Charlie McConalogue (Donegal, Fianna Fail)
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Recognising the significant impact of the TCA on the Irish Seafood Sector, I established the Seafood Task force in March 2021 to examine the implications arising from the EU/UK TCA for the Irish Fishing industry and coastal communities particularly dependent upon it. The Task force was asked to outline initiatives that could be taken to provide supports for development and restructuring so as to ensure a profitable and sustainable fleet and to identify opportunities for jobs and economic activity in coastal communities. The Fish Processor Transition Scheme reflects one such initiative.

In developing this scheme, my Department was required to seek State Aid approval from the European Commission. This process commenced earlier this year. Initially, the scheme baseline was proposed with reference to a single year (2019), in line with the Report of the Sea Food Task Force. However the proposed scheme reference year was challenged in relation to compliance with the provisions of the Guidelines for State aid in the fishery and aquaculture sector (2023/C 107/01) regarding the calculation of compensation (i.e. a reference period based on a three-year average). There was a significant risk that a negative State Aid decision would issue if my Department persisted with retaining a single year reference period in the scheme. Had that happened, the scheme could not have been implemented and there would have been no liquidity funding available for processors.

In order to progress the scheme and achieve state aid approval in a time-frame that was compatible with the deadlines in the Brexit Adjustment Reserve (BAR) regulation, my Department proposed to amend the scheme to calculate losses by reference to a three-year average baseline, and I approved this change in September as my concern was to ensure that a positive State Aid decision was received in time to implement the scheme within the time available.

State Aid approval was subsequently granted on the basis of a three-year average baseline. Any change to the eligibility criteria now would require an amendment to the scheme, and this in turn would require an amended State Aid decision, which may take up to two months to decide. Spending under this scheme must be approved and spent by 31 December 2023, as set out in the BAR Regulation.

My Department continues to work closely with BIM to ensure that the scheme addresses the losses incurred by the Irish seafood processing sector as a consequence of the reduced supply of species directly impacted by quota reductions, in particular losses related to those quota species specifically affected by the TCA.