John Perry (Sligo-Leitrim, Fine Gael)
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Question 161: To ask the Minister for Communications, Marine and Natural Resources his plans to help ease the rising cost of diesel for fishermen; if help will be given to fishing organisations to liaise with financial institutions to ascertain whether schemes utilised in other EU member states can be applied here; and if he will make a statement on the matter. [20256/05]

Pat Gallagher (Donegal South West, Fianna Fail)
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The escalation of fuel costs, as a result of global economic and political conditions, remains a matter of concern for all sectors of industry, including the fishing industry. It is important to note that the fishing industry, in Ireland and throughout the European Union, already receives favourable treatment in the form of a full rebate on excise and VAT on marine fuel, if the enterprise concerned is registered for VAT.

In terms of assistance to fishermen to ease this problem, there are strict EU rules in relation to public aid which state:

State aid which is granted without imposing any obligation serving the objectives of the Common Fisheries Policy on the part of the recipients . . . and which has the effect of reducing the recipient's production costs or improving the recipient's income is, as operating aid, incompatible with the common market. The Commission intends to apply this rule with rigour to all operating aid, including aid in forms of tax relief, or of reductions of contributions to social security or to unemployment benefit systems.

Accordingly, the question of compensation to offset the costs arising from the increase in fuel prices does not arise.

This impact of high fuel costs on the fishing industry is to be discussed at next week's EU Fisheries Council in Luxembourg and I am prepared to support any Community initiative to alleviate the situation for fishermen. I will continue to keep the situation closely monitored and consider any proposals from industry that are compatible with the State aid rules.