Select Committee on European Scrutiny Third Report


9 European Fisheries Fund

(25861)

11493/04

COM(04) 497

Draft Council Regulation establishing a European Fisheries Fund

Legal baseArticle 37EC; consultation; QMV
DepartmentEnvironment, Food and Rural Affairs
Basis of considerationMinister's letter of 30 November 2006
Previous Committee ReportHC 42-xxxii (2003-04), para 6 (13 October 2004) and HC 34-xxxii (2005-06), para 11 (21 June 2006)
Discussed in Council20 June 2006
Committee's assessmentPolitically important
Committee's decisionCleared (decision reported on 21 June 2006)

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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