Jim O'Keeffe
Question:12 Mr. J. O'Keeffe asked the Minister for the Marine and Natural Resources the position in relation to grants for the purchase of new and second-hand vessels for our whitefish fleet. [12285/98]
Other Questions. - Whitefish Fleet.
I am negotiating with the Commission my programme to deliver renewal of the whitefish fleet. In addition to ongoing support for modernisation of existing vessels, my renewal programme involves a new capital grant aid scheme to support industry investment in new and modern second hand vessels. The scheme will utilise available funding under the Operational Programme for Fisheries. I secured in this year's Finance Act an exceptional package of tax incentives to attract additional much needed investment in the whitefish fleet. I am confident this package will help to ensure the safety, competitiveness and long-term future of the whitefish fleet to support jobs and encourage growth. I have underlined to Commissioner Bonino the importance of a speedy decision by the Commission whose approval is required from a state aid and fleet policy perspective. I will be meeting her within the next two weeks and expect to be in a position to launch the package next month.
Will the Minister agree this is the most urgent question facing the fishing industry and that we have a ramshackle whitefish fleet which poses great dangers to our fishermen? Half the boats are more than 35 years old and many have been condemned in the safety report. Will the Minister accept there is an urgent need to secure immediate replacements and that this can only happen if grants are made available?
I agree this is the most urgent question facing the fishing industry. After much hard work and negotiation over the winter we had secured by April our finance package. I could use the available funds and make grants available immediately but I am seeking to enhance the package. The approval of the Commission is required. We have also secured our tax package. Again, the approval of the Commission is required. There has been much discussion at official level to resolve outstanding issues.
Now that a launch date has been set I wish to focus on the amount. Will the Minister agree that substantial grant packages are available in other member states, in particular Spain where provincial, regional, national and EU grants are available? In some cases 60 per cent to 70 per cent grants are available. Will he agree that a generous and attractive grant package should be available? Will he bear in mind the problems encountered in purchasing tonnage? It can cost up to £300,000 to purchase 150,000 tonnes.
That is why I have been seeking to enhance the package. As the Deputy is aware, limited funding is available. This is not the case in countries such as Spain, France and Italy which can transfer funds——
Why?
They can make use of funds provided under particular headings whenever an issue arises. If funding was available which could be used to enhance the grants package, the Commission might suggest that it be used in dealing with other issues. All that would be required is verbal approval. Some member states have spare funds available and all they need to transfer them is Commission approval. We are not in that happy position. Any outstanding issues should be resolved fairly soon. We should be in a position to launch the package next month.