protocol and on the declaration annexed to point 16, paragraph 3 of the Interinstitutional Agreement of 29 October 1993. Therefore, in view of the terms of this Agreement and the corresponding financial statement, your draftswoman insists on the adoption of the usual amendment on classification of expenditure (am. 2).

4. CONCLUSIONS

4.1 The Committee on Budgets protests against the fact that the Council and the Commission have once again followed the procedure of concluding an agreement (in the form of an exchange of letters), bearing financial and budgetary implications, and of adopting a decision concerning the provisional application of the Protocol, without consulting the European Parliament beforehand as well as against the possibility of paying the financial compensation before the EP has adopted its opinion;

4.2 Once again, invites the Commission to start negotiations on the renewal of financial protocols on fisheries long before they are due to expire, and to close the negotiations in due time to allow the appropriate consultation of the European Parliament;

4.3 Expects that the adoption of a common declaration establishing a "code of conduct" will improve EP information and participation in the decision-making process of international fisheries agreements in such terms that the usual amendments on information will no longer be necessary.

4.4 Considers however that, for the moment, these amendments should be adopted, while waiting for such a "code of conduct"; requests, therefore, that the Committee on Fisheries adopt the following 4 amendments:

(Amendment 1)

Second recital a (new)

Whereas, with a view to keeping the budgetary authority better informed about the implementation of the Protocol, the Commission shall submit every year, before 1 May, a report on the progress made in its implementation, accompanied by an up-dated financial statement;

(Amendment 2)

Second recital b (new)

Whereas, in accordance with the Interinstitutional Agreement of 29 October 1993 on budgetary discipline, expenditure relating to this Protocol is non-compulsory;

(Amendment 3)

Article 2a(1) (new)

1. In the course of the last year of the Protocol's application, and before the start of negotiations on its possible renewal, the Commission shall submit to the Council and European Parliament a general assessment report.

(Amendment 4)

Article 2a(2) (new)

2. The Council shall, on the basis of that report and taking account of the European Parliament's opinion thereon, authorize the Commission, where appropriate, to start negotiations with a view to the adoption of a new Protocol.