Committee Reports > List of Committees > Joint > 1976 > Committee on the Secondary Legislation of the European Communities > Report No. 37 - Fishing, Restructuring of Non-Industrial Inshore Industry

REPORT

1. Introduction

The Joint Committee has examined a proposal for a Council Regulation on a programme for re-structuring the non-industrial inshore fishing industry [R/2988/75].

The Commission’s proposal envisages the Draft Regulation being adopted by the Council so as to come into effect on 1 July, 1976. A Council Working Group of Experts has commenced work on consideration of the proposal but it is understood that this consideration will not now be completed so as to enable the Council to take a decision before 1 July.

2. General Aspect of Proposal

The proposal is for a Council Regulation aimed at improving the structure of the non-industrial inshore fishing industry by modernising fleets and other means of production.

It is envisaged that programmes would be drawn up by Member States and submitted to the Commission for approval which would be aimed at the development and re-structuring of the industry in one or more Member States. Within the context of a programme a Member State would also submit development schemes to the Commission which would take decisions on them in accordance with specified criteria. A development scheme would consist of a number of co-ordinated development projects.

Investment for re-structuring with regard to production, processing and marketing or, if necessitated by re-structuring, for research and retraining, could qualify as a development project. Financial assistance from FEOGA would be available for such projects.

If an approved programme provides for the reduction of fishing because of overfishing, fixing of catch quotas or pollution, Member States may introduce measures to encourage cessation of fishing. Financial assistance from FEOGA would also be available for these measures.

3. Development Projects

Projects relating to plant and equipment must be carried out by persons who have been fishing for five years in vessels having a water-line length of less than 24 metres or who farm fish, crustaceans or molluscs. Plant and equipment would comprise fishing vessels, shore installations and fish farms which comply with specified requirements. There are two types of fishing vessels which may be included in a development project for which grants would be payable viz. trawlers, vessels with a purse seine and multi-purpose vessels which must have a minimum water-line length of 12 metres and other vessels which must have a water-line length of between 6 and 12 metres.

4. Cessation of Fishing

The measures envisaged comprise the grant of (a) annuities to persons between 55 and 65 years who cease permanently to fish and (b) lump sum premiums to persons who sell for breaking vessels which are at least 15 years old. Member States would have the option of introducing these measures or not.

5. Financial Provisions

The following financial aid would be available from FEOGA:-

In the case of development projects recipients would have to contribute 50% of the cost and the Member States’ contribution must be not less than 40% of the FEOGA grant.

In the case of cessation of fishing measures, the FEOGA contribution would be based on the maximum payments in the case of (a) annuities to age 65 of 900 u.a. (£375) for a married recipient and 600 u.a. (£250) for a single person or widow and (b) breaking-up premium of 200 u.a. (£83) per gross registered ton.

The following is a breakdown of planned expenditure over the 5-year period:-

6. Views of the Joint Committee

Ireland, alone of the Member States, has an expanding sea-fishing industry and the need to expand our catching capacity is likely to become greater with the probable extension of exclusive national fishery limits. Any assistance towards solving this problem is to be welcomed and the Joint Committee welcomes in particular that aspect of the proposed Regulation which envisages that priority would be given to development schemes which qualify for Regional Development Fund Aid. The Joint Committee has been informed by the Department of Agriculture and Fisheries that no difficulty would be presented for this country in meeting the requirement to submit to the Commission a development programme within which projects would be forwarded for aid. The Joint Committee urges that Department to proceed as quickly as possible with the preparation of a suitable development programme.

The aspect of the proposal of main interest to Ireland is the suggested provision for grants of up to 25% from FEOGA for the purchase of fishing vessels, the construction of shore installations for processing, and marine fish-farming. Hitherto, such projects have been available for community grants under the individual FEOGA grant scheme (Regulation 17/64) which applies to all sectors covered by the Common Agricultural Policy but there has been no definite allocation in the budget for this scheme in any year for purely fishing projects, which had, therefore, to compete with projects in the general agricultural field for the available funds. However, under the current proposal a definite amount of money would be set aside for fishery projects over 5 years.

Almost all of the vessels currently operating in the Irish fishing fleet have a waterline length of less than 24 metres which would enable the bulk of the Irish sea-fishing industry to qualify for the re-structuring grants proposed. No upper limit is to be set, however, for replacement boats which are grant-aided under the proposal.

As regards the provision for the grant of annuities to fishermen aged between 55 and 65 who undertake to cease fishing and breaking-up premia for boats of 15 years or older (with 25% of expenditure to be recouped by FEOGA) it would be left to the discretion of Member States whether or not to introduce these schemes. These measures to encourage cessation of fishing are aimed at countries which have problems with over-capacity on the catching side of their fishing industry and need to reduce the numbers of their fishing boats and fishermen. Ireland does not have this problem.

While the Joint Committee welcomes the proposed Regulation in general there are some amendments which it would like to see made. It notes that applications for aid must be submitted to the Commission before 1 July each year but that the Commission is to be allowed until 30 June in the following year to reach a decision. In a time of inflation and rising costs, the period allowed for a decision is excessive. The Joint Committee would have preferred if Member States were allowed to take decisions on individual projects within guidelines laid down in a Council Directive. If, however, all decisions are to be taken by the Commission more prompt decisions should be insisted upon than the proposal envisages.

The Joint Committee observes that it is proposed that priority would be given to schemes which, inter alia, “are affected within the framework of the activity of recognised producers’ organisations or their associations”. In its view, recognition should be granted within the context of this provision to the position played by fishing co-operatives in this country. It suggests therefore that the provision be amended by the addition of the words “or fishing co-operatives or fishing consortia”.

7. Acknowledgement

The Joint Committee wishes to acknowledge with thanks the considerable assistance it received from the Irish Fishermen’s Organisation in examining this proposal.

(Signed) CHARLES J. HAUGHEY,

Chairman of the Joint Committee.

30th June, 1976.