I am grateful for the opportunity to review developments in the fishing industry and to set out to the Seanad my policy objectives for the sector and my strategic approach to delivering on those objectives. Before doing so I will address some of the points raised by Senators.
I would also like to pay tribute to Hugh Coveney. He is a great loss to the Oireachtas as he was an honourable, decent, obliging, effective and friendly public representative. All Members of the Houses got on well with him. I conveyed my concern and upset at his tragic loss to his wife and family.
Senator Fitzgerald spoke about fishing in the south, west, north and east in his tour of the country. However, there is nowhere more important for the Senator than Dingle. He mentioned the achievement of over 5,000 tonnes for the small boats. We had an earlier promise of 3,000 tonnes and I got that enlarged to 5,400 tonnes, which was important. We are working as a priority to get the licences out as quickly as possible. Over the past couple of weeks about 250 licences have been issued and we hope to complete the issuing of the licences within about two months. This is a major improvement because it will leave many small fishermen in a more secure position for the future, apart from which each tonne is worth money.
Senator Fitzgerald also talked about herring. He is right when he says there is a major problem with regard to the level of supplies which are allowed into the EU without hindrance. At last week's Fisheries Council meeting we managed to have the proposal reduced from 23,000 tonnes to 12,500 tonnes for this year, which is a major improvement.
The tuna ban is an important issue. We have succeeded in having the decision put off until next June, but there is an overwhelming majority in favour of the ban. We are concerned to have a transitional period and to ensure that our tuna fishermen can continue to fish. There is a cost in providing for that in terms of training and reequipping. The Commission and the Presidency are taking up the line we have put forward. The only country which really supported us is France. Italy is in a similar situation but it has already converted about 500 out of its 650 vessels. France and Italy also differ from us in that they need the approval of the Community to use the funds they have to convert their vessels and compensate their fishermen. However, we need the money as well as the approval.
Senator O'Donovan referred to the development of Union Hall, Portmagee and other areas. I am glad he did because I took an interest in those areas when I was Minister for the Marine in the past. I believed that worthwhile jobs could be created there and I had a long battle over it. It is satisfying to see the developments which have taken place because those who promised development delivered, they delivered jobs in areas where there are few other opportunities. Economists and others should recognise the importance of such jobs in these areas.
Senator O'Donovan referred particularly to the harassment of fishermen off the south-west coast. I will return to that matter later. He mentioned an incident which occurred this morning 70 to 80 miles out and I would like to have any information the Senator might have on it.
With regard to promulgating the new incentives scheme, we will do so once we have the total package. We must get EU approval — I do not see a problem with that — and we hope to have it in the next few weeks. We also want to develop a grant aid package to go with it. We are working on that and we want to try to do the two at the one time.
If I was getting too much praise, Senator Caffrey brought me down to earth quickly by saying I was not doing enough to help the marine sector. I work most nights until 2 a.m., I get up about 7.30 a.m. and I work on this job all those hours so I do not know how much more I can do — I will have to split myself into two or get some other assistance. I have done the best I can while I have been here and I have only been back in this job for a short time. He said that this was the view in the north-west and I am sorry that is the case.
He pointed out that 90 per cent of our territory is under water and I have made this point strongly also. I have had meetings with the Marine Institute — I had one at lunch time today — about technology opportunities. We have moved this a long way and I have established a special relationship with Harland and Wolff in Northern Ireland based on those technologies.
The Senator was right to talk about the major step in March 1995 towards a marine policy. He pinpointed my failings and he is probably right in that I have failed to broadcast sufficiently what we are doing and how much we have done in a short time. One difficulty is that if one tries to get things done one does not always do as much PR as one should. I have clearly failed in that because the message has not reached Senator Caffrey and I will have to ensure that it does in future. We have a thick volume of press statements, each only a page or two, all of which record achievements by the Department. However, we have to get across to people what is happening.
I set up the Marine Institute. That was a far seeing move because it is having, and will have, a big influence. Today I discussed with the institute the further steps which should be taken. I spent much of my life working on research so I know a lot about it and am reasonably well qualified in the field. I agree with the Senator that it is an important area for the future as well as the present. If this country does not recognise that and back the people doing research we will miss out on much of our potential. While we may be doing well, without it we will only achieve a small part of what we could achieve.
The institute's document Towards a Marine Policy comprises the published proceedings of five seminars and consultations held around the country in 1995, as the Senator said. It is not a policy document but a consultation document. I am moving forward all the issues identified in the seminars. One of them was renewal of the whitefish fleet. We have started an historic package for the purpose; this is long overdue. Money does not fall off a tree, however, it takes a lot of hard work to get it. The Government is reducing the tax burden on the individual and in doing so it is cutting out incentives. We got through the package against that background and it was not easy because the broad thrust of policy is to get rid of as many of these schemes as possible. Nonetheless the Government recognised that this was a special area and for the next three years it will provide this incentive. That was one of the major issues raised in the report.
I launched the new national research vessel towards the end of last year. It was an important development and will have a huge influence into the future. I hope to reorganise the inland fisheries services soon. We have also been working on other matters, such as fish processing and a seaweed strategy, and have made certain developments and improvements for them all.
Senator Chambers mentioned the need for targeted investment in fishing and I agree with him. He specifically mentioned the need for helmsman's training in aquaculture and pointed to its benefits. I support that idea. There has been much growth in aquaculture since the mid-1980s. Mayo is an important area in that regard. We would be glad to bring the Department, BIM and the county council together to review the potential for development in the Mayo area and we will also examine the training for aquaculture boat handling.
On training generally, I announced some days ago that BIM is to locate a new training centre in Castletownbere, which is vital for the south-west region. It will not take from the Greencastle centre but it will bring the new training facilities closer to fishing ports and regionalise them.
Senator O'Toole said there was a lack of research and development and that it is important to push ahead with it, and I fully agree with him. He also said controls were essential. One proposal I have pursued with the EU, which is coming into operation in July, is the use of satellite surveillance. We are only able to do it now because we obtained Community agreement, which means getting all the other nations to agree. That will be a major help. Another proposal we made was for a weighbridge in the sea, which would enable us to check boats in the fishing zone and weigh what they have coming in and going out. We cannot do that at the moment, although we can check for other things. The Community has agreed to that, which is another leap forward. It will also start in July.
Senator Finneran pointed to the difficulties with pollution, especially in inland fisheries. We are giving this a good deal of attention. I note his remarks on Donamon. We are doing a lot of things about pollution because it is crucial and we are now getting much assistance from the local authorities, the farming organisations and many farmers, though not all of them. There are some problems with farmers and the farming organisations are helping with those.
My priority is to ensure a sustainable future for the Irish fishing industry which will underpin its vitally important socio-economic contribution to the wellbeing of our coastal communities. My strategic objective is to enhance the safety and competitiveness of the fleet and the quality of landings, to maximise supply through full and effective take up of available quotas and to develop non-quota fishing opportunities.
A critical commercial imperative for the industry at this point in its development is to ensure that supply is matched to demand in terms of price, quality, availability and regularity. In addition, therefore, to improving supply — that is, fishing opportunities — we need to tackle the demand side, in other words, product quality and the markets. This will require new partnerships and co-operation between the various players including the catching sector and the processing and export sector. In the context of the strategies needed to deliver on the safety, quality and competitiveness needs of the industry, I will outline current developments in the sector.
Recent years have seen exponential growth in consumer demand for seafood within the European Union and worldwide. Very significant changes are taking place in traditional seafood markets around the world. Patterns of consumption are changing fast with a huge potential market for a wide variety of high value seafood as well as for the fresh product. Competition is intense and the liberalisation of world trade is adding to the market challenge for the Irish industry. There are significant opportunities therefore but significant challenges also. I will return to some of these later.
The Irish fishing industry has developed remarkably in many respects since the foundation of the State, despite the acknowledged historic constraints. Annual landings of sea fish in the 1930s were less than 10,000 tonnes. By 1960, landings had more than trebled and the next 30 years saw output doubling in each decade. By 1990, annual landings stood at over 200,000 tonnes of fish per annum.
In 1997 total fish landings topped over 300,000 tonnes worth over £140 million. We have already reached our 1999 target on landings. Since joining the European Community and with the establishment of the Common Fisheries Policy, the fishing industry has, despite the acknowledged constraints, made substantial economic progress. We still contend, however, that our allocated share of the fish stocks under the Common Fisheries Policy falls far short of a fair and equitable level. I will outline later my approach to the review of the Common Fisheries Policy which will take place in 2002. Various Senators mentioned the size of our waters in relation to those of the European Union. However, the EU has been expanding and consequently our waters constitute 16 per cent of the EU total, while our quotas amounts to between 5 and 6 per cent of the EU total. The same relationship holds but because the EU waters have expanded through the addition of new member states, our percentage has fallen.
The single most serious threat to the future of the fishing industry worldwide and here at home is the depletion of stocks through over-fishing. As a coastal State with a comparatively small fleet and a high level of fishing activity in our waters by other fleets, Ireland has particular concerns in this regard. Conservation of the resource requires responsible management and constant vigilance in protecting and monitoring stock levels. I can assure the Seanad that I will continue to be at the forefront in Europe in seeking demonstrable commitment by all member states to conservation and responsible management. I am also pressing for a level playing field in enforcement of the rules.
As I have said, Ireland has a small share of EU quotas and restrictions on total allowable catches will continue where the scientific advice and other considerations demand. Nevertheless, there is room for continuing development of fishing opportunities by the Irish fleet. Irish fishermen fished for blue whiting in Irish waters for the first time last year, landing around 30,000 tonnes. I am confident that this fishery will continue to expand for us and the development of processing techniques for the species will enhance its value to the industry over time.
I have mandated BIM to work very closely with Irish fish processing and exporting companies in order to maximise product and marketing opportunities for Irish fish on the domestic and export markets. I am pleased to say that good progress is being made to develop existing and new markets for Irish seafood worldwide. Fish exports have increased by over 60 per cent since 1990 hitting a record high in 1996 when their value reached £252 million. Of this, we exported £45 million worth of white fish and shellfish to Spain. I led a BIM industry trade mission to China last November which was an important new initiative, opening a number of doors and showcasing the Irish industry. I believe the mission and the ongoing follow up will produce tangible commercial opportunities for our seafood producers in the Chinese market which is the largest in the world. We have already had an exchange of technical information on aquaculture.
I am committed to delivering the necessary support for the fishing industry through targeted investment plans under the current operational programme for fisheries. I am ensuring that the ongoing investment is specifically designed to deliver on our modernisation and development objectives for the industry and for the communities which depend upon it. The programme is also delivering on much needed investment in fishery harbour infrastructure, processing and research.
Funding for Ireland under the PESCA community initiative is also supporting fishing communities to diversify and to support alternative activities. Over £11 million worth of investment will be realised under this initiative. To date over 100 projects have been approved and I will be announcing a new round of PESCA projects shortly. I am pleased to say that Ireland has been uniquely successful in Europe in our efficient and effective use of PESCA funding and is held up as an example to other member states.
As Senators are aware, the negotiations on EU Structural Funding for all sectors, including fisheries, post-1999 will begin in earnest with the EU Commission in the coming months. I will be working to maximise the allocation for fisheries in the new round, reflecting the development needs and potential for the sector. I am convinced that there is significant untapped potential in terms of employment and economic growth for the industry as a whole and for our coastal communities in particular. Senators especially emphasised this aspect in their contributions.
The whitefish fleet generates most of the employment in the fishing sector and accounts for 65 per cent of the value of fish landings. However, the age profile of the whitefish fleet is high, averaging 25 years, and is in need of further modernisation. The fleet is seriously under-capitalised and there has been no significant reinvestment for over ten years. My first priority in office was to deliver on measures for the renewal of the whitefish fleet in line with the Government's commitment in the Action Programme for the Millennium.
It was quite clear to me that the industry has to be made attractive to providers of capital if the necessary investment is to take place. The industry is a high risk sector and I concluded that it would be impossible to facilitate low cost money for the sector without special fiscal incentives which will encourage the banks, and other financial institutions as well as private investors, to support this vitally important sector.
Senators will be aware that, in the context of this year's Finance Act, I secured a package of special tax based reliefs to encourage capital into the whitefish fleet. I have also announced my plans for a complementary capital grant aid scheme for new whitefish boats. My proposals, which are consistent with EU State aid parameters, will be negotiated with the Commission in the coming weeks. I am confident that the proposed tax reliefs and capital grant programme create a new climate of opportunity and will catalyse the much needed degree of change in the whole fish sector.
My investment support strategy will help significant investment in the renewal of the whitefish fleet in the medium term. The reinvestment in the fleet will enable full and efficient quota take-up and will enable Irish fishermen to develop new non-quota fishing opportunities. Safety and competitiveness will be improved and existing employment maintained with the potential for additional jobs at sea and in processing and supply services.
The continued development of the fish processing industry is critical for jobs, growth, value added and exports in the fishing industry overall. A total investment of £22 million has been supported under the operational programme since 1994 in over 100 fish processing projects, securing existing jobs and creating over 200 new jobs. In February, I announced a further round of grant aid for fish processing projects which will deliver an investment of over £3 million and create nearly 100 jobs. Jobs will be created from development projects in the pipeline through obtaining additional EU funding. I am pursuing this critically needed funding to support these projects in order to achieve further development capacity expansion and product development in fish processing. We currently have more projects than there are resources in terms of grant aid under the programme. I am pursuing this issue as a matter of priority.
I have already referred to the challenges facing the Irish industry in the global market for herring. The competitive environment is tough and conditions can be difficult. The herring sector is a case in point. The EU and global markets are currently characterised by over-supply, low prices and changing consumer trends. I am glad of this opportunity to brief the Seanad on the action being taken to address the crisis for the Irish herring industry. Since the difficulties emerged last autumn, I have focused my initiatives on tackling the medium to long-term organisational, market and management issues which are at the heart of the short-term crisis.
The main underlying global factor is over-supply and changing trends on the key Japanese herring roe and European herring flap markets, which are the key outlets for Irish herring exports. Over-supply in 1997, especially from Canada and Norway, has led to a serious downturn in the market and low prices for traditional suppliers. Norway, especially, is offloading an unprecedented level of supplies into EU and eastern European markets. The Japanese herring roe market, where Irish herring producers have developed a valuable niche in recent years, is suffering from supply and prices problems, exacerbated by the downturn in the Japanese economy and signs of long-term decline in the traditional consumer market.
The outlook is for little foreseeable change on the world market in the short to medium term. I decided, therefore, that we should look at the factors within our control and see what could be done to position the industry to maintain a strong market presence and become more competitive in this very tough international environment. A hard collective look at all aspects of the sector was needed. Having consulted with the industry I established at its request a fully representative task force last December to comprehensively address the issues. I asked the task force to assess all the options for better management and marketing of Irish herring, taking account of global factors and trends and all relevant domestic factors and to look at all aspects of the supply, processing and marketing chain. I also asked for concrete recommendations on practical actions to deliver change. I asked the task force to report by the end of March. This was demanding but essential deadline, given the critical situation for the industry. I am glad to advise it met my deadline and submitted their report to me yesterday.
The task force represented key players in the herring fishing industry, including fishermen, processors, and exporters as well as BIM, the Marine Institute and the Department. It worked intensively over the last three months and I am especially grateful to the industry representatives for its committed approach to the job in hand. I am also grateful to the members of my Department who worked hard with it, including Sarah White, who chaired the task force.
The task force made an interim recommendation to me in January on the need for EU action to reduce preferential market access by non member states and on the priority need for enhanced scientific herring assessment programmes. I took immediate action on both fronts. At the EU Fisheries Council I secured a reduction of the autonomous tariff quota for 1998 allowing preferential access for herring from outside the EU. In the face of considerable opposition from other member states the quota for this year was reduced to 12,500 tonnes from 23,000 tonnes, which operated last year. I will continue to work to have this quota dismantled entirely for 1999, given the EU oversupply situation. We consider it is unnecessary and inappropriate in the present circumstances.
I intend to publish the task force report within a couple of weeks. I will examine it in detail now with a view to responding to and taking forward its recommendations. The report gives a comprehensive analysis of the situation and has come up with strategies directed at creating a new partnership approach, supporting improved operational efficiency and ensuring better co-operation in management and marketing.
The development of the Irish aquaculture industry has been on a steady growth curve from small beginnings in the 1980s. The industry is now worth £60 million per annum, accounts for 30 per cent of the volume of Irish fish production, is a major supplier of raw material to the processing side and gives valuable employment in our rural and island communities. Downstrearn jobs are supported in supplies, services and fish processing. Many of the skills needed to develop aquaculture are to be found in our coastal communities. Traditional farming and fishing skills are being successfully harnessed to the new technologies for the production of quality Irish farmed sea food.
The three major aquaculture species are salmon, oysters and mussels but I am keen to see continued expansion into new species, including turbot, halibut, charr and abalone. This will position the industry very well in terms of diversification and expansion. The Chinese are research leaders on abalone. Following our visit to China we arranged a technical exchange which has been very helpful. Continued sustainable and well regulated development of the aquaculture industry is a key objective.
I have already underlined the importance for Ireland and the Irish fishing industry of a level playing field in fisheries enforcement across Europe. The viability of the resource and the interests of the Irish fishing fleet depend on effective conservation and compliance by everyone with the rules. My Department's sea fisheries inspectorate works closely with the Naval Service and the Air Corps to ensure rigorous control of fishing activity and landings in our waters. The agencies will continue to co-operate and work together to ensure that the resources available for fisheries surveillance and control are utilised to best effect.
In discussions at last weeks EU Fisheries Council, I underlined once again to ministerial colleagues and the Commission the critical importance which Ireland attaches to fair play and co-operation in fisheries protection. I said that there must be demonstrable commitment and co-operation by all member states to uniformly enforcing the rules. I made the point that enforcement is not an end in itself but a means to the end, which is better compliance and understanding by fishermen everywhere. We need to build the confidence of fishermen that compliance with the rules will pay dividends in terms of protecting the stocks.
As Senators know, there are specific enforcement difficulties associated with the activities of flagships. As the coastal state most directly affected, Ireland is actively pushing for more co-operation from the other member states concerned in tackling the problem. I had bilateral discussions with the UK and Spanish Ministers at the Council when I pressed for improved co-operation and better information exchange so that the activities of flagships are verifiably controlled, both at sea and at ports of landing. This is a major priority for me, and I will continue to work on all fronts for the EU to deliver workable solutions to the flagship problem.
It is critically important also that fishermen should be able to go about their legitimate business without being subjected to harassment or intimidation. I am seriously concerned about incidents between Irish fishing vessels and vessels registered in the UK which occurred off the south west coast in recent weeks. We cannot tolerate bully-boy tactics which put the safety, and the livelihoods, of Irish fishermen at risk. Investigation of the alleged incidents is continuing.
I have discussed the incidents with my colleague, the Minister for Defence, who shares my concerns. We have agreed that our two Departments, the Naval Service and the Air Corps should liaise closely in reviewing the implications and lessons from recent events and in ensuring the most effective deployment of all our services in the task of preventing such incidents and responding to them if they occur again. We need as a priority a rapid response to incidents and an agreed code of practice. I have ideas in mind about how to do this.
My Department has in the meantime taken the matter up at high level with the relevant UK authorities to convey my deep concerns and to pass on available information about the vessels allegedly involved. I also raised the matter with my UK and Spanish colleagues and stressed the need, in everyone's interest, for concerted action to tackle these difficulties. At Council I urged both Ministers, and the EU Commission to facilitate and ensure co-operation at all levels to minimise and prevent such incidents.
I also took the opportunity to raise formally at last week's EU Fisheries Council the need to tackle the problems which arise between fishermen from various member states operating on the same fishing grounds with different gear types. This phenomenon is by no means confined to one or two fisheries but is quite widespread in Europe. Conflict avoidance measures, along the lines which we are pursuing bilaterally with a number of member states, are needed generally and I will continue to be at the forefront in pursuing these measures.
The fishing industry is critically dependent on berthages and onshore facilities for landings and services. Investment to date under the operational programme for fisheries has delivered much needed improvements in key strategic fishing ports as well as smaller harbours and their related facilities. However, I am convinced of the need for substantial additional investment at our key fishing ports for safety and economic reasons and I will bring proposals to Government shortly on the funding options. The capital investment programme for 1998 will see further improvements around the coast. Money has not been provided from any quarter, including the EU operational programme. That is an issue we must address and I assure Senators I will do so.
I want to conclude by returning to the forthcoming review of the Common Fisheries Policy, which regulates virtually every aspect of the operation of the fishing industry. This review is crucial from Ireland's point of view. While it is four and a half years away, it is essential that the strategic process of preparing the national position begins now. The Commission is beginning a round of consultations with the fishing sector and I have got Commission agreement to begin its round of consultations here with a series of face to face meetings with the Irish industry next September. Later this year I will establish a national common fisheries policy strategy group involving all the key players, including the industry. The group will consult, develop and advise on national objectives and strategies for the review. One of our difficulties is that the same people who work on the task force must also work on this group. I want Senators to realise that my Department does not have many staff. We have only a handful of key personnel. Our expansion to include natural resources gives us a broader base and further dynamic, which is helpful. I want to bring together and use to best effect all relevant expertise to inform the national negotiating position in Europe during the review.
I reaffirm to the Seanad that the Government is fully committed to the continued development of all components of the fishing industry and to assuring a sustainable future for our coastal communities. I will continue to work on all fronts to deliver on our objectives for the sector and I am sure I will have the full support of this House in delivering our wide-ranging and challenging agenda.
A commission of inquiry examined the Irish fishing industry in 1921. Its report, which makes fascinating reading, strongly emphasised "the interdependence of production and marketing". The report also set out the following strategic objectives for the industry:
That the entire wealth of the rich seas about the Irish coast be exploited for human food;
That the fisherman has satisfactory materials for this purpose and is provided with fair remuneration for his labour;
That a cheap and speedy distribution is organised, first for the people of Ireland and second for the most remunerative foreign markets.
The commission was farseeing and visionary in its outlook. The Irish fishing industry has come a long way in the intervening years. However, it is striking that those strategic objectives are as relevant now, over 75 years later, as they were in 1921.
I only had time to give a brief overview of some of the work in my Department. Senators spoke about the marine sector generally, which I could talk about for some time as we are doing a lot of work in that area. Many plans have been devised by the Marine Institute which was set up for that purpose. I am working closely with the divisional staff and the chief executive of the Marine Institute to make progress in this area of tremendous potential. We must use all our energy to develop it.