Commissioner Vella’s last hurrah
Commissioner Vella threw caution to the wind at likely his last fisheries Council.
On 14 October, he seemed to express sympathy for calls for vessel scrapping at taxpayers expense for Baltic countries.
“I stand ready to explore with the relevant Member States what possibilities exist under the existing EMFF provisions and also under other EU funds to address this difficult situation. I am also willing to consider possible additional initiatives while taking into account the objectives of the Common Fisheries Policy, the EMFF and the Baltic Multiannual Management Plan. We should endeavour to find long-term responses in a strategic manner, with all the available tools.
The Commission will also do the utmost possible to facilitate the upcoming negotiations on the future EMFF and find ways to develop appropriate support after 2020.
Let me, however, recall the contradictory position of some Member States. We have indeed seen requests to support for the construction of new and more powerful vessels in a clear situation of overcapacity from some of the same Member States that are now calling for support for permanent cessation.” (link)
Within 24 hours, he had shifted and fully supported using taxpayers money to bail out fishermen.
“The Commission will urgently consider all possible initiatives in order to achieve the economic, social and sustainability objectives of the Common Fisheries Policy, of the Baltic Management Plan and the European Maritime and Fisheries Fund, and in particular to achieve and maintain a balance between the fleet and fishing opportunities”(link).
Ground Hog Day
I have been working against fisheries subsidies for 20 plus years. EU taxpayers building, upgrading and scrapping private companies boats is a big waste of money and it has never delivered the policy objectives.
The idea that permanent cessation is failed public policy is not original. The idea that taxpayers should buy out unprofitable economic operators out of the market place, to achieve some economic or ecological balance, seems to be a reminder of 1970’s economic central planning.
It is not even novel that it does not work. It has been clear since 2009 (see report from Baltic Sea 2020 (see table 6, p.11-12 (link) that it does not.
Fishermen seem to be rational. They decommission their old vessels, the ones they were going to take out of action anyway and use the money they got to upgrade their other vessels.
Governance
I understand this commitment was given in the margins of the Fisheries Council (14-15 October). Had this concession been validated by the College of Commissioners before the Fisheries Council?
There is an advantage of forcing through a quick proposal.
First, fishing ministers will back it. They want to waste their own voters’ money.
Second, the fisheries committee will back it.
Third, officials dealing with the adoption, through Inter-Service Consultation, are unlikely going to know the issue. They’ll waive it through it the last few days of this Commission.
There is, of course, the small matter whether Commissioner Vella’s concession to fisheries Ministers sometime on 15 October was validated.
Current System allows Corporate Welfare
Whilst the current fisheries subsidy regime allows for cessation aid, it is unclear whether the conditions that need to be met have been met.
As the countries asking for taxpayers cash to pay off and close some vessels, are the same who want taxpayers to be allowed to pay for new vessels, it is unclear how this will help fish stocks.
Perhaps I should clarify. A group of Baltic fishing ministers want to be allowed to use their taxpayer’s money to hand over corporate welfare cheques to private companies to scrap or build new vessels.
Fools Gold
Whilst it is always tempting in the interests of political expediency to push through a proposal that will only cost Baltic Sea country taxpayers money, there are reasons why it is a foolish idea.
First, re-introducing corporate bailouts at the same time the EU is negotiating for fisheries subsidies to be reduced at the WTO sends a terrible signal.
Second, the corporate bailout schemes won’t end in the Baltic. It will soon be extended, land up bailing out unprofitable and unstainable European fleets in Europe’s and international waters.
Third, in the past corporate bailouts in the Baltic for vessel cessation has done little to reduce fisheries capacity. It’s been an effective instrument for wasting taxpayers money and cover-up government mismanagement of fisheries stocks.
Fourth, the decline in the Baltic Sea fish stocks has been going on for some time. Governments and the Commission could have stepped in earlier to avoid the collapse, but did not. Taxpayers should not be left picking up the tab.
Finally, President-elect von der Leyen in her Political Guidelines stated that “Europe will always fight for a level playing field and be strong against those who compete by dumping, deregulating or subsidising.”. It would be ironic if one of the first pieces of legislation the new Commission faced was one that ignored this idea.