This item was published during the term of a previous administration that ended in April 2007
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New grants to help reduce cod fishing
10/07/2003
Decommissioning grants totalling £40 million are being offered to the owners of 69 Scottish fishing vessels. The European Commission has also approved the Scottish Executive's £10m Transitional Aid scheme.
Minister for Environment and Rural Development, Ross Finnie today announced the details of the decommissioning scheme, aimed at reducing fishing effort on cod by a further 15-20%; and welcomed EC approval to the Transitional Aid arrangements.
Mr Finnie said:
"We need to reduce whitefish fishing effort if we are to have sustainable fisheries for the future. We agreed, at last December's Fisheries Council, to reduce cod fishing effort by 15-20%. The vessels that are the subject of decommissioning grant offers account for some 17.5% of cod fishing activity by Scottish vessels in the North Sea and to the West of Scotland.
"I am also pleased the Commission has finally approved our Transitional Aid proposals, thereby removing uncertainty within the industry about this element of the £50m support package for industry I announced last January."
Successful decommissioning applicants will have until 31 October 2003 to decommission their vessel and claim their grant. An advance (50%) of grant may be paid on surrender of the vessel's fishing licence(s) and the cessation of fishing, provided that is done by 31 August 2003.
The Executive is asking for applications for grant under the Transitional Aid arrangements by 31 July.
Agreement was reached at the EU Fisheries Council in December 2002 on the adoption of an effort control regime as part on ongoing measures to aid cod recovery. The Council also agreed substantial cuts in quotas for stocks in which Scotland has a major interest.
On 28 January Mr Finnie announced an aid package of more than £50m comprising up to £40m for decommissioning, up to £10m in transitional support and rates relief for businesses in ports worst affected by stock recovery measures.
Decommissioning grant offers are being made following receipt and consideration of competitive grant bids from interested, eligible vessel owners. Transitional Aid grant of up to £142 per Vessel Capacity Unit (VCU - a measure of fishing vessel capacity used in the UK) are available, covering the 6-month period 1 March to 31 August 2003, for eligible vessels worst affected by the stock recovery measures agreed in December.