Dr. Joe BORG
Member of the European Commission Responsible for Fisheries and Maritime Affairs

Influence of the EU's fisheries policy on Estonia

Conference: Influence of the EU's fisheries policy on Estonia
Tallinn, 27 June 2005

President Rüütel,

Ministers,

Ladies and Gentlemen,

I am very glad to be here in Estonia for the first time as Commissioner responsible for Fisheries and Maritime Affairs. I am also deeply honoured by the presence of President Rüütel and Ministers Tuiksoo and Reiljan at this Conference.

I am confident that we will have a fruitful exchange of views today as I seek to fulfill my two main priorities of: firstly, acquiring a sounder knowledge of the challenges faced by the Estonian fisheries sector; and secondly, of allowing me to make better known the efforts being made by the Commission to guarantee sustainable fisheries for the future. My tour yesterday of Kallaste, Lake Peipsi and a fish farm, in addition to my lengthy discussions with Ministers Tuiksoo and Reiljan, have gone a long way to achieving these objectives. I am confident that our open discussion today will do the same.

Undoubtedly, the Common Fisheries Policy is having a major impact on Estonian fisheries both in terms of new opportunities and benefits for the sector but also in terms of certain constraints and obligations for reasons of sustainability.

Let me mention first the impact of our structural policy.

Support from the EU to the Estonian fisheries sector was available already from the pre-accession funds. These funds targeted both the administrative capacity building of the fisheries administration and direct support to the fisheries industry. For example, we supported the Estonian fish processing sector with 3.6 million euros or 56 million Estonian Kroons under the SAPARD programme.

For the period 2004-06, the entire fisheries sector received 12.5 million euros of EU financing within its Objective 1 programme. This financing is available for modernisation of the relevant fisheries sub-sectors and covers the entire production chain from the net to the plate. I am glad that the fisheries measures show a good take-up, as 45% of the funds have been committed and the first payments have already been made.

The negotiations on the 2007-2013 programming period provide the first real opportunity for Estonians to participate as a member of the EU in forming the future support framework for your fisheries sector. Your authorities have taken an active role in the negotiations. Their sustained efforts have paid off and this can be seen particularly in the inclusion of the support for inland fisheries and private ports, the extension of the support to medium sized enterprises, and the modernisation of engines in small scale coastal and inland fisheries. These have been included in the EFF draft regulation currently under discussion in Council.

The forthcoming programming period also foresees support for the integrated and sustainable development of local fisheries areas. I believe this possibility will be of major importance for the socio-economic fabric of the Estonian fishing areas whether marine or fresh water, and also for the Estonian islands.

Let me also mention that the future funds aim particularly at small scale costal fisheries, by giving them a higher rate of aid and better possibilities for modernisation compared to the traditional high seas fleet. This will undoubtedly be welcomed by your relatively large section of coastal fishermen.

But I will come back to the new fisheries fund in a moment.
I am fully aware of the constraints imposed by the need to conserve fish stocks and rebuild those which are depleted. However, many of these measures are not new as they were established within the framework of the International Baltic Sea Fisheries Commission, where Estonia already worked with the Union and other coastal states. They show the need for a common policy and an integrated approach to fisheries management as fish do not recognise human boundaries in the same way we do. As we are all aware, conservation measures are essential if we are to ensure the sustainability of our fisheries and the long-term viability of coastal fishing communities.

The CFP does not only operate for the purpose of sustainability. It also provides the Estonian fisheries sector with opportunities to gain access to the large and profitable EU market in fisheries products. It gives you the opportunity to be represented in international fora by the EU, an entity that influences the shape of international fisheries relations, both bilateral and multilateral.

Allow me to take this analysis of the CFP a step further by delving deeper into the major developments of the CFP that are of relevance to you.

Let me first refer to current policy issues. As you may already know, Fisheries Ministers who met in Luxembourg last week could not reach an agreement on the proposal for a new European Fisheries Fund.

You are well aware that the lack of agreement on the future financial perspectives at the recent summit of the European Council in Brussels, has created an environment which also influences negotiations in other areas, such as the EFF. You are also fully aware that the overall agreement on the Union's budget for the period 2007-2013 will also determine the amounts that Member States will have at their disposal for fisheries.

Major progress has been achieved in the technical discussions with Member States since the adoption of the EFF proposal by the Commission in July 2004. The text submitted to Council last week already met a considerable number of Member States' requests. In addition, I agreed with the Presidency to introduce three further far-reaching measures:

• The extension of investment aid for aquaculture, processing and marketing from small and micro enterprises to medium-sized enterprises
• measures for the modernisation of small-scale coastal fleets, and
• support for young fishermen for the first purchase of a vessel.

I hoped that an agreement on the EFF could be attained since, I believed, that the latest compromise met most of the concerns of the Member States. However, it appears that some Member States were pressing for the Commission to accept, what would amount to a step backwards from the CFP acquis acquired as part of the reform, in terms of aid for the construction of vessels. There is a simple reason as to why this cannot be accepted, which is that this would run counter to our efforts in favour of bringing fishing capabilities in line with sustainable fishing.

At this delicate stage of the negotiations, we are reflecting internally both in the Commission and with the upcoming UK Presidency on the best way to proceed with a view to reach a good agreement as rapidly as possible, if indeed we are to start implementing the new budget as of the 1 January 2007.

I am confident however that we will manage to conclude this negotiation successfully. I also believe that very soon we will also reach an agreement for the Mediterranean.

Apart from these two proposals, there is considerable work in progress in other areas of the CFP.

We are continuing our efforts towards multi-annual management for Community fish stocks. Short-term decision-making on an annual basis is gradually being replaced by multi-annual recovery plans for those stocks that are in danger of collapsing while multi-annual management plans are in the process of being established to protect those in a healthy state.

Two recovery plans are already in place: one for several cod stocks and another for the Northern hake stock. The Council should adopt this year recovery plans for sole in the Bay of Biscay, and Norway lobster and southern hake off the Cantabrian coast. The Commission is developing further proposals for recovery plans including for cod in the Baltic Sea and North Sea flatfish.

We are also looking at ways to eliminate waste and discards in our fisheries. This will help us meet the political commitments made by the Union at the 2002 World Summit on Sustainable Development in Johannesburg to restore stocks to levels that can produce a maximum sustainable yield by 2015. It also serves to promote the integration of environmental concerns into the CFP.

We hope that the Council will be in a position to adopt some time later this year, the new technical conservation measures for the Baltic. This proposal was prepared after extensive and constructive consultation with stakeholders. The Commission is open to any necessary adaptation of the proposal to regional or local conditions, but this can only be considered where there are objective reasons to do so and where such an approach does not undermine the possibilities for control and enforcement.

Control and enforcement are being strengthened to create a level playing-field across the Union. It is important to remember that infringing fishing rules has an environmental, economic and social cost. We are therefore monitoring national control systems more strictly than in the past and have launched a number of infringement procedures against Member States which are not properly enforcing fisheries rules. A major new development in this field is the Community Control Agency that will be established in Spain over the coming months.

The Regulation on the Agency entered into force on 10 June 2005. My services are now making the necessary arrangements to set up the Administrative and Advisory Boards and to recruit the Executive Director. The Commission views the creation of the Agency as a crucial element in the implementation of the reform of the Common Fisheries Policy, a clear signal that more uniform and effective enforcement of the rules is a priority. I am glad to note that Estonia is making good progress in putting in place the necessary elements to ensure the correct implementation of CFP measures.

Better involvement of stakeholders in the decision-making process is now becoming a reality thanks to the establishment of Regional Advisory Councils, or RACs. These councils, as you know, bring together, on a regional basis, representatives of the fisheries sector and other stakeholders to give advice and make suggestions to the Commission and the Member States concerned on any aspect of fisheries management.

A RAC for the North Sea is already in operation, and over the coming months, we expect a further two to three RACs to become operational. I hear that preparatory works are underway to set up the RAC for the Baltic Sea. This is a very encouraging development to strengthen dialogue in the Baltic after the dissolution of the IBSFC.

As regards external relations, we are very actively involved in the fight against illegal fishing both in regional fisheries organisations and in the United Nations and the FAO. We are also pursuing our bilateral fisheries relations with third countries on the basis of a partnership approach which is beneficial both to the third country concerned, helping it to establish responsible fisheries in its waters, and our own fishing interests.

Talks are also underway with Greenland and I hope that we will be able to finalise negotiations this year. I would also like to thank Estonia for its interest and support to our efforts to reach an agreement with Russia. After the dissolution of the IBSFC, agreement with the Russian Federation on a new fisheries relationship in the Baltic Sea will be beneficial for fisheries in the area. A new bilateral agreement will also simplify the fisheries relationship with Russia. This will be a first step in improving our relationship with the Russian Federation in this sector. Whatever the outcome of the negotiations, the Commission will ensure that the necessary measures are in place so that there is no gap in the fisheries management in the Baltic Sea and that all the obligations of the Parties concerned are fulfilled.

We are also following developments in NAFO and at the same time, maintaining close direct contacts with Canada. We are putting a lot of effort to ensure good relations with Canada while safeguarding our legitimate interests in the North West Atlantic.

We have started the process to review the Common Market Organisation which will be completed by the end of next year. I am fully aware that this reform is very important for your processing and fish farming sectors and I am looking forward to taking note of your concerns. I also understand that you are working towards setting up the first Estonian Producers Organisation and I warmly welcome your effort to do so.

The Commission is also making a great effort to promote better regulation and simplification of Community legislation. We are currently working on an action plan to simplify the rules and regulations of the CFP with a view to promoting ownership and better compliance by the fishermen themselves. We are also making efforts to accompany our proposals by impact assessments which look into the social, economic and environmental impacts of Community legislation.

I would like to close my intervention by saying a few words on maritime affairs which is also part of my portfolio.

Today, as Europe seeks to revitalise and reinvigorate her economy, it is even more important to recognise and assume the significance of the maritime dimension of the Union.

European maritime regions account for over 40% of the GNP of the former EU15, and although precise figures are not available for the enlarged Union of today, this is expected to be larger when we take into account all 25 member states. The oceans and seas, through traditional maritime industries alone, sustain between 2.5 million and 3 million jobs in Europe. They also contribute between 3 and 5% of Europe's GNP.

It is because we understand the critical importance of ocean and sea affairs to Europe, and because we recognise the need for these to be managed in a sustainable manner that the European Commission is looking at developing a new vision for oceans and seas and a Union-wide, all-embracing maritime policy. What we need is to increase co-operation, co-ordination and integration of ocean and sea-related policies at the European level. We need to develop an integrated maritime policy framework that will facilitate the development of the diverse sea-based activities.

A Maritime Affairs Task Force has been set up in DG FISH to prepare a Green Paper for adoption in 2006 and to launch a wide public debate on the subject. We are looking forward to the contribution of all interested stakeholders and I would invite stakeholders in Estonia to participate actively in the forthcoming debate.

I look forward to working with both you and your representatives over the coming years. I also look forward to receiving your reactions, comments and questions.

Thank you.