I have fundamental problems, in principle and in practice, with the Commission's proposed terms and conditions for grant aiding fleet renewal under the next round of Structural Funds 2000-2006.
The Commission's proposals include a 130 per cent tonnage replacement requirement as a precondition for grant aiding the introduction of new and second-hand vessels. The Commission is also proposing a number of other restrictive fleet capacity management measures in the financial regulation, including an effective ban on the trading of fishing vessels within the EU fleet. Essentially the Commission is seeking to set fleet capacity parameters which are much more restrictive than the MGP IV fleet programme framework which was agreed by Council in 1997. It also seeks to pre-empt, in my view, future decisions by Council about the nature and framework of the next fleet programme – MGP V – for the period after 2001.
Ireland and other member states agree that the funding of fleet modernisation and renewal in the next round should, as is the case at present, be subject to member states meeting their obligations in relation to fleet capacity and fishing effort under the MGP programmes. To that extent, the funding proposals should indeed take due account of the existing MGP Council decisions and parameters laid down in the individual fleet programme of member states.
It is not acceptable for the Commission in its financial regulations to try to rewrite the 1997 Council Decision on MGP IV and to pre-empt political negotiations and decisions on the parameters for the next MGP which will be determined in 2001. In discussions to date at official level in Brussels on the Commission's proposals, Ireland together with a number of other member states has strongly opposed the restrictive fleet proposals and in particular the 130 per cent capacity cut as completely unacceptable. There will be an initial debate by Ministers at next week's Fisheries Council on the key issues of the Commission's proposed regulation. I will be making clear my opposition to the fleet provisions and I will be looking for support from like-minded colleagues in urging the Presidency and the Commission to think again.
The fishing industry organisations have been fully briefed on the proposals and I know that I have their full support in opposing these unduly restrictive measures. My objective is to ensure continued support for the modernisation and renewal of the Irish whitefish fleet in particular, in line with our obligations under MGP IV and, in due course, MGP V when this is negotiated and agreed by the Council of Ministers. The rules governing EU and national support for fleet renewal in the next Structural Funds round should fully reflect existing fleet capacity parameters under MGP IV. They should not, however, attempt to rewrite or pre-empt past or future Council decisions on the direction of fleet policy. I am sure I will have the full backing of the House in resisting the Commission's proposals.