They will be our facilities but there must be free and equal access to those facilities and that is why the French and Dutch will come over here and take over permanently. There has been a sell-out of our herring grounds. There can be no doubt about that. When the Parliamentary Secretary comes to reply I would like him to give us the reason why he did not mention this sell-out of our herring grounds here this morning.
Now, the review clause in the agreement will be based not necessarily on Ireland's position at the time of the review but on the report compiled by the Commission in the interim. That report will set out the position as it then obtains. It is then that the Council acting on the proposal of the Commission will examine the arrangements which will follow the derogations in force until 31st December, 1972. We will, of course, have a say on the Council and on the Commission, but I suggest to the Parliamentary Secretary that the ten year clause could have serious repercussions. Our fishermen may not invest as much as they should in bigger trawlers and better equipment. The Irish fishing fleet has a future and a better future within the EEC than it would have outside it. An argument which might be advanced for Irish fishermen staying outside the EEC is the fact that from July to February there are no Common Market countries operating here. I would hope that within the EEC the supply position would be such that the enlarged Community of Ten would, in fact, have a common external tariff against other countries supplying fish, such as herring, to the Community. This is something that must be negotiated. There was no reference to this by the Parliamentary Secretary. It is solid, factual information like that, that everyone can understand, which is so important not only to this House but to those involved in the industry. That information has certainly not been forthcoming here.
Under Article 5 of the regulation the Council voting on a proposal by the Commission according to the procedure provided for in Article 43 (2) of the Treaty may adopt the measures necessary for conservation, that is conservation of various species of fish. These measures may involve restrictions concerning the catching of certain species, fishing zones, periods, methods and gear. The power of stock conservation is the most important thing in this regulation because if we are serious about keeping a proper stock of such fish as herring and the main pelagic and demersal fish species the position must be examined immediately in relation to present stocks, future likely stocks, what constitutes over-fishing, what types of nets and what types of trawling should be used in the different areas.
Again, we had no attempt to discuss this aspect of the matter here today except in relation to salmon fishing and fresh water fishing. There was no reference to the position in regard to pelagic fish.
Article 6 refers to the co-ordination of policies in relation to the fisheries structure of the member states and each state must send to the Commission each year information on the state of structures, the links between structures and market policy, the nature and scope of measures for the improvement of structures planned for the current year, annual and pluri-annual programmes and projects of research and scientific and technical assistance introduced by the public authorities or financially assisted by them and the various information which is necessary to have a regulation work properly. Under this heading it occurred to me to discuss the whole future of Bord Iascaigh Mhara. The Parliamentary Secretary should have stated quite clearly what is to be the future of this State body. I am forced to give my personal opinion which is that the Government would be entitled to appoint BIM as the Government agency under the regulations of EEC. This important point should have been made clear here by the Parliamentary Secretary. This type of omission leaves one stunned.
I take it An Bord Iascaigh Mhara will be the Government agency which will act at the withdrawal level in relation to the support price scheme and act as the Government agency in general in regard to the future structure of the industry. We were entitled to a statement in regard to BIM, which certainly has done excellent work in the past few years in regard to the development of the fishing industry and I would be first to say so. I am not criticising the board but I want to know how it stands under EEC conditions and the House is entitled to that information.
Under Article 7 the Commission will submit a report each year concerning fishery structures to the Assembly and the Council. This will be a comprehensive report in relation to various aspects of fishery structures, including finance, and will be important. Article 8 mentioned that it was necessary to co-ordinate member states' policy on research and scientific and technical assistance in the fisheries sector. This is very true and research at present being done by such countries as England, Holland, France and Germany will be of great benefit in the light of our own inadequate resources in this field.
Article 9 lays down the position concerning member states' financial aids which I have already mentioned. Article 10 points out that it is necessary to give a fair standard of living to the population which draws its resources from fishing. It states that it is necessary to increase productivity by restructuring such things as fleets and trawler types, the adaptation of production and marketing conditions according to market requirements. That is dealt with by another regulation to which I shall refer later. It also deals with the improvement, hand in hand with the development of technical progress, of the standard and conditions of living of the population which draws its resources from fishing.
Article 11 discusses the legal necessity for a number of reports and documents to be sent to the Commission from time to time. Article 12 lays down that a Permanent Committee on Fishery Structures will be set up under the aegis of the Commission. This is a body which will guide the various reforms in the industry. We shall have a representative on it and the Committee will be under the chairmanship of a representative of the Commission. Article 13 provides that it shall be this committee's responsibility to ensure the exchange of information and to study the members' structural policy, to assist in reports, et cetera. This is to be the guiding or management committee in relation to policies adopted by EEC. It also says that the conditions governing grant aid will come from the European Agricultural Guidance and Guarantee Fund which is the fund from which we will draw any funds we get from the Community.
Finally, Article 15 states that the regulation comes into force on the third day after its publication in the official journal of the European Community, that is towards the end of 1970. The system provided for by this regulation shall be applicable as and from 1st February, 1971, with certain exceptions. That was signed on 20th October, 1970, by H.D. Griesau. That document is of great importance and should at least have been noted in the introduction of the Estimate but was not.
The other regulation, which is Council regulation EEC 2142/70 of 20th October, 1970, is concerned with the common organisation of markets in the sector of fisheries products. This regulation was made on the Commission's proposal and after getting the Assembly's opinion and the opinion of the economic resources committee. This again lays down the various regulations in respect of marketing, such as marketing standards and rational disposal of production. It tells us that the EEC member States are prepared to help finance the activities with a view to achieving rational development of the industry. It is laid down here also that there will be a guide price for each product to be affected by this policy. Products are listed in a number of annexes at the end and I shall refer to them later. Laid down also is the position in respect of withdrawal of products in the case of prices falling below a certain level. It states that it is expedient to support the activities of producer organisations by granting them financial compensation for quantities withdrawn from the market. I shall discuss that later also as it is of importance to us.
In relation to certain frozen products it is stated that it would be expedient to provide for private storage of these products. The position in relation to producer organisations is important. These organisations can be financed to a certain extent by Member States both by way of grants-in-aid and by loan for a number of years and also from the EEC fund.
The present position within the Six in respect of herrings is that there is a lack of supplies. There is no tariff on the importation of herrings but when we enter the Community the position will be changed substantially. I had expected the Parliamentary Secretary to state that within the enlarged Community there would be a Common Market tariff on third countries who might be endeavouring to supply the Market with herrings. This is an important aspect in so far as our fishing industry is concerned. There is provision for an export subsidy in relation to certain species of fish for which there is a demand in third countries. This would be of help to the Community because there is an over-supply of certain species. It would enable them to maintain a proper market level within the Six.
Section 1 of the Regulations deals with the marketing standards of fish. The only fish for which there would be compensation in respect of withdrawal would be those that measure up to a proper standard. It will be the responsibility of member states to ensure these standards are maintained and this is being done at present in Ireland in respect of certain species of export fish but there must be further expansion. Section 3 of Article 4 reads:
Member States shall notify other Member States and the Commission at the latest one month after the coming into force of each marketing standard, of the name and address of the agencies entrusted with checks in respect of the product or group of products for which the standard has been adopted.
I assume that in our case An Bord Iascaigh Mhara would be the agency. This should be stated specifically by the Parliamentary Secretary.
Section 2 deals with producer organisations. As I see it, these organisations have an important role to play within an enlarged Community, especially in so far as we are concerned. The reason for the promotion of producer organisations is to have some co-operative and national element in the marketing and disposal of various fish species. Of course it would be incumbent on members to dispose of the entire output of products through the agency of the organisation. Regarding production and marketing it is stated that the rules adopted by the producer organisations with a view in particular to improving the quality of products and to adapting the volume of supplies to the requirements of the Market. It is important that that would be part of a national supply scheme in relation to marketing of all species of fish, especially on the export market. Indeed, there is no reason why there should not be a rational disposal of the demersal species of fish on the home market.
Under Article 6 member states may make grant aids to producer organisations to promote their establishment and facilitate their operation. However, it must be stated clearly that such aids would be given only for three years and that they are limited. Nevertheless, the emergence of producer organisations should be of benefit to the industry. During the first five years of establishment of these producer organisations, member states may grant to them, directly or through the agencies of accredited institutions, aids in the form of special loans to cover part of the foreseeable expenses connected with the interventions on the market. These would be recoupable from the EEC funds. Again, I expect this would be done through An Bord Iascaigh Mhara rather than that it would be under the aegis of the Department of Agriculture and Fisheries.
Section 3 deals with the price system. There are two aspects of this which are important. The regulations list the particular species of fish in respect of which compensation would be paid to member producers if quantities are withdrawn from the market and in relation to other types of fish it is stated that producer organisations may grant compensation to the member producers. The fish in respect of which there would be mandatory compensation are listed in Annex 1 of the regulations and included among these are herrings, sardines, different types of haddock, whiting, mackerel, plaice and shrimps. It is important that compensation is mandatory in respect of these species. In so far as other species of fish are concerned the position is easier and it is a matter for the producer organisations to decide whether to grant compensation on withdrawal of catches or parts of catches. It is stated that:
For the financing of these withdrawal measures, the producer organisations shall set up intervention funds which shall be fed by contributions based on the quantities offered for sale or shall resort to an equalisation system.
Of course the moneys would be recouped partially from the Agriculture Prices and Guidance Fund. Article 8 specifies that before the start of the fishing season a guide price shall be fixed for each of the products listed in Annex 1, sections A and C. This is the fish to which I have already referred and on which it is mandatory to give compensation.
I note from the Parliamentary Secretary's speech that, on accession, we shall be coming up to the present EEC price level over the five-year period. This is important, because under Article 8, section 2, the guide price shall be fixed on the basis of the average of the prices recorded on the representative wholesale market or port during the last three fishing seasons. If we were to base them continually on the Irish price we would be at a disadvantage. It is much better to go to the existing price level within the Community, as we shall be doing for other agricultural products.
Under section 3 the intervention price shall be fixed at a level situated between 35 per cent and 45 per cent of the guide price, according to the production and marketing characteristics peculiar to each product. This is a rather low level of intervention, and perhaps the consequences for the Irish fishing industry under this section should be analysed and spelled out to this House.
Article 10 provides that the member states shall grant financial compensation to producer organisations to carry out intervention. The financial compensation shall only be granted if the products withdrawn from markets are sold for purposes other than human consumption or under such conditions as do not constitute a hindrance to normal disposal of the products in question. I wonder would the producer organisations be allowed to freeze fish —for instance, quantities of herrings— if the price was below normal, or would the State agency be allowed to purchase low-priced yet good quality fish which, as far as I am concerned, should not be used for purposes other than human consumption. Even if the fish had to be bought by the State and shipped out as part of our national contribution to poor nations, so be it; I am against destroying food, because it is wrong and unnecessary. There is also a provision to the effect that the value of the financial compensation shall be equal to the amount resulting from the application of the quantities withdrawn. Then it refers to a price equal to 60 per cent of the guide price when the level of withdrawal price is above 65 per cent of the guide price. This is somewhat technical and I would welcome a plain statement from the Parliamentary Secretary covering the various amounts of compensation which would be forthcoming in the event of withdrawal. There are a number of provisions in relation to sardines, tunny fish and so on which are not really relevant to the situation in Ireland except in regard to the point that other countries have been able to get exceptional protection in relation to the supply of particular species of fish which this country has failed to get in respect of herrings.
Section 4 is concerned with the system of trade with third countries. It provides that there shall be a common customs tariff in respect of imports. Quantity restrictions will not be allowed nor will the levying of other extra charges except in relation to tunny fish, which is used largely for processing. Section 5 of Article 18 deserves comment:
However, the suspension or limitation of imports shall not be applicable in respect of third countries which undertake to guarantee compliance with the reference price subject to specified conditions and which actually comply thereto in their deliveries to the Community.
In this connection it is just as well that the four applicant countries are going into the Community together; otherwise they would be competing for the same market.
Article 21 allows rebates for exports to third countries and states that rebates shall be the same for the whole Community. This is important in situations in which the Community price is low and it will be of benefit to the Community to export fish to third countries. Section 5 deals with general provisions. Section 2 of Article 22 states specifically—and this is worthy of note—that aids granted by member states in accordance with Article 6 (1) shall be reimbursed by the European Agricultural Guidance and Guarantee Fund at the rate of 50 per cent of the amount. It will not be a total reimbursement. Some expense will fall on the State in relation to aids granted by this country to producer organisations.
Article 23 demands that there be equality of condition of access to ports. Then there is the point on which the Parliamentary Secretary took me up when I said that the French could fish in the six- to 12-mile limit at present under the London Convention of 1964. I was well aware of that when I said that some French trawlermen have stated that they would come to live permanently in Ireland upon our accession. Under section 2 of Article 23, which I am summarising for the benefit of this House in the absence of a proper statement by the Government in this respect, it is provided:
Without prejudice to other Community provisions, Member States shall take the necessary steps to ensure, for all fishing vessels flying the flag of one of the Member States, equality of conditions of access to ports and primary marketing installations, as well as to all equipment and all technical fittings pertaining thereto.
This is why the Six want the leeway to fish within the six- to 12-mile zone. They will have an extra advantage and extra facilities. They have better fishing equipment and better trawlers and, when we become a member, they will be allowed to have equal access to all our ports.