The 'Atlantic Dawn' has been fishing in Irish waters, writes Lorna Siggins, Marine Correspondent

The Irish-owned supertrawler Atlantic Dawn, which is only supposed to fish in foreign waters, has just completed four weeks fishing off the south and west coast. A little over a fortnight ago, the vessel landed into Agadir in Morocco, having spent almost four weeks working off the west coasts of Ireland and Scotland. The move came within weeks of the deal brokered between the Government and the EU to allow the 144-metre vessel into the EU fleet.

The €63 million vessel, which had been the subject of legal proceedings by the EU - which blocked its inclusion in the European fleet - was availing of the quota entitlements attached to the Veronica, another vessel owned by Killybegs fisherman Mr Kevin McHugh.

A spokesman for the Department of the Marine and Natural Resources said he was unaware of the vessel's presence in Irish waters, but once it was fishing within quota it was legally entitled to do so. The 106-metre Veronica has been removed from the Irish register and is now flying a Panamanian flag under the terms of the final agreement backed by the outgoing Minister for the Marine and Natural Resources, Mr Fahey.

The decision to fish within European waters - within 60 miles of Loop Head, Co Clare, at one point - and to make the most of the end of the mackerel season has angered Irish fishermen, some of whom would have been sympathetic to Mr McHugh's case when it was still the subject of protracted negotiation.

The Irish South and West Fishermen's Organisation says it is not satisfied with the explanation it has received so far from the Department of the Marine, while the Irish Fishermen's Organisation and Green MEP Ms Patricia McKenna have been openly critical.

Atlantic Dawn was built to avail of fishing agreements between the EU and other countries such as Mauritania. As a consequence Mr McHugh did not purchase other boats and transfer over their tonnage as is normally required when a new fishing boat is built that wants to fish as part of the EU fleet. This is estimated to have saved him up to €150 million.

However, problems emerged when Mr McHugh sought to have the vessel included in the international segment of the EU fleet in order to fish under the agreements with third party countries. The problems were only resolved with the transfer of the Veronica's tonnage to the Atlantic Dawn. A side effect of this was to give the Atlantic Dawn access to the Veronica's quota for fishing within EU waters.

Official backing for Atlantic Dawn has considerably weakened Ireland's moral authority in the continuing negotiations on reviewing the EU's Common Fisheries Policy (CFP). It is this policy which will shape the future of EU waters, already under pressure, and will determine the fate of 38 new vessels being built under a €56 million investment scheme announced by the Minister for the Marine, Mr Fahey, in Galway last week.

The decision to make the long-awaited announcement on the day the EU Agriculture and Fisheries Commissioner, Mr Franz Fischler, prescribed tough medicine for the future was no accident. The Commission is determined to ban all further use of public funds for new vessels as part of its drive to reduce the size of the EU fleet.

HOWEVER, as the Minister stressed, this new scheme is simply a replacement for the old - tonne for tonne - and the concentration of effort is in the inshore sector. This means it will have little impact on Ireland's large fish import bill - running at over 65,000 tonnes to a value of €122 million, compared to seafood exports worth €330 million.

In contrast to the first fleet renewal scheme of 1998, which focused on deep water and non-quota opportunities, this second package is geared towards smaller vessels. Some 22 of the 38 vessels due to be grant-aided are under 15 metres in length, while 16 are between 16 and 46 metres. The grant constitutes 40 per cent of eligible costs for new vessels, while there are separate schemes for second-hand vessel purchase, modernisation and acquisition of safety equipment.

Under the terms of the 1998 Finance Act which applied to the first scheme, investors were able to write off their investment in certain types of new fishing vessels against other income at their top rate of tax, with half of the investment allowed to be written off in the first year. Now partnerships are not permitted, but companies can still be created which can be an attractive route for an investor, according to Bord Iascaigh Mhara.

This latest scheme was over-subscribed and applications were "rigorously assessed" according to the board. However, the geographical spread is heavily loaded towards the west coast, with only three successful applicants in Wexford and Waterford, for instance. Significantly, a second longliner for Galway fisherman, Mr Paddy O'Malley, has been approved.

Recent concerns over the state of slower-growing deep water stocks, and the move by the European Commission to fix quotas on some of the deep water species, did not influence the final selection, according to Mr Michael Keatinge, BIM fisheries development manager.

At the same time, the activity of some vessels built for deep water under the first scheme does give cause for concern. Fishermen in Dunmore East, Helvick and other ports in the south-east believe that whiting stocks have been endangered by several Donegal-based deep water vessels which have been working in the area for the last three years - as close in as three miles in one instance, according to Dunmore East co-op manager, Mr Tom Fewer.

BIM believes the new vessels do have a future. However, the review of the Common Fisheries Policy has descended into a political slanging match at EU level, and most of Ireland's proposals - for technical conservation measures, protection of the Irish Box and extension of inshore limits to 24 miles - have been ignored. The EU's broad brush approach of fleet cuts - while accepting the Atlantic Dawn - will fuel cynicism within an industry which is crying out for better management.

It also suggests the vision outlined in 1996 by former fisheries commissioner, Ms Emma Bonino, still holds. She had argued that fewer, larger vessels would "conserve" stocks, and had urged a liberalisation of the markets to provide cheap fish. In this context, there is a belief Ireland should apply for some of the €460 million which the EU wants to spend on encouraging fishermen to quit.