But the plan will need EU state aid approval before it becomes a reality.

Plans to pick up the warranty extension costs for satellite monitoring equipment on vessels were disclosed by Scottish Fisheries Minister Richard Lochhead at the Fishing 2008 show in Glasgow.

Mr Lochhead who stressed the Scottish Government is “very keen” to sit down with the fishing industry to discuss ways of trying to deal with the fuel crisis, also disclosed that the Scottish administration is “very favourable” towards picking up the costs of extending the warranty for satellite monitoring equipment.

“ If we cannot subsidise fuel directly, we have to look at other ways of reducing costs,” he said.

He said there was concern in the industry that it was being left to pick up the more than £300,000 required to pick up the warranty, however he added.

“We have now identified funds to pick this up to try to ease financial pressures on the industry.The only thing we have to overcome is to get state aid clearance.”

Bertie Armstrong, the chief executive of the Scottish Fishermen's Federation, today welcomed the news but underlined that they would be seeking a whole package of measures to ease the effect of fuel costs, to match measures already offered to other member states.

"We need to go a lot further on this issue," he said.

www.fishupdate.com is published by Special Publications. Special Publications also publish FISHupdate magazine, Fish Farmer, the Fish Industry Yearbook, the Scottish Seafood Processors Federation Diary, the Fish Farmer Handbook and a range of wallplanners.

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