Robert Molloy
Question:13 Mr. Molloy asked the Minister for the Marine if it is proposed to introduce new incentives to facilitate the modernisation of the Irish sea fishing fleet; and if he will make a statement on the matter. [9018/97]
Other Questions. - Fishing Fleet Modernisation.
The Operational Programme for Fisheries 1994-1999 provides funding for the renewal and modernisation of the fishing fleet, with over £11 million of EU and Exchequer aid already available to support total investment of some £31 million in the fleet. To date 131 modernisation projects have been approved for over £4 million grant aid in the last two years. The good take-up of funding to date is contributing to the objectives of improving the quality, efficiency and safety of the fleet.
In addition to this existing investment support strategy, I have been giving detailed consideration to the future direction of fleet policy and, in particular, the socio-economic and commercial merits of the introduction of new vessels into the whitefish fleet. In that context I commissioned consultants last year to undertake a cost-benefit analysis of strategies and options for the renewal and restructuring of the whitefish fleet, taking account of current trends, long-term sustainability requirements and financial and socio-economic factors.
The study, which I published two weeks ago, assessed and quantified the risks associated with investment in new whitefish vessels and recommended that in all the circumstances the most prudent way forward would be to introduce a pilot scheme of grant support for a number of new whitefish vessels. I have asked the industry to revert to me with its considered response to the report as quickly as possible. I look forward to getting its views. In publishing the report, I confirmed my support for the introduction of a pilot scheme and I have since got Government approval to go ahead. The Department and BIM are progressing practical implementation of the proposal and are drawing up a detailed scheme which will be presented to the European Commission for approval. I am also pursuing the necessary additional funding for such a scheme in the context of the current mid-term review of Structural Funds on the basis that virtually all the funding currently available under the Fisheries Operational Programme will be required to deliver on the existing programme to modernise the fleet as a whole in order to meet safety, efficiency and quality objectives.
In reply to a recent Dáil question, the Minister stated that the average age of vessels in our multi-purpose fishing fleet was 31 years. In view of this, does the Minister agree that an urgent programme is required to introduce new vessels into the fleet as quickly as possible? I welcome what the Minister has said and, although I am not too clear about how extensive the benefit arising from that will be, the intention seems to be good.
Does the Minister agree that this is a matter of extreme urgency because of the age of our fishing fleet and the danger to those who are fishing in those vessels? They are competing with much larger steel-hulled trawlers owned by EU members states which are poaching our fish and threatening our fishermen, constantly endangering their lives. There are numerous reasons why this State should make a much greater investment in modernising its fishing fleet to achieve a greater return from the value of our own stocks and from the employment that would be available from an expanded fishing industry.
I certainly agree with the Deputy. It is a disgrace that things have been allowed to get to this stage. For that reason I commissioned this report, which has now been published. I am sure the Deputy has received a copy of it but if he has not I can make this one available to him. It was done by KPMG to establish once and for all what is required for the future of the whitefish fleet and how we should go about modernising it, taking into account various factors, including availability of quotas and the need to have vessels that can travel distances to avail of non-quota species. That report should form the basis of future policy whoever is in Government or whoever holds my position.
We are taking on board the recommendations of this report — which I will supply to the Deputy if he does not have it——
I have been waiting for it.
——including a pilot scheme which would involve an investment of over £7 million, identifying suitable people to take part in the scheme for which grant aid would be made available, and building up a whitefish fleet to do precisely what the Deputy has suggested.
It was important to get that study done so that all those in the industry will be aware of the investment and what will be required before any grant aid can be given. I share the Deputy's concerns, particularly in relation to safety, and for that reason a lot of money has been spent on modernising existing vessels. The Operational Programme for Fisheries did not allocate sufficient moneys when funds were being divided up in 1993-94. I inherited that situation and I am staking my claim for additional funds in the context of the mid-term review.
The Minister said that a lot of money has been spent on modernising the fleet up to now. I beg to differ and feel there is room for much expansion. The money that is being expended is the equivalent of giving a new parachute to a 50 year old aeroplane — it does a certain amount but obviously we are looking for much more.
The Minister spoke of the report providing a sense of reality and telling people what the situation is, but fishermen already know. Everybody can quote figures relating to EU waters, our quotas, the age of our fishing fleet and its deficiencies. I welcome the report but we seem to be talking only about reports, studies and reviews of policy, while we want more action.
Does the Minister realise the economic dependency of many coastal communities on the whitefish fleet? Is there a policy, perceived or otherwise, to wind down the whitefish fleet instead of expanding it? In my area we feel there is potential for the fleet.
In relation to the report itself, it has been mentioned that the boats would cost £1.8 million and there would be a 40 per cent grant. Is that grant aid 40 per cent of £1.8 million or of the first million?
Does the Minister consider, as it says in the conclusion to the report, that three or four boats on a pilot basis would add a critical mass of new vessels to the whitefish fleet? Does the Minister agree that three or four boats is a critical mass, given the size of our fleet and considering that 64 per cent of its vessels have serious deficiencies? We are worried about safety. Will three or four boats serve the élite or will they serve those who need them?
I am asking a lot of questions but many other questions remain to be answered.
That is three or four boatloads of questions.
Yes, I have nearly reached the quota.
The Deputy is over-fishing. She should stick to the question.
An Leas-Cheann Comhairle
The Minister knows that the Chair is well capable of taking care of things.
The Deputy is trawling.
Does the pilot basis, mentioned in the report, refer to the fact that three or four boats will be put into service and it will take three or four years to assess the scheme?
An Leas-Cheann Comhairle
That should be adequate.
I have two other questions. What about the ports that do not apply? Special ports will be chosen for this. What incentives are there for young fishermen?
That was longer than the time taken for a Second Stage speech. If I tried that I would be thrown out.
An Leas-Cheann Comhairle
Thank you, Deputy Deasy.
I agree with the Deputy. It is an absolute disgrace that when Deputy Keaveney's party was in Government two short years ago, when it had the opportunity of allocating considerable sums of money from the Structural Funds to the fisheries programme, it totally neglected it. Not only did it do that, but the original sum that was allocated was actually cut at the last minute. A paltry sum of money was left for modernising the whitefish fleet.
I was not here.
The fact that the Deputy was not here does not alter the fact that it is an absolute disgrace that her party totally ignored harbour infrastructure and vessels.
How many boats have come out in the last two years?
Her party failed miserably in relation to quotas and the development of new species, yet in the space of two years this Government has managed to turn things around. For the first time in God knows how long we have the prospect of seeing new whitefish vessels, from 24 metres up, which will be capable of developing a modern whitefish industry.
The Deputies sitting over there should be ashamed of themselves that for all the years their party was in Government they did absolutely nothing. It is an absolute disgrace.
(Wexford): Talk to the fishermen.
Another report.
On a point of order, will the Minister address the issues?
It should go on the record for people in the industry who are courting Deputies with these sorts of supplementary questions that their party actually cut the amount of money available in the operational programme.
I do not know why I asked all those questions because they have been ignored.
May I ask the Minister, if we could leave petty party political matters aside——
Certainly not, because the Deputy keeps introducing them.
Does the Minister agree the sea fishing industry has been neglected by successive Governments?
Yes.
All parties in the House, except the Green Party, have been in power so we should all share responsibility for the inadequate investment in the fishing industry, the age of the fishing fleet, the lack of modernisation and the inadequate quota in our fishing waters. All parties should join together to gain valuable resources through the development of the sea fishing industry, rather than each party trying to score political points.
I am delighted to have Deputy Molloy's support so we can have a practical and reasonable discussion on how to improve the industry, rather than the negative criticism we have had for the past 12 or 18 months. I would be delighted to work with my colleagues for the sake of the industry. However, I object to the ongoing litany of what should be done which has not been based on sound scientific evidence. At least we now have a basis on which to work. Anyone involved in business must deal with reality. Deputy Molloy knows from his vast experience here and in business that a company must have good prospects before an investment will be made in it. We are trying to develop the long-term future of our business.
Our goods are being stolen.
We will take steps at European and local level to deal with the issue of over-fishing.We will also endeavour to do something about investment so we can move forward with confidence. The time for political point scoring is over. People should work together.
For the fishing industry.
Is the grant aid level of 40 per cent for £1.8 million or for the first £1 million?What incentives are there for young fishermen?
As the Deputy is aware, the grants will come from EU Structural Funds so we are obliged to adhere to the rules. The 40 per cent grant will be nominal. The grant aid level for £1.8 million will be 25 per cent. The figure of 40 per cent is based on the EU's assessment of what a basic 24 metre whitefish vessel would cost to build. Rather than giving a 40 per cent grant on any figure produced, the EU set a limit of up to £1.2 million. If that is exceeded, the grant will be less. However, if the lowest cost is achieved in the marketplace, the grant could be increased to 40 per cent. It depends on the price charged for a 24 metre whitefish vessel.
As regards the pilot scheme, I share the Deputy's deep concern about the entry of young qualified skippers and trained deckhands into the industry. I hope the pilot project will give these young qualified people the opportunity to operate one of the vessels. That would be important in terms of investment because it would guarantee its continuous usage. Perhaps we could also develop non-quota species and the whitefish sector.That is why BIM, the Department and other agencies will work with the industry to identify these people and to monitor their progress. I would only be too pleased to find an opening for young qualified skippers and deckhands who have been trained in Greencastle and will now also be trained in Castletownbere. It would be a shame if such skills were wasted because of a lack of opportunity. I would like the pilot scheme to use that valuable talent.