The £50 million (€63.49 million) Irish supertrawler, Atlantic Dawn, has been given an extension to its temporary licence, as negotiations on its future continue with the European Commission.
The Minister for the Marine and Natural Resources, Mr Fahey, extended the licence "indefinitely" before its expiry date at the end of September, but there has been no breakthrough in his department's talks with Brussels on accepting the vessel as part of the EU international fleet.
Sources close to the owner, Mr Kevin McHugh, denied late last week that the Minister's officials had "gone cold" on the project, and said that Atlantic Dawn Ltd was receiving "100 per cent co-operation" from the Department. The financial institutions associated with the project, Anglo Irish Bank, IIB Bank, Ulster Bank Markets and Bank of Ireland are "aware" of the negotiations, the sources said, and have not sought to renegotiate the debt facility.
The vessel is still fishing off the west African state of Mauritania under a private licence secured by Mr McHugh, after the EU blocked his attempt to fish under an EU international or "third country" agreement. Under the terms of the bank loans, the firm must keep the vessel registered as "an Irish fishing vessel".
EU legislation stipulates that a vessel must be on the EU register to obtain a fishing licence. The Atlantic Dawn, delivered to Ireland from a Norwegian shipyard last year, is not on the Irish or European sea fishing boat registers and is on the mercantile marine register here. The European Commission has questioned the legality of this, and focused on the size of the existing pelagic (mackerel and herring) fleet here at a time when Brussels is trying to reduce fishing tonnage throughout Europe.
Mr Sean O'Donoghue, chief executive of the Killybegs Fishermen's Organisation, said the pelagic fleet size issue had arisen before the delivery of the Atlantic Dawn, and the Commission was using the Dawn's arrival to try to lever an unfair agreement from the Government here.
"We contend that we met our pelagic fleet targets in 1996, but the Commission moved the goal posts in 1997. We believe the situation is close to resolution, but if it is not to our satisfaction we certainly won't be sitting down quietly."
In defence of Mr McHugh, Mr O'Donoghue said Ireland was entitled to participation in the EU's international segment under Article 8 of the Multi-Annual Guidance Programme which determines a state's overall fleet size and capacity. Holland has up to 10 vessels fishing under the EU agreement with Mauritania, whereas Mr McHugh had been forced to broker a private deal.
"Two to three of these vessels have the same carrying capacity as the Atlantic Dawn," Mr O'Donoghue said. "Holland has its problems with its own national fleet size, and yet it has been able to avail of participation in the international segment."
Mr Michael Keatinge, fisheries development manager at Bord Iascaigh Mhara (BIM), told The Irish Times the Atlantic Dawn negotiations had no bearing on the Government's scheme to renew the whitefish fleet. The latest round of grant-aid supports for whitefish vessels is due to be announced by Christmas. But he questioned the focus on Mr McHugh's vessel when it only represented "a percentage" of European tonnage fishing off west Africa.
"The reality is that the Dutch have moved in to that area in strength," Mr Keatinge said. "If Europe is to live up to its commitment to sustainable fishing, it should be pro-active in applying science, and in conducting its international fishery in a precautionary fashion," he said.
He said he believed the European Commission had failed to support suitable scientific monitoring, in co-operation with third countries. "So, until we have that information, let's not point the finger at one Irish vessel, when the vast majority of effort is being applied by another member-state."