9 European Fisheries Fund
| (25861)
11493/04
COM(04) 497
| Draft Council Regulation establishing a European Fisheries Fund
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| Legal base | Article 37EC; consultation; QMV
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| Department | Environment, Food and Rural Affairs
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| Basis of consideration | Minister's letter of 30 November 2006
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| Previous Committee Report | HC 42-xxxii (2003-04), para 6 (13 October 2004) and HC 34-xxxii (2005-06), para 11 (21 June 2006)
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| Discussed in Council | 20 June 2006
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| Committee's assessment | Politically important
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| Committee's decision | Cleared (decision reported on 21 June 2006)
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Background
9.1 The Common Fisheries Policy (CFP) has long had alongside its
core conservation function a structural policy aimed at modernising
the fisheries sector, and in particular adjusting catching capacity
within the Community. The main elements of that policy are currently
contained in the measures financed under the Financial Instrument
for Fisheries Guidance (FIFG). The latter runs until the end of
2006, and the Commission therefore put forward in July 2004 the
current document proposing the establishment of a new European
Fisheries Fund (EFF) to run from 2007 to 2013.
9.2 This identified a number of priority areas for Community funding,[22]
but, although the Commission sees the EFF playing a more direct
role than its predecessor, the measures envisaged replicate in
many respects those already in place. It also pointed out that
it would be necessary to restrict the areas eligible for assistance,
and that, in allocating the available funds between the Member
States, regard should be paid first to the "Convergence"
objective,[23] with resources
allocated to other regions according to the size of the fisheries
sector in the Member State concerned, the scale of adjustment
needed to the fishing effort, and the level of employment in the
fisheries sector. However, it gave no details of allocations to
individual Member States
9.3 In their Report of 13 October 2004, our predecessors noted
that the UK regarded the measures proposed as compatible with
the support which a report by the Prime Minister's Strategy Unit
had given to the provision of grant aid to the industry. However,
they also noted that the proposal was part of a package of measures
relating to Community spending for 2007-2013, and they therefore
decided that, as with a number of other proposals then before
the House, it would be right to continue to hold this document
under scrutiny, pending a decision on the overall budget ceiling.
9.4 We were subsequently told that the agreement reached by the
Council in December 2005 on the budgetary ceiling would result
in €3,849
million being available to the EFF in the period 2007-2013,
but that there was as yet no breakdown between Member States.
Consequently, in deciding on 21 June 2006 to clear this proposal,
we asked the Government to let us know when the financial allocation
for individual Member States had been agreed, and what share would
be earmarked for the UK.
Minister's letter of 30 November 2006
9.5 We have now received from the Minister for Local
Environment, Marine and Animal Welfare at the Department of Environment,
Food and Rural Affairs (Mr Ben Bradshaw) a letter of 30 November
2006, indicating that €43.15 million
is available for convergence areas (Cornwall, west Wales, and
the Highlands and Islands) over the seven year programme, and
€94.68
million for the non-convergence areas.
Conclusion
9.6 We note from the latest information provided
by the Minister that the UK will receive a total allocation of
€137.83
million, which we calculate to be just under 3.6% of the overall
budgetary provision — a proportion which we understand largely
reflects the fact that about three-quarters of the budget is ear-marked
for the convergence areas. Notwithstanding our earlier clearance
of the document, we think it right to draw this outcome to the
attention of the House.
22 Notably measures to adjust the Community fleet;
support for the sustainable development of aquaculture and for
the processing and marketing of fisheries and aquaculture products;
measures which promote the collective benefit of the industry;
encouraging the sustainable development of coastal fishing areas;
and technical assistance towards implementation of the proposed
Regulation. Back
23
Used by the Berlin Council in 1999, and intended to be fair to
regions affected by the "statistical effect" of enlargement. Back
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