Select Committee on European Scrutiny Fourth Report


11. RESTRUCTURING OF THE COMMUNITY FISHING INDUSTRY: SOCIAL, ECONOMIC AND REGIONAL CONSEQUENCES


(23960)

13908/02

COM(02) 600


Commission Communication: Action Plan to counter the social, economic and regional consequences of the restructuring of the EU fishing industry.

Legal base:
Document originated:6 November 2002
Deposited in Parliament:12 November 2002
Department:Environment, Food and Rural Affairs
Basis of consideration:EM of 26 November 2002
Previous Committee Report:None; but see footnote
To be discussed in Council:27 November 2002
Committee's assessment:Politically important
Committee's decision:Cleared


Background

  11.1  In its Communication[46] ("Roadmap") on the reform of the Common Fisheries Policy (CFP), the Commission undertook to provide before the end of this year an action plan to counter the social, economic and regional consequences of the restructuring of the Community fishing industry. Its conclusions are set out in the current document.

The current document

  11.2  The Communication is in four parts, of which the most important is that which seeks to assess the likely socio-economic impact of the effort limitation and reduction in vessel numbers arising from the introduction of multi-annual management schemes for those stocks outside safe biological limits. In making this assessment, the Commission has drawn on experience over the last decade, when it says about 8,000 jobs a year have been lost in the catching sector, half of these because of the scrapping of vessels, and half because of improvements in efficiency arising from vessel modernisation. It suggests that, as a result of multi-annual plans, the current loss of 4,000 jobs a year due to scrapping could rise to 7,000 a year, equivalent to an additional loss of 12,000 jobs over the period 2003-06.

  11.3  However, in the light of its bilateral consultations with Member States, it adds that these figures are essentially a theoretical exercise in which there are major uncertainties, since they depend upon the number of stocks for which multi-annual plans are drawn up (and when these come into effect), and the ways in which individual Member States implement them. It suggests that the outcome will also be affected by any new fishing opportunities which become available, and the extent to which there is currently a labour shortage in this sector, with crews being recruited from third countries. The Commission therefore concludes that its figure of 12,000 jobs represents a maximum, and that this is "way beyond" what is likely to occur, particularly if restrictions on construction grants were to reduce the 4,000 a year job losses currently arising from modernisation. However, it also points out that there would be a greater social cost over time if the measures required to prevent over-exploitation of the fisheries were to be postponed, and that these difficulties would be compounded by enlargement, which it says will increase the Community fleet without a concomitant increase of common fisheries resources.

  11.4  The remainder of the Communication identifies existing measures under the Financial Instrument for Fisheries Guidance (FIFG), Regional Development Fund and the Social Fund to support restructuring (where it notes a number of constraints arising from existing commitments and guidelines), before turning to the additional measures available in both the short and the long term. In the former case, it says that these include a re-programming of assistance under the FIFG for vessel construction towards support for fleet adjustment and social measures, though it adds that many Member States are resistant to this idea.

The Government's view

  11.5  In his Explanatory Memorandum of 26 November 2002, the Parliamentary Under-Secretary of State (Commons) at the Department for Environment, Food and Rural Affairs (Mr Elliot Morley) says that the Government appreciates the importance of the fishing industry to the economies of a number of coastal communities in the UK, particularly in and around traditional ports, and that it is taking these into account in the negotiations on the Commission's CFP reform package. He says that the Government agrees with the Commission that funds should be released from programmes for building and modernising fishing vessels and re-targeted towards socio-economic measures under the FIFG programme, though he points out that within the UK the FIFG funds are used not to promote vessel construction, but for such measures as decommissioning, safety training, improvement of the hygiene and quality of fish on board, and the creation of value added products. Consequently, any reallocation of FIFG funds towards remedial measures within the UK would be at the cost of existing priorities.

  11.6  The Minister also says that the Government is taking account of the potential impact of a smaller fishing fleet on the onshore industries dependent on fishing, but that, as the Commission has noted, a substantial proportion of the fish processing industry in this country is supplied by imports, and therefore less affected by any change in supplies landed directly in the UK.

Conclusion

  11.7  Since the need to address the various consequences of the measures proposed to reform the Common Fisheries Policy is clearly a matter of some economic and social importance, we are drawing this Communication to the attention of the House. However, it is evident that the impact of the reforms depends upon a number of factors which cannot accurately be foreseen at this stage, and that, as the Commission has tacitly acknowledged, any attempt to quantify these is, for the moment, little more than inspired guess-work. We are therefore clearing the document without making any recommendation for its further consideration.


46   (23511) - ; see HC 152-xxxv (2001-02), paragraph 1 (3 July 2002), and HC 152-xxxviii (2001-02), paragraph 2 (16 October 2002). Official Report, 21 November 2002, Cols.801-867. Back


 
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