Minister of State at the Department of Agriculture, Fisheries and Food Tony Killeen, announced grant aid totalling €41.1 million to decommission 46 fishing vessels under the 2008 fishing vessel decommissioning scheme.

Approved applicants have until July 18 2008 to accept the offer and if they do so must surrender their fishing licences by September 12 2008. Failure to meet these deadlines by an applicant will result in the next vessel on a reserve list being offered the opportunity to decommission their vessel.

The 2008 Decommissioning Scheme, administered by Bord Iascaigh Mhara (BIM), was launched in February of this year, to permanently withdraw large fishing vessels from the whitefish sector of the Irish fishing fleet. This delivers on a central recommendation of the Seafood Industry Strategy Review Group and complements the earlier, successful, 2005 - 2006 decommissioning programme.

Today’s announcement will see some 46 boats over 18 metres in length and with a combined capacity of 7,590 gross tonnes permanently exit the whitefish fleet over the coming weeks. With an average size of 165 gross tonnes per vessel, these boats represent 68% of the overall target set for the scheme (11,140 gross tonnes) and are in addition to the 27 whitefish boats (3,323 gross tonnes) decommissioned in 2005 – 2006.

Minster Killeen said “Overall a total of 33% of the over-18 metre whitefish fleet involving 73 large vessels will have been decommissioned since 2005. The result of this decommissioning will be a significant boost to the economics of those boats remaining in the fleet. This economic lift comes from the redistribution of the whitefish and prawn catch previously taken by the vessels being decommissioned and is currently estimated at some €20 million. This will, over the next five years result in up to €100 million in additional catching opportunities for those boats that remain”.

Additionally for those going for decommissioning aid, payments received under the scheme will qualify for capital gains tax (retirement relief) which, subject to certain conditions, provides for an exemption from CGT for proceeds up to €750,000 with marginal relief applying above this limit. The qualifying age requirement for an individual making such a disposal has been reduced from 55 years to 45 years, and the required period of ownership and usage of the asset is reduced from 10 years to six, also if a balancing charge arises (in relation to income tax) these can now be spread over five years commencing in the year in which the payment is received.

Minister Killeen said “Overall this will help to put the sector on a more sound financial footing, deliver a sustainable future for Ireland’s fishermen into the future, and to bring about a viable future for the fishing sectors that will support the economies of coastal communities dependent on fishing.”

Home port and number qualifying

Clogherhead 8

Howth 6

Ballycotton 1

Helvick 1

Duncannon 2

Dunmore East 2

Kilmore Quay 9

Castletownbere 3

Dingle 4

Kinsale 2

Schull 3

Union Hall 1

Rossaveal 4

Total 46

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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