The EU has approved a 10 million euro scheme to support the Irish fishery sector affected by Brexit and the consequent reduction in quota shares.
The 10 million euro funding under State aid rules is separate to the 5 billion euro Brexit Adjustment Reserve funding for EU states affected by Brexit.
The European Commission says the support will be “available to companies that commit to temporarily cease their fishing activities for a month”.
“The aim of the scheme is to save part of the Irish reduced fishing quota for other vessels, while the beneficiaries temporarily suspend their activities,”the Commmission says.
“The compensation will be granted as a non-refundable grant, calculated on the basis of gross earnings averaged for the fleet size, excluding the cost of fuel and food for the crew of the vessel,” it says.
Each eligible company will be entitled to the support for up to a month between September 1st and December 31st this year.
Under Article 107(3)(c) of the Treaty on the Functioning of the European Union (TFEU), member states can support the development of certain economic activities or regions, under certain conditions.T
This support will ensure the “sustainability of the fishery sector and its ability to adapt to new fishing and market opportunities arising from the new relationship with the UK”, the Commission says.
It says it will also facilitate the “objectives of the Common Fisheries Policy to ensure that fishing and aquaculture activities are environmentally sustainable in the long term”.
The approval of 10 million euros under State aid rules “does not prejudge whether the support measure will eventually be eligible for BAR funding, which will be assessed once the BAR Regulation has entered into force”, the Commission says.
“However, it already provides Ireland with legal certainty that the Commission considers the support measure to be compliant with EU State aid rules, irrespective of the ultimate source of funding,”it says.
The separate 5 billion euro BAR funding for a number of affected coastal states will be allocated later this year, drawing on three main factors - the value of fish caught in the UK exclusive economic zone; the importance of trade with the UK; and the population of maritime border regions with the UK.
The EU has said that overall some €600 million will be allocated on the basis of the factor linked to fishing, €4.150 billion based on trade, and €250 million under the factor linked to maritime border regions.
Following on from the EU approval.of State aid, Minister for Marine Charlie McConalogue announced a temporary tie-up scheme for the fishing industry on Friday evening