Group warns of region's fragile economy

The Government must not preside over "economic and social suicide" in south-west Donegal, a group of business people in Killybegs…

The Government must not preside over "economic and social suicide" in south-west Donegal, a group of business people in Killybegs has warned.

Continued quota cuts and "increased vigilance" by the authorities could result in serious job losses within the fishing industry, the group says in a submission to Cabinet.

The group, representing some 30 business people employing up to 430 people in ship maintenance, marine engineering and electronics, net making, as stevedores, and in haulage, travel, legal and financial services, says that it is not trying to influence the outcome of the current Garda inquiry into alleged fraud within the fishing industry.

However, up to 1,000 job losses could increase the county's unemployment rate to nearly 20 per cent, and to a level of 32 per cent within the fishing industry.

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The submission, which has been presented to the Minister for Agriculture, Ms Coughlan, and the Minister of State for the Marine, Mr Pat the Cope Gallagher, comes just weeks after a leading ship broker in Killybegs, Mr Stephen McCahill, questioned the decision to initiate a Garda inquiry into the allegations of fraud. He said that the situation had to be examined within the context of inadequacies within the EU's Common Fisheries Policy (CFP).

Mr McCahill, who was a member of the Government's strategy review group on the CFP, said that Killybegs was already subject to stringent controls, but the EU policy's social cohesion element was not being honoured. He compared the investigation to placing a member of the Garda in a 30-miles-per-hour speed zone with a speed gun "all day long".

The business group argues that much of the success of the region has been due to private sector investment, which is "significantly higher" than the norm.

It points out that almost 300 million of a recent total of 384 million investment in 27 new fishing vessels, factories and infrastructural projects was financed by private capital. The State and the EU paid for the €55 million pier at Killybegs, and paid grants of almost €10 million in factories and white fish vessels.

"The ability and willingness of the sector to finance its own development is almost unique in Irish industrial development," the submission states.

Fishermen had already shown their desire to preserve stocks by initiating a temporary closure of the cod fishery off the north-west coast.

The submission says that the area could benefit from decisions taken in Iceland and Newfoundland in relation to crisis management of fisheries and the marine sector, and appeals for gateway port status for Killybegs so that it can become a shipping and freight hub for the north-west.

It says that current harbour charges are driving businesses away from the port, and a dry dock is required, along with a helicopter pad and a proper tourist office.

The National Criminal Bureau of Investigation is still at an early stage in its inquiry.