Temporary tie-up scheme for certain fishing fleet segments

A temporary tie-up scheme for fishing vessels in Ireland’s polyvalent, beam trawl and other ‘specific segments’ will be available from June 1.

This voluntary scheme will support  inshore and offshore vessels in size range >6m – < 24m. Vessels can choose from a one-month to a three-month fishing cessation.

The Covid-19 Voluntary Fleet Tie-up Scheme will support fixed costs incurred by vessel owners while tied up, and is designed to complement the Covid-19 wage supports and loan arrangements already available.

Support will range from €6,000 per month, maximum two months (<24m), to €500 per month, maximum two months (>6m).

Eligibility

Over sixty per cent of Ireland’s fishing fleet in the different size categories, in any one month, will be eligible for the scheme which will operate from July-August, to coincide with the monthly fisheries quota management periods.

“This is in order to adjust the supply of fish coming onto a currently depressed market and [to] protect quota availability for later in the year,” remarked Michael Creed, Minister for Agriculture, Food and the Marine.

Vessels not receiving support can continue to fish, to underpin government’s policy of ensuring that the food chain is maintained, he added.

“Our fishing sector has been particularly hard hit by the severe market disruption in Europe and internationally caused by the Covid-19 Pandemic. The closure of many markets and disruption of established distribution channels, particularly to restaurants and the food service industry domestically and internationally, has seen market demand and sale prices drop very substantially in many of our key markets.

“In these unique and unprecedented circumstances, it is useful to give the fishing fleet another option to help match supply with demand in the seafood markets,” Minister Creed explained.

Seafood supply chain

As some domestic and international markets have remained open during the pandemic, Minister Creed said it was important to maintain food supply, to service established customers and to be “in a position to take advantage of increased demand as markets open up”.

The Scheme will be implemented under Ireland’s European Maritime and Fisheries Fund Operational Programme 2014-20, co-funded by the Government of Ireland and the European Union.

Background

The European Maritime and Fisheries Fund (EMFF) Operational Programme 2014-20 was launched in January 2016.  The Programme provides €240m in funding to the seafood sector (fisheries, aquaculture and seafood processing) and is co-funded by the government and the European Union.

Article 33.1(d) of the EMFF Regulation (508/2014) provides for payments to fishing vessel owners for temporary cessation of fishing activities as a consequence of the Covid-19 Pandemic. This new provision was enacted by the EU on 23 April through Regulation 2020/560, as part of the EU’s Coronavirus Response Investment Initiative.

The Covid-19 Fleet Tie-up Scheme is designed to support the fixed costs incurred by vessel owners while tied up in port and to complement the wage supports and other horizontal measures made available by Government.

Fixed costs incurred by fishing vessel owners would typically include vessel insurance, loan interest, harbour charges, legal fees and accounting fees. The fixed costs arising for different vessel lengths across the fleet are returned to BIM each year as part of the EU Data Collection Framework.

To qualify for the Scheme, the vessel must have carried out fishing activities at sea for at least 120 days over the 2-year period 2018/19 and have made a first sale of fish to a minimum value of €5,000 in the calendar year 2019, by reference to the Irish Sales Note System administered by the Sea Fisheries Protection Authority.

The following payments would be made to vessel owners who apply and are approved under the scheme.

Size of vessel Payment over 1-month tie-up period Payment over 2-month tie-up period
> 24m €6,000 €12,000
18 < 24m €4,600 €9,200
15 < 18m €2,000 €4,000
12 < 15m €1,900 €3,800
10 < 12m €800 €1,600
8 < 10m €750 €1,500
6 < 8m €500 €1,000
<6m €500 €1,000

Vessel owners may apply to BIM to tie-up their vessels for one or two months out of three from 1st June to 31st August.

The closing date for June applications is 5pm, May 27. Applications for July and August will be accepted until June 20 and July 20 respectfully.

The scheme will be kept under review on a monthly basis and should markets improve, the scheme may be closed before the next tie up period comes into operation.

A maximum of 66% of the number of vessels in each of eight vessel length categories will be approved for support for any particular one-month period, ensuring that some vessels are always available to fish and continue to supply the market.