I am joined by Dr. Cecil Beamish and Ms Josephine Kelly, with whom the majority of members will already be acquainted. I am glad to note the presence in the Visitors Gallery of Mr. Richie Flynn from the IFA aquaculture section.
I thank members for giving me this opportunity to address the Joint Committee on Agriculture, Fisheries and Food. Like most other sectors of the economy the fishing sector is experiencing difficulties at present. I intend to concentrate my address on existing key issues and some important developments coming down the tracks.
I have consistently expressed the view that the most critical issue for the fishing sector is the impact of progressively reducing quotas, which has been the pattern over several years. This reflects the reality, supported by scientific evidence, of the decline to dangerously low levels of many fish stocks of importance to Irish fishermen. The view of many Irish fishermen that some stocks have recovered dramatically does not at present enjoy scientific support. The species that has attracted most headlines has been cod, although other important stocks such as whiting, sole and herring are also in need of rebuilding.
My aim is to restore our fish stocks to high levels and a healthy state to sustain our industry and coastal communities. It is generally accepted that effective management and conservation measures need to be adopted at EU and national levels to rebuild our fish stocks and ensure a viable and sustainable livelihood for our fishermen.
This year we faced a severe range of cuts across many of the commercial stocks on which our fleet relies. After careful consideration of the scientific advice for these stocks, I sought increases on the proposed quotas where I was satisfied that the state of the stock could sustain a higher catch level. I accepted cuts on stocks where the science was strong and created cause for concern. In the final package, a balance was struck that will give our fishermen whitefish opportunities to the value of €202 million for 2009, an increase from €194 million in 2008. In the final package, the delivery of additional quotas for the main commercial stocks of importance to Ireland through the invocation of the Hague preferences on 11 fish stocks around Ireland was critical to provide good fishing opportunities for 2009.
The Hague preferences agreed by Heads of State in 1976 give Ireland additional quota in certain species and as such are fundamental to ensuring relative stability. As they give Ireland a bigger share of the traditional stocks around our seas if these are at low levels, they have become increasingly important as quotas decrease. The preferences came under sustained attack from several member states this year and their removal had been identified as a real risk with serious consequences for Ireland given that they almost doubled Ireland's cod quota in the Celtic Sea and increased the quota in the Irish Sea by some 40%. I cannot emphasise enough the difficulty we faced on a number of fronts in regard to the Hague preferences and I was both pleased and relieved that we have been successful in our efforts to defend an issue of critical importance for Irish fishermen.
On the pelagic stocks, the total fishing opportunities available to Ireland is 137,000 tonnes in 2009. Reflecting the poor state of the herring stocks in our waters, total allowable catches for these stocks were reduced. Irish fishermen brought forward a rebuilding plan for the important Celtic Sea herring stock which was adopted by the Commission and commits to sustainable fishing practices and the rebuilding of that stock to the levels last seen in the late 1980s. For 2009 we secured a 33% increase in mackerel and a roll-over in the 40,500 tonnes of horse mackerel quota. These stocks are the economic drivers of the pelagic fleet and will copperfasten the future viability of this part of the Irish fleet.
The Commission proposed a closure on all whitefish fishing in the waters off Donegal. These measures would have severely impacted on our whitefish fishermen in the north west. Following intensive negotiations, a package of measures was agreed that both delivered strong conservation measures for the cod, whiting and haddock stocks in decline while facilitating the continuation of important fishing activities for the Irish fleet. Agreement was secured on the continuation of whitefish fishing in the area with the use of larger mesh gear. In this regard, following intensive efforts by Ireland a concession was secured for smaller vessels whereby the mesh increase was not as severe.
Following the adoption of the total allowable catch and quota regulation at the December Agriculture and Fisheries Council and the cod recovery plan at the November Council, the introduction of new management arrangements for fishing effort was necessary at national level. This effort regime is applicable to the fishing fleets of all member states fishing with specified fishing gears in a number of areas, including for the Irish fleet areas VIa, north west of Ireland, and VIIa, the Irish Sea. Under these regulations, Ireland and other relevant member states are required to introduce and implement a licensing regime to manage its allocation of fishing effort and days at sea limits. Following consultations with representatives of the Irish fishing industry, I introduced a pilot system of authorisations and allocations of fishing effort for the period 1 February 2009 to 30 April 2009. I appreciate that the introduction of these new conservation measures are a considerable challenge and I have established a steering group involving the Federation of Irish Fishermen, The Irish Fisherman's Organisation, the Department and its agencies to provide support to the industry in regard to the practical implementation of these new measures. The effort allocations already made were done on a pilot basis and I remain happy to make amendments where proposed by the Federation of Irish Fishermen within the EU legal framework that has been established.
The steering group has concentrated on ways to maximise the effort available and design methods and procedures whereby Ireland can benefit from specific clauses to reduce the impact of the effort restrictions. A number of amendments have already been introduced to the original scheme as introduced on 1 February, namely, the allocation of effort to vessels with less than ten days record and an accommodation for vessels and vessel owners who upgraded from less than ten metres to between 10 and 12 metres in overall length.
The cod recovery regulation allows member states to apply for exemptions for groups of vessels catching less than 1.5% of cod in their catches. Following an examination of this issue by the steering group, my Department has made a submission to the Commission seeking an exemption for any vessel which on an annual basis for the years 2007 and 2008 had less than 1.5% of cod in its catch. This proposal had to be evaluated by the EU STECF committee and the Commission will decide on the basis of this evaluation if it will bring forward a proposal for a council regulation seeking to support the exemption. That committee's draft evaluation, unfortunately, is not favourable to the Irish position. Of the five member state submissions, only that of Sweden received a qualified approval. The STECF has invited Ireland to submit further evidence in support of our case by 8 April and the Marine Institute is working to provide this additional information.
The cod recovery regulation also allows member states to buy back effort for vessels in certain circumstances. The first of these concerns vessels west of the French line marking the 200m depth in area VI. The regulation outlines special conditions under which fishing activities conducted to the west of the so-called new French line are not subject to the effort reductions of 25% applied in the rest of the area. The level of effort involved has been analysed and the implications arising will be considered by the steering committee at its next meeting but essentially we need to consider ways to incentivise fishing west of the line. The steering group is also examining possible measures that will have at least the same level of impact on reducing cod catches as the effort cut proposed. These measures are likely to involve a package covering the introduction of highly selective fishing gear that reduces cod catches to below 1%. The Marine Institute and BIM are currently evaluating fisheries to consider what options are available that would allow for their introduction. These will be considered by the steering group. Cod avoidance measures may be introduced involving trips resulting in a catch composition of less than 5% cod per fishing trip. This would involve the introduction of measures involving seasonal closures. The Marine Institute and BIM are also examining options in this regard.
Any increases of the fishing effort allocation introduced by a member state under article 13 must be notified to the Commission by 30 April but their implementation this year is a matter for the national authority. These measures will be evaluated by STECF and the Commission may propose adjustments in effort for the relevant gear groupings for the following year in light of that advice. The current pilot scheme is due to expire at the end of April and the options currently being discussed by the steering group centre on modifying the existing allocation arrangements to share the burden of reduced effort more equitably and on the period of time for which the next allocation should be applied.
The Marine Institute has examined in detail the management proposal by the Irish Fisherman's Organisation that all vessels are allocated 21 days each and every month, which was outlined to this committee at a recent hearing. The institute's conclusion is that if the proposal was to be adopted, the effort allocations would exceed the total effort allowed to Ireland under the regulation by factors of five and ten in areas VIla and VIa, respectively. In practice, we would have to close the fisheries in both areas after a very short period as all the available effort would be used up and fishermen would be prevented from fishing for whitefish for the rest of the year. I do not consider this to be a practical option.
The current regime for sea bass management in Ireland provides for a complete ban on commercial landings of sea bass and a daily bag limit for anglers of two fish. Vessels from other member states are permitted to fish for and land sea bass but are not permitted to fish inside Ireland's six-mile zone. The reason for this is the historical advice that Irish sea bass appear to remain close to the shore and are not under threat from other member state vessels. Based on consistent scientific advice, this has been the position since the early 1990s. I have asked the Marine Institute to re-examine this question and the state of stocks and make specific recommendations based on the most up-to-date scientific evidence. I will also be discussing the matter with the Minister for Communications, Energy and Natural Resources, Deputy Eamon Ryan, and the Minister of State at that Department, Deputy Seán Power, later today, given that this is an important angling species. In the current difficult circumstances facing the fishing industry I am anxious to consider all reasonable proposals from them, including those on sea bass.
The issue of new control regulation has been discussed at length by the Joint Committee on European Scrutiny previously. Most of the members present attended that meeting and I do not need to go into the matter in any great detail because we have already discussed it. However, there are elements which are positive and fishermen have relatively little to fear from some of them. There are elements within it which must be changed. These include the extension of the VMS system and electronic logbooks to all vessels of 10 m and upwards in the fleet, the proposed reduction of the margin of tolerance in logbooks to 5%, the mandatory requirement regarding landing times and full inspection coverage at designated ports. There are other elements of the proposal I will be seeking to change to take account of the impact of the new arrangements on fishermen. I will continue to engage with the Federation of Irish Fishermen with a view to delivering a balanced control regime which delivers sustainable fisheries and is not overly burdensome on fishermen. I am also very concerned about the increased administrative burden involved in the new proposals both for the industry and the State and I will be seeking changes to help to lighten that load on all concerned
From a media perspective, the main issue that has received coverage relates to the proposal to count catches in recreational fisheries against TACs and quotas. From a stock conservation perspective, the outtake by recreational fishermen in other member states can be significant and is not recorded or assessed. As I mentioned, the Minister for Agriculture, Fisheries and Food, Deputy Brendan Smith, and I are meeting our colleagues, the Minister, Deputy Ryan, and the Minister of State, Deputy Power, later today and this particular aspect of the proposed regulation will be discussed with them. The particular article was discussed at a Council working group meeting last Friday and it appears there is a significant divergence of views on the subject. I want to be clear that I will not be supporting provisions that are excessive or impractical. I will be seeking strong powers for coastal member states to effectively police waters under their control. We must seize this opportunity to put a stop to illegal fishing which, if left unchecked, will destroy fish stocks and the livelihoods of coastal communities dependent on fishing.
Regarding administrative sanctions, the proposals for the new control regulation allow for the application of administrative action or criminal proceedings in conformity with national law. In the past the possibility of introducing administrative sanctions for fisheries offences in Ireland was comprehensively considered, including an examination of practices in other member states, at the time of the passage of the Sea-Fisheries and Maritime Jurisdiction Bill through the Oireachtas. The position taken by the Minister at the time was based on legal advice from the Attorney General. I consider that under the new proposal, there may be a possibility of introducing administrative sanctions and a penalty points system for Irish vessels. I have sought the advice of the Attorney General to determine if the current Commission proposal could accommodate their introduction in Ireland. It is worth noting, however, that the proposal from the Commission envisages penalties up to a maximum of €600,000 for repeated serious infringements and, under the penalty points system, the suspension of a fishing licence for prolonged periods, or even its permanent withdrawal. These penalties are substantially higher than the level provided for in Irish legislation.
The Common Fisheries Policy is the fisheries policy of the European Union which was first put in place in 1983 and has been subject to reviews every ten years. The next review is formally scheduled for 2012. Work has commenced in preparation for the review with the publication of a Commission working paper in September and the launch of a phase of analysis and consultation. The French Presidency also held an informal fisheries meeting in September on the reform process. A public hearing of the fisheries committee of the European Parliament was held on 10 February on the reform of the CFP, the highlight of which was a speech by Commissioner Borg. It is clear from that speech that absolutely everything within the current framework of the CFP is open for discussion, including the TAC and quota system and relative stability. The whole question of the Hague preferences is also open for negotiation.
Regarding quota allocations, the position is that Ireland's share of the main fish stocks was set in the early 1980's when fish stocks were shared out between EU member states. The share allocations were based on catch records and reflected the fishing levels of the Irish fleet and those of other member states at the time. The percentage shares held by each member state have generally remained the same for over 20 years under the principle of relative stability. It has been a priority of successive Ministers for Agriculture, Fisheries and Food to try to have these shares improved. During a review in 1992 and again in 2002 substantial efforts were made to push Ireland's case for an increased share of important stocks, but without success. Ireland received no support from other member states for changes in the allocation keys for the share out of stocks. The practical reality is that to achieve an increase in Ireland's share of catches other member states would have to take a cut in theirs. This is all the more difficult to achieve when the total allowable catches of all the main commercial species are falling. The reality is that achieving support for such an outcome at the December Agriculture and Fisheries Council, at which quotas are fixed for the following year, is not deliverable.
Notwithstanding the fact that the TAC and quotas system and relative stability are up for discussion as part of the CFP review, at this point the European Commission and other member states largely take the view that quota shares are fixed and not subject to ad hoc changes. This may change. I issue a word of caution that other member states have their own agendas and would not only like to see their own share increase, but would also like to see an end to the Hague preferences which we have had to fight tooth and nail to defend every year at the December Council meeting. The Commission is expected to publish its Green Paper on the review which will be up for debate at the April Agriculture and Fisheries Council. This will be followed by public consultation later in the year and a legislative proposal next year with a view to adoption in early 2012. I will be working closely with the Federation of Irish Fishermen, other stakeholders and like-minded member states to strengthen the current policy for the betterment of fisheries.
The Cawley report, even in these challenging times, remains the strategic blue print for the seafood industry. The seafood strategy implementation group was set up in 2007 under the chairmanship of Dr. Noel Cawley. It comprises stakeholders from all sectors of the industry, as well as representatives from the relevant state agencies and my Department. The group is charged with overseeing and driving the implementation of the recommendations contained in the Cawley report, including setting priorities. Substantial progress has been made on a number of fronts, including the decommissioning scheme, one of the key recommendations of the Cawley report. A total of 46 vessels are being permanently removed from the fleet at a total cost of €36.6 million. Together these vessels represent total decommissioned capacity of almost 7,000 gross tonnes and 19,356 kilowatts. A significant economic benefit, currently estimated at some €22 million, will accrue to the remainder of the fleet from the redistribution of the prawn and whitefish catch previously taken by the decommissioned vessels.
Other progress includes developing marketing opportunities for Irish seafood, work on the establishment of the seafood development centre, publication of a draft lobster management plan, establishment of the step-up programme to incentivise consolidation and prioritise support for the development of seafood businesses, ongoing development of an industry focused environmental management system for the wild capture seafood sector and encouraging the use of environmentally friendly and fuel efficient fishing by way of grant aid and increased training opportunities in the sea fisheries, aquaculture and shore-based sectors. The group meets regularly and a meeting is planned for next week on 9 April.
The implementation of the Cawley strategy involves State support for the sector and the availability of funds will impact on progress in certain areas. However, many of the measures involve improved practices, improved organisation, better co-ordination and co-operation and can be delivered without state or EU aid. The key to delivering many of the recommendations involves a proactive approach by the industry, agencies and my Department which would work together to deliver change and progress as set down in the strategy.
I will finish on the question of marketing. In July 2008 I established the Irish seafood market initiative group in response to industry concerns arising from falling quay wall prices, rising fuel costs and a view that imports were impacting on demand in the domestic market for wild Irish caught fish. I appointed Mr. Jason Whooley, CEO of BIM, as chairman of the group and appointed 12 industry members. The group was set up to develop a shared understanding of key market issues between fishermen, processors, co-ops, retailers and their representative organisations, to determine actionable outcomes which will maximise opportunities in the seafood market for the fishing fleet, processors and retailers and to focus on the key areas of awareness and labelling of Irish seafood and its route to market.
In terms of awareness and labelling, the group noted a lack of consumer awareness of the range of Irish fish available, with salmon and cod together accounting for 60% of the domestic market, as well as a lack of awareness of imported fish versus Irish caught or farmed fish arising from labelling issues. Consumer research highlighted a distinct consumer need for information on food origin and its source. The report recommends that, through an expansion of BIM's quality seafood programme, Irish seafood be made more easily identified and differentiated. This will work in tandem with an initiative in partnership with industry to promote and increase awareness across the range of available, yet under-utilised and less recognised, Irish species such as whiting, haddock, megrim, monkfish, hake, prawns, pollock, mussels, oysters and crab. The initiative will also work to have seafood included in the draft proposal being prepared by the European Commission aimed at consolidating and upgrading food labelling legislation.
In terms of route to market, the group highlighted the difficulties experienced by producers in competing against imported products, while also acknowledging the needs of retailers to ensure continuous supplies of seafood are available to meet market demand. The group agreed that while there were a number of issues involved, the traditional industry company structures were a key constraint in developing the Irish market. It was agreed BIM should take the lead role in bringing forward proposals for developing a route to market strategy for the seafood sector during early 2009. These proposals would take into account each step in the chain from producer, processing and distribution to the end customer for both domestic and export markets and make recommendations on optimum structures to drive competitiveness and value-adding capability in the seafood sector.
I would like to mention the other initiatives. The European Seafood Exposition will be held in Brussels from 28 to 30 April, with 21 Irish seafood companies participating in the Irish Pavilion. Bord Iascaigh Mhara is working with the pelagic sector on market information exchange and the seafood energy assessment and management action programme, SEAMAP, with the objective of reducing processors' energy costs by between 10% and 20%. In regard to seafood marketing, the Government has decided to transfer the marketing and promotion function of Bord Iascaigh Mhara to An Bord Bia. The official transfer is due to take place on 1 June.
We are facing a challenging time in fisheries, as elsewhere in the economy. The fishing sector is undergoing change, some of which is enforced by factors over which we do not have full control. The introduction of conservation measures is necessary to rebuild fish stocks and deliver a long-term future for coastal communities. I am committed to continue to work closely with the fishing industry to ensure the measures introduced are effective and serve to maximise the available fishing opportunities for fishermen. I am also committed to working with industry on a range of other measures and initiatives that will deliver change and maximise the potential of this important industry. Collectively, we are delivering an industry that is market focused, efficient and effective. The fishing sector of the future must be environmentally sustainable, profitable and flexible in its ability to face future challenges.
