Dáil Éireann debate -
Thursday, 25 Nov 1999

Vol. 511 No. 5

Written Answers. - Fishing Industry.

Jim O'Keeffe

Question:

30 Mr. J. O'Keeffe asked the Minister for the Marine and Natural Resources his views on whether the traditional herring industry has collapsed in view of the fact the return from the German market for herring fillets is only £400 per tonne with the cost to the producer of more than £500 per tonne which figure allows only minimum prices to the fishermen; and if he will seek an emergency package from the European Union in view of the fact that the situation may actually become worse from the new year when the Norwegians will have a herring quota of 1.5 million tonnes. [24654/99]

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

The position regarding the global market situation for herring continues to be very worrying. The difficulty is due mainly to oversupply on the European market due to the importation of low price herring from Norway.

My Department and BIM are working closely with the Irish fish processors and exporters to maximise all possible market openings for Irish herring, notably in Eastern Europe.

The task force on the management and marketing of herring recommended a series of measures, including the appointment of the pelagic market co-ordinator, to maintain and enhance the Irish herring exports in the very difficult global environment. The co-ordinator is now working with the industry on the ground to further develop market co-ordination and co-operative strategies for the herring industry. All these have already been implemented or are in progress including quality development programmes for the fleet and herring processors, an Industry Marketing Group, market research and new product development. These initiatives will help the industry through the present difficult market situation and position it well for development in future.

In the present scenario the Department is also working with the industry to facilitate the take-up, as appropriate, of the existing EU market support schemes. The schemes allow for the withdrawal from the market of herring when the minimum withdrawal price for sale is not reached and the payment of a subsidy where product is held over with a view to reintroducing it to the market at a later stage.

On the European level, I was successful at council on Monday, 22 November in stopping the Commission's proposal to allow unlimited quantities of fresh, chilled or frozen herring products at preferential rates of duty into the Community. I secured agreement to limit import quantities to 20,000 tonnes per annum from 2001-2003 and ensured that there was no increase on existing quantities. The terms of the agreement excludes filleted herring, restricts imports to larger sizes and limits imports to the period between 1 November and 31 December. Critically, I secured agreement on a review clause under which the Commission may take action to remedy serious disturbances on the EU herring market, including a review of the preferential imports.

These are difficult times on the herring front and the difficulties are due primarily to external factors over which we have no control. In that difficult scenario the focus will continue to be on developing new market opportunities and maximising quality and competitiveness in order to deliver best possible prices for Irish product.