Vol. 526 No. 5
3 Mr. Connaughton asked the Minister for the Marine and Natural Resources if he has assessed the cost of the increased oil prices to the fishing industry; if his attention has been drawn to the fact that this extra cost factor has seriously impacted on the financial returns to fishermen; and the steps he is taking to cushion these effects on fishermen and their families. [26982/00]
As I have previously advised the House, I have thoroughly assessed the impact of increased fuel prices on the fishing industry in consultation with the industry. The industry is currently experiencing severe difficulties as a result of the price rise which is impacting on the profitability of fishing operations and wages. This is also exacerbating the labour shortage and crew retention problems emerging in the sector. I assure the Deputy that I have highlighted the crisis to my colleagues in Government and am working intensively to secure measures which will address the difficulties.
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.
In my discussions with industry representatives, I have focused on strategic actions to alleviate the problem. The industry has put forward a number of proposals, including changes to taxation and PRSI, and I am discussing with my ministerial colleagues. In addition, my Department is working closely with the industry to ensure that investment support programmes under the national development plan are strategically focused on the short and long-term needs of the sector. All available options are being pursued to assist the industry to alleviate the immediate crisis and to deliver longer term strategies which will ensure the viability and competitiveness of the sector.
I also discussed the fuel prices crisis with Commissioner Fischler, Minister Glavany and EU colleagues at the Fisheries Council last week. I pressed for urgent consideration of the scope of Union action to tackle the difficulties for the EU fishing industry as a whole.
I thank the Minister for his reply. He spoke on this matter in the House some months ago and I would like to know what the Government has done since to help the fishing industry. It appears from his utterances that the Minister is backing the case, but what proposals has the Government come up with? The price of oil is a huge component in fishermen's shopping list and they cannot pass on the increase. All the owners of fishing fleets are hearing from the Government is that help is at hand. However, nobody has told them what help they will get or when they will get it. Will the Minister outline the nature of this help?
In my discussions with the fishing industry and public pronouncements I have stated that this issue will be dealt with in the context of the Estimates and budgetary discussions. I have had a number of discussions with the industry and have invited it to participate in the preparation of a range of programmes which will be put to the Government for decision. Decisions will be taken in the context of the Estimates and budget, which will soon be brought before the House. I will announce at the appropriate time, in association with my colleagues, the measures to be taken to assist the industry.
