A new tonnage tax for the shipping industry has been welcomed as a "major psychological boost" by the sector. A threatened cutback in regional projects such as fishery harbour developments and programmes run by Bord Iascaigh Mhara (BIM) also appears to have been averted. An extra €20 million (£15.75 million) has been allocated for fishery harbour development which will allow projects in Killybegs, Co Donegal, Castletownbere, Co Cork and Rossaveal, Co Galway, to proceed.
The board's budget, which had been cut by 34 per cent in the recent Estimates, has also been amended, with a 6 per cent increase in capital allocation and a 23 per cent cut in current funding. None of the board's programmes involving whitefish fleet renewal, inshore development and fish farming will be affected by the net loss of 12 per cent in funding, the Department of the Marine says.
The new tonnage tax for shipping has been welcomed by the Minister for the Marine, Mr Fahey, as a "catalyst for renewal", while it has been described as a "huge psychological boost" by Mr Padraic White, chairman of the Irish Maritime Development Office Advisory Group.
