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Summary information on State aid granted in conformity with Commission Regulation (EC) No 1595/2004 of 8 September 2004 on the application of Articles 87 and 88 of the EC Treaty to State aid to small and medium-sized enterprises active in the production, processing and marketing of fisheries products

(2006/C 132/11)

(Text with EEA relevance)

The Irish Government has introduced a scheme to remove excess capacity in Ireland's demersal and shellfish fleets, through the scrapping of vessels, in the face of decreasing fishing opportunities brought about by cuts in fish quotas. In a situation where there can be no expectation of increased catches in the short term, this scheme is designed to target those fishermen who find themselves in a position where they are no longer getting an economic return, and to deliver a sustainable future for those that remain in the industry.

The scheme is in conformity with Article 7, Annex III and Annex IV of Council Regulation (EC) No 2792/1999 and Council Regulation (EC) No 2370/2002 as required by Article 10 of Commission Regulation (EC) No 1595/2004. Initial approval was given for this scheme in SG(2001)D/289046, 08/06/01 — Aid No: N525/2000.

As required by Article 3 of Commission Regulation (EC) No 1595/2004, Ireland has verified the aid granted under that Regulation complies with Community law. Ireland will also ensure that the requirement in Article 3 that Member States verify that the beneficiaries of the aid comply with the rules of the Common Fisheries Policy.

Explanatory remarks: In July 2005 a report, prepared by Mr. Padraic White, was submitted to the Marine Minister and the Irish Government entitled, Decommissioning Requirements for Ireland's Demersal and Shellfish Fleets (See enclosed). The Government approved the recommendations of this report and allocated EUR 45 million to be spent on a Scheme for the Adjustment of Fishing Effort in the period 2005 to 2008. Approval of the terms and conditions of the scheme, to be administered by the Irish Sea Fisheries Board (BIM), were then prepared and submitted to the European Commission (DG Fish) for approval. That approval was received from DG Fish in their letter of 4 October 2005 (D 10795).

The purpose of the report prepared by Mr. White was to establish the urgency, scope and cost of a decommissioning scheme for Ireland's demersal and shellfish fleets to tackle the imbalance between the size of the fleet and the available fishing opportunities.

In examining the current state of the demersal and shellfish sectors, the report presented an economic analysis, which demonstrated that whitefish stocks would have to be 30 % greater than they are to yield a viable return for that section of the fleet at its current size. Similar considerations were shown to apply to the shellfish fleet. As there is no prospect of either stocks, or permitted fishing activity, increasing in the foreseeable future, a scheme to permanently withdraw 25 % of the capacity of the demersal fleet (over 10 000 GT), and to reduce the scallop fleet to 4 800 kW, was recommended so as to ensure a reasonable economic return for those fishermen remaining in the sector. It was recommended that reducing the scallop fleet to the level of 4 800 kW or 1 300 GT would allow the remaining fleet to fish for approximately 130 days a year, giving a much improved fishing effort allocation to the remaining vessels.

The recommendations of this report were ultimately based on the goal of ensuring a more secure future, based on better economic returns for those remaining in the industry and their coastal communities.

Member State: Ireland

Aid No: XF 1/2006

Region: NUTS code level IV

Title of aid scheme or name of company receiving an individual aid: Building a Sustainable Future for Ireland's Fishing Fleet — A Scheme to permanently withdraw capacity form the demersal and shellfish sectors of the Irish fishing fleet.

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Objective of aid: To provide Aid for a Vessel Decommissioning Scheme whereby fishing vessels may be permanently withdrawn from the Irish fishing Fleet and removed from the Register of Sea Fishing Vessels.

Indication of the Article used (Articles 4 to 12) and of the eligible costs covered by the scheme or the individual aid award: Article 10 ‘aid for permanent cessation of fishing activities’

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Age adjustment

Segment adjustment

Sector(s) concerned: Sea fishing sector

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