3. Modernization Programs 



As of 1985, the majority of Spanish vessels were 

 over twenty years old." During the 1980's, the 

 Government of Spain instituted a series of programs 

 to encourage the replacement of old vessels. The 

 Credito Social Pesquero (CSP) granted lines of credit 

 to the builders of new fishing vessels until 1985, 

 when Madrid's Industrial Credit Bank assumed 

 responsibility for CSP programs.-'' CSP credits 

 covered 30 percent of the cost of new vessels. 

 Uncertainty over the availability to fish stocks, 

 especially in third party waters, has forced the 

 European Commission to insist that fleet renewal 

 programs not allow the capacity of the fleet to 

 expand, to the degree that new vessels would be 

 constructed only if they replaced individual vessels of 

 greater or equal tonnage." In 1987, Madrid signed 

 agreements with the "autonomous communities" of 

 Galicia, Catalonia, Valencia and the Basque 

 provinces, providing for the joint financing of 

 modernization subsidies aimed particularly at the 

 artisanal fleet, largely overlooked by EC-sponsored 

 initiatives.'* The 1987-91 MAGP mandated the 

 renewal of 25% of the Spanish fleet, at a cost of $1.8 

 billion over five years." As part of the overall 

 approach to fleet modernization, the Spanish 

 government (aided by the EC) has also offered grants 

 and subsidies to cover 35 % of the cost of upgrading 

 the infrastructure of 150 Spanish ports. ^* 



The U.S. Embassy in Madrid reports that Spain 

 received EC funding for 216 vessel modernization 

 projects in 1991.-' EC support totaled $10.5 million 

 and represented 18-percent of the total cost of the 

 projects. The Government of Spain contributed $3.8 

 million to these projects. The Spanish Government 

 also supported 68 modernization projects, 

 contributing 14 percent of the $12.9 million in total 

 costs.'" 



In July, 1993, the Fisheries Department of the 

 Province of Galicia aimounced a $1.4 billion plan to 

 scrap the region's entire fleet of 8,000 aging vessels 

 in favor of 3,000 new and larger vessels. '' The plan 

 is a combination of modernization and restructuring 

 of the fleet. The current regional tonnage of 

 166,000-GRT will fall to 139,000-GRT as many old 

 vessels are scapped. The province intends 

 particularly to reduce the number of inland vessels, 

 and to seek EC and Spanish state funding. The 

 Province hopes to reduce the overall size of the 



Galician fleet and to increase the average size of the 

 remaining vessels for reasons of safety and 

 economy." 



4. Decommissioning Programs 



The Spanish Government has also offered grants 

 to owners of vessels willing to remove them from the 

 fishing industry. The most recent program has come 

 within the framework of the 1992-96 MAGP, which 

 requires Spain to remove 52,000 GRT from its fleet. 

 Spain will offer $418 million to participating vessels 

 with 60% of the funding coming from Brussels." 

 The MAGP targets the artisanal and South Atlantic 

 fleets in particular for reduction. Direct Spanish 

 Government assistance for decommissioning of 

 Spanish vessels under the MAGP totaled $43.1 

 million in 1991. ''' 



5. Shipyards 



Spanish shipyards have an excellent worldwide 

 reputation for the construction of fishing vessels, and 

 fill numerous orders for both domestic and foreign 

 owners. Spanish shipyards concentrate around Vigo, 

 the primary Spanish fishing port. Vigo yards include 

 Barreras, Santo Domingo and Freire. Spanish 

 shipyards began producing high quality stem trawlers 

 for foreign fishermen in the early 1970s. 



Spanish shipyards underwent a construction 

 "boom" in 1986-88. Production of new ships 

 inceased as follows :'' 



1986: 18 vessels (14,000-GRT). Average size: 

 777-GRT. 



1987: 50 vessels (31,189-GRT). Average size: 

 624-GRT. 



1988: 125 vessels (30,248-GRT). Average size: 

 242-GRT. 



1989-90: Not available. 



1991: 52 vessels (49,637-GRT).''' Average 955- 

 GRT. 



The reasons for the rapid growth in vessels has 

 been explained as follows:" 



143 



