MercoPress. South Atlantic News Agency

Sector shocked at scrapping subsidy cuts

Spanish vessel owners were stunned to learn that they may have to repay some of the compensation they received for scrapping their vessels as part of the EU's fleet reduction programme. The Galician government (Xunta) says vessel owners who opted to scrap their vessels will have to repay some of their compensation if they also received government subsidies during the enforced lay off resulting from the Prestige oil spill.

Twenty vessel owners who have already scrapped their vessels, and another 106 vessel owners who were preparing to scrap their vessels this year, were left reeling by the announcement, reports La Opinion Digital. There is now deep disquiet among vessel owners and unions, who say they had been unaware of this condition.

The issue came to light two weeks ago, when the Xunta informed Costa da Morte fishermen's unions about the incompatibility between scrapping subsidies and oil spill compensation as they were preparing to permanently withdraw vessels from the fleet. According to the Fisheries Department, an amount corresponding to the compensation paid for damages caused by the Prestige disaster, which in some cases is as much as 50% of the total compensation received, must be deducted from the amount paid to the vessel owners who opt for scrapping their vessels.

Fishermen insist that following the oil spill the regional government assured them that the two sources of compensation were compatible, but the Fisheries Department says the sector was informed at the outset that deductions would have to be made.

The Department said that subsidies paid from EU funds for temporary withdrawal of vessels - in this case resulting from the Prestige disaster - and those paid for permanent withdrawal of vessels from the fleet were not incompatible as such, but had to be calculated in accordance with EU instructions.

According to Fisheries Department sources, a number of meetings took place between the authorities and fishing unions to discuss this issue during the months when fishing was suspended because of the oil spill. (FIS/MP).-