2626. Deputy Conor D. McGuinness asked the Minister for Agriculture, Food and the Marine whether he or his Department has formally sought a derogation from European Union State aid rules to facilitate an emergency income support scheme for Ireland’s inshore fishing sector; if so, to provide details of the request, the response received and the current status of the matter; and if he will make a statement on the matter. [58143/26]

2627. Deputy Conor D. McGuinness asked the Minister for Agriculture, Food and the Marine to detail all formal and informal engagement undertaken by him or his Department with the European Commission regarding the possibility of securing a derogation from State aid rules to facilitate an emergency income support scheme for Ireland’s inshore fishing sector, including the dates of meetings, correspondence exchanged and the current status of those discussions. [58144/26]

I propose to take Questions Nos. 2626 and 2627 together.

Ireland, as an EU Member State, is required to comply with the State Aid regulations. The European Commission oversees the application of State Aid rules among Member States. Failure to comply with the State Aid rules, such as a failure to provide notification to the European Commission or implementing the aid without approval can result in the Member State being required to recover any aid provided. These rules also provide for added interest to be applied.

Following a review of union legislation there are no means for which derogation may be sought from State Aid rules at this time, however, Member States may use EMFAF funding to provide aid in respect of increased costs or production losses in exceptional and limited circumstances, and only where the Commission has made an implementing decision under Article 26(2). Currently there is an implementing decision in place that would allow any such aid to be provided under the EMFAF, but is limited to increases in fuel costs as a result of the Middle East conflict.

The Fishing and Aquaculture Registered Vessel Fuel Support Scheme which was implemented under the Middle East crisis Temporary State aid Framework (METSAF) closed for applications on Wednesday 17th June.  481 applications are in progress and estimated payments will amount to approximately €10.5 million. Letters of Offer have begun to issue and payments will be made in the coming weeks.