12 Financing the implementation of the
Common Fisheries Policy
| (26502)
8142/05
COM(05) 117
+ ADD 1
| Draft Council Regulation establishing Community financial measures for the implementation of the Common Fisheries Policy and in areas of the Law of the Sea
Commission Staff Working Paper: Annex to the draft Council Regulation establishing Community financial measures for the implementation of the Common fisheries Policy and in areas of the Law of the Sea - Extended Impact Assessment
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| Legal base | Article 37EC; consultation; QMV
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| Document originated | 6 April 2005
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| Deposited in Parliament | 17 May 2005
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| Department | Environment, Food and Rural Affairs
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| Basis of consideration | EM of 23 May 2005
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| Previous Committee Report | None, but see footnotes
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| To be discussed in Council | No date set
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| Committee's assessment | Politically important
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| Committee's decision | Not cleared; further information requested
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Background
Section 1.80 12.1 Following the publication in May 2002 of
the Commission's "Roadmap" Communication[43]
and other related documents, the Council agreed at the end of
that year certain reforms of the Common Fisheries Policy (CFP).
These were based upon a number of fundamental principles, notably
the need for a long-term approach aimed at managing Community
fish stocks in a sustainable manner, founded upon clear and well-researched
scientific advice and with the closer involvement of other stakeholders;
the need for more effective rules for limiting fishing capacity;
the need to strengthen control and enforcement; and increased
cooperation with third countries, either through bilateral agreements
or through measures taken by regional fisheries organisations.
Section 1.81 12.2 These principles have been given legal effect
by the Council, most notably in Regulation (EC) No. 2371/2002
on the conservation and sustainable exploitation of fisheries
resources,[44] but they
also require a number of other measures, as well as individual
Decisions establishing fisheries agreements with third countries,
which have enabled the Community to make a financial contribution
towards expenditure in areas concerned. Many of the provisions
in question expire at the end of 2006, and, although the Commission
believes they have been successful in helping to achieve the various
policy objectives, it sees a continuing need for them, particularly
in the light of last year's EU enlargement. It has therefore sought
in this document both to provide a legal basis for Community financial
assistance during the period of the new financial perspectives
(2007-2013),
and to bring this within a single measure, alongside that put
forward in July 2004 for the financing of structural measures
through the European Fisheries Fund.[45]
The current proposal
Section 1.82 12.3 The Commission notes that,
since the main objectives of the CFP referred to above were established
in the course of the 2002 reforms, their economic, social and
environmental implications have already been assessed. Consequently,
it suggests that the crucial objective now is to ensure that any
financial contributions by the Community in these areas is streamlined
and effective, and it proposes setting specific objectives for
each of the following areas:
Control
and enforcement
The Commission says that the aim is to improve the
control of fishing activities so as to avoid damaging the conservation
of resources both within and outside Community waters, by providing
Member States with financial support to reduce weaknesses in their
control activities, by evaluating and controlling their application
of the rules of the CFP, and by improving communication and dialogue
between those involved in the sector and with the general public.
Financing under the proposed Regulation would also provide for
expenditure relating to the activities of Commission Inspectors,
and for the administrative and operating expenses of the Community
Fisheries Control Agency (CFCA).
Data collection
and improvement of scientific advice
Financing would be provided for measures relating
to programmes for the collection of data needed to evaluate the
state of fish stocks and of the industry, particularly as regards
the establishment on a multi-annual basis of data incorporating
biological, environmental and economic information. Financial
support would be provided for partnership contracts with national
research institutions or contributions to relevant international
bodies, and for arrangements with Community consultative bodies
to provide the secretariat to the Scientific, Technical and Economic
Committee for Fisheries (STECF), and to conduct the pre-analysis,
evaluation and preparation of data.
Governance
of the CFP
The proposal provides for expenditure in relation
to the Advisory Committee on Fisheries and Aquaculture (ACFA)
and the Regional Advisory Councils (RACs), including in the latter
case the financing of their operating costs during the start-up
phase, as well as translation and interpreting costs. It also
provides for financing the costs of disseminating information
relating to the CFP to relevant stakeholders.
International
cooperation
A Community contribution would be made to expenditure
relating to fisheries agreements with third countries and for
mandatory or voluntary contributions to the funds of international
organisations, including United Nations bodies. It could also
include support for preparatory works for the establishment of
new organisations or treaties relating to fisheries and to the
Law of the Sea, which are of particular interest to the Community.
The proposal also sets out the more detailed measures
in each of these areas which would be eligible for Community funding.
Section 1.83 12.4 The proposal lays down procedures
for establishing Community and national programmes, for the granting
of financing by the Commission, including rates and conditions
of financing, and for the adoption and content of detailed rules.
It includes provisions to ensure that Community funds have been
used in accordance with the conditions laid down, to prevent fraud,
to enable the Commission and the Court of Auditors to carry out
checks, and for the reduction, suspension or recovery of financial
assistance granted.
Section 1.84 12.5 The proposal suggests that
expenditure of €375 million should be provided in each of
the years from 2007 to 2013, making a total of €2,625 million
over the period in question. €6.5 million of the annual amount
would be for administrative expenditure, whilst the balance of
€368.5 million would be devoted to operational expenditure.
This in turn would be divided between control and enforcement
(€67.5 million); data collection and scientific advice (€69
million); governance (€4.5 million); and relations with third
countries (€227.5 million, of which all but a small amount
would be used to finance fishing agreements providing access to
Community vessels in third country waters).
The Government's view
Section 1.85 12.6 In his Explanatory Memorandum
of 23 May 2005, the Minister for Nature Conservation and Fisheries
at the Department for Environment, Food and Rural Affairs (Mr
Ben Bradshaw) says that the UK welcomes the proposal to bring
together all the various components of the CFP, apart from the
European Fisheries Fund, in a single framework. However, he points
out that the proposed expenditure of €2.6
billion forms part of the €7.8
billion overall budget for European fisheries, and is part of
a package of measures related to Community spending for 2007-2013,
for which the Commission has proposed a budget of 1.24% of Community
GNI, as compared with the view taken by the UK (and others) that
the Community's priorities can be funded by a budget stabilised
at 1% of GNI. He adds that the budgets for agriculture and fisheries
will need to be consistent with this latter figure, and that,
in the case of the provisions in this proposal relating to the
financing of data collection, much will in any case depend upon
the implementing regulations needed to implement the framework
laid down, which are not fully known at the moment (for example
as regards the expenditure needed to cover the increase in the
number of Member States and the data to be collected on the environmental
impact of fishing).
Conclusion
Section 1.86 12.7 As the Commission has pointed
out, the main objectives for the Common Fisheries Policy were
established in the course of the reforms agreed at the end of
2002, and, to the extent that the various measures need to be
implemented properly, there are good grounds for a continuing
financial contribution by the Community. However, as with numerous
other proposals currently before the House — including that
dealing with the European Fisheries Fund — the actual level
of funding depends upon the outcome of the discussions on the
future overall budgetary ceiling for the Community. For that
reason alone, we think it right to continue to hold this document
under scrutiny, pending further developments on this last point,
though we also note the Minister's comments that, in certain aspects
of this proposal, much will in any case depend upon decisions
yet to be taken.
Section 1.87 12.8 In the meantime, there are
two aspects of the proposal on which we would welcome further
information. First, the Minister says that the proposed expenditure
of €2.6 billion forms part of the €7.8 billion overall
budget for European fisheries, and we assume that the balance
would be accounted for by the expenditure envisaged under European
Fisheries Fund. Secondly, it is not immediately clear how the
figure of €2.6 billion relates to current levels of Community
expenditure in the areas covered by this proposal. We would be
grateful if the Minister could clarify these two points.
43 (23511) COM(02) 181; see HC 152-xxxv (2001-02),
para 1 (3 July 2002) and HC 152-xxxviii (2001-02), para 1 (16
October 2002). Back
44
OJ No. L. 358, 31.12.02, p.59. Back
45
See (25861) 11493/04:HC 42-xxxii (2003-04), para 6 (13 October
2004). Back
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