Commission proposes renewing support scheme to fisheries sector in outermost regions

This proposal differs in a number of ways from the current compensation scheme which expires at the end of 2006. It has been guided by the conclusions of a Commission report on the application of the current scheme.

This report concludes that while the previous scheme had a positive impact on the competitiveness of the sector, there was scope to make the new scheme more efficient and more targeted: The new compensation scheme will provide the same level of funding as its predecessor, namely EUR 15 million a year.

The regions concerned, which remain the same as under the current scheme, are: the Azores, Madeira, the Canary Islands, and the French departments of Guiana and Réunion.

Joe Borg, European Commissioner for Fisheries and Maritime Affairs said: “The renewal of this scheme means that the outermost regions will continue to receive financial support for the extra cost of transport of their fisheries products. This support will allow the stakeholders concerned to plan their activities, thus bringing an important element of stability in the sector.”

The new scheme includes:

* More flexibility for Member States to define for each region which products are eligible for compensation, and the level of premiums applicable

* The definition of general eligibility criteria for products, in particular to ensure that all the products receiving support under the scheme comply with the rules of the Common Fisheries Policy

* A refocusing on the compensation of transportation costs between the regions and the European mainland, so as to harmonise support levels

* Simpler administration of the scheme combined with higher accountability by Member States through annual reporting obligations

The new scheme will be financed out of the European Agricultural Guarantee Fund. It will run for seven years, thus providing a stable environment for the fisheries sector in the outermost regions.

The Commission's report proposing the extension of the scheme was based upon an independent external study, received by the Commission in September 2006, assessing the "structural aspects of the Common Fisheries Policy in the outermost regions".

The outermost regions of the EU are often isolated and insular regions, which have tended to lag behind the economic development of mainland Europe. The recognition of the specificity of these regions, and of the need to assist them in their development, is enshrined in the Treaty, which provides for specific support measures. This compensation scheme is thus fully in line with the Treaty as well as with the Commission's commitment to assist the outermost regions in overcoming their specific constraints. The first compensation scheme was introduced in 1992, covering the Azores, Madeira and the Canary Islands, and was gradually extended to the other regions. The present scheme came into force in 2003, and will run until 31 December 2006.