Vessel owners who expressed an interest in decommissioning have been given further details on calculating the expected final amount applicable to them under the Brexit Permanent Voluntary Cessation Scheme
The Brexit Permanent Voluntary Cessation Scheme will open for applicants in September
How grant payment amounts are to be calculated.
Age of vessel:
Over 30 years: 20 points
20-29 years: 10 points
10-19 years: 5 points
Size of vessel:
Greater than 150 GTs: 20 points
100-150 GTs: 10 points
50-100 GTs: 5 points
Average number of days fished during the two 12-month periods from 1st January 2018 to 31st December 2019:
Greater than 180 days: 30 points
150-179 days: 20 points
120-149 days: 10 points
90-119 days: 5 points
Total landings of TCA stocks (by weight) as a percentage of total catch averaged over the two 12-month periods from 1st January 2018 to 31st December 2019:
Over 80%: 80 points
60-79%: 60 points
40-59%: 40 points
20-39%: 20 points
Less than 20%: 0 points
Applicants would need to repay any unamortised grant aid amounts awarded for capital items under the Sustainable Fisheries Scheme. We wish to clarify that the same provision will apply for capital items grant aided under any other scheme, as per the terms and conditions of those schemes.
Calculation of grant aid amounts
Please note BIM is not in a position to provide individual calculations in advance of applications being received. This information is provided as a guide to show how BIM will go about calculating grant aid amounts for eligible applicants.
Withdrawal premiums (decommissioning grants) will be paid in respect of applications approved and accepted at the following rates:
The scheme will provide to grantees a basic payment of €3,600 per GT.
CATCH INCENTIVE PREMIUM:
In addition to the basic decommissioning payment, the scheme provides a ‘catch incentive premium’ of up to €8,400 per GT for quota species covered under the TCA calculated by indexing total vessel landings of quota stocks against the maximum total landings of quota stocks by any one vessel within each segment.
The fleet segment used are as follows:
Five categories were created to index the TCA landings value per vessel.
Vessels within 80% or higher of the maximum total value of landings of TCA stocks within each fleet segment are eligible for 100% of the €8,400 per GT
Vessels with between 60-80% of the maximum value are eligible for 80% of the €8,400 (€6,720 per GT)
Vessels with between 40-60% of the maximum value are eligible for 60% of the €8,400 (€5,040 per GT)
Vessels with between 20-40% of the maximum value are eligible for 40% of the €8,400 (€3,360 per GT)
Vessels with landings below 20% of the maximum value are eligible for 20% of the €8,400 per GT (€1,720 per GT).
To give a simple example, if the vessel with the most landings of TCA quota stocks in the ‘Whitefish 12-18m’ category landed 10 tonnes, any other vessel in the same category which landed 8 tonnes or more would be eligible for 100% of the catch incentive premium;
any vessel in the same category which landed between 6 and 8 tonnes would be eligible for 80%, etc.
(Landings data will be supplied by the SFPA and will relate to a 2 year period – either 2018 and 2019, or 2020 and 2021.)
MAXIMUM ALLOWED RATE: In every case, the maximum rate of decommissioning thus calculated shall not, under any circumstances, exceed €12,000 per GT for qualifying vessels.
For vessels aged between 15 and 30 years the total premium calculated is reduced by 1% per year over 15, in every case.
For vessels aged 30 years or more the total premium calculated is reduced by 15%.
(Note that for the purpose of this scheme, the age of a vessel is a whole number defined as the difference between the year of the managing authority’s decision to grant a premium or aid and the year of entry into service, defined in Regulation (EU) 2017/1130 as, the date of first issue of an official safety certificate, or, if an official safety certificate is not issued, the date of first entry in an official register of fishing vessels. In the case of fishing vessels which entered service before the date on which Regulation (EU) 2017/1130 come into force, the date of entry into service shall be the date of first entry in an official register of fishing vessels.)
The FINAL RATE thus calculated is multiplied by the GTs of the vessel to obtain the final decommissioning premium
In the case of vessels that were granted capacity under the 2001 Lost at Sea Scheme and are eligible for decommissioning, the catch premium part of the payment (i.e. part b above) would only apply given for these vessels the capacity is non-transferable.
In accordance with the EU BAR State Aid Guidelines for the fishery and aquaculture sector, the amount of aid for permanent cessation related to Brexit will be reduced by the amount of temporary cessation support and the amount of income loss support received by operators either from the BAR or from other funds in the period between 1 January 2021 and the date of receiving the payment for the permanent cessation aid.
In the case of temporary cessation, support provided directly to crew as part of these schemes will not be deducted from the permanent cessation aid payable to vessel owners.
Note that in cases where grant aid for capital items was paid under another funding scheme, within a 5-year period from the date of final grant aid payment, the grantee must repay to BIM the proportion of that grant aid pro rata to the full term of 5 years before the withdrawal premium (decommissioning grant) can be released either in part or in full.
The grantee must fund crew compensation and scrapping of the vessel from the decommissioning grant.