The European Commission has approved a €15 million aid package to support fishing and aquaculture companies dealing with increased energy costs.
The Irish State aid scheme aims to counteract the spike in fuel prices caused by the crisis in the Middle East through direct grants to affected companies.
The aid will be made up of direct grants that will be allocated depending on the size of the company’s vessel.
Owners of vessels shorter than 6m will receive a flat rate of aid at €350.
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For owners with vessels longer than 6m, aid will be calculated off fuel expenditure , up to a maximum of 40 cent per litre of fuel.
The scheme will last until the end of the year. It is designed to cover additional fuel costs incurred amid the fallout of the Iran war. .
The Commission noted the scheme was “necessary, appropriate and proportionate to facilitate the development of an economic activity”.
It also said that the scheme would not “adversely affect trading conditions to an extent contrary to the common interest”.
The aid comes as part of the Middle East Crisis Temporary State Aid Framework, which was adopted by the European Commission in late April in response to the outbreak of the conflict.
In April, fuel prices spiked around the world following a global energy shock caused by US-Israeli strikes on Iran and the closure of the Strait of Hormuz.
The aid scheme was assessed by the Commission under European Union state aid rules, which enable member states to support the development of particular economic activities subject to certain conditions.
The omission found that the scheme was compliant, on the grounds that it had a clear estimated budget of €15 million, and was a temporary fixed measure.
