Brendan Smith (Cavan-Monaghan, Fianna Fail)

The current discussions at EU level on the high cost of fuel are essentially about short-term emergency measures. However, any long-term solution to the current difficulties will have to include measures to rectify the fundamental rebalancing of the fleet capacity with the stock resources available, taking into account the operational costs involved for fishing vessel owners. Grant aid totalling €41.1 million to decommission 46 fishing vessels under the 2008 fishing vessel decommissioning scheme has been announced. Approved applicants have until 18 July to accept the offer and, if they do so, they must surrender fishing licences by 12 September 2008.

This represents a substantial commitment from the Government, bringing the Irish fishing fleet into balance with available resources and ensuring those remaining in the industry can be assured of a profitable future. The removal of older, less efficient vessels will increase the quotas available to the more modern competitive fishing vessels and to smaller vessels and will contribute to achieving a more sustainable and profitable fleet. The scheme delivers on a key recommendation of the strategy for a restructured, sustainable and profitable seafood industry 2007 to 2013, Steering a New Course, also known as the Cawley report.

The Commission's discussion paper for short-term aid for the industry was the subject of detailed consideration at the Agriculture and Fisheries Council on 24 June. The options being considered for such short-term aid carry strict criteria which include linkages to more fundamental fleet management measures. Operating aid for fishing vessels is not permitted under EU state aid rules and any such measures introduced by EU member states would be in breach of EU law and subject to infringement proceedings in the European Court of Justice. The Commission is intent on preserving a level playing field and reiterated this in its discussion paper at the Council meeting. The paper states that there is an impending need to act in order to avert a severe crisis for the EU fishing industry. The response must be EU wide and co-ordinated in order to avoid distorting competition between member states or fleets.

At the Council meeting, and in line with the Commission's stated policy, we pushed Commissioner Borg to bring forward a new EU-funded package of measures to alleviate the immediate issues of concern to the Irish fishing industry. We believe that an effective resolution to many of the issues facing the industry, including the impact of rising fuel prices and quotas, can only be achieved in an EU context.

The Commission has consistently held the view that the main challenge for the EU fishing industry has been, and still is, the structural imbalance between fleet capacity and resources in many fisheries. It firmly holds the view, with which I agree, that while the current crisis was triggered by high fuel prices, there are many other factors impacting negatively on the industry.

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These include illegal, unreported and unregistered, IUU, fishing activity and imports in the Union. In this regard, I am pleased that the Council took strong action and new measures to combat IUU fishing, estimated at €1.1 billion of illegal imports into the Union annually, were agreed and will commence at the beginning of 2010. I have also asked the Commission to bring forward urgently initiatives on research and innovation to find ways to develop more fuel-efficient engines and fishing practices.

As it is clear that high fuel prices will remain, it is imperative, more than ever, to attack the root of the structural problems of the sector. We have put a significant element of the solution to this in place and are delivering on it through the whitefish decommissioning scheme.

I was pleased with the short-term measures offered by several member states and with the response of the Commissioner Borg, who has undertaken to revert to the next Council meeting on 15 July with definitive proposals to address the issues facing fishermen.

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