Plans by the EU Commissioner, Mr Franz Fischler, to merge his fisheries and agricultural directorates have been opposed by the Fianna Fail MEP for Connacht-Ulster, Mr Pat The Cope Gallagher.

Mr Gallagher, who opened a new salmon processing plant employing 60 people in north Donegal yesterday, warned that the European Parliament's fisheries committee would oppose the move.

A member of the committee himself, the Connacht-Ulster MEP said that a merger would have serious implications for reform of the Common Fisheries Policy in 2002. "The fishing industry would be consumed by the agricultural directorate, and it would take a poor second place when it comes to funding," Mr Gallagher said.

Commissioner Fishchler made the proposal earlier this month when questioned by the parliament's fisheries and agricultural committees on his views on internal European Commission reform.

Mr Gallagher forecast a bright future for fish farming yesterday when he opened the Hydro Seafood processing plant at Renmore, Fanad, in Co Donegal. The plant, which claims to be the most northerly factory in the State, is backed by Hydro Seafood of Norway, the world's largest salmon farming company which now owns Fanad Fisheries.

Supported by the EU and Udaras na Gaeltachta, the processing plant is capable of handling 35 tonnes of product - an increase of 20 tonnes on the capability at its Kindrum site. The company prepares, processes and packs an annual 2,500 tonnes of farmed salmon.

Speaking at the event, Mr Jan Feenstra, managing director of Hydro Seafood Fanad, said that new Canadian technology which has been installed would allow for treatment of wastewater using electricity and ozone. Use of chemicals had been avoided, he said.

Referring to environmental objections to the plant, which ended up in the High Court, Mr Feenstra said that the environmentalists had played a positive role. He welcomed "constructive objections" which safeguarded the environment.