Press release
Minister McConalogue secures State Aid approval for €8 million liquidity aid scheme for Irish Seafood Sector
From Department of Agriculture, Food and the Marine
Published on
Last updated on
From Department of Agriculture, Food and the Marine
Published on
Last updated on
Minister for Agriculture, Food and the Marine Charlie McConalogue today announced two new Brexit Adjustment Reserve (BAR) funded schemes, representing a combined support package of an additional €8 million for the Irish seafood sector.
The new schemes are as follows:
Announcing the schemes, the Minister said:
“I am pleased to announce today the implementation of further recommendations of the Seafood Task Force, designed to assist fisheries cooperatives and fish processors to overcome the impacts of the reduction in quotas arising from the Trade and Cooperation Agreement (TCA). These schemes will make an additional €8 million in support available to the Irish seafood sector and as of the end of October increases the BAR funding I have announced to €304.9 million.”
These schemes are based on the recommendations of the Seafood Taskforce which was established by Minister McConalogue in 2021 to assess the impacts of Brexit and the TCA on the fishing sector and coastal communities.
The Minister continued:
“Today’s announcement of a combined €8 million in support recognises the significant impact of the EU-Brexit TCA across the Irish Seafood Sector, and in particular in Ireland's more peripheral rural and coastal communities. In taking the form of direct grant aid, these schemes will support processors and fish cooperatives in dealing with challenges arising from a reduction in raw material. I am confident that this funding will further support the Irish seafood sector to adjust to the changed environment that we find ourselves in, and help ensure a profitable and sustainable seafood sector into the future. Now that I have secured State Aid approval from the EU Commission, I will be instructing BIM to administer these schemes without delay.”
Bord Iascaigh Mhara (BIM), Ireland’s seafood development agency, will administer these schemes on behalf of the Department of Agriculture, Food and the Marine, and further information will be available once the schemes are launched, from the BIM website.
In March 2021, Minister McConalogue set up the Seafood Sector Task Force to examine the implications for the Irish Fishing industry and coastal communities particularly dependent upon it arising from the Brexit Trade and Cooperation Agreement, agreed between the European Union and the UK. The Task Force was charged with recommending initiatives that could be taken to provide supports for development and restructuring, so as to ensure a profitable and sustainable fishing fleet and to identify opportunities for jobs and economic activity in coastal communities dependent on fishing.
The scheme will compensate processors that have suffered a reduction in turnover of at least 15% or more in the 12-month period of January to December 2021 compared to the average annual turnover for 2018 to 2020. Applicants must demonstrate that this reduction in turnover is attributed to the TCA in respect of reduced supply of species directly impacted by quota cuts and/or because of increased operational costs for logistics and administration associated with Brexit. The support is designed to stabilise cashflow and assist processors to adapt operations to the new trading arrangements with the UK. It will facilitate an orderly transition during the time needed for such companies to find alternative suppliers or to implement other structural measures (for example: reconversion to other raw material or orderly reduction of business activity) post-TCA.
This short-term aid is required to offset the reductions in turnover experienced by the Co-operatives during 2022. It aims to covers losses in turnover directly experienced due to reductions in raw material arising from the TCA-induced quota transfers. Reduced fish sales for the Co-operatives means a reduction in the commission received from such sales, thus impacting on the co-operatives’ ability to operate. Most importantly, it will continue to facilitate an orderly transition in the short-term to allow the co-operatives to re-configure and re-structure their businesses in the longer-term to adapt to the changed trading environment under the TCA.
The Co-operatives have indicated they are planning long-term initiatives around the areas of increasing processing capacity on site, added value opportunities, improved logistics and increased cooperation to secure and enhance their businesses. The co-operatives must demonstrate that this reduction in turnover is attributed to the TCA in respect of reduced supply of stocks directly impacted by quota cuts. The support is designed to stabilise cashflow and adapt operations to the new trading arrangements with the UK.