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July 2008
Fuel Developments
The last edition of the “News Net” discussed the proposals that had been submitted to NI Fisheries Minister Michelle Gildernew MLA to assist the fleet with the escalating cost of fuel. The Minister and her Department took their time in replying. Many local fishermen attended the rally on the steps of Stormont on the 25th February and intense lobbying of local MLAs finally resulted in the Minister making a statement to the Assembly on the issue on the 28th April. It has been well documented that the Minister’s statement was a damp squib, with her refusing any meaningful help to the local fleet.
A NFFO meeting with UK Fisheries Minister Jonathan Shaw MP was convened on the 14th May similarly bore no fruit and on the 3rd June 25 local fishermen travelled to London to take part in a national fuel rally outside DEFRA head quarters.
The EU Fisheries Council, scheduled to meet on the 15th July ’08, is due to discuss and hopefully approve a proposal from EU Fisheries Commissioner Joe Borg containing a range of measures that are designed to offer some assistance in respect of increased fuel costs. However, it will still be up to individual member states to decide if they will offer any of the measures to their fishermen.
Mr Borg tabled a “non-paper” on the 19th June, which set out some of the background to the current crisis, as well as his ideas on measures that could be adopted. (A non-paper has no legal status within the EU and is solely designed to record the Commission’s latest thinking on a particular issue.)
At current price levels, the fuel costs of the EU fleet are estimated at around Euros 2 billion/year, or about 30% (on average) of the value of EU landings. A further 1% increase in fuel prices from the current level could cost the industry up to Euros 20 million.
In the paper four types of measures were envisaged:
- Emergency measures
- Measures for the benefit of those fleets which will engage in a major restructuring effort.
- Market measures to increase the value of fish.
- Measures facilitating the use of EFF.
Emergency measure proposals included:
- Aid for temporary cessation of fishing activities for a maximum of 3 months to be started before the end of this year.
- Increase the level of EFF grant for fuel saving equipment.
- The provision of expertise in relation to energy audits and the development of restructuring plans.
- Extend the eligible beneficiaries of EFF socio-economic measures to include e.g. harbour authority staff.
- Promote research on technical improvements for vessels/engines/equipment/gear to reduce fuel consumption and extend the eligibility of pilot projects.
- Increase the De Minimis aid ceiling from Euros 30,000 per firm to Euros 30,000 per vessel, up to a ceiling of Euros 100,000.
For those fleets agreeing to further restructuring, the rate of EU grant for e.g. installing new engines would be increased for the currently proposed 20%. Another interesting proposal is to allow the granting of partial decommissioning aid in the case of the replacement of an old vessel with a new smaller and more energy efficient vessel.
Unfortunately, when these proposals were discussed by EU Fisheries Ministers at the end of June in Luxembourg, they did not receive universal support, with even member states that have already paid the De Minimis payment expressing reservations. Therefore, the proposals are likely to be refined before being presented to the Fisheries Council on the 15th July.
European Fisheries Fund (EFF)
The consultation exercise on Northern Ireland’s draft investment plan for the use of the EFF ended on the 27th June ’08. All licence holders received a copy of the bulky document several weeks ago and they were also invited to a series of consultation meetings during May, which as it turned out were poorly attended.
In the PO’s submission we pointed out that some of what was contained in the consultation paper might well change in light of decisions to be taken during this month by EU fisheries Ministers in light of the fuel crisis (see above).
- We supported, with conditions, the introduction of a further round of decommissioning, as part of a wider restructuring package that would include a scrap and build programme.
- We supported the provision of temporary tie-up to the fleet.
- We argued that the UK endorse the maximum permissible level of grant aid for modernisation projects.
- We argued that the rate of grant assistance for the replacement of engines should be increased well beyond the 20% currently offered.
- We supported further work in gear selectivity and the introduction of grant aid to assist with the introduction of more selective gear.
- We supported the assistance being offered to allow young fishermen to buy their first vessels.
- We supported the continuation of a strong, local processing sector AND the provision of assistance to permit fishermen to enter that sector.
- We supported funding for accreditation of fisheries e.g. MSC.
- We supported continued investment in the local harbours.
- We urged DARD to administer the scheme in an efficient manner and establish guidelines regarding for example the time they take to pay grants.
A copy of the submission is available to interested PO members.
NI Fisheries Forum
The Minister’s statement to the Northern Ireland Assembly on the 28th April included her launch of (another) new Fisheries Forum, to be charged with examining options for the future direction of the local fishing industry, especially in light of the fuel crisis. This Forum met for the first time on Friday, 27th June, with a wide range of participants from across the industry, including representatives of, for example, environmentalist organisations.
Officials got the message loud and clear from fleet representatives that emergency aid had to be provided. While they promised to take this message back to the Minister (who attended the opening of the meeting), they were not holding out too much hope.
A series of sub-group meetings are scheduled over the course of this month. This sub-group will examine specific vessel fuel efficiency issues and report back to a meeting of the full taskforce on the 24th July.
Fish Sales
It is planned to convene a General Meeting of the Fish Sales Division in the near future, to discuss future options for the development of the operation. Over the past few months, the Board have been asked to consider a number of proposals, including expansion of the Division into Portavogie.
The Fish Sales Division has been performing well and with the appointment of a new auditor earlier this year quarterly accounts are available. These can be examined by members of the Division in the PO office.
In parallel with the development of the Division, the PO is pursuing other iniatives that are designed to allow locally caught seafood to compete on a level playing field in UK and European markets. These include the Seafish Responsible Fishing Scheme, for which funding is still available (and we would encourage all vessels to apply for) and the MSC’s internationally recognised accreditation scheme, more details on which will follow.
Quota Uptakes
The following is a comparison of ANIFPO quota uptakes between the 2nd July 2008 and the same time last year for our main quota species. Figures in brackets are UK national uptakes. Remember, we are now half way through the year.
Species 2nd July ’08 11th July ‘07
Irish Sea (Area 7)
Plaice 7a 18.3% (17.8%) 24.8% (23.1%)
Cod 7a 51.8% (46.7%) 30.5% (26.7%)
Haddock 7a 35.2% (46.1%) 17.5% (41.3%)
Anglers 7 11.2% (39.3%) 26.6% (42%)
Hake 6 & & 25.7% (31%) 8.8% (28.4%)
Nephrops 7 52.4% (45.8%) 55.9% (43.7%)
North Sea
Cod 4 2% (57.2%) 23.8% (55.9%)
Whiting 4 13.6% (59.2%) 32.2% (46.8%)
Nephrops 4 5.9% (29%) 27% (36.4%)
West of Scotland
Cod 6 28.6% (65.8%) 21.6% (63%)
Nephrops 6 12.7% (34.1%) 18.6% (43.2%)
Scottish Quota Proposals
The ongoing debate about Scotland pursuing an independent quota management regime has created a great deal of uncertainty within the industry both in Scotland and throughout the rest of the UK. It is expected that the debate will rage on for the remainder of this year and is likely to be driven by Scottish politics, rather than any practical concerns for the Scottish and UK fishing industries.
A recent meeting involving Scottish POs highlighted the split within Scotland on the issue. Out of 6 Scottish POs attending the meeting, 2 were in favour of Scotland pursuing its own agenda, 3 were against and one was un-decided. However, with the current nationalist Government in Scotland, there is wide spread feeling that the SNP tam are using fisheries in an attempt to further their own political ends. If Scotland decides to go their own way there can be no doubt that for “Scottish” vessels this will be the ‘thin end of the wedge’. It has already been suggested that those who support the move would then seek a re-allocation of quota within the Scottish fleet. This will obviously be a factor in many “Scottish” vessel owners deciding whether or not to re-register their vessels outside Scotland.
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