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 Gears | 50 | 47,936
| 79,885 |
Beam Trawl | 123 | 24,541
| 96,486 |
Demersal, Seines & Nephrops | 1,318
| 109,916 | 368,384 |
Lines & Nets | 187 | 15,451
| 46,567 |
Shellfish: Mobile | 241 |
11,583 | 50,997 |
Shellfish: Fixed | 311 | 7,185
| 45,633 |
Distant Water | 14 | 17,426
| 27,551 |
Under 10m | 6,027 | 20,429
| 290,589 |
TOTAL FOR MAGP | 8,271
| 254,468 | 1,006,071
|
Other Vessels Mussel Dredgers | 2
| 80 | 537 |
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
| 186,263 | 259,563 | 1,054,927
|
1997 | 8,458
| | 255,699
| 1,026,542 |
1998 | 8,271
| | 254,468
| 1,006,071 |
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, frozen | 280,060
| 349,646 | 213,913 | 336,413
|
Of which salmon | 12,844
| 30,349 | 45,168 | 113,344
|
Direct landings abroad |
| | 316,195
| 162,129 |
Total | 280, 060
| 349,646 | 530,168
| 498,542 |
Processed fish | 161,909 |
357,351 | 51,551 | 140,583
|
Shellfish Total | 89,195 |
358,533 | 79,454 | 258,998
|
Total including direct landings abroad
| 531,164 | 1,065,530
| 661,173 | 898,123
|
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 Ibid. Back
18 Ev.
p.292. Back
19 Ibid. Back
20 Ibid. Back
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
|