Coughlan urged to bring in fuel subsidy for fishing fleet

Minister for Agriculture and Fisheries Mary Coughlan has been urged to follow France's decision to subsidise fuel price hikes…

Minister for Agriculture and Fisheries Mary Coughlan has been urged to follow France's decision to subsidise fuel price hikes for its fishing fleet.

The Federation of Irish Fishermen called on Ms Coughlan to follow French president Nicolas Sarkozy's example to initiate an emergency support plan that compensates vessel owners for the rising cost of fuel.

Mr Sarkozy has initiated a series of indirect measures, including tax breaks and exemption from social security contributions, aimed at alleviating pressure on the northwest fleet. The plan was agreed with industry representatives in Paris, following port blockades on the Breton coast by about 300 vessels earlier this month.

A spokesman for the Minister said there would be difficulties with any move, given the implications for EU competition law. Any decision would have to be taken in the context of the forthcoming budget, he said.

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Fine Gael MEP Colm Burke, a member of the European Parliament's fisheries committee, called on the European Commission to clarify the French situation.

"State intervention to directly compensate the fisheries sector for rising fuel costs would normally constitute operating aid and as such would infringe competition rules," Mr Burke said yesterday.