I welcome Mr. Richie Flynn from the aquaculture section of the IFA who will make a presentation on the main issues affecting the sector. I also welcome the representatives from the Irish Salmon Growers Association and the Irish Shellfish Association. Before calling Mr. Flynn to make his presentation, I draw to his attention the fact that while members of the joint committee have absolute privilege, the same privilege does not apply to witnesses appearing before the committee. Members are reminded of the long-standing parliamentary practice to the effect that they should not comment on, criticise or make charges against a person outside the Houses or an official by name or in such a way as to make him or her identifiable. I invite Mr. Flynn to make his opening statement.
Aquaculture Sector: Discussion.
Mr. Richie Flynn
I thank the joint committee for agreeing to meet us. I am joined by Ms Clíona Mhic Giolla Chuda from Dungarvan, County Waterford, who is vice chairman of the Irish Shellfish Association and Mr. Jan Feenstra, chief executive of Marine Harvest Ireland and representative of the Irish Salmon Growers Association. They will make short statements at the conclusion of my presentation.
Committee members will have received a copy of our submission outlining the main issues affecting the aquaculture sector. As this is our first opportunity to appear before the committee since the sector was included within its remit, I will begin with a broad introduction to the sector. I note, however, that a number of members present are from coastal areas and need no such introduction.
Aquaculture is the fastest growing food sector in the world, accounting for more than half of all seafood landed globally. According to the FAO, production will need to increase by a further 40 million tonnes by 2020 if it is to meet demand because, as we are all aware, wild fisheries are stagnating or contracting.
In Ireland the industry produces one third of the seafood sold in shops and catering establishments. However, the gap between trends in Ireland and globally is widening. The sector is larger than Microsoft in that almost 3,000 people are employed either directly or indirectly along the west coast. This is equivalent to 1,900 full-time jobs. Our high quality salmon, mussels, oysters, clams and scallops are in such demand both at home and abroad that our production cannot meet it. In recent years we have made significant monetary investments in quality assurance, traceability, organic certification and environmental management measures.
The aquaculture sector does not have to deal with quotas, total allowable catches, discards, black fish or decommissioning. However, we have a good relationship with our colleagues in the fishing sector and the Federation of Irish Fishermen, in particular.
The first slide sets out the locations of the main species. Aquaculture is practised in every coastal county, except Dublin and Wicklow, although it is practised inland in these counties. The industry is worth €120 million at the farm gate and, importantly, provides raw material for the processing and added value seafood companies which might otherwise have gone out of business due to a shortage of wild produce.
The next slide makes a comparison between aquaculture locations and the areas of the country missed by the Celtic tiger. The most deprived areas where there is little or no alternative employment are the natural heartland for the industry.
From a social and cultural point of view, the next slide demonstrates that this is a sustainable pursuit and, according to Údáras na Gaeltachta, one of the longest surviving industries in Gaeltacht regions. My colleagues happen to come from Gaeltacht regions, Ring and north Donegal, respectively. We have a unique role in combining traditional and modern techniques of small holder farming and fishing to keep families and young people, in particular, in areas they otherwise might leave.
The next slide sets out an example of a local economy in south Connemara which is completely dependent on aquaculture. The chairman of the Irish Salmon Growers Association who unfortunately cannot attend this meeting farms in this area. He has expressed surprise at signing 60 cheques per week for the local economy. It is an extremely significant industry in south Connemara and the islands. To give another example, if salmon farming was not practised on Clare Island, County Mayo, in the past 20 years, the island would now be completely depopulated. Instead, it has new teachers and enjoys a thriving community. I could give many more examples in coastal areas. My colleagues will be happy to describe the effects on their own areas.
The next slide is a photograph taken by the European Space Agency. What appear to be clouds off the west coast are, in fact, rich plankton fields, or the food for the industry. Members will see that the environment in Ireland is ideally suited to aquaculture. A natural factory is located off the west coast thanks to fast flowing, oxygen rich waters which are ideal for salmon cultivation. The plankton rich Gulf stream also provides perfect conditions for shellfish growth.
The industry works in harmony with the environment. Famously the mussel lines in west Cork have been described as the vineyards of Ireland. They fit into the environment and provide a natural food source. Traditional practices such as mussel dredging have continued for 150 years in places such as Cromane, County Kerry. Salmon farming has been practised for almost 35 years. Oyster farming is a business focussed on small and medium-sized enterprises and family enterprises. It is highly prized in places such as France for its product. The latest EPA report on the state of the Irish environment, published last week, states that the industry, while relatively small in European terms, makes a significant contribution to the economy by creating employment in remote coastal areas and generating export revenue. It refers to the sector's comparatively small levels of current and projected production, its predominant location along Ireland's seaboard and the regulatory environment within which it operates. There is considerable potential for the sector to develop in a sustainable way if the matter of the impact of aquaculture and the marine environment are fully addressed. We are committed to this.
I will give an example in terms of size. The entire year's production of farmed salmon is less than one week's production in Norway. That being said, the figure equivalent to a week's production in Norway is keeping a significant amount of people employed on the west coast.
We are also involved in bringing in new species. Our industry is characterised by innovation and new species include Arctic char, cod, abalone and clams. Given the right business environment, our members strive to find new species and more efficient ways of farming the sea. In the past 40 years, one can consider the sea as moving from a hunting perspective, where agriculture was 3,000 to 4,000 years ago, to cultivation, which is the future as acknowledged by everyone.
This is a market-driven industry. We do not produce shellfish for the sake of it and there are no subsidies for producing shellfish. We do so because people want our products. We supply a highly sophisticated and competitive market. Most of what we produce, some 70%, is exported and goes to the catering and retail trade.
We have invested heavily in added value and modern products. In following this investment, the question is why producers cannot provide enough raw materials to that processing sector. We are interested in local marketing, such as Fuchsia Brands in west Cork. This applies particularly to the shellfish sector. We believe Irish people do not eat enough seafood and should be encouraged to eat more through local marketing initiatives, which we hope to carry out through BIM.
We have invested in the organic side and over 70% of farmed salmon production in Ireland is certified as organic. Contrary to some conflicts about which the committee may have heard, we have an open and constructive relationship with the Sea-Fisheries Protection Authority based in Clonakilty and its officers around the coast, especially with regard to food safety. We have regular meetings with these people as regulators and the meetings are as constructive as possible. We are committed to that aspect.
The industry has unique potential to create new wealth from our natural resources. It also has the unique potential to maintain the fabric of coastal communities, such as schools, part-time farming and shops. We are small and medium-sized enterprises that can stimulate the coastal economy. Where there is one good business, five or six businesses feed from it. We can drive down unemployment and reduce emigration, a word that is becoming a feature of conversation in the pubs and churches of coastal Ireland. We can add to the balance of payments because 70% of what we produce is exported. An indigenous food industry is using sustainable natural resources to meet the demands of a sophisticated consumer market.
This may seem like a bright picture but that is not the case. We are reducing our production and having a terrible time attracting investment. We must turn customers away, and we must turn people away at the farm gate because we cannot give them the jobs we would dearly love to give them. The Government is not focussed on delivering what it promised for our sector. According to a recent survey by the IFA, fish farmers are waiting up to 70 months for the Government to process licence applications. Why are there more than 300 applications gathering dust and not being processed in the coastal zone administration division? Some have been there for five years.
Why must we turn away serious private investors, who see aquaculture as a positive sunrise industry? Why are our workers and those who own licences emigrating? Why has the small amount of capital aid, expected after the Cawley report, been axed? Why are we falling so far behind our competitors in modern regulation? For instance, in Scotland and Norway, one is rewarded for environmental protection. In Ireland it is the opposite. In our case, why are we being constructively dismissed by the current Administration? Why should we be losing jobs in 2008?
We also see a tax, which is not too harsh a word, on our industry creating jobs at no cost to the Exchequer. We have seen other systems failures and many members will be aware of the great difficulties of 60 families in the Cromane area of Kerry during August and September of this year. They were prevented from carrying on the tradition built up over 150 years of fishing for mussel seed. Recent fish health legislation, introduced by the Minister in July, is a fantastic directive from the EU. Unfortunately, the Minister saw fit not to bring in the balancing provisions for compensation of farmers when a compulsory cull is ordered. No other farming sector would put up with that, yet we have been told we must implement the legislation with no compensatory measures if the State disrupts a business.
It is difficult for our industry to accept the extension of marine special areas of conservation, as proposed by the Minister for the Environment, Heritage and Local Government into many marine areas around the coast. The SACs implemented over ten years ago have not been properly managed and we are paying the price. The blame for licence delays is being laid at the door of the National Parks and Wildlife Service, the Department of the Environment, Heritage and Local Government or the Directorate-General for the environment in the European Commission. Someone must take the blame because it is not working. Someone must find a solution. We have asked the Minister of State at Department of the Environment, Heritage and Local Government, Deputy Killeen, to get a taskforce or committee to bang heads together and get the SAC situation sorted out. We await his response.
The people who should be processing our licences are in the Department of Agriculture, Fisheries and Food, where they are dealing with offshore energy projects. I do not see how that fits with Government policy. Why should the Department of Agriculture, Fisheries and Food deal with offshore gas and oil? It prevents them dealing with matters of agriculture, fisheries and food.
The Cawley plan, the strategy for the sustainable development of Irish seafood, was chaired by Noel Cawley and predicted 2,000 more jobs for aquaculture by 2015. The reality is that we have lost 260 job opportunities since 2005, a lot for a small business and a lot in rural Ireland. The headline for us today is that every month that goes by without the Government fixing licences and focussing on the industry in terms of the national development plan, we lose another 30 jobs. Can we afford to lose 30 jobs every month in coastal areas ad infinitum, with nobody coming forward with a solution? What is most surprising is that it would not cost the State an extra penny to create these extra 30 jobs. It is a budget neutral solution to unemployment along the west coast.
We seek the support of the joint committee for the allocation of proper resources to deal with the backlog of licences. It is a bureaucratic issue not a budgetary issue. We would be happy with 50% of the Cawley capital budget. We will have to see the small print of what was announced in the budget yesterday for BIM and the Department's budget. Some 50% of the capital budget for 2009, €10 million, would be enough for the sector and a dramatic improvement in service to industry. The secretariat has circulated a survey on services to the industry, the final page of which contains comments from business people in the sector. It is clear people are frustrated as they try to explain to their families and workers why they cannot move forward in the business due to this bureaucratic paralysis. I invite Ms Cliona Mhic Giolla Chuda to give a perspective from the point of view of a small producer of oysters.
Ms Cliona Mhic Giolla Chuda
Mr. Flynn has covered the basic points. I reiterate that the biggest single issue facing the industry is the licensing issue. The position is untenable. No industry can thrive and survive while there is inaction on licences. Some people who had intended starting in the business have been waiting for years for a licence. We are not getting service on simple matters such as the transfer of a licence. A man in my area who had built up an oyster farm had to retire for reasons of ill health. He sold his farm and wished to transfer his licence. He signed a contract that the money would be payable when the licence was transferred. He has waited five years for the transfer of his licence and he still has not received his money. No other industry would tolerate that.
I work in a Gaeltacht area which, as Mr. Flynn said, is very important for us. I would go so far as to say that the establishment of the aquaculture sector, the shellfish industry, in the 1980s was one of the issues that allowed the small Gaeltacht area stay alive. It meant people did not have to emigrate. However, we are now facing a situation where people are beginning to talk about emigration. This is an industry that can be brilliant for this country. We have a natural resource. We are not polluting anything. It keeps money in local communities. If we do not get service from the Department it simply cannot flourish. By service, I mean the most basic things, such as one's call being returned or an e-mail being answered. At present, I might as well send e-mails into a black hole some where. That is my main message to the joint committee. It appears there is no real will to develop or move the industry forward. We are not looking for handouts, we just want to be allowed develop our businesses, to employ people and help ourselves and the economy of the country. Fágfaidh mé mar sin é.
Mr. Jan Feenstra
I lead a fairly large company in north-west Donegal which has a turnover of €40 million. We have 220 people on our books and have been in business for 30 years. That is a very respectable achievement for any industry in a peripheral area such as Fanad. I cannot over-emphasise the importance of employment in such a small peripheral community. We have an influence on schools and traditional life with many people running small part-time farms. We have very ambitious plans. We have a value-added processing factory but we do not have enough fish to keep that factory going. Unfortunately, our continued success in under threat and, as Ms Cliona Mhic Giolla Chuda said, that is consequent to a paralysis in licensing.
We have had to purchase and rent licences, to apply best sustainable practices. In this area the Department's inaction, lack of direction or vision or drive, is anti our industry and, ironically, is anti environmental conservation, something we have been accused of in the past. We are rapidly becoming uncompetitive and are now one of only a handful of remaining farms in the west. At this rate, there is a likelihood there will be no Irish salmon for our food industry in five years time. We are losing a whole food category. Would anybody have believed that five years ago?
I work for a company which operates in 18 different countries and employs 7,500 people in aquaculture. We are represented in all the countries where salmon is important. The Irish case is a baffling one and it is often a joke to my foreign-based colleagues. For me, it is a personal embarrassment to always have to defend the set-up in Ireland. The inertia, apathy and lack of focus on what is a growth industry is scandalous and reflects a continuing disregard for our Irish marine resource. We are an island nation. When will the civil servants and the politicians realise the value of our fisheries and the livelihoods they can create in the peripheral communities of the west coast?
Thank you.
I welcome Mr. Flynn and his two colleagues and congratulate them on their presentation. I find this a very emotive issue. I come from Glenbeigh which is three miles from Cromane. We have seen at first hand what happened in Cromane this year which is an absolute disgrace. As Mr. Flynn has said, it is a 150 year old tradition. There is no better protector of the environment than those who live from it. A €5 million mussel industry in Cromane was closed down due to bureaucracy and left to the starfish. I could use some stronger language but we are on camera so I will refrain from doing so. There is huge anger in that small community of 70 families which is totally dependent on the mussel industry in Cromane. Those families have nothing else. Given the way in which they were mucked about during the summer months it was embarrassing to be a public representative working on their behalf to try to alleviate the problem.
Turning to the presentation by Mr. Flynn and his colleagues, if I were Minister for fisheries in the morning I would give €40 million to the aquaculture industry. Jobs are being lost on a daily and weekly basis. On several occasions I have tabled questions to the Minister regarding new licences and renewal of licences but there is no answer. At one stage the problem was blamed on the Department's move to Clonakilty. The fact is only three of the senior staff had moved to Clonakilty, yet that was given as a reason the new staff were not able to cope with the licence issue. That is baloney because the problem has existed for the past five or six years. As Mr. Feenstra and Mr. Flynn have outlined the industry has great potential. There could not be more secure jobs than where people live off a natural resource.
We can set up a factory. The Minister visited my constituency with great fanfare recently to announce 70 jobs over the next three years. While those jobs are welcome the potential in this industry is not being tapped. There is no explanation for it. If it were to cost billions of euro I would say something but it would not. It is a no-brainer, particularly when one considers both the job creation and security to which it would for a relatively small amount of money invested give rise and the Government's likely take from it. I cannot understand why substantial investment has not been made.
We have not yet seen the detail but it was announced yesterday that the money relating to the Cawley report on aquaculture was being pulled. The fisheries industry was not even mentioned in the budget.
Licences pose a major problem. I understand people are willing to invest. Mr. Feenstra has indicated that he is embarrassed to inform his international colleagues that, as an island nation, Ireland is not even tapping into its natural resource. Someone must answer as to why the industry has not progressed during the past five years and there is not a concerted effort to drive it forward. I compliment Mr. Flynn on his presentation and the heading pertaining thereto. I agree that we are squandering a major opportunity.
Deputy Ferris is conducting a survey of the decline of aquaculture on the west coast. If the Minister does not take action and provide major support in respect of aquaculture, it is difficult to say what will happen. There are more fisheries officers than boats in Dingle.
There are three words in respect of which I would like our guests to comment, namely, "profitable", "price" and "production. They have stated they are becoming uncompetitive. Do I understand them to mean that they do cannot catch enough fish to supply their market share?
The Minister for Agriculture and Food will be taking Question Time in the Dáil either next week or the week after and we will be seeking answers from him. The potential of this resource has gone untapped. Many of those present live in rural or peripheral coastal areas. As stated, if I were Minister, I would love to be able to give the aquaculture industry €40 million.
I thank Mr. Flynn, Mr. Feenstra and Ms Mhic Giolla Chuda for their presentation and the submissions they made to the committee in respect of the report on which it is working.
The fishing and aquaculture industries offer major potential and could be exploited for the benefit of the nation. Unfortunately, for some time there has been a lack of political will to develop that potential.
I spent much of the summer visiting every area on the part of the coastline that runs from County Donegal down to Ring, County Waterford in order to meet interest groups and gather information for the report on which we are working. What I discovered was both depressing and embarrassing. It is depressing when one is aware of the potential and witnesses the sincere commitment on the part of the people in the places I visited to try to remain in their communities and build a viable industry.
The Cawley report is extremely detailed and cost a great deal of money to produce, but it is gathering dust. That is a sad reflection on the political establishment which has done nothing. Why commission a report and go to so much effort and expense only to ignore the findings? That does not make sense. The report identified that an investment of €20 million per annum — that is not such a large figure by today's standards — would have a major impact on coastal communities. It is absolutely disgraceful that people are being obliged to wait 17 months for a licence and that some must wait up to five years. Our guests have indicated that some 33 applications for licences have been awaiting approval for five years. That is an indictment of those charged with processing applications.
I spent a good part of my life fishing for flat oysters. In terms of flavour, I will always argue that there is no comparison between the latter and farmed oysters. They are completely different. However, only so many flat oysters can be fished off our coasts and sent for export. The potential to develop the farmed oyster sector is massive, particularly when one considers the international demand. This potential is not being exploited for the benefit of the people.
I do not want to mislead anyone. Our guests' presentation is detailed and, to my knowledge, accurate. Deputy Tom Sheahan referred to Cromane, the fishermen from which made a presentation to the committee and indicated that they could not obtain grants to upgrade their boats and make them compliant in order that they might continue to fish. We cannot even determine which Department has responsibility in this regard. I tabled parliamentary questions to the Minister on the fisheries sector and the replies I received indicated that the matter was not his responsibility but that of the Sea-Fisheries Protection Authority, an independent body. When I contact the authority, it will not answer my questions. I raised this matter previously in the Chairman's presence when the Tánaiste, Deputy Coughlan, was Minister for Agriculture and Food. As a result, I had a meeting with representatives of the Sea-Fisheries Protection Authority. I tabled 30 or 40 parliamentary questions on the matter but have not received any replies.
Mr. Feenstra has referred to the potential of the industry in which he is involved and his embarrassment that this potential cannot be fulfilled because it is not possible to produce enough to meet commitments. There is an onus on members to follow up on this matter. I suggest we invite the Minister to come before the committee in order to obtain answers to the questions posed by our guests. Members are elected to represent the people. I come from a coastal community and have first-hand experience of what is happening in coastal communities. Deputes Tom Sheahan and P. J. Sheehan and Senator O'Donovan have similar experience.
This is a matter of political neglect. Is it the case that if constituencies are too small, they will not receive the attention to which they are entitled? I commend our guests on the work they have done and appreciate the interest they have shown not only in the aquaculture sector but also the fisheries sector. They are sincere in what they do and deserve the support of every member. We have an obligation to obtain answers on their behalf and I will do everything in my power to ensure such answers will be forthcoming.
Before calling Deputy Christy O'Sullivan, I apologise to Senator McCarthy who is obliged to go to the Seanad to fulfil a commitment as Acting Chairman there. I should have called him before calling Deputy Ferris and I apologise for not doing so.
I thank Mr. Flynn, Ms Mhic Giolla Chuda and Mr. Feenstra for their presentations. They were simple and to the point, which made it easy for us to understand.
As a representative of a coastal constituency, I have long held the opinion that aquaculture, fishing and marine activities in general are not receiving the recognition they deserve. Simply put, these activities are the only means of employment for the areas in which they are located. We would all accept that the areas in question will never attract major industries or significant employment opportunities. From that point of view, it is crucial that we support activities, such as aquaculture, which have a proven record. They are an example of how communities can help themselves by creating employment. Unfortunately, I must express my disappointment as a Government Deputy at the attention these activities are getting. This committee needs to work together to send a message to the Minister for Agriculture and Food that we no longer accept this situation. These activities are our only chance of keeping coastal communities alive.
A considerable number of people in my constituency are involved in the aquaculture sector. When they make representations to me, I tell them that the Minister is relatively new in his job. Perhaps the problem arises from the regularity with which Ministers change positions. They have only gotten on top of their briefs when they are moved on.
I cannot for the life of me see why anyone should wait 17 months for a licence. We are living in a technological era and seven months would be too long, let alone 17 months. We should be proactively helping these people to create jobs instead of putting obstacles in their way. We will discuss the matter with the Minister and I hope we can make progress on it.
I welcome the representatives of the aquaculture sector. It is important that we have this debate now. The industry offers a significant economic opportunity and those who are interested in rural communities will be sympathetic to the idea of keeping our young people from boarding boats and aeroplanes once again.
We must take cognisance of the bureaucratic blockage that has developed. Politicians as well as those working in the industry are encountering difficulties in getting answers. It is a frustrating situation which requires a remedy. When the people who work in the industry and understand its value and potential have already done their own research on environmental best practice, the least they deserve are open lines of communication.
There is significant potential for added value in wild and native oysters, mussels and scallops. Mr. Feenstra referred to the salmon sector, which is adding value through processing. However, we are not getting it right at the local level. In my constituency, the Foyle under comes the auspices of the Loughs Agency, which is a bureaucratic maze. In the Swilly area, issues arise in regard to licensing oyster and mussel farmers. Over the past five years, houses were all that was grown in the fields of my county. Against that backdrop, the aquaculture industry has found it difficult to survive. It is important that we begin to take the industry seriously at a bureaucratic level.
In regard to its potential, we signed up to the Common Fisheries Policy in 1983 and we are now commencing a new fisheries policy. Inland fisheries, aquaculture and processing and marketing of fishery products are not eligible for support under this operational programme of €42 million. That is where we need to start taking this issue seriously. The EU has always claimed that we benefited greatly from membership and many of the mainstream parties rehearsed the same argument during the referendum on the Lisbon treaty. We received more than €40 billion since entering the EU. However, anecdotal evidence indicates that we sacrificed €180 billion in potential earnings on foreign caught fish by joining the EU.
Under the new CFP, which will now be subject to consultation, the danger is that Europe will come up with a plan for us, just as they did in respect of fisheries. Where would that leave our local industries? Will we once again sacrifice the potential for an EU master plan? We have an opportunity to build on the growth we have already achieved. I will be parochial by referring to Marine Harvest's operations in my neck of the woods. In the Fanad Peninsula, people continue to farm small holdings and the only other industry keeping people in the area is Marine Harvest. We must hold onto the jobs we already have while also creating new ones. Will the jobs anticipated by Mr. Flynn give rise to additional charges on the Exchequer?
I welcome the representatives and commend them on their excellent presentations. This is a major issue for me in my constituency but it is also a nationwide issue. The biggest producer of vacuum packed mussels is Gearhies Investments Limited in my home parish and it is probably under threat. It has a problem with the supply of rope mussels. The biggest abalone fish farm in the northern hemisphere and not just in Europe, Asia or North America is situated on the Beara Peninsula. It is brave effort which one hopes will grow from success to success because abalone, like many other fish species, is where our future lies. The same applies to salmon and other species.
Some 15 or 20 years ago we had hoped to reach a production level of 30,000 tonnes of farm mussels but we are stuck at a production level of 10,000 for a long time. That is a disgrace. It is like the old army long ago; we are killing time and going nowhere. The French, Spanish and Dutch have gone miles ahead of us with the Spanish having a production level of 300,000 tonnes. Chile, which is outside the EU, does not have wild salmon. It started to farm salmon 20 years ago from a zero base. I visited the area where I met many Irishmen from Wexford and other parts who taught them the ropes and showed them how to put the cages together. The first cages were set up by a Wexford man. Chile now has a production level of considerably in excess of 400,000 tonnes of farm salmon. It built an airport near Puerto Montt for fish farming where five or six container planes of farm salmon is flown into Miami each morning. Having initiated much of this industry, we are scratching and lying back. That is a disgrace. The Norwegians who are not in the EU have left us far behind.
Let us look at the mussel industry. There was no such thing as mussels in the pilot project in Bantry after the Whiddy disaster. I was one of those involved at the time in setting up a pilot scheme. We were so naive that our rafts sank. We were looking at the Norwegians and because of the rich plankton fields off our coast, as Mr. Flynn mentioned, the mussels grew twice as fast as in Norway. The timber rafts were old and they sank but one learns by one's mistakes. It was trial and error. Almost 30 years on we have gone nowhere.
I concur it is a disgrace that we have to wait 70 months for the provision of licences. Some Minister must take the bull by the horns because we have seen the demise of general fishing. Unfortunately, fish stocks are declining in places such as Castletownbere, Schull, Union Hall and Kinsale. As was said earlier, there are far more sea fishery officers now than boats going out. There is not much we can do about that because stocks are declining worldwide but there is no quota whatsoever for most of the species presented by the delegation. There is huge potential for abalone, salmon, clams and hundreds of species that can be farmed. We are missing the boat in this regard.
Currently, a port authority Bill before the Seanad proposes that the entire Bantry Bay, bar the inner harbour at Bere Island, will be taken over by Cork Port. What impact will that have on fish farming, salmon farming and mussel lines in Bantry Bay? In and around Whiddy there is a good scallop farming project. What does Cork Port, a specific industrial commercial port, know about fish farming? Is the delegation aware of the potential damage to Bantry Bay which is the second biggest and finest bay in the world?
I compliment the work done by BIM, the Irish Shellfish Association, the Irish Salmon Growers' Association and Mr. Flynn, through the IFA, in promoting fish farming. I note that people compliment the role of the Food Safety Authority of Ireland. I am concerned that the duties and obligations of the FSAI and the Sea-Fisheries Protection Authority overlap. It took 15 years for Bantry Bay Seafoods Limited, which has won several awards, to get into the American market. I do not think the role played by the Sea-Fisheries Protection Authority was professional and fair in that regard. I spoke with a man in America who is a member of the Food and Drug Administration which also has control over food safety. He said he could not understand the position in Ireland which has a population of 4.5 million people and has the Food Safety Authority of Ireland which deals with food safety and also the Sea-Fisheries Protection Authority while America, which has a population of 160 million or 170 million, has one agency to control the whole area.
The ball has been dropped, so to speak, and this applies to more areas than just mussels, which I know from a successful operation in Castletownbere, Shellfish De Lamere Limited, which processes other food. The aquaculture and seafood industry across the board is being stymied, starved and neglected. There is not much point in setting up a sea fisheries protection agency if fishing is on the decline and if fish farming is being taken over by our European neighbours. We must take the bull by the horns and move on. I apologise for being so leadránach but this is a critical issue. The industry has potential for jobs along the coastal communities in difficult times. It will cost nothing to explore, provide licences and take a hands-on, more proactive role.
There is something radically wrong with the whole area of aquaculture within whichever Department. We need a total overhaul. I am critical of the Government in the fisheries area, as I was when a Deputy in the previous Dáil. We are losing the plot and if something is not done quickly, there will be no fishing industry and there will be substantial emigration from the coastal communities. The one ray of light in the coastal communities, whether in Waterford, west Cork, Connemara, or Donegal, is that we have natural resources in abundance. Instead of promoting and developing them, actions at Government and Department level are paralysing them and killing them off. That is where we are at. There is no point in saying otherwise. I have been saying this ad nauseam for the past ten years as a Senator or Deputy and I will continue to say it. Many of the feathers have gone from the goose that laid the golden egg. She is in serious decline and will be dead shortly if something is not done.
I join other members in congratulating Ms Mhic Giolla Chuda, Mr. Flynn and Mr. Feenstra on their presentation. I apologise for my late arrival but I had to listen to words of wisdom from my leader on yesterday's budget.
The IFA aquaculture committee certainly has played its part in promoting aquaculture in Ireland. It is a pity Senator O'Donovan, my colleague from west Cork, would not take a leaf out of its copybook and get his Minister and his Department to listen to common sense once and for all. Actions speaks louder than words. It is no good coming to this forum saying what should be done to promote aquaculture. We should insist that it be done. Politics should be thrown out of the window as far as the development of aquaculture is concerned. Members should join together to ensure that the goods are delivered. This can easily be achieved. When a vote is called in the Dáil, party politics divide Members. Therein lies the problem. It is shocking to think that bureaucracy and red tape are responsible for the long delays in issuing licences. What is happening is pure nonsense. Any Minister who stands over such delays is not fit to be in charge of matters relating to aquaculture or marine. No one should be fooled; a vast industry is being strangled for the want of efficiency.
A moratorium should be placed on the use of mussel rafts. A certain amount should be allocated to each area. If a farmer allows 30 cows to graze on an area of grass which can only support ten animals, he will end up with an inferior product. The position is similar with regard to the quality of mussels. People seem to have become greedy. Our waters are being choked with mussel lines and there is not sufficient plankton to allow mussels develop fully. Many of the mussels being caught are quite small. If one asks for a plate of mussels in any restaurant in west Cork, 25% of those with which one will be presented will be duds. Common sense indicates that this is due to overproduction. Those fishing for mussels have a responsibility not to be too greedy and should not put 100 mussel lines in areas where there should only be ten.
There is also a scientific aspect to this matter. Red tide has a damaging effect on mussels and last year it led to the mussel factory in Bantry being closed down for three months. What is causing this phenomenon? Information relating to it could be disseminated to those in the industry under the direction of the Minister concerned.
The aquaculture industry is responsible for one third of all seafood consumed in Ireland and gives rise to 11,000 direct and 16,000 indirect jobs on the west coast. Some 30 jobs areas are needlessly lost in coastal areas each month because the Government is failing to deliver for the aquaculture industry. That is the kernel of the problem.
I admire Mr. Feenstra for stating that there will be no farmed salmon available in this country in five years time. The Norwegians, Scots and others will come in and take over. We should be producing fish that can be sold on the Irish market.
I wish to refer to priority access in the context of EU-approved "Ireland: Operational Programme "European Fisheries Fund 2007-2013". Priority 1 of this programme is the adaptation of the EU fishing fleet, a matter about which we have heard a great deal — God help us — and the policy relating to which has not worked too well. Priority 2 relates to aquaculture, inland fishing, processing and marketing of fishery products. It is stated that this is not applicable. It is a sad state of affairs when the European Union has not included aquaculture under this operational programme. Why is it not possible for Irish MEPs to fight this and to ensure that money is made available in respect of aquaculture and inland fishing in this country?
While relatively small in European terms, the Irish aquaculture industry makes a significant contribution to the Irish economy by creating employment in remote coastal communities and generating export revenue. We have the most suitable waters in the world for aquaculture development. It is sad that we cannot grasp the opportunity to ensure that the aquaculture industry is developed to its full potential.
Without co-operation from the Minister and his Department, particularly in the context of the bureaucracy under which it takes 17 months to process a licence, we will be obliged to ask the question "Where are we going with no bells on our bikes?" According to the Minister for the Environment, Heritage and Local Government, and after yesterday's budget, plenty of people will have bikes. However, I do not believe Senator O'Donovan or I will be able to use a bike because it would take us approximately one week to cycle from Bantry to Dublin. We would never get here in time to participate in the business of the Dáil.
The Deputy should concentrate on fish.
I would be doing most of the pedalling.
We might obtain a bicycle made for two. We would look neat going down the street on a bicycle made for two.
I ask members to desist. We are discussing an important issue. This is not a joke.
Why have fish farm workers begun to emigrate again? Why has the small amount of capital aid of €20 million per annum recommended in the Cawley report been axed? What is happening is a sad indictment of the Government. Why is Ireland falling behind its competitors in the context of modern regulation and linking performance output? Why is the Government constructively dismissing the aquaculture sector and why are jobs being lost?
The situation is serious and must be remedied. Our guests have highlighted the injustices being visited upon the industry. Those justices must be curbed here and now. This matter must be taken up with the Minister for Agriculture, Fisheries and Food. At the very least, the Minister of State at the Department, Deputy Killeen, should come before the committee.
We agreed to do that earlier in the meeting.
Mr. Jan Feenstra
A question was asked about profits, production costs and volumes. There are two aspects to profits — production costs on one side and price on the other. Production costs in Ireland are significantly higher than those in Scotland and they are almost double those that apply in Norway. There are many reasons for this, including lack of scale, complications, etc. We can compensate for this to an extent because on the continental market Ireland's image as a food supplier is very favourable. Aquaculture is not merely men dressed in souwesters and Wellington boots; it is a food industry and we have a very sophisticated food processing plant.
We are able to obtain a little bit more for our products and this compensates to some degree for the higher production costs. However, we are reaching a stage where it is no longer compensating for increases in those costs. The main driver of costs in our business is the biological performance of the stocks we rear. If the fish do not grow fast, we are uncompetitive. We are uncompetitive in that aspect of the business because we do not have sufficient licences. We cannot fallow and separate stocks. Just as one would not grow potatoes in the same field year after year, we do not put salmon side by side with previous generations. It is important to apply these fundamental biological principles to break parasitic cycles and all kinds of potential fish health issues. Some of our sea farms are organic and have fish that are reared to very high standards, which requires even more space. It is ultimately a matter of capacity. Our industry has been profitable historically, which is why we are still here.
What are the start-up costs?
Mr. Jan Feenstra
They are very high because, believe it or not, a salmon requires three years to grow to maturity. It takes 40 days to grow a chicken. The money is tied up for a long period and the hatcheries will probably contain three generations of fish before harvesting commences.
Ms Cliona Mhic Giolla Chuda
On profitability from the perspective of oyster growers, it takes three years to grow an oyster. Effectively, we do not get a return on our investment for five years. We are at a disadvantage because we have to transport our produce to France, Italy and other continental markets but we are able to compete profitably because of our quality.
At present in Ring, a small rural parish, approximately 70 people are employed full-time in the oyster industry. We are one of three major companies in the area. We want to develop but are awaiting extension to our sites and capital investment. If we receive that, we will be able to increase employment by at least 30% over the next three to five years while remaining profitable. If we do not get movement on the issues we have raised we cannot develop.
It is worth noting that many people have been through this process and no objection has been raised by members of the public to any aquaculture licence renewal or extension. That says a great deal about the way we have integrated the industry with the rural community. Thus far, we have received nothing but reports and promises. The stack of reports we have received on the aquaculture industry have been glossy and beautifully presented but we have not seen action. We want action rather than words at this stage.
Mr. Richie Flynn
In regard to Deputy O'Donovan's query on Bantry and the Port of Cork, that is an issue of concern for our local members. I understand they have been in contact with the Deputy about mussels and processing. The IFA fought a long and ultimately successful battle to take inner Bantry Bay out of the control of Cork County Council, which was unique in this country in having foreshore rights. We will have to work on the proposals currently before the Houses. I know from experience that the landing facilities in Bantry for the mussel sector are appalling. They are Victorian in vintage but since the late 1980s the industries in the area have worked with local representatives to have a new pier constructed. This would have to be a priority in any proposed change of control or ownership.
A new pier has been announced in every one of the past ten elections.
Mr. Richie Flynn
Deputy McHugh asked whether job creation in the sector would make an additional charge on the Exchequer. The Government is committed to a plan on foot of the Cawley report which includes €100 million in grant aid over the lifetime of the NDP. We have been told at every meeting of the Cawley implementation group and at meetings with Ministers and civil servants that the plan remains Government policy. It has been in place for two years and no additional money will be spent.
If the bureaucratic problems are to be addressed, civil servants must be allocated to this area. When the Tánaiste was Minister for Agriculture, Fisheries and Food, she promised us directly that resources would be invested in dealing with the licensing backlog. We want that promise to be fulfilled and the manpower allocated immediately. A principle officer from the Department must be assigned to a dedicated role in the development of aquaculture.
There have been extensive discussions on decommissioning in sea fisheries. In fairness to our colleagues in that sector, they are focused on managing a difficult problem rather than developing their industry. Our priority is development and we need a high level civil servant who is dedicated to helping us develop the sector.
It is clear from an ESRI study conducted in County Donegal that every euro invested by the Government in aquaculture has brought a return of €7 per annum to the Exchequer. One committee member referred to this as a "no-brainer". The ESRI has also produced a figure for induced jobs in the fisheries sector. If 2,000 jobs are created in aquaculture, an additional 7,623 induced jobs will ensue. We are not seeking grants from Enterprise Ireland or asking to move mountains of money. We simply wish to solve a bureaucratic problem to create jobs. We observe with a wry smile the announcements by Ministers of a few jobs here and there. These are important to rural areas but we know how much employment we can create. At present, the sector employs more people directly than Microsoft in rural and peripheral areas which do not interest multinational computer companies. Members will be aware that a steady job in a rural parish is worth a great deal.
Aquaculture, particularly shellfish but also trout production, is an important feature of the French coast. In July, the French Presidency set out as a talking point a memorandum on the development of aquaculture in Europe. This was a very positive document which dealt with all the issues arising and concluded that aquaculture should be supported in every possible way. The memorandum was circulated to every member state and was signed by 18 ministers with responsibility for agriculture and fisheries, but Ireland was not among their number. We have written to the Minister to ask why he did not add his signature. Why will the Government not come out in support of the sector? This would have been a simple response. The memorandum is clear, constructive and uncontroversial and nobody could disagree with it, yet our Minister has not answered us. The clearest message we can give to the committee is "sort out the licensing problem". It will not cost any money but will create jobs. It is a simple equation. It is what rural Ireland and peripheral areas need and we can deliver it. We are waiting for that to be done. We want to give people jobs. We want to provide products to our customers, expand our industry, create new products and be a sector of which everyone can be rightly proud. It is difficult to maintain pride in this sector when one is knocking one's head off a brick wall in terms of bureaucracy.
As the fishing representative from the Irish Farmers Association, does Mr. Flynn have projected figures on the potential for job creation in the industry? Will he indicate those figures and outline the period they cover and the cost involved? Does he have figures along that line?
Mr. Richie Flynn
We operate, along with the rest of the industry, under the Government policy, which is the Cawley plan signed by the Taoiseach in January 2007. Under it we are considering an investment of €100 million of public money over five years. That is 40% of a much bigger package, 60% of which we, as an industry, would have to come up with and attract investment. That is an additional €120 million, to which we, as an industry, would commit to create 2,000 direct jobs, which would create a further 7,600 jobs within the sector by 2015. The Government, for its own reasons, which baffle us — and Deputy Sheahan pointed this out — decided not to ask Brussels for any European Union money for the aquaculture sector. We must wait several weeks for the non co-funded fisheries operational programme. We are in the lap of the Gods or, more precisely, in the lap of the Department of Finance, because all of that money will now have to come from the Exchequer. We know the challenges being faced. We read the newspapers and saw the coverage of the budget announced yesterday. We understand that, but as we stated earlier in the presentation, the Cawley plan suggests €20 million a year of public investment in the sector. If we got €10 million in 2009, we would make a start on that massive job creation and development programme. We are committed to that and we want to ensure the Government is also committed to it.
Is it agreed that the committee will inform the Minister of the presentation made by the group and the views of the members? Agreed.
As an addendum to that, the Minister must be brought to task for not signing the European memo.
We will invite the Minister to come before the committee.
It is a disgrace that it was not signed on behalf of this country.
We should invite the Minister of State, Deputy Tony Killeen, as well. He is responsible for this sector.
It is the Minister of State, Deputy Killeen, we will invite to come before the committee.
Not the senior Minister.
No. The Minister of State, Deputy Killeen, is responsible for the fishing industry.
On behalf of the committee I thank Mr. Flynn and his colleagues for their presentation and for answering the various questions put to them. The members of this committee will do whatever we can to help resolve the current difficulties.
The next meeting of the committee will be held on Wednesday, 22 October 2008 at which the Minister of State, Deputy Sargent will be in attendance to discuss the issue of food labelling.