Written answers
Tuesday, 23 July 2024
Department of Agriculture, Food and the Marine
Aquaculture Industry
Pádraig Mac Lochlainn (Donegal, Sinn Fein)
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1717.To ask the Minister for Agriculture, Food and the Marine if he has had any talks with the Minister for Enterprise, Trade and Employment with a view to introducing increased cost-of-business supports for the aquaculture industry, given the significant increase in input costs over the past two years aligned with increased production losses; to provide any costings developed on introducing such a scheme; and if he will make a statement on the matter. [33485/24]
Charlie McConalogue (Donegal, Fianna Fail)
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The €258m European Maritime, Fisheries and Aquaculture Fund (EMFAF) 2021-2027, co-funded by the Irish government and the EU, is the primary funding package for the seafood sector, including aquaculture. EMFAF is managed by my Department.
I recently announced the opening of a new scheme under our EMFAF Operational Programme to support capital investment in aquaculture - the Sustainable Aquaculture Scheme. This scheme will provide grant-aid to eligible aquaculture operators, with support rates of up to 50% for a number of project types, including:
- productive investments for sustainable aquaculture,
- development of product innovation (including Integrated Multi-trophic Aquaculture, seaweeds and new species),
- investment in reduction of energy use and energy efficiency,
- investment in renewable energy systems,
- investments in safety equipment,
- investment in animal health and welfare and food quality and hygiene safety.
BIM also provides a range of other support and advisory services to aquaculture producers, who also have access to finance under schemes implemented by the Strategic Banking Corporation of Ireland (SBCI).
The new EMFAF scheme follows on from a similar scheme that was in place under the previous programme, the European Maritime and Fisheries Fund (EMFF). My Department also put additional supports in place to help the aquaculture industry deal with challenges resulting from the Covid-19 pandemic and Brexit.
The Covid-19 Aquaculture Support Scheme, funded under the EMFF, provided a total of €1,248,000 in direct payments to 154 aquaculture operators for the lost sales or production caused by the pandemic.
In response to the significant challenges faced by the seafood sector as a result of Brexit, my department implemented a Sustainable Aquaculture Growth Scheme in 2022 and 2023, under which €4,309,980 in direct supports was paid to aquaculture operators. This scheme was funded under the Brexit Adjustment Reserve Fund (BAR).
All supports put in place under EMFAF must be in compliance with the EU Regulation, which does not make provision for Member States to use EMFAF funding to provide aid in respect of increased costs or production losses, save in exceptional and limited circumstances under Article 26(2). Currently there is no Commission Implementing Decision in place, as required under Article 26(2), that would allow any such aid to be provided under EMFAF.
The Minister for Enterprise, Trade and Employment and I have not had talks regarding the aquaculture industry, any such discussion could and would relate only to supports outside of the EMFAF programme. Were consideration to be given to implementing supports separately to the EMFAF programme, a separate and additional budget would need to be allocated for this, and any proposed exchequer funded support scheme would still be subject to the EU State Aid Regulations governing the fisheries and aquaculture sector.
I continue to be aware of the challenges faced by the aquaculture industry due to rising costs and other challenges. Preparatory work to progress the implementation of The National Strategic Plan for Sustainable Aquaculture Development has begun. The implementation of this Strategy will provide a framework for engagement with the sector and an opportunity to identify and put in place measures to support the sustainable and continued development of this important sector over the coming years.
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