Proposal for a Council Regulation (EC) laying down the detailed rules and arrangements regarding community structural assistance in the fisheries sector
C 16/12 EN Official Journal of the European Communities 21. 1. 1999 II (Preparatory Acts) COMMISSION Proposal for a Council Regulation (EC) laying down the detailed rules and arrangements regarding Community structural assistance in the fisheries sector (1999/C 16/11) (Text with EEA relevance) COM(1998) 728 final - 98/0347(CNS) (Submitted by the Commission on 16 December 1998) THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Articles 42 and 43 thereof, Having regard to the proposal from the Commission, Having Parliament, regard to the opinion of the European Having regard to the opinion of the Economic and Social Committee, (1) Whereas Council Regulation (EC) No. Ø. Ø. laying down general provisions on the Structural Funds defines the general objectives and tasks of the Structural Funds and the financial instrument for "FIFG’, fisheries guidance, hereinafter called the their organisation, the programming and general organisation of the aid provided by the Funds and the general financial arrangements; the assistance methods, to the restructuring of contributes the sector, alongside the assistance from the Structural Funds; whereas the Council must lay down detailed rules for the use of this financial instrument, having regard, in particular, to Council Regulation (EC) No. Ø. Ø. on the financing of the common agricultural policy; (3) Whereas Council Regulation (EEC) No 3760/92 of 20 December 1992 establishing a Community system for fisheries and aquacultureØ(˛) lays down the objectives and general rules of the common fisheries policy; whereas the development of the in particular be Community fishing fleet must regulated according the Council is called upon to take by virtue of Article 11; whereas it is for the Commission to translate these decisions into precise measures at the level of each Member State; whereas, furthermore, Council Regulation (EEC) No 2847/93 of 12 October 1993 the establishing a control system applicable common fisheries policyØ(ˇ) must be complied with; the decisions that to to (2) Whereas the Guarantee Section of the European Agricultural Guidance and Guarantee Fund, hereÜ inafter called the "EAGGF Guarantee Section’, also (˛) OJ L 389, 31. 12. 1992, p. 1. Regulation last amended by Regulation (EC) No 1181/98 (OJ L 164, 9. 6. 1998, p. 1). (ˇ) OJ L 261, 20. 10. 1993, p. 1. Regulation last amended by Regulation (EC) No 686/97 (OJ L 102, 19. 4. 1997, p. 1). 21. 1. 1999 EN Official Journal of the European Communities C 16/13 (4) Whereas Council Regulation (EC) No sector. Ø. Ø. [on structural measures in the fisheries sectorü defines the specific purpose of structural measures in the including fisheries and aquaculture the its products, industry processing and marketing hereinafter called sector’; whereas under Article 5 the Council must decide, no later than. Ø. Ø. , on the terms and conditions of the contribution of the FIFG and EAGGF Guarantee Section to the restructuring of the sector in order to ensure that this restructuring achieves its intended objectives; "the (5) Whereas provisions the programming should be fixed; concerning the (6) Whereas the multiannual guidance programmes for the fishing fleets for the period from 1 January 1997 to 31 December 2001 are to remain in force until they expire; whereas appropriate provisions should be laid down for the period commencing on 1 January 2002; (7) Whereas the provisions for the monitoring and implementation of guidance in particular programmes concerning the mechanism of fleet entries and exits as well as the delimitation of public aid for the renewal of the fleet, the modernisation of vessels and the establishment of joint ventures; the multiannual specified, should be (8) Whereas small scale coastal fishing has a special status in terms of the objectives for fishing effort adjustments; whereas it is important that this speciÜ ficity is translated into concrete measures at the level of the present regulation; (9) Whereas socio economic accompanying measures will be needed to implement the restructuring of the fishing fleets; (10) Whereas the detailed rules should be fixed for the granting of aid for the protection of the fisheries resources of marine coastal zones, for aquaculture, for equipment in fishing ports, for processing, for marketing and for the promotion of fisheries and aquaculture products; (11) Whereas certain measures in benefit of producers implemented under organisations currently being Council Regulation (EEC) No 3759/92 of 17 December 1992 on the common organisation of the market Ø(˛) should be included among the structural measures in fishery and aquaculture products as well as other measures of collective undertaken by the professionals; interest (12) Whereas detailed rules should be fixed for the granting of indemnities and financial compensation to in cases of temporary cessation of activity or of technical restrictions applied fishing methods; fishermen and vessel owners, to certain gears or (13) Whereas the programmes must envisage the means necessary for the execution of innovative actions and technical assistance; (14) Whereas achieving a their resources and lasting balance between marine exploitation and environmental impact represent important interest for the fisheries sector it is as important, therefore, to provide for appropriate measures to preserve the trophic chain as it is to provide for aquaculture and the fish processing industry; (15) Whereas, in so far as such measures are not limited to the granting of Community aid, it is appropriate in particular to regulate State aid schemes in this sector, without prejudice to Articles 92, 93 and 94 of the Treaty, and to integrate the programming of the restructuring of Community fishing fleets in a coherent manner structural in assistance as a whole, the context of regarding Community (16) Whereas Council Regulation (EC) No 3699/93 of 21 December 1993 laying down the criteria and structural arrangements assistance in the fisheries and aquaculture sector and the processing and marketing of its productsØ(ˇ) as well as other provisions should be repealed; whereas at the same time, for the proper execution of the aid, actions and projects approved up until 31 December 1999 the repealed provisions should remain applicable to this effect; HAS ADOPTED THIS REGULATION: Article 1 Objectives frame of 1. Ú This Regulation provides a policy reference for all structural measures in the fisheries sector carried out in the territory of a Member State, without prejudice to regional particularities. (˛) OJ L 388, 31. 12. 1992, p. 1. Regulation last amended by Regulation (EC) No 3318/94 (OJ L 350, 31. 12. 1994, p. 15). (ˇ) OJ L 386, 31. 12. 1993, p. 1. Regulation last amended by Regulation (EC) No 25/97 (OJ L 6, 10. 1. 1997, p. 7). C 16/14 EN Official Journal of the European Communities 21. 1. 1999 2. Ú Structural policy in this sector, aims at guiding and speeding up restructuring. Restructuring shall comprise actions such as the adaptation of capacity, renewal, rationalisation and modernisation of the means of production and other measures with a lasting effect that contribute to achieving the tasks defined in Article 1(2) of Regulation (EC) No. Ø. Ø. [on structural measures in the fisheries sectorü. Article 2 Means regulationü. However, the rates 0,7Ø% and 0,3Ø% shall be replaced by an overall rate of 2Ø%. TITLE I PROGRAMMING AND IMPLEMENTATION Article 3 Common provisions on programming 1. Ú The definitions in Article 9 paragraph 1 of ReguÜ lation (EC) No. Ø. Ø. apply to the present Regulation. laid down 1. Ú The FIFG and the EAGGF Guarantee Section may, under the conditions in this Regulation, provide assistance for the measures defined in Titles II, III and IV within the fields of application covered by the common fisheries policy as defined in Article 1 of ReguÜ lation (EEC) No 3760/92 and in accordance with the following rules: in accordance with the 2. Ú Programming shall be objectives of the common fisheries policy and with the provisions of the multiannual guidance programmes for the fishing fleets referred to in Article 5. To this end, it may be revised as necessary and in particular at the end of each period of application of the multiannual guidance programmes. (a) In Objective 1 regions, including those referred to in Article 6(1) of Regulation (EC) No. Ø. Ø. [general Funds regulationü, all measures may be part financed by the FIFG exclusively and shall be subject to all the detailed rules laid down in Regulation (EC) No. Ø. Ø. [general Funds regulationü. (b) In Objective 2 areas, except the areas referred to in Article 6(2) of Regulation (EC) No. Ø. Ø. [general Funds regulationü, all measures with the exception of those referred to in Title II of this Regulation and, where applicable, certain measures extending beyond the regional level referred to in Titles III and IV may be part financed by the FIFG exclusively and shall be subject to all the detailed rules laid down in ReguÜ lation (EC) No. Ø. Ø. [general Funds regulationü. (c) Measures not covered by points (a) and (b) of this paragraph may be part financed by the EAGGF Guarantee Fund exclusively and shall be subject to the specific rules laid down in Regulation (EC) No. Ø. Ø. [on the financing of the common agricultural policyü and the provisions adopted for its application, except where this Regulation provides otherwise. 2. Ú The EAGGF Guarantee Section may finance innoÜ vative and technical assistance measures under the same conditions and procedures as those laid down in Articles 21 to 23 of Regulation (EC) No. Ø. Ø. [general Funds Programming shall cover all the fields referred to in Titles II, III and IV. 3. Ú The plans shall demonstrate that public aid is necessary with regard to the objectives pursued, and in particular that without public aid the fishing fleets concerned could not be renewed or modernised and that the planned measures will not jeopardise the long term equilibrium of fishery resources. The contents of the plans shall be as set out in Annex I. 4. Ú For the remainder of the programming period not yet covered by a multiannual guidance programme the programming approved by information shall be specified by Member States when the new multiannual guidance programme is approved, in accordance with its objectives. the Commission, shall be purely indicative; it Article 4 Specific provisions on measures part financed by the EAGGF Guarantee Section 1. Ú Programming shall be done according following rules: to the (a) Each Member State shall present to the Commission a plan covering all the measures envisaged. The plan shall cover a period of seven years beginning on 1 January 2000. 21. 1. 1999 EN Official Journal of the European Communities C 16/15 The plan shall be drawn up by the authority appointed by the Member State for that purpose and submitted to the Commission by the Member State after the partners referred to in Article 8 of ReguÜ lation (EC) No. Ø. Ø. [general Funds regulationü have given their opinion. Each partner shall give its opinion within a time limit such that the deadline provided for in the fourth subparagraph can be complied with. The plan must be presented not later than six months after the entry into force of this Regulation. (b) The Commission shall examine the proposed plans to determine whether they are consistent with this Regulation and the guidelines referred to in Article 9 paragraph 4 of Regulation (EC) No. Ø. Ø. [general the single Funds regulationü. It shall draw up programming document on the basis of the plan, in agreement with the Member State concerned. It shall decide on the EAGGF Guarantee Section in accordance with the procedure laid down in Article 50 of Regulation (EC) No. Ø. Ø. [general Funds regulationü within six months of the presentation of the plan, where the plan contains all the information referred to in Annex 1. the contribution from Article 5 Multiannual guidance programmes for fishing fleets the fisheries sector 1. Ú On the basis of the objectives and measures for restructuring the Council under Article 11 of Regulation (EEC) No 3760/92, the Commission shall, acting in accordance with the procedure laid down in Article 18 of that ReguÜ lation, adopt the multiannual guidance programmes for individual Member States. laid down by 2. Ú The Commission decision referred to in paragraph 1 shall fix, in particular, a series of objectives accomÜ panied by a set of measures for their realisation, allowing fishing effort on an overall, for management of long term basis. supply the Commission with 3. Ú By 1 January 2001 at the latest, Member States shall information specified in Annex II to this Regulation, to be used in drawing up multiannual guidance programmes for the period from 1 January 2002 to 31 December 2006. the The Commission’s decision shall be communicated to the Member State concerned and published in the Official Journal of the European Communities. 2. Ú The authority or body appointed by the Member State to manage the assistance, called the "management authority’ for the purposes of this Regulation, shall be responsible for ensuring that the measures concerned are managed and implemented efficiently and in accordance with the rules. in The measures shall be monitored and evaluated accordance with the principles laid down in Articles 33 to 36 and 39 to 42 of Regulation (EC) No. Ø. Ø. [general Funds regulationü. 3. Ú The Commission shall adopt detailed rules for the application of the procedure laid down in Article 50 of Regulation (EC) No. Ø. Ø. [general Funds regulationü. in accordance with this Article They shall deal, in particular, with: (a) the presentation of plans; (b) the revision of programming documents; Article 6 Monitoring multiannual guidance programmes 1. Ú For the purpose of monitoring the implementation of multiannual guidance programmes, Member States shall transmit to the Commission, before 1 April each year, a document reviewing the progress made with their multiannual guidance programme. Within three months of this deadline the Commission shall forward an annual report to the European Parliament and the Council on the implementation of multiannual guidance programmes throughout the Community. 2. Ú Member States shall transmit to the Commission information on the physical characteristics of fishing vessels and the monitoring of fishing effort by fleet segment and by fishery, particularly as regards the develÜ the corresponding fishing opment of capacities and activities, in accordance with the procedures laid down in Commission Regulations (EC) No 2090/98 of 30 September 1998 concerning the fishing vessel register of the CommunityØ(˛) and Regulation No 2091/98 of 30 September 1998 concerning the segmentation of the Community fishing fleet and fishing effort in relation to the multiannual guidance programmesØ(ˇ). (c) budget planning, particularly to ensure budgetary discipline and participation in the financing; (d) monitoring and evaluation. (˛) OJ L 266, 1. 10. 1998, p. 27. (ˇ) OJ L 266, 1. 10. 1998, p. 36. C 16/16 EN Official Journal of the European Communities 21. 1. 1999 its own 3. Ú At initiative or at the request of the Member State, or under provisions laid down in the multiannual guidance programmes, the Commission may re examine any multiannual guidance programme. adapt and 4. Ú The Commission shall decide whether or not to approve the revisions provided for in paragraph 3 in accordance with the procedure laid down in Article 18 of Regulation (EEC) No 3760/92. 5. Ú For the implementation of this Article, Member States shall apply the provisions of Article 24 of ReguÜ lation (EEC) No 2847/93. TITLE II IMPLEMENTATION OF MULTIANNUAL GUIDANCE PROGRAMMES FOR FISHING FLEETS Article 7 Fleet renewal and modernisation of fishing vessels 1. Ú Fleet renewal and the modernisation of fishing vessels shall be organised in accordance with this Article, Articles 8 to 13. in Article 18 of Regulation (a) Each Member State shall submit to the Commission, for approval in accordance with the procedure laid down (EEC) No 3760/92, permanent arrangements for monitoring fleet renewal. These arrangements must guarantee that fishing capacity is maintained or, where approÜ priate, gradually reduced to attain the intermediate and final objectives fixed in the multiannual guidance programme. (b) The arrangements shall include measures: (i) To determine, each time new capacity is added to the fleet, including modernisation entailing an the corresponding capacity which must be permanently withdrawn. in capacity, increase (ii) To guarantee that no decision authorising the construction or modernisation of a fishing vessel, including the replacement of vessels lost in accidents or wrecks, results in an increase in fishing effort. (iii) In the case of the fleet segment containing vessels less than twelve meters long overall other than trawlers, to guarantee that decisions authÜ orising construction or modernisation do not result in an increase in the aggregate capacity for that segment. (c) The quantified indicators relating to the fishing in the plans, as provided for in Annex I(2) point (d) must be drawn up these arrangements. in accordance with 2. Ú Member States shall ensure that withdrawn vessels are declared as deleted from the registration lists for fishing vessels and from the Community fishing vessel register. They shall also ensure that vessels declared as deleted are permanently excluded in Community waters. fishing from Capacity withdrawn in association with the addition of new capacity within the meaning of paragraph 1, point (b) sub point (i) may be transferred neither to another Member State nor to a third country. Article 8 Adjustment of fishing effort 1. Ú Member States shall take measures to adjust fishing effort the multiannual guidance programmes referred to in Article 5. the objectives of to achieve Where necessary, Member States shall take measures to stop vessels’ fishing activities permanently or to restrict them, in accordance with the applicable provisions of Annex III. 2. Ú Measures activities permanently may be applied only to vessels more than 15 years old. They may in particular include: vessels’ fishing stop to (a) the scrapping of the vessel, (b) permanent transfer of the vessel to a third country, after agreement by the competent authorities of the country concerned, provided such transfer is not likely to infringe international law, affect the conserÜ vation and management of marine resources or other objectives of the common fisheries policy. In this context, the transfer to certain third countries may be excluded from public aid. To that end, the Member States shall indicate in the plans referred to in Articles 3 and 4(1) the list of third countries to which they envisage transferring fishing vessels; (c) permanent reassignment of the vessel in question to uses other than fishing in Community waters. The capacity of vessels that are subject to a measure to stop fishing activities permanently within the meaning of this paragraph may under no circumstances be replaced. The vessels concerned shall be subject to the conditions laid down in the first subparagraph of Article 7(2). 21. 1. 1999 EN Official Journal of the European Communities C 16/17 3. Ú Public aid for final cessation paid to beneficiaries may not exceed the following amounts: 2. Ú In addition to the conditions laid down in Article 8 and Annex III for the grant of a premium for permanent transfer, the following conditions shall apply: (a) Scrapping premiums (i) 15 year old vessels: see Tables 1 and 2 in Annex IV; (ii) vessels from 15 to 29 years old: the scales in Tables 1 and 2 decreased by 1,5Ø% per year over 15. (iii) vessels more than 30 years old: the scales in Tables 1 and 2, less 22,5Ø%. (b) Premiums for permanent transfer to a third country: the maximum amounts for the scrapping premiums referred to in (a) above, less 50Ø%. However, no public aid for this purpose can be given for vessels with a tonnage less than 25 GRT or 27 GT, or more than 30 years old, except under the conditions foreseen in the second subparagraph. (c) Premiums for other cases stopping fishing activities permanently: the the maximum scrapping premiums referred to in (a) above, less 50Ø%. However, no public aid for this purpose can be given for vessels with a tonnage less than 25 GRT or 27 GT, or more than 30 years old, except under the conditions foreseen in the second subparagraph. amounts for (b) and the vessel (c), where is Notwithstanding definitively assigned for the preservation of historical heritage in the territory of a Member State, or for the fisheries research activities of the public or semi public bodies of a Member State, or for the control of fishing activities, in particular by a third country, public aid shall be granted under the conditions given in (a). to Article 17, measures to 4. Ú Without prejudice restrict fishing activities may include restrictions on the fishing days or days at sea authorised for a specific period. Such measures may not give rise to any public aid. Article 9 Joint enterprises to the premium 1. Ú An additional premium for definitive transfer paid under Article 8 paragraph 3 point (b) may be granted to carry out a commercial enterprise project with one or more partners who are nationals of the third country in which the vessel is registered, hereÜ inafter called a "joint enterprise’. the acquisition of holdings (a) The creation and registration of a commercial enterprise, in accordance with the laws of the third country, or in an enterprise that is already registered, for the purpose of engaging in a commercial activity in the fisheries sector in the waters under the sovereignty or the jurisdiction of the third country. The Community partner must hold a significant proportion, generally between 25Ø% and 75Ø%, of the share capital and at least half of the additional premium provided for in paragraph 1 must be invested as cash in the capital of the joint enterprise; (b) ownership of the exported vessel must be transferred to the joint enterprise in the third country. For five years the vessel may not be used for fishing activities other than those authorised by the competent authÜ orities of the third country, nor may it be used by other shipowners. 3. Ú The additional premium for the creation of joint enterprises shall granted according to the following rules: (a) Where a fisheries agreement exists with the third country concerned that already provides for the creation of joint enterprises, the additional premium may not exceed 60Ø% of the maximum amount of the premium for permanent transfer referred to in paragraph 1. The full amount of the additonal premium shall be chargeable to the budget of the European Community but is not covered by the rules defined in Article 2; (b) Where there is no fisheries agreement with the third country concerned and where the Council has adopted no decision authorising the Commission to negotiate an agreement, the additional premium may not exceed 30Ø% of the maximum amount of the premium in paragraph 1. Contrary to point (a), the additional premium shall be co financed from the budget of the European Community the provisions of Article 2. in accordance with transfer referred for permanent to (c) Where a fisheries agreement exists with the third country concerned that does not provide for the creation of joint enterprises, the grant of additional premiums shall be suspended until the moment the fisheries agreement is amended to provide for the creation of joint enterprises. From this moment the rules in (a) shall apply. If the fisheries agreement is not amended in this way within 18 months following the application for an additional premium, the rules in (b) shall apply; (d) Where, in the absence of a fisheries agreement with the third country concerned, there exists a Council C 16/18 EN Official Journal of the European Communities 21. 1. 1999 decision authorising the Commission to negotiate a fisheries agreement envisaging the creation of joint enterprises, the grant of additonal premiums shall be suspended until the moment such an agreement is concluded. From this moment the rules in (a) shall apply. If the fisheries agreement is not concluded within 18 months following the application for an additional premium, the rules in (b) shall apply. 4. Ú The management authority shall pay 50Ø% of the additional premium to the applicant when the vessel is transferred to the joint enterprise, after the applicant has provided proof that a bank guarantee for an amount equal to that initial payment plus 5Ø% has been lodged. 5. Ú Each year for five consecutive years from the date of constitution of the joint enterprise or the date on which the Community partner acquired holdings in the enterprise, applicants shall submit to the management authority a report on the implementation of the activity plan, together with the enterprise’s balance sheet and a statement of its net worth. The management authority shall for information. the Commission forward report to to The balance of the additional premium shall be paid to applicants after two years of activity and after the first two reports have been received. The guarantee shall be released, provided all the conditions are met, once the fifth report has been approved. 6. Ú The Commission shall adopt detailed rules for the application of the procedure laid down in Article 50 of Regulation (EC) No. Ø. Ø. [general Funds regulationü. in accordance with this Article Article 10 Public aid for fleet renewal and for vessel modernisation 1. Ú Without prejudice to the conditions laid down in the second subparagraph of Article 3(3), public aid for fleet renewal and for vessel modernisation shall be granted only on the following conditions and those given in Annex III: (a) If the overall annual objectives of the multiannual guidance programme have been respected, and in those segments where the annual objectives have also been respected, Member States may not grant public aid for the addition of new fishing capacity, unless the the capacity withdrawn addition of new capacity for each individual project is at least 30Ø% greater than the new capacity added, in terms of both tonnage and power. in association with (b) If the annual objectives of the fleet segment of the multiannual guidance programme containing vessels less than twelve meters long overall other than trawlers have been respected, Member States may not grant public aid for the addition of new fishing capacity the capacity withdrawn, taken in aggregate, is at least equal to the new capacity added, in terms of both tonnage and power. segment, unless that in The new fishing capacity may in particular include the modernisation of vessels for the purpose of improving safety and working conditions and/or improving the quality of the products fished and conserved on board. 2. Ú Expenditure eligible for public aid as referred to in paragraph 1 may not exceed the following amounts: (a) construction of fishing vessels: the scales in Table 1 in Annex IV, increased by 92,5Ø%. However, for vessels with a hull in neither steel or glass fibre, the coefficient of increase shall be 37,5Ø%; (b) modernisation of fishing vessels including, where applicable, in tonnage the cost of remeasuring accordance with Annex I to the 1969 ConventionØ(˛): 50Ø% of the expenditure eligible for construction aid as referred to in (a). 3. Ú No public aid may be granted withdrawn capacity. for capacity in association with the addition of new Article 11 Common provisions on fishing fleets 1. Ú Public aid for fleet renewal and the modernisation of vessels as well as the issue of licences for the addition of new vessels is not permitted where, within the time allowed, the Member State: (a) has not submitted the information provided for in Article 6; (b) has not taken the necessary measures to comply with Council Regulation (EEC) No 2930/86 of 22 September 1986 defining characteristics for fishing vesselsØ(ˇ); (˛) International Convention on Tonnage Measurement of Ships, drawn up in London in 1969 under the auspices of the International Maritime Organisation (IMO). (ˇ) OJ L 274, 25. 9. 1986, p. 1. Regulation last amended by Regulation (EC) No 3259/94 (OJ L 339, 29. 12. 1994, p. 11). 21. 1. 1999 EN Official Journal of the European Communities C 16/19 (c) has not taken the necessary measures to comply with guidance the the programmes by arrangements provided for in Article 7(1)(a). of the multiannual introducing and applying objectives the cases referred 2. Ú In Commission may including, in particular: take to in paragraph 1 the the appropriate measures, (a) the adjustment of the capacity objectives in the multiannual guidance programme in the light of the information available to it, (b) the the suspension of licence applications fisheries agreements with the said countries that receive a financial contribution from the Community budget. countries under introduction of third to 3. Ú The following provisions shall apply to the cumuÜ lation of public aids to the fishing fleet: (a) expenditure on modernisation shall not be eligible for aid for five years following the grant of public aid for the construction of the vessel concerned; (b) permanent withdrawal premiums within the meaning of Article 8(3) and additional premiums for the creation of joint enterprises within the meaning of Article 9 may not be added to other Community aid granted under this Regulation or Regulations (EEC) No 2908/83Ø(˛), (EEC) No 4028/86Ø(ˇ) and (EC) No 3699/93. These premiums are to be reduced: (i) by a part of the amount previously received in the case of modernisation aid and/or the allowance for a temporary joint venture; this part is calculated prorata temporis for the five year period preceding the permanent withdrawal or the setting up of the joint enterprise; (ii) by the total amount previously received in the case of aid for the temporary cessation of activities within the meaning of Article 17(1) of this Regulation and under Article 14 of ReguÜ lation (EC) No 3699/93 paid during the two years preceding permanent withdrawal or the setting up of the joint enterprise. Article 12 SmallÜscale coastal fishing 1. Ú For the purposes of this Article, "small scale coastal fishing’ means fishing carried on by vessels of an overall length of less than 12 metres, except for trawlers. 2. Ú Without prejudice to other measures provided for in this or other Regulations, the Member States may take additional measures to improve the conditions in which small scale coastal fishing is carried on, under the terms laid down in this Article. to supplement the measures 3. Ú Where a group of owners of vessels or nuclear in small scale coastal involved families of fishermen fisheries cooperatively implement an integrated collective project to improve the structure of their fishing activity, a lump sum premium part financed by the FIFG or the EAGGF Guarantee Section may be granted to the participants, without prejudice to the other types of aid provided for in this Regulation or the other Structural Fund Regulations. integrated lump sum premium shall not exceed EUR 4. Ú The 150Ø000 project. The collective per management authority shall determine the amount of the premium actually paid and how it is shared between the beneficiaries according to the scale of the project and the financial commitments made by each participant. Article 13 SocioÜeconomic measures 1. Ú For the purposes of this Article, "fisherman’ means anyone engaging in his main occupation on board an operational seagoing fishing vessel. fishermen, 2. Ú The Member States may measures of a socio economic nature associated with restructuring of the Community fisheries sector within the meaning of Article 11 of Regulation (EEC) No 3760/92. take, for (˛) Council Regulation (EEC) No 2908/83 of 4 October 1983 on a common measure for restructuring, modernising and developing the fishing industry and for developing aquaÜ culture (OJ L 290, 22. 10. 1983, p. 1). Regulation last amended by Regulation (EEC) No 3733/85 (OJ L 361, 31. 12. 1985, p. 78). (ˇ) Council Regulation (EEC) No 4028/86 of 18 December improve and adapt 1986 on Community measures structures in the fisheries and aquaculture sector (OJ L 376, 31. 12. 1986, p. 7). Regulation last amended by Regulation (EEC) No 3946/92 (OJ L 401, 31. 12. 1992, p. 1). to 3. Ú Financial assistance from the FIFG or the EAGGF Guarantee Section may only be granted for the following measures: (a) part financing of national early retirement schemes for fishermen, provided that the following measures: (i) at the time of early retirement, the age of the beneficiaries of the measures must be not more than ten years from the legal retirement age C 16/20 EN Official Journal of the European Communities 21. 1. 1999 within the meaning of the legislation in force in the Member State, or the beneficiaries must be aged at least 55; (ii) the beneficiaries can show that they have worked for at least 10 years as fishermen. TITLE III PROTECTION OF MARINE RESOURCES IN COASTAL WATERS, AQUACULTURE, FISHING PORT FACILITIES AND PROCESSING AND MARKETING However, contributions to the normal retirement scheme for fishermen during the period of early financial retirement assistance from the FIFG or the EAGGF Guarantee Section. shall not be eligible for In each Member State, for the entire programming period the number of beneficiaries may not exceed jobs eliminated on board fishing the number of vessels as a result of those vessels permanently stopping fishing activities within the meaning of Article 8; (b) granting individual compensatory payments to fishermen who can show that they have worked for at least six months as fishermen, on the basis of an eligible cost limited to EUR 10Ø000 per individual beneficiary, provided the vessel on which the benefiÜ ciaries were employed has been the object of measures permanently stopping its activities, within the meaning of Article 8; (c) granting non renewable individual compensatory payments to fishermen who can show that they have worked for at least five years as fishermen, to help them retrain or diversify their activities outside maritime fisheries under an individual or collective social plan, on the basis of an eligible cost limited to EUR 50Ø000 per individual beneficiary; individual fishermen may combine the the management payment provided for at authority shall determine individual amount according to the scale of the retraining and diversifiÜ cation project and the financial commitment entered into by the beneficiary. this payment with (b); the 4. Ú The Member States shall make arrangements to ensure: the necessary (a) that the beneficiaries of the measure referred to in paragraph 3(a) permanently give up work as fishermen; (b) that no one fisherman can combine benefits from the measure referred to in paragraph 3(a) with benefits from one of the measures referred to in paragraph 3(b) and (c); (c) that the compensation referred to in paragraph 3(b) is refunded on a pro rata temporis basis where the beneficiaries return to their work as fishermen within a period of less than one year after being paid the compensation; (d) that the compensation referred to in paragraph 3(c) is refunded on a pro rata temporis basis where the beneficiaries return to their work as fishermen within a period of less than five years after being paid the compensation; (e) that the beneficiaries of the measure referred to in paragraph 3(c) actually engage in a new activity. Article 14 Scope 1. Ú Member States may, under the conditions specified in Annex III, to encourage capital investment in the following fields: take measures (a) protection of marine resources in coastal waters, (b) aquaculture, (c) fishing port facilities, (d) processing and marketing of fishery and aquaculture products. 2. Ú Financial assistance from the FIFG or the EAGGF Guarantee Section may be granted only for projects which: (a) contribute to lasting economic benefits from the structural improvement in question; (b) offer an adequate guarantee of technical and economic viability; (c) avoid counterproductive effects, particularly the risk of creating surplus production capacity; (d) encourage the taking into account the interests of the sector as a whole. TITLE IV OTHER MEASURES Article 15 Measures to find and promote new market outlets 1. Ú Member States may, under the conditions specified in Annex III, take measures to encourage collective operations to find and promote new market outlets for fishery and aquaculture products, in particular: (a) operations associated with quality certification, product labelling, rationalisation of product names and product standardisation, (b) promotion campaings, including those highlighting quality, 21. 1. 1999 EN Official Journal of the European Communities C 16/21 (c) projects to test consumer reactions, (d) organisation of and participation in trade fairs and exhibitions, (e) organisation of study and sales visits, (f) market studies and surveys, including studies relating to the prospects for marketing Community products in third countries, (g) campaigns improving marketing conditions, (h) sales advice and aids, services provided to wholeÜ salers and retailers. 2. Ú Priority is to be given to investments: (a) to encourage the sale of surplus or under exploited species, (b) implemented by organsiations officially recognised (EEC) No the meaning of Regulation within 3759/92, (c) pursuing a quality policy for fishery and aquaculture products, (d) to promote products obtained using environmentally friendly methods. 3. Ú The measures must not be based around commercial brands nor make reference to particular countries or geographic zones, except in specific cases where official recognition of origin with reference to a specified geographical zone for a product or process is granted pursuant to Regulation (EEC) No 2081/92 of 14 July 1992 on the protection of geografical indications and designations of origin for agricultural products and foodstuffsØ(˛). The reference may be used only from the date on which the name has been entered in the register provided for in Article 6(3) of Regulation (EEC) No 2081/92. Article 16 Operations by members of the trade 1. Ú The Member States may encourage the creation and facilitate the operation of producer organisations recognised under Regulation (EEC) No 3759/92: (˛) OJ L 208, 27. 7. 1992, p. 1. Regulation last amended by Regulation (EC) No 1068/97 (OJ L 156, 13. 6. 1997). (a) Aid can be granted to producer organisations created after 1 January 2000 for three years following the date of recognition. This aid for the first, second and third years may not exceed: (i) 3Ø%, 2Ø% and 1Ø% respectively of the value of the products marketed by the producer organiÜ sation; (ii) 60Ø%, 40Ø% and 20Ø% respectively of the adminÜ istrative costs of the producer organisation; (b) Without prejudice to the aid referred to at (a), aid may be granted to producer organisations that have been specifically recognised under Article 7a(1) of Regulation (EEC) No 3759/92 during the three years following the date of the specific recognition to facilitate the implementation of their plans to improve quality and marketing. The amount of this aid may not exceed, for the first, second and third years: (i) 3Ø%, 2Ø% and 1Ø% respectively of the value of the products covered by the plan and marketed by the beneficiary producer organisation; (ii) 60Ø%, 50Ø% and 40Ø% respectively of the costs incurred by the organisation in implementing the plan; (c) The aid referred to at (a) and (b) shall be paid to the final beneficiaries during the year following that for which than 31 December 2008. it was granted, and not later 2. Ú The Member States may encourage short term operations of collective interest with a broader scope than operations normally undertaken by private business, carried out with the active contribution of members of the trade themselves and serving to attain the objectives of the common fisheries policy. Eligible operations shall relate following themes: in particular to the (a) management and control of conditions for access to certain fishing zones and quota management; (b) management of fishing effort; (c) promotion of gear or methods recognised by the management authority as being more selective; (d) implementation of technical measures for the conserÜ vation of resources; (e) collective aquaculture facilities, improvement aquaculture of treatment of aquaculture effluent; restructuring or collective sites, C 16/22 EN Official Journal of the European Communities 21. 1. 1999 (f) eradication of the pathological risks of fish farming coastal areas or catchment in or parasites ecosystems; (g) collection of basic data and/or preparation of environmental management models for fisheries and aquaculture with a view to drawing up integrated management plans for coastal areas; (h) organisation information and commercial information; technologies electronic of trade to disseminate and other technical (i) creation of business incubators in the sector and/or centres for the collection of fishery and aquaculture products; (j) access to training, particularly in quality, and organiÜ sation of transmission of know how on board vessels and on land; (k) design and application of systems to improve and statistical health control instruments and environmental impact. conditions, quality, Expenditure incurred in the normal production process in firms shall not be eligible under this paragraph. 3. Ú The Comission shall adopt detailed rules for the application of the procedure laid down in Article 50 of Regualtion (EC) No. Ø. Ø. [general Funds regulationü. in accordance with this Article Article 17 Temporary cessation of activities and other financial compensation 1. Ú The Member States may grant compensation to fishermen and owners of vessels for the temporary cessation of activities in the following circumstances: (a) in the event of unforeseeable circumstances, particularly those caused by biological factors; the granting of compensation may last for no more than two months per year. The management authority shall the suitable forward Commission in advance; scientific proof to (b) where a fisheries agreement is not renewed, for the Community fleets dependent on the agreement; the granting of compensation may not last longer than six months; it may be extended by a further six months provided a conversion plan approved by the Commission is implemented for the fleet concerned; (c) where a plan is introduced for the recovery of a resource threatened with exhaustion, decided by the Commission or by one or some Member States; the granting of compensation may last for no more than two years and may be extended by a further year. Compensation may also be granted, subject to the same restrictions as to duration, to the processing industry where its supply on a it depends for resource covered by a recovery plan. Before the recovery plan into place the management authority shall forward to the Commission suitable scientific The Commission shall request without delay the opinion of the Committee provided for in Article 16 of Regulation (EEC) No 3760/92. justification. economic is put and 2. Ú The Member States may grant financial compenÜ sation to fishermen and owners of vessels where a Council decision imposes technical restrictions on the use of certain gear or fishing methods; this aid is intended to cover the technical adjustment and may not be paid for more than six months. 3. Ú The financial contribution from the FIFG and the EAGGF Guarantee Section to the measures referred to in paragraphs 1 and 2 per Member State for the entire period from 2000 to 2006 may not exceed the higher of the following two thresholds: EUR 1 million or 3Ø% of the Community financial assistance allocated to the sector in the Member State concerned. The management authority shall determine the amount of compensation as provided for in paragraphs 1 and 2 to be paid in individual cases taking account of relevant parameters such as the real losses suffered, the scale of the conversion effort, technical adjustment effort. recovery plan or 4. Ú The measures taken under this Article may under no circumstances be invoked as contributing to the attainment of the objectives of the multiannual guidance programme referred to in Article 5, nor can they be justified by a recurrent seasonal suspension of activity as part of the ongoing management of fisheries. Article 18 Innovative measures and technical assistance 1. Ú The Member States shall envisage in the plans referred to in Article 3 and 4(1) the means necessary to undertake studies, pilot projects, demonstration projects, training measures, technical assistance, the exchange of experience and publicity connected with the preparation, implementation, monitoring, evaluation or adjustment of the operational programmes and the single programming documents. 21. 1. 1999 EN Official Journal of the European Communities C 16/23 to test, scientific body 2. Ú "Pilot project’ means a project carried out by an economic operator or in conditions approaching actual conditions in the industry, the technical reliability and/or financial viability of an innovative technology with a view to acquiring and disseminating (technical and/or financial) knowledge of the technology being tested. Pilot projects shall always comprise scientific monitoring of sufficient intensity and duration to obtain significant results; they must be the to subject the reports management authority. The immediately forward such reports to the Commission for information. latter shall forwarded scientific of 2. Ú Within the scope of this Regulation, Member States may introduce supplementary aid measures subject to conditions or rules other than those laid down in this Regulation, or covering a sum in excess of the maximum amounts referred to in Annex IV, provided they comply with Article 92, 93 and 94 of the Treaty. Article 21 Monetary Conversion Exploratory fishing projects shall be eligible as pilot projects provided their aim is the conservation of fishery resources and they implement more selective techniques. 3. Ú The measures referred to in paragraph 1 may, in particular, concern the themes referred to in Article 16(2), provided they are implemented on the initiative of public or semi public bodies or other bodies designated to that end by the management authority. in euros set by For Member States which are not in the euro zone, the amounts this Regulation shall be converted into national currency at the rate published in the C series of the Official Journal of the European Communities. The Conversion shall be made at the rate applicable on 1 January of the year of the Member State’s decision to grant the premium or aid. include the construction or They may also transÜ formation of vessels provided that these vessels are destined exclusively fisheries research activities, undertaken by public or semi public bodies, under the flag of a Member State. for 4. Ú In addition, the measures referred to in paragraph 1 may include the promotion of equal employment opporÜ tunities between men and women working in the sector. TITLE V GENERAL AND FINANCIAL PROVISIONS Article 19 Compliance with the conditions governing assistance The management authority shall ensure that the special conditions governing assistance listed in Annex III are complied with. It shall also satisfy itself as to the technical capacity of beneficiaries and the financial viability of firms before granting aid. Article 20 Notification of aid schemes Article 22 Specific provisions on measures part financed by the EAGGF Guarantee Section 1. Ú Community assistance to measures financed by the EAGGF Guarantee Section shall be the subject of financial planning and annual accounts. Financial planning shall be an integral part of the programming. 2. Ú The Commission shall fix an initial allocation to the Member States, broken down by year, based on objective criteria and taking account of the particular situations, needs and efforts to be made, particularly with regard to the restructuring of the fleet. 3. Ú The initial allocation shall be adjusted in the light of actual expenditure and revised expenditure forecasts submitted by the Member States, taking account of the objectives of the programmes, insofar as resources are available and in accordance with the aid rates fixed in this Regulation. financial to 4. Ú The Community’s measures part financed by the EAGGF Guarantee Section shall be made in accordance with the principles laid down in Articles 28, 29, 37 and 38 of Regulation (EC) No. Ø. Ø. [general Funds regulationü. However: contribution 1. Ú The Member States shall notify the Commission of the aid schemes provided for in the plans referred to in Articles 3 and 4(1), in accordance with Articles 92, 93 and 94 of the Treaty. (a) the Community’s financial contribution may not exceed 50Ø% of the total eligible cost and shall cover, as a general rule, at least 25Ø% of the eligible public expenditure; C 16/24 EN Official Journal of the European Communities 21. 1. 1999 (b) the rates fixed in Article 28(4)(a)(ii) and (iii) and (b)(ii) and (iii) of Regulation (EC) No. Ø. Ø. [general Funds regulationü shall apply. - Articles 7, paragraphs 1, 2 and 3, and 7b of ReguÜ lation (EEC) No 3759/92, - Regulation (EEC) No 3140/82Ø(˛). 5. Ú The fifth subparagraph of Article 31(1) of ReguÜ lation (EC) No. Ø. Ø. [general Funds regulationü shall apply to payments. the EAGGF 6. Ú Financial assistance granted by Guarantee Section may take the form of advances for the implementation of the programme or payments relating to expenditure actually incurred. However, the repealed provisions shall remain applicable for aid, measures and projects approved before 31 December 1999. References to the repealed regulations and articles shall be understood as references to this Regulation. Article 23 Implementing rules Article 25 Entry into force The form of the expenditure statements and annual implementation the Commission in accordance with the procedure laid down in Article 50 of Regulation (EC) No. Ø. Ø. [general Funds regulationü. shall be adopted by reports This Regulation shall enter into force on the third day following that of its publication in the Official Journal of the European Communities. Article 24 Transitional provisions This Regulation shall be binding directly applicable in all Member States. in its entirety and The following are repealed with effect from 1 January 2000: - Regulation (EC) No 3699/93 (˛) Council Regulation (EEC) No 3140/82 of 22 November 1982 on granting and financing aid granted by Member States to producers’ organisations in the fishery products sector (OJ L 331, 26. 11. 1982, p. 7). ANNEX I CONTENTS OF THE PLANS 1. Quantified description of the actual situation for each of the fields referred to in Titles II, III and IV (a) Strengths and weaknesses; (b) Summary of operations undertaken and impact of funds used in previous years; (c) Requirements of the sector, particularly with regard to the constraints of the multiannual giudance programme for the fishing fleet. 2. Strategy for restructuring the sector (a) Results of consultations and measures to involve the competent authorities and bodies and socioÜ economic partners at the appropriate levels; (b) Objectives: (i) general objectives under the common fisheries policy; (ii) priorities; (iii) objectives specific to each area of assistance, quantified if possible. 21. 1. 1999 EN Official Journal of the European Communities C 16/25 (c) Proof that the public aids are necessary to attain the objectives sought; steps taken to prevent counterproductive effects, particularly as regards the creation of surplus capacity; (d) With regard to the fleet: (i) indicators concerning the development of the fleet in relation to the objectives of the multiÜ annual guidance programme; (ii) fishing techniques and gear to be encouraged in the event of redeployment of fishing activities; (e) anticipated impact (on employment, production, etc. ). 3. Means to attain the objectives (a) The measures (legal, financial or other) planned in each field to implement the plans, particularly aid schemes; (b) Indicative financing schedule covering the entire programming period and listing the regional, national, Community or other resources provided for each area of assistance. (c) The requirements in terms of studies, pilot projects, demonstration projects, training, technical assistance and publicity measures connected with the preparation, implementation, monitoring, evaluation or adjustment of the measures concerned. 4. Implementation (a) Management authority designated by the Member State; (b) Steps taken to ensure efficient and effective implementation, including monitoring and evaluation; definition of the quantified indicators; (c) Provisions relating to checks, penalties and publicity measures; (d) With regard to the fleet: (i) The methods for monitoring trends in fishery resources, particularly vulnerable resources; (ii) For static gear, the arrangements for monitoring fishing effort, including trends in the number and size of gear. ANNEX II MINIMUM CONTENT OF MULTIANNUAL GUIDANCE PROGRAMMES FOR THE FISHING FLEET FOR 2002 TO 2006 1. Updating of the description of the situation provided for in Annex I This consists in describing the change in the situation regarding fisheries, the fleet and related employment since the date of submission of the programming documents referred to in Articles 3 and 4(1). 2. Results from the previous programme (a) Identify and comment on the progress achieved in attaining the objectives set for the 1997 to 2001 programme. (b) Analyse the general administrative and socio economic context in which it was implemented and in particular, where appropriate, in which measures to reduce fishing activity were implemented. (c) Specify and comment on the Community, national and regional financial resources committed in attaining the results achieved, for each fleet segment. C 16/26 EN Official Journal of the European Communities 21. 1. 1999 3. New guidelines On the basis of the replies given to points 1 and 2 indicate the guidelines which should be given to the various fleet segments for the period 2002 to 2006, in particular in relation to the following two operations: (a) Fleet renewal: criteria for joining and leaving the fleet, for each segment and associated funding. Legal or administrative provisions enabling the Member State to monitor vessels joining and leaving its fleet. Measures taken by the Member State per fleet segment to ensure that public aid granted for fleet renewal and adjustment of fishing effort does not have contradictory effects where the pursuit of the objectives of the programmes is concerned; (b) Adjustment of fishing effort: desirable evolution of fishing effort per segment until 31 December 2006, expressed in relation to the objectives set for each segment for 31 December 2001. Associated laws, regulations or administrative provisions. Systems for managing fishing activity. Extent of administrative and financial resources to be used to attain the new objectives thus set. ANNEX III SPECIAL CONDITIONS AND CRITERIA FOR ASSISTANCE 1. Implementation of multiannual guidance programmes (Title II) 1. 0. Age of vessels For the purposes of this Regulation, the age of a vessel is a whole number defined as the difference between the year of the management authority’s decision to grant a premium or aid and the year in which the vessel was built (or, if this is not known, the year of commissioning). 1. 1. Permanent withdrawal (Article 8(2)) (a) Permanent withdrawal may concern only vessels which have carried out a fishing activity for at least 75 days at sea in each of the two periods of 12 months preceding the date of the application for permanent withdrawal or, as the case may be, a fishing activity for at least 80Ø% of the number of days at sea permitted by current national regulations for the vessel concerned. In the Baltic Sea the number of 75 days shall be reduced to 60 for vessels registered in ports situated north of parallel 59› 30ü N. (b) The following conditions must be met: (i) prior to its permanent withdrawal, the vessel must be registered in the Community fishing vessel register; (ii) the vessel must be operational at the time the decision is taken to grant the premium; (iii) after permanent withdrawal, the fishing licence must be cancelled and the vessel declared permanently deleted from the Community register; (iv) in the event of permanent transfer to a third country, the vessel must be immediately registered in the register of the third country and may never return to Community waters. (c) If a vessel is lost between the date of the decision to grant the premium and the actual date of permanent withdrawal, the management authority shall make a financial correction for the amount of the compensation paid by the insurance. (d) No public aid within the meaning of Article 8 may be paid for a vessel transferred to a third country to replace a lost vessel belonging to a joint enterprise within the meaning of Article 9. 21. 1. 1999 EN Official Journal of the European Communities C 16/27 1. 2. Joint enterprises (Article 9) (a) In addition to the conditions for the permanent transfer of a vessel to a third country within the meaning of Article 8(2)(b) and point 1. 1 of this Annex, such vessels must meet the following conditions: (i) they must have been operating for at least the last five years, under the flag of a Member State of the Community, in Community waters and/or in the waters of a third country that has concluded a fisheries agreement with the Community; (ii) they must, within six months of the date of the decision to grant the additional premium, be fitted out with the technical equipment needed to operate in the waters of the third country under the terms of the fishing authorisation issued by the authorities of the third country; they must comply with the Community safety regulations and be adequately insured as decided by the management authority; (b) When the application for the additional premium is lodged, beneficiaries must provide the management authority with the following information: (i) a description of the vessel, including, in particular, the internal numer, registration number, tonnage, power and year of entry into service; (ii) during the last five years: service and activity of the vessel (and conditions under which the activity was carried on); indication of fishing zones (Community waters/other); any previous Community, national or regional aid received; (iii) proof of the project’s financial viability, including, in particular: - a financing plan showing the contributions of the different shareholders in cash and in kind; level of contribution of Community/third country partners; - an activity plan covering at least five years, showing, in particular, fishing zones, places of landing and final destination of catches; (iv) a copy of the insurance contract. (c) The following conditions must be met by the beneficiary during a period of five years from the transfer of ownership of the vessel to the joint enterprise: (i) any change in the conditions under which the vessel is operated (particularly change of partner, change in the share capital of the joint enterprise, change of flag), within the limits of the conditions referred to in Article 9(2), shall be subject to prior authorisation by the management authority; (ii) A vessel lost through shipwreck must be replaced by an equivalent vessel within one year of the payment of compensation for the accident by the insurance company. (d) If the conditions at (a) and (b) are not fulfilled when the application for the additional premium is lodged, the public aid shall be restricted to the premium for permanent transfer referred to in Article 8(3)(b). (e) Without prejudice to Articles 29(4) and 38 of Regulation (EC) No. Ø. Ø. [general Funds regulationü, the management authority shall carry out a financial correction in the following cases: (i) if the beneficiary notifies to the management authority a change in operating, conditions that lead to the non respect of the conditions referred to in Article 9(2) of this Regulation, including the sale of the vessel or the retirement of the Community shipowner in the joint venture, the financial correction shall be equal to part of the amount of the additional premium; this part shall be calculated pro rata temporis over the period of five years; (ii) if during a control it is found that the conditions provided for in Article 9(2) of this ReguÜ lation and point (c) of this paragraph are not complied with, the financial correction shall be equal to the additional premium; (iii) if the beneficiary fails to provide the activity reports provided for in Article 9(5) of this ReguÜ lation after having been served notice by the management authority, the financial correction shall be equal to part of the amount of the additional premium; this part shall be calculated pro rata temporis over the period of five years; C 16/28 EN Official Journal of the European Communities 21. 1. 1999 (iv) if the vessel is lost and not replaced, the financial correction shall be equal to the insured value. 1. 3. Fleet renewal (Article 10) (a) Vessels must be built to comply with the regulations and directives governing hygiene and safety and the Community provisions concerning the dimension of vessels and the monitoring of fishing activities. They shall be entered in the appropriate segment of the Community register. (b) Without prejudice to Article 8 and 9, the transfer of ownership of a fishing vessel shall not give rise to Community aid. 1. 4. Vessel modernisation (Article 10) (a) Vessels must be entered in the Community register of fishing vessels, and their dimensions must be brought into line with Regulation (EEC) No 2930/86 when they are modernised. (b) Investments should relate to: (i) the rationalisation of fishing operations, in particular by the use of more selective fishing gear and methods, and/or (ii) improvement of the quality of products caught and preserved on board, the use of better fishing and preserving techniques and the implementation of legal and regulatory provisions regarding health, and/or (iii) improvement of working and safety conditions. Without prejudice to Article 17(2), the replacement of fishing gear shall not be considered eligible expenditure. (c) Operations may cover only vessels less than 30 years old. This age limit shall not apply to the investments referred to in paragraph (b)(iii). 2. Investment in the areas referred to in Title III 2. 0. General provisions (a) Projects in undertakings may involve capital investment in production and management (construction, equipping and modernisation of facilities). (b) The transfer of ownership of property linked to productive activities may not give rise to the grant of Community aid. 2. 1. Protection of marine resources in coastal waters Expenditure eligible for assistance from the FIFG or the EAGGF Guarantee Section may concern only the installation of fixed or movable facilities to enclose protected underwater areas and the scientific monitoring of projects. Such projects must: (a) be of collective interest, (b) be implemented by public or semi public bodies, recognised professional organisations or other bodies designated to that end by the management authority, (c) not have a negative impact on the marine environment. Each project must include scientific monitoring for at least five years, comprising in particular the evaluation and monitoring of the development of marine resources in the waters concerned. The management authority shall forward the scientific monitoring reports to the Commission every year for information. 21. 1. 1999 EN Official Journal of the European Communities C 16/29 2. 2. Aquaculture (a) For the purposes of this Regulation, "aquaculture’ means the rearing or culture of aquatic organisms using techniques (stocking, feeding, protection from predators, etc. ) designed to in question beyond the natural capacity of the increase the production of the organisms environment; the organism remain the property of a natural or legal person throughout the rearing or culture stage, up to and including harvesting. (b) The promoters of intensive fish farming projects shall forward the information provided for in Annex IV to Directive 85/337/EECØ(˛) to the management authority together with their application for public aid. The management authority shall decide wheter the project must be submitted for assessment under Articles 5 to 10 of that Directive. Where the public aid is granted the cost of collecting information on environmental impact and any assessment costs shall be eligible for assistance from the FIFG or the EAGGF Guarantee Section. (c) Investment in works concerning the installation or improvement of water circulation in aquaÜ culture enterprises and on service vessels shall be eligible. (d) Capital investment to improve conditions of hygiene or human or animal health, to improve product quality or reduce pollution of the environment shall be eligible. (e) Notwithstanding group 2 in Table 3 in point 2. 1 of Annex IV, where investments concern the use of techniques that substantially reduce environmental impact, the contribution of private benefiÜ ciaries (C) may be restricted to 30Ø% of eligible expenditure in Objective 1 regions and 50Ø% in other areas, instead of 40Ø% and 60Ø% respectively. 2. 3. Fishing port facilities Investments must be of interest to all fishermen using a port and must contribute to the general develÜ opment of the port and to the improvement of services offered to fishermen. They shall relate in particular to installations and equipment intended: (a) to improve the conditions under which fishery products are landed, treated and stored in ports, (b) to support fishing vessel activities (provision of fuel, ice and water, maintenance and repair of vessels), (c) to improve jetties with a view to improving safety during the landing or loading of products. Capital investment to improve conditions of hygiene or human or animal health, to improve product quality or reduce pollution of the environment shall be eligible. 2. 4. Processing and marketing (a) For the purpose of this Regulation, products’ means all operations, between the time of landing and the end product stage. "processing and marketing of fishery and aquaculture including handling, treatment, production and distribution, (b) Investments shall not be eligible for assistance where they concern: (i) fishery and aquaculture products intended to be used and processed for purposes other than investments exclusively for the treatment, human consumption, with the exception of processing and marketing of fishery and aquaculture product wastes, (ii) the retail trade. Capital investment to improve conditions of hygiene or human or animal health, to improve product quality or reduce pollution of the environment shall be eligible. (˛) Council Directive 85/337/EEC of 27 June 1985 on the assessment of the effects of certain public and private projects on the environment (OJ L 175, 5. 7. 1985, p. 40). Directive last amended by Directive 97/11/EC (OJ L 73, 14. 3. 1997, p. 5). C 16/30 EN Official Journal of the European Communities 21. 1. 1999 (c) Notwithstanding group 2 in Table 3 in point 2. 1 of Annex IV, where investments concern the use of collective the contribution of private beneficiaries (C) may be restricted to 30Ø% of eligible expenditure in Objective 1 regions and 50Ø% in others areas, instead of 40Ø% and 60Ø% respectively. that substantially reduce environmental facilities or techniques impact, 3. Measures to find and promote new market outlets (Article 15) (a) Eligible expenditure shall cover in particular: (i) the costs of advertising agencies and other service providers involved in the preparation and implementation of promotion campaigns, (ii) the purchase or hire of advertising space and the creation of slogans and labels for the duration of promotion campaigns, (iii) expenditure on publishing, external staff, premises and vehicles required for the campaigns. (b) The beneficiary’s operating costs (staff, equipment, vehicles, etc. ) shall not be eligible. ANNEX IV SCALES AND RATES OF ASSISTANCE 1. Scales of assistance relating to fishing fleets (Title II) TABLE 1 Category of vessel by tonnage (GT) EUR 0,2Øq 10 10Ø q 25 25Ø q 100 100Ø q 300 300Ø q 500 500 and above 9Ø675/GTØ+Ø 1 428 4Ø879/GTØ+Ø 49 388 4Ø189/GTØ+Ø 66 638 2Ø794/GTØ+ 206 138 2Ø275/GTØ+ 361 838 1Ø244/GTØ+ 877 338 TABLE 2 Category of vessel by gross registered tonnes (GRT) EUR 0Ø q 25 25Ø q 50 50Ø q 100 100ØØ q 250 7Ø396/grt 6Ø051/grtØ+Ø 33 625 5Ø379/grtØ+Ø 67 225 2Ø689/grtØ+ 336 225 From 1 January 2000, for vessels longer than 24 metres between perpendiculars, and from 1 January 2004, for all vessels, only Table 1 shall apply. 21. 1. 1999 EN Official Journal of the European Communities C 16/31 2. Participation rates For all the operations referred to in Titles II, III and IV, the limits on Community participation (A), total State participation (national, regional and other) by the Member State concerned (B) and, where applicable, participation by private beneficiaries (C) shall be as follows, expressed as a percentage of eligible costs: Group 1: Permanent withdrawal premiums (Article 8), additional premiums for the creation of joint enterprises part financed by the FIFG or the EAGGF Guarantee Section (Article 9), small scale coastal fishing (Article 12), socio economic measures (Article 13), protection of marine resources in coastal waters (Article 14), fishing port facilities with no participation by private beneficiaries (Article 14), measures to find and promote new market outlets with no participation by private beneficiaries (Article 15), operations by members of the trade (Article 16), temporary cessation premiums and other financial compensation (Article 17), innovative measures and technical assistance except pilot projects (Article 18) Group 2: Fleet renewal and modernisation of fishing vessels (Article 10) Group 3: Aquaculture (Article 14), fishing port facilities with participation by private beneficiaries (Article 14), processing and marketing (Article 14), measures to find and promote new market outlets with participation by private beneficiaries (Article 15) Group 4: pilot projects (Article 18) TABLE 3 Group 1 Group 2 Group 3 Group 4 Objective No 1 RegionsØ(˛) 50Ø%ØR AØR 75Ø% BØ8 25Ø% Other areas 25Ø%ØR AØR 50Ø% BØ8 50Ø% AØR 35Ø% BØ8 5Ø% CØ8 60Ø% AØR 15Ø% BØ8 5Ø% CØ8 60Ø% AØR 35Ø% BØ8 5Ø% CØ8 40Ø% AØR 15Ø% BØ8 5Ø% CØ8 60Ø% AØR 75Ø% BØ8 5Ø% CØ8 20Ø% AØR 50Ø% BØ8 5Ø% CØ8 30Ø% (˛) Within the meaning of Article 2(1) of this Regulation. In Group 1, where appropriate, the management authority may require a financial contribution from the private sector, particularly in the case of the protection of marine resources in coastal waters or operations by members of the trade. Eligible expenditure shall be reduced accordingly. In the case of investments in small and medium sized enterprises within the meaning of Commission Recommendation 96/280/ECØ(˛) the (A) rates for groups 2 and 3 may be increased to the extent that forms of financing other than direct aids are used, without this increase exceeding 10Ø% of the total eligible cost. The contribution of the private beneficiary shall be reduced accordingly. (˛) Commission Recommendation of 3 April 1996 concerning the definition of small and medium sized enterprises (96/280/EC) (OJ L 107, 30. 4. 1996, p. 4)