Vol. 524 No. 2
94 Mr. Bell asked the Minister for the Marine and Natural Resources the plans he has for an aid package for the Irish fishing fleet in view of the severe difficulties being faced as a result of the huge increase in fuel prices; and if he will make a statement on the matter. [22017/00]
The Irish fishing industry is currently experiencing severe difficulties as a result of increased fuel prices. The fishing industry is exceptionally exposed to the dramatically increased fuel prices because of the relatively high proportion of fuel costs to overall costs. The exposure is compounded by the fact that the sector is a "price taker" with little or no scope for passing on costs.
The fishing industry, in common with those in other member states, is rebated excise and VAT on marine diesel. As a result, fuel cost increases directly reflect movements in the supply price. In effect, fuel costs to the fishing industry have doubled since January 1999, with an increase of the order of 30% since January this year. The fuel cost increases are exacerbating emerging difficulties in relation to labour supply and retention of crews.
I have discussed the situation in detail with industry representatives and with Government colleagues and I have a very clear understanding of the severity of the difficulties being experienced. My discussions with the industry are focusing on ways to alleviate the problem and the industry has put forward a number of proposals, including changes to taxation and PRSI regimes as well as support for training and fleet renewal and modernisation.
I am assessing all options to assist the industry in this very difficult climate, including the industry's own proposals. Short and long-term strategies need to be developed to ensure the viability and competitiveness of the sector. The investment programmes being finalised under the national development plan will be strategically focused on the short and long-term needs of the sector. Discussions are under way with relevant Departments in the context of the budget, on the industry's proposals for changes to PRSI and taxation regimes. My Department is also analysing possible mechanisms within our direct remit which could alleviate the immediate crisis and promote sectoral adjustments which will ensure viability and competitiveness.
Questions Nos. 95-102 taken orally.
