Mr. Tom Moran:

My two colleagues, Mr. Cecil Beamish and Ms Josephine Kelly, on the fisheries side are based in Clonakilty but have been spending much more time in Brussels in recent times. There is much discussion about the Common Agricultural Policy and the MFF and so on without giving full vent to the fact that the other major reform that is also landing in our Presidency is the Common Fisheries Policy, which is receiving huge attention in the Department. It is an overarching policy framework which governs the fishery and the wider seafood sectors in the European Union. It is a policy that was first put in place in 1983, subject to review every ten years, and is currently undergoing a reform process which we would hope to conclude also during the Presidency.

The CFP comprises three separate pieces of legislation - a basic policy regulation, a regulation on the common organisation of the market, and the European maritime and fisheries fund. The position on the reform was prepared following intensive negotiations with stakeholders throughout the country. A series of meetings was held throughout the country which involved the former Minister of State at the Department of Agriculture, Fisheries and Food, Mr. Killeen, under the chairmanship of Mr. Noel Cawley, formerly of the Irish Dairy Board. In early 2010, a report entitled Ireland's Response to the Commission's Green Paper on the Reform of the Common Fisheries Policy, a pre-document, was published and that has formed the basis of our negotiating position in these negotiations.

At Council level there has been a series of intensive discussions to secure an agreed position on the main policies of the reform. In June 2012, under the Danish Presidency, Council agreement was secured on a general approach to the basic regulation, the common organisation of the market.

At the October 2012 Council, the Cypriot Presidency of the EU got agreement on a partial general approach on the financial instrument - it is the second element. While establishing a Council's general approach is significant, it is an informal step in the process of working towards a final agreement. These agreements give a clear message as to the direction the Council wants to take but they also form the basis of determining the negotiating mandate for the Council with the Parliament as it heads into that process.

It is important to note that the negotiating mandate must be formally adopted by the Council and will determine the Council's position in the process with the Parliament. The general approach already secured does not cover all aspects of the policy as some key and contentious issues have not been agreed.
The timetable for the reform was discussed in the previous discussion on agriculture and it is changing on the fish side. On the basic regulation, a vote in the European Parliament fish committee, called the PECH committee originally scheduled for 9 October has now been postponed until 8December with a plenary in early February, during our Presidency. On the common organisation of the market, the European Parliament committee has secured a first reading of the CMO but it is unclear if the Cypriot Presidency will advance it over the coming months. Agreement on this is likely to be linked to that of the basic regulation. On the fund, originally scheduled for vote in the PECH committee in November and the plenary in January, it now appears that the committee will vote early in the new year with a plenary vote in March. The Irish Presidency will actively endeavour to reach agreement.

On the key issues, I will set out some of the key developments at the June and October Councils. At the June Council the general approach on the Common Fisheries Policy regulation saw movement and consolidation on a number of fronts, namely, a new compromise approach based on a proposal tabled by the Minister, Deputy Coveney, setting down a definitive timetable for the elimination of discards, which was an extremely contentious issue and is a contentious issue in the proposals. The measures which would be introduced on a phased basis are as follows - it would apply to pelagic fish from 1 January 2014; from January 2015 and not later than 2018 for fish - cod, haddock, whiting and saithe - in the north-western waters. The general approach also provides for de minimis exemptions of up to 5% of the total annual catches of species in certain situations; and derogation from the obligation to count catches against the relevant quotas to allow a deduction of quota from the target species. Plans will be designed to bring the fish stocks above levels capable of producing maximum sustainable yields, MSY, by 2015.

On regionalisation, member states involved in a region would work together in consultation with the EU advisory councils and formulate general recommendations for fish conservation and management in the regions. A key element is the removal of the mandatory nature of the proposed system of transferable fishing concessions, to which Ireland was vehemently opposed since the outset. This had serious potential to concentrate quotas in the hands of a few powerful European fishing companies.

The so called Hague Preferences - which are a bone of contention most years at the end of the year - are mechanisms which give Ireland additional quota when TAC levels are below a certain threshold. They are referred to in the "Whereas" clauses. Ireland had sought that the Hague Preferences be built into the allocation keys determining relative stability. This has not been done. However, their retention in the traditional format is important. It could have been an awful lot worse than that.

With regard to the future negotiations between the European Parliament and the Council, one of the biggest difficulties may be resolving the institutional deadlock over long-term management plans. This issue concerns the roles of Council and the Parliament in setting parameters for out-take, known as the harvest control rule.

The partial general approach adopted at the October Fisheries Council addressed a number of Ireland's priorities while leaving some unresolved. Of particular note is the agreement - this is on the fund - that decommissioning is now eligible for expenditure under the financial instrument under certain circumstances. This is a very welcome development as there had been strong opposition to it from a number member states and the Commission. Modernisation of vessels, including engine replacement,is permitted under restricted conditions. This relates to the climate change area in that they can be more efficient from that point of view. Ireland's request for safety equipment, even where it is mandatory, could be eligible for expenditure under the review - we wanted that but that was not accepted. The allocation criteria among member states was left unaddressed and will be returned to at a later date. Measures supporting the entrance of young fishermen to the sector are welcomed.

Looking forward to the Irish Presidency, the reform of the Common Fisheries Policy will be foremost on our work programme with agenda slots on most of the Councils - there will be joint Councils - Agriculture and Fisheries - throughout our Presidency. The Minister's aim is to facilitate negotiations between the Council and Parliament with a view to trying to broker a compromise by June.