Michael Finucane (Fine Gael)

I thank the Minister of State for his comprehensive statement. Shellfish farming and fish farming were first established about 25 years ago and the whole aquaculture field has been successful. The greatest success is that about 19,000 people depend to some degree on aquaculture. Many of these are in peripheral communities into which it would be difficult to attract industrial employment. The aquaculture industry supplies sustainable jobs and is worth about €40 million annually, a substantial amount. A recent report said that every euro of public funds invested in aquaculture yields €2.8. The recent CIRCA report on aquaculture predicted that by 2015 the industry would be worth €362 million at first point of sale and €625 million at processed output value. The National Development Plan 2000-2006 urges the salmon producers to raise the level to 40,000 tonnes per annum. The Norway-EU agreement on licensing helped to create stability in the market. Last December, however, an EU disclosure document found that it was wrong, anti-competitive, unworkable and an impediment to fair trade. As a result, in May of this year the Norway-EU agreement was abolished. Norway is the largest producer of farmed salmon in the world and a significant exporter. That agreement insisted that salmon could not be sold at EU level for less than €3.25 per kilogramme but that is gone now. The market is opening up to Norwegian and Scottish salmon with the result that prices are low. There is concern for salmon prices in the future. In a recent comment, Johnny Carroll, a prominent fish farmer, said that if prices remain chronically low into 2004 it will lead to a revenue blockage for most producers in the long term.