Select Committee on European Scrutiny Ninth Report


8. EU-GREENLAND FISHERIES PROTOCOL


(24076)

15297/02

COM(02) 697


Commission Communication: mid-term review of the Fourth Fisheries Protocol between the EU and Greenland.

Legal base:
Document originated:3 December 2002
Deposited in Parliament:10 December 2002
Department:Environment, Food and Rural Affairs
Basis of consideration:EM of 7 January 2003
Previous Committee Report:None
To be discussed in Council:No date set
Committee's assessment:Politically important
Committee's decision:Cleared


Background

  8.1  When Greenland withdrew from the Community in 1985, it became an Overseas Country and Territory (OCT), with emphasis being placed on the need for co-operation and development. Also, in view of its particular reliance on fisheries, a special Protocol to the withdrawal Treaty gave Greenland unrestricted and duty-free access to the Community market for fisheries products in return for satisfactory Community access to Greenland waters under a fisheries agreement. The first such agreement was concluded for an initial period of ten years, and has since been extended for additional six-year periods. The current agreement runs until the end of 2006, and the Commission has sought in this Communication to carry out a mid-term review of its operation.

The current document

  8.2  The Commission points out that the Fisheries Agreement has provided the Community with both catch quotas in Greenland waters and special priority on access to supplementary catch possibilities in those waters, in return for the payment of financial compensation. It also provides that the Community's catch quotas may be taken by non-Community vessels to the extent this is necessary for the proper functioning of fisheries agreements between the Community and third countries, such as the Faroes, Iceland and Norway. In addition, however, the Agreement is intended to facilitate development, and the money given to Greenland for this purpose (equal to the financial assistance it received when it was part of the Community) is made available only through the Agreement. As a consequence, Greenland (unlike other OCTs) cannot receive financial assistance from the European Development Fund, and it has also managed its development policy in an autonomous way, rather than in co-operation with the Community.

  8.3  Against this background, the Commission says that the operation of the Fisheries Agreement must be assessed in the light of the overall situation in Greenland. In particular, it points not only to the problems arising from the country's huge reliance on fisheries as a means of meeting its almost total dependence on imports, but also to the particular difficulties arising from its climate and widely dispersed population, and to the dangers posed by such factors as the depletion of the fish stocks, global pollution, climate change, and plans for increased oil and gas activities in the Arctic. The Commission also comments on the relative weakness of the private sector within Greenland, and the consequent need for large-scale public interventions from the Danish Government.

  8.4  The Communication goes on to suggest that, although the Fisheries Agreement has provided undoubted benefits for both Greenland and the Community, there are a number of persistent and growing shortcomings. In particular:

  • the quantities of fish available have been worth very much less than the level of financial compensation, and in practice the quantities actually caught have been much lower than the quotas provided for;

  • unlike the fisheries agreement with other countries, there is no specific provision for targeted action to support Greenland's efforts to modernise or restructure its fisheries sector, leading to criticism by the Court of Auditors and European Parliament about the lack of transparency and the need for compliance with the usual budgetary rules on development co-operation;

  • the link in the Agreement between the financial contribution paid and the amount of fish caught encourages over-exploitation of the stocks.

  8.5  The Commission therefore suggests that:

  • the Protocol should be adjusted to ensure greater transparency and consistency with overall Community rules on budgetary and development policy;

  • there is a strategic need to broaden and strengthen the future relations between the Community and Greenland, linking it with more general moves towards sustainable development in the Arctic region.

  8.6  More specifically, it proposes a two-stage approach under which the arrangements until 2006 would be amended to stop the over-exploitation of the stocks by reducing the amount of fish the Community receives from Greenland, whilst providing the same amount of compensation. In addition, some of this compensation would be ear-marked for the structural reform of the Greenland fishing industry. As from 2007, any payments under the Agreement would relate only to fishing opportunities, with development aid being provided under a new "partnership for sustainable development", which might perhaps replace Greenland's OCT status.

The Government's view

  8.7  In his Explanatory Memorandum of 7 January 2003, the Parliamentary Under-Secretary of State (Commons) at the Department for Environment, Food and Rural Affairs (Mr Elliot Morley) says that in general the UK welcomes the aim of making these arrangements more transparent, and of structuring the fisheries aspects separately from Greenland's development needs. He adds that this would address criticisms that the agreement provides poor value for money as compared with other fisheries agreements.

  8.8  However, the Minister also points out that the agreement is valuable, both in helping to balance agreements with the Faroes, Iceland and Norway, and in providing opportunities for UK distant water fishermen, even though these are at present very limited in practice, especially for cod.[24] The Government is therefore conscious of the need to be careful about any attempts to reduce the available fishing opportunities, particularly in view of the fleet's current difficulties, and the Minister stresses the need for any adjustment to maintain the possibility of increased fishing opportunities for the Community should the stocks recover.

Conclusion

  8.9  Although the main impact of this Communication seems likely to be on Greenland's wider relationship with the Community, there could clearly be implications in both the short and long term for the catching opportunities available in the area for Community vessels, including those from the UK. As we have noted, these are at present limited, but they could nevertheless be of some potential significance, particularly in view of the constraints currently faced by the fishing fleet in other waters nearer home. For that reason, we think it right, in clearing the document, to draw it to the attention of the House.


24  The UK quotas agreed for 2003 provide for 364 tonnes of cod, 280 tonnes of redfish, 193 tonnes of Greenland halibut, and 86 tonnes of Roundnose Grenadier. Back


 
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