Vol. 487 No. 3
27 Mr. Finucane asked the Minister for the Marine and Natural Resources if he will consider a bad weather aid package for the fishing industry in view of the adverse weather conditions during the months of December 1997 and January 1998; and if his attention has been drawn to the financial hardship imposed on the fishermen. [3908/98]
I have already indicated to the House in recent weeks that I would be open to considering any substantiated case for assistance made by fishing organisations owing to losses incurred because of bad weather of exceptional severity and duration in light of Met Éireann weather data and within the parameters of EU legislation.
I have to remind Deputies, however, that under EU state aid rules approval for financial assistance to the fishing sector must be obtained from the European Commission. The Commission has consistently stated that EU funding will not be made available to compensate for bad weather. The Commission has also affirmed it opposes national compensation schemes in this regard.
I have to date received two formal requests for bad weather compensation from sectors of the fishing industry. These are currently being examined by the Department. In order to inform evaluation of and decisions on any such requests from the industry I had already requested the Department to undertake a comprehensive analysis of weather data as well as landing and sales data for the period November 1997 to January 1998 and for comparative periods. This analysis is under way.
I thank the Minister for his reply and I have read the previous response. I tabled this question because of the concern expressed in the fishing industry about the ongoing bad weather. Is the Minister aware there is a precedent dating back to April 1994 when the then Minister, Deputy Andrews, pressed the Taoiseach, who was then Minister for Finance, and £5 million was allocated in similar circumstances? If there was a precedent in 1994 to respond to the industry surely it is possible for the Government to respond to it now? While indicating to the industry that it should respond by producing data, which does not give rise to any difficulty, the Minister should also respond to it. Articles 8 and 9 of the regulations state member states may grant financial aid to ensure an equitable standard of living for the population who depend on fishing for their livelihood. The Minister might reconcile that statement in the regulations with EU policy in this area which he stated does not provide for compensation.
Regarding the previous situation, the Commission seriously considered taking Ireland to the European Court of Justice because of the arrangements made at that time. An amount was set aside, but the amount drawn down was considerably less. The Commission finally withdrew its threat only towards the end of 1996 on grounds that this would not happen again. It took a good deal of negotiation to reach that position. Given the circumstances, we are monitoring the position to ascertain what the outcome will be from the point of view of weather conditions. As the Deputy is aware, the weather has improved substantially in recent times and fishing has begun again. Meteorological statistics suggest that weather conditions this winter, with the exception of December, have not been as harsh as in recent years. Weather conditions were better than average for the period from November to January. The current year appears to be the third best winter in the past seven years in terms of gale days on the north and south west coasts. We are examining the sales figures to see what needs to be done.
Questions were raised about why farmers get allowances and various types of compensation. There is only a limited quota available to the fishing sector. If the quota is reached, that is as much as can be caught irrespective of when fishing takes place. There is a certain give and take in that regard because if a fisherman fulfils his quota, he has caught all the fish he can catch. We are looking at that and I have noted what the Deputy said. I appreciate that December was particularly bad.
In December the Department of Agriculture and Food placed an advertisement in the newspapers asking farmers to send in submissions before 19 December if their crops were damaged by bad weather. Those submissions will be considered by the EU Commission in March and compensation will probably be paid. It is difficult to reconcile that with the situation in the fishing industry. Fishermen feel similarly aggrieved because bad weather conditions have affected their incomes in what is regarded as a hazardous profession. Such conditions have also had an impact on the white fishing fleet. This situation is further compounded by the collapse of the herring fishing sector. I ask the Minister to try to convince his EU colleagues that this is a problem specific to Ireland. I am sure the fishing industry has quantified the scale and effect of the losses in its submissions to the Minister. Perhaps he could respond positively in this regard.
December was a difficult month for some areas. It depends on the sales and recovery and we are trying to quantify those at present.
28 Mr. Finucane asked the Minister for the Marine and Natural Resources the measures, if any, he has put in place to compensate fishermen in the herring fishing sector in view of the unprecedented price collapse and the economic ruin facing fishermen. [3909/98]
I fully share the concerns about the worrying state of the herring markets. I have outlined to the House on several occasions the background to and the global nature of the problems facing the industry. I am glad to have this opportunity to update the House further on my initiatives to address the immediate crisis for fishermen and processors involved in the herring fishery. These initiatives focus on tackling the medium to long-term structural, operational, market and management issues which are at the heart of the present crisis.
The main underlying global factor is oversupply and changing trends on the key Japanese herring roe and European herring flap markets which are the key outlets for Irish herring exports. There is ample evidence of a global herring market collapse resulting in depressed prices for traditional suppliers. This is due to high output in the Canadian herring fisheries and the re-emerging Atlanto Scandian herring fishery from which over one million tonnes was produced last year. Norway, in particular, has led the market penetration of Atlanto Scandian herring and continues to off-load an unprecedented level of supplies into EU and eastern European markets. The Japanese herring roe market, where Irish herring producers have developed a valuable niche in recent years, is similarly suffering from over supply and low prices, exacerbated by the downturn in the Japanese economy and signs of long-term decline in the traditional consumer market.
The global herring commodity market, which is a naturally volatile sector, is going through a particularly difficult cycle. Little change is foreseen in the short to medium term. The extent and impact of the actions which we can take at national level must be set in this global supply and demand context. It has been clear for some time, however, that a range of structural, operational and quality improvements are required in the herring industry if our producers are to maintain a market presence and become more competitive in a tough international environment.
A hard collective look at all aspects of the sector was clearly needed. Having consulted with the industry, and at its request, I set up a task force last December, representative of all relevant interests, to comprehensively address the issues. I have mandated the task force to assess all the options for better management and marketing of Irish herring, taking account of global factors and trends and all relevant domestic factors across the supply, processing and marketing chain. I have asked the task force to recommend concrete measures to tackle identified short-term difficulties designed to bring about the necessary medium to long-term change. It will also advise on the financial, sectoral and management implications of its recommendations.
I have asked the task force to report to me by the end of March — a demanding but necessary deadline because of the critical situation which faces the industry. The task force, which comprises regional and national representatives of the herring fishing industry, processors and exporters as well as BIM, the Marine Institute and the Department, has been working intensively on all aspects of the brief since its first meeting on 22 December last. It has already made interim recommendations to me on the need for urgent action at EU level to reduce the current level of preferential access by non member states and on the priority need for enhanced herring stock assessment and survey programmes by the Marine Institute in 1998. I have accepted and taken immediate initiatives on these interim recommendations.
The task force has already signalled to me that funding will be needed to back up its emerging findings and recommendations on short to medium-term programmes needed to address long-term structural, quality, handling and marketing deficiencies in the herring sector. These will be geared primarily around improving the competitive position of the catching, processing and exporting sector.
I look forward to receiving and taking forward the task force's report and recommendations next month which will constitute a comprehensive agreed package of measures designed to address the short-term difficulties through systematic tackling of the underlying problems.
I thank the Minister for his response and for setting up the task force in late December when the collapse in the herring sector was flagged. As the Minister is aware, herring fishery in the Celtic Sea is due to conclude at the end of February and the task force is to report to the Minister by the end of March.
The Minister mentioned addressing the short-term difficulties. I am sure he meant improving the quality of herring and fishing vessels. What financial assistance will be available for such improvements? I am sure the Minister is aware — and this probably compounds what I said about the weather problem — that if herring prices have collapsed from £200 to £120 per tonne, a decrease of £80 per tonne, it is probably uneconomic for many fishermen, particularly those in the south west, to fish in the traditional fishery of the Celtic Sea. With regard to the Minister's short-term response, I hope it will give some appeasement to those who fish for herring and that it will result in improved prices.
I agree with the points made by the Deputy. This is clearly the objective of the task force. The task force is substantial with wide, practical representation including the Irish Fishermen's Organisation, the fishery co-operatives, the Celtic Sea fish processors, IBEC and representatives of the Celtic Sea herring industry in addition to various others. This is a major undertaking which will be carried out over a fairly short timescale. In the meantime I am conscious of the difficulties faced by the whitefish fleet and additional measures are being taken in the budget which will give incentives in that regard. I hope to come up with a reasonably good grant-aid package which will help also. I assure the Deputy that the task force is examining measures to tackle the short-term requirements. A number of recommendations have been made already which we are following up, particularly with the Commission. This is a major local issue but it is also a global one.
With regard to the task force, whose membership encompasses all sections of the fishing community, what reassurance can the Minister give fishermen involved in herring fishing that its findings will lead to an improvement in the overall price per tonne?
The task force will be in a position to see that measures can be taken, from an Irish point of view, to improve the return to fishermen. The global problem will involve the European Union and we are already making some representations on behalf of the task force to the Presidency and to the Commission. They are interim measures. I believe fishermen are happy with the task force because it is effective and is dealing with the underlying problem. They know it will be in a position to tackle problems in the future.
It will not wave any magic wand.
There are no magic wands in this area.
