Commission proposes action plan to counter the socio-economic impact of stock

Commission proposes fisheries Action Plan to counter the socio-economic impact of stock depletion

Brussels, 6 November 2002

The European Commission has proposed an action plan to respond to the potential social, economic and regional consequences of restructuring the fishing industry caused by the dire state of several fish stocks. This action plan, which was prepared after consultations with the Member States, identifies the possible impact of the fishing effort limitation in certain areas for certain stocks proposed by the Commission in the context of the reform of the Common Fisheries Policy (CFP). The measures set out in the action plan should be used by Member States to alleviate the short-term consequences of the proposed conservation measures for affected fishermen and other operators in the fishing industry. They include the reprogramming of € 611 million under the FIFG for social measures and for reducing fleet capacity, specific measures in favour of small-scale fishing, the improvement of living and working conditions on board, as well as social protection in the fisheries sector and measures to help young fishermen. Substantial EU funds can be used to help affected fishermen, vessel owners and other operators to cope with economic and social problems. Currently only 3% of the total amount of financial aid under the FIFG have been programmed for social measures, compared to 22 % for fleet renewal and modernisation. The action plan concludes that although there will be a social cost to reducing fishing effort within the framework of multi-annual management plans, the cost of postponing the measures required by the present over-exploitation of common fisheries resources would be even greater. Bilateral consultations with Member States have confirmed that it is not possible at this stage to make a reliable estimate of affected jobs, as no decision has been taken yet on multi-annual management plans.

"We have a moral obligation to do all in our power to avoid the disappearance of the fisheries resources on which fishermen and their families depend. This action plan also shows that we will not let them face the social consequences of stock depletion on their own. Substantial EU funds are available, but Member States must make use of them. Should the EU choose not to confront the reality of over-fished stocks and should the present structural aid regime not be modified, the loss of 8.000 jobs every year experienced over the past decade would continue unabated, while the condition of fish stocks would keep deteriorating and perhaps even accelerate. The EU would then be faced with an even worse problem and even greater difficulties to adapt the harvesting power of its enlarged fishing fleet to the ever diminishing productive potential of its dwindling resources.
More radical effort reduction measures would then be imperative, especially for those stocks which by then might have collapsed. n the absence of agreement on the CFP reform before the end of the year, FIFG aid to the renewal of the fleet will automatically cease since the fourth Multi-Annual Guidance Programme for the fleet ends on 31 December 2002", Franz Fischler, Commissioner responsible for Agriculture, Rural Development and Fisheries, said.

Measures to support the restructuring of the fisheries sector
In addition to measures already proposed in the CFP reform package and to measures foreseen under existing structural funds' programmes(1), the Commission proposes further actions to help the fisheries sector cope with the effects of restructuring. These actions, which would have to be financed under the current financial perspectives for 2000-2006, include:

· reprogramming available funds: up to € 611 million should be made available under the FIFG for reducing fleet capacity and for social measures following the discontinuation, as of 2003, of aid to renew and modernise the fleet and to transfer fishing vessels to third countries, as proposed by the Commission in the CFP reform package. Reprogramming of the other structural funds' interventions is also possible and Member States can review their national programmes to channel more aid to the fisheries sector and fisheries dependent areas;

· specific measures in favour of small-scale fishing, which represents 70 % of all EU fishing vessels and almost 50 % of employment in the catching sector. These can include reserving to small-scale fleets certain coastal fishing grounds (for instance the 12-mile zone) and a given share of the fishing effort to be allocated to Member States under multi-annual management plans, or adapting the structural aid regime to the needs of those fleets in order to maintain employment in coastal areas;

· improving the image of the sector by improving living and working conditions, as well as social protection, in the fisheries sector. The Commission also proposes measures to help young fishermen and fishermen wishing to switch from offshore to fishing activities closer to the coast, to buy their first vessel;

· a strategy to support sustainable coastal development by encouraging diversification of activities for fishermen who could combine fishing with other economic activities. This would require the implementation of an integrated approach involving all sectors concerned in coastal development, along the lines of the EU recommendation for Integrated Coastal Zone Management (ICZM).
Assessing the possible socio-economic impact of restructuring

Some of the proposals made by the Commission to reform the CFP are likely to have a substantial short-term impact on economic activity in the fisheries sector; in particular:

· the implementation of fishing effort limitations within the framework of multi-annual management schemes to be put in place for stocks which, according to scientific advice, are outside safe biological limits. That would mean limiting the number of days fishing vessels could spend at sea and could involve the establishment of national tie-up schemes. A reduction of income is likely to occur for affected vessel owners and fishermen. In cases where vessels may have to be tied up for longer periods making them unprofitable, their owners may want to opt for permanent withdrawal of the vessel;

Bilateral consultations with Member States have confirmed that it is not possible at this stage to make a reliable estimate of affected jobs, as no decision has been taken yet on multi-annual management plans. Many Member States have also indicated that the labour shortage in the catching sector, with skippers experiencing increasing difficulties in manning their fishing vessels, could limit the effect on jobs of reduced fishing.

Background
In its communication on the reform of the CFP, adopted in May 2002, the Commission made a commitment to publish, before the end of this year, an action plan to counter the social, economic and regional consequences of the restructuring of the EU fisheries industry. A number of support measures are already available under the FIFG and other structural funds..The budget for the period 2000-2006 amounts to € 3.7 billion, of which € 2.6 billion are earmarked for Objective 1 regions and € 1.1 billion for other areas. FIFG measures include: individual compensatory payments for fishermen losing their jobs as a result of scrapping or permanent withdrawal of their vessel, funding for retraining to find employment outside the fisheries sector, support to national early-retirement schemes, compensations for temporary cessation of activities due to biological circumstances or the non-renewal of fishing agreements with third countries, support to short term operations of collective interest, such as improving sanitary conditions of products and working conditions, training, or improving quality control. More funding is available under the other structural funds to support economic and social conversion in affected regions and for retraining.

(1)mainly within the Financial Instrument for Fisheries Guidance (FIFG), but also within the European Regional Fund (ERDF), the European Social Fund (ESF) and the European Agriculture Guidance and Guarantee Fund (EAGGF)