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Representation in Ireland
News article18 October 2023Representation in Ireland

Commission approves €7 million Irish State aid scheme to compensate fish processing sector in the context of Brexit

The European Commission has approved, under EU State aid rules, a €7 million Irish scheme to support the fish processing sector affected by the effects of the withdrawal of the UK from the EU.

Fishermen in Irish port

The aim of the scheme is to compensate fish processing companies for the loss of turnover experienced in 2021 due to

(i) reduced supply of fish directly impacted by quota reductions following Brexit and

(ii) increased operational costs for logistics and administration associated with Brexit.

The aid will take the form of direct grants and be set at a maximum of 35 % of the first €500,000 of turnover losses and 20 % of the remaining balance of losses. The maximum aid amount per beneficiary will be equal to €300,000. The scheme will run until 31 December 2023.

The measure is planned to be financed under the Brexit Adjustment Reserve, established to mitigate the economic and social impact of Brexit, subject to approval under the specific provisions governing funding from that instrument.

The Commission assessed the scheme under Article 107(3)(c) of the Treaty on the Functioning of the European Union, which allows Member States to support the development of certain economic activities or regions under certain conditions, and under the Guidelines for State aid in the fishery and aquaculture sector. The Commission found that the scheme facilitates the development of an economic activity and does not adversely affect trading conditions to an extent contrary to the common interest. On this basis, the Commission approved the Irish scheme under EU State aid rules.

The non-confidential version of the decision will be made available under the case number SA.108134 in the State aid register on the Commission's competition website once any confidentiality issues have been resolved.

Details

Publication date
18 October 2023
Author
Representation in Ireland