Vol. 464 No. 4
5 Mr. M. Smith asked the Minister for the Marine the current position in relation to the renewal of Ireland's fishing fleet; the incentives, if any, available to fishermen; and if he will make a statement on the matter. [8367/96]
Funding for renewal and modernisation of the fishing fleet is provided under the Operational Programme for Fisheries 1994-1999 with over £11 million of EU and Exchequer aid available to support total investment of some £31 million over the period. Under the operational programme, grants for modernisation are provided at a rate of 35 per cent of the eligible cost, which includes an Exchequer grant of 5 per cent.
To date, 131 vessel modernisation projects have been approved for grant-aid of just over £4 million under the operational programme representing a total investment of over £15 million. Up to £6 million has also been made available under the decommissioning scheme and 60 fishing vessel owners have applied for premia to decommission their boats. A good take up will assist in the achievement of our mandatory EU fleet targets by end 1996 and will also help to improve the overall age profile of the fleet.
The investment support strategy under the operational programme is designed to improve the efficiency, safety and age profile of the fleet in conformity with our mandatory EU fleet targets. The good take up to date of available incentives for modernisation of existing vessels is contributing to those objectives.
I have asked the Department to review from all relevant perspectives the future directions of fleet policy, including the relative socio-economic and commercial merits of the introduction of new vessels into the fleet. In that context full consideration will be given to all the relevant factors, including the economics of realising available fishing opportunities, ongoing EU fleet policy to address the overcapacity problem in the EU fleet overall and the outcome of the Review Group on Fishing Vessel Safety.
Does the Minister agree that we have the highest input costs and the lowest output revenues because of the age of the fishing fleet? Does he accept that under the existing scheme, welcome though it is, a number of vessels over the age limit are excluded from the refurbishment programme? It is my information that the funding required to bring many of them up to standard would not be considerable. This would facilitate those excluded from the scheme. Will the necessity to deal with this essential aspect be taken into account in the review?
I do not agree that our boats are way over the age limit compared to other states. It would be ideal if we could modernise the fleet, but the reality is that the previous Government, of which the Deputy was a member, reduced the amount originally requested for fleet modernisation and renewal to a miserable £11 million. I have to operate within the moneys allocated until such time as the operational programme comes up for review later this year.
I do not want to see any fisherman going to sea in a boat that is unsafe. The modernisation grants given to date have helped considerably in improving the safety and efficiency of the fishing fleet. I am committed to reviewing in full the possibilities of assisting the fleet to modernise existing vessels and facilitate the entry of new ones.
No public representative could stand up and say that they were happy with every single vessel in the fishing fleet, but we are contributing towards its modernisation. We have approved 131 projects to date for grant aid of just over £4 million, representing a total investment of £15 million. Until such time as we have an opportunity of reviewing overall policy strategy, particularly for the white fish sector about which I have concerns, and receive the report of the Review Group on Fishing Vessels Safety, due at the end of May, I will endeavour to do whatever I can to assist the industry in improving its efficiency, effectiveness and safety.
The average investment in respect of the 131 vessels assisted to date is £116,500 per vessel. This is a substantial sum. I would not like the message to go out from this House that everybody is going to sea in an unsafe boat to do what I regard as a very difficult job. That is not the case. There is, however, always room for major improvement. I intend to try to secure it.
Does the Minister agree that £116,000, the average investment, is a relatively small amount compared to the cost of renewal which in many cases runs into many millions of pounds per vessel and that it is good practice to ensure that the maximum number are brought up to standard for operational and safety reasons? I do not accept that we do not have an ageing fleet. All the information available shows that the average age is between 25 and 35 and that we have purchased a considerable number of cast-offs from other European countries. This has to be addressed as a matter of urgency. Will the Minister give those involved in this tough, hazardous and rigorous occupation, who are unable to compete because their boats are above the age limit, some hope that it will be addressed as part of the review?
I will give them hope and whatever assistance I can. With the greatest of respect, this problem did not suddenly arise in the past 14 months. The Deputy's party had an opportunity to do something about it when in office for eight years.
I have not sought to blame the Minister yet.
It is beyond me why the Government of which the Deputy was a member reduced the sum sought by the Department under the operational programme for modernisation and renewal of the fishing fleet to a miserable £11 million over a five-year period. I have to operate within this sum until such time as the operational programme comes up for mid-term review at the end of this year. I will not try to defend a situation where the age of the fleet is not what it should be, but in the meantime I will take every possible step and provide every encouragement to assist those involved in the sector to do their job better and in a safer way.
At the end of the day, it is all about money. I am examining ways and means of doing it other than by providing grants.
As regards the decommissioning scheme and the fact that the strenuous nature of the occupation requires those engaged in it to retire at or before the age of 50, has the Minister considered ways to supplement their income between that and the normal retirement age?
The decommissioning scheme assists in removing old vessels and reducing the overall European fleet capacity. The PESCA scheme is designed to help those leaving that sector and starting another business on shore. I sought additional funds for the scheme from a special fund in Europe. There are employment prospects in aquaculture and in fish processing. I was misunderstood before when I said that there are 1,300 white fish boats in the fleet and their catch could be caught by 50 modern white fish vessels.
In less hazardous conditions.
That is correct. However, every time we modernise or replace vessels people are put out of business. We must take account of the socio-economic effects on regions where it is difficult to get employment and try to assist people to move into different areas of employment, perhaps in the fishing sector but not necessarily at sea. We must strike a balance. There is need for debate on the issue. If I invest millions of pounds on a new boat I must catch a lot of fish to repay my investment. I must be guaranteed markets and prices. It is not as simple as replacing one boat with another. I am anxious to address the matter, particularly in areas where employment opportunities are limited. We must ensure other schemes are put in place so that those leaving the sea will have an opportunity to make a living on shore and so remain in their own areas.
