The owners of 20 Irish fishing vessels have won a court case against the European Commission over its refusal to allow them to increase the size of their vessels.
The ruling by the European Court of First Instance yesterday could enable owners to claim tens of millions of euro in compensation from the State and increase the size of their vessels.
It could also spark other legal appeals against the commission's refusal to allow 80 vessels from Belgium, Ireland, Sweden, Britain and the Netherlands to increase the size of their vessels in a controversial decision taken in April 2003.
The legal case concerns an application by the owners of vessels from Donegal, Cork and Galway to the commission to increase the tonnage of their trawlers to enhance their safety, hygiene and working conditions under an agreed EU programme
In April 2003, the commission ruled that the Irish vessels, which are based in Donegal, Cork and Galway, were not allowed to increase tonnage because they failed to fulfil the criteria for the scheme. In particular, the commission sought to prevent new vessels under five years of age from taking up the safety tonnage scheme.
The decision forced many vessel owners to buy additional tonnage from other vessel owners which had excess capacity or who were decommissioning their trawlers.
It has been estimated that buying this additional tonnage cost about €53 million. The action was initiated in June 2003 by Atlantean Ltd, a fishing vessel firm owned by Dublin-based businessman Des Faherty. Another 23 Irish fishing vessels joined the case, which was heard by Europe's second highest court based in Luxembourg.
Yesterday the European Court of First Instance ruled in favour of 20 of the Irish vessels, finding that the commission had "exceeded its powers" by adopting decision criteria that were not in line with EU rules agreed by member states.
In a complicated judgment, the court annulled the commission's decision in April 2003 to refuse the requests to increase the size of the Irish vessels and ordered it to pay legal costs.
The court dismissed the cases of four owners and fishing companies: Thomas Faherty, Ocean Trawlers Ltd, Larry Murphy and O'Neill Fishing Co Ltd.
The European Commission said it was studying the judgment yesterday but would make no comment on its likely impact. However, the Killbegs Fishermen's Organisation said it expected that the tonnage would now be granted to the fishermen enabling them to sell it on or increase their vessel sizes. The organisation's chief executive, Seán O'Donoghue, said they would also be seeking redress for the €21 million in penalties levied on six of the vessel owners by the Government for exceeding their tonnage.
"This is a great day for some Irish fishermen with the court of first instance ruling in their favour and fully vindicates the stance taken by the KFO and its members in challenging the commission decision."
The Department of Marine and Natural Resources said it was examining the judgment.