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Consultation (first phase) on the European Fisheries Fund (EFF) UK Operational Programme

Department for Environment, Food and Rural Affairs,
Fishing Industry Management Division,
Nobel House, 2nd Floor, 17 Smith Square, London. SW1P 3JR

Telephone: 020 7238 4443
Fax: 020 7238 4698
Email: gemma.daniels@defra.gsi.gov.uk
Web: www.defra.gov.uk/marine/fisheries/grants.htm

2 May 2008

Dear Sir/Madam,

Consultation (second phase) on the European Fisheries Fund (EFF) UK Operational Programme

I am writing to invite you to participate in the second phase of consultation on the European Fisheries Fund (EFF) UK Operational Programme (OP), regarding funding priorities in England.

This follows the first phase of consultation which was issued in early March. A summary of the responses to the first phase consultation and how these have been incorporated into the OP can now be found on the Defra website at www.defra.gov.uk/corporate/consult/eufishfund/

The consultation documents as listed below, can be found on the Defra website at www.defra.gov.uk/corporate/consult/eufishfund-phase2/

  • The UK Operational Programme;
  • The list of consultees
  • Strategic Environmental Assessment
Background

The EFF is the new fund for EU fisheries grants operating until December 2013, replacing the Financial Instrument for Fisheries Guidance (FIFG) grants. It is intended to promote a fisheries sector that is sustainable and profitable and which supports strong local communities, and is managed effectively as an integral part of coherent policies for the marine environment. The UK has about £97m of EU funding for the period covered by the programme. Details of the apportionment of this amount between Convergence and non-Convergence areas are set out in the OP.

The EFF targets five priority areas (axes):

  1. Adaptation of the Community fishing fleet;
  2. Aquaculture, inland fishing, processing and marketing of fisheries and aquaculture products;
  3. Measures of collective benefit;
  4. Sustainable development of fisheries areas; and
  5. Technical assistance to facilitate the delivery of assistance.

The UK National Strategic Plan, which outlines our high level objectives for the fisheries industry, has been finalised and formally submitted to the Commission. A copy can be found at www.defra.gov.uk/marine/pdf/fisheries/20080104uknspf.pdf. The Operational Programme, detailing specific funding priorities and implementation for the EFF scheme, has been formally submitted to the Commission for approval. It is now the subject of negotiation with the Commission which will be informed by your response to this second phase consultation.

Second Phase Consultation
This stage of the consultation will last for eight weeks. The first phase of the consultation sought views on the analysis and objectives of the OP, but not on the specific measures that we propose to fund which are set out in Chapter 5.  In this second phase of consultation, we welcome your views on this chapter. In particular the choice of priority axes and measures, and the result indicators. Further views on the remainder of the document are also welcome. 

Because the OP is applicable to the UK as a whole, in considering the content of Chapter 5, you will need to take account of the proposals of the different Administrations in the UK. This consultation letter provides further detail on the proposals for England and the Devolved Administrations are conducting their own separate consultations.  It would be helpful if when responding, you would distinguish between comments on the UK OP and comments on Defra’s priorities as set out below.

Funding priorities in England
The overall aim for fisheries management in the UK is a fisheries industry that is sustainable, profitable, well managed, internationally competitive and helps support thriving, diverse and sustainable local communities, managed effectively as an integral part of coherent policies for the marine and freshwater environment. In this context, ‘Fisheries 2027 – a long term vision for sustainable fisheries’ sets out our aims as to how this will be achieved in England. The European Fisheries Fund will be one of a range of policy tools and mechanisms which help us deliver, namely by focussing on funding projects which:

  • improve the balance between fishing effort and opportunity;
  • maximise economic returns from fisheries;
  • increase the competitiveness of the industry internationally; and
  • increase fisheries related employment.

Chapter 5 of the attached OP details all the measures which will be supported using EFF funds by one or other of the Administrations.  In England, we propose to support all measures set out in Chapter 5 with the exception of projects for the replacement of engines and aid for young fishers to acquire a fishing vessel.  In our view, notwithstanding the safeguards set out in the EFF Regulation, these may lead to an increase in fleet capacity.

We plan to use a proportion of the English budget to finance a decommissioning scheme for the English under 10 metre fleet. The scheme will aim to address the current problems arising from insufficient total quota availability in the under 10 metre pool which is threatening the viability of some businesses. A separate consultation on the detail of such a scheme will be launched in due course.

In order to make best use of the limited funds available under the EFF, we will target spending in England towards interventions that appear to provide best value for money in meeting the aims set out in Fisheries 2027. We do not intend to prioritise spending by reference to the sectors of the fisheries industry: catching, aquaculture or processing.  Nor do we intend to make judgements in advance about relative priorities within each axis.  For example, there is no presumption that in axis 3, an aquaculture project will be more or less likely to be funded than a marketing project.  There will be an element of competitiveness in applying for funds, and as such each project will be judged on its own merits in relation to a set of criteria that are concerned with the extent to which projects help achieve the aims of Fisheries 2027 and provide value for money.  These criteria are:

  1. Public versus private benefits
    Projects which result in a benefit to the wider public are more likely to offer value for money than those which simply benefit the individual.  For example, a change in fishing gear to reduce discards would be ranked above a project which improved crew facilities.  There is one important exception to this general rule, namely safety training and equipment which generally results in a benefit to those trained.  However, one of our key objectives is to improve the safety record of the catching sector.  We will therefore fund non-mandatory safety training and the purchase of appropriate equipment as a priority.  

  2. Externalities
    Projects which result in costs to the wider public (a negative externality) would be afforded a lower ranking than projects which result in wider public benefits. For example, we would give greater priority to projects that reduce excess capacity such as a targeted decommissioning scheme, or that promote diversification from unsustainable to sustainable fishing through vessel modernisation or improvements to processing, as these can help reduce the wider costs associated with overfishing.

  3. Informaton deficiencies
    Information deficiencies are one of the main obstacles to an efficient and effective market mechanism for fish.  They can result in a lack of co-operation within the industry, or between scientists and government, and may also result in a lack of consumer awareness about particular goods and services. We will rank highly those projects which reduce information deficiencies, for example by the improved marketing of fisheries products to boost consumer awareness, or pilot studies which improve understanding of fishing resources and the benefits of the marine environment.

  4. Displacement and Additionality
    We will consider the likelihood that a project would remove business from other areas. For example, funding a port development may have the potential to move activity away from neighbouring ports, therefore resulting in little additional benefit. We will also consider the likelihood of a project going ahead without grant funding so that grant monies are used to the best effect.

UK Fisheries Ministers have agreed a split of the UK EFF budget which results in England receiving approximately £34m of the total allocation.  Although we are not prioritising projects within the EFF axes themselves, as part of the OP we must allocate a proportion of the funds to each of the Priority Axes. We propose to do this as follows (all figures are approximate, use the exchange rate on 16/04/08 of £1=€0.8078, and are in £’s).

Convergence (Cornwall and the Isles of Scilly)

EFF Priority Axis

EFF contribution

Member State contribution

Total funding available

Axis 1

2,404,329

801,443

3,205,772

Axis 2

1,215,778

405,260

1,621,038

Axis 3

3,500,727

1,166,909

4,667,636

Axis 4

837,746

279,248

1,116,994

Axis 5

418,873

139,624

558,497

Total

8,377,453*

2,792,484

11,169,937

Non-Convergence (the rest of England)

EFF Priority Axis

EFF contribution

Member State contribution

Total funding available

Axis 1

8,701,295

8,701,295

17,402,590

Axis 2

4,306,777

4,306,777

8,613,554

Axis 3

11,905,376

11,905,376

23,810,752

Axis 4

3,074,260

3,074,260

6,148,520

Axis 5

2,350,989

2,350,989

4,701,978

Total

30,338,696*

30,338,696

60,677,392

* These figures total more than £34m because the tables reflect the latest exchange rate. The figures will vary throughout the duration of the Programme.

During the course of the EFF Programme, there will be opportunity to re-align the funds should we not receive sufficient applications under a particular Priority Axis to take up the available funding. With the assistance of our grants facilitators we will actively encourage applications for projects that help meet our objectives.

In this second phase of consultation, we would be grateful for any comments you may wish to make on:

  • the proposed measures which will receive EFF support in England;
  • the proposed financial allocation of funds across the five EFF Priority Axes for England.
How to respond

If you wish to obtain a hard copy of this consultation, please contact Gemma Daniels at the address below.

We would prefer to receive responses by email to EFF.Consultation@defra.gsi.gov.uk, but are also happy to receive comments by post to:

Gemma Daniels
Department for Environment, Food and Rural Affairs,
Fishing Industry Management Division,
Area 2C, Nobel House,
17 Smith Square,
London.
SW1P 3JR

Deadline for responses: Friday 27th June 2008

In line with Defra’s policy of openness, at the end of the consultation period copies of responses we receive may be made publicly available through the Defra Information Resource Centre, Lower Ground Floor, Ergon House, 17 Smith Square, London. SW1P 3JR. The information they contain may also be published in a summary of responses.

If you do not consent to this, you must clearly request that your response be treated as confidential. Any confidentiality disclaimer generated by your email system will not be treated as such a request. You should be aware that there are circumstances in which Defra will be required to communicate information to third parties on request, in order to comply with its obligations under the Freedom of Information Act 2000 and the Environmental Information Regulations.

The Information Resource Centre will supply copies of consultation responses to personal callers or in response to telephone or email requests (tel: 020 7238 6575, email: defra.library@defra.gsi.gov.uk). Wherever possible, personal callers should give the library at least 24 hours notice of their requirements. An administrative charge will be made to cover photocopying and postage costs.

This consultation has been prepared in line with the Government code of practice which is available from the Department for Business, Enterprise and Regulatory Reform at http://bre.berr.gov.uk/regulation/consultation/.           

Comments or complaints about the consultation process (as opposed to comments about the issue which is the subject of consultation) should be addressed to:

Marjorie Addo
Defra Consultation Co-ordinator
Area 7C, Nobel House,
17 Smith Square, London.
SW1P 3JR
Email: consultation.coordinator@defra.gsi.gov.uk

We look forward to receiving your views and appreciate your participation in this process.

Yours sincerely,

Gemma Daniels
Department for Environment, Food and Rural Affairs

Page published: 2 May 2008

Department for Environment, Food and Rural Affairs