EU Unveils Plan to Aid Fish Industry
Date: 10-Mar-06
Country: BELGIUM
EU member states will be allowed to help fishing companies modernise or restructure their fleets to avoid economic difficulties resulting from a decline in fish stocks and rising fuel prices.
"We need to ensure that those in need can receive the necessary aid to return to economic viability," EU Fisheries Commissioner Joe Borg said in a statement.
"We must, however, do this in a way that does not undermine our efforts at achieving sustainable fisheries."
State aid for the modernization and equipment of vessels, that would not normally be allowed under the EU's stringent state aid rules, will now be considered.
The measures cover changes of fishing gear that would result in fuel savings, purchase of equipment to improve fuel efficiency and engine replacement. There is also the possibility for fishermen to receive compensation for any loss in revenue while their ship is being fixed or adapted.
However, the Commission, the EU executive, reiterated that rescue aid is "short-term aid which may be granted for a period of no more than six months" and the non-reimbursement of this aid is conditional upon the submission and approval of a restructuring plan which shows a sustained profitability.
Direct compensation for rising fuel costs will not be allowed because it could distort competitiveness and would be unfair to other industries, the Commission said.
Fuel costs have doubled for fishermen since 2003 rising from 18 percent to 36 percent of the value of their catches.
The Commission said the difficulties of Europe's fishing companies stem from the depletion of a number of fish stocks which has not been reflected by an increase in fish prices.
This has led the Commission to recommend long-term measures to increase the profitability of the fishery industry, including the promotion of environmentally-friendly fishing techniques to reduce the amount of by-catches - the part of a fishing catch that is rejected as unwanted or commercially unsuitable.
