Dáil Éireann Debate, Wednesday - 1 February 2023
326. Deputy Alan Dillon asked the Minister for Agriculture, Food and the Marine the way that he intends to reimburse those affected by the decommissioning scheme; if the scheme will leave those affected in debt or financially secure (details supplied); and if he will make a statement on the matter. [5069/23]
Amharc ar fhreagraThe Deputy is aware that I established the Seafood Task Force to examine the implications of the EU/UK Trade & Cooperation Agreement (TCA) for the Fishing Industry and Coastal Communities and to consider initiatives and make recommendations to address those implications. The Task Force had among its members representatives from across the seafood sector including Producer Organisations and other fisheries stakeholders. Their participation ensured that the industry shaped the recommendations according to their needs and the difficulties that they faced.
The Task Force report made a specific recommendation in respect of a voluntary permanent cessation scheme. The recommendation called for a premium of up to €12,000 per gross tonne which was to include crew payments and scrapping costs. The Task Force also noted that any payments under the Brexit Temporary Cessation Scheme would have to be deducted from the premium. They included this condition due to it being specified in guidance from the EU Commission on permanent cessation. Lastly, the Task Force specified that an age depreciation factor be incorporated, up to a maximum of 15%. These details were published by the Task Force in its report, Navigating Change, in October 2021.
The Brexit Voluntary Permanent Cessation Scheme was developed based on the recommendation and matched the rates, terms and methodology specified in the Seafood Task Force report. Following a State Aid decision on the scheme by the EU Commission, I announced the scheme in July 2022 along with a budget of €60 million. The scheme was subsequently published by BIM along with all terms and conditions.
Appreciating the significance of the decision any individual fisher would make should they chose to participate in the scheme, the deadline for applications was extended to 18 November 2022. This was to allow time for fishers to evaluate their own circumstances and the terms of the scheme should they voluntarily chose to apply and accept any offer made.
Based on an analysis of the profile of applicants by BIM, in order to ensure all eligible applicants could avail of the scheme if they chose to do so and be awarded the maximum amount possible under the terms of the scheme, I secured additional funding. This increase ensured that all 57 eligible applicants would receive a combined total of almost €75 million in payments should they accept offers made under the scheme. In order to ensure fairness and transparency to all those who applied for the scheme and for those who did not, to ensure that the Task Force recommendation was adhered to, and to ensure that a State Aid decision would be forthcoming at EU level, no terms of the scheme were changed. These terms have been transparent from the outset and are favourable relative to similar schemes launched since by other Member States. Offers made combined with the tax benefits through section 15 of the Finance (Covid-19 and Miscellaneous Provisions) Act 2022 represent the totality of compensation available to any fisher participating in the scheme.
In respect of individual cases, it is the nature of the scheme that all offers are different and are based on the specifics of each vessel and their fishing activity. The individual offers are formal contractual offers from the State, through BIM, to each individual and it is solely for each individual to consider their specific offer. I would encourage any fisher who has been issued an offer to assess the it with their professional advisors and ensure they take full advantage of the tax benefits which were introduced to accompany the scheme. Any queries an individual may have in relation to their specific offer may be directed to BIM.
