John Perry (Sligo-Leitrim, Fine Gael)
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Question 66: To ask the Minister for Communications, Marine and Natural Resources his policy with regard to the fish processing industry on the west coast, in particular in Killybegs; if his attention has been drawn to the fact that many factories have no fish to process and that several fish processing factories have closed; and if his attention has further been drawn to the fact that at the same time as this is happening, a company (details supplied) in Scotland is expanding significantly to cater for Irish boats, which are now bypassing Killybegs to land their fish. [3885/05]

Pat Gallagher (Donegal South West, Fianna Fail)
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For many years, County Donegal, in particular the Killybegs area, has been to the forefront of the Irish fishing industry, and has been a vital source of permanent and seasonal employment opportunities in coastal communities as well as boosting the local economy through ancillary industries. The pelagic processing industry is going through a period of change arising from various factors which have impacted on the industry. A critical factor is the high price being paid for mackerel across the market. It is probable that some ongoing restructuring of the processing sector will continue as firms position themselves to provide long-term sustainable jobs for the area in a competitive international market.

EU measures to strengthen control in pelagic fisheries, introduced in 2004 as a consequence of concerns about illegal landings right throughout Europe, will continue this year. The effective implementation of these measures is critical to ensure the medium to long-term sustainability of fish stocks and to maximise the market prices for vessel owners respecting quota allocations. I responded to industry concerns about the impact of these new procedures and secured at last December's Fisheries Council a commitment that the Commission would bring forward proposals that will allow fish to be weighed after transport from the port of landing while ensuring full control and accountability. The Commission brought forward informal proposals in this regard, which are currently being evaluated.

Equally importantly, new arrangements have been put in place in designated landing ports in Ireland that allow for weighing of fish and the subsequent addition of refrigerated seawater. The new system addresses to a significant extent the quality and other concerns expressed by the industry last year. By working together, we will ensure the pelagic seafood sector in Donegal maintains its pre-eminent position and remains an economic linchpin of its coastal communities.

The Government has no plans to close down the fish processing industry on the west coast. The Deputy will recall the Government investment of €50 million in the major new harbour development at Killybegs. We want a return on that investment through more fish being landed at Killybegs. My officials and I will work closely with the industry with a view to attracting more of the vessels into Killybegs.

One would get the impression from the question that the fish are being caught south of Donegal and are bypassing Killybegs on their way to Scotland. Deputy Perry will be aware that in December and January the fish are largely off Norway. They move outside the line east of 4°W and then into the waters of Scotland and Norway, and fishermen are taking full advantage of the prices there. However, I would prefer that they landed their fish in Killybegs, providing jobs for the hard-pressed processors and seasonal workers.

Eamon Ryan (Dublin South, Green Party)
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There are no fish left in Irish waters. The overfishing the Government has allowed has caused the problem.

John Perry (Sligo-Leitrim, Fine Gael)
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The Indecon International Economic Consultants report on fish processing in 2001 stated there were 29 pelagic fish processing companies at that date. There now appear to be 14, which suggests that up to 15 companies have closed in the past three years. Is this a huge concern considering the economic spin-off not alone to fish processing but to the supply chain of that industry?

What changes are necessary in our domestic quota management to reflect the new fleet development and reduced quota for key species? There has been a dramatic change in emphasis in regard to different species. Is the Minister concerned with the closure of 15 companies since 2001 and that, as we speak, Peterhead in Scotland is investing heavily to accommodate Irish boats?

Pat Gallagher (Donegal South West, Fianna Fail)
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I presume Peterhead is investing to accommodate Irish boats because the fish, unfortunately, are close to there at this time. The Deputy will know from his contacts in Killybegs that during the early part of the year record prices are available in that area.

I accept we have a responsibility to work with the producers and processors to develop the industry. This means not only providing jobs at sea but, equally important, jobs on land in the processing plants that have made major investments but are having problems at present. While the boats can follow the fish and land their catches into the nearest ports or where markets are most lucrative, processors cannot.

Fewer processors are operating in recent years due to the reduction in the quota for pelagic fish. As the Deputy knows, the decision on mackerel as a straddling stock is out of our hands and is decided by the EU and Norway. However, with regard to stocks over which I have some control, when I visited Brussels this year there was a proposal to significantly reduce the horse mackerel quota. Through negotiations and networking, I secured the status quo for horse mackerel and achieved a substantial increase in the blue whiting quota. I hope we can work with BIM and the industry to ensure a concentration on blue whiting so that more of it is taken ashore for human consumption purposes.

Eamon Ryan (Dublin South, Green Party)
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It is unsustainable fishing.

John Perry (Sligo-Leitrim, Fine Gael)
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With regard to Annex IV on the weighing of fish, there is serious concern that up to 20% of the catch can be water. Will the Minister provide a timescale for an interim measure to deal with this in the coming weeks?

Pat Gallagher (Donegal South West, Fianna Fail)
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I recognise the problem. My officials and I spent seven hours working with the industry to try to overcome it. I assured the industry I would raise the matter when I went to Europe. I did so, and secured a political commitment from my 24 European colleagues.

John Perry (Sligo-Leitrim, Fine Gael)
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Will the Minister provide a timescale?

Pat Gallagher (Donegal South West, Fianna Fail)
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We are working on that at present. It will be sooner rather than later but it is being actively considered. The draft, of which the Deputy is aware, was presented to the Government and the industry — processors and producers. I hope there will be a favourable decision that the industry can buy into.

In the meantime, with regard to the Annex IV regulations, measures were introduced in recent weeks, which have been beneficial if not ideal.

John Perry (Sligo-Leitrim, Fine Gael)
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Why are foreign factory ships allowed to fish at will in Irish waters with no monitoring on board or at the time of landing?

Pat Gallagher (Donegal South West, Fianna Fail)
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They are not necessarily landing into our ports so we have no jurisdiction over that. I presume the Deputy is suggesting there should be observers on boats——

John Perry (Sligo-Leitrim, Fine Gael)
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Yes.

Pat Gallagher (Donegal South West, Fianna Fail)
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——and that there would be no slipping of fish or discards. I have no difficulty with that and the Commission is considering it at present.