The EC introduced its Common Fisheries Policy 

 in 1983 after seven years of negotiations. At the 

 center of the CFP was a plan to reduce the capacity 

 of the EC fleet. The large French fleet quickly 

 became one of the prime targets of this plan. In just 

 three years (1985 to 1988) the French fleet fell from 

 14,008 vessels to 8,991 vessels. Since the 

 introduction of the CFP the French fishing industry 

 has operated under an atmosphere of crisis. 

 Problems facing the French industry are not that 

 unlike those around the world: overcapacity, 

 depleted stocks, over-harvesting of juvenile fish, 

 arguments over the proper mesh size on fishing nets, 

 and the management of quotas.''' Low catches in 

 France have also led to increased amounts of seafood 

 imports, as the French catch provides barely half the 

 total amount consumed.'^ France has one of the 

 highest seafood consumption levels in Europe; the 

 average Frenchman eats over 25 kilograms of fish 

 per year, and over 85 percent of all French 

 households eat seafood at least twice a week.'* 



3. Modernization Programs" 



The French government provides financial 

 assistance to French fishermen through a system of 

 loans and subsidies designed to promote the 

 modernization of the French fleet and to encourage 

 investment in fishing equipment and fishing-related 

 activities. This government support system was 

 launched in 1983 and modified in 1986 to introduce 

 into French law the EC Directive on Aid to Fishing 

 No. 4028/86. These aid schemes concern non- 

 commercial and commercial fishing as well as related 

 investment on land. 



A. Aid program for non-commercial fishing: 



1 . Subsidies: These subsidies apply to the building 

 or the "substantial" transformation of vessels of or 

 above 16 meters (if registered in one of the fishing 

 ports along the North Sea, the Chaimel or the 

 Atlantic Ocean), and of or above 18 meters (if 

 registered in one of the fishing ports along the 

 Mediterranean). In order to be eligible for this type 

 of subsidy, fishermen may not own more than one 

 vessel, whether individually or collectively. 



For the building of a new vessel, the subsidy 

 may not exceed 10 percent of the cost of the original 

 investment as determined by one of the regional 

 commissions for the modernization and development 

 of the non-commercial fishing fleet and of marine 

 culture, COREMODE (Commission regionale de 

 modernisation et developement de la flotte de peche 

 artisanale et des cultures marines), on the basis of the 

 preliminary contract order. This subsidy should also 

 fall within the yearly limit set by the Ministry of the 

 Sea and based on the average cost of 24-meter 

 vessels subsidized during the previous year. 



As for the "substantial transformation" of a 

 vessel, the subsidy is limited to 50 percent of the 

 value of a new vessel of the same type, under the 

 supervision of COREMODE, and on the basis of 

 costs appearing on the preliminary contract. In order 

 for regional subsidies to become applicable, these 

 "substantial transformations" must concern a limited 

 number of operations, including a change of 

 propeller, the installation of permanent fishing 

 equipment or of a refrigeration or freezing section. 

 The vessel must be between five and fifteen years 

 old. 



2. Loans: Subsidized loans are extended to French 

 fishermen by regional maritime savings banks 

 (Caisses regionales de credit maritime mutuel) for the 

 construction of vessels, the purchasing of second- 

 hand vessels less than 15 years old, and the 

 acquisition of basic fishing equipment. They are 

 based on the level of investment, excluding national, 

 regional and EC subsidies. However, the total level 

 of aid from the French government and the EC 

 subsidies may not exceed levels set by the EC. 



The interest rate is set at 5 percent with a 3 to 

 10-year term depending on the purpose of the loan: 



 for the construction of vessels equal to or above 

 12 meters, the loan may not exceed: 



a 92 percent, in the case of a fisherman who is 

 less than 40 years old and who has never fully owned 

 another fishing vessel; 



□ 66 percent, in other cases, with a 12-year 



term. 



71 



