Timmy Dooley (Clare, Fianna Fail) | Oireachtas source

I welcome the opportunity to talk to Senators today about this really important issue. As Senators know, the Government recognises the exceptional pressure that rising fuel costs are placing on our farmers, contractors, and fishermen and fisherwomen around the coastline. I have heard it from fishermen and fisherwomen from all coastal areas of the country and in my ongoing engagements with all our seafood representative bodies in recent weeks. I have done my best to get around to as many of the areas as I can and meet widely with the main stakeholders.

Marine gas oil has risen dramatically in price over the past months and at points has been more than double the price of the same period last year. We all know the fuel-intensive nature of the activities we are talking about, particularly in the fishing sector and how impactful that is on the lives and livelihoods in the pursuit of fishing and the impact it has on the coastal communities and the people who are employed in it.

Prior to the current situation fishermen were paying around 55 cent to 60 cent per litre net of VAT and duty for marine diesel. The prices being quoted in March ranged from €1.25 to €1.46, representing a doubling or more in price. We see again today crude oil prices being at their highest in a very long time. There is no obvious end in sight in the short term to the effective blockade in the Strait of Hormuz and the impact that is continuing to have. It is not as if this is about to resolve itself in the days ahead.

This is at a time of year where fishing effort increases due to the seasonal nature of our fisheries and the weather improvements have made it safer to fish.With fuel prices at their peak, however, it was not viable for fishermen and fisherwomen to go to sea. When boat owners decide to tie up, there are the obvious direct impacts on the supply of fresh fish and, unfortunately, there are no payments to crew. There is also an impact on the processing sector and the people it employs.

Ireland's fishing fleet utilises approximately 75 million litres of fuel annually. The largest consumers in the fleet are the offshore vessels. However, fuel consumption per vessel varies widely depending on size, gear and type of fishing activity undertaken. A current example is an average 18 m to 24 m polyvalent vessel fishing for whitefish and prawns, which burns 25, 000 to 30,000 litres of fuel per month. We can imagine the negative impact of the doubling of that price and the non-viable nature of the activity as a result.

The Irish fleet has two main groupings, the first of which is those that operate offshore and which travel further and spend longer at sea. Some of these process at sea and require energy to do so, which is fuelled by marine gas oil. Additionally, there are approximately 800 active inshore vessels. There are probably 1,800 in total, but we reckon about 800 vessels are active. These vessels operate near the shore, do not spend multiple days at sea and purchase their fuel predominantly at pump prices, similar to farmers. These smaller vessels also use a mix of petrol and diesel in their engines. This is referred to as the inshore sector and it is one I have a particular regard for. It is facing significant challenges and I want to assist and help the sector in every way I can. The Government will do so when it announces the scheme and all the characteristics and details of it.

This current crisis exposes the vulnerability of the fishing industry to fuel price volatility. In 2021, the Irish fleet consumed 76 million litres of fuel, representing 12% of input costs. In 2023, the fleet consumed 63 million litres of fuel, and this represented about 19% of input costs. At the current prices, however, fuel is now accounting for approximately 30% of input costs, which is unsustainable. It is a very challenging situation. Last week, I attended the Seafood Expo Global in Barcelona, which is one of the biggest seafood sales opportunities in the world and takes place annually. I met the 20 Irish processors there under the Bord Bia Origin Green label. They were reporting strong demand for Irish products. Obviously, there is a reduction in available stocks. Irish stock is very well regarded internationally and prices are up a little bit. That is some help but it in no way overcomes the massive increase in oil prices. This is why we have to intervene significantly to assist this important sector in the months ahead.

The measures introduced by the Government in March 2026, which provided for temporary reductions in the rates of mineral oil tax, MOT, applying to petrol, auto diesel and marked gas oil, MGO, until 31 May 2026, provided some relief for a small number of inshore fishers who purchase their fuel from the pumps. However, the majority of fuel used by the Irish fishing fleet is marine gas oil, which attracts commercial sea navigation relief. This is why the substantial package of support across a number of sectors, including fisheries and aquaculture, is most welcome and most necessary.

The Minister, Deputy Heydon, has already addressed the House on the full removal of all non-carbon excise on green diesel, of 7.4 cent per litre, and a further payment which will provide supports equivalent to 20 cent per litre through a €100-million fuel support scheme. These supports, when taken together, total 27.4 cent per litre and exceed by nearly 6 cent per litre the entirety of excise, carbon and non-carbon, charged on green diesel prior to the conflict in the Middle East. That would have represented almost 22 cent per litre. This means there has been a significant investment by the State above what it takes already from green diesel.

This will benefit both farmers and contractors, recognising their central role in sustaining essential agrifood production. It is equally important that we also support our sea fisheries and aquaculture sectors as primary producers. It is the same principle: when input costs rise, it puts pressure on the price and availability of food for all consumers. I know there has been some negative comments in other sectors that suggest this is a bailout for the agriculture, contracting, haulage and fishing sectors. This could not be further from the truth. What the Government is trying to do here is to relieve the pressure on primary food production and transportation to our stores. It is aimed at those who consume food. It is aimed at ensuring, insofar as we can, that the price of food does not escalate in line with the increasing costs of energy.

The Government has allocated €15 million of the €100 million to the fisheries and aquaculture sector in supports. The targeted support package for fisheries and aquaculture will be based on previous usage and will ensure that those most exposed to the increased fuel prices will receive meaningful assistance at this critical time of year. Our Department is finalising details of a scheme which will ensure funding is delivered as soon as possible and, where it is needed, to sustain essential food production and coastal economic activity. I will announce details of the scheme shortly.

As with all schemes, there will be eligibility criteria, including, but not limited to, being on the Irish fishing boat register, holding an up-to-date sea fishing boat licence, holding valid crew safety cards, etc. Receipts for relevant fuel and minimum verifiable fishing day activity or sales notes or both to a minimum set amount will also be required to support a claim. It will be based on the activity using oil purchased in 2025, during those critical months of March to July. The scheme will be operated on behalf of our Department by Bord lascaigh Mhara, BIM, which handles most payments in this regard. Payments will be made through a single application process, with funding capped at €15 million for the five months that have been identified from March to July. Timelines will be carefully managed to ensure delivery of these supports as soon as possible.

Liquidity and cash flow may arise as issues in the coming months and the Minister, Deputy Heydon, informed the House last week that he has written to the main banking institutions asking them to show forbearance with the agrifood and fisheries sector where cash flow issues are emerging and to continue to support these sectors during periods of financial pressure with access to the appropriate levels of short-term finance. I support this approach and, of course, I will meet the main banks to explain to them where things are at from the fisheries perspective.