Select Committee on Environment, Food and Rural Affairs Appendices to the Minutes of Evidence


APPENDIX 4

Memorandum submitted by the South Western Fish Producer Organisation Ltd (K10)

INTRODUCTION

  Since 1970 the Fisheries Policy of the European Union has cost the British fishing industry the loss of more than 7,000 catching sector jobs and countless ancillary jobs. This has been done falsely in the name of conservation and sustainability. Since 1992 more than 2,000 UK fishing vessels have been scrapped. Fishing has become the most heavily regulated of all British industries and the signs are that things are going to get much worse before they improve. The quota system of the CFP has been in existence since 1983. It was designed to regulate the amount of fish taken from the sea and yet, year on year, the quotas have been reduced. This has not aided conservation because the vessels continue to catch the fish, much of which then has to be discarded, dead, back into the sea. Yet, ironically, fishing for human consumption is responsible for only 10 per cent of the mortality experienced by fish stocks! The other 90 per cent results from industrial fishing, pollution, predation by seals, other fish, marine mammals and birds, mechanical devices such as power station intakes and aggregate dredging.

  The quota system has also given rise to another unpleasant side effect. Although the national quotas were intended to ensure a stable share of the fishing opportunities for the coastal communities of the Member States, those quotas have fallen easy prey to foreign owners who desire to catch more fish than they would otherwise have access to and to provide jobs where otherwise they would have been lost through industry restructuring under the MAGP's. However, the European Court in the case known as "Factortame" has ruled such "quota-hopping" to be perfectly lawful. Now, under single market rules, more than £40 million worth of British fish quotas are lost annually to the quota-hopping vessels of Spanish and Dutch ownership. Spanish operators now own 56 per cent of UK Hake quotas, 36 per cent of the Megrim and 31 per cent of the Anglerfish. Dutch interests own more than 66 per cent of UK North Sea Plaice quotas and 55 per cent of our N Sea Dover Sole quotas. In effect British fishing quotas are being used to provide employment in Spain and Holland to the detriment of UK fishing communities. This is contrary to the intentions of the CFP quota system based, as it is, on "relative stability" of opportunities.

  The British government spends more than £45 million each year to police and administer the CFP and its inherent quota system. Alarmingly, that's more than 10 per cent of the value of the fish landed by British fishermen into UK ports. This amount increases each year despite the fact that the industry is in decline. Interestingly the Minister of Fisheries admitted recently "I often think that one of the problems of European fisheries management is that we spend too long enforcing complicated regulations and not enough time on making sure we adopt the right regulations—that fishermen are happy to follow—in the first place." Yet policing the CFP remains a growth sector for jobs and technology! If the proposals contained in the "roadmap" come to fruition it will not be long before we have a fully integrated and incredibly costly European fisheries inspection service.

  The price per kilo paid to fishermen for their catch is much the same now as it was 30 years ago, yet operating costs for the fishermen have risen inexorably. Profitability is marginal at best and the recent surge in the price of fuel has driven some vessel operators into bankruptcy and many more are on the brink. The European Parliament has recently approved a piece of legislation that will outlaw "red" diesel as used in fishing boats. Fuel will increase in price by 9 per cent. Fishermen will incur expense in converting their trawler engines to take the new "low sulphur" fuel. Fish merchants and fish processors are also suffering and quitting the industry in droves. Hitherto there have been mechanisms designed to deal with the social consequences of fisheries policies. However, these seem now to be taking a poor second place to so-called conservation in the name of the precautionary principle.

  The Fisheries Commission, in the introduction to the "roadmap" for reform, laments the economic fragility of the industry and regrets the loss of 66,000 catching sector jobs across Europe between 1990 and 1998, but then advises readers that a further 26,000 jobs must be shed by the end of 2006!

  All of the regulation and bureaucracy associated with the CFP might have been accepted if sustainability had been achieved over the past 30 years, but the opposite is true. Fish stocks continue to decline and available quotas are much lower now than when they were established in 1983.

  These facts are hardly the symptoms of a successful policy and of a vibrant industry. But the saddest fact of all is that the long-term fate of the British fishing industry effectively was decided many years ago when Britain joined the European Community.

  The questions we should now be asking are "When will the job cuts end? When will the fleet be small enough? When will British fish quotas be reserved for the benefit of British fishing communities? When will somebody with authority realise that commercial fishing is one of the lesser contributors (only 10 per cent of all fish killed are for human consumption) to mortality in fish stocks and that it is now time to impact on the other factors, such as seal, mammal and bird predation or industrial fishing?".

REFORM OF THE CFP, WHAT REFORM?

  When the founders of the CFP sat down together in the late 1960's to discuss and set out the principles by which the fisheries of the European Community would be regulated and fostered, the states of both the fleets and the fisheries were somewhat different to those with which we are now faced. Those politicians made certain decisions and took the fishing industry in a certain direction, convinced in their own minds that the fisheries would thrive and the market in fisheries products would get stronger. Their strategy was a failure, although their motives and objectives were probably honourable.

  The Fisheries Commission is now asking us to endorse their "roadmap" for reform. We are told that it contains a revised set of objectives and a new framework designed to deliver sustainability and economic viability. We have studied those revised objectives and can see that they barely differ from the original ones. In itself that is not surprising, as it was not the objectives that were at fault, but the method of achieving them.

  The big question is whether or not the new framework can deliver a better result than the previous one? As an Organisation of Fish Producers, we have yet to be convinced that it is wise to take the same route now to achieve the aims of the CFP as was taken then. This is especially as the present state of the fish stocks is the result of a combination of factors, most of which have resulted from taking that route. Does the Commission deserve our trust to get it right this time?

  In those early days of fisheries policy, the emphasis was on the market in fisheries products and not so much on the conservation of the stocks. It was then, after all, a Common Market, not a European Union. The aims of those who sought to manage the fisheries in 1970 were 1) to obtain the maximum economic benefit for the fishermen, 2) to stabilise the markets, 3) to assure the availability of supply and 4) to ensure that supplies reached consumers at reasonable prices. Conservation of fisheries was limited to simple technical measures aimed at minimising the bycatch of juveniles of the species targeted. Such measures were not new to the industry and were generally respected as being worthwhile.

  It was not until more than 10 years later, in 1983, that "the protection of the fishing grounds, the conservation of the biological resources of the sea and their balanced exploitation on a lasting basis and in appropriate economic and social conditions by the restriction of fishing effort, in particular by limits on catches", became further guiding principles within the finalised CFP. In that year the concept of a Total Allowable Catch was realised and the national quota shareout began. From that date the "Control Measures" became much more complex and sophisticated. They also became much less respected and certainly no more effective in delivering the goal of sustainability of the stocks.

  These two clear and separate sets of principles, established at different stages of fisheries policy, have led to different practices. On the one hand, maximising the market inferred higher fishing effort and greater efficiency. The fleets grew, often with cash incentives from Brussels and national governments, over the first 10 years of fisheries policy. On the other hand, ensuring the supply and conserving the resources implied a lowering of fishing effort and fleet capacity. The MAGP's have sought to rein in fleet development through decommissioning and effort limitation, reversing the trends of growth and expansion.

  The principles of the CFP are therefore self-cancelling. Either the stocks suffer or the fishing communities. Both cannot thrive under such contradictory conditions.

  This inherent contradiction in fisheries policy has been a significant contributory factor, amongst many others, which have brought about the decline in fish stocks, which is now a feature of European fisheries. The problem is that dealing with the catching element cannot alone bring about a reverse in the state of the stocks. A strategy aimed at reducing the mortality of fish stocks must deal with all elements contributing to that mortality.

  The Commission is now attempting to give the conservationist objectives priority. Economic viability may remain an objective, but on an individual rather than community basis. Social, economic and regional consequences are foreseen as a necessary consequence of sustainable fishing. Dependence on fishing is no longer acceptable in the new CFP! Another 28,000 jobs are to be sacrificed over the next 4 years. Is this a sign of a rational coherent strategy or of panic?

  Furthermore, the present drive for reforms has been motivated by other expedients, the desire to complete the "single market" and the prospect of enlargement to, perhaps, 30 Member States. The problem is, however, that the fisheries have been so damaged over these past 30 years that they are even less ready for an integrated Community policy than they were at the start of the transitional period in 1972. The essential aim of Treaty negotiators has always been to conclude, through integration, the "single market" providing "equal conditions of access to and use of the fishing grounds." Imagine how much worse things would be if the CFP had existed without derogation for these 30 years?

  The derogations from the principle of equal access were designed to fulfil two objectives. Firstly to enable the Member States' fishing industries to make the transit from National to Community Control. However, fishing communities were to be protected and fish stocks were to be conserved. Secondly to enable the Member States to adapt their legal systems to match the needs of the Community. The present system of national quotas is an integral part of that transition process.

  We now know that the extended transition has been far from smooth with outcomes far from successful, yet there are those who seek now to justify the conclusion of the derogations and the immediate completion of the CFP within the single market. We believe that such an outcome would, at this juncture, be premature and would also have far more damaging consequences for the fish stocks and the fishing communities that rely on them. Although the legal systems of the Member States may have been prepared, the Communities and the fish stocks have not.

  The Commission states that the CFP has reached a "turning point", yet their proposals amount to no more than a re-iteration of the originally stated objectives. Although we have no fundamental argument against those objectives, we believe that the adoption of a policy that demands the priority of conservation of the stocks over the survival of the fishing communities, will lead to the destruction of those communities and to the polarisation of the remaining fleet into the hands of a small number of owners.

  We agree that the CFP has reached a "turning point". But the "roadmap" does not offer a change of direction it merely signals an acceleration towards a blind bend!

WHAT ARE THE PRACTICAL EFFECTS OF THE PROPOSALS?

  If it is accepted that the fundamental principles behind the CFP are derived from and inextricably linked to the Treaty establishing the European Community, then the current proposals fall far short of those principles. However, if it is also accepted that such a shortfall is inherent in the practical application of fisheries policy and that the ends (sustainability) justify the means (derogations from the principles), then the "new" CFP should be as acceptable to Member States as was the original. The effectiveness of the new CFP compared to the old one is another issue.

  The fundamental principles demand a common policy in the sphere of fisheries. Such a common policy should be guided by a legal process and structure and should lead to the acquis communautaire.

  However, such a situation does not exist at the moment because of a series of dispensations, whose justification, we would argue, has not disappeared through the passage of time.

  A transition period was envisioned in 1970. It was considered to be 10 years, but was extended at the end of that period to 30 years, ending on 1 January 2003.

  Most observers and commentators acknowledge that the fisheries and the corresponding fishing industries are not yet in a condition to allow for equal access. Others suggest that the legal process must prevail, regardless of the state of the stocks. Ultimately the Council of Ministers must decide, but the proposals suggest a continuation of the derogations for the foreseeable future. The six and 12-mile limits, the Shetland Box and the relative stability shares of national quotas, all have their place, at least at the start of the new CFP.

  Thus, insofar as the legal status of the European fisheries is concerned, there will probably be no change between the present CFP and that which will come into being on 1 January 2003. There are a few Member States that do not like such a prospect and they may impede the process, but common sense and not a common resource must prevail.

WILL THE PROPOSALS IMPROVE QUOTA MANAGEMENT AND CONSERVATION?

  One thing that should be clear to any observer is that it is not helpful to consider quota management in the same context as conservation. Although the one was intended to be coincident with the other, quota management has become synonymous with discarding, overfishing and generally greedy conduct.

  Quotas were designed to ensure stability for fishing communities during the restructuring of fishing fleets that was considered to be a necessary evil of the CFP. Tragically and with disastrous consequences, there were those who were willing to exploit any weaknesses of the system.

  In the period between 1980 and the end of 1982 a number of "joint ventures" were established as "brass plate companies" in the UK to enable 61 Spanish vessels to fish in Community waters as though they were British. These vessels added to the limited number of Spanish vessels allowed to fish in Community waters under the 1980 agreement between the Community and Spain. From 1983 these 61 vessels partook of a share of the UK quotas established under relative stability.

  In 1985 these vessels were awarded UK fishing vessel licenses when the UK government established the restrictive licensing scheme in order to ensure that the quotas were not exceeded.

  In 1988 the government attempted to rid the fishing vessel register of the "flagships" through the Merchant Shipping Act. The owners successfully challenged the legitimacy of that Act through the European Court, thereby driving a coach and horses through relative stability and the quota system. In effect fishing communities cannot be afforded the protection intended by those that designed and distributed the national quota shares. Yet relative stability is still held by many to be a success, indeed as a "principle" at the core of the CFP and not to be abandoned at any cost.

  In our view, the national quotas are no more than a deeply discredited opportunity distribution system. They are the "rotten core" of the CFP.

WHAT ARE THE ALTERNATIVES?

  1.  The first step has to be the repatriation of foreign-owned vessels to their beneficial flag-state. The Member States that have exported parts of their fleet to other fishing registers have done so in order to appear to have complied with fleet restructuring targets, yet their boats are still working and their crews are still employed. Alternatively, the national fleet targets should take into consideration the "flagships" when assessing compliance with those targets. Economic and beneficial compliance is more significant than the physical size of the registered fleets.

  2.  Discards of over-quota fish must be banned. This phenomenon is a symptom of the system. The quota is a 12-month allowance that the fishermen start to catch from January 1. Each fisherman makes his own decision as to when to draw from the quotas. He will discard the fish that he doesn't want to count so that he can keep fishing until Christmas. It is his duty to his dependants to make the maximum for his landed catch within those quota limits.

  3.  Because the discards are of dead fish they contribute nothing to conservation. The quantities involved should be added to the calculation of Total Allowable Catch, which should be established for a rolling multi-annual period of three to five years, especially for the vulnerable species.

  4.  With the fleets re-established at their "true" levels, after taking the quota-hoppers properly into account, an effort limitation or "days at sea" scheme can be created for the protection of species at greatest risk. These would be national limits and those fleets that are not within their re-structure targets would be penalised by having appropriate amounts of effort deducted.

  5.  Conservation would be achieved by having proper regard for technical measures designed primarily to stop immature fish from being caught. If the penalty for landing such fish was very heavy and if anyone handling such fish was also subject to similar penalty, then there would be greater incentive to rig fishing gear in more selective ways.

  6.  The sea areas used to designate the boundaries for fish stocks should be reviewed so as to reflect better the locations of the commercial concentrations of fish. At the moment, for example, Western waters are divided into such small areas that fishermen experience difficulty when searching. They often move from one stock area to another, yet the fish they catch may have also moved, such are the migrations and meanderings of fish.

WHAT WILL BE THE IMPACT OF THE PROPOSALS ON THE STRUCTURE OF THE UK FISHING INDUSTRY?

  Because the present proposals will do nothing to restore British fish quotas to the benefit of British fishing communities and because the relative stability shares are to be continued for the time-being, the British fishing industry will continue to suffer from the inequities that have dogged it for the past 20 years.

  The MAGP's 1 to 4 have set fleet targets based on the available quota opportunities and the state of the fish stocks. These have never taken "flagships" into consideration. British fishing communities have been stripped of far more vessels than they should have. More British fishermen have lost their jobs than was necessary. The structure of the British fishing industry has been made to crumble unnecessarily.

  The proposals are going to make matters even worse. There is to be more decommissioning, more policing and extended satellite monitoring and VMS. The quota system will be supplemented with effort limitation. It will become increasingly difficult to make a reasonable profit under these strict conditions and many owners will be forced to withdraw from the industry. Many more of our fishing ports will become "ghost" towns.

ARE THE PLANS FOR SOCIAL HELP ADEQUATE?

  Absolutely not.

  Member States should not be allowed to opt out of using public aid to provide the necessary support to enable our fishing communities to cope with the strains associated with fishing and infrastructure job losses.

Better still, restore the British fishing jobs and export back to Spain and Holland the Spanish and Dutch jobs we have been saving on the quota-hoppers!

WILL THE PROPOSED REFORMS ALLOW A MORE FLEXIBLE SYSTEM TO DEVELOP?

  The proposal to introduce a new multi-annual framework for conservation of resources and management of fisheries is broadly welcomed. However, there has been a tendency for the "precautionary" approach to be used as a stick to beat the industry with. This has been far from helpful.

  The Commission's proposals are intended to ensure that the Community's fisheries management makes "the best use of harvested resources and avoids waste." Strict adherence to the precautionary principle, however, results in lower than necessary quotas and greater than necessary levels of discards. The only way of actually reducing discards and aiding conservation is with the implementation of appropriate technical measures combined with a fair system of effort limitation as described earlier. The use of "boxes", to close off areas where juvenile fish concentrate, may also have a part to play.

  It may be possible to develop a more flexible system of fisheries management if all options are explored and if fishermen themselves are included in the investigation and consultation process. In any event there has to be a move away from decisions that are politically motivated and towards a firmer science base. We do not believe that the quota system has aided conservation and we feel that there are better ways to achieve sustainability in the stocks and viability in the fishing fleets. For so long as the TAC and associated quotas remain a measure of fish landed and not of fish mortality, they will be an unreliable mechanism in the field of fisheries conservation.

HAS ENOUGH EMPHASIS BEEN PLACED ON PROPER ENFORCEMENT?

  Regulations are relatively easy to enforce if they have the respect of the subjects of that enforcement. If the regulations are discredited and have fallen into disrepute, then compliance will be minimal.

  Compliance with the quotas is proportional to availability of the fish itself. Simply putting a limit on the amount a fisherman may land is not the same as stopping him from catching that fish in the first place. This is especially so in the mixed fisheries experienced in the English Channel and the Southwest approaches. If a man has caught a high value fish for which he has no quota, he will argue that it is dead and, "What's the point in discarding it to feed the birds?" Whether it is one fish or several tonnes, the logic applies. That is the reason why the Commission is spending so much time and money investigating the discarding of fish that has been caught for any number of reasons.

  Should enforcement of the quotas be given such priority? Or should the emphasis be on enforcing the technical measures and on improving matters that can truly have a beneficial effect on conservation?

  The Commission certainly believes that going "over quota" is a mortal sin. They have even vetoed Member States from engaging in swaps after the year-end to cover even the most minor infringements that must then result in a matching deduction from that quota in the following year. This is rigid inflexibility in the extreme!

  We believe that the infringements that should carry the heaviest penalties are those related to the technical measures and the taking of immature fish. Many stocks now facing difficulties would be in far better heart if the technical rules aimed at their conservation had been adhered to since their creation. Even now it is not too late to reverse the decline in most stocks by implementing the technical measures fully from now on.

30 September 2002



 
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