John Perry (Sligo-Leitrim, Fine Gael)
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Question 1: To ask the Minister for Communications, Marine and Natural Resources his plans to deal with the problems facing the scallop industry in the south east (details supplied); and if he will make a statement on the matter. [20111/05]

Pat Gallagher (Donegal South West, Fianna Fail)
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Since January, officials of the Department and I have held a number of meetings with fishermen and processors from the south east who are engaged in the scallop industry. I am keenly aware of the problems facing this sector which are not related solely to fishing effort limits but also to additional challenges posed by high fuel costs and the impacts of implementing the mandatory EU safety requirements for some of these boats.

The capping of fishing effort is one of the key ways in which we can conserve fish stocks for the benefit of future generations of fishermen. Scallop stocks off our south-eastern coast have declined in recent years. The decision in 2003 to limit fishing effort on scallops as well as for demersal stocks generally was driven by sound conservation reasons and was supported at that time by the Irish fishing industry.

The need to achieve a better balance between fleet size and available fishing entitlements has been apparent for some time, particularly in the whitefish sector for which I launched a decommissioning scheme in April. Last Friday, I announced a review of the overall need for decommissioning. This will involve an assessment of the need and extent of the decommissioning requirement for the various demersal and shellfish fleets, including scallops and mussels. This review is to be completed by the end of June and will give an important overall perspective. It will examine the various issues, including eligibility for decommissioning aid where strict EU rules apply. I cannot pre-empt the outcome of this review. It is a planned and structured approach and I look forward to receiving the report at the end of this month.

John Perry (Sligo-Leitrim, Fine Gael)
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I note the encouragement given by the Department for the development of the scallop industry, the additional licences granted and the encouragement given to people to invest heavily in new fleet. The announced decommissioning was to include scallop fishing. Why was it not included?

With regard to the appointment of Mr. White on 30 June, will the Government take on board whatever compensation is recommended? I have no doubt that decommissioning is at the core of this issue. Will the Government have the resources to meet Mr. White's recommendations?

Pat Gallagher (Donegal South West, Fianna Fail)
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A moratorium was introduced in 1999 on the basis that the kilowatt days to be introduced subsequent to that would be based on 1998 to 2002 period. The kilowatt days available this year are somewhat similar to the 2002 figure. I understand the point made by Deputy Perry that the fleet has grown since 2002, particularly in 2003. The moratorium was placed on the acceptance of applications and in 2003 it was decided that those applications on hand, providing they complied with the conditions and criteria, would be approved.

The kilowatt days are affected because the stocks off the south-east coast have declined and the boats must travel to the English Channel fishing grounds. Members will be aware that fishing days are counted from the time a boat leaves port until it returns and this is the principle accepted in Europe. If fishing days were available off the south-east coast, we would not be in this position.

I am pleased that Padraig White, former chief executive of the IDA, accepted my invitation to work with the general industry, including the scallop fishing sector. I suggest we await his report.

John Perry (Sligo-Leitrim, Fine Gael)
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With regard to kilowatt days, the Minister of State referred to 55 days but pressure from the banks lasts 365 days for those who invested heavily as a result of the encouragement given by the Department. What is to become of the proposal put forward by the south-east fishermen in light of the serious negotiations which took place with the Department prior to the appointment of Mr. White? The people in the south east do not want a stop-gap because they are under significant financial pressure and they want assistance.

Paul Kehoe (Wexford, Fine Gael)
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I hope the Minister of State is not buying time.

Pat Gallagher (Donegal South West, Fianna Fail)
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The Deputy obviously pre-empted my reply. I am not in the business of buying time. After 24 years in this House I am not in the business of trying to deceive anybody. I was dealing with the facts of 2003 and the decision did not result from December of last year. There should be no ambiguity about that and December this year will not resolve it either. It is something which we all bought into in 2003. The 4.8 is a proposal which was made by the south and east fishermen and there are many good aspects to their proposals which I could accept. I acknowledge the work of their chief executive and some of them are quite sensible.

It is a fact that decommissioning is written into the national development plan. It is €8.8 million over the next three years to be approved by Brussels with fairly strict criteria. It focuses on species of fish which must be fished by a limited quota whereas, ironically, there is no quota and no catch limit on scallop fishing. The effort limit is approximately 80% of the effort limit in force in 2003. I acknowledge it is not enough and I would be much happier if there were more days but it is the distance from the fishing grounds that has created the serious problem for us.

I look forward to working in partnership with the representatives of the industry and with Mr. White to try to overcome the difficulties. I am the first to acknowledge that fishermen face serious difficulties and I want to work with them to find a resolution. I took the only decision that could be taken which was to introduce a number of days between 25 May and 15 June and another series of days have been introduced from 15 June onwards to ensure continuity. I also considered the consistency of landings and the interests of processors.

John Perry (Sligo-Leitrim, Fine Gael)
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Is the Minister of State aware that 30 June is the final date for scallop fishermen to comply with EU safety regulations? The Minister of State is quite new to the job. Is he aware that in light of the poor performance of the aquaculture sector of the national development plan, the Government has failed to deliver the NDP objectives? Is there a possibility of a compensation fund for those heavily burdened with debt and suffering significant financial pressure as we speak?

Pat Gallagher (Donegal South West, Fianna Fail)
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I have asked Padraig White to consider all these factors. As an indication of the urgency with which this matter is being treated, I spoke to the fishermen and Friday and Saturday and Mr. White was in the south east on Monday and yesterday to familiarise himself with the situation. I look forward to receiving his report and hope we can eventually reach a satisfactory conclusion. I am aware of the importance of 30 June. Unfortunately I have no control over that date as a European directive defines the standards for vessels of more than 24 metres. Deputies Perry and Broughan along with others have been very helpful in assisting me on Committee Stage to deal with all the other vessels that are smaller than 24 metres. I hope the House will decide to give me the authority to allow more time. Unfortunately I do not appear to have the authority to make such an extension. However, this matter does not just relate to 24-metre scallop fishing vessels, it relates to 24-metre vessels regardless of the type and species of fish. I am aware of the issue and I will work with the Deputy.