Trawler owners say offers for decommissioning are 'an insult'

The offers to fishers range from €150,000 to €4m, and the average decommissioning payment is 'approximately €1.3m'. Stock picture: David Cheskin/PA

The fishing boat owners who applied to join the decommissioning scheme are to go back to the Government for more money. They say the offers most have received are “an insult”.

It comes after Agriculture Minister Charlie McConalogue added an extra €15m to the scheme, which had been capped at €60m.

The Irish Examiner understands that no more funding is available, and the 57 fishers who applied for decommissioning have just two options — take the offer or leave it and go back to fishing.

Irish South and West Fish Producers Organisation chief executive Patrick Murphy said this will have a negative knock-on effect on the industry.

“Nobody really wants to go for decommissioning because they would rather be out there fishing,” said Mr Murphy.

"The original figure suggested for decommissioning was €96m and what is on the table is far short of that. Fishers want a fairer price paid for their boats and most of those who have received an offer are not happy. What they have been offered is an insult."

The Irish Examiner reported on Tuesday that up to 20 fishers could withdraw their applications to join the Government’s decommissioning scheme.

Mr Murphy said the figure could be higher.

“If all 57 go for it, it would take capacity out of the national offshore fleet and help underpin the viability of the remaining fleet because the quota of those leaving the industry would be divided among those left in the industry.

“Those left would be allowed to catch more fish, by having a greater share of the quota relinquished by those leaving the industry.”

Offers are too small 

The average offer to fishers is “approximately €1.3m”. However, it varies by the size and class of vessel and offers can range from €150,000 to €4m.

Each offer is based on the type of fishing and the volume of quota species caught.

The figures may appear to be high, but fishers say there are huge debts that must be paid off.

Boat owners who are accepted for the decommissioning scheme will only get back a proportion of the total value of their boats, and instead of being able to sell them on, they will have to destroy them. Most fishers would have to pay for the scrapping of their boats.

If the boats were to be sold on the open market, they would range in value from €200,000 to €1.5m, with a total secondhand market value of around €35m for the boats that have applied for decommissioning.

Added to this, all boat owners will have to pay back funds they received during the Covid pandemic.

A number were paid not to fish for several months over the past two years under the Brexit temporary fleet tie-up scheme.

Both the decommissioning and tie-up schemes were designed to mitigate against quota and financial losses Irish fishers sustained because of Brexit, and are funded by the €1bn Ireland received from the EU’s Brexit Adjustment Reserve fund.

This was set up to help member states most affected by Brexit to deal with adverse economic, social, territorial, and environmental consequences.

The decommissioning and tie-up schemes were key recommendations of the Seafood Task Force set up by Mr McConalogue.

A spokesperson said the decommissioning scheme is “wholly voluntary” and that all offers are “non-negotiable”.