The owner of Europe's largest freezer trawler says the European Commission has forced his hand in relation to the future of his €63 million vessel.
Speaking to The Irish Times, Mr Kevin McHugh and his son, Karl, in Galway yesterday to visit the State's new marine research vessel, Celtic Explorer, have defended the final arrangement made for the 144- metre Atlantic Dawn, which allows it to fish in EU/Irish waters. The agreement has attracted much criticism because the vessel was originally designed to fish internationally.
The European Commission effectively shifted the goalposts, having initially indicated its support for the project, Mr McHugh says. He neither planned nor sought permission latterly for the vessel to fish in EU waters, he stresses, and has "nothing to hide" in relation to the arrangement now. The vessel will still work for nine months of the year off west Africa and will fish for three months off its Irish quota.
"I went out to order the construction of the Atlantic Dawn in Norway on the understanding that there was a facility in place in Brussels to accommodate a vessel like this," Mr McHugh says.
At that stage, the EU was already paying over a third of its fishery budget on international agreements with "third" or non- EU states. Ireland had not availed of an opportunity to draw down an "international segment" - unlike the Netherlands and Spain.
"We were only asking that Ireland be given the entitlement afforded already to other member-states and we were led to believe that this would be granted," Karl McHugh adds. He and his father were aware of opportunities off the west African state of Mauritania which were already being pursued by Dutch interests.
On this basis, Mr McHugh asked that the Department of Marine apply for registration under the international sector. Construction began on the 144-metre freezer trawler in Norway and Mr McHugh kept in close contact with the department. "At this point, Ireland was told that whenever it had the ships, the sector would be there for it," Mr McHugh says. "The Commission approved the Atlantic Dawn's tonnage and kilowatts to fish outside the EU."
A setback then emerged even as the vessel was nearing completion in 2000. "Ireland had a long-standing problem with the EU in relation to surplus kilowatt capacity in the pelagic [mackerel/herring\] fleet. So even though the Commission approved the Atlantic Dawn, it did not then award Ireland the crucial international entitlement to allow it to work."
The vessel arrived into Dublin port in August 2000 and was greeted by the Taoiseach, Mr Ahern, the then marine minister, Mr Frank Fahey, members of Mr McHugh's family from Achill, Co Mayo, and fellow skippers from Killybegs, Co Donegal. It was placed legally on the mercantile marine register pending a resolution with the EU and had already been given the first of a series of temporary fishing licences by the minister.
Mr McHugh isn't sure why the Commission blocked his access to the promised international segment, though he has his suspicions. "All we know is that we got pulled into a problem that existed long before the vessel was even thought of - this over-capacity situation with the domestic pelagic fleet."
The Atlantic Dawn began fishing off Mauritania with a licence negotiated directly with that government, rather than through the EU-Mauritanian contract. "However, the situation was ongoing and it had come down to the wire," Mr McHugh says. At this point, the EU was initiating legal proceedings against Ireland.
"We were told by the department that the only way this would be resolved was to take the Veronica off the Irish register." The 104-metre Veronica, sister ship to the Dawn, was built for Mr McHugh in Norway in 1994.
He was initially opposed to this, because the Veronica represented the security on the bank loan for his new venture. However, he was informed that the EU would, in turn, allow Ireland to accommodate the new ship by increasing approved kilowatts and gross registered tonnage to match its size.
"The banks were very supportive," Karl McHugh says. "The 10-year loan had been arranged through a consortium headed by the Bank of Ireland and co-funded by Anglo-Irish Bank, IIB Bank and Ulster Bank Markets. It was clear that if we were going to fully register and licence the ship, we had to make a business decision.
"We took the Veronica out, but were informed that its quota and gross registered tonnage could stay with the company."
The Veronica had an entitlement of 240 days fishing time in EU waters. "When transferred to the Atlantic Dawn, that was reduced to 95 days. So while people were shouting and roaring about the fact that the new vessel could now fish here, the reality is that we were given no option," Karl McHugh says, "and the Dawn will spend less time in EU waters and catch less fish than the Veronica."
The European Commission effectively "held Ireland to ransom" not only on this issue but also on approval for development of the whitefish fleet, Mr McHugh says.
Once the deadlock was broken, the whitefish renewal scheme went ahead. "These were very separate issues but as far as I am concerned, why should one man have to pay the penalty?"
"And still be labelled as the bad guy," his son adds.
Mr McHugh is angry with the Commission. "I feel very hurt over this, especially when I was asked to de-register a vessel that I had spent my whole life building up to. The Veronica was my livelihood, the development of 30 years' fishing."
