LAW OF UKRAINE

of February 19, 2004 No. 1516-IV

About the Nation-wide development program of fishery of Ukraine for the period till 2010

The Verkhovna Rada of Ukraine decides:

1. Approve the Nation-wide development program of fishery of Ukraine for the period till 2010 (further - the Program) which is attached.

2. To the Cabinet of Ministers of Ukraine to provide annually in case of project development of the Government budget of Ukraine and the State program of economic and social development of Ukraine (since 2005 for the period till 2010) allocation of appropriate means on implementation of actions on accomplishment of the Program.

3. The state customer of the Program is specially authorized central executive body concerning fishery of Ukraine.

4. This Law becomes effective from the date of its publication.

 

Approved by the Law of Ukraine of February 19, 2004 No. 1516-IV

The Obshchegosudasrtvenny development program of fishery of Ukraine for the period till 2010

I. GENERAL PROVISIONS

Fishery of Ukraine plays significant role in providing the population with food, and industries of national economy - raw materials, and also in reproduction of natural resources and employment increase of the population.

As a result of economic crisis amounts of release of main types of products from fish and other water live resources significantly decreased, the role of fishery in food supply of the state decreased. Physiologically reasonable annual need for fish and fish products (20 kilograms per capita) makes about 1 million tons. Nowadays average level of consumption reaches only a little more than 8 kilograms a year. In view of sharp reducing the amounts of financing in fishery there were menacing tendencies. First of all it is connected with deterioration in technical condition of the equipment, in high gear its moral and physical aging, failure of fixed assets of the companies.

The nation-wide development program of fishery of Ukraine for the period till 2010 (further - the Program) is directed to realization of state policy on regulation of development of fishery, providing fish industry with financial, material and other resources, strengthening of its potential and scientific and technical production, coordination of activities central and local executive bodies and local government bodies, the companies, organizations and the organizations for the purpose of the solution of the major problems and creation of proper economic operating conditions of fishery complex of the country.

The concepts used in this Program have the following value:

aquaculture - cultivation and cultivation of fish and other water live resources in special artificial conditions or fishery water objects determined for this purpose;

withdrawal of fish and other water live resources - catch (production, collection, etc.) from natural or artificial environment of fish and other water live resources by means of fishing tools;

reproduction - natural or artificial recovery (reproduction, resettlement, acclimatization, etc.) of the number of the fish and other water live resources (retransformation) decreasing in the course of their use or natural death rate;

the state protection of fish and others water the live state measures of resursovsistem for preserving, reproduction, cultivation, improvement of conditions of dwelling, control and regulation of number of fish and other water live resources, ensuring execution of requirements of the legislation of Ukraine by physical persons and legal entities in fishery, control of which is exercised by specially authorized body of the executive authority concerning fishery;

mariculture - cultivation and cultivation of sea fishes and other water live resources in specially created artificial conditions or sites of coastal strip of the sea determined for this purpose;

rules of trade (fishery) - the regulating documents establishing certain requirements, conditions, methods, types of tools of fishing, terms and procedure for catch of separate types of fish and other water live resources in fishery water objects of nation-wide value;

trade of fish and other water live resources - type of special use of fish and other water live resources for production food, technical, fodder, medical and other types of products;

the fishing area - fishery water object or its part to whom trade of fish and other water live resources is carried out;

regulation of trade (fishery) - determination of areas, terms of fishing, types and parameters of tools of fishing, methods of withdrawal, procedure and conditions of establishment of limits of withdrawal of fish and other water live resources from fishery water objects;

fish and other water live resources (water biological resources) - set of organisms which life is impossible without stay (stay) in water. Fresh-water, sea, anadromous and catadromous fishes at all stages of development treat water live resources; cyclostomous, marine mammals; water invertebrates, including mollusks, Crustacea, worms, erinaceouses, sponges, coelenterates, land invertebrates in water stage of development, alga and other water plants;

fishery (subindustry of fishery) - trade of fish and other water live resources in fishery water objects;

fish breeding (subindustry of fishery) - cultivation and cultivation of fish and other water live resources in specially created artificial conditions or fishery water objects determined for this purpose;

fishery water objects - lakes, the rivers, the seas with estuaries and estuariya, water storage basins, ponds, and also separate technological reservoirs which are used or can be used for cultivation, cultivation, reproduction and (or) catch of fish and other water live resources where economic activity of all participants of water management complex is limited for the benefit of fishery;

the fishery company (fish breeding, fishing, fish processing) - subject of business activity which core activities are catch (collection), reproduction, cultivation, conversion of fish and other water live resources and products from them and the amount received from its realization or its separate type exceeds 50 percent of total amount of gross income of the company;

fishery - industry of economy which tasks are studying, protection, reproduction, cultivation, use of fish and other water live resources, their withdrawal (catch, production, collection) and conversion for the purpose of receipt of food, technical, fodder, medical and other products for population requirements satisfaction;

commodity fish breeding - cultivation in specially created artificial conditions or fishery water objects of commodity fish and other water live resources determined for this purpose which are implemented to the population or are used by the fish processing companies as raw materials;

catch - amount of the withdrawn fish and other types of water live resources in quantitative or weight expression;

catch possible (admissible) - the forecast size of amount of withdrawal of types or groups of fish and other types of water live resources within limit.

II. CURRENT STATE AND FEATURES OF DEVELOPMENT OF FISHERY

Fishing activities are connected with studying, protection, reproduction, cultivation and use of fish and other water live resources by their withdrawal (catch, collection, etc.) with further transportation, storage, conversion, import, export, production and sales of products from them, the organization and implementation of public administration and control in fishery.

In fishery of Ukraine output gap is observed (appendix 1) and there are processes of decrease in its potential. Depreciation of fixed assets makes more than 55 - 65 percent, there is aging of technical base, amplify resource and financial imbalance, leading to output gap. In 2001 amounts of catch of fish and other water live resources decreased in comparison with 1990 by 70 percent, production of food products from them - for 63 percent, fish canned food - for 69 percent, feed fish meal - for 80 percent.

For the last 12 years of 75 - 85 percent of fish and other water live resources it was got within exclusive (sea) economic zones of the foreign countries and open part of the World Ocean and only 1525 percent - in exclusive (sea) economic zone and internal reservoirs of Ukraine, including commodity fish breeding.

From fish and other water live resources domestic shipowners are forced to use considerable part of the withdrawn products for payment of licenses for the right of fishing, providing operating expenses, coverings of deficit of own current assets as a result of impossibility of attraction of credit resources because of high bank rates. It negatively affects the consumer market, utilization of capacity of the coastal fish processing companies, and also causes decrease in export prices on products from fish and other water live resources and reduction thereof amounts of currency earnings.

In the world the tendency of provision by other coastal countries of permissions to trade in the waters which are under their jurisdiction, fish and other water live resources only to residents extends, that is the possibility of work of any foreign vessels is provided only on the basis of creation of joint businesses, joint activities, chartering of courts for use of quotas of catch, organization of the companies by foreigners in these countries, changes of flag of the vessel, etc.

Led increase of expenses on payment of the license for the fishing right, repair of the obsolete fishery fleet to reduction of amounts of catch of fish and other water live resources by the oceanic fishing companies.

The available capacity of industry maintenance bases of the fishery fleet, the ship-building, repair and mechanical-repair yards is used for 20 - 25 percent.

The companies of fishery of Ukraine are nowadays provided for 70 percent of setematerialama of foreign production. Domestic setevyazalny factories need expansion and upgrade.

As a result of anthropogenous impact the areas were considerably reduced and productivity of spawning areas in the Azovo-Chernomorsky pool decreased. Intensive pollution of water led to reduction of food supply, area of nagul, reproduction of different types of fishes and other water live resources and to sharp reducing amounts of their catch.

Feature of the provision which developed in the Azovo-Chernomorsky pool is discrepancy of the extracting capacities of lower which are available in the countries of the region, in comparison with the past, the number of fish and other water live resources in traditional coastal areas of fishing. For increase in number of populations of kefalevy and kambalovy fishes it is necessary to construct rybovosproizvodstvenny complexes and fish nurseries general capacity to 300 million pieces of juveniles a year.

The problem of reproduction sturgeon in the Azov and Black seas has special value as the quota of their catch depends on real contribution of Ukraine to forming of herd of sturgeon. Capacity of the companies for reproduction of sturgeon operating in the country reaches about 8 million pieces of juveniles a year, and in 2010 it shall constitute at least 35 million pieces of juveniles of sturgeon.

Ukraine has considerable fund of natural and artificial water objects - estuaries, lakes, water storage basins and technological reservoirs which settlement potential ryboproduktivnost constitutes 100350 kilograms from hectare. For its achievement the annual amount of artificial stocking of water objects shall equal about 60 million pieces of juveniles of carp, herbivorous fishes, crucian, bream, pike perch, pike, catfish, pelengas and other trade species of fish.

The Azovo-Chernomorsky pool has favorable conditions for cultivation of mollusks (mussels, oysters). Slow growth of amounts of their cultivation is caused by lack of means, weak coordination of works between the organizations, lack of the long-term concept of development of mariculture. In the pool the construction of complexes on cultivation, production and conversion of seaweed and sea herbs is also considered perspective.

In commodity fish breeding recession (nearly 70 percent) of amounts of cultivation and catch of commodity fish is connected with considerable reducing (about 90 percent) use of artificial fish forages in view of their high cost, the considerable tax pressure, unsatisfactory crediting in the conditions of seasonal nature and two-three-year cycle of production. Productivity of fish ponds decreases, genetic potential is lost, technologies of cultivation of fish with bringing share of herbivorous fishes to 70 - 80 percent are applied, warm-water basin and cage fish farms owing to high resource intensity (stern, energy resources, labor costs) of production actually stop functioning.

At the fish processing companies output gap is caused by reducing current assets and amounts of raw materials, use of imperfect technologies, aging of active part of the fixed business assets, imperfect price, tax and credit policy, sharp decrease in purchasing power of the population. As a result of insufficient protection of own producer import of products from fish and other water live resources which can be made in enough in Ukraine continues. In general the potential production of the fish processing companies of industry is used for 30 - 40 percent.

Lack of refrigerating capacities for storage of products and freezing of raw materials from fish and other water live resources nowadays are not felt. However the majority of the operating refrigerators needs capital repairs and upgrade, and part of them is subject to write-off.

Level of material logistics of fishery decreases. Most courts, machines and mechanisms fulfilled depreciation terms, expenses on their repair and maintenance considerably raised. Due to the increase of difference in price parity on products from fish and other water live resources, decrease in solvency of the fishery companies them does not conduct procurement of modern fishing and other courts, the new equipment.

Insufficient amounts of capital investments in development of fishery aggravate crisis situation. In 2000-2001 amounts of capital investments in fishery complex at the expense of different sources of financing decreased in comparison with 1990 more than ten times.

The financial condition of the companies of fishery complex considerably worsened. As a result of recession of production volumes and reduction of sales of products, deepening of disparity of the prices, inopportuneness of calculations with producers, insufficient financing of production, inefficient system of the taxation and insurance profitability and solvency of the companies decreased. Their total debt which is result first of all of disparity of the prices, impossibility of receipt of credit resources because of high bank rates increases.

III. PURPOSE AND MAIN OBJECTIVES OF THE PROGRAM

Main objective of the Program is creating favorable conditions for development of fishery, providing the population of Ukraine with products from fish and other water live resources with gradual approach to the level of evidence-based physiological regulations of their consumption per capita, providing other industries of economy with raw materials for production of biologically active agents, medical medicines, technical and fodder products.

The program provides accomplishment of the following main objectives:

1) determination of the basic principles of state policy regarding development of fishery of Ukraine;

2) updating of fixed assets of the fishery companies on the basis of widespread introduction in production of achievements of science and technology, especially in the fishing fleet and at the companies of conversion of fish and other water live resources;

3) increase in efficiency of use of raw inventories of fishery water objects of Ukraine, open regions of the World Ocean and exclusive (sea) economic zones of other countries;

4) development of fresh-water and sea aquaculture, intensification of commodity production on the basis of use of high-quality selection material;

5) reproduction and protection of fish and other water live resources;

6) ensuring high quality and expansion of the range of competitive products from fish and other water live resources;

7) implementation of structural adjustment of fishery, assistance to development of the companies of all patterns of ownership;

8) development of the international sci-tech cooperation, foreign economic relations in industry of fishery;

9) harmonization of the legislation of Ukraine on product quality from fish and other water live resources with regulations of the European Union and the international standards;

10) assistance to development of fishing activities for the purpose of employment increase of the population, replenishment of budget receipts of all levels and ensuring food security of the country.

For accomplishment of tasks of the Program it is necessary to perform number of actions, in particular on material logistics of development of industry, organizational and information, scientific and technical and to staffing, and also enhancement of regulatory framework.

IV. MAIN DIRECTIONS OF DEVELOPMENT OF FISHERY

The main directions of development of fishery are:

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