EUROPEAN PARLIAMENT Committee on Fisheries Public Hearing Are Transferable Fishing Concessions appropriate tools for addressing overcapacity and fleet management? appropriate tools for addressing overcapacity and fleet management? 24 April to Room ASP 1G3, Brussels Sean O Donoghue Killybegs Fishermen’s Organisation & Federation Irish Fishermen

Are TFCs appropriate tools for addressing overcapacity & fleet management? Answer NO

WHY?   Socio Economic issues   Major Problems Safeguard Measures   Definition Fishing Overcapacity   Financing Issues

Transferable Fishing Concessions Reminder Commission’s Proposal Key Elements   Mandatory obligation all Member States   Time limited 15 years   Applies vessels greater than 12 metres   Special Provisions regarding concessions

Transferable Fishing Concessions Socio-Economic Issues Why is mandatory nature major problem?   Concentration of ownership of quotas   Internally within Member State   Externally across Member States   No longer economic benefit to local fishery dependant areas   Demise Fishing Communities   Example Killybegs

Socio –Economic Issues Fishing Effort All Countries Irish EEZ Socio- Economic Issues

Killybegs Impact Assessment Study n Report commissioned by EC/DG MARE Fish / 2006 / 06 European Commission Studies in the Field of the Common Fisheries Policy and Maritime Affairs Lot 4: Impact Assessment Studies related to the CFP Regional social and economic impacts of change in fisheries-dependent communities March 2011 n One of 24 case studies in 5 fisheries dependent areas.

Killybegs Turnover 82% Dependence on Seafood Sector EU average 11%

Killybegs Employment 68% dependant EU average 14%

Transferable Fishing Concessions Socio-Economic Issues Why is mandatory nature major problem?   Concentration of ownership of quotas   Internally within Member State   Externally across Member States   No longer economic benefit to local fishery dependant areas   Demise Fishing Communities   Example Killybegs   Social fabric of Fishing Community destroyed

Transferable Fishing Concessions Major Problems Safeguard Measures   Ruling ECJ Factortame Cases 1991, C-213/89 & C-221/89   Cannot discriminate on nationally grounds   Provides possibility for economic link criteria

Transferable Fishing Concessions Major Problems Safeguard Measures   Economic link criteria ineffective   UK (Defra) review 2009 shows :   After implementation number economic link criteria over ten years   Benefit to the UK from foreign owned vessels 10% approx. turnover of foreign vessels   Once TFCs mandatory economic link criteria ineffective   Commission cannot guarantee otherwise   Court Rulings & Treaty provisions exist

Definition Fishing Overcapacity   Not defined existing CFP or proposal   Court of Auditors Special Report No “ Existing definitions of fishing capacity did not adequately reflect the ability of vessels to catch fish; Fishing overcapacity had not been defined or quantified; Fleet capacity ceilings had little real effect on adapting fishing capacity of the fleet to fishing opportunities”

Definition Fishing Overcapacity   Equals economic overcapacity Is an individual fishing vessel economically viable with available fishing opportunities?   Complex & variable   TFCs not solution instead   Targeted scrapping

Transferable Fishing Concessions Financial Issues   Economic overcapacity   Over capitalisation remaining vessels   Bank lending present climate   Increased fishing pressure

Conclusion Transferable Fishing Concessions are not appropriate tools for addressing overcapacity & fleet management

END.