Comhairle nan Eilean Siar

Business Gateway - Assistance Available

Outer Hebrides Fisheries Support Scheme

Background

The Outer Hebrides Fisheries Support Scheme (OHFSS) is a partnership scheme between Comhairle nan Eilean Siar, Royal Bank of Scotland and Western Isles Fishermen’s Association.

The Scheme aims to create and retain employment opportunities in the Outer Hebrides by encouraging business development in the fisheries sector.

Funding is available for fishers younger than 40 years of age who acquire for the first time part or total ownership of a second hand fishing vessel. Each case will be judged on its merits and the main factors taken into account in assessing applications will include economic viability, assessed risk and need, employment implications, creation of additional demand for products and services and impact on local competition.

Assistance Available

For purchase of fishing vessels of less than 24 metres in overall length, equipped to go fishing at sea and be between 5 to 30 years old. Loans of up to 40% of eligible project costs, subject to a maximum loan of £100,000. Maximum repayment term is 10 years.

Capital deferment for up to 2 years, in exceptional cases.

Policy And Priorities

Outer Hebrides Fisheries Support Scheme partners will seek to direct funding under the scheme to particular priority areas in order to maximise the long term impact of the Scheme within the local economy. Fishing vessel projects which meet the following criteria will generally receive priority under the Scheme:

Vessels of 10 metres or over registered length

Vessels less than 10 years old with multi-purpose fishing capability

Applicants who have gained a Class II (fishing vessel) Ticket or are working towards an Under 16.5 Skippers Ticket

Suitably experienced younger fishermen taking their first step in vessel ownership

Note: Public Sector financial assistance for new fishing vessel construction is currently precluded in the UK.

General Eligibility Criteria (All Applicants)

Applicants must be under 40 years of age and can demonstrate that they have worked at least five years as a fisher or have equivalent professional training

Applicants must be acquiring for the first time part or total ownership of a fishing vessel

The vessel acquired must be less than 24m in overall length, equipped to go fishing at sea and be between 5 to 30 years old.

Eligible businesses must have fewer than 50 employees.
Businesses must operate on a full-time basis.
Applicants must be resident and maintain a business in the Outer Hebrides throughout the period of the loan.

Applicants must complete the Application Form/Letter of Consent and submit a Business Plan including projected financial statements for 3 years. New applicants must also submit 6 months personal bank statements or, in the case of existing businesses, 6 months business account bank statements.

Only sole traders, partnerships, limited companies and co-operatives are eligible for assistance.
Applicants will be asked to demonstrate that other sources of funding relevant to their project have been approached.
Retrospective applications will not be considered for assistance.

General Conditions (All Applicants)

A Marine Mortgage must be provided as security for the loan.
Repayment of loan will be by monthly standing order from the applicant’s business account.
Proof of project implementation and expenditure must be provided prior to payment of loan.
Regular monitoring of businesses through Aftercare is compulsory and applicants must provide all necessary information.

A vessel survey must be commissioned by all applicants.

Fishing Vessel Applications

In addition to meeting the general eligibility criteria and conditions of the Scheme, all applications in respect of fishing vessels must comply with the following principal conditions:

a) Applicants must be aged 18 or over and have at least five years relevant fishing experience.

b) All Applicants / Owners and any crew must at all times be in possession of all statutory Safety Certificates, including: First Aid, Fire Fighting, Sea Survival, Safety Awareness and comply with GMDSS Radio Certificate requirements as specified by the Maritime and Coastguards Agency (MCA). Applicants must be attending training for their under 16.5 metre skippers ticket which may become compulsory from 2011. The under 16.5 metre skippers ticket, depending on area of operation, consists of all of the above courses plus, stability awareness, 2 day engineering, 2 or 5 day watchkeeping. It will be the responsibility of the skipper/owner to ensure that all the relevant certificates are valid.

c) Assistance will only be approved for vessels conforming to SFIA specifications and which meet current and anticipated Maritime and Coastguard Agency(MCA) standards for under 15 metre overall length vessels.

d) Assistance for vessels between 5 and 30 years old will be conditional on a satisfactory marine survey report by a qualified Marine Surveyor who is on the Royal Bank of Scotland approved list of surveyors.

e) Priority will be given to vessels no more than ten years old and which have a fishing life of at least a further ten years. Applications in respect of older vessels will be considered in certain circumstances.

f) Applicants must provide evidence of possession of necessary Fishing Licences, as required under the UK Fishing Vessel Licensing Scheme and, in the case of over 15 metres overall length vessels, a copy of the current MCA Safety Certificate.

g) Applicants must provide satisfactory evidence of adequate insurance cover in respect of the vessel, the life of the applicant (s) and all necessary insurances to meet the statutory obligations of employers. In respect of life insurance cover, the policy must be assigned to the Royal Bank of Scotland for the duration of the loan.

h) It will be a condition of assistance that the vessel’s Fishing Licence and Track Record (Entitlement) is included as an asset of the business and may not be sold or otherwise disposed of without the prior written consent of the Royal Bank of Scotland. In the event of disposal, proceeds from the sale of assets must be applied to any outstanding debt under the scheme.

i) Applicants must provide evidence of Full Registration and clean title in respect of the vessel forming the subject of the application.

j) Applicants must ensure that the declared engine horsepower of the vessel to be purchased corresponds to the Certificate of registry and Fishing Licence.

k) The vessel must be maintained in good working order and repair. Major works to the vessel, other than those of urgent repair, may not be carried out to the vessel without the prior written consent of the Royal Bank of Scotland.

l) The vessel, Fishing Licence and Track record may not be sold, de-commissioned or otherwise disposed of without the prior written consent of the Royal Bank of Scotland.

Eligibility for Assistance and State Aid rules

In order to comply with rules on state aid to the fisheries sector Stornoway Council will operate the Outer Hebrides Fisheries Support Scheme respecting the conditions and aid intensities allowed by Commission Regulation (EC) No 736/2008 on the application of articles 87 and 88 of the Treaty to State Aid to small and medium-sized enterprises active in the production, processing and marketing of fisheries products, OJ L 201, 30.7.2008, p16.

Commission Regulation (EC) No 736/2008 on the application of articles 87 and 88 of the Treaty to State Aid to small and medium-sized enterprises active in the production, processing and marketing of fisheries products also requires that any beneficiary receiving aid will comply with Articles 1 (2)(e) 3 (2) and Article 3 (5) “ Conditions for exemption” which exclude the payment of individual aid in favour of undertakings subject to an outstanding recovery order (following a previous Commission decision declaring an aid illegal and incompatible with the common market), and requiring the beneficiaries of the aid shall comply with the rules of the Common Fisheries Policy and that, the grant will be reimbursed in proportion to the gravity of the infringement should there be any non-compliance of this regulation.

SME Definition

Small and Medium-sized enterprises which employ fewer than 250 persons and which have an annual turnover not exceeding EUR 50 million, and/or an annual balance sheet total not exceeding EUR 43 million ( see annex 1 of Commission Regulation (EC) No 800/2008 of 6 August 2008 declaring certain categories of aid compatible with the common market in application 87 and 88 of the treaty, OJ L 214, 9.8.2008, p 3).

This Scheme is operated under the European Commission Regulation (EC) No 736/2008 (Article 10), Local Government Scotland Act 2003 and the European Communities Act 1972

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