The Minister for Agriculture and Fisheries Mary Coughlan has promised €42 million over two years for the State's new whitefish vessel decommissioning scheme which aims to reduce the coastal fleet sector by 35 per cent.

Further funding has not been ruled out by the Minister, who says the initiative will ensure a more "sustainable and profitable" environment for those who remain within the industry.

Under the initiative, which has been welcomed by the Federation of Irish Fishermen, owners of up to 75 boats which are over 18 metres in length and at least 10 years old may qualify for payments of between €6,500 and €7,500 per gross tonne. There is a short two-month window for all applications, closing on April 30th. The first 50 per cent of an agreed compensation payment will only be made after the owner's vessel licence has been surrendered. The licences must be handed up within 12 weeks of a letter of offer.

A "very favourable" tax deal was before the Oireachtas in the Finance Bill, Ms Coughlan said, and she was confident that it offered very positive terms.

The scheme is "voluntary and not compulsory", the Minister said in Dublin yesterday when she announced the details, with Minister of State for Marine John Browne. It was "not true" that owners were being forced into making decisions to quit, due to increased surveillance, she said.

A series of inspections were carried out in several ports yesterday by the Garda and Sea Fisheries Protection Authority some hours prior to the Minister's announcement.

The scheme will be administered by Bord Iascaigh Mhara (BIM) and is targeted at active fishing vessels. An incentive payment of up to €3,000 per gross tonne rewards legal activity by boats of varying sizes, according to Michael Keatinge of BIM.

The overall aim is to remove 11,140 gross tonnes from the polyvalent (whitefish) and beam trawl segments of the fleet, Mr Keatinge said. Some 10 per cent of the whitefish fleet has already been removed in a 2005/06 programme.