THE OMBUDSMAN is due to place before the houses of the Oireachtas today a special report on the handling of a controversial scheme to replace sunken fishing vessels. It is only the second time that the Ombudsman, Emily O’Reilly, has brought a report before the Oireachtas, and it signals her office’s dissatisfaction with the official response to her investigation to date.
It is understood that the report recommends paying €250,000 in compensation to a Donegal family who had been excluded from the Lost at Sea scheme, introduced by former marine minister Frank Fahey in 2001.
The scheme was designed to provide compensation in the form of tonnage quota to families or people who had lost fishing boats between 1980 and 1990. It is understood that the Department of Agriculture and Fisheries was not happy about paying the compensation, as it could expose it to claims of up to €30 million in other cases.
Under EU Common Fisheries Policy, fishermen require tonnage share to run fishing vessels, and it has become a valuable commodity. The scheme attracted complaints from families whose applications were turned down, as 75 per cent of the quota available in the scheme went to two of Mr Fahey’s constituents.
An interim report by the Ombudsman found the scheme to be “seriously deficient and flawed”, and she initiated an investigation into the exclusion of one Donegal fishing family from it.
Danny Byrne's father and brother, along with three crewmen, died when the Skifjordsank in 1981, and the Byrne family applied to the Lost at Sea scheme after the closing date for applications. They argued that the scheme, which had been advertised in the fishing press, should have been publicised more widely.
Three years ago, the European Commission told Fine Gael MEP Jim Higgins that it had never been informed of the scheme’s existence.
Former Green Party leader Trevor Sargent filed a complaint over Mr Fahey’s role with the Standards in Public Office Commission. It later rejected the complaint.
Mr Fahey has previously defended his role in the Lost at Sea scheme, saying nobody received any direct financial benefit, as the quota in the scheme could not be sold on.
The last and only time an ombudsman’s special report went before the Oireachtas, seven years ago, it was referred to the Oireachtas Finance Committee, which ruled on the issue in 2003.
The special report by the former Ombudsman Kevin Murphy highlighted the Revenue Commissioners’ refusal to implement three of his five recommendations on interest due on tax refunds.
The issue arose as a result of a 1988 High Court case taken by the widows of public service workers who were taxed on the portion of their pensions relating to their children.
Following the success of the widows’ case, the Revenue Commissioners had agreed to refund the tax, but has refused to pay interest on it.