Select Committee on Agriculture Eighth Report


II. THE INDUSTRY TODAY

9. In 1998 552,000 tonnes of sea fish were landed in the UK with a value of £484m, while a further 371,000 tonnes or £176m were landed abroad by UK vessels.[3] The fleet comprised some 8,300 vessels, employing 18,604 fishermen.[4] A further 19,454 were employed in the fish processing industry[5] and there are of course further indirect employment opportunities created by the fishing industry, in chandlery and ship repairs, for example. These global figures disguise significant regional variations. The weight of the industry has shifted from England, particularly the Humber, northwards to Scotland, and from big distant water ports to more than 450 ports around the coastline of the UK, from the south west of England to the Shetland Islands. Moreover, fishermen in these ports can be distinguished by the species of fish they choose to target, by the method of fishing and by the size of vessel. It is therefore necessary to recognise that the UK fishing industry is in fact composed of many individual industries and that the economic circumstances of one segment may vary dramatically from that of another. For example, the pelagic fleet consists of a comparatively small number of vessels and less than 20 per cent of total tonnage but accounts for almost 40% of total fish landings by weight. In the fleet as a whole there are 2,400 vessels over 10m in length which together catch 95 per cent of the UK fish.[6] At the other end of the scale, there are many small vessels (under 10m) which represent 70 per cent by number but catch far fewer fish. Table 1 below shows the main activity of the UK fishing fleet, by segment.

Table 1

MAIN ACTIVITY OF THE UK FISHING FLEET BY SEGMENT

AS AT 31 DECEMBER 1998
United Kingdom (incl. Channel Islands and Isle of Man)
Number
TonnageGT*
PowerkW
1998 (Provisional)
   
   
   
Pelagic Gears5047,936 79,885
Beam Trawl12324,541 96,486
Demersal, Seines & Nephrops1,318 109,916368,384
Lines & Nets18715,451 46,567
Shellfish: Mobile241 11,58350,997
Shellfish: Fixed3117,185 45,633
Distant Water1417,426 27,551
Under 10m6,02720,429 290,589
TOTAL FOR MAGP8,271 254,4681,006,071
Other Vessels Mussel Dredgers2 80537

Source:UK Fisheries Departments, Ev. p.213.

Table 2 shows how the number of vessels in the fleet as a whole has declined since 1991. The reasons for this and its significance are discussed in Section IV below.

Table 2

THE EVOLUTION OF THE UK FISHING FLEET SINCE 1991
No of vessels
Fleet tonnageGRT
GT*
PowerkW
At end-years
   
   
   
   
1991
11,411 209,351
   
1,228,931
1992
11,561 210,088
   
1,262,034
1993
11,692 209,405
   
1,271,359
1994
10.827 198,224
   
1,197,341
1995
9,720 193,485
   
1,136,749
1996
8,667 186,263259,5631,054,927
1997
8,458
   
255,699 1,026,542
1998
8,271
   
254,468 1,006,071

      Notes:   GRT (Gross Registered Tonnage) is a collective term for various forms

      of registration under UK merchant shipping legislation.
      GT (Gross Tonnage) refers to a specific method of measurement under
      the 1969 International Tonnage Convention (ITC 1969).
      GT* is a mixture of GT for vessels with actual or estimated measurements
      according to ITC 1969 and GRT for over 27 metres which have not yet
      remeasured to ITC 1969.

 Source: UK Fisheries Departments, Ev. p.212.

The dominance of Scottish ports and vessels is worth noting. In 1998 UK vessels landed £291m worth of fish in Scotland which represents 62 per cent by value and 68 per cent by weight of total landings of UK vessels at UK ports.[7] There is a drift of licences and quota towards Scotland from south of the border and a perception that the Scottish industry is in general terms more successful than elsewhere in the UK.

10. Many different species of fish are caught by the UK fishing industry. In the North Sea fishermen "may expect to encounter over 100 species"[8], whilst approximately 54 species are sold at Newlyn market in the South West. In theory, the UK could be self-sufficient in fish but historically this is not the case as the British consumer favours a very narrow range. For example, the UK consumes around one quarter of the world's cod supply, five times what the UK industry catches.[9] One supermarket told us that five species - cod, haddock, plaice, salmon and trout - account for over 70% of total fish sales.[10] We therefore export large amounts of pelagic fish, specifically mackerel and herring, for which there is a good market in other European countries. Since these fish have a lower value than demersals (white fish), the UK has a negative trade balance in fish and fish products despite being a net exporter in terms of weight (see table 3 below) and despite the fact that its fishing grounds are the richest in Europe.

Table 3

 IMPORTS AND EXPORTS OF FISH AND FISH PRODUCTS IN 1998
Imports
Exports
tonnes
£'000
tonnes
£'000
Demersal and pelagic fish
   
 
   
   
Fresh, chilled,   frozen280,060 349,646213,913336,413
 Of which salmon12,844 30,34945,168113,344
Direct landings   abroad
   
   
316,195 162,129
Total280, 060 349,646530,168 498,542
Processed fish161,909 357,35151,551140,583
Shellfish Total89,195 358,53379,454258,998
Total including direct landings abroad 531,1641,065,530 661,173898,123

Source: Ev. p.244, as corrected by MAFF.

11. Consumption of fish has remained broadly steady over the last decade, dipping slightly in the early 1990s but recovering ground more recently (see table 4).

 Table 4

HOUSEHOLD CONSUMPTION OF FISH
Grams per person per week
Fresh Fish
Other Fish
All Fish
1983
36
108
144
1984
36
103
138
1985
35
103
139
1986
36
109
146
1987
34
110
143
1988
34
109
143
1989
35
112
147
1990
32
111
143
1991
33
106
138
1992
29
113
141
1993
29
115
144
1994
29
116
145
1995
30
114
144
1996
32
122
154
1997
31
115
146

      Note: Other fish includes purchases from fast food and fish and chip shops eaten
      within the home. In addition, about 23 grammes per person per week of fish and fish products are consumed in meals taken outside the home.

Source: National Food Survey, Ev. p.196.

In value terms, consumption increased until 1996 but has fallen away since, although the Sea Fish Industry Authority (SFIA) expected price increases to be above the RPI rate during 1999 (see

table 5).

Table 5

VALUE OF IN-HOME CONSUMPTION (EXPENDITURE)
Unadjusted
Adjusted (using RPI²)
1950
3.43 pence/person per week
66.79
1960
6.53
85.46
1970
8.93
78.50
1980
32.12
78.27
1990
66.62
86.03
1996
75.05
80.06
1997
74.67
77.23
1998¹
76.60
76.60

¹ First three quarters

² Average of 1998 = 100

Source: Office for National Statistics, Ev. p.305.

This is due to the increase in white fish prices which began to come through in the middle of 1998. One third of fish bought by households annually is fresh, chilled or smoked while the remaining two thirds are frozen.[11] Most fish in both categories is now bought from supermarkets which therefore have a growing influence in the market and in the fishing industry as a whole. The supermarkets generally agreed that the market would stay broadly stable in the immediate future although "over the long run people will be consuming more fish ... because of the health connotations".[12] Finally, 45% of the total tonnage of fish sold in 1997 went to the catering/institutional sector, reflecting both traditional fish and chips and the increase in the number of meals eaten away from home.[13]

Profitability of the industry

12. To understand the industry today it is important to have some idea of its profitability. Witnesses generally agreed that the industry had recovered slightly from the low point of two years ago, helped by the 20 to 30 per cent increase in prices in the summer of 1998.[14] The Scottish processors claimed that they had not benefited from the increases but were instead losing their profit margins.[15] However, there is very little official information on the profitability of the UK fishing industry. Although all agreed that the pelagic sector in Scotland was highly profitable, this judgement came not from any economic analysis or Government data but from observation of the lively market in licences and level of investment in new vessels in that sector.[16] Mr Gordon of the Scottish Office admitted that "we do not have reliable figures for the profitability or returns for particular parts of the fleet".[17]

13. Academics from the Centre for the Economics and Management of Aquatic Resources at the University of Portsmouth argued that this lack of data "presents a serious obstacle to economic research and policy evaluation".[18] Information about the overall economic performance of the UK fleet and the relative profitability of individual firms was needed "to assess the economic health of the industry and to judge the effectiveness of management".[19] Their assessment on the data they have is that "the profitability of the UK fleet as a whole may be low", although some firms may be making substantial profits, and that "it is quite possible that sea fishing actually represents a net cost to the UK".[20] This is a provocative argument and it could equally be the case that the industry is of greater economic value, as it is clear that the official figures seriously underestimate landings of fish. For example, the Cornwall Sea Fisheries Committee estimated that the £11m of fish recorded as annual landings by small vessels in the Cornish inshore fishery could well be boosted to £20m once "landings that do not go through fish markets and go direct to hotels and foreign buyers who buy direct" are taken into consideration.[21] These landings are legal but they are supplemented by illegal landings of "black fish" which add to the profits of some fishermen, although they can depress the price of legitimately landed fish.[22] The SFIA does some work on the economic aspects of the industry and MAFF has commissioned a number of projects to support specific issues.[23] These include surveys of fishing costs and earnings. However, it is evident that such surveys are not undertaken on the scale or with the regularity required to answer questions of profitability with any degree of certainty. We recommend that the Government commission regular research into the profitability of the sea fishing industry for use in determining management policy.

FISHERIES MANAGEMENT

14. At the heart of fisheries management in the UK is the Common Fisheries Policy. As the National Federation of Fishermen's Organisations (NFFO) told us, the CFP provides "a framework of rules which ultimately determine almost every facet of the British fishing fleet". These include regulations on "size of vessel, engine size, type of fishing gear, area of operations, selectivity of fishing gear, amount caught, size of fish landed and even, to a degree, the price received".[24] It governs what fishermen may catch, in what quantities, by what method, when, and a whole host of other aspects of their activities. However, most of these measures once agreed in principle by the Council of Ministers are administered as each Member State sees fit. Mr Wentworth, Fisheries Secretary at MAFF, stressed that "there is a huge amount already delegated to Member States within the Common Fisheries Policy."[25] This included quota management, fleet structure management and enforcement activities. There is a 200 mile exclusive economic zone around the UK within which the UK Fisheries Departments are responsible for enforcing national and European legislation, while there are also 12-mile and 6-mile limits within which UK agencies have even greater powers.[26]

15. For management purposes, the UK fishing fleet is usually divided into three sectors. Owners of vessels over 10m in length can opt to join a Producers Organisation (PO), a body recognised by UK and European authorities for marketing and quota management purposes.[27] Those owners with vessels over 10m who elect not to join a PO and whose quota allocations are managed directly by the UK Fisheries Departments are known as the "non-sector". Finally, the smaller boats - the under 10s - are also managed directly by the Government.


3  Ev. p.244. Back

4  Ev. p.243; HC Debates, 8 June 1999, c249w. Employment figures refer to 1997. Back

5  HC Debates, 8 June 1999, c249w. Back

6  Ev. p.243. Back

7  Ev. p. 120, para 1.8. Back

8  Ev. p. 3, para 2.2. Back

9  Ev. p.17, para 3.15. Back

10  Ev. p.348. Back

11  Ev. p.17, para 3.17. Back

12  Ev. pp.175, 347; Q 879. Back

13  Ev. p.305. Back

14  Ev. p.64; Q 105; Q 3; informal evidence. Back

15  Q 721. Back

16  Q 4. Back

17  IbidBack

18  Ev. p.292. Back

19  IbidBack

20  IbidBack

21  Ev. p.103. Back

22  Ev. p.271. Back

23  Ev. p.11, para 2.44. Back

24  Ev. p.42. Back

25  Q 15. Back

26  Ev. p.275. Back

27  Ev. p.148. Back


 
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