Compensation totalling DKK1.2 billion has been paid out to Danish fishing operators to mitigate the adverse effects of Brexit on the country’s fishing industry, including the loss of access to UK waters.
The full payments have now been made within the EU deadline of 31st December 2023. Funding comes from the EU Brexit Reserve, of which the Danish share was roughly DKK2 billion. Of this, approximately DKK1272 million was allocated to the fishing sector and the local areas. The funds were distributed to different parts of the sector by political agreement between all Parliamentary parties in December 2021.
The majority of the funds have been paid out by the Fisheries Agency as compensation to fishermen who on 31st December 2020 held quotas that were reduced as a result of Brexit. In addition, there have been opportunities to apply for vessel decommissioning grants and this has gone to owners of 28 fishing vessels. This aid for decommissioning is designed to reduce fishing capacity to matches the reduced fishing opportunities for Danish fishermen.
The breakdown of compensaton paid out is such that DKK791 million has been paid to the owners of 157 fishing vessels on the basis of a reduction in individually owned fishing quotas as a result of Brexit. DKK215 million has gone into permanently taking out 28 fishing vessels.
DKK129 million has been paid to five fish processing companies to compensate losses in raw materials as a result of Brexit. DKK13 million was paid out to owners of 13 fishing vessels to compensate for the immediate loss of income in the 1st quarter of 2021 caused by Brexit, and DKK1 million de minimis support has been paid to owners of 10 fishing vessels, compensating for loss of income as a result of Brexit in the remainder of 2021. A total of approximately DKK18 million went to projects able to demonstrate an impact of Brexit on companies and local communities.
In addition, roughly DKK66 million from the Brexit reserve was allocated to meet new requirements for IT support, data transfer and new control measures in fisheries control, which result from the Brexit agreement and approximatelty DKK7 million for the work of the Fisheries Commission.
