The European Parliament adopted a resolution based on the own-initiative report by Pedro GUERREIRO (GUE/NGL, PT) in response to the Commission communication on improving the economic situation in the fishing industry. (Please see the summary of 28/08/2006.)

The committee adopted the own-initiative report drawn up by Pedro GUERREIRO (GUE/NGL, PT) in response to the Commission communication on improving the economic situation in the fishing industry. The report regretted the "lack of ambition" shown in the Commission's paper and deplored a policy which, "taking advantage of the socio-economic deterioration in the industry owing to the steep rise in fuel prices, seeks to promote the scrapping of vessels and the permanent cessation of activities".

The committee criticised the fact that the measures proposed did not have a genuine socio-economic dimension and did not take account of "the consequences of their implementation for vessel crews". As far as intermediate measures were concerned, MEPs regretted that, as regards rescue and restructuring aid, the Commission was continuing to block the possibility of granting compensatory payments and operating aid. They therefore stressed the need to adopt "immediate concrete measures" to reduce the high instability of fuel prices for the industry, including the creation of a guarantee fund with Community participation to safeguard the stability of fuel prices and the granting of a transitional compensatory payment for fishing enterprises affected.

With regard to medium and long-term measures, the committee also criticised the lack of vision in the new European Fisheries Fund's approach to aid for engine replacement and said that some of the proposed measures would make certain fishing practices virtually unviable and could affect safety as well as possibly encouraging increased fraud in the form of under-declaring of engine power. The report stressed the need for the EFF to continue to grant aid for the renewal and modernisation of the fishing fleet - and in particular for the replacement of engines - especially for small-scale inshore and artisanal fishing, and for the replacement of vessels over 20 years old, which are no longer operating safely.

The Commission was also urged to recognise the specific nature of small-scale inshore fishing and artisanal fishing in the CFP, to analyse the extent to which the current instruments are suitable for responding to the sector’s needs, and to submit a proposal for a Community support programme for small-scale inshore fishing and artisanal fishing, which would help to coordinate actions and channel funding from other existing instruments to deal with the specific problems facing this segment of the industry.

Among other points dealt with in the report, the committee called for measures to strengthen the fight against illegal, unreported and unregulated fishing, such as better control mechanisms on the part of the Member States and improved controls at EU borders to prevent the entry into the EU of fish that had been caught illegally. MEPs called on the Commission to review the current common fisheries policy provisions in this area and said that there was a particularly pressing need for regulations to prevent a significant percentage of catches from being discarded.

The committee reiterated Parliament's request to the Commission that it should take a more wide-ranging view of measures to protect the marine environment and rebuild depleted fish stocks, in particular by considering and studying other factors which have a considerable impact on the marine environment and the state of fishery resources, such as coastal and offshore pollution, industrial and agricultural effluents, deep-sea dredging and maritime transport, to complement current management methods. The report called for a Community initiative in this area. Lastly, MEPs stressed that it was essential to achieve a balance between the socio-economic situation and environmental sustainability, and they underlined the need to implement a mechanism for subsidising or compensating fishermen who are affected by the economic and social effects of stock recovery plans or other measures to provide increased protection for ecosystems, especially in less favoured regions.

The Council held an exchange of views on a Communication from the Commission on improving the economic situation in the fishing industry.

Several delegations asked for a simplification of the procedure for granting state aids and suggested amending the legislative framework in line with the adoption of the Regulation establishing the new European Fisheries Fund (EFF). Some delegations insisted on the need to ban aids that may serve to increase fishing capacity or engine power, and to develop incentives for decommissioning vessels. Other delegations, stressing the considerable rise in fuel prices and its negative impact on fishermen's incomes, asked for a temporary and exceptional increase of the de minimis aid and for a relaxing of the existing guidelines on state aids.

PURPOSE: Commission Communication on improving the economic situation in the fishing industry.

CONTENT: the reform of the Common Fisheries Policy, increased fuel prices, stagnating market prices and lower fishing yields, have all contributed to real hardship within the EU’s fishing community. In this Communication, the Commission has identified the sources of these economic difficulties and suggests way in which these challenges can be addressed firstly, from a short-term perspective and secondly from a more long-term perspective.

Short-term rescue and restructuring: The principle means for addressing, on a short-term basis, the challenges facing the fishing industry would be through providing state aid to enterprises under the “Rescue and Restructuring Guidelines”. This rescue aid has been defined as a short-term initiative and can be used to keep an ailing enterprise financially afloat for the time needed to work out a restructuring and liquidation plan. Such rescue aid, which may not last longer than six months, must take the form a reimbursable loan or guarantee. Where the rescue aid is followed by an approved restructuring plan, the rescue aid can be repaid with support received by the firm in the form of restructuring aid. Other sources of aid include measures for the modernisation of equipment. The exact requirements are set out in the Financial Instrument for Fisheries Guidance (FIFG) Regulation. The Commission also states that it is ready to examine national “rescue and restructuring aid schemes” for SME’s set up in the Member States. As far as direct aid for fuel costs are concerned, the paper remarks that a “guarantee scheme” could be considered, whereby money paid in by the industry in favourable times could be repaid as compensation in the event of sudden increases in operating costs – such as fuel prices rises. However, such a scheme could only be approved if it were to provide guarantees of reimbursement of all public aid under commercial conditions, which in the current economic climate seems very unlikely.

Longer-term measures and initiatives: The long term prospects for the industry can only be assured in the context of recovered fish stocks and sustainable fishing practices. This can be achieved by improving fisheries management through tools such as moving toward “maximum sustainable yields” or MSY; better economic management of fisheries; improving the governance of the fisheries policy; matching fishing effort to available resources and improved enforcement and control. Other long term objectives include: stepping up the fight against illegal, unreported and unregulated fishing, preparing a code of conduct on fish trade in the EU as well as promoting research on fuel efficient and friendly fishing methods.

The report concludes by noting that there is no easy solution to the current difficulties faced by the EU’s fishing industry. It is, however, possible to inject new life into the fishing industry.

PURPOSE: Commission Communication on improving the economic situation in the fishing industry.

CONTENT: the reform of the Common Fisheries Policy, increased fuel prices, stagnating market prices and lower fishing yields, have all contributed to real hardship within the EU’s fishing community. In this Communication, the Commission has identified the sources of these economic difficulties and suggests way in which these challenges can be addressed firstly, from a short-term perspective and secondly from a more long-term perspective.

Short-term rescue and restructuring: The principle means for addressing, on a short-term basis, the challenges facing the fishing industry would be through providing state aid to enterprises under the “Rescue and Restructuring Guidelines”. This rescue aid has been defined as a short-term initiative and can be used to keep an ailing enterprise financially afloat for the time needed to work out a restructuring and liquidation plan. Such rescue aid, which may not last longer than six months, must take the form a reimbursable loan or guarantee. Where the rescue aid is followed by an approved restructuring plan, the rescue aid can be repaid with support received by the firm in the form of restructuring aid. Other sources of aid include measures for the modernisation of equipment. The exact requirements are set out in the Financial Instrument for Fisheries Guidance (FIFG) Regulation. The Commission also states that it is ready to examine national “rescue and restructuring aid schemes” for SME’s set up in the Member States. As far as direct aid for fuel costs are concerned, the paper remarks that a “guarantee scheme” could be considered, whereby money paid in by the industry in favourable times could be repaid as compensation in the event of sudden increases in operating costs – such as fuel prices rises. However, such a scheme could only be approved if it were to provide guarantees of reimbursement of all public aid under commercial conditions, which in the current economic climate seems very unlikely.

Longer-term measures and initiatives: The long term prospects for the industry can only be assured in the context of recovered fish stocks and sustainable fishing practices. This can be achieved by improving fisheries management through tools such as moving toward “maximum sustainable yields” or MSY; better economic management of fisheries; improving the governance of the fisheries policy; matching fishing effort to available resources and improved enforcement and control. Other long term objectives include: stepping up the fight against illegal, unreported and unregulated fishing, preparing a code of conduct on fish trade in the EU as well as promoting research on fuel efficient and friendly fishing methods.

The report concludes by noting that there is no easy solution to the current difficulties faced by the EU’s fishing industry. It is, however, possible to inject new life into the fishing industry.