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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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