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Dáil Éireann debate -
Thursday, 25 Nov 1999

Vol. 511 No. 5

Ceisteanna–Questions. Priority Questions. - Joint Fishing Project.

Michael Finucane

Question:

3 Mr. Finucane asked the Minister for the Marine and Natural Resources the number of full-time jobs promised by a company (details supplied) which was a joint venture of his Department and a Spanish company (details supplied); the number of jobs provided; the amount of funding provided by IDA and FEOGA grants; and his views on whether it is appropriate that as a quid pro quo the Spanish multinational was allocated five licences, which allow it to fish Irish waters using Irish quotas with most of the catch being landed in Spain in view of the fact that the jobs complement has not been delivered. [24816/99]

First, I must point out that the project referred to by the Deputy commenced more than 20 years ago, in the late 1970s. My reply is based on the records of these events and in the time available it has not been possible to fully research all aspects of the issues raised.

The Irish company mentioned by the Deputy was established in the late 1970s. The company planned an integrated catching and processing operation based on Dinish Island in Castletownbere. Five fishing vessels were licensed between 1979 and 1983, prior to the introduction of the licensing provisions in the Fisheries (Amendment) Act, 1983. The vessels were intended to land into the processing factory and to be crewed, after an interim period, by Irish fishermen. The project fell short of that envisaged. The landings by the vessels into the State were exported fresh to the Spanish market and few Irish fishermen were employed as crewmen. The factory operated below capacity using fish from sources other than the company's own vessels.

I understand that in 1978 IDA grants of £535,000 capital and £49,000 training were approved for a processing plant in Dinish Island, Castletownbere, County Cork towards an investment of £1.16 million involving three phases of development and 115 target jobs. In addition, BIM paid a grant of £125,000 under the marine credit plan towards the purchase of one of the company's fishing vessels. The IDA paid out grants of £421,000. The balance of the grants approved were not paid as the projected activity for the premises did not meet the targets agreed and the jobs delivered fell short of the target. The maximum number of full-time jobs delivered appears to have been 28. The IDA, however, took the decision not to seek any claw-back of the grants paid in order to maintain employment in the factory. Under the 1991-93 Community Support Framework a total of £45,000 in EU and national grants was paid towards the upgrading of the processing premises. Some 35 to 40 full and part-time workers are employed currently in the processing factory.

The pilot project, as envisaged, was never repeated reflecting the difficulties experienced and the major changes in fishing policy and the industry in subsequent years. It is my understanding that the matter of revoking the licenses in question was examined repeatedly in the mid- 1980s but that it did not prove possible to pursue that course.

Given the funding allocated to this project, will the Minister agree that what appears to be happening is a disgrace? The sum of £430,000 was a great deal of money in the 1970s, but the delivery on that investment is disappointing. In the context of our fisheries, does he think it is most unjust that, in many cases, five vessels, flying the Irish flag and fishing in Irish waters are delivering their fish to Vigo in Spain and competing against Irish fishermen in the process? I understand fishermen are employed in the Eiranova Fishery on a part-time basis and the work involves mainly acquacultural products. It is shocking that a project, which was announced with a fanfare of trumpets by the then Minister, Paddy Power, in the late 1970s, with a bridge connecting the areas and all the other expenses involved in the establishment of the project, has not been sustained. We do not seem to be able to do anything about that, yet five vessels fishing in those waters, four with lovely Irish names pertinent to the area, are landing their catches in Spain. That is a disgrace.

Our objective is to maximise the economic links. It is also an objective of other countries to try to tie in economic links with local flag State, especially between Irish registered vessels and our coastal communities. This is, however, an extremely complex legal question involving such fundamental treaty issues as the right of establishment and freedom of movement. We are currently examining the Commission's clarification on the application of economic link principles. I will examine all possible means of ensuring economic links. In doing so, I must be fully satisfied that these are within the links of Community law and not vulnerable to challenge in the European Court.

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