EU gives Ireland green light for fishing industry bailout over fuel crisis

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

Ireland has been given the go-ahead from the EU to bail out its fishing industry from the fuel crisis.

Until Thursday, any aid granted by a member of the EU was not allowed if it gave its fishing fleet any unfair advantage over other member states.

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

The European Commission has, after a request by fisheries minister Timmy Dooley, activated a specific crisis mechanism which allows member states to provide financial compensation to fishermen whose livelihoods have been disrupted by the consequences of the conflict in the Middle East.

The EU said the measure, which applies retroactively from February 28, “reflects the severe impact that the region's hostilities are having on the EU's fishery and aquaculture sector”.

Financial support activated under this decision is drawn from each EU country's existing European Maritime, Fisheries and Aquaculture Fund (EMFAF) allocation under their 2021–2027 national programme.

Meanwhile, the EU will co-finance a share of the eligible expenditure.

What the new measure could mean for the Irish fishing industry is at least up to around €3.5m per month until July, spread among fishing vessels hit by fuel price hikes, and other financial measures to ensure they either continue fishing or return to the sea.

A lot of boats are on the verge of tying up because they 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 89c per litre for green diesel makes fishing unviable, prices were as high as €1.28 in some ports last week.

The newly-announced EU emergency support measures come under the 2021–2027 EMFAF programme, of which €760m of the initial €1.3bn is still immediately available to member states.

In a statement, EU officials said: “The crisis also highlights the structural vulnerability of a sector dependent on fossil fuels.

“Accelerating the energy transition remains essential for the long-term competitiveness, resilience and profitability of the EU fishery and aquaculture sector.

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“Hostilities in the Middle East have driven up the price of energy and raw materials, significantly increasing operating costs and squeezing profit margins across the EU's fishery and aquaculture sector.

“Part of the Union's fishing fleet has already ceased operations due to reduced profitability. The aquaculture and processing sectors are similarly affected.” 

Under the activated mechanism, all member states can grant financial compensation for income foregone and additional costs resulting from the current market disruption.

The EMFAF crisis mechanism is a temporary measure, and support can only be provided for expenditure incurred until the end of 2026.