State aid for fishermen ruled out

MINISTER OF State for Fisheries Tony Killeen says Ireland's case for emergency EU aid for the fishing industry would be "undermined" by provision of exchequer funding. "Economic realities" also ruled out Government assistance at this point, he said.

"Considerable progress has been made at European level and we are committed to seeing this through," he said.

Mr Killeen represented Ireland at this week's EU fisheries council where a €600 million emergency aid package was agreed for vessel owners "hardest hit" by the current fuel price crisis. However, the money would not be available until next year and Mr Killeen said he was "disappointed" at the level of opposition among some other member states.

An "important principle" had been established, however, as the funding was not tied to European Fisheries Fund guidelines - which would have restricted Ireland's share to 1 per cent, or just under €6 million of the emergency package.

Mr Killeen said details still had to be worked out in September's council, but he hoped Ireland would get "more than" €6 million.

However, a "bloc" of member states opposed to the aid for a series of reasons, including objections to any special deal for fishing, would "still have an opportunity to try and scupper it", he warned.

The Federation of Irish Fishermen (FIF) said yesterday it was "regrettable" the package would not be available until next year. This, however, should not preclude immediate action at home, with exchequer funding if necessary, in spite of the "acknowledged deterioration in public finances".

"The FIF has always made clear the extreme gravity of the situation facing the fleet right now," its chairman Gerard O'Flynn said yesterday.

"The FIF will take every action open to it to ensure that the necessary funding is made available."

Labour Party marine spokesman Senator Michael McCarthy has also called on the Government, through Mr Killeen, to demonstrate "real political commitment towards this industry".

"We cannot allow an entire industry and way of life to be wiped out," he said. "Next year may well be too late for many of our fishermen."

The €600 million package is in addition to an existing €1.4 billion European Fisheries Fund and is contingent on national industries using the time during temporary tie-ups to "restructure".

Ireland is already in the middle of a €42 million decommissioning scheme and has 15 per cent of Europe's seabed area.

Mr Killeen said he believed that Ireland should benefit proportionately and argued that with the support of the Netherlands, the aid should be made available this autumn rather than next year.

"I made it clear that I did not consider it fair that our fleet would be directly competing with the fleets of other member states, who would receive aid as a result of the relaxation of state aid rules agreed at the council and because they are in receipt of large EU budgets under the EU fisheries fund," the Minister said.

This article appears in the print edition of the Irish Times