Ladies and Gentlemen
I would like to thank your Chairman and Association for the kind invitation to address you here today.
The occasion of this summit is timely from my perspective, as it will serve to bring home to me at first hand the issues facing the marine finfish farming industry in Ireland. I am well aware that there are a number of factors coming together at this point in time that combined to deliver a particularly difficult trading period for the aquaculture industry.
As the new Minister for the Marine, I am fully committed to working with yourselves and other stakeholders to provide for a sustainable future for aquaculture. This sector is particularly important from a national perspective because of the level of good quality jobs provided in peripheral coastal communities where there are few if any alternative employment opportunities.
I had the privilege last month of opening a Conference in Limerick organised by An Bord Iascaigh Mhara and entitled Farming the Deep Blue. As many of you will know the Conference was organised around the theme or vision of making offshore or open ocean fish farming a reality.
Today we are gathered to discuss more immediate issues that are causing serious difficulties for salmon farmers around the coast. However, I strongly believe that, working together, we can work through this difficult period and build a sustainable future for the sector.
I would like to initially make it clear that myself and officials in my Department are fully aware of the challenges being faced by the industry at this time. I firmly believe that these challenges can be worked through in a spirit of cooperation rather than confrontation.
We need to build for a sustainable industry that has the capacity and strength to compete at EU and international level on the basis of the quality and reputation of the product. I am committed working with yourselves to finding solutions that address the fundamental issues facing the sector.
I recognise that this will not be easy. There is no quick fix solution. We must look at all aspects of the sector and the current constraints being experienced in order to find solutions that deliver a long term sustainable future for the sector.
We are all aware that production levels on Irish salmon farms have diminished significantly through 2003 and 2004. While we can look at individual cases such as the mortalities which occurred in Donegal bay in 2002 and 2003, I believe that in general there are a number of factors, which when taken together, combine to put the industry in the difficult situation it finds itself in today.
These factors range from fish health issues such as pancreas disease to market issues such as below cost imports. The combined impact of such factors calls for an integrated response from the industry, Government and State Agencies.
That being said, I would like to address a number of issues which I know this conference will discuss in greater depth later on and on which your Association has also written to me.
Licensing and regulation, I believe, is an area that can sometimes be perceived by industry as a burden, particularly in circumstances where it may be seen as placing additional costs on an already stretched industry.
It is important, however, for me to underscore the point that not only is licensing and monitoring a legal requirement, it is vital to the longer term interests of the industry. The licensing and monitoring function performed by my Department should, I believe, be seen in a more positive light.
As I have said, the Government is committed to encouraging the future growth and development of the industry. Our overall goal is to support the sustainable development of the sector in order to maximise its contribution to jobs and growth in coastal communities and to the national economy.
It is clear, however, that this growth and development must take place in a sustainable manner. Being concerned with food production and with a key emphasis on the export market, delivery of a quality product is key to the success of the industry.
The industry has recognised this and is concentrating its overall marketing effort under the Quality Seafood Product. The industry is therefore dependent on maintaining high standards of operation and environmental protection and in an orderly, environmentally friendly and sustainable way.
That being said, I know that there are aspects of the licensing system on which your Association has some misgivings. In a spirit of cooperation I am prepared to engage constructively with the industry with a view to addressing these concerns.
That being said, we must recognise that the industry must operate in a controlled fashion having regard to environmental needs and competing demands for coastal resources. If the industry is to prosper and grow it must do so in a controlled fashion that takes account of the environment in which it operates.
One of the areas of monitoring and control that consistently attracts the interests of observers is the issue of sea lice levels on salmon farms.
I mention this, in particular, as most of you will know that my Department and the Marine Institute is currently engaged in a series of meetings with finfish farmers with regard to reaching agreement on the carrying out of a synchronous strategic treatment this winter.
The benefits of a successful treatment should hopefully be realised in the course of the year with reduced requirements for later treatments. I know this is a costly exercise for farmers at this time and their cooperation to date in this respect is to be welcomed.
My Department is cognisant of the need for speedy processing of all licence applications, including those seeking renewal or review. I would caution, however, that at all times the licensing system must conform to the requirements of openness and transparency.
One of the major threats to the industry continues to be the impact of low price imports to the Community market for farmed salmon. This is a critical issue in my view. If the market is paying a price well below the cost of production for salmon then the viability of the sector is completely undermined.
Since my appointment, I have given priority to finding a long term solution at EU level. The temporary or provisional measures introduced in August, which are based on a quota system, have not done the job expected. In fact, prices for salmon have fallen further since August.
Accordingly, my officials working closely with Richie Flynn and our Scottish colleagues have been pressing for a Minimum Import Price as the necessary solution. This approach will I believe bring stability to the market and address below cost selling. However, we have faced strong opposition from the Norwegian Government and from Member States who take the short term view that cheap salmon is best for their processing sector.
As I speak, these difficult negotiations are continuing. I can assure you that over the coming days and weeks I will continue to give top priority to working with the Commission to try to secure the necessary support for the introduction of a realistic Minimum Import Price for the European market.
In relation to support for development, under the current National Development Plan, significant funding has been available. In the more recent times, I am aware that the demand for funds has slowed down reflecting, I know, the difficult market situation for the sector.
I have also received your proposals seeking additional funds to support and revitalise the sector at this time. In this regard, I am currently reviewing your proposals and the funding options in consultation with BIM. Clearly, any possible strategies in this area will be subject to availability of funds.
We also need to look forward to the next round of Structural Funds for the period 2007-2013. I took the opportunity at Mondays Fisheries Council to outline my priorities. Going forward, I believe the principal priority areas for investment in aquaculture from the Fisheries Fund:
- Funding support for measures to improve competitiveness and the economic and environmental sustainability of finfish and shellfish aquaculture;
- Investment into the development of off-shore aquaculture systems and associated technology;
- Investment support for the devising and the implementation of quality assurance programmes;
- Financial support for the implementation of integrated local area management systems and environmental management systems in all the principal areas of aquaculture;
- Continuing financial support for the development of the techniques and technologies for species new to Aquaculture in Europe and for which growing markets are available.
- Support for market research and the development of new products based on the main aquaculture species.
Competitiveness, quality, reliability of supply and added value are the critical components of a vibrant future for the seafood sector. The development of strategies to deliver this future is the challenge for us all going forward.
I now wish to turn to one of the issues facing the sector - Pancreas disease which is possibly the biggest single threat to the industry. I understand that the Marine Institute has been working with some farms in developing trials of PD resistant fish.
I know that there is room for further research in this area and I will continue to work with the Institute in developing this aspect of its work. The industry must also play its part in terms of its approach to issues of husbandry and cooperation with the Institute in general areas of farm and bay management.
Finally I would like to end on a positive note. Yes there are challenges for the sector that must be addressed. However, I believe that if we all work together, we will successfully address these challenges.
I believe that aquaculture production continues to provide excellent opportunities for growth in seafood production and for increased employment in coastal communities. I am confident that this conference today will be a successful event and I look forward to hearing about the outcome.
Thank you.