Rising cost of fuel adds to pressure on fishing industry

Aodh O'Donnell: 'We are looking at fuel costing €1.30 per litre or more, it has effectively doubled in cost in less than a year.'

The fishing industry is facing a perfect storm of circumstances that must be addressed urgently by the Government to avoid permanent damage to the sector, according to representative groups.

Fishing organisations are due to meet with Minister for the Marine Charlie McConalogue on Wednesday to demand action to address the surging cost of fuel that they say is forcing many fishermen to stay in port. 

The rising cost of fuel is compounding the already significant strain on the industry caused by Brexit and the Covid pandemic, fishers say.

According to Aodh O'Donnell, chief executive of the Irish Fish Producers Organisation, said many boats can't run profitably in the current circumstances.

“We are looking at fuel costing €1.30 per litre or more, it has effectively doubled in cost in less than a year.” 

Mr O’Donnell said French and Spanish fishermen were being supported by their governments and this was leaving Irish boats at a disadvantage.

Earlier this year, the European Commission activated crisis measures under the European Maritime, Fisheries, and Aquaculture Fund (EMFAF) to support the sector in response to the Russian invasion of Ukraine.

Virginijus Sinkevičius, Commissioner for the Environment, Oceans, and Fisheries said: “The war in Ukraine is a war against all of us.” 

Our fisheries, aquaculture, and processing sectors are hit hard due to high energy, oxygen, and raw material prices.

Brendan Byrne, chief executive of the Irish Fish Processors and Exporters Association, said the knock-on effects of the crisis were being felt in coastal communities across the country.

“The consequences in the processing sector are dire, we are seeing costs increasing by 200% to 350% compared to a year ago," Mr Byrne said. "It is spiralling out of control and is now affecting the viability of many businesses.” 

Mr Byrne said there are 160 fish processing businesses around the country employing 4,500 people directly and of those 85 operated on turnovers of less than €1m per year.

“These are mostly small coastal communities where the fishing industry is vital for the local economy. 

"We are facing a perfect storm and it’s having a seismic impact on these communities and the Government seem to be in denial or they are simply choosing to ignore us.” 

Patrick Murphy, CEO of the Irish South and West Fish Producer's Organisation in Castletownbere, West Cork, said fishers would consider striking if there was no meaningful engagement from the Government.

“The EU Commission has said that food security is important now more than ever and they want our boats out fishing, not tied up in port but all we are hearing from our own government is about Brexit funding and paying us to tie our boats up, that is part of the issue but it does nothing to help with the current crisis.”

A spokesperson from the Department of Agriculture Food and the Marine told the Irish Examiner: “In relation to the impacts of increased energy costs arising from the Russian aggression against Ukraine, the  Government is acutely conscious of the impacts across the economy. 

"This matter is being kept under constant review and is the subject of ongoing consultation with representatives of our seafood sector.”