Interest in scheme to renew whitefish fleet welcomed

The Government has received more than 50 applications for its scheme to renew the whitefish fleet. Welcoming the high level of interest, the Minister for the Marine and Natural Resources, Dr Woods, said it "exceeded all expectations". The response confirmed the attractiveness of the package of grant aid and tax incentives for vessel owners. he said.

Applications from Donegal, Mayo, Galway, Kerry, Cork, Waterford, Wexford, Wicklow and Louth have been submitted to Bord Iascaigh Mhara. The Minister confirmed that he has asked the board to evaluate applications within the next eight weeks. All applications will be thoroughly and fairly assessed, he said.

Dr Woods also confirmed that the first batch of applications for grants for safety equipment had been received by BIM. Successful applications under this first round will be announced before the end of the month.

The Irish South and West Fishermen's Organisation (IS&WFO) has welcomed the whitefish renewal package, but criticised the small level of State aid involved - £2.5 million in a £40-million scheme. Modernisation grants were also too small, the organisation said. Though the package was "long overdue and welcome", the IS&WFO said the EU must take cognisance of the disadvantaged position of the Irish whitefish fleet.

The three-year fleet renewal package announced by the Minister earlier this summer and agreed with the European Commission was put together by BIM.

It has been heralded as a "new dawn" by Mr Joey Murrin, of the Killybegs Fishermen's Organisation. The package comprises some £9 million in EU and State grants and over £30 million in investment through tax incentives.

Some 45 per cent of the cost of about 27 new vessels will be financed, and 10 to 15 per cent of the cost of modern second-hand vessels. There will 25 per cent grant-aid for refurbishing existing boats, and 50 per cent assistance for purchase of safety equipment.

Some 400 vessel owners are expected to benefit, with a spin-off of up to 500 additional jobs in the industry. BIM anticipates it will boost the value of landings by almost £30 million annually. Fish exports are running above £200 million at present, with more than £155 million being sold to the European market.

The tax incentives, which were incorporated in the recent Finance Act, provide for accelerated capital allowances in the first year of 50 per cent, with remaining capital allowances spread at a rate of 7.5 per cent over years two to seven, and 5 per cent in year eight.