Dáil debates

Wednesday, 21 October 2009

Adjournment Debate

Aquaculture Industry.

9:00 pm

Photo of Brian O'SheaBrian O'Shea (Waterford, Labour)
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Go raibh maith agat, a Chathaoirligh. Gabhaim buíochas leat as ucht seans a thabhairt dom an cheist seo, atá an-thábhachtach do mo dháilcheantar, a cur os comhair na Dála agus leis an Aire Stáit as ucht a bheith anseo chun freagra a thabhairt ar an gceist.

There is a great need for the immediate opening of the operational programme for fisheries to allow for funding to the aquaculture sector and to restore a level playing field for Irish companies to compete fairly in Europe and on the world stage. The representative organisation of this sector, IFA Aquaculture, has called on the Minister to honour the commitments made by the Government in signing up to the Cawley report on the seafood sector in 2007 and to ensure that in the 2010 budget there is a sufficient level of funding, at least €10 million, earmarked under the co-funding programme for fisheries to be drawn down in 2010. As a Deputy from a constituency which has both a coastal and rural area, I support this call. It is incumbent on the Minister to ensure that this vital capital grant aid is open for access immediately.

The Irish aquaculture industry is worth €120 million per annum and provides more than 2,000 vital jobs in coastal and rural areas. It is of particular importance in my own constituency, where jobs in primary production of shellfish are important earners which provide full-time and part-time jobs. The aquaculture industry also provides vital business for companies supplying a range of goods and services, ranging from fuel to IT, engineering, chandlery and so on. One company in the Dungarvan area of County Waterford provides 17 full-time and 12 part-time jobs. The oyster industry as a whole provides approximately 50 full-time and 30 part-time jobs in the Dungarvan area. Almost the entire product is exported to EU countries and this industry provides vital cash to local economies.

The main competitors to the Irish industry come from the EU, Scandinavia, Africa and South America. For the Irish industry to stay competitive it must continually improve and adapt technology and reduce costs. This fact has already been recognised by the introduction of the European Fisheries Fund Regulations in 2007. The regulations allow member states to fund capital programmes up to 40% to improve aquaculture industry efficiency, lower any environmental impact and improve the quality of the final product.

I understand that, due to internal disputes between Departments, the funding under the EFF regulations has yet to be made available. This must be taken against the fact that the governments in every one of our main competitor countries in Europe have opened access to funds from the EU and national exchequers to assist their industries under the terms of the EFF. The programme runs from 2007 to 2013 and we are now almost at the half-way point.

As a matter of the greatest urgency, I am seeking that the Irish small and medium industries involved in the primary production of shellfish are given immediate notification that the Irish national operational programme for fisheries is open for application.

Photo of Tony KilleenTony Killeen (Clare, Fianna Fail)
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Gabhaim buíochas leis an Teachta Brian O'Shea as ucht an ábhar thábhachtach seo a chur os comhair na Dála agus deis a thabhairt dom freagra a thabhairt air.

Let me assure this House that I am actively working to address the current challenges and my objective is to have a scheme in place that will enable grant aid support to be made available to the sector in 2010.

First, it is important to note that funding support for the fisheries and aquaculture sectors comes under the European Fisheries Fund Regulations 2007. In Ireland, the seafood development measure contained in the National Development Plan 2007-2013 is divided between the EU co-funded operational programme and the national seafood development operational programme. The EU co-funded OP commenced in 2008 with the implementation of the decommissioning scheme and grant aid totalling €36.6 million has already been paid over 2008 and 2009 for the decommissioning of 46 boats. Following concerns expressed by DG Environment of the European Commission, it was agreed not to include an aquaculture development measure in the EU co-funded operational programme.

The national seafood development operational programme 2007-2013 draft was advertised for public consultation in October 2008 as part of the strategic environmental assessment. During the consultation both the Departments of Environment, Heritage and Local Government and Communications, Energy and Natural Resources on behalf of the Central Fisheries Board raised concerns regarding the granting of aid to projects where environmental issues arise relating to compliance with the EU birds and habitats directives and sea lice control on salmon farms. Pending resolution of these issues, the national seafood development operational programme has not yet been adopted.

The Deputy has raised the funding of the aquaculture sector specifically. The delay in the launch of the national seafood development OP has not prevented grant aid from being provided to aquaculture developments in 2009. The European Commission agreed to the continuation of grant aid under the previous operational programme 2000 to 2006 until 30 June 2009.

A provision of €5 million was made available for aquaculture development in the Agriculture Vote for 2009 and I approved the spending of €4.5 million of this for aquaculture projects in both the Border, midlands and western and the southern and eastern regions. This support has assisted the continued development of aquaculture projects in these areas and the employment that those projects support.

In the meantime, this Department and its agencies working with the Department of Environment, Heritage and Local Government developed a comprehensive plan to deliver compliance with the EU birds and habitat directives for wild fisheries and aquaculture over a determined timeframe. This plan was submitted to DG Environment for consideration and on 13 May 2009 a meeting between this Department, the Department of Environment, Heritage and Local Government, relevant agencies and DG Environment took place in Brussels to discuss the plan with a view to securing DG Environment's support for the approach set down in the plan. DG Environment advised at that time that it was, in principle, favourably disposed towards Ireland's plan, subject to a positive response to the issues raised and further clarifications from the Irish authorities on the details of the plan. However, it has recently advised that it remains concerned about the planned approach to delivering compliance for aquaculture licensing. The most recent views of DG Environment are being examined.

In relation to the concerns of the Central Fisheries Board, a meeting at ministerial level was held in June between this Department and the Department of Communications, Energy and Natural Resources. Following the preparation and consideration of a follow-up report, I intend to engage with Minister of State, Deputy Conor Lenihan, who has responsibility for inland fisheries, with a view to agreeing an approach that will give the necessary assurances to that Department so that it can withdraw its objection to the operational programme.

I will continue to work closely with all parties to drive both processes forward to deliver on and further develop the strategic change necessary to support Ireland's aquaculture sector.