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Structural Policy and State Aid

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1 Structural Policy and State Aid
M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Working Group for Chapter 13 –Fisheries Bilateral screening: Chapter 13 Structural Policy and State Aid Srđan MUGOSA Brussels, 5 – 6 June 2013

2 A. STRUCTURAL POLICY Chapter 13: Fisheries Chapter 13: Fisheries
M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 13: Fisheries Poglavlje 25 Nauka i istraživanje

3 Chapter 13: Fisheries Structural policy for the fisheries in Montenegro today is not laid down in the same way as it is done by the EU legislation The framework of support to the fisheries sector is laid down under the general agricultural policy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Poglavlje 25 Nauka i istraživanje Chapter 13: Fisheries

4 Institucional Capacity
Chapter 13: Fisheries Institucional Capacity Ministry of Agriculture and Rural Development Directly in charge of administrative and technical affairs in fisheries, develops and implements laws, secondary legislation and develops the annual plan for use of funds for support to development of agriculture and fisheries Implementation of all measures of support to the sector of agriculture and fisheries are monitored by: Office for financial-accounting affairs under the MARD State Treasury- Ministry of Finance MARD employees tasked with implementation of specific support programmes M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Poglavlje 25 Nauka i istraživanje Chapter 13: Fisheries

5 Chapter 13: Fisheries Legal Framework Law on Agriculture and Rural Development (Official Gazette of Montenegro 56/09) Law of Marine Fisheries and Mariculture (Official Gazette of Montenegro 56/09) Law on Budget of Montenegro for 2012 (Official Gazette of Montenegro 66/11) Decree on conditions, method and the pace of implementation of measures of agricultural policy for 2012 – Agro-budget (Official Gazette of Montenegro 36/12) M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 13: Fisheries Poglavlje 25 Nauka i istraživanje

6 Fisheries Policy Measures
Chapter 13: Fisheries Fisheries Policy Measures With a view to exploitation of living marine resources in accordance with the sustainable economic, environmental and social development, the Law on Marine Fisheries and Mariculture lays down the fisheries policy measures that include Development of the fishing fleet Development of aquaculture Processing, marketing of fish and fish products and aquaculture products Collective actions Sustainable development of fishing areas Technical support measures M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 13: Fisheries Poglavlje 25 Nauka i istraživanje

7 Montenegro’s Fisheries Development Strategy (2006-2016)
Chapter 13: Fisheries Montenegro’s Fisheries Development Strategy ( ) Three national priorities are laid down: Strengthening of legal framework, institutions, laboratory capacity and industrial standards with a view to improving the health status of fisheries products in line with the EU requirements; Institutional capacity building (human resources, training, equipment) of the national fisheries policy of Montenegro for the purpose of harmonisation with the common EU legislation (Common Fisheries Policy); Setting up and implementation of mechanisms that would provide a favourable investment environment for the fisheries sector of Montenegro. The document was developed under the CARDS 2005 project ’Support to fisheries sector in Montenegro and Serbia’’ M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 13: Fisheries Poglavlje 25 Nauka i istraživanje

8 National Program of Fisheries Development (2009-2013)
Chapter 13: Fisheries National Program of Fisheries Development ( ) Amends and develops the Strategy in detail Project approach of the European Fisheries Fund used The goal is to develop an integrated approach to development i.e. to ensure sustainable use of fishery resources Experts hired under the CARDS 2005 Project “Support to fisheries sector in Montenegro and Serbia” assisted the development of this document M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 13: Fisheries Poglavlje 25 Nauka i istraživanje

9 Programs of support to fisheries sector in 2012
Chapter 13: Fisheries Programs of support to fisheries sector in 2012 M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 13: Fisheries Poglavlje 25 Nauka i istraživanje

10 Program Title: Improvement of fishing fleet and mariculture sector (I)
Chapter 13: Fisheries Program Title: Improvement of fishing fleet and mariculture sector (I) Program objectives: Improvement of professional fishing fleet Increasing the competitiveness and efficiency of the sector of catching fish and other marine organisms Increasing the competitiveness and efficiency of the mariculture sector Improving the quality and health safety of fishery and mariculture products Eligibility criteria: Co-financing in the form of a grant for purchase of fishing equipment (cold stores, generators, etc.) Max contribution of public funds is 50% of the equipment value, max 10,000 € Max contribution of public funds for completion of the depuration centre is up to 50% of the estimated value of costs for completion of the facility, max 20,000€ M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 13: Fisheries Poglavlje 25 Nauka i istraživanje

11 Chapter 13: Fisheries Program Title: Improvement of fishing fleet and mariculture sector (II) Beneficiaries: Eligible for support are professional fishermen, holders of the permit for commercial fishing Bivalve molluscs farmers Payment method: Upon receipt of the invoice and report of assistants from the Unit for Fisheries of the MARD Implementation procedure: Conditions for using the funds laid down by the public competition Supervision and control: MARD and Fisheries Inspectorate Support funds: 100,000 € M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 13: Fisheries Poglavlje 25 Nauka i istraživanje

12 Chapter 13: Fisheries Program Title: Sustainable management and preservation of resources of fish and other marine organisms (I) Program objectives: Reliable assessment of available resources of fish and other marine organisms (demersal, pelagic fish, bivalve molluscs) with the capacity for setting the catch quotas Fishery sea zones safe, in terms of health, for farming mariculture products Reduction in number of illegal fishing activities Strengthening of the associations of professional fishermen and farmers Maintenance and improvement of the Fishery Information System Eligibility criteria: Support is provided to the activities of the Institute for Marine Biology, the competent scientific institution for marine fishery and mariculture activities, which performs annual monitoring of demersal and pelagic resources, resources of bivalve molluscs as well as monitoring and biomonitoring of the quality of sea water for mariculture Support to associations of producers in fisheries M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 13: Fisheries Poglavlje 25 Nauka i istraživanje

13 Chapter 13: Fisheries Program Title: Sustainable management and preservation of resources of fish and other marine organisms (II) Beneficiaries: Institute for Marine Biology Associations of fishermen and farmers Payment method: Upon receipt of the invoice and report of assistants from the Unit for Fisheries of the MARD Implementation procedure: Support to the Institute for Marine Biology is provided on the basis of detailed monthly reports on activities undertaken and progress made Support to associations of fishermen and farmers is provided for activities aimed at establishing of producer organisations or other organisational forms in line with the EU rules Supervision and control: MARD and Fisheries Inspectorate Support funds: 31,000 € M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 13: Fisheries Poglavlje 25 Nauka i istraživanje

14 Program Title: Support to freshwater fishery development (I)
Chapter 13: Fisheries Program Title: Support to freshwater fishery development (I) Program objectives: Reliable estimation of available fish resources in freshwater fishery waters Development of sport fishing tourism Strengthening of activities of sport fishermen clubs in protection of fishery waters and resources Eligibility criteria: Support is provided to the Faculty of Mathematics and Science – Department of Biology, for development of the fishery master plan Support to sport fishing clubs is provided for supply of fish juvenile for restocking as well as in the form of short-term support to improvement of preservation and protection of fishery waters and organisation of sports fishing events M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 13: Fisheries Poglavlje 25 Nauka i istraživanje

15 Program Title: Support to freshwater fishery development (II)
Chapter 13: Fisheries Program Title: Support to freshwater fishery development (II) Beneficiaries: Faculty of Mathematics and Science – Department of Biology Sport fishing clubs Payment method: Upon receipt of the invoice and report of assistants from the Unit for Fisheries of the MARD Implementation procedure: Support to the Faculty of Mathematics and Science – Department of Biology is provided on the basis of the fishery master plan developed Support to sport fishing clubs is provided on the basis of the reports submitted and inspectors’ protocols on restocking done, and based on plans of protection of fishery waters Supervision and control: MARD and Fisheries Inspectorate Support funds: 40,000 € M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 13: Fisheries Poglavlje 25 Nauka i istraživanje

16 Administrative structure needed
Chapter 13: Fisheries Administrative structure needed In order to ensure proper and efficient management of the European Fisheries Fund (EFF/EMFF) Montenegro plans to set up the necessary administrative structure as follows: Department for structural, market measures and planning in fisheries - Managing authority – prepares the National Strategic Plan, the Operational Plan, identifies priorities and objectives of fisheries development, that is, selects the structural policy measures to be financed. Paying Agency for agriculture, rural development and fisheries – calls tenders, processes applications, carries out on the spot controls and makes payments to beneficiaries. Division for internal audit – body monitoring and controlling the expenditures of funds from various sources of support. The plan is to lay down by a separate piece of legislation the general conditions, measures and method for use of support under the structural policy measures in fisheries, including the measures of control and action in case of financial irregularities M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 13: Fisheries Poglavlje 25 Nauka i istraživanje

17 Challenges Harmonisation of the legal framework with the EU Acquis
Chapter 13: Fisheries Challenges Harmonisation of the legal framework with the EU Acquis Setting up of institutional capacities necessary for implementation of structural policy measures in line with the EU practice Harmonisation of Montenegro’s support measures with the EU structural support measures Harmonisation of the existing Strategy of Fisheries Development of Montenegro with the new support measures under the CFP Development of operational programes Until the EU accession Montenegro will adopt rules in the field of State Aid as set up by the Common Fisheries Policy Policy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 13: Fisheries Poglavlje 25 Nauka i istraživanje

18 B. STATE AID Chapter 13: Fisheries Chapter 13: Fisheries Poglavlje 25
M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 13: Fisheries Poglavlje 25 Nauka i istraživanje

19 Chapter 13: Fisheries The state aid in fisheries is not governed by the Law on Control of State Aid (Official Gazette of Montenegro 74/09, 57/11). Specific rules for this field have not been fully put in place yet. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 13: Fisheries Poglavlje 25 Nauka i istraživanje

20 State aid measure -subsidised diesel fuel (I)
Chapter 13: Fisheries State aid measure -subsidised diesel fuel (I) The only state aid measure in Montenegro applied to the fisheries sector Beneficiaries are professional fishermen, i.e., holders of permits for large-scale commercial fishing (fishing of demersal and small pelagic fish) Laid down by the Law on Excises (Official Gazette of the Republic of Montenegro 65/01, 12/02 , 76/05 and Offiical Gazette of Montenegro76/08 , 50/09 i, 78/10, 40/11, 61/11 and 28/12) Rulebook on implementation of the Law on Excises (Official Gazette of the Republic of Montenegro 18/02, 31/02 , 9/06, 78/06 and Official Gazette of Montenegro 18/09, 23/11 and 12/12) Institutional capacity: Ministry of Agriculture and Rural Development Ministry of Finance Tax Administration M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 13: Fisheries Poglavlje 25 Nauka i istraživanje

21 State aid measure - subsidised diesel fuel (II)
Chapter 13: Fisheries State aid measure - subsidised diesel fuel (II) The scheme of implementation of this aid: On the basis of permits for commercial fishing of demersal and pelagic resources, the Ministry of Agriculture and Rural Development presents the Tax Administration with a list of professional fishermen, their vessels and approved quantity of fuel Based on this list, the Tax Administration issues a decision with the approved fuel quantity to the professional fisherman M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 13: Fisheries Poglavlje 25 Nauka i istraživanje

22 Ministry of Agriculture
Chapter 13: Fisheries Excise free fuel Ministry of Agriculture and rural Development Ministry of Finance TAX authorities Based on logbooks of catch and satellite vessel monitoring system, at the beginning of each calendar year MARD sets the fuel quotas for active professional fishermen. The fuel quantity is calculated on the basis of the engine power and the estimated number of fishing days. The list of approved quantities of excise free fuel is sent by the MARD to the Ministry of Finance – Tax Administration, for further processing. Based on the application received from the professional fisherman, the Tax Administration checks the tax records of the taxpayer and upon ascertaining that there are no tax arrears, it issues a decision with the total approved quantity of fuel for the calendar year. The professional fisherman presents the decision received at the petrol station at the home port and thus exercises the right to use the excise free fuel. VMS LogBook M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 13: Fisheries

23 Challenges Harmonisation of the legal framework with the EU Acquis
Chapter 13: Fisheries Challenges Harmonisation of the legal framework with the EU Acquis Harmonisation of Montenegro’s support measures with the state aid measures as laid down in the EU Harmonisation of the state aid scheme with the EU scheme Until the EU accession Montenegro will adopt rules in the field of State Aid as set up by the Common Fisheries Policy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 13: Fisheries Poglavlje 25 Nauka i istraživanje

24 Thank you for your attention!
QUESTIONS

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