Ms Catherine McManus:

I will comment on the stagnation or decline in production, in finfish in particular, in Ireland over the past 20 or even 30 years. The industry was faced with the challenge of old licences. Many of the finfish licences under which the industry currently operates were granted in the 1980s and 1990s. This industry is very dynamic, quick to adapt and innovative. In the past 20 to 30 years, the methods of production have changed, with the focus now more on sustainable production. We have learned very quickly. Norway has been the leader in that and we have learned from our neighbours. The investment and support of Norwegian industry are what have kept the finfish sector alive in Ireland.

We have been stuck with these very old licences granted at a time when many of the European environmental directives and objectives were not established. Many were granted when we did not even have designated areas of conservation or special protection areas. None of these were in existence in Ireland at the time. Since the late 1990s, we have new environmental legislation and industry must comply with it. Another point to be made about the old licences is that there is no uniformity in how they were described or the conditions attached to them. They could vary from site to site or from county to county. Old technology such as the use of wooden pens was prescribed in some licences and we know we could never survive with that condition nowadays. In other cases, the prescribed numbers of fish, the ages of fish and the maximum amount that could be harvested. When these conditions were all put together, none of it made sense environmentally. The industries had to dial back production to comply with European legislation and directives.

The other issue we have had to deal with is that most of the production in Ireland - more than 80% - is exported. We are competing on global markets with our neighbours, including Scotland, the Faroe Islands, which are smaller than Ireland but have more production, and Norway, and even with Canada, Chile and other such countries. As a result of their more progressive licensing systems, they can produce more fish sustainably, at a lower cost, than we can in Ireland.

The Irish industry had to adapt very quickly and find a niche, which is where the organic story comes in. Clew Bay was where organic farming, particularly of salmon, started way back in the 1990s. The Irish were the pioneers of organic salmon production globally. We should have continued to lead the way but because of the licensing system and lack of progression with it, and the old licences we had been left with, we stagnated. One of the cornerstones of organic principles is lower stocking intensity. We had to make do with old licences within very confined foreshore areas. At the same time, we had to reinvent ourselves to try to make a margin elsewhere. This is where the whole organic production came in. We then had 100% of the industry producing to organic principles and that gave us a competitive edge over Norway, Scotland and so on. That has now been eroded because the other countries see what Ireland has done and they are doing it at a lower cost than us now. This is a huge threat. What is behind that is that the licensing system in Ireland has not kept pace with the development of the industry along sustainability principles. That is where we are at.

Regarding the length of time it takes to get a licence in Ireland, the entire industry applied for renewal of its old licences over many years and they have still not been reviewed. We have also applied for licences to be reviewed with modern conditions included. We want to operate to a maximum available biomass which the site or water body has been scientifically shown it can cope with quite healthily. This has been a slow process. It has definitely sped up over the past two years but it is complicated because the finfish industry requires environmental impact assessment reports to support these revisions of licences. These are complicated detailed documents requiring the input of many experts such as archeologists, marine biologists and oceanographers. A lot of effort, expense and time goes into preparing these documents. We cannot just whip them out or produce them in a short space of time. This has been a concern.

In our experience, it takes at least 11 years to get a brand-new licence for a site. The Deputy can do the sums but in those 11 years, the rest of the European industry will be racing ahead and filling the gaps Ireland cannot fill, particularly in the organic sphere.

The Irish industry has paved the way for the marketing of organic salmon. We have put in a lot of effort with the support of Bord Bia, Bord Iascaigh Mhara and others to market Irish organic fish and shellfish abroad. Now other countries are coming in on the coat tails of the efforts made by our sector so we are losing ground and we appeal to the powers that be to implement the suggested reforms in the review of the aquaculture licensing process. I think there are about 30 recommendations in that. We need to see all of these implemented and we need legislative reform. It is very important. Otherwise we will just not be in position in another ten years. We will not be able to compete on cost, particularly these days when we are faced with soaring energy costs. Even our feed costs have gone up by about 30%. Feed alone makes up about 50% of our overall production costs. On top of all of that, it is a business for which you need deep pockets because for the technology and infrastructure needed to set up a modest farm, you are talking about at least €6 million or €7 million just to establish and equip a site. On top of all of that, you need all the ancillary equipment, boats, craft and so on. It is technology-intensive. We also rely on good people on the coast - people who want to live on the western seaboard - and this is getting more and more difficult due to cost of living reasons. All sectors face difficulties recruiting people. We have a good and sustainable way of life that is certainly very compatible with the west coast of Ireland in terms of crofting, small farmers and the seafaring aspect of the coast line and we do not want to lose it because it would be very difficult to get that back.