Seanad debates
Thursday, 30 April 2026
Fuel Supports for the Fishing Industry: Statements
2:00 am
Garret Kelleher (Fine Gael)
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I welcome the Minister of State, Deputy Timmy Dooley, to the Seanad. The Minister of State has eight minutes for his contribution after which group spokespersons will have ten minutes each. I will call on the Minister of State no later than 12.53 p.m. to reply to the debate.
Timmy Dooley (Clare, Fianna Fail)
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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.
Garret Kelleher (Fine Gael)
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Gabhaim buíochas leis an Aire Stáit. Sula leanfaimid ar aghaidh, cuirfidh mé fáilte roimh ár gcuairteoirí ó Charraig Uí Leighin, Contae Chorcaí. I welcome the students from the Edmund Rice College, Carrigaline, to the Seanad. They are guests of Deputy Séamus McGrath. They are very welcome.
Noel O'Donovan (Fine Gael)
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I thank the Minister of State for being here. I also welcome the students from County Cork. It is always good to see Cork people in the Chamber.
I am substituting for my colleague, Senator Manus Boyle, today. They are big shoes to fill, but I will address some of his thoughts on this matter. At the outset, I commend the Minister of State and the Minister, Deputy Heydon, on their roles in bringing forward these fuel subsidies for fishing, commercial and inshore, and for all sectors, including farming, transport and forestry.
Undoubtedly, we are living in very challenging times. Economic structures have been shaken ever since the war in the Gulf, with threats of tariffs and the unpredictable behaviour of people in high office in our neighbouring countries. The war in the Gulf, of course, has created untold damage to businesses around the country, with the cost of oil and fuel reaching record highs.
Businesses in my county are struggling daily and, in some cases, parking machinery and vehicles when they can to save on costs. Most people who know the fishing industry will be aware that most pelagic trawlers are tied to the piers at this time of the year, due mainly to the lack of quota and fishing opportunities. However, I must also say that when the fishing season ends, the work and maintenance must start on these same vessels. Some of the larger vessels must travel to foreign ports, where dry-dock facilities and skilled engineers are available. It could take seven to eight days to reach ports like Bergen, in Norway, and Skagen, incurring the now even more substantial costs of fuel to get there and back. In Killybegs, we have world-class engineering facilities that are recognised globally. These companies are crying out for work due to the downturn in fishing activity, and, in most cases, have had to reduce their staffing numbers. All we need are suitable facilities to be able to dry-dock these larger vessels and keep the skills and substantial revenue generated in Ireland.
I know I am slightly off topic but I would like consideration to be given to this subject in future. We need to keep our skilled engineers and those businesses supported by any means, especially when we have a viable solution. Service industries around fishing communities were founded on necessity and without them, the industry could not remain functioning. This is why, once again, I call for consideration when it comes to support for these businesses in future.I welcome the fuel subsidies and the support for the fishing vessels along with the other sectors benefiting from the package. Like Senators Boyle and Duffy, I recently spoke in this House on the need to extend this support. We are especially grateful that the inshore fishermen and women, as well as the ferry companies which play a vital role in moving passengers and freight to and from our islands, have been included in these much-needed supports. I know the last few weeks have been extremely difficult for the Government. I believe that in time, we will see that the correct choices have been made and that challenges and the unpredictability we face as a country have steered this package for what it is – the best outcome for an unpredictable forecast.
I will touch briefly on the inshore sector. I welcome the Minister of State's comments that his intention is to fully support the sector to be sustainable and viable going forward. There was mention long before this fuel crisis of a long-term stabilisation payment. I know the task force will look at that issue as part of its ongoing work. It is something on which our minds should be focused at the moment. It is not just about stability today and supporting today. They were in crisis long before the crisis we have seen in recent weeks. The Minister of State spoke about 800 boats actively fishing around our shores. These are people protecting our shores. This is their daily work. This support is not about giving money for no reason – there is also the protection of our habitats and there is other work these fishermen would like to do. I want to mention that today too.
The Minister of State mentioned the fuel that these inshore boats use. They have small, outboard petrol engines. Prior to today, they had an issue around claiming back VAT on petrol. That is an issue that needs to be taken into account as well. I would welcome the Minister of State’s clarity on whether this fuel scheme will support those types of fishermen and whether it might be looked at in future outside the fuel crisis. They are buying it from pumps but cannot claim back VAT as bigger boats can.
As ever, I thank the Minister of State for his work and that of the Minister, Deputy Heydon and the leadership they are taking in supporting the fishermen. We saw the protests some weeks ago. Many sectors felt they were not being listened to as well as others. Fishermen and fisherwomen have been engaging with the Government in recent months and years and have seen the Government’s care towards the industry. They stuck with the process and kept engaging. That is why we have the support here. For fishermen and all sectors of society, this is the Government listening to the primary producers of food. I welcome these supports and thank the Minister of State for his engagement as always.
Diarmuid Wilson (Fianna Fail)
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I welcome the Minister of State back to the House on this very important issue. Like my colleague, Senator O’Donovan, I have to apologise on behalf of our spokesperson, Senator Niall Blaney, who is at another political event and cannot be here. He asked me to put a few points on the record, which I will do to the best of my ability.
First, he wants to welcome the fact that the Government has put in place a €100 million fuel support scheme to assist farmers, agriculture contractors and fishers who are facing unprecedented increases in fuel costs. The scheme, as the Minister of State outlined in his contribution, has been tailored to the specific needs of the fisheries and aquaculture sector and will be operated by Bord Iascaigh Mhara on behalf of the Minister of State and the Department of Agriculture, Food and the Marine.
In a moment, I will put on the record a few points that Senator Blaney wanted to make about Deputy Dooley’s work since he became Minister of State. Before doing so, it is important to note that I have been in contact with a number of individuals in relation to this particular difficulty within the fishing industry. They are happy so far with the negotiations even though a final announcement has not yet been made. I understand they are happy with the direction in which the negotiations are going. I want to point out that this the first time there has been a targeted fuel rebate for fishermen and fisherwomen, something that should be acknowledged and appreciated by us here in this House. The Minister of State anticipates that the scheme will commence in May. He is talking about covering a period from now until September or October. I hope there will be no delay in the payments being made to these people who very much need them. I ask the Minister of State to say something about the paperwork involved, which can be off-putting sometimes. He mentioned it would be based on last year’s consumption. How will that be proven by the applicant?
Senator Blaney is anxious to put on the record his thanks to the Minister of State for his work on the mackerel quota, which secured an additional 8,000 tonnes of mackerel for this country. It is a very important result for Ireland’s fishing sector at a time when it is very much needed. It means a significant increase in fishing opportunities worth over €30 million that will directly support our pelagic fleet, our processing sector and the many coastal communities that depend on them. Senator Blaney went on to list many of Deputy Dooley's other achievements since becoming Minister of State but I know he is a modest man and we will have another day to acknowledge that. The other thing he is anxious to put on record is the importance of the inshore fisheries, as my colleague outlined. They are just as much a priority and that needs to be maintained.
I very much welcome the Minister of State to the House. I thank him for the work he has done to date for this particular sector but also the work he has done in relation to the €750 million overall package that has been put in place.
Joanne Collins (Sinn Fein)
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I welcome the Minister of State. He seems to be spending as much time here this week as I do.
Timmy Dooley (Clare, Fianna Fail)
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I have spent a lot of time here over the years.
Joanne Collins (Sinn Fein)
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We saw the Government come out finally yesterday and announce the fuel support scheme for all sectors – agriculture, transport and fishing. While the support is welcome, we have to be honest: the fishing industry still feels it is too little too late. There is a scheme of €15 million for the fishers which will be administered by BIM but fishers are still contacting me saying they do not know how much they will receive and how it will be calculated. There is a lot of uncertainty around it. I am not sure if it is just late going out from the Department or if they have not been fed through yet but it would be nice for them to get the exact details.
The reality is that the fishing industry has not just been hit by a short-term fuel crisis; it has been systemically eroded over years. Communities across our coasts have seen quota after quota stripped away. We have seen devastating EU deals which have slashed catch limits, putting jobs and livelihoods at risk and hollowing out our coastal communities. Time and time again, when decisions are made in Europe or at home, the fishing industry and sector is treated like an afterthought.
To be clear, fuel is not an optional extra for fishing. It is one of the biggest operating costs that a vessel has. Without meaningful supports, boats simply cannot go out. When boats do not go out, incomes collapse, crews are lost and coastal communities suffer. What was announced yesterday acknowledges the pressure but does it meet the actual crisis that is here today? If this Government is serious about backing the fishing industry, it must go further. That means clarity, immediacy and, above all, fairness because our fishing communities deserve more and not to be seen as an afterthought. They deserve to see the future that they are building across all our coastal communities.
I will not take a huge amount of time but I will say that when I was in Foynes for the week, every single protester I met - haulage drivers, contractors and building contractors - wanted a reduction for everyone. They were not just there for themselves. I know this is about fishing but I want to add this. Yes, they are happy the industry is getting the supports but I have received a lot of phone calls from crane drivers and lorry drivers. They said it is great that their business or the business they work for is getting a support, but how will their wife fill her tank when she has to take the kids to school?They stood there for everyone. They wanted this reduction at the pumps. It was not just rebate schemes and schemes per sector; they wanted to see this across the board. Until I left Limerick county on Tuesday, I had not seen a price at a petrol pump below €2.10. I do not know if they think we are extremely rich in Limerick or something.
Joanne Collins (Sinn Fein)
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I do know prices have decreased a bit in Kerry. I may have to move county to get cheaper diesel. The prices at the pumps are not decreasing like we would have hoped.
Mark Duffy (Fine Gael)
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I thank the Minister of State for being here for this very important discussion about vital supports needed for the fisheries sector. Since taking over as Minister of State, he has inherited many challenges in the sector. I thank him and acknowledge the work he has done on behalf of the sector and the support he has given Senators right across the House and Oireachtas Members generally. It has been an incredibly difficult time for the fisheries sector. Recently, Senators O'Donovan and Boyle and I hosted a discussion on the future of fisheries in the audiovisual room. It was a very constructive meeting with contributions from every sector affected. There is great generational heritage in the coastal communities along our coastline. They have been threatened and are at risk of decline because of reductions in quotas, generational renewal, depopulation and different threats that have entered the market, whether because of Brexit or increased costs.
This most recent shock to the sector, the fuel crisis, urgently needs addressing. I welcome the proposals and the commitment to support those in need. There are about 1,400 vessels in the country. I know the Minister of State mentioned that 800 of them are active but I reiterate what has already been mentioned. First, fishermen and fisherwomen who have boats, because of the small outboard engines that they go to the local fuel station for, may not have as many receipts. Can we have a scheme that is flexible and empathetic to the practicalities of each fisherman or fisherwoman and make sure they are all catered for and we do not leave people behind? I know there needs to be rules and this needs to be black and white, but there needs to be a little bit of grey in between to make sure that everyone is covered. In 2025, some people may or may not have fished for whatever reason, so it may be in 2024 when they were more active, and this year, in the summer, they may be planning to increase activity again, for whatever reason. Again, I ask that the scope of the scheme include a bit of flexibility and understanding. Whether the black and the white of the scheme is made clear, there should be an appeals mechanism and a little bit of discretion. Perhaps the Minister of State or BIM could have discretion to make sure in particular cases that people are not left behind and that there is accommodation.
We need to support the sector. Fishermen and women feel conscious of the ongoing decline against a backdrop of increasing costs. This is a great opportunity to let them know that we have their back, support them and want to make sure the livelihoods and traditions they have passed down from generation to generation in these coastal communities are supported and protected. In my county, Mayo, I work very closely with the inshore sector to make sure those within it are accommodated and supported. I have been fighting hard for them. I thank the Minister of State for his time in listening to these conversations and our advocacy on behalf of the sector. The more fishermen work together and unite around broad supports from the Government, the better the outcome it for themselves and for us, as their representatives. I thank the Minister of State again for being here and I look forward to his reply and perhaps clarification on some of the technicalities of the conversation this afternoon.
Garret Kelleher (Fine Gael)
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Before we call the Minister of State to conclude this afternoon's debate, I acknowledge the visitors from Griffeen Community College in Dublin, who are guests of the Minister of State, Deputy Emer Higgins.
Timmy Dooley (Clare, Fianna Fail)
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I will try to go through some of the issues that were raised.
Senator O'Donovan welcomed the fuel subsidies and recognised that this had a particular impact on certain sectors. Obviously, a lot of the pelagic vessels carried out their fishing effort in January and February, with some in March. The scheme seeks to pick the point at which prices started to escalate, which is March to July. I will come back to Senator Wilson in that regard. The polyvalent and the whitefish sectors seem to have been most impacted as well as, obviously, the inshore sector. A lot of the latter's effort is on shellfish, and we are anxious to try to address that.
I know Senator O'Donovan spoke on behalf of Senator Boyle, and he made a valid point about the engineering companies and capabilities in Killybegs that have been impacted by the reduced fishing opportunities over recent years. That certainly is challenging. Not long after my appointment, I got permission, with the support of the Minister, Deputy Heydon, to take on consultant Kieran Mulvey to look at the entire sector to see how we can best address its concerns and if we can provide some State supports for the long-term viability of the fishing sector, recognising that fishing opportunities have reduced, quite frankly, due to climate change and overfishing, but also that stocks are depleted.
Senator Collins mentioned deals in Brussels and quota reductions. Quotas get reduced for a reason. It is not that somebody else gets the fish; it is that the fish are not there and, in an effort to conserve the biomass and regenerate the stocks, a conservation approach is taken. That has been challenging, particularly because of the way climate change is impacting fish in our waters, which are moving out of European waters and further north. There is good conservation work going on as well, and I am sure I will be in the House again talking about marine protected areas on the other side of the work I do on the marine environment.
I thank Senator Wilson for his comments on behalf of Senator Blaney. They are noted and recognised. He talked about a couple of things, and I know others have mentioned one of them to me as well. It is important we do not have a delay in the payments. We are finalising a scheme. We want to simplify it as best we can. We will open it up, through BIM, to the fishing operators. We know that fishermen keep good records. They have to from the perspective of their tax and for the SFPA. The scheme will be based on receipts for fuel paid, and fishers will all have that because they keep these records. They put them together at the end of the year in terms of their tax affairs as well. I want to ensure that there is some flexibility, that if somebody was not able to operate last year, for whatever reason, we would look at the activity in 2024. However, there will need to be a recognition that you need to be fishing this year, so we will have to put in place some criteria whereby somebody who finished off fishing last year and is not fishing this year does not get money, because the more anyone in that position gets, the less there is for those who are actively out there fishing. We are trying to be fair. We want the scheme to be simplified insofar as we can, we want to get money out to people who are buying fuel at record prices and we want to find supports. However, in the flexibility we will also have to be conscious that it is taxpayers' money we are spending and it needs to go to those who are impacted and try to ensure they are covered.
I take the points Senators Wilson and Blaney have raised. I will see Senator Blaney soon because I will be in Greencastle tomorrow meeting the co-op up there and fishermen generally. We believe they have the paperwork, so that will be relatively straightforward.
Senator Collins raised the point - and I take her point that she understands the issue - that this is too little to late. It is as much as we can get. I think we have a good deal for the fishermen, actually. Is it too late? I do not accept that charge because we are backdating this to March, which is when the price shock came into place, and it is onwards to July.It is certainly not too late now. I have to make sure that we get the money out quickly. It is a good deal. That is certainly the response I am getting from the fishermen.
I am also conscious that the sector is in trouble, as I think all speakers have indicated. We are challenged. That is why I wanted in the early stages to see whether we could put in some supports to protect the regional nature of the activity and the coastal communities that many of these operate in. For many of the smaller inshore fishermen, it is hand to mouth, but it is keeping a couple of processors going as well in the areas. It is keeping restaurants going and it is keeping life in these areas. It is critical to me that this trickle-down effect benefits so many.
I am also conscious of marine tourism. Marine tourism is driven by the fact that there is picturesque scenery in many of these harbours, but that picture comes at a price to the people who are fishing. They are providing the backdrop and the entertainment, if you want, and the beautiful vistas we see in many of these harbours. We are supporting those harbours as well through some funding, but those boats would not be there for the nice pictures that get taken when the marine tourism comes along without the hard work of these people who are on a viability threshold. That is certainly not encouraging the generational renewal we would want to see. I come from a small farm. I have seen how that has played out over the years and how things have improved in the agricultural sector with prices. They are stretched again, but there has been a period of reasonable stability there. We certainly can get back to that.
Senator Duffy raised some the exact same points about the necessity for flexibility and how we can manage to get funding out to them. He talked about the necessity to simplify the scheme insofar as we can and get money out to ensure that people get back doing what they are doing and fishing because we certainly do not want boats tied up when there are fish to be caught. That does keep the processors going, and it keeps people coming to restaurants in the localities as well. I thank the Senators for their interest. I hope to be in a position to have greater detail in the very near future and that BIM will be in a position to open up the scheme and we get that money out as quickly as possible.
Garret Kelleher (Fine Gael)
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Gabhaim buíochas leis an Aire Stáit agus leis na Seanadóirí ar fad a ghlac páirt sa díospóireacht. Sin deireadh leis na ráitis maidir le tacaíochtaí breosla do thionscal na hiascaireachta. Fiafróidh mé den Treoraí Gníomhach cathain a bheartaítear le suí arís.
Diarmuid Wilson (Fianna Fail)
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Next Wednesday, 6 May at 2 p.m.
Garret Kelleher (Fine Gael)
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An aontaítear leis sin? Aontaítear.