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EU Extends Aid For Improving Vessel Safety, Hygiene And Engine Efficiencyff

16 October 2006 European Union

The European Commission has adopted a proposal amending some rules of the Common Fisheries Policy to extend existing public aid for the enhancement of safety, hygiene, working conditions, product quality and energy efficiency on board fishing vessels .

 

This proposal follows on from the adoption on 27 July 2006 of the European Fisheries Fund (EFF), which will be the key funding mechanism for the fisheries sector and fisheries communities as of 1 January 2007. In line with the Common Fisheries Policy, EFF aid will not be used for measures that increase the fishing capacity of the European fleet. The EFF does however allow aid to be allocated to replace old engines with new but smaller engines, and for the creation of a ‘GT (tonnage) bank’ to promote better safety and hygiene conditions. Though these new measures will not lead to any increase in capacity, they do nevertheless require changes to the existing Basic Regulation of the CFP.

The modifications being introduced will encourage the gradual phased reduction in fleet capacity, which the Commission wants to see, while assisting those vessel-owners who actively seek to improve the working conditions of their crew and the quality of the products they offer to consumers. The second of the two modifications also illustrates the importance, which the Commission attaches to reducing fuel consumption in the industry, which is vital for both environmental and economic sustainability. In both cases, the aid permitted is to be granted in line with very strict conditions, which guarantee that it cannot lead to any increase in fishing capacity.

The modifications proposed make two specific changes to the text of the Basic Regulation.

- Adjustment of fishing capacity: previously, all tonnage withdrawn with public aid as of 1 January 2007 was to be permanently withdrawn, with no possibility of its being reintroduced. This would create a new reference level under the ‘Entry/Exit’ scheme, which governs fleet capacity. Aid to improve safety on board, working conditions, hygiene and product quality was to be limited to work on the superstructure of vessels over five years old. It was also conditional on the new capacity not increasing the ability of the vessel concerned to catch fish. The proposed modification allows Member States to create a 'GT bank', whereby up to 4% of the tonnage withdrawn with public aid may be reallocated to vessels of any age (new or existing) to cover these specific types of modernization work, whether above or below deck.

- The ‘entry-exit’ scheme and overall capacity adjustment: previously, it was not possible to grant public aid for the replacement or renewal of engines. The proposed modification will allow Member States to provide aid for engine renewal on condition that the new engine has at least 20% less power than the one which it replaces, and that this reduction in power is permanently deducted from the reference level of the fleet (i.e. constitutes a permanent reduction in the capacity of the fleet of the Member State concerned).

The Commission believes that these two measures, taken together, will lead to further real reductions in the fishing capacity of the European fleet, while encouraging the industry to improve the conditions in which fishers work, and reduce the environmental impact of their activities.

From the beginning of next year, the EFF will replace the Financial Instrument for Fisheries Guidance (FIFG). The EFF has been designed from the outset as an instrument to support the CFP’s core objectives of biological, economic and social sustainability. It will run for seven years from 1 January 2007 to 31 December 2013, with a budget of €3.849 billion.