Dáil debates
Tuesday, 24 February 2015
Topical Issues
Fishing Industry
6:10 pm
Noel Harrington (Cork South West, Fine Gael)
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I thank the Minister of State, Deputy Phelan, for her attendance in the House this evening and would like to bring to her attention an issue that has developed chiefly in the south west of this country with respect to the mussel growing industry. The rope mussel industry is volatile.
It is one in which, largely, small family-run businesses invest heavily in gear and in other ways to grow a safe, organic and healthy food product. The enterprise is volatile in many ways, as it is subject to considerable risks. It is at the mercy of markets, weather conditions and, more recently, high toxicity levels in the water. This toxicity is naturally occurring and is due to a phenomenon known as a red tide or algal bloom. Mussels feed on the algae in the warmer months, and generally the water reaches zero toxicity and it is safe to harvest, process and consume the mussels. Unfortunately, red tide toxin levels have recently remained stubbornly high, although they have abated in the past week, especially in recent days. However, mussel growers and producers have been left with a significant problem.
If the Minister of State will pardon the pun, this is coming at the end of a perfect storm. Last year the storms over the winter caused havoc around the country. The mussel flesh of the offshore rope mussel industry that was waiting to be harvested was wiped out. Production started again, but when the farmers were about to start a new harvest in November 2014, regrettably, they were unable to do so due to high toxin levels in the water. Not alone have farmers been trying to recover from the failed harvest due to bad weather in the winter of 2013 to 2014, but they are now unable to harvest the winter 2014 harvest for the 2015 market.
To give an indication of the scale of the problem, the harbours that are directly affected are, chiefly, Kenmare Bay, Bantry Bay and areas around Dunmanus. Annually, these produce approximately 7,700 tonnes of mussels, chiefly for export. This generates an annual turnover of approximately €7 million, depending on market conditions, which is significant for a very small coastal area.
The vast majority of producers in the mussel industry are ordinary people. They are no different from onshore farmers in the west. They are family businesses and they are not in a position to absorb what has happened for three consecutive years. Could the Minister of State consider instructing BIM to put in place a compensation package through the European Fisheries Fund, EFF, under the current Common Fisheries Policy, which would enable some of those who are most affected to get back on their feet and to produce mussels once again?
Could the Minister of State clarify whether the relevant fund is the European Fisheries Fund or the European Maritime Fisheries Fund, EMFF, under the current Common Fisheries Policy that was recently adopted? Could she ask BIM to examine the possibility of accessing those compensation schemes?
6:20 pm
Ann Phelan (Carlow-Kilkenny, Labour)
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I am responding to this Topical Issue on behalf of the Minister for Agriculture, Food and the Marine, Deputy Coveney. I thank the Deputy for raising this very important issue.
Scientists from the Marine Institute carry out weekly testing of shellfish under the national shellfish biotoxin monitoring programme on behalf of the Sea-Fisheries Protection Authority and the Food Safety Authority of Ireland. These tests check for the presence and levels of naturally occurring biotoxins produced by phytoplankton to ensure compliance with strict food safety regulations to protect the consumer and the good reputation of the Irish seafood industry. A variety of these natural biotoxins build up periodically in particular bays, which requires the bays to be closed until the biotoxin levels subside and the shellfish are cleared of the biotoxins. The biotoxins do not harm the shellfish and the shellfish can be sold for human consumption once the biotoxin levels have abated.
The level of biotoxins in shellfish in a number of bays in the south west, including Castlemaine, Bantry and Kenmare, exceeded the regulatory limits in recent months. This resulted in temporary suspension of shellfish harvesting in these areas until such time as the biotoxin levels returned to normal, naturally occurring background levels. Such harvesting suspensions are not unusual and all seafood enterprises are aware that this is a known and recurring business risk in the sector.
While a number of bays in the south west have experienced temporary suspensions of harvesting over the winter, the Minister, Deputy Coveney, is informed by the Sea-Fisheries Protection Authority that the toxicity events in the south west are abating. Most of the production areas in the south west have already reopened for harvesting, and lifting of suspensions in the remaining two areas appears to be imminent. It is difficult to gauge precisely at this time the likely long-term impact on businesses affected and their capacity to recover. This will no doubt depend on a number of factors, including their ability to harvest and sell stock in the water after the bays have opened. The impact will therefore differ from farm to farm and will also be affected by the specifics of individual businesses, including the extent of their borrowings and other creditors and their cashflow reserves. However, the longer term impact will undoubtedly depend on the extent to which their harvest is salvageable and can be brought to market. It may depend on whether the impact of the suspension is a deferred or delayed sales opportunity or an irretrievable stock loss. Some of the businesses concerned are likely to have sites in more than one location, and may be better able to withstand this business setback. Yesterday, my Department had a lengthy meeting with mussel farmers in the south west and their representative in IFA Aquaculture. This meeting shared up-to-date information on the situation bay by bay and discussed harvesting scenarios that have been occurring and will be occurring over the coming weeks. What was obvious was that the overall impact of the closures will not be clear until the farmers have exhausted the possibilities in terms of harvesting the remaining stock in the water.
The Minister, Deputy Coveney, received a request from aquaculture industry representatives, which was repeated at yesterday's meeting with the mussel farmers, for a package of compensation for mussel farming enterprises, including those to which the Deputy referred. That request sought compensation from either the European Fisheries Fund or the new European Maritime and Fisheries Fund. Similarly, the Deputy is requesting the creation of a compensation fund for the mussel farming enterprises through the EFF.
Ireland's seafood development programme, which is co-funded by the EU under the EFF, has been providing financial supports to the seafood sector across a broad range of investments since it was adopted by the European Commission in 2008. The programme supported the 2008 decommissioning scheme and since then has funded investments in the aquaculture sector, the seafood processing sector, the fishing fleet, and marketing and promotion of Irish seafood domestically and internationally. The programme comes to an end in December this year and will be succeeded by a new programme under the EMFF.
Brian Walsh (Galway West, Independent)
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I am sorry to interrupt the Minister of State, but we have run out of time.
Noel Harrington (Cork South West, Fine Gael)
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I thank the Minister of State for her comprehensive reply. I very much welcome the meeting that took place with the IFA Aquaculture group and key stakeholders. I also acknowledge the success the Minister has had in achieving a 100% increase in the new fisheries fund over the previous one under the revised Common Fisheries Policy .
From what I read of the reply provided by the Minister of State, I note the door has not closed on the possibility of providing some assistance to those operators who, in some cases, have found themselves at risk of going out of business. They simply cannot take the perfect storm, as I outlined, of the recent severe weather and the high toxicity levels now being encountered. I agree that a limited amount of harvesting has begun to take place in the past week. I also agree that it is entirely reasonable to assess how the product will fare on the market and the eventual level of loss to some operators.
I expect the larger operators will probably be in a better position to take the inevitable loss but some of the smaller ones will not. In this context I again call for a favourable response from the Department, for it to engage with Bord Iascaigh Mhara and at least consider a limited compensation package which identifies those hit hardest. This would be to allow them to get back on their feet. I note what the Minister of State said, that the purpose of the fisheries funds, past and present, is to support new and existing industries. It would be very poor judgment if, in looking at new industries and opportunities in the sea fisheries sector, we allowed existing smaller operators to go out of business. This situation exists through no fault of ours, the Department, the Minister of State or the operators, as they have been hit with this tsunami of natural events. I thank the Minister of State for at least not closing the door on the compensation issue.
6:30 pm
Ann Phelan (Carlow-Kilkenny, Labour)
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I thank the Deputy for raising this very important issue. I understand it is a huge local issue for him and I undertake to speak to the Minister, Deputy Coveney, and ask him to refer to the Deputy directly on what plans he has for the compensation scheme. He has not closed the door and I encourage the Deputy to pursue it.