Tom Sheahan (Kerry South, Fine Gael)
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Question 362: To ask the Minister for Agriculture, Fisheries and Food if he will set up a task force to address the short, medium and long-term options for fishermen to negate the effect of record fuel prices. [19569/08]

Brendan Smith (Cavan-Monaghan, 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. In addition Bord Iascaigh Mhara (BIM) is making grant aid available to improve fuel efficiency on board fishing vessels. 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.

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. Under the National Development Plan 2007-2013, the Irish seafood industry will benefit from funding of €216m. A further €118m 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 the Whitefish decommissioning scheme 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.

I will continue to ensure that priority will be given to the delivery of the national strategy for the seafood industry — Steering a New Course (the Cawley report). I do not consider that the establishment of a specific task force in this area would deliver any additional benefits.