Expenditure under the fleet modernisation and renewal measures of the Fisheries Operational Programme 1994-1999 has been ongoing during 2000 as projects come on stream. The introduction of the 29 new vessels supported under the Whitefish Fleet Renewal Programme 1998-2000 has been under way throughout the year.
In parallel and following agreement with the Commission during the year on the Community Support Framework 2000-2006, the new round of investment support strategies for the fleet and the seafood industry as a whole is being put in place. Under the national development plan, an unprecedented level of funding totalling £171 million will underpin overall investment strategies for the sector. My Department is working with BIM to finalise the detailed grant schemes which will strategically focus on the enhancement of the safety, quality and competitiveness of the whitefish fleet. The fleet modernisation programme will continue, therefore, to target improvements in operational safety, working conditions, efficiency, handling and quality. The significant difficulties which have emerged in fuel prices and labour shortages combined with declines in fish stocks are also factors to be addressed. In this climate, we must ensure that short and long-term strategies are targeted to secure the viability and competitiveness of the fleet now and into the future.
There is a distinction to be drawn between modernisation and upgrading of existing vessels and the introduction of new replacement vessels. In that context, the Deputy will appreciate that the timing and nature of incentives to support the entry of further new vessels into the fleet requires careful evaluation. The majority of new boats assisted under the renewal scheme are just coming on stream. The impact on existing fleet structure and fishing opportunities of these new vessels has not been fully quantified at this stage. An economic evaluation of the impact of the renewal scheme together with an analysis of financial performance to date in light of all relevant factors is both prudent and essential. There is general consensus within the industry on this point. I have requested BIM to commission the necessary analysis and my Department and BIM will work together to finalise recommendations to me in light of the findings of that evaluation.