Joint Committee on Agriculture, Food & the Marine Speech - Fleet Segmentation & Landing Obligation Update 30th June 2015 Introduction Good afternoon Chairman. I would like to thank you for the invitation to update the Committee on the progress of the implementation of the Landing Obligation and to discuss the submission from the Fleet Subsegmentation Lobby Group on abolishing the subsegmentation of tonnage and kilowatts for the Irish Fleet. Fleet Segmentation I will begin by addressing the issue of Fleet Segmentation. The management of fishing fleets using vessel capacity in terms of vessel volume (measured in Gross Tonnes) and engine power (measured in kilowatts) is a cornerstone of the Common Fisheries Policy and was introduced in the early 1990’s. Capacity limits – known as “fleet ceilings” – are set at EU level for all Member States. To ensure that the fleet ceiling is not exceeded, Member States must manage their fleets in such a way that the entry of new capacity into the fleet is balanced by the previous withdrawal of at least the same amount of capacity. This is known as the “entry/exit regime”. The Irish fishing fleet has been divided into segments since the early 1990’s. The fleet is divided into five segments in accordance with Ministerial Policy Directive 2 of 2003, as amended. The five segments are:- Refrigerated Seawater (RSW) Pelagic Polyvalent Beam Trawler Specific Aquaculture The Specific Segment is divided into two sub-segments – the Scallop and General sub-segments. The Polyvalent Segment is divided into four subsegments – Potting, Scallop, vessels under 18m in Length Overall and vessels greater than or equal to 18m in Length Overall. The transfer of capacity between segments and sub-segments is not permitted. In order for vessels to qualify for a mackerel and/or herring authorisation, all of the capacity used to license the vessel must have the required track record as stipulated under the individual mackerel and herring fleet policies. It is important to note that fishing capacity is privately owned and is traded independently of my Department and the Licensing Authority for Seafishing Boats. The current fleet policy has been put in place over many years. The request for a change in licensing policy, involving the removal or amalgamation of segments or sub-segments, would have a substantial impact on the Irish fishing fleet. Such changes could potentially have significant impacts on access to fishing resources and the management of quotas. There are many diverse views within the fishing industry and these often conflict. It is important therefore, that views such as those proposed are debated widely within the industry. The objective is to achieve the maximum possible level of agreement and support within the industry for any proposed changes being sought. The Fisheries (Amendment) Act 2003 transferred the function of sea-fishing boat licensing to the Licensing Authority for Sea-fishing Boats and provides that the Licensing Authority is independent from the Minister in the exercise of its functions. As Minister, I have responsibility for policy in relation to sea-fishing boat licensing and may issue policy directives in this regard. However, under the 2003 Act I am precluded from getting involved in individual cases, or a group of cases, with which the Licensing Authority is or may be concerned. For this reason, it is preferable that proposals for changes to licensing policy are made through the recognised representative structure of Producer Organisations. In this way, a business case for changes to the licensing policy would be fully examined, including both positive and negative consequences for operators with divergent fishing activities covering both large and small operations. I would encourage the group of vessel owners in this instance to engage with the Producer Organisations so that any proposed changes can be brought forward with a full understanding of the views across the industry. Given the potential impact of changes to licensing policy, any amendments that I might consider bringing forward would be subject to a public consultation with stakeholders. Landing Obligation Update With regard to the Landing Obligation, or “Discard Ban” as it is sometimes called, the recent regional agreement, brokered by Ireland, on extending the Landing Obligation to a number of important whitefish stocks brings us another step closer to eliminating the wasteful and unsustainable practice of discarding. The reform introduced a practical and phased discards policy. The first part of the landing obligation, the ban on discarding pelagic stocks such as herring and mackerel, came into effect from the 1st of January 2015. The landing obligation will be extended to certain demersal stocks (whitefish and prawns) from the 1st of January 2016 and will be fully phased in by the 1st January 2019. The phasing in period will allow fishermen time to adjust and implement changes that will allow for the avoidance of unwanted catches. A major element of the new CFP is the introduction of regionalisation. This gives Member States in a region, working together, greater power to make decisions on the management of their own fish stocks and moves away from the former “one size fits all” approach. It also underscores the importance of meaningful input from stakeholders, requiring that Member States consult with the relevant Advisory Councils, consisting of stakeholders from industry and environmental NGO’s. Ireland is a member of the North Western Waters Group along with Belgium, France, the Netherlands, UK and Spain. The preparation of the Discard Plan for whitefish species was carried out during the period of Ireland’s chairmanship of the North Western Waters Group (January to June 2015). The Member States worked closely with the North Western Waters Advisory Council which involves representatives of the fishing industry and other stakeholders. The Advisory Council representatives attended and imputed into the meetings of the North Western Waters Group. The entire process was extremely demanding, given the high bar of having to come to a unanimous agreement among six Member States. An agreement was finally reached in May on a Discard plan for whitefish stocks to take effect from the 1st January 2016. The ban on discarding will apply to the prawn (nephrops) fishery in all waters, the whiting fishery in the Celtic Sea, the haddock fishery in the Irish Sea and in the North West area, the hake fishery in all areas and the sole fishery in the Celtic Sea from the 1st January 2016. The vessels which will be subject to the landing obligation in 2016 will be identified on the basis of a combination of gear type and historic landing data. So for example, a vessel that had landings in 2013 and 2014 of more than 25% cod, haddock, whiting and saithe combined in its landings in the Celtic Sea will be obliged to land all whiting in 2016. The other species will be phased in over the following 3 years. Another important element is the inclusion of what are known as deminimis exemptions. What this means is that, in the example I just gave, a vessel obliged to land whiting in the Celtic Sea will still be allowed to discard a small percentage. These deminimis exemptions are only allowed where it is difficult in the short term to dramatically improve selectivity without having an unduly onerous economic effect. In terms of setting Total Allowable Catches and quotas for 2016 in December, I will be seeking a quota uplift for the stocks subject to the landing obligation. This is needed to take account of the situation that in 2016 discarding of these stocks will not be permitted. The Irish industry has been kept fully informed throughout this process through the Discards Implementation Group, chaired by Dr. Noel Cawley. I established this Group to allow the Irish fishing industry to be fully prepared for, and engaged in, the implementation of the discards ban. Agreement on the discard plan for 2016 provides the Discards Implementation Group with a clear blueprint to help prepare the industry for the forthcoming changes. I am providing funding support to the fishing industry through the new EU Fisheries Operational Programme, which I am currently progressing, for the effective delivery of the new measures. I have made €450,000 available in 2015 to BIM and the MI to undertake a project over the summer period, exploring the potential impact of the landing obligation on commercial fishing activity. This project will follow up on the discard simulation trials conducted last autumn. I firmly believe that the biggest challenge will be to develop and implement improvements in selectivity and the development of other means that enable fishermen to avoid juvenile fish or unwanted catches. I know that the national Discards Implementation Group is prioritising this work. Our fishermen themselves, working with BIM and the Marine Institute are best placed to find better ways of fishing. I will strongly support this work through the new Fisheries Operational Programme. I am confident that we are moving forward into a new era where healthy fish stocks, fished sustainably are the norm which will give assurances of economic stability and profitability to our fishing industry and dependant coastal communities.