Written answers

Tuesday, 12 October 2004

Department of Communications, Energy and Natural Resources

Fishing Fleet Modernisation

9:00 pm

Photo of John DeasyJohn Deasy (Waterford, Fine Gael)
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Question 188: To ask the Minister for Communications, Marine and Natural Resources if the current grant scheme put in place to assist fishermen with smaller vessels is adequate to cover the cost of the required safety equipment; and if the grant aid levels will be increased to assist those fishermen who operate smaller vessels. [24301/04]

Photo of Noel DempseyNoel Dempsey (Meath, Fianna Fail)
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The EU common Fisheries policy review, which was adopted by the Fisheries Council in the form of a framework regulation in December 2002, sets out new provisions in respect of State financial aid towards vessels which fish on a commercial basis. These rules apply to all fishing vessels engaged in commercial fishing, including small vessels under 20 feet. The rules provide that a member state wishing to provide grant aid towards vessel renewal or modernisation involving increases in capacity in terms of tonnage or power or increased effectiveness of fishing gear in the period from 1 January 2003 to 31 December 2004 would have to deliver a 3% reduction in the capacity limits for its overall national fleet. Such aid is completely precluded from 1 January 2005.

The 3% penalty imposed for the continuation of grant aid to 31 December 2004 would involve, for the Irish fleet, the permanent removal of 2,496 GTs and 6,478 KWs. The level of the reduction that would be required is very substantial. In these circumstances, it was decided that the State would not enter into any grant aid for fleet renewal and modernisation after 1 January 2003. This policy is regarded as a cornerstone of the reform of the common fisheries policy by the Commission and it has not proposed any change in this policy in the proposals for aid for the fisheries sector for the period 2007 to 2013 which were published in July 2004.

EU fisheries policy provides for the grant aiding of fishing vessels for works that do not concern capacity in terms of tonnage or of power. A grant aid scheme to support the purchase of safety equipment for fishing vessels including vessels which have been granted a fishing boat licence offer under the special scheme for the licensing of small fishing boats which have a record of active commercial pot fishing, is being administered by BIM. This grant scheme covers essential equipment including lifesaving, fire fighting, navigation and occupational safety. The grant aid is paid at 40% of eligible cost, 5% State aid and 35% EU aid subject to maximum permitted levels of expenditure based on the normal commercial per item cost of such equipment. Expenditure eligible for public aid may not exceed the percentages laid down above under EU rules. It is not, therefore, open to me to increase the grant aid level.

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