Collapse of EU fisheries fund talks raises fears

THE collapse of negotiations yesterday on a €3.8 billion EU support fund will put further pressure on the already-struggling fishing industry.

Ireland’s €37 million share of the fund will be held up for at least three months after member states failed to agree the details of how the money should be spent.

Industry representatives said the survival of many fishermen was on the line because of huge increases in fuel costs and the closure of fisheries.

The new programme was due to come into force in January 2007 for six years with a range of measures to conserve fish stocks and help the hard-pressed industry.

But Britain, Germany and Sweden objected to the capacity replacement ratio for engine renewal, and whether this ratio was to be assessed by vessel, or whether groups of vessels could be ‘pooled’.

Other countries wanted more incentives for fishermen less than 40 years of age. The final proposal was to permit a grant of 15% to a maximum of €50,000 on their first second-hand boat.

Belgium and Poland also objected to the new programme on the grounds that its provisions to help the industry did not go far enough.

Junior Minister for Fisheries John Browne, who attended the 10-hour negotiations in Brussels, said he was very disappointed with the breakdown. “We had hoped to get agreement given that compromises were made after the failure of the last talks almost a year ago. This is not good for our fishing industry,” he said.

Funding under the National Development Plan, that includes €45m for decommissioning vessels, will continue to be available, he said.

The ministers will try to reach agreement in September but a commission expert said that even if they succeed then, it would be too late for the new programme to come into force on January 1, 2007.

“If there is agreement in September, then the best-case scenario to adopt the new programme will be the first quarter of 2007.

“There were diametrically opposing views between member states, some thinking the proposals go too far and others that they did not go far enough. This is difficult to reconcile,” she said.

Spain was to be the biggest beneficiary under the programme, due to receive over €1bn over a six-year period with France to receive €193m and Britain €123m.

As a result, there is no guarantee that the member states will reach agreement in the autumn and it could be several months after that before there would be another attempt.