The purpose of this short Bill is twofold. Firstly, it is to enable An Bord Iascaigh Mhara to continue to borrow money from the Central Fund as it has been doing for many years and secondly it is to broaden the general powers of the board to borrow from other sources.
The Sea Fisheries Act, 1952, under which the board was established enabled the Minister for Finance, on the recommendation of the Minister for Agriculture and Fisheries, to advance money to the board from time to time out of the Central Fund but the Act also restricted to £500,000 the aggregate amount that could be so advanced. After some years it became clear that the upper limit of the borrowings was no longer high enough. The limit was, therefore, raised to £1 million by an amending Act in 1956 and to £3 million by a second amending Act in 1959. The 1952 Act also provided that the board must repay to the Minister for Finance the advances from the Central Fund in half-yearly instalments with interest. A 20 year repayment period is being operated for the repayment of each advance. The board use the funds advanced to them from the Central Fund to give loans for the purchase of fishing vessels and the repayments by the vessel owners provide the funds that enable the board to repay the advances from the Central Fund.
The accumulated amount of the board's borrowings from the Central Fund since their establishment in 1952 has now reached the figure of £2,999,563 or for all practical purposes the limit of £3 million at present permitted by the Acts. The fact that the sum of £1,281,328 has been repaid or written off leaving the board's net indebtedness at £1,718,235 cannot be taken into account because of the wording of the 1952 Act which relates the maximum permitted figure of £3 million borrowing to the aggregate of all the borrowings over the whole period irrespective of what has been repaid.
For the continued development of the fishing industry it is essential that the board should be in a position to continue to make loans available for the purchase of fishing vessels and fishing gear. For that reason it is proposed in this Bill to raise the maximum amount of the board's permitted borrowings to £5 million and to provide that the new figure relates not as heretofore to the total amount borrowed but to the amount the repayment of which is outstanding at any time. The board's borrowings are at present running at about £500,000 a year and so the increase in the upper limit should provide for the board's needs for the greater part of the present decade.
While the foregoing outlines the essential purpose of this Bill, the opportunity is being availed of to provide for a useful amendment to one other borrowing power of the board as it is thought that the amendment may possibly be of advantage at some time in the future. Section 22 of the 1952 Act enables the board with the consent of the Minister for Agriculture and Fisheries given after consultation with the Minister for Finance to borrow temporarily by arrangement with bankers for current purposes. Those borrowings have in practice been limited to occasional small bank overdraft of sums not exceeding £50,000.
It has been felt that the provisions of Section 22 of the Act are too restrictive in confining the board's borrowings (other than its borrowings from the Central Fund) to borrowings that are temporary, that are only through bankers and that are only for current purposes. In case that at some time in the future more flexibility may be needed, the opportunity is being taken in the Bill to relax these restrictions by means of the provision in Section 2 of this Bill which will enable the board, if it so desires, to negotiate both long term and short term loans. It will also remove the restriction that borrowings must be arranged through bankers and finally it will make it possible for the board to borrow for capital as well as at present for current purposes.
For the benefit of those Members of Seanad Éireann who may not be fully familiar with the role of An Bord Iascaigh Mhara in the fishing industry, I would like to outline briefly what the board's functions are at present. The general powers of the board were set out in the 1952 Act in very broad terms but the primary purpose of the board's establishment can be described as the assistance and improvement of all facets of the sea fishing industry. In its early years the board actively engaged in a number of aspects of the fishing industry including the purchasing, processing and marketing of fish but as the years went by it gradually became clear that some of the board's activities were no longer necessary and that it should concentrate more on promotional and advisory activities. In 1962 the board's role in the furtherance of Government policy in modern conditions was set out in a White Paper entitled "Programme of Sea Fisheries Development". As a result the board has withdrawn completely from active participation in fish processing and marketing and now operates in the role of a development body for the industry. The board's present functions include the administration of a Marine Credit Plan under which grants and loans are given for the purchase of fishing boats and gear; the provision of an advisory service to fishermen to improve fishing techniques and promote co-operation among fishermen: the development of a system of speedy inspection and repair of fishing vessels; the development of markets at home and abroad for fish and fishery products; the encouragement of private investment in worthwhile fish processing undertakings; the operation of three boatyards for the building and repair of fishing boats; and the operation of ice-making plants at some fishing ports where such facilities are not provided by private enterprise.
The success of the board in these fields can be measured by many sophisticated yardsticks but surely the best indication of the thriving nature of our sea fishing industry at present is the ever-increasing demand by fishermen for more and bigger fishing boats. Many fishermen with the requisite experience of sea fishing are anxious to invest their savings in boats of their own while many others who have proved successful in operating their own boats are now anxious to turn over to larger vessels. This active demand for boats is without any doubt the best evidence one could wish to get of the progress being achieved in the industry and of the future that lies ahead for our progressive fishing community. There is no question but that this demand for boats must continue to be fostered by the grants and loans scheme operated by An Bord Iascaigh Mhara. The grants can continue to be made available from funds provided in the Fisheries Vote each year but the scheme of loans for the purchase of fishing vessels can be continued only through the provisions of the present enabling Bill. It is for this purpose that I recommend the Bill to the House.