Some 60 fishing vessel owners applied for decommissioning premia under the national scheme established last year. The closing date for receipt of applications was 31 October 1995. The applications represent a total capacity of nearly 3,000 tonnes, widely spread around the coastal regions, and a good take up will assist in the achievement of our mandatory EU fleet targets by end 1996.
The differential tonnage premia set under the scheme are in line with EU regulation 3699/93 which requires member states to apply pro rata scales and rates of assistance by age category up to a maximum level of premium. The national rates were determined also by reference to available funding as well as the relative market value of vessels in the various age categories. Even allowing for the relatively buoyant market for privately sold tonnage at present, it is expected that actual take up by approved applicants under the scheme will be largely in line with targets. The position will continue to be kept under close review by the Department and BIM up to the 31 May deadline for actual decommissioning of boats and payment of premia.
The case by case impact of taxation on payments will depend on the financial circumstances of individual beneficiaries. In reviewing taxation issues at the time of drawing up the scheme, and with a view to assisting and encouraging potential applicants, a concession was negotiated which allows for the spreading of tax liability, if any, over a three year period.
While the scheme allows for consideration of a dumping at sea permit in very exceptional circumstances the technical advice was and remains that the scuttling of decommissioned fishing boats could pose significant risks to the marine environment and to maritime safety and should not be encouraged.
