Written answers

Wednesday, 2 April 2008

Department of Agriculture and Food

Fuel Subsidies

9:00 pm

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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Question 651: To ask the Minister for Agriculture, Fisheries and Food if Spanish and French fishermen are in receipt of a fuel subsidy from the Spanish or French authorities; and if she will make a statement on the matter. [12044/08]

Photo of Mary CoughlanMary Coughlan (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. It is important to note that the fishing industry in Ireland 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.

Fuel subsidies, in terms of operating aid for fishing vessels, are not permitted under EU State Aid rules and any such measures introduced by EU Member States would be in breach of EU law and subject to Infringement proceedings in the European Court of Justice. It is understood that previous measures taken by France in relation to support to offset the difficulties faced by its industry arising from high fuel prices are the subject of infringement proceedings in the European Court.

Within the EU State Aid rules and the funding available to each, it is a matter for each Member State to put in place measures to support and develop the fishing industry. I understand that the main measures now being put in place by France include a tax on fishery products at the market place to fund the development and restructuring plan for the fishing sector. We have written to my French and Spanish colleagues to get more details about their plans.

Under the National Development Plan 2007-2013, the Irish seafood industry will benefit from funding of €216 million. A further €216 million may be made available on the basis of verified progressive change in the industry as set out in the national strategy for the seafood industry — Steering a New Course. I believe that the most critical element in addressing the impact of high fuel prices is to make the fleet more profitable.

The planned reduction in the size of the fishing fleet, through a decommissioning scheme which I launched in February, will increase the profitability of the vessels that continue to fish because they will be permitted to land higher quantities of quota stocks. Funding under the NDP will also focus on increasing returns to fishermen through maximising the value of seafood at every stage from the sea to the table.

I also consider that considerable research activity is required in order to identify the most fuel efficient equipment and practices and I will be pushing strongly for this area to be prioritised under the EU's Seventh Framework Programme for Research (2007-2013). At present, Bord Iascaigh Mhara is making grant aid available to improve fuel efficiency on board fishing vessels. I will keep this scheme under review to ensure that it covers best practice in the context of available research in the area.

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