Mr Kevin McHugh, owner of Europe's largest freezer trawler,Atlantic Dawn, stands to make up up to €60 million from the sale of the tonnage entitlement on his second vessel, Veronica.
Mr McHugh has denied he is offering the 5,200 tonnes on the Veronica for sale, but confirmed he had had "inquiries" about it. The 104-metre Veronica is now registered in Panama, under the arrangement brokered by the Government with the EU last year which allowed the 144-metre Atlantic Dawn on to the Irish/EU register.
As the Veronica is now fishing outside EU waters, the tonnage entitlement can be traded legally within the EU. Effectively, the EU/Irish Government agreement handed the 14,000 tonnes attached to the Atlantic Dawn to its owner gratis. Approval for any transfer of tonnage from its sister ship, Veronica, to another Irish vessel-owner will have to be given by the Department of Communications, Marine and Natural Resources.
Several skippers in Killybegs, Co Donegal, who are not fully compliant with tonnage under tightening EU regulations on fleet size, have been approached by third parties offering pelagic (mackerel/herring vessel) tonnage. A price of €12,000 a tonne was quoted for lots of between 100 and 1,000 tonnes. This would amount to over €60 million for the total Veronica tonnage of 5,200 tonnes. There is no other pelagic tonnage available on the market, and last estimated value was about €7,000 a tonne, according to several industry sources.
Mr McHugh said he was not selling to anyone at present, although he had received inquiries. Irish skippers, including up to half a dozen pelagic vessels on temporary licences, have sought permission from the European Commission to allow safety features on vessels, such as shelterdecks, to be exempt from tonnage restrictions.
If the EU grants this exemption, there will be no demand for his tonnage, Mr McHugh pointed out. However, he would not rule out negotiations on a sale at a later stage. "The Veronica's tonnage is a company asset and is recognised by the bank," Mr McHugh said.
The Department was locked into 18 months of negotiations with the EU on the Atlantic Dawn after it was built for the Killybegs-based skipper-owner in Norway. The order was placed at a time of tightening EU restrictions on fleet size, and the EU threatened legal action over the issue.
