The number of fishing boat owners in Ireland applying to scrap their vessels has more than doubled over the last month, as the government continues to pay fishermen to decommission their ships.
In march so far 42 fishing boats are set to be scrapped – up from 20 in February.
The figures come from Bord Iascaigh Mhara, which is overseeing the government’s decommissioning plan.
Last year the Department of Agriculture, Food and the Marine put forward a “Voluntary Decommissioning Scheme” worth €75m, which was partially funded by the EU.
The idea behind the scheme is that, as Ireland’s EU fishing quotas have been reduced, there are too many Irish fishing boats competing for scarce quota to make the industry profitable. Therefore, by paying fishermen to destroy their boats and exit the industry, the remaining fishermen have a bigger share of the catch.
Some of the vessels in question are worth up to €1.5 million each.
Fishing boats worth €1.5m to be destroyed if owners take part in plan to slash fleet size https://t.co/u9Fv89MP40
— Irish Fish Producers Organisation (IFPO) (@IFPOIreland) January 7, 2023
Under the scheme, operators will not receive the full value of their boat, but will instead only receive a portion of its total market value, with the boat being destroyed afterwards.
It’s also been revealed that boat owners who apply for the scheme will have to pay back some of the funds received from the State to not fish.
Under the Brexit Temporary Fleet Tie-Up Scheme, fishermen are being paid up to €88,700 not to fish depending on the size of their boat – but if they avail of the new boat destruction scheme, they will have to pay a portion of this back.
It is believed that the largest number of boats in one port that are being scrapped are from the West Cork town of Castletownbere, where a total of 19 boat owners have applied for the scheme. This is notable, as the town is highly reliant on its fishing industry.
Eligible vessel owners have until October 31st to apply for the scheme.
“We understand that any decision to voluntarily decommission vessels is a very difficult one for vessel owners,” said BIM Chief Executive Caroline Bocquel, speaking on the matter.
“BIM has been working closely with the industry in recent months to assist vessel owners through the process.
“By restoring the profitability of the fishing sector, it will help those remaining in the sector and support the wider economies of Irish coastal communities.”
Previously, in an interview with the Irish Examiner earlier this year, Irish South and West Fish Producers Organisation Chief Executive Patrick Murphy said the scheme was a financial “double whammy” for fishermen.
“Anybody going for decommissioning is going to face a double whammy,” he said.
“They will have to pay tie-up money back and could even end up paying to scrap their own boat.
“After fishers have paid off their debts, and paid back the tie-up money, there will be little or nothing left.
“That this has now been confirmed is sad news for anybody who has gone for decommissioning, and I can see some changing their minds and not bothering.”
He added: “At a time when we are all talking about sustainability and the so-called circular economy, the idea that these boats have to be destroyed rather than be used for purposes other than fishing is just bonkers,” describing the move as “bonkers.”