THE SEA FISHING (TRANSITIONAL SUPPORT) (SCOTLAND) (No 2) SCHEME 2003
EXPLANATORY LEAFLET
Section A - Introduction
1. This leaflet describes a Scottish scheme to provide grant for vessels worst affected by EU cod recovery measures. The information contained herein is for guidance only and is not intended to be a statement of law.
The Scheme is novel and restricted in application. Please read this leaflet carefully before completing the application form TAS-2.
2. Grants will only be available for vessels in accordance with the Sea Fishing (Transitional Support) (Scotland) (No 2) Scheme 2003 ("the Scheme") and the arrangements described in this leaflet.
3. Payments will also be made in accordance with the Scheme and with arrangements set out in this leaflet. Note that you will need to comply with the statutory criteria of the Scheme and any conditions determined by the Scottish Ministers under the Scheme: if you fail to do so, your grant may be reduced, revoked, or recovered with interest.
4. Requests for further information about the Scheme, and completed applications, should be sent by 31 July to:
The Transitional Support Team
SEERAD
Room 511
Pentland House
47 Robbs Loan
Edinburgh, EH14 1TY
Tel: 0131 244 4766
Fax: 0131 244 6288
Email: transitionalsupport@scotland.gsi.gov.uk
Section B - Eligibility
How do I know if I am eligible to apply for a grant?
5. To be eligible for transitional grant under the Scheme, your vessel must satisfy the following conditions:-
a) Registration and Ownership
It must be registered, at the date of application, in the United Kingdom (not in the Isle of Man or the Channel Islands) as a fishing vessel under Section 8(5) of the Merchant Shipping (Registration etc.) Act 1995.
b) Scottish Based
The vessel must have had a Scottish port of administration since 1 January 2003 and up until the date of the grant application. Note: it will be a condition of grant that the vessel retains a Scottish port of administration throughout the period covered by the grant.
c) Length
Its overall length must be at least 10 metres.
d) Fitness of Vessel
The vessel must be seaworthy. If its registered length is over 12 metres it must hold, at the date of application, a valid safety certificate under the Fishing Vessels (Safety Provisions) Rules 1975. Alternatively, you may produce a letter of satisfaction issued by the Maritime and Coastguard Agency following a survey.
Ministers may reject an application if, in their opinion, the vessel is not fit to undertake fishing activity.
e) Fishing Activity
The vessel must, according to the records held by the Fisheries Departments, have:-
- Used whitefish or beam trawl gears (as defined in paragraphs 4(a) and 4(b) of Annex XVII to Council Regulation (EC) No 2341/2002, as amended) during at least 70% of the recorded days spent on fishing trips during the months of March to August inclusive over the 3 year period 2000-2002;
- Spent at least 90 days at sea on fishing trips, on average, during the months of March to August inclusive over the 3-year period 2000-2002; and
- Derived at least 70% of its annual income from whitefish (demersal) landings, on average, over 2000-2002.
If you are in any doubt about your eligibility to apply for grant under the scheme, please consult the Department.
Section C - The Period/Level of Grant
What period does the grant cover?
6. The period covered by the Scheme runs from 1 March to 31 August 2003. You are free to choose, however, whether your grant application should cover all or any of the following periods:-
- March
- April/May;
- June/July;
- August.
These periods have been chosen to reflect the 2-month management periods operated in the UK under the interim cod recovery arrangements. The application form allows you to specify which of the periods you want your grant to cover.
7. Some fishermen may have modified (restricted) their fishing operations during February, in anticipation of grant under the Scheme applying from 1 February. To avoid any disadvantage, we will look at vessel operations over the months of both February and March in deciding whether you qualify for grant for March (and the extent of any deduction from your grant in accordance with paragraphs 9 to 11 below). A similar approach may be taken to cover the month of August: the relevant 2 month effort management period under Annex XVII includes September.
The basis for grant
8. The basis for grant is that your vessel is required to restrict its days at sea, as a result of the arrangements set out in Annex XVII to Council Regulation (EC) No 2341/2002. Payment of the maximum amount of grant will be available in respect of eligible vessels which do not spend more than 30 days absent from port on fishing trips or other commercial activity in either of the 2-month days at sea management periods (April/May and June/July) or, subject to paragraph 7, more than 15 days in either of the single month periods (March and August), covered by the Scheme.
Deductions from grant for additional activity
9. If your vessel exceeds the number of days set out in paragraph 8 (for example because it has spent time fishing outside the cod recovery zones, or engaged in alternative commercial activity such as oil-related guardship duty, or research cruises), the amount of grant payable under the Scheme will normally be reduced. The following limited exceptions may be permitted:-
- where the Department has confirmed in writing acceptance of special pleading that a day / days at sea spent in the cod recovery zones should not be counted for days at sea (Annex XVII) purposes; or
- utilisation of days at sea carried forward from the previous management period, provided the number of days absent in the previous period (in respect of all activity, in all areas), is no more than 30 days in a 2 month management period or 15 days for the single month periods. (Note: days transferred from another vessel will not be excluded for this purpose.)
10. In cases where a deduction from grant is required as set out above, the amount will be 10% of the grant payable for the management period concerned, for each additional day (or part day) at sea/absent from port.
11. This means, in effect, that where an applicant vessel has been absent from port on fishing trips or other commercial activity for 40 days or more in a relevant 2 month period (or, subject to paragraph 7, 25 days in a single month period) no transitional support grant will be granted for that period.
What is the rate of grant?
12. The maximum amount of grant under the Scheme has been set at £142 per vessel capacity unit (VCU) for qualifying vessels, on the assumption the grant payable covers the whole 6-month period (1 March to 31 August). If you elect or qualify for only part of that period, the grant amount will be reduced accordingly. (For example, if you elect/qualify for only 3 months' grant, you would get £71 per VCU.)
13. The amount of grant payable is of course subject to any deductions as set out above: and Ministers have reserved the right to review the level of grant payable in light of uptake and other matters - to ensure that total expenditure under the Scheme does not exceed the available budget.
Section D - Submitting an Application
14. Applications for grant will only be accepted on the official application form TAS-2. Copies are available from the Department through the contacts listed in paragraph 4 of this leaflet.
15. Please help us to process your application as quickly as possible by filling in the form accurately, fully and legibly. If in doubt, please seek advice from the Department.
ALL APPLICATIONS FOR TRANSITIONAL SUPPORT GRANT MUST BE RECEIVED BY THE DEPARTMENT BY 31 JULY 2003.
Section E - Consideration of Grant Applications
How will it be decided whether my application has been successful?
16. An application will only be rejected if:-
- it is not an eligible application;
- your vessel is not considered seaworthy; or
- your application is considered to be unreasonable, unnecessary or unwarranted.
You will be told if the Scottish Ministers intend to reject your application and given the opportunity to make representations.
What happens after my application is submitted?
17. You will be advised in writing about the outcome of your application; the amount of grant for which (subject to meeting the conditions of grant) you qualify; and payment arrangements.
Section F - The Payment Process
How do I claim my grant?
18. You will not need to do anything else following submission of your application form. The Department will check your application details and whether - according to the information available to us - you have met the Scheme conditions and there are any consequences for your grant payment. We will be in touch if we need to ask for further information or clarification.
When will grant be paid?
19. As soon as possible once we have checked your application and information on your fishing activities during the grant period, and we are satisfied you have met the conditions of grant. We will be in touch with applicants regarding grant payments: but if you have any questions or concerns, feel free to get in contact as set out in paragraph 4.
Will I have to pay tax on the grant I receive?
20. Transitional support grant is taxable, in the same way as other grants to the agriculture and fishing industries. Your financial advisor should be able to advise and help assess the implications for your own tax position.
What if my vessel is decommissioned?
21. Any transitional support grant you have been granted will be deducted from any decommissioning grant you are awarded under the Scottish 2003 decommissioning scheme. The Department will take the necessary action and advise you of how it is intended to proceed (for example, the amount of transitional support grant to be deducted from your advance and/or final decommissioning payments as appropriate).
What happens if my vessel sinks or is damaged after my bid has been approved?
22. Any damage to the vessel must be notified to the Department immediately, along with details of any current insurance policy in respect of the vessel. You should also provide information about any civil or criminal proceedings which, to your knowledge, are contemplated or in progress in respect of the damage to or destruction of the vessel. If an insurance payment is received as a result of an incident, you should write to SEERAD advising of the amount received. This may be taken into account and the amount of grant proportionately reduced.
WARNING
It is an offence to knowingly or recklessly make a statement, provide information or provide a document which is false or misleading in a material respect in connection with your application for grant. In addition the approval of your application may be revoked and payment of grant withheld or reduced and any payment already made may be recovered.
SEERAD
July 2003