3. Europe

3.1 France

Composition of fleet

No.	Size : length (m)	GRT	KW
1002	< 6	1 146	24 307
1776	6 - 8	4 704	87 624
1330	8 - 10	7 334	115 441
913	10 - 12	9 357	117 075
691	12 - 16	17 610	135 620
946	16 - 25	58 308	325 127
93	25 - 38	16 655	54 122
78	>38	63 859	151 331
6 829		178 973	1 010 647

Fishing areas

Thirty percent of the fish landed in France is caught in French waters of the European EEZ (English Channel and Atlantic Ocean) or in the Mediterranean Sea. Small-scale fishing accounts for 80 percent of this part of these landings. Semi-industrial fishing accounts for 20 percent.

Fifty percent of the fish landed is caught in other parts of the European EEZ (West Cornwall, East and West Ireland and Western Scotland). Small-scale fishing accounts for 20 percent of this part of the landings and semi-industrial and industrial fishing accounts for 80 percent.

Twenty percent of all fish landed in France are caught in international waters or within Third Countries' EEZ according to bilateral agreements by industrial fishing vessels especially by tuna-seiners.

Fisheries legislation and regulations

The Common European Fishery Policy, initiated in 1970 and updated in 1983, applies also to French fisheries. It is divided into three categories of regulations:

Fish preservation

- Total Allowable Catches (TAC) are determined annually for the main species fished (by Advisory Committee for Fisheries Management);

- technical measures are enforced: minimum sizes for fish, dimensions or sizes of fishing nets, restrictions for fishing zones, etc.

- Reduction of total power (KW) of operating fishing fleet;
- licensing of fishing boats;
- maintaining and modernising remaining fishing fleet.

Marketing organisation

In order to regulate market alterations, the EC fixes withdrawal prices. When too many fish are landed as compared to market requirements, it is forbidden to lower prices below the fixed withdrawal price. Instead, fish must be converted into fishmeal. The EC encourages the formation of producers' organizations in the different fishing areas in order to control these operations.

Age structure of fleet (1995)

Size of vessel	Less than 5 years	5 - 10	10 - 15	15 - 20	20 - 25	More than 25	Total
< 12 m	283	933	891	807	787	1146	4 847
12 to 16 m	20	160	112	104	108	148	652
16 to 25 m	59	272	208	157	90	144	930
25 to 38 m	5	12	28	12	12	20	89
> 38 m	1	12	16	12	32	2	75
Total	368	1 389	1 255	1 092	1 029	1 460	6 593
Percentage	5.6	21.1	19.0	16.5	15.6	22.2	100

Plans for future development of fleet

Potential for development of new fishing areas

There does not seem to be any potential for the development of new fishing areas except through bilateral agreements with Third Countries. The EU provides considerable support for conclusion of fishing agreements and for the creation of joint ventures.

Potential for exploitation of new resources

The French Marine Research Institute (IFREMER) has been working for years in this field. The exploitation of deep-sea resources such as Grenadier, Orange roughy, Siki has been quite successful and progress is still being made.

Need for replacement of fishing units over next decade

As shown in the tables, the renewal rate has fallen during these past five years. Up to now no building of fishing vessels has been allowed by the European Union but a need is felt by the fishing industry to replace old boats by fewer, but more recently built ones.

Need to reduce fishing effort and size of fleet:

Control of fishing effort:

French experts do not agree on this subject. The following controls have been suggested: a global reduction; by fishing method and by species.

In 1983, the Advisory Committee for Fisheries Management asked for a global reduction of 40 percent of the fishing effort before 1996.

Finally new targets were fixed as follows:

- Fishing on overexploited stocks: 30 percent
- Fishing over MSY: 20 percent
- Fishing on fully exploited stocks: 10 percent

In France, the number of fishing boats was reduced by 24 percent between 1990 and 1995. The last multi-annual plan envisaged reducing the total power of the French fishing fleet from 1 054 358 KW in 1992 to 948 591 KW in 1996. The French fisheries administration and fishery industry associations/fishermen associations, however, have not yet agreed on the figures for the Plan (1997 - 2000), which is still under discussion.

Techno-economic and operational characteristics of individual fishing units

Type of vessel	Length	KW	On board facilities/ storage	Fishing gear	Crew	Ownership	Fishing days
Handliners	8-10 m	50	Insulated fish hold	Spare hooks	1	Individual	200
Gillnetters	10-12 m	80	"	-	2	"	180
Gillnetters	12-20 m	100	Ice + insulated Fish hold	Spare nets	4-5	"	180
Coastal seiners	15 m	150	"	-	7	Individual /2-3 partners	165
Coastal trawlers	12-14 m	200	"	-	2	Indivual	200
Coastal trawlers	14-16 m	250	"	-	3	Individual	210
Deep sea trawlers(fish)	15-17.5 m	300	"	1 spare trawl	4	Individual/ 2-3 partners	225
Deep sea trawlers (Norway lobster)	17-19 m	350	"	"	5	"	225
Deep sea trawlers	19-20.5 m	400	"	"	5-6	"	250
Deep sea trawlers	20.5-24 m	450	"	"	5-6	Individual/2-3 partners/ company	250
Deep sea trawlers	33-35 m	650	"	2 spare trawls		Company	268
Deep sea trawlers	50-54 m	1500	"	"		Company	262

Sharing systems

For coastal and deep sea fleets landing fresh fish, usual sharing system is as follows:

gross income less:

- Harbour dues
- Selling charges
- Fuel
- Ice
- Food
- Social insurance
- Gives income to share:
- 50 percent for boat owner(s)
- 50 percent for crew, divided into equal shares for each member.

For industrial fleets landing frozen fish, the income of the crew is composed of:

- Fixed part (minimum salary);
- proportional part, related to quantity of fish caught (major part of salary).

Type of vessel		Handliners 8-10 m	Gillnetters 10-12 m	Gillnetters 12-20 m	Coastal seiners 15 m
Total earnings		82 960	139 760	341 650	350 420
Running costs
	Fuel	2 840	4 900	15 120	8 300
	Harbour dues	490	440	4 880	100
	Costs of selling fish	3 250	4 220	11 410	26 660
	Other running costs Including ice and food	3 000	3 290	11 560	6 230
Total running costs		9 580	12 850	42 970	41 290
Labour charges
	Labour share, wages	16 390	53 850	132 470	170 470
	Social insurance	5 350	10 030	24 500	24 750
Total labour charges		21 740	63 880	156 970	195 220
Vessel costs
	Gear expenses	4 800	13 030	28 060	6 550
	Repairs and maintenance	7 370	10 000	25 880	21 980
	General expenses and Insurance	4 700	8 760	18 460	11 270
Total vessel costs		16 870	31 790	72 400	39 800
Total costs / expenses		48 190	108 520	272 340	276 310
Gross cash flow		34 770	31 240	69 310	74 110
	Depreciation	10 730	20 910	38 900	22 730
	Interest	3 090	8 360	20 910	7 820
Net cash flow		20 950	1 970	9 500	43 560

Type of vessel		Coastal trawlers 12-14 m	Coastal trawlers 14-16 m	Deep sea trawlers (fish) 15-17.5 m	Deep sea trawlers (Norway lobster) 17-19 m
Total earnings		143 850	216 510	323 170	507 370
Running costs
	Fuel	13 420	21 840	35 670	54 650
	Harbour dues	1 940	1 570	2 660	29 660
	Costs of selling fish	4 930	9 120	17 860	29 430
	Other running costs including ice and food	3 980	6 630	19 760	33 850
Total running costs		24 270	39 160	75 950	147 590
Labour charges
	Labour share, wages	57 530	86 970	111 050	171 360
	Social insurance	9 170	11 560	18 340	25 510
Total labour charges		66 700	98 530	129 390	196 870
Vessel costs
	Gear expenses	7 450	11 660	15 240	25 470
	Repairs and maintenance	14 280	21 380	38 040	49 250
	General expenses including insurance	7 620	14 960	20 390	21 020
Total vessel costs		29 350	48 000	73 670	95 740
Total costs / expenses		120 320	185 690	279 010	440 200
Gross cash flow		23 530	30 820	44 160	67 170
	Depreciation	11 090	17 630	20 360	55 640
	Interest	11 270	12 550	25 640	35 640
Net cash flow		1 170	640	-1 840	-24 110
Type of vessel		Deep sea trawler 19-20.5 m	Deep sea trawler 20.5-24 m	Deep sea trawler 33-35 m	Deep sea trawler 50-54 m
Total earnings		572 880	665 450	1 101 270	2 448 950
Running costs
	Fuel	60 980	87 680	144 360	297 090
	Harbour dues	36 950	33 060	84 910	242 370
	Ice			10 540	27 080
	Costs of selling fish	25 060	36 210	68 550	134 350
	Other running costs	30 525	35 020	30 730	110 540
Total running costs		153 510	191 970	339 090	811 430
Labour charges
	Labour share, wages	208 520	208 040	322 910	769 650
	Social insurance	20 700	30 880	43 640	85 640
	Other labour charges			46 910	85 640
Total labour charges		229 220	238 920	413 460	942 090
Vessel costs
	Gear expenses	27 370	35 320	111 270	144 110
	Repairs and maintenance	62 690	64 440	117 450	186 110
	Vessel insurance			38 360	93 640
	General expenses	28 060	27 130	64 910	180 760
Total vessel costs		118 120	126 890	331 990	604 620
Total costs / expenses		500 850	557 780	1 084 540	2 358 140
Gross cash flow		72 030	107 670	16 730	90 810
	Depreciation	29 640	80 180	104 720 (1)	400 000 (1)
	Interest	15 820	44 910	44 550	80 000 (2)
Net cash flow		26 570	-17 420	-132 540	-389 190

(1) Estimate
(2) Average amount for repayment on 10 year loan 80 percent of investment.
Interest rate eight percent.

Financial services available to fisheries sector

Access to institutional credit

Specific institutions provide credit to the fisheries sector:

- Credit Maritime finances artisanal fisheries, under French legislation this means the owner - or main partner in the ownership - is skipper of the boat.

- Credit Coopératif supervizes Credit Maritime but can also directly finance industrial fisheries which is characterized by company-owned vessels.

Terms of finance

- Banks can make loans up to 80 percent of building value or modernization costs after taking into account potential subsidies;

- repayment period: 10-15 years after two years deferral for capital repayment;

- subsidized interest rates to arrive at final rate between six and eight percent according to the investment (new building or modernization for instance);

- banks take mortgages on vessels and ask for collateral and other securities.

In so far as multi-annual plans for reducing European fishing fleets have reached their targets, subsidies are allowed for building new boats or renewing old ones, while staying within national capacities prescribed. The following rates apply:

	Region objective 1 (1)	Other regions (2)
Rate of European subsidies	< 50 %	< 30 %
National subsidies (French state, regions, etc.)	> 5 %	> 5 %
Participation of beneficiary	> 40 %	> 60 %

(1) Corse
(2) Nord-Picardie, Haute et Basse Normandie, Bretagne, Pays de la Loire, Poitou-Charentes, Aquitaine, Languedoc-Roussillon, Provence-Alpes-Côte d'Azur.

The subsidy budget for 1994-1999 is the equivalent of 45 million US$.

Tax exemptions on fuel and fresh fish:

- On fuel: normal price US$0.82 / litre; reduced price for fishing US$0.20 / litre;
- on fish: no tax on value added (TVA) for fresh fish (frozen fish 5.5 %).

Techno-economic and operational characteristics of fishing fleets

Four main types of fishing vessels are regularly surveyed:

- Freezer trawlers and fresh fish trawlers (offshore fleet)
- Shrimp trawlers and fresh fish trawlers (inshore cutter fleet)

- Offshore fleet: the distant water freezer trawler fleet is reduced as fishing possibilities in waters of third countries lessen. The distant fresh fish trawler fleet is being reduced also;

- fresh fish cutters aim at demersal species such as cod, sole and plaice. Roundfish cutters suffer losses as cod stocks are low, while flatfish cutters have better results;

- shrimp cutters, using shrimp beam trawls, are highly specialized. They are dependent on stock availability and price levels, which can vary for this species (Crangon spp). In 1996, the economic performance of this type of boat was good.

Financial and economic performance (in US$)

The information on economic and financial performance, which is indicated below, is based on different sample sizes:

Freezer trawlers: data given are the average for the whole fleet of 11 vessels.

Cutter fleet: for boats fishing shrimps and fresh fish in the North and Baltic sea, the section covered includes fresh fish vessels of 16 m and more, accounting for 70-80 percent of landings' quantity and value.

For boats fishing fresh fish exclusively in the Baltic Sea (Sassnitz). The sample studied represents 12 out of 25 vessels.

3.3 Spain

Longliner, Spain

Fishing fleet

Type of vessel	Number	GRT	KW
Trawlers
Bottom trawl	2 437	322 335	879 764
Midwater trawl	7	3 924	7 559
Pelagic trawl	6	313	1 319
Not specified	1	79	367
Seiners
With ring-nets	1 084	46 827	205 178
Tuna purse seiner	88	57 537	131 062
Not specified	9	366	1 283
Drag netters	747	1 917	13 937
Dipping-netters	2	10	128
Gillnetters
Set nets	275	3 594	18 230
Not specified	5 491	18 216	117 405
Boats using traps/pots	1 250	2 624	16 191
Handliners	1 914	3 652	16 153
Longliners
Bottom lines	1 203	44 831	149 014
Drifting lines	249	20 636	60 119
Tuna longlines	34	2 934	9 464
Not specified	35	501	2 396
Pole and liners	824	4 246	9 903
Tow liners	46	2 238	7 422
Multipurpose	3 065	10 409	62 863
TOTAL	18 767	547 194	1 719 757

Fishing areas

Type of vessel	Size (m)	Type of species targeted	Fishing area	Distance from harbour (nautical miles)
Coastal trawler	14	Demersal	N-W coast	80
	18		E coast (Mediterranean)	50
Deep sea trawler	23		N-W coast	80
	30		N-E Atlantic	650
Freezer trawler	56		N-W Atlantic	2500
	57		S-E Atlantic	4500
	80		S-W Atlantic	6000
Coastal seiner	17	Pelagic	W- coast	700
	24	-	E- coast (Mediterranean)	50
Tuna seiner	56	Tuna	International waters: Atlantic and Indian Ocean
	64
	70
Longliner	20	Demersal	N-W coast	100
	29		W- coast	200
Pole and liner	24	Tuna	N-W coast	500

Fisheries legislation and regulations

Spain joined the EEZ in 1978 and the Common European Fisheries Policy has been applied to the fisheries sector since 1985 along the same lines as described above for France.

More specifically, the following management policies and measures are being followed in Spain:

- Resource preservation;
- total allowable catch;
- minimum sizes for fish
- fish reserves (fishing prohibited)
- technical restrictions (zones, mesh-sizes and GRT)
- adjustment of fishing effort.

Age structure of fishing fleet (%)

Type of vessel	Age of vessel (years)
	Less than 10	10 - 20	20 - 30	More than 30
Trawlers:
Bottom trawler	26	16	42	16
Midwater trawler	77	0	11	13
Pelagic trawler	-	6	-	94
Not specified	100	-	-	-
Seiners:
Bluefish seiners	13	25	37	26
Tuna purse seiners	26	41	29	3
Not specified	78	-	9	13
Drag netters	19	18	22	41
Dipping netters	-	12	-	88
Gillnetters:
Set nets	29	14	26	31
Not specified	17	22	30	30
Boats using traps and pots	29	20	25	27
Handliners	9	20	27	44
Longliners
Bottom lines	18	15	50	17
Drifting lines	40	11	28	22
Tuna lines	24	14	11	21
Not specified	38	17	33	11
Poles and liners	6	17	43	34
Tow liners	16	6	49	29
Multipurpose	11	26	26	37
Whole fleet	17.5 %	23 %	40.4 %	19.1 %

Plans for future development of fleet

Potential for development of new fishing areas:

New fishing areas have been found and are being sought through:

- Participation in EU agreements with Third Countries;

- agreements with northern countries such as Canada;

- agreements with South American countries such as Argentina;

- agreements with North African countries such as Morocco;

- other countries from Africa and the Indian Ocean such as Angola, Cape Verde, Comoros, Ivory Coast, Gambia, Guinea Bissau, Guinea Conakry, Equatorial Guinea, Senegal, Seychelles.

The following activities are undertaken:

- Evaluation of the fisheries resources in mid-eastern Atlantic Ocean; most of the agreements signed between the EU and third countries include programmes of evaluation of their fisheries resources in participation with the Spanish Fisheries Research Institute;

- identification and evaluation of fisheries resources in remote areas of the northwest Atlantic, northeast Atlantic, southwest Atlantic and Angola (deep waters), southeast Atlantic, southwest Indian Ocean, Antartic waters;

- experimental fishing campaigns.

European fishing fleets are generally considered as having an overcapacity. European regulations address this problem by selective incentives for building or renewing certain types of vessels and for "exporting" other types of vessels through joint ventures.

The Spanish fishing fleet is quite old:

- 63.6 percent of the fleet is more than 20 years old;
- 35.5 percent of the fleet is more than 30 years old.

Need for reducing fishing effort and size of fleet:

This need arises because of regulation of fishing effort through European TAC and national quotas.

Quotas for Spain in 1994:

Species	Quota
Anchovy	32 740
Mackerel	30 160
Horse mackerel	70 270
Pollack	1 640
Cod	11 500
Hake	24 220
Whiting	2 000
Blue whiting	74 000
Sole	770
Megrim	12 780
Monkfish	12 650
Norway lobster	3 220

Regulation of fishing effort is done through enforcement of technical measures such as:

Prohibited or restricted fishing zones/periods;
restrictions on certain types of vessels or gears;
minimum sizes for fish.

Adjustment of fishing effort is made through:

Withdrawal of fishing vessels through destruction or exportation (vessels > 25 GRT) to countries applying international conventions related to the protection of fisheries resources. The multi-annual plans 1992-1996 and 1997-1999 set the following targets for Spain:

Withdrawal of up to 900 vessels; GRT: 119 000; KW: 238 000.

Encouragement to create new joint-ventures: permanent: 59; temporary: 36 for the period 1994-1999.

Techno-economic and operational characteristics of individual fishing units

Type of vessel	Length (m)	KW	On board facilities/ processing and storage	Fishing gear	Crew	Ownership	Fishing days
Coastal trawler	14	169	Ice + insulated hold	2 trawls	2	Individual	200
"	18	331	"	"	7	"	225
Deep sea trawler	23	320	"	"	12	"	223
"	30	736	"	"	15	2-3 partners or company	205
Freezer trawler	56	1472	Sorting, processing and freezing	3 trawls	28	Company	115
"	57	1619	+ freezer storage	"	28	"	192
"	80	2208	"	4 trawls	47	"	220
Coastal seiner	17	265	Insulated hold	2 seines	14	Individual	85
"	24	442	"	"	12	"	165
Tuna seiner	56	2208	Freezing in brine + freezer storage	1 seine	20	Company	274
"	64	2944	"	"	25	"	290
"	70	2944	"	"	20	"	315
Longliner (bottom lines)	20	271	Ice + insulated hold	1 long-line	18	Individual	160
"	29	515	"	"	15	Individual or 2-3 partners or company	208
Pole and liner	24	300	"	Spare hooks and lines	14	Individual or 2-3 partners

Sharing systems

For coastal and deep sea fleets landing fresh fish, usual sharing system is as follows:

Gross income less:

- Harbour fees
- Selling charges
- Fuel
- Ice
- Maintenance of gears
- Social Insuranc

50 percent for boat owner(s)
50 percent for crew, divided into equal shares for each member.

For industrial fleets landing frozen fish, salary is composed of: fixed part (minimum salary);
proportional part related to quantity of fish caught (major part of salary).

Economic and financial performance of individual fishing vessels (in US$)

Type of vessel		Coastal trawler	Coastal trawler	Deep sea trawler	Deep sea trawler
		14 m	18 m	23 m	30 m
Total earnings		159 460	226 100	603 330	809 200
Running costs
	Fuel	14 280	28 560	69 020	152 320
	Lubricant		2 380	2 380	10 710
	Harbour dues	8 330	9 520	9 520	20 230
	Ice / salt		3 570		11 900
	Food	1 190	4 760	30 940	20 230
	Costs of selling fish			13 090	38 080
Total running costs		23 800	48 790	124 950	253 470
Labour charges
	Labour share, wages	66 640	90 440	221 340	262 990
	Social insurance	17 850	16 660	55 930	65 450
Total labour charges		84 490	107 100	277 270	328 440
Vessel costs
	Gear expenses	7 140	3 570	20 230	44 030
	Repairs and Maintenance	10 710	10 710	34 510	66 640
	Vessel insurance	3 570	3 570	17 850	17 850
	General expenses	3 570	1 190	7 140	16 660
Total vessel costs		24 990	19 040	79 730	145 180
Total costs / expenses		133 280	174 930	481 950	727 090
Gross cash flow		26 180	51 170	121 380	82 110
	Depreciation	12 300 (1)	16 660	41 650	71 400
	Interest (2)	4 800	6 900	27 700	27 700
Net cash flow		9 080	27 610	52 030	-16 990

(1) Estimate
(2) Average amount for repayment on 13 year loan 80 percent of investment.
Interest rate 9 percent.

Type of vessel		Coastal seiner	Coastal seiner	Longliner	Longliner	Pole and liner
		17 m	24 m	20 m	29 m	24 m
Total Earnings		232 050	298 690	872 270	824 670	393 890
Running costs
	Fuel	10 710	1 7850	5 1170	97 580
	Lubricant	2 380	2 380
	Harbour dues	9 520	22 610	1 7850	16 660
	Ice	1 190	5 950	10 710	7 140
	Food	8 330	13 090	27 370	39 270
	Costs of selling fish		26 180		23 800
	Other running costs				110 670
Total running costs		32 130	88 060	107 100	295 120	62 070
Labour charges
	Labour share, wages	98 770	72 590	384 370	205 870	184 450
	Social insurance	44 030	36 890	134 470	73 780	38 080
	Other labour charges
Total labour charges		142 800	109 480	518 840	279 650	222 530
Vessel costs
	Gear expenses	2 380	2 380	24 990	44 030
	Repairs and maintenance	5 950	3 570	34 510	59 500
	Vessel insurance	2 380		16 660	14 280
	General expenses	2 380	2 380	36 890	3 570
Total vessel costs		13 090	8 330	113 050	121 380	36 700
Total costs / expenses		188 020	205 870	738 990	696 150	321 300
Gross cash flow		44 030	92 820	133 280	128 520	72 590
	Depreciation	23 800	30 500 (1)	43 100 (1)	71 400	24 800 (1)
	Interest (2)	4 600	6 900	17 600	27 700	6 100
Net cash flow		15 630	55 420	72 580	29 420	41 690

(1) Estimate
(2) Average amount for repayment on 13 year loan 80 percent of investment. Interest rate nine percent

Type of vessel	Freezing trawler	Freezing trawler	Freezing trawler	Tuna seiner	Tuna seiner	Tuna seiner
	56m	57m	80m	56m	64m	70m
Total Earnings	2 283 610	3 564 050	2 365 720	4 262 580	6 259 400	5 321 680
Running costs
Fuel	176 120	295 120	489 090	477 190	596 190	515 270
Lubricant	10 710	20 230	17 850	33 320	59 500	52 360
Harbour dues		28 560	165 410			32 130
Salt				66 640	71 400	60 690
Food	28 560	48 790	96 390	105 910	117 810	154 700
Costs of selling fish	183 260	379 610		1 150 730	1 686 230	1 493 450
Other run.costs		53 550		15 470	13 090	20 230
Total running costs	398 650	825 860	768 740	1 849 260	2 544 220	2 328 830
Labour charges
Labour share,wages	593 810	653 310	534 310	721 140	971 040	1 031 730
Social insurance	128 520	229 670	133 280	180 880	182 070	257 040
Other labour charges		28 560	9 500	148 750	227 290	91 630
Total labour charges	722 330	911 540	677 110	1 050 770	1 380 400	1 380 400
Vessel costs
Gear expenses		49 980	115 430	130 900	117 810
Repairs & maintenance	101 150	254 660	229 670	358 190	714 000	636 650
Vessel insurance	73 780	123 760	65 450	94 010	123 760	73 780
General expenses	298 690	320110	55 930	568820	775880	411 740
Total vessel costs	473 620	748 510	466 480	1 151 920	1 731 450	1 122 170
Total costs / expenses	1 594 600	2 485 910	1 912 330	4 051 950	5 656 070	4 831 400
Gross Cash Flow	689 010	1 078 140	453 390	210 630	603 330	490 280
Depreciation	223 450 (1)	233 240	350 000 (1)	380 000 (1)	416 500	500 000 (1)
Interest (2)	197 700	205 500	283 000	182 200	193 850	205 000
Net Cash Flow	267 860	639 400	-179 610	-351 570	-7 020	-214 720

(1) estimate
(2) Average amount for repayment on 13 years of loan 80 % - rate - 9 % -see separate page DO NOT USE

Financial services available to fisheries sector

Access to institutional credit: no specific institutions.

Terms of finance

- Banks can make loans up to 80 percent of building or modernization costs after taking into account subsidies;

- repayment period is 12 to 14 years after two years deferral for capital repayment;

- possible subsidy on interest rate up to three percent at the condition final rate > 8 percent;

- bank takes a mortgage on the vessel concerned, but considering it covers only 50 percent of the value in case of resale, that is 62 percent of the loan, the bank requires collateral security for 37.5 percent of the loan.

When multi-annual plans for reducing European fishing fleets have reached their targets, subsidies can be allowed for building new boats or renewing old ones, while staying within national capacities prescribed.

	Regions Objective 1 (1)	Other Regions (2)
Rate of European subsidies	< 50 %	< 30 %
National subsidies
(Spanish State, Regions etc.)	> 5 %	< 5 %
Participation of Beneficiary	< 40 %	> 60 %

(1) Andalucia, Asturias, Cantabria, Galicia, Canarias, Murcia, Ceuta y Melilla
(2) Cataluña, Baleares and Pais Vasco Budget for 1994 - 1999: Spain = US$398 million

Tax exemptions

- On fuel: rmal price US$ = 0.59 / litre
reduced price for fishing = 0.19 / litre
- On Fish: no tax on value added (IVA) for fresh fish (frozen fish = 7 %)