€161 million in of BAR aid has now been distributed to Danish fisheries and the fishing industry. Photo: DFPO
The Danish Fisheries Agency has reported that DKK 1.2 billion (€160.9m/£139m) in Brexit aid has now been disbursed to Danish fisheries and the fishing industry from the Brexit Adjustment Reserve Fund (BAR).
To mitigate the negative consequences of Brexit, the EU established BAR of which the Danish share of this reserve is around DKK 2 (€268m/£232m) billion. Approximately DKK 1.272 billion was allocated to the fisheries sector and local areas. The funds were distributed to various parts of the sector through a political agreement among all parties in the Danish Parliament in December 2021.
Since May 2023, the Danish Fisheries Agency has disbursed a total of DKK 1.2 billion (€160.9m/£139m) to the fisheries sector. The final deadline for using the funds from the Brexit Reserve is 31 December 2023, and efforts have been made intensively to make the last disbursements.
The majority of the funds have been disbursed by the Danish Fisheries Agency as compensation to fishermen who, on 31 December 2020, owned quotas that were reduced due to Brexit.
Additionally, there has been an opportunity to apply for support for the scrapping of fishing vessels. Support has been disbursed to the owners of 28 fishing vessels. The scrapping support aims to reduce fishing capacity to align with the reduced fishing opportunities for Danish fishermen after Brexit.
Overview of different Brexit schemes for the fisheries sector:
- Fund for compensation for fishermen’s loss of quota value:
– Approximately DKK 791 million (€106m/£91.7m) has been disbursed to owners of 157 fishing vessels. Compensation is calculated based on the reduction in individually owned fishing quotas due to Brexit.
- Fund for scrapping fishing vessels:
– Approximately DKK 215 million (€28.8m/£24.9m) has been disbursed for the scrapping of 28 fishing vessels, which are now permanently out of fishing. Quotas from the scrapped vessels have also been purchased. The purchased quotas are intended to support coastal fishermen in maintaining their fishing at a level comparable to before Brexit.
- Fund for compensation to the processing industry:
– Approximately DKK 129 million (€17.3m/£14.9m) has been disbursed to five fish processing companies to compensate for losses in raw material supply due to Brexit.
- Fund for compensation for income loss in the 1st quarter of 2021:
– Approximately DKK 13 million (€1.7m/£1.5m) has been disbursed to owners of 13 fishing vessels to compensate for the immediate income loss in the 1st quarter of 2021 caused by Brexit.
- Fund for de minimis support to owners of fishing vessels:
– Approximately DKK 1 million (€134,000/£116,000) has been disbursed to owners of 10 fishing vessels. The de minimis support compensates for income loss due to Brexit in the remaining part of 2021.
- Fund for development in local areas (LAG):
– It is expected that a total of approximately DKK 18 million (€2.4m/£2m) will be disbursed to projects that can demonstrate an impact of Brexit on businesses and local communities. The fund is administered under local action groups (LAG).
In addition to the above funds, approximately DKK 66 million (€8.85m/£7.65m) from the Brexit Reserve has been used to meet new requirements for IT support, data transfer, and new control measures in fisheries control, following the Brexit agreement, and approximately DKK 7 million (€938,600/£812,300) for the work of the Fisheries Commission.
Source: Press Release