Fishing industry warns 'boats on verge of tying up' if Government does not help with fuel costs

Fishing industry representatives warned fuel was the largest single operational cost for many trawlers and other fishing vessels, meaning sharp price increases can quickly threaten the viability of businesses. Picture: Dan Linehan

The Government is trying to secure a package of aid to help the Irish fishing industry cope with high fuel prices.

Marine minister Timmy Dooley held behind-closed-doors meetings with various fishing industry representatives on Tuesday.

The meetings follow one last week with representatives of the inshore fishing fleet, which is also struggling to cope with recent fuel price hikes.

Irish South and East Fish Producers Organisation chief executive John Lynch said: “If you want to keep boats at sea, to keep the market supplied, the Government needs to do something to subsidise the boats to keep them at sea.

A lot of boats are now on the verge of just tying up because they just can’t afford to fish with the cost of fuel.

One fuel prices-related measure discussed, according to one source, is fishermen being able to claim back about €0.02c per litre on agricultural diesel — dyed green to deter misuse — for which tax is paid at a much cheaper rate.

While the industry maintains anything over €0.89c-a-litre for green diesel makes fishing unviable, prices were as high as €1.28 in some ports on Tuesday.

Although a recent renegotiated deal to change the percentage of mackerel EU member states can catch led to an EU-wide increase in mackerel quota for member states, the extra €32m will not benefit the entire Irish fishing industry.

Instead, the additional 8,000 tonnes of mackerel will go mainly to the larger, so-called pelagic fishing vessels based in Killybegs, Co Donegal, and Castletownbere, West Cork, and some smaller inshore fishing vessels.

Mr Dooley’s Department of Marine officials are understood to have ruled out any fuel rebate.

They are also understood to have flagged existing EU restrictions on the ability of any member state to provide state aid to the fishery and aquaculture sectors.

Under Article 107(1) of the Treaty on the Functioning of the European Union, any aid granted by a member state is not allowed if it can be seen to be anti-competitive and give its fishing fleet any unfair advantage over other member states.

However, exceptions can be made to the existing rules, where member states can provide aid “to make good damage caused by natural disasters or exceptional occurrences”.

Mr Dooley is understood to have last week formally asked the EU for a suspension of state aid restrictions, and a decision is due to be made in the coming weeks.

The minister and his department were asked by the Irish Examiner why the Irish fishing fleet has yet to receive help to cope with high fuel costs.

The Seafood Ireland Alliance early last month called on the Government to help fishermen cope with soaring fuel costs.

Industry representatives warned escalating fuel prices — which might now reduce with news of the two-week ceasefire in the US-Iran war — were placing severe pressure on Ireland’s fishing fleet and coastal economies.

They warned fuel was the largest single operational cost for many trawlers and other fishing vessels, meaning sharp price increases can quickly threaten the viability of businesses.

Despite the call for help, a subsidy or any other form of fuel-related help has yet to be put in place.

There have been repeated calls for help from the industry, which employs more than 17,000 people.

It has been claimed Ireland’s offshore ​and inshore fleets could be grounded if the Government does not subsidise the fishing industry’s fuel bill.

This could lead to a shortage of fish, and a direct threat to the jobs of 3,650 people in the fish processing industry​.

A Department of Agriculture spokesperson said Mr Dooley "is acutely aware of the concerns of fishermen and women" around the effects of the Iran conflict on fuel prices.

“He fully understands the fishing sector is particularly exposed to the increased cost of fuel. Accordingly, the minister strongly advocated at the EU Agriculture and Fisheries Council on Monday, March 30 for arrangements to be urgently put in place at EU level to support the sector.” 

European Commissioner for Fisheries and Oceans, Costa Kadis, has since indicated to the minister that work is now being undertaken to examine what arrangements can be put in place, the spokesperson said.

“Minister Dooley looks forward to a swift conclusion of this process by the Commission,” the spokesperson said.

“Any such decision would then allow Ireland to consider matters further, subject to relevant funding and sanctions being available at national level.”