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14 December 2009 - Lost at Sea Scheme

Part One - Appendix A - Response of the Department of Agriculture, Fisheries and Food to the Investigation Report

Ms Emily O’Reilly
OmbudsmanOffice of the Ombudsman,
18 Lower Leeson
St.Dublin 2.

Dear Ombudsman,

I refer to your letter of 4 November 2008 and the enclosed final Report and recommendations in relation to the above.

Thank you for affording additional time for the Department to consider your complex and detailed report.

As a general observation in relation to this Report, I would like to clarify that  this Department maintain the overall views that it and its predecessor, the Department of Communications, Marine and Natural Resources had submitted in relation to this matter. The Department continues to maintain that the views it had previously expressed in relation to the draft findings remain valid and were and are of considerable merit and persuasion.

It is noted that you have appended a copy of the response of  the Department of Communications, Marine and Natural Resources to the Statement of Complaint, as requested, as well as this Department’s letter of 2 July 2008 and two submissions by Deputy Frank Fahey, T.D., Minister in that Department at the time the scheme was devised. Also the amendment as requested  by Mr Tom Carroll, former Secretary General.

You asked for the submission of a calculated sum using the methods set out in the Department’s 2008 Decommissioning Scheme for fishing boats to be used as a first step in the calculation of monetary compensation for the Byrne family. These calculations and the methodology used are at Appendix A to this letter.

If you have any questions in relation to the calculations and methodology cited, please do not hesitate to contact me.

Yours sincerely

Tom Moran
Secretary General
Department of Agriculture, Fisheries and Food

11 February 2009

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Appendix A

1.  Gross Tonnage (GT) and other measurements for the MFV Skifjord used in these calculations are taken from the “Report of  Preliminary Inquiry into Marine Casualty” prepared by Captain William A Kirwan of  the Dept of  Transport -document on file dated 25/06/82.

The 2008 Decommissioning Scheme (the 2008 Scheme) operated by the Minister is confined to vessels over 18 metres in length, but that test cannot be applied in this case.

2.  The 2008 Scheme provides for a basic payment of €1,000 per GT for successful applicants. The MFV Skifjord was 245.57  GTs and on that basis a payment of  €245,570 would be indicated.

3.  The  2008 Scheme also provides for a number of additional premia subject to compliance with certain criteria, as well as reductions in some cases and specifies maximum amounts payable: These are:

• an additional  payment of €2,500 per GT for those with tradeable or transferable tonnage. This additional payment does not apply to vessels with non-tradeable or non-transferable tonnage. (NB: Tonnage obtained under the original “Lost at Sea” Scheme is not tradeable or transferable and so this additional premium has not been included in calculations for the Skifjord nor it is contended, could it be properly applied to the Skifjord).
• a pelagic premium of €1,000 per GT for vessels over 65  feet (19.81 metres) licensed without a ‘mackerel and herring preclusion’ (i.e. could have fished legally for those (pelagic) species). The Skifjord was over 65  feet and was described on the application form as having been fishing for pelagic species. As the vessel was on its way to pair trawl off the north-west of Ireland/West of Scotland are (per the accident report cited above) and given the time of year, the probability is that pelagic species were being targeted. For decommissioning applicants this premium applies only to applications received before 31 December 2007; however, that condition could not properly be applied to the Skifjord case.
• a ‘catch incentive premium’ of up to €3,000 per GT based on the declared landings (in every case tonnes weight) of specified whitefish stocks and up to 1/3 of  the catch of  non-specified stocks, but only in respect of applications received up to 31 December 2007. This premium has not been included in calculations for the Byrne family because it is not possible to estimate the possible landings. The only indication of possible use of  the replacement tonnage, had it been granted, was by Mr Anthony Byrne in partnership with another person outside of the scheme, and so only a maximum of  50% of  the putative catch could be counted towards calculation of the premium, assuming Mr Anthony Byrne would have been in a 50/50 partnership. Although a replacement vessel could have been at least of similar size, and could therefore have reached the maximum landing of whitefish to have earned the  maximum premium, there is no landing data to rely on, as is statutorily required for decommissioning applicants.
• for vessels aged between 15 and 30 years, the rate of decommissioning is reduced by 1% per year over 15. No replacement vessel was introduced in this case, so it appears there would be no proper or legal basis on which to make any such reduction.
• for  vessels 30 years or more decommissioning is reduced by 15%. Again, there appears to be no basis on which to make such a reduction as no replacement vessel was purchased by the Byrnes.
• all grants are subject to a maximum ceiling of €7,500 per GT for vessels over 19.81 metres without a mackerel or herring preclusion, and €6,500 per GT in the case of all other vessels. There are also provisions for favourable taxation arrangements for beneficiaries under the 2008 Decommissioning Scheme, for which this Department is not in a position to compute a value.

4.  In conclusion the Department would put forward, as a reasonable suggestion for compensation, a figure in the region of, €245,570.

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