asked the Minister for the Marine the reason for the withdrawal of the interest subsidy on loans for fishing vessels which was introduced for three years from July 1985 to June 1988; and, in view of the undertaking given by the Coalition Government to fishermen, if he will immediately restore the subsidies.
Ceisteanna—Questions. Oral Answers. - Fishing Vessels Subsidy.
19.
As the Deputy is aware, the serious budgetary difficulties confronting the State require the imposition of quite significant reductions in public sector expenditure. In these circumstances it would be totally unrealistic to expect that Exchequer assistance to the fishing industry could be exempted entirely from such measures. Accordingly, it has been necessary to terminate the interest subsidy scheme some nine months earlier than originally planned.
While I can appreciate the concerns expressed by fishing interests, I think it is important to stress that the Government, in taking this decision, were mindful of the improved operating climate in the industry generally in recent times arising from the introduction of total remission of excise duty on fuel oil used in commercial sea fishing, further reductions in the market price of oil, the better all round prices obtaining for fishermen's catches and the fall in bank interest rates. Bearing in mind the financial curtailments of every Government at present, the fishing industry is doing quite well.
Does the Minister accept, bearing in mind what he has just said, that he is in effect reneging on a commitment of the previous Government given in June 1985 to the fishermen? Will he also accept that this is not normal convention. Normally any Government will respect a commitment given by previous Governments. Will the Minister also indicate whether, in the unlikely event of interest rates increasing again, particularly with the worry about the stock market situation at the moment, he will be in a position to reintroduce this subsidy between now and July which was the time limit envisaged by the previous Government?
The commitment given was subject to the availability of finances at the time. Dealing with hypothetical questions such as whether or not interest rates will go up is not a matter for now. The fishing industry has improved significantly, prices have improved substantially, fuel oil prices have declined and the industry is generally thriving under this administration.