Vol. 464 No. 4
27 Mr. Clohessy asked the Minister for the Marine in view of his expressed concern for the safety of life at sea, if he will immediately correct the imbalance in allocation of Structural Funds whereby the modernisation grant for a fishing vessel totals 30 per cent of cost, whereas modernisation-upgrading of a processing plant totals 50 per cent of cost. [8207/96]
The rates of aid under the Fisheries Operational Programme were set in mid-1994. The rate then set for EU grants for fishing vessel modernisation is 30 per cent which, allowing for a 5 per cent national grant gives a total grant of 35 per cent.
The rate set for EU grants for new fish processing developments is 35 per cent which allowing for a 5 per cent national grant gives a total rate of 40 per cent. The rate set for EU grants for aquaculture investment is 35 per cent which allowing for a 5 per cent national grant gives a total rate of 40 per cent.
These rates were set by reference to a range of factors and priorities, including the total funds available, employment and other considerations. While these rates are subject to ongoing review. I am not aware of any analysis that suggests these rates are a constraint on investment either in modernisation, fish processing or aquaculture. On the contrary the demand for grants exceeds the resources available at the moment, so that any increase in the rates of aid would reduce the number of projects which could be aided.
As regards the special scheme and the total rate of aid of 50 per cent for the upgrading of fish processing premises, I should point out that under EU law all fish processing plants had to be upgraded to high standards in a short timeframe or be faced with closing down, putting a large volume of employment at risk.
On the matter of safety and the modernisation of fishing vessels, some 131 modernisation projects have been approved under the present programme and over 90 per cent of these have a high safety element. That is an ongoing programme and all new applications will be considered on their merits.
As the Deputy will be aware, I have established a high level committee on fishing vessel safety which is reviewing all matters relevant to that subject. I will consider very carefully any recommendations it may make on the modernisation of fishing vessel grants scheme.
Is the regulation concerning a grant of 35 per cent made by the EU or by the Government?
In this case, when the Operational Programme was agreed in 1994, prior to our party being in Government, the then Government set the rate. It set these priorities in accordance with policy guidelines. The real problem is a lack of adequate moneys. If we had more money for this area we would certainly be able to help more people. We intend seeking additional funds for the marine in reviewing the operational programme at the end of 1996.
