Rural Initiative Scheme.

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A decision made (29/06/2006) regarding Rural Initative Scheme.

Subject:	Rural Initiative Scheme
Decision Reference:	MD-E-2006-0115		Exempt clause(s):	n/a
Type of Report: (oral or written)	written		Person Giving Report (if oral):	n/a
Telephone or e-mail Meeting?	n/a		Report File ref:
Written report – Title	Rural Initiative Scheme amendment / Shellfish export grants
Written report – Author (name and job title)	Dr Paul Le Miere, Director of Environmental Management and the Rural Economy and Colin Gibaut, Director of Policy and Strategy
Decision(s): 1)To extend the scope of the Rural Initiative Scheme to cover non land dependent shellfish exporters for the purpose of restructuring transport arrangements in relation to shellfish exports and to amend the scoring criteria of the scheme accordingly;
Reason(s) for decision: Withdrawal of the Solidor V from the Jersey St Malo route has made it more difficult for some parts of the shellfish export industry to export its produce to France. Grants are intended to assist the industry to restructure its transport arrangements to better fit the current market situation. The Rural Initiative Scheme is the most appropriate vehicle for achieving this decision as it is already considered to cover the oyster farming industry as this is a land dependent activity. However, in order to achieve equity in the implementation of this decision applications from non land dependent shellfish exporters will need to be eligible for consideration as well. Containing applications for restructuring transport arrangements in the current round of the Rural Initiative Scheme will also mean that applications are subject to a structured assessment.
Action required: 1) Director of Environmental Management and the Rural Economy to place invitation in the Jersey Gazette for applications to restructure transport arrangements by shellfish exporters for the current round of the Rural Initiative Scheme which closes at the end of July; 2) Director of Policy and Strategy to inform main exporters of shellfish of the decision;
Signature: Senator Philip Ozouf (Minister)		Date of Decision: 29 June 2006

Rural Initiative Scheme.

Rural Initiative Scheme amendment / Shellfish Export Grants

The Minister is aware of the current situation affecting some exporters of shellfish to France since the cessation of operation of the Solidor 5 by Emeraude Ferries / Sogestran. The Minister has made a public commitment to assist the industry to restructure its transport arrangements in relation to shellfish exports.

Background

The Council of Ministers was advised on the 9th February that discussions had taken place between local shellfish exporters and Condor Ferries in order to ensure that products continued to be shipped to France, and Condor had arranged to give the exporters priority access to the freight pods to assist them over the Christmas period. However, the fast craft were not able to load the heavy vehicles used by many of the shellfish exporters, as they were too heavy for the ramp. The Solidor 5 had been capable of loading weights of 14 tonnes, whilst the Condor vessels could only take either 3.5 or 4.5 tonnes in their fast craft. Whilst this was sufficient for white van freight and their freight pods, this was not suitable for the Luton type box vans used by Royal Bay Oysters and others. Solidor 5 had undergone modification to take a small amount of heavy freight, but the shellfish exporters essentially required a midweek heavy freight service. It was further advised that it might prove possible to provide shellfish exporters with a subsidy to help them alter their freight systems to better match Condor’s facilities.

There have been a number of discussions in the States about sea transport services since December of last year. However, a question of direct relevance to the shellfish export industry was asked by Deputy J.B. Fox on 28th February 2006. In response to the question the Minister stated -

“In respect of oyster farmers, they present a particular issue. One set of oyster farmers invested in a particular kind of trailer that could only go to Emeraude. Now Emeraude pulled out unexpectedly. We are going to help reequip the oyster farmers with appropriate financial safeguards to ensure that they can use Condor for the export of their produce… We are determined to help them because I think that oyster farming is something that we should support – diversification of agriculture.”

Since the above, consideration has been given to the provision of grants to shellfish exporters and a number of matters need to be resolved before implementation.

Discussions with industry representatives

A number of discussions have been held between officers of Economic Development and the industry in order to obtain a better understanding of the issues related to shellfish exports. In addition, a number of meetings have been held with individual businesses in an attempt to assist with short term solutions to specific export related problems.

It has become clear from those discussions with the industry that a regular driver accompanied heavy freight service to France would be the preferred solution. It is also clear that the impact of changes in the transport infrastructure on the shellfish industry varies across the industry.

Potential solutions range from oyster and whelk fishermen who are looking at either changing their vehicles, purchasing a work boat or a fishing boat with a current fishing licence, or looking at a freight subsidy to others that have adapted to Condor’s pod system or are moving produce via the United Kingdom.

Rural Initiative Scheme (RIS)

The implementation of grant payments to assist the industry to restructure its transport arrangements could be achieved through the RIS because oyster farming, which is a land dependent activity, is already considered to be covered by the scheme. However, it has become apparent that other sections of the shellfish export industry (whelks, crab, lobster etc) would not be covered by the scheme because production in these cases is not a land dependent activity.

The States received the Rural Economy Strategy entitled “Growing the Rural Economy” on 19 July 2005.

The adoption of the Proposition referred to the States Strategic Plan Objective 1.2.3 To develop a strategy which will explore and promote new opportunities for the rural economy and Objective 4.1.3 To protect and promote Jersey’s environment as one of its most important assets

The States decided that “in order to stimulate the rural economy and to encourage innovation and entrepreneurship –to give effect to the recommendations made in the strategy – the Economic Development Committee should take the necessary steps to establish a Rural Initiative Scheme that was consistent with the approach of the Economic Growth Plan to encouraging enterprise.

If it is considered that all sections of the shellfish export industry should be eligible to apply to the RIS for grants to restructure transport arrangements then it will be necessary to amend the scope of the RIS to cover the non land dependent shellfish exports as well.

Containing applications to a round of the Rural Initiative Scheme limits the States’ exposure and ensures that applications are considered in a structured way against a set of criteria and other competing applications. To this end an advert would be placed in the JEP inviting applications for the current round of the Rural Initiative Scheme which closes at the end of July, after which no further applications for this specific issue would be taken.

Recommendation

The Minister is recommended to consider:

1. extending the scope of the RIS to cover applications from non land dependent shellfish producers for the purposes of restructuring transport arrangements for shellfish exports and if so that the scoring criteria of the scheme be amended to reflect this;

Joint paper by

Dr Paul le Miere

Director of Environmental Management and the Rural Economy

Colin Gibaut

Director of Policy and Strategy

26 June 2006

Sea fisheries stakeholders consulted:

La Rocque Fisheries / Royal Bay Oysters

The Jersey Oyster Company

Aqua – Mar Fisheries

Alro (Jersey) Ltd

Mike Taylor Export Ltd

Faulkner Fisheries

De La Haye Fisheries