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Compensation Schemes

Dáil Éireann Debate, Thursday - 26 April 2018

Thursday, 26 April 2018

Questions (9)

James Browne

Question:

9. Deputy James Browne asked the Minister for Agriculture, Food and the Marine his plans to provide compensation for those who lost fishing equipment due to storm damage over the past year; and if he will make a statement on the matter. [17579/18]

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Oral answers (9 contributions)

What are the Minister's plan to provide compensation for those who lost fishing equipment due to storm damage during the past year?

My Department's European Maritime and Fisheries Fund, EMFF, operational programme is the vehicle for financial supports to the seafood sector up to 2021. The programme delivers a wide range of supports for aquaculture, fisheries and seafood processing through a suite of 17 schemes. I have made in excess of €50 million available to the seafood sector in 2018 through a range of EMFF schemes. In doing so, I secured a very significant commitment from the Exchequer to this programme. This means that anything I can do to assist the seafood sector must be through the EMFF programme.

The EMFF Regulation 508/2014 provides for a special compensation scheme for fishermen experiencing significant economic losses arising from severe storms, etc. Article 35 foresees the establishment by fishermen of a Mutual Fund for Adverse Climatic Events and Environmental Incidents. This fund would act as a form of mutual insurance for otherwise uninsurable losses by paying compensation to affiliated fishermen for losses that exceed 30% of the fisherman's annual turnover arising from severe storms and other adverse climatic events, for losses arising from environmental incidents and for the costs of rescue at sea for fishermen or fishing vessels.

The fund must be established and managed by fishermen and be funded through the subscriptions of affiliated fishermen. The compensation would only be available to fishermen affiliated to the fund. Support to the fund from the EMFF programme would be in the form of a contribution to the costs of compensation paid out by the fund. Depending on the type of vessels or fishermen experiencing losses, EMFF assistance may be as high as 80%.

To date, no fishing representatives have proposed to me that they wish to take on responsibility for the establishment of a mutual fund. I cannot lawfully establish the fund on behalf of the sector. When appropriate representatives of the sector are in a position to establish the fund, my Department and Bord Iascaigh Mhara, BIM, stand ready to assist and advise fishermen and their representatives in any way possible. However, the EMFF does not permit a financial contribution towards the costs of establishment or management of the fund. In order for such a fund to be viable, it is likely to be necessary for the fishing sector to strongly support the initiative through widespread affiliation.

During the past season and as a result of Storm Ophelia last autumn fishermen have suffered severe losses to their equipment, in particular, their pots, ropes and coils. That has caused a set back with respect to their working hours, profits and to the sustainability of many of those fishermen and their families. The programme for Government commits to the developing the blue economy as a priority. As a result of the long winter and the damage caused by Storm Ophelia, there has been a setback in the development of the blue economy. Small boats suffered especially and my county of Wexford was very badly hit. It would have taken many small boats 14 days of consistently getting out to get those pots back in time ahead of that storm without overloading those boats. That is assuming the weather held well, but at that time fishermen were only getting out three or perhaps four days a week. They would have needed almost a month's notice to get out and bring their pots back in. In those circumstances is there anything specific the Minister can do for those fishermen who lost their lobster pots and the crab fishermen and shrimp fishermen who suffered losses to their equipment and a serious financial set-back?

Before the Minister replies, I note Deputy Murphy O'Mahony wishes to make a brief comment.

I thank the Acting Chairman. I also thank my colleague, Deputy Browne, for giving me a minute of his time. I, too, want to highlight the devastating effect Storm Ophelia had on our fishermen. There has been much talk of its effect on other sectors, and rightly so, but fishermen were very badly affected, especially with regard to lobster and crab pots. It is important to point out that, as a result of this, there will be a shortage at Christmas of shellfish for restaurants, etc. Perhaps that is something we should keep in mind and plan for. I would also like to know the Minister's plans for compensating the fishermen of west Cork, all the way from Courtmacsharry to Castletownbere, who have been very badly affected due to the loss of pots.

I thank the Deputies for their questions. The Government is committed to the blue economy. It is interesting to note that the growth in the blue economy is faster than the growth in the mainstream economy. I had the privilege yesterday to attend a global seafood fare in Brussels and met representatives of the fishing industry, 23 different companies from all around the coast stretching from Malin Head to Mizen Head and all points in between. They are capitalising on that growth. I appreciate the sector the Deputies mentioned is critical with respect to the raw material it is bringing to the market. We stand ready and waiting, but this is an issue that the sector needs to activate. There is a provision under the European Maritime and Fisheries Fund, EMFF, to establish a mutual fund. We have recently very successfully established the Regional Inshore Fisheries Forums and the national umbrella body, the National Inshore Fisheries Forum, as well as the long established producer organisations, POs, such as the Killybegs Fishermen's Organisation and the Irish South & West Fish Producers Organisation, with which the Members will be familiar.

They need to come together to establish the mutual fund. We will then be in a position to respond to losses. I acknowledge that there have been losses to the sector, but this is the vehicle that needs to be activated.

I assume that, when established, the European Maritime and Fisheries Fund, EMFF, will not be retrospective. My specific point was on the fishermen who suffered badly in the past season and are still suffering because of losses. They are experiencing cashflow difficulties in their attempts to keep themselves going. Theirs is a high-risk job. They are out there collecting the raw material for our blue economy. While I am glad that that economy is growing, fishermen, their families and their communities across the country, in particular along the southern and south-eastern coasts, have suffered badly. Is any retrospective help available for small operators whose equipment has suffered significant damage?

One of the most positive and important developments in recent times has been the establishment of a forum for the inshore sector. While it is still in its infancy, the National Inshore Fisheries Forum, NIFF, is co-ordinating on needs and is being well used by fishermen. We will shortly be putting out to public consultation a number of policy matters that are relevant to the livelihoods of those involved in the NIFF.

However, the solution to the issue in question rests with the EMFF. This is the first time that we have had a substantial European fund backed by Exchequer funding. Provision has been made, but I urge those affected to become active in their regional forums before triggering it. The EMFF may not currently deliver on historical losses, but let us put it in place and ensure that the sector is protected in future. I appreciate that the kinds of loss the Deputy has mentioned, while not significant in an overall financial context, are significant for the smaller players. The EMFF is the vehicle, though. Unfortunately, it has not been activated yet, but we now have the forum and the funds within the EMFF to deal with the situation. I encourage those fishermen to get active in their regional forums, which are the vehicles through which redress will occur in future.

With everyone's co-operation, we might be able to take three more questions before 12 noon. I ask Deputies to stick to their times.

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