Seán Sherlock (Cork East, Labour) | Oireachtas source

I note that the Minister of State, Deputy Butler, is giving the reply which will have been given to her. I do not expect the Minister of State necessarily to be in charge of this particular issue. I wanted to raise the issue of the Brexit Adjustment Reserve, BAR, fund, as it relates to the fishing industry. I anticipate that the Minister of State will tell me they are working on it and that it is open to the SME sector. This fund was set up to ensure that money flows into the fishing industry to meet the effects of Brexit. This is money that could very easily go into the fishing industry to allow for supports for processing in particular in a way that ensures jobs are maintained, capital investments are made and innovations can be brought to the industry to allow it to at least survive in the teeth of the storm that is Brexit and its impacts.

I have been in contact with the Irish Fish Processors and Exporters Association, IFPEA. It tells me six larger companies are now excluded from the processing capital investment scheme resulting from BAR. This is completely wrong and contrary to the principles of the Brexit Adjustment Reserve, where no one is left behind. The six projects earmarked by these companies would have a massive positive impact in their respective communities and would also be real drivers for change within the fishing industry, creating new employment and greater value in exports. They would sustain their companies with product diversification and high-end value added. As a member state, Ireland should be highlighting and pushing forward projects such as these as opposed to the current approach where the fund is deemed to be accessible only to SMEs.

The Minister of State may refer to the issue of state aid rules in her reply. When he visited Killybegs in September 2021, the Commissioner for fisheries said that there are no state aid rules and we have absolute flexibility to prioritise our funding. We could open that up to larger producers and bring them under the scheme as well. That flexibility is key to ensuring there is a successful scheme. The larger companies themselves can grow the number of employees they have. There is the issue of sub-supply of plant and machinery into the sector under the capital expenditure element. Contractors are ready, willing and able to provide services. They are all waiting for news of this scheme. Increasingly they are becoming frustrated by the fact that the scheme is not up and running and that the manner in which the scheme is devised excludes larger processors. I am asking the Minister of State to take that on board.

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