Environmentally harmful subsidies – a real threat to biodiversity Policy Dialogue Brussels, 11 th January 2010 Fisheries Subsidies Where are the benefits?

Environmentally harmful subsidies – a real threat to biodiversityPolicy DialogueBrussels, 11th January 2010

Fisheries SubsidiesWhere are the benefits?

2

Effects of fisheries subsidies

Subsidies

Overcapacity

Catch limits too high

Illegal (IUU) fishing

4

State of EU Fisheries

88%30%

5

Where Has All the Fish Gone?

6

A “Simplified Food Web for the Northwest Atlantic”• Little knowledge about the effects of

over-fishing;• High levels of by-catch and discards;• Impacts on marine habitat.

7

Selected Fisheries Subsidies Per Year

Source Million

European Fisheries Fund €850

Fuel tax exemption (assessment) €200

Fisheries Partnership Agreements €150

State aid ?

De-minimis (maximum) €240

Total €1.440

EC contribution to control and enforcement is limited to € 46 million

8

Amount of Fisheries Subsidies

• In some Member States management costs are higher than the value of landing.

• 80% of the wealth generated in France, 70% in Italy, 75% in Denmark 60% in Spain.

9

Annual Total FIFG income per fisheries sector employee

Source: Poseidon 2010

10

Exacerbating overcapacity

Tuna Purse Seiner Fleet in the Mediterranean

FIFG 1994 - 2006:

• > € 9 Mill. of aid for modernisation

• > € 8 Mill. for construction

• ~ € 70.000 to scrap one single vessel

Bluefin Tuna is on the brink of collapse due to over-fishing.

11

Fleet Main centres C M S Key Target Stocks Status Trend Channel and North Sea mixed whitefish bottom trawl

DK: Jutland FR: Brittany & Normandy

Cod (Subarea IV North Sea and Divisions VIId (Eastern Channel) & IIIa (Skagerrak).

↑

North Sea mixed whitefish gillnet DK: Jutland Cod (Subarea IV North Sea and Division IIIa Skagerrak).

↑

Biscay & Iberian bottom-set gillnet

ES: Andalucía & Galicia Hake (Southern VIIIc and IXa) ↓ Monkfish (VIIIc & IXa) ↓

Biscay & Iberian mixed whitefish bottom trawl

ES: Andalucía & Galicia Hake (Southern VIIIc and IXa) ↓ Monkfish (VIIIc & IXa) ↓ Megrim (VIIIc & IXa) → Demersal elasmobranchs (VIII & IXa) →

Biscay & Iberian prawn bottom trawl

ES: Andalucía & Galicia Nephrops (VIIIc & IXa) →

Western Mediterranean hake gillnet

ES: Valencia & Catalonia Hake (GFCM GSA 06; FAO 37.1.1) ↓

Western Mediterranean hake bottom trawl

ES: Valencia & Catalonia; Hake (GFCM GSA 06, FAO 37.1.1) ↓ FR: Gulf of Lions Hake (GFCM GSA 07; FAO 37.1.1) ↓

Western Mediterranean tuna gillnet

ES: Valencia & Catalonia Bluefin tuna (FAO 37.1 & ICES IXa) ↓ FR: Hérault / Gard Bluefin tuna (FAO 37.1) ↓

Biscay & Iberian small pelagic purse seine

ES: Basque Country; Andalucía

Anchovy (VIIIbc; IXa) →

Western Mediterranean small pelagic purse seine

ES: Valencia & Catalonia Sardine (GFCM GSA 1 & 6, FAO 37.1.1) →

FIFG 2000-06 Spending on Key Fleets

Source: Poseidon 2010

12

Restructuring the Fleet? Spanish FIFG 2000-2006 Length Measure Pct Total

< 12 meter Scrapping 7,3% 11,3%

Reassignment/Transfer 3rd country 0,2% Construction of new vessel 2,7%

Modernisation 1,0% 12 - 24 meter Scrapping 19,4% 36,0%

Reassignment/Transfer 3rd country 0,8%

Joint enterprises 0,2% Construction of new vessel 9,6% Modernisation 6,0% > 24 meter Scrapping 18,2% 52,4%

Reassignment/Transfer 3rd country 1,3% Joint enterprises 3,3% Construction of new vessel 21,7% Modernisation 7,9%

Total 100,0% 100,0%

13

“Just” spending?

FIFG spending for vessels 1994 – 2006

• 87% of aid to 20% of the ports

• 78% of aid to 20% of the vessels

• 7-30% of vessels have received aid, the majority received no aid

• Top recipients got up to €5 Million

• Vessels get repeat funding (up to 17 times)

• Vessels engaged in illegal fishing activities received aid

14

The way forward: Disclosing subsidies

15

The way forward: Analyzing subsidiesCriteria Support should: Support should not: Environment Reduce environmental impact;

Incorporate long term considerations;

Increase fishing capacity or effort;

Economics Promote market transparency; Pursue synergy with existing

market incentives; Benefit all producers

proportionately; Create conditions for efficient

entrepreneurship;

Be directed at individual producers;

Benefit specific groups over others, providing them competitive advantage, on national or international level;

Should not affect profitability;Policy consistency

Be consistent with and strengthen the CFP;

Exploit synergies and be consistent with market incentives;

Create incentives which are inconsistent with other parts of CFP (or other policies) in terms of policy options and pursued impacts;

Attempt to overrule market forces;

Policy efficiency

Consider whether alternative policies, with similar affects, but at lower costs can be identified;

Be limited in scope and time.

Be based on short term environmental, economic or political considerations;

16

The way forward: Phasing out harmful subsidiesElimination

Modernisation measures Fishing ports and shelters; Development of new markets; Modification of vessels for other activities; Fuel tax exemption;

Support to access in 3rd countries; Gear selectivity; Quality and food safety; Working conditions; Collection of lost gear.

Positive incentives Control and enforcement; Management of resources, incl. , science,

stock assessments, and Natura2000; Cooperation between science and sector in

areas of technology and management;

Development of new technologies to reduce discards, environmental impact or improve energy efficiency, but not supporting their introductions;

Certification and labeling.

Transferral to other structural funds Socio-economic measures, such as

sustainable development of fisheries areas.

17

No one said it is easy

• Discussion dominated by loud, vested interests• Crisis is under the surface• Fish is just not a polar bear• Lack of transparency• Lack of public scrutiny• Lack of political will and courage• Lack of champions and opportunities for

political profiling

Stop over-fishing or fishing will be over

18

Thank you for your [email protected]