It will be a "disaster" for Ireland if members of the State's fishing fleet is proven to have been involved in illegal commercial fishing, the Minister for Communications, Marine and Natural Resources, Mr Dempsey, said today.
Mr Dempsey insisted if any wrongdoing had occurred it would be exposed and action would be taken to ensure it does not happen again.
He was quizzed after allegations of large-scale fraud emerged involving fishing boats in Killybegs, Co. Donegal.
"It would be a disaster for the country to have a reputation that we were not complying with EU laws and it would be a disaster for the taxpayer as ultimately it will be them the taxpayer who picks up the bill," he said.
The investigation follows claims by Killybegs fisherman, Mr Pat Cannon, who said there was large-scale flouting of fishing laws in the region and that the Department of Communication, Marine and Natural Resources may have colluded with the perpetrators.
The Killybegs Fishing Organisation (KFO) has denied any wrongdoing on behalf of the industry in Donegal.
Gardaí and EU authorities are set to investigate the claims after being referred to the case by the Minister for the Marine, Mr Dempsey. A spokeswoman for the Department told ireland.comthat the investigation was a matter for the Garda and documents had been forwarded to them. She could not say how long the investigation would take.
"These claims appear to be based on the testimony of only one complainant. It is vital that these allegations are dealt with speedily and I welcome the fact that Minister Noel Dempsey has immediately referred the issue to the Garda Commissioner," the Labour Party spokesman on the Marine, Mr Tommy Broughan said in a statement today.
"However, it is alarming that the claims also implicate the Department of the Marine. If there has been any widespread wrongdoing, then any investigation must be conducted as soon as possible.
"The consequences of such activity are extremely grave. The Irish fishing industryhas been fighting for years to preserve the integrity of the Irish Box and maintain its exclusive right to fish off the Irish coast," he added.
"The European Union will impose heavy fines on the entire industry that we can ill afford should these allegations be proven to be true."
The Green Party called for an independent on-board monitoring system for fishing fleets in Irish waters. Green Party Marine spokesperson Mr Eamon Ryan said: "The allegations of widespread fraud in the recording of Donegal fish catch are deeply shocking."
"Regardless of developments with the current allegations of fraud, the Green Party will be calling on Minister Dempsey to introduce a system of independent on-board monitoring of all fishing vessels in Irish waters, so that we can get an accurate picture of what is really going on," he added.
Speaking to RTEradio this morning however, Mr Sean Mr O'Donoghue, Chief Executive of the KFO, claimed that he was approached by Mr Cannon, who he then referred to the Department.
Referring to letters he received from Mr Cannon, Mr O'Donoghue said: " The letters seemed to implicate the Department and the organisation in these activities."
"As far as I am concerned any documentation we have in the organisation wouldn't support any of these allegations," he added.
Speaking of the EU and Garda investigations Mr Donoghue said the organisation welcomed it and that it had "no concerns an nothing to hide".
In May, the European Court of Justice Advocate General recommended that France be fined €115.5 million for consistently failing to police illegal fishing by its fishermen. Last night, Department sources said they had feared that the Republic, along with the Netherlands, would be inspected next by the Commission. Mr Cannon's allegations make this a certainty, they said.
Mr Cannon again contacted the Department this week to say he was sending details of his allegations to the European Commission, other EU member-states and Norway.
Additional reporting: PA