20 June 2006

A NEW European funding mechanism for the fishing, aquaculture and processing industries will help the sector to adapt to changing circumstances, according to Scottish fisheries minister Ross Finnie.

An agreement on the new European Fisheries Fund, which is to replace the FIFG grant scheme from next year, was reached yesterday (Monday) at the European Council in Luxembourg.

The new fund is tailor-made to secure a sustainable European fishing and aquaculture industry, according to the European Commission, and will also support fishing communities affected by changes in the industry.

The fund will run for seven years and has an overall budget of £3.8 billion euros (£2.71 billion)

The EFF is intended to give priority to the following five key aims:

- helping the fleet adapt fishing capacity and effort to available fish resources;
- support to the various industry branches;
- aid for organisations which represent the collective interest of the sector;
- sustainable development of fisheries-dependent areas; and
- technical assistance to member states to facilitate the delivery of aid.

In future, EU member states will have to draw up a national strategic plan for the entire fisheries sector, and all assistance will be channelled through a single national EFF programme, rather than the many different programmes.

The new fund also contains a number of measures not initially proposed by the Commission, such as:

- aid for engine replacement on grounds of safety and fuel efficiency, on condition that the engine power of the vessels concerned is either equal or smaller depending on the size and type of vessels;
- extended aid and compensation for both permanent and temporary cessation of fishing activities, which can now include such cases as reassignment of vessels to non-fishing activities and the creation of artificial reefs, closure of fisheries for public health reasons, or due to high concentration of juveniles or spawning fish; and
- aid in the aquaculture, processing and marketing sectors to include medium-sized and some large enterprises, though small and micro enterprises still have to be given priority.

Yesterday, Mr Finnie welcomed the agreement. He said: “We fought hard to ensure that the scope of the new regulation would not undermine the difficult conservation measures we have taken in Scotland to match fleet capacity to available stocks in recent years.

“I believe the agreement reached today reflects that position as it allows the use of EFF grants to aid the purchase of replacement engines but attaches conditions to prevent any increase in the European fleet capacity as a result.

“The EFF will help key Scottish sectors continue to adapt to changing circumstances within the fisheries and aquaculture industries and I would encourage businesses to take advantage of the grants when they become available from 2007."

Fisheries commissioner Joe Borg added: “The agreement reached today strikes the right balance between helping the sector regain and retain its competitiveness and support for sustainable and more environmentally friendly fisheries and aquaculture. The EFF will also help fishing areas strengthen their economic base.”