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Subsidies and overcapacity in the EU Implications of the CFP reform

Subsidies and overcapacity in the EU Implications of the CFP reform . By Franz Lamplmair, European Commission, DG Fisheries. Outline. What is the CFP? Overcapacity in the EU MAGP I – IV Subsidies before the reform Reform: a) conservation b) fleet c) subsidies

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Subsidies and overcapacity in the EU Implications of the CFP reform

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  1. Subsidies and overcapacityin the EUImplications of the CFP reform By Franz Lamplmair, European Commission, DG Fisheries

  2. Outline • What is the CFP? • Overcapacity in the EU • MAGP I – IV • Subsidies before the reform • Reform: a) conservation b) fleet c) subsidies • Results so far / next steps

  3. History of MAGP’s • Multi Annual Guidance Programs • MAGP I-III • The LASSEN report • MAGP IV: - weighted approach - capacity and activity reductions

  4. History of MAGP’s over 20 years(1983 to 2002)

  5. Subsidies before reform • Directly to fleet - Construction - Modernisation - Scrapping - Export / joint ventures - reassignment to other purpose than fishing - Tie up schemes • Other subsidies to catching sector (…)

  6. REDUCTION IN FISHING MORTALITY RECOMMENDED BY SCIENTISTS

  7. EVOLUTION OF THE CAPACITY OF THE EU FLEET

  8. Problems of MAGP: • Too complicated • Not ambitious enough • Implementation not in « real time » • No taking account of technical progress • Rules on capacity and subsidies in various regulatory texts

  9. Results • Reduction of Fleets • Most MS complied with targets But: • Overcapacity continues!

  10. The CFP reform: Management • Multi-annual management plans • Recovery plans • New fleet policy • Control • Transparency and stakeholder involvement

  11. New fleet policy • Entry /exit regime • Decommissioning in the framework of MAMP’s and recovery plans • No capacity increases possible (safety) • No more capacity-enhancing subsidies

  12. Subsidies • For construction: end 2004; stricter entry/exit rule; • For exports: end 2004, stricter conditions • For modernisation: no increase of fishing capacity (no aid for engine replacement);

  13. Progressive constraints on fleet capacity imposed by EU law Extension of MAGP IV Revision of tonnage objectives to take account of re-measurement All fleet has to be measured in GT Conversion of tonnage objectives GRT → GT Re-segmentation of the fleet No more aid to build vessels MAGP IV objectives (expressed in GT* for tonnage) Capacity withdrawn with aid not to be replaced. Capacity built with aid has to be compensated by capacity withdrawn without aid MAGP III objectives MAGP IV objectives (GT* for tonnage) Capacity withdrawn with aid not to be replaced. Entry-exit regime: capacity cannot increase MAGP IV objectives (GRT for tonnage) Capacity withdrawn with aid not to be replaced.

  14. MODEL FOR A DECOMMISSIONING SCHEME

  15. More information • Web: general: http://europa.eu.int/comm/fisheries/ • Financial aid 94-99: http://europa.eu.int/comm/fisheries/structures/pdf/exec_navires.pdf • TAc’s and quotas: http://europa.eu.int/comm/fisheries/doc_et_publ/pub_en.htm#map • E.mail: Fisheries-Info@cec.eu.int • Postal: European Commission, DG Fisheries, Communication and Information unit, Rue de la loi 200, B-1043 Brussels

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