Dáil Éireann debate -
Wednesday, 1 Jul 1998

Vol. 493 No. 4

Priority Questions. - Fishing Fleet Modernisation.

Michael Finucane

Question:

20 Mr. Finucane asked the Minister for the Marine and Natural Resources the funding, if any, available under the 1994-99 Fisheries Operational Programme for the years 1998 and 1999 under the vessel decommissioning scheme; the total amount available for the vessel modernisation scheme for the years 1998 and 1999; if this funding has been allocated in the renewal programme for the whitefish fleet; and if all the funding resources under the categories of vessel decommissioning and vessel modernisation will now be used up as a result of the introduction of the programme for the renewal of the whitefish fleet. [16424/98]

Minister for the Marine and Natural Resources (Dr. Woods)

I confirm that the funding for the Whitefish Fleet Renewal Programme 1998-2000, which I announced in Castletownbere last week, will ensure effective and productive use of the remaining funding available for the fleet under the present fisheries operational programme which provides funding support for the renewal and modernisation of the fleet. The programme also contains a funding measure for vessel decommissioning premia in the context of mandatory EU fleet reduction targets under the so-called multi-annual guidance programmes.

I have been working since taking office to deliver on the Government's commitment to the renewal of the whitefish fleet. My first task was to negotiate an equitable and reasonable decision for Ireland under the MGP IV decision to reflect the state of the Irish fleet and the acknowledged need for improvement in whitefish fleet safety, age profile and enhanced ability to compete on equal terms with competitor fleets. In the context of that outcome, I concluded that a targeted programme of whitefish fleet renewal and modernisation, including the introduction of new vessels, could be delivered without recourse to a further decommissioning scheme on a 100 per cent tonnage replacement basis, while remaining within the tonnage objectives set for the whitefish fleet under the MGP decision for Ireland up to 2001.

The whitefish fleet renewal programme has, therefore, been designed to utilise remaining funding to best effect for the fleet, while delivering on EU fleet parameters over the period. Accordingly, the EU funding support package of £6.4 million for total investment of up to £40 million in the whitefish fleet combines the remaining funding under the decommissioning measure of up to £2.9 million and under the modernisation measure of up to £3.8 million.

Mr. Finucane

My question relates to the amount of funding under the 1998-99 operational programme for decommissioning and fleet modernisation. How much of that funding — I welcome the Minister's announcement in that regard — has been allocated to the three year package? Given that funding has been transferred to the purpose announced by the Minister, am I right in thinking that no further funding will be available under the 1998-99 operational programme for decommissioning and modernisation, given that the funding has been used for the purpose announced by the Minister?

Dr. Woods

The repackaging into the renewal programme will ensure that fleet funding under the operational programme up to 2000 is firmly directed at the priority needs of the whitefish fleet. This strategic approach will deliver the most appropriate and effective use of available funding over the period. From the positive reaction to the package, it is apparent the fishing industry shares my view that this is the correct and essential priority for funding support at this time.

The key element is that there was very little money for use on the grant package under the operational programme, but money was available for decommissioning. I felt, rather than become involved in decommissioning at this stage, it was more important to improve the safety of vessels and their capacity to operate on an equal playing pitch with those of the Spanish, French and other member states. Consequently, the funds that were available have been directed to enhance the grant package.

Mr. Finucane

I agree with many of the sentiments expressed by the Minister, but the question asked how much money is available under the operational programme for 1998-99 for vessel decommissioning and modernisation and how much funding was transferred for the purpose announced by the Minister relating to the whitefish fleet. Under the programme there is a total of £8.9 million, including our own resources and EU resources. Am I right in saying that funding was already available under the operational programme and there was no great input from the Exchequer? Is it true the Minister announced he would invest £40 million?

Will the Minister agree the trigger mechanism in the Finance Act relating to accelerated capital allowances, with which I agree, attracted interest by the banks in making available finance for the project? No additional amount was made available from our own resources to top up the EU funding that was available. How much money was available under the operational programme and, as a result of the Minister's announcement, how was that funding topped up?

Dr. Woods

The Deputy may have had difficulty in understanding what I said. I gave the figures under the decommissioning and modernisation measure, but did not give the amount spent prior to that date. I outlined the position with which I was faced. Prior to that date approximately £4.4 million in EU aid was earmarked for the adjustment of fishing effort measure. Under the decommissioning scheme, 19 vessels were decommissioned during 1996, the money being used under that programme, accounting for £1.5 million, with an amount of £2.9 million in EU aid remaining.