A £40 million investment package aimed at renewing the whitefish fleet is due to be announced by the Minister for the Marine and Natural Resources, Dr Woods, in Castletownbere, Co Cork, today.
The three-year package will include direct EU and State grants for new vessels for the first time in 15 years. To be administered by Bord Iascaigh Mhara (BIM), it represents the most significant boost for the Irish whitefish fleet since the introduction of the EU Common Fisheries Policy in 1983.
The package comprises £9 million in EU and State grants and more than £30 million in investment through tax incentives. Some 45 per cent of the cost of about 27 new vessels will be financed, and 10 to 15 per cent of the cost of modern second-hand vessels. There will 25 per cent grant-aid for refurbishing existing boats, and 50 per cent assistance for purchase of safety equipment.
Some 400 vessel-owners will gain from the measure, with a spin-off of up to 500 additional jobs in the industry. It may also increase the value of landings by £30 million annually. Fish exports are running at more than £200 million, with more than £155 million being sold to the European market.
The European Commission, which has been keen to reduce EU fleet sizes, has given its approval for the initiative. Safety has been one of the most influential factors. Some 64 per cent of vessels had serious deficiencies, according to a Government report on fishing vessel safety published two years ago, which noted that 24 per cent of the fleet was more than 30 years old. It will also allow Irish skippers to take on the expanding Spanish fleet for the first time since Spanish accession to the EU.
Much interest has already been aroused in the long-awaited scheme, and it has elicited the support of the major financial institutions. The tax incentives have already been incorporated in the recent Finance Act. They provide for accelerated capital allowances in the first year of 50 per cent, with remaining capital allowances spread more than seven years at a rate of 7.5 per cent in years two to seven, and 5 per cent in year eight.
Owner-operators and those involved in leasing can offset allowances for a fishing vessel against all income, whether derived from fishing or other activities.
The last new whitefish vessel on the national register was the Donegal trawler, Mary M, purchased in the late 1980s. Ironically, the scheme comes at a time when the 70-metre Killybegs super-trawler, Atlantic Challenge, has just been sold back to Norway as part of a down-sizing initiative by its owners.
Ultimately, the initiative's success will depend on the state of fish stocks. Significantly, new vessel applicants must agree to exploring new opportunities offshore: some 30 per cent of their annual catch must be of nonquota fish. Priority will also be given to those vessels contributing to the economic development of a coastal area.
There are more than 2,000 vessels serving an industry employing 15,000 people at sea and ashore. However, some 80 per cent of these are inshore. Only 600 boats are more than 12 metres in length and only 150 are more than 20 metres. BIM is opening a new fisheries training school in Castletownbere in the autumn.
