Brussels, 10/07/2008 (Agence Europe) - On Tuesday 8 July, the European Commission adopted a package of emergency and restructuring measures to help the fisheries sector cope with the crisis caused by very high fuel prices. The draft regulation “elaborating a specific temporary action for encouraging the restructuring of EU fishing boats affected by the economic crisis” was approved on Thursday 10 July by the European Parliament. This will enable European fisheries ministers to reach a political agreement on the dossier during their meeting on Tuesday 15 July. Joe Borg, the European commissioner for fisheries and maritime affairs declared that the draft regulation includes a series of short term measures from the medium and long term conditions for helping fishermen tackle the crisis “and build a really sustainable future for the sector”.
The fishing sector has had serious difficulties over a number of years, which have recently worsened with the fuel price crisis. Revenues continue to decline (-25% since the early nineties), which is linked to the price of Brent oil per barrel that has quadrupled since 2002, and to the fact that fish prices have stagnated (pressure on supply worldwide). The Commission has said that it wants to use this occasion to take more robust measures. Its objective is two-fold: mitigate the immediate economic and social difficulties, and make a sustainable contribution to the fight against fishing boat overcapacity.
The Commission's proposed package of measures is based on a series of principles, mainly derogations to certain provisions in the European Fisheries Fund (EFF), which are valid until the end of 2010. Apparently, temporary aid will be needed, particularly for the most affected segments, fishermen who have had their incomes decline, and ship-owners who need time for restructuring. Additional Community funding will be paid and the granting of state aid facilitated. The Commission intends to ensure that no competition distortion arises.
Emergency and restructuring measures. Fishing fleets could benefit from emergency measures by developing adaptation programmes, which will have to be adopted by member states in exchange for two requirements: costs linked to fuels represents on average at least 30% of production costs and a definitive reduction of at least 30% in fleet capacity will be ensured (except if the fleet from the state involved has fewer than 100 boats). The Commission is proposing the authorisation of member states to grant emergency in the form of funding for the temporary cessation in fishing boat activity. This aid (3 years maximum, expected to begin on 30 November 2008) should help restructuring. Total public funding will be capped to €400 million. The Commission is proposing the withdrawal of restrictions on access to bonuses for permanently halting fishing activity and granting additional aid for each month of cessation of activity until 31 December 2009 (for fleets in adaptation programme). For fishing gear and engines, the Commission is proposing a reduction in obligatory private funding, which is currently 60% and 80% respectively, to encourage fishermen to change their engines for more energy efficient models and to increase aid to fishermen who use more energy efficient fishing gear. Granting aid for partial retirement (replacement of an old boat by a smaller more energy efficient one, with a 25% cap on member states) is also on the table.
Other measures. The Commission is also proposing other kinds of measures outside the adaptation programme. Aid to ship-owners under the energy audit, incentives for developing energy efficiency (possibility of pilot project by member state) or increase in EFF beneficiaries for socio-economic measures, are also being proposed. Joe Borg's services are also suggesting improvements to production planning (operational programmes to adapt supply and demand) and to promote initiatives for improving quality, information and communication between different trade chain operators. The use of EFF could also be facilitated and reprogramming by member states (operational programmes) by member states should optimise funding for countering the effects of rising fuel prices. According to the proposal de minimis aid¸ is expected to go from €30,000 per company to €30,000 per ship (with a €100,000 ceiling per company). The Commission is undergoing a fall in social security contributions for the fisheries and aquaculture sectors.
Package increases. This unprecedented restructuring effort does not come free and all the players will have to play a part. The Commission estimates the package as costing €1.6bn for temporary and permanent cessation measures which, added to other investment, market and social measures, should cost €2bn. Reprogramming under axis 1 of the EFF (fleet adaptation) for these measures could costs €600 million, with an additional €250 million from national co-funding and €550 million from EFF operational reprogramming measures.
The remaining amount is estimated at €600 million, one part of which could be provided by the non-allocated margin foreseen under Heading 2 (management of natural resources, mainly agricultural spending) on ceilings of the financial framework for the years 2009 and 2010, without prejudging the level of common agricultural policy (CAP) real spending. (A.D./transl.rh)