Only three owners out of 57 paid in full months after fishing boat decommissioning scheme starts

Ireland’s fishing industry losses from Brexit will amount to around €43m a year by 2026 as part of a five-year EU-UK post-Brexit quota “adjustment” phase. Photo: Andy Gibson

Eight of the 57 fishing boats accepted for decommissioning have been scrapped but just three of their owners have received their money in full from the State.

According to Bord Iascaigh Mhara (BIM), which administers the government scheme, another six boat owners are still waiting for 50% of the monies they are due. As the decommissioned boats have to be destroyed, there is now a waiting list for the country’s two specialist recyclers, in New Ross and Limerick.

As of May 2, BIM says there were 11 boats waiting to be destroyed under the decommissioning scheme, which was set up to cut the size of the national fishing fleet because of reduced quotas in the wake of Brexit. All applicants to the decommissioning scheme have been given until the end of June to de-register their vessels.

There are 42 fishing boat owners who have agreed to scrap their vessels so far, out of the 57 who received offer letters to decommission from the 180-strong Irish fleet. The largest number of boats from a single port signed up to the scheme are from Castletownbere, from where some 19 had originally applied to decommission.

Irish South and West Fish Producers Organisation chief executive Patrick Murphy said: "There is widespread unhappiness among those who have accepted decommissioning. The fact that just three of the eight boat owners have been paid in full and six others have only received half speaks volumes.

Imagine you were a taxi driver and the government told you they would pay you money to scrap your car, and you scrapped it, but you then find out that you'd have to wait months for your money.

The decommissioning scheme and a number of tie-up schemes over the past two years were designed to help mitigate against the reduced quota and financial losses Irish fishermen and women sustained because of Brexit. The post-Brexit EU-UK Trade and Cooperation Agreement (TCA) led to the transfer of a substantial amount of EU fishing quotas to the UK.

However, while Ireland’s quota cut helped the TCA over the line, the deal has —according to fishing industry leaders— made it harder for Irish fishermen to earn a living. Ireland’s fishing industry losses from Brexit will amount to around €43m a year by 2026 as part of a five-year EU-UK post-Brexit quota “adjustment” phase.

This amounts to the biggest single loss for any country, leading to repeated calls for equitable burden-sharing among all member states. After it was originally capped at €60m, Agriculture Minister Charlie McConalogue put an extra €15m into the decommissioning scheme.

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In a statement, BIM told the Irish Examiner: “The process is well underway. While it took more time than anticipated to decommission the initial vessels, the two ship recyclers have now speeded up the process and brought additional machinery.

“The final date for vessels to be decommissioned is October 31 with all payments (to be) made by December 31.” 

In response to questions about the time it takes for payments to be processed, BIM said no payments can be made under the scheme until the conditions of the scheme are met. To receive the first 50% payment, for example, the vessel must have been removed from the fishing vessel register, and its boat licence surrendered.