Simon Coveney (Cork South Central, Fine Gael)

I propose to take Questions Nos. 36 and 40 together.

I had thought we would take Nos. 35 and 36 together. Maybe this is an opportunity for people to come back and ask for more detailed answers if they want. These questions are about the discussions I had with Commissioner Damanaki. To say that I made a clear case in terms of my reservations about single transferable quota would be an understatement. We met for about an hour and a half, and for an hour of that we were discussing the issue of single transferable quotas - why it makes sense for France and Spain and perhaps Britain to have a system under which quota can be traded, as milk quota was in the past, but it makes no sense for Ireland. This is because of the way our industry is structured, primarily along family lines. In some cases, particularly the big 23 in the pelagic fleet, it is different, but the whitefish fleet consists of relatively small trawlers. Under our system, the national quota is allocated with the aim of keeping intact as many fishing families as possible in coastal communities by giving them a viable quota. The quota is shared out in a way that will give maximum benefit to coastal rural communities, and this has worked. Although I accept that we do not have enough quota, the allocation of resources, in terms of the quota we do have, has worked quite successfully. The industry works with my Department. I accept that differences of opinion sometimes occur but by and large the industry works well with my Department.

The idea that we would allow people to sell or lease their quotas to anyone they like with a view to exiting the industry or making money is extremely dangerous. If we were to allow this to happen it would enable fishing companies which have significant resources and which are linked with multiples to expand their activities. The latter is particularly true in the French case. For example, one of the largest retail multiples in France - it is a really good company - owns 15 trawlers, eight of which operate, perfectly legally, in Irish waters much of the time. We are meeting representatives of the company in a few weeks to try to encourage it to land its catch in Ireland in order that it might be processed here.

We could not allow the Spanish fleet in particular to buy up additional quotas in Ireland in order to feed what is, as everyone is aware, a fleet which does not have sufficient quotas to allow it to remain viable. We cannot permit this to reduce the level of quotas available to Irish boats. We have made this absolutely clear. My expectation is that when we see the first draft of the proposals relating to the Common Fisheries Policy these will contain a recommendation regarding single transferable quotas. I am sure the EU will try to accommodate our concerns by putting in place restrictions relating to the need to retain quotas within individuals countries. However, I am not convinced this will protect quotas to the extent we would like.

The second issue about which I had quite a long conversation with the Commissioner was that relating to discards and the importance of the Irish Box, or the biologically sensitive area. I have already made my position clear in respect of that matter.

See this speech in context