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   (Text with EEA relevance)
Date: 2006-06-07
Institutions: European Commission
Subjects: Ireland, State aid, control of State aid, fishing fleet, sustainable development

C 132/40

EN

Official Journal of the European Union

7.6.2006

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 shell-
fish 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 Regu-
lation (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 decom-
missioning 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 approxi-
mately 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.

7.6.2006

EN

Official Journal of the European Union

C 132/41

Legal basis:

The Sea Fisheries Act 1952

Sea Fisheries amendment Act 1955

Sea Fisheries amendment Act 1956

Sea Fisheries amendment Act 1959

Sea Fisheries amendment Act 1963

Sea Fisheries amendment Act 1970

Sea Fisheries amendment Act 1974

Sea Fisheries amendment Act 1982

Sea Fisheries amendment Act 1994

Sea Fisheries amendment Act 2003

Annual expenditure planned under the scheme or overall amount of individual aid granted to the
Company:

— Overall amount EUR 45 million

— Annual budget for 2005 is EUR 3,5 million

— Annual budget for 2006 is EUR 19 million

— Annual budgets for subsequent years to be adopted as part of the national budget.

Maximum aid intensity:

— Withdrawal premiums (decommissioning grants) will be paid in respect of applications approved and
accepted in line with the EU regulations at the following rates: (Basic rate less age adjustment less
segment adjustment).

Basic rate

Gross tonnage of vessel (GT)

Premium per vessel

25 < 100

100 < 300

300 < 500

500 and over

Age adjustment

EUR 4 200 per GT + EUR 82 000

EUR 2 700 per GT + EUR 232 000

EUR 2 200 per GT + EUR 382 000

EUR 1 200 per GT + EUR 882 000

Vessels 15 years:

as per basic rate

Vessels 16-29 years:

as per basic rate less 1,5% for every year over 15

Vessels 30 years or more:

as per basic rate less 22,5%

Segment adjustment

Vessels in the Beam trawl segment:

as per basic rate adjusted for the age of the vessel

Vessels in the Polyvalent segment:

as per basic rate adjusted for the age of the vessel

Vessels in the Specific segment:

as per basic rate adjusted for the age of the vessel less 15% in every
case

C 132/42

EN

Official Journal of the European Union

7.6.2006

Date of implementation: 1 October 2005

Duration of scheme or individual aid award: 31 December 2008

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’

— Withdrawal premiums (decommissioning grants) will be paid in respect of applications approved and
accepted in line with the EU regulations at the following rates: (Basic rate less age adjustment less
segment adjustment).

Basic rate

Gross tonnage of vessel (GT)

Premium per vessel

25 < 100

100 < 300

300 < 500

500 and over

Age adjustment

EUR 4 200 per GT + EUR 82 000

EUR 2 700 per GT + EUR 232 000

EUR 2 200 per GT + EUR 382 000

EUR 1 200 per GT + EUR 882 000

Vessels 15 years:

as per basic rate

Vessels 16-29 years:

as per basic rate less 1,5 % for every year over 15

Vessels 30 years or more:

as per basic rate less 22,5 %

Segment adjustment

Vessels in the Beam trawl segment:

as per basic rate adjusted for the age of the vessel

Vessels in the Polyvalent segment:

as per basic rate adjusted for the age of the vessel

Vessels in the Specific segment:

as per basic rate adjusted for the age of the vessel less 15% in every
case

Sector(s) concerned: Sea fishing sector

Name and address of the granting authority:

Mr Michael Keatinge
Fleet Development Section,
Fisheries Development Division,
BIM,
Crofton Road,
Dun Laoghaire,
County Dublin
Irlande

Web address:

— Mr Padraic White

‘Decommissioning requirements for Ireland's Demersal and Shellfish Fleets’

http://www.dcmnr.gov.ie/NR/rdonlyres/37FF784D-29C8-4AE8-9805-FC9B1B219D16/0/WhiteReport-
Final.pdf

7.6.2006

EN

Official Journal of the European Union

C 132/43

— Building a sustainable future for Irelands fishing fleet

http://www.bim.ie/uploads/reports/122Building%20a%20Sustainable%20Future%20for%20Irelands%20-
Fishing%20Fleet%20.pdf

— The Sea Fisheries Act 1952

http://www.irishstatutebook.ie/1952_7.html

— Sea Fisheries amendment Act 1955

http://www.irishstatutebook.ie/1955_17.html

— Sea Fisheries amendment Act 1956

http://www.irishstatutebook.ie/1956_30.html

— Sea Fisheries amendment Act 1959

http://www.irishstatutebook.ie/1959_28.html

— Sea Fisheries amendment Act 1963

http://www.irishstatutebook.ie/1963_21.html

— Sea Fisheries amendment Act 1970

http://www.irishstatutebook.ie/1970_8.html

— Sea Fisheries amendment Act 1974

http://www.irishstatutebook.ie/1974_30.html

— Sea Fisheries amendment Act 1982

http://www.irishstatutebook.ie/1982_12.html

— Sea Fisheries amendment Act 1994

http://www.irishstatutebook.ie/1994_23.html

— Sea Fisheries amendment Act 2003

http://www.irishstatutebook.ie/2003_21.html