Explanatory note

This Scheme provides for the making of grants by the Department of Agriculture and Rural Development, in respect of the decommissioning of fishing vessels.

Applications for grant will be considered in respect of vessels meeting the requirements set out in Article 3 of the Scheme. These include a requirement that to be eligible a vessel must be at least 10 metres in length and licensed with a Category A licence, other than a Category A (Pelagic Purser), a Category A (Pelagic Freezer) or a Category A (Pelagic Trawler) licence. The vessel must be a “Northern Ireland based vessel” as defined in Article 3(5).

Articles 4 to 6 of the Scheme lay down a procedure for the making, consideration and approval of applications. Applications must be in respect of one vessel only and include a bid by the applicant for the amount of grant for which the applicant offers to decommission and de-register the vessel and surrender all licences and claims to licences in respect of the vessel. Bids will be selected for approval in accordance with Article 5. The Department can determine conditions to which an approval is subject and may require certain undertakings (Articles 6(1) and (2)).

The Department is empowered from time to time to determine a date (“the appropriate decommissioning date”) by which a claim for grant in respect of an approved application must be lodged. In order for grant to be payable the Department must be satisfied that decommissioning (by a method having the prior approval of the Department) has taken place, that the vessel has been deregistered and licences and claims to licences have been surrendered (Articles 7, 8 and 9). In the event of substantial damage or destruction of the vessel the applicant is required to provide the Department with certain information (Article 10).

The amount of grant in respect of an approved application is the amount of the bid subject to any modification in the amount required by Council Regulation 2792/99 as read with Council Regulation 2370/2002 (Article 11) and provision is made concerning the method of payment of grant (Article 12). Applicants are required, on request, to give assistance to authorised officers of the Department, who are given powers of entry and inspection for specified purposes (Articles 13 to 14), and provision is made for the reduction, withholding and recovery of grant in certain circumstances and for the payment of interest on grant recovered (Articles 15 and 16).

Section 17(4) of the Agriculture and Fisheries (Financial Assistance) (Northern Ireland) Order 1987 creates offences in respect of the production of false statements or documents in purported compliance with any requirement imposed by the Scheme and wilful refusal to supply information, make returns or produce documents when required to do so by or under the Scheme.

This Scheme is made by virtue of Article 7 of Council Regulation (EC) No. 2792/99 laying down the criteria and arrangements regarding Community structural assistance in the fisheries and aquaculture sector and the processing and marketing of its products (O.J. No. L337, 30.12.99, p. 10), as corrected by Corrigenda, O.J. No. L83, 04.04.00, p. 35 and O.J. No. L2, 05.01.01, p. 41 and as read with Council Regulation (EC) No 2341/2002 (O.J. No L356, 31.12.02, p. 12).