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


Memorandum submitted by the Fishermens' Association Limited (FAL) (W05)

  FAL was incorporated on 12 September 1995 to fight for the restoration of National Control. It is a UK fishing industry trade protection association with some 360 members in Scotland, England (particularly South Devon and Channel Shellfishermen), and Northern Ireland (Northern Ireland Fish Producers Organisation Ltd). It not only represents the catching sector but also community interests, as well as the onshore industries following the affiliation to FAL of the Scottish Ship Chandlers Association at the end of last year.

  Member vessels range in size from under 10 metres to 60 metres. Fishing is prosecuted all around the UK, Norwegian sector, the north Irish Sea and in the west of Scotland waters, both near and offshore. The species prosecuted are shellfish (crabs and lobsters) prawns, scallops, white fish, the deepwater species.

  The Strategy Unit report has now been turned in to a series of Issues papers by the fisheries Administrations. They are the best ones to answer what has been done to take forward the Strategy Unit proposals. As to the effect on the industry and fishing communities of the EU fisheries policy I attach FAL's submission to the Committee.

THE CURRENT DIRECTION OF UK GOVERNMENT POLICY

  This is governed by EU policy which has resulted in the gradual run down of the UK fleet to enable other fleets notably the Spanish to have access to the "common resource". The SU Recommendations merely formalise the strategy to achieve that.

  The following Scottish statistics illustrate the point. These are for operational Scottish boats over 10 metres in length, with an average length of 18 metres and engine power of 240 hp.

YearBoats
19751,782EEC entry 1973—Scottish waters opened to boats of eight countries
19851,396Fish stocks in steep decline—decommissioning and licences introduced
19951,209Spain and Portugal enter CFP 1986—more decommissioning
19981,045Drastic reduction in fish stocks—yet more decommissioning
2002845Collapse of fish stocks—panic restrictions by Brussels
2004c 780Brussels devoid of an answer except still more decommissioning


  Since joining the CFP there has been a reduction of 60% in the Scottish fishing fleet, with corresponding downstream effects on fish processing, boat building, etc. On the basis of recent fishing industry studies by Stirling University and other professional institutes, it is estimated that more than 1,080 boats will have been removed from the fleet by the end of 2003. At current values (an average of the past five years) each of these sold or decommissioned boats would have grossed on average more than £310,000 annually from around 330 tons of fish. The annual loss of direct income to the catching sector is therefore a minimum of £334 million. Of this, £110 million would have been crew wages, with the remaining £224 million lost to the vessel services like fuel, repairs, gear, insurance, banks, groceries, harbours, etc.

  Added value, fish processing and marketing, etc, raise the economic value of the annual loss considerably. The recognised GDP impact ratio for fisheries is 2.35 times the landed value. Thus the direct economic impact of the reduction of the Scottish fishing fleet in 1975-2003 is now a current annual loss to the Scottish economy of a staggering £785 million. The costs to public funds of unemployment and other social benefits as well as broader economic consequences, including loss of tax income, probably bring the total loss nearer to £900 million every year. This exceeds by a huge margin any economic benefits Scotland receives from the European Union. We have no doubt that similar figures can be produced showing the impact on the fleet and ancillary industries for the whole of the UK.

  There are no benefits to the UK of continued EU control that could possibly compensate for this haemorrhage. These appalling figures represent nothing less than a national disaster—brought about for no better reason than the ideology of "sharing the common resource" with other EU member countries. What the figures cannot reveal is the amount of personal tragedy and communal disruption that lie behind them: bankruptcies, the uprooting of individuals and families, the destruction of thriving communities with centuries-old cultural traditions and communal lives. Major harbours, that were the focus of social and economic life 12 months in the year, are now marinas for a handful of yachts over a few weeks in summer. One can imagine the reaction if Brussels had reduced the Spanish or French fishing fleets by almost two thirds simply to make way for incomers. And fishing is by no means as important to those countries as it is to particular UK local communities where the dependence on fishing is extremely high.

REGIONAL ADVISORY COUNCILS (RACS)

  Advocates of these bodies, (and the environmental lobby is a major supporter) seem to believe that they are an opportunity to devolve management power to relevant stakeholders; to share in the decision making process.

  This is a myth.

  RACs are:

    (i)  a manipulation by the Commission to further marginalise Member States' input into EU decision making. To think that fishermen in RACs are going to push for other than self-centred policy is ludicrous.

    (ii)  purely advisory bodies, and do nothing to transfer decision-making power away from Brussels. In fact the Amsterdam Treaty explicitly rules this out.

  In the EU Presidency Discussion Paper on RACs there is definition of a Member State's "fisheries interest" within a RAC. Spain would only have to declare an interest in UK waters to have a legally unchallengeable place on that RAC!

  There is not a word about the allocation of ecologically sustainable catching capacities among the Community members in proportion to their own waters and coastlines.

  There is nothing about priority of access for local fishing interests, which means that the current arrangements continue with the addition of local talking shops. Agreement is by consensus so the lowest common denominator "wins" the day. In truth the EU Commission wins as it will ignore any RAC view that has no consensus but a variety of views on managing a particular stock.

  The one apparently positive feature is the acceptance of the principle that fishermen are to have the majority of places on the RACs. BUT those fishermen will be ring-fenced by regulations to prevent them doing anything that would contravene the authority of Brussels,

  They will be powerless to prevent countries like France and Spain, to say nothing of the new EU members, demanding their rights under the open access regulations.

  RACs cannot provide for a more devolved fisheries management. Subsidiarity does not exist in the CFP. Competence for fisheries was transferred to Brussels. It would be contrary to the legal and institutional framework of the Treaty to grant RACs increased responsibilities in the decision making process.

  At least with National Control we have influence with our decision makers with a ballot box judgement day and a publicity sensitive political machine. If that occurred then a properly devolved Regional Management system for the UK would make sense.

FISH STOCK CRISIS

  There is no fish stock crisis. Fishermen are finding fish almost everywhere on the traditional grounds. Because of the lack of feeding especially in the North Sea, brought about by Industrial fishing (see the RSPB Report Assessment of the sustainability of industrial fisheries producing fish meal and oil September 2004), fish stocks have been stimulated to move in to areas where food is abundant. The EU Commission has created a beneficial crisis. How otherwise would they have been able to annihilate the British fishing fleet to accommodate their relentless programme of EU integration beyond 2003. The CFP system itself must be the strategic target .

  National control and a complete reappraisal of the management system is necessary. The policy is flawed and misguided (though not in the overall EU philosophy) as it is dictated by Brussels.

QUOTAS

  Many owners have paid highly for quota and should benefit from that investment.They have been forced/encouraged to purchase additional quota to remain legal. Regrettably that is being devalued as a result of the EU fisheries policy. Decommissioning has flooded the market. There is also a problem with quota speculators and banks which control quota. As a result of the last decommissioning scheme the Royal Bank of Scotland it has been alleged "owns" 40% of the Scottish white fish quota. Currently that is being managed for the benefit of the local fleet but for how long will that last as ITQs become the method of improving efficiency—reducing the fleet with ownership in fewer hands possibly non-UK.

  New entrants are being prevented from joining the industry not only by the costs involved but the risk of investing by that party and backers has to be weighed against the very uncertain future under the EU fisheries policy. This would alter if there was a UK controlled industry.

  It is not efficiency but economic power which will permit survival and thereafter expansion. That will not be achieved under the EU fisheries policy nor the recommendations in the SU report as they are designed to assist the EU achieve its aim of a EU integrated fleet.

  There is no such thing as a UK quota only the UK share of the EU quota.

  If there was National Control then UK transferable quotas would make economic sense.

  UK should follow the lead of Faroe (rejected ICES advice and white fish stocks are dramatically improving) and exercises national control.

  The UK has suffered dreadfully from EU policies.

  Since no treaty empowers the European Union to reduce employment in one member country in order to benefit employment in another, the systematic reduction of the UK fishing industry must be not only halted, but reversed. The goal must be a planned restoration to its previous status as regards catching capacity and employment prospects, without regard to EU integrationist ideology.

CONCLUSION

  The SU Report and its recommendations is predicated on further and stricter compliance (partly paid for by industry) by a greatly reduced fleet (decommissioning, tie ups and ITQs) within an EU framework which integrates environmental legislation in to fisheries management based on effort control. It offers a tantalising glimpse of "gain after pain" by promoting community quota and regional management based on best practice of other countries without acknowledging that these countries all have one common strength—National Control.

  The problem with the CFP, in the view of the authors of the report centres on non compliance, lack of transparency at sea and the slow central decision making process.

  Their solution is to regionalise (Regional Advisory Councils—a toothless concept dedicated to promoting the CFP objectives) and to modernise the institutions backed up by strong control, monitoring and enforcement applied evenly throughout the EU.

  It is the view of the SU authors that Relative Stability is the major factor to assist economic viability. It is the red line that underpins the economic viability of the UK industry.

  But that view is promoted despite them being made aware that Relative Stability is a derogation and like all such it will come to an end.

  The report is fundamentally flawed basing its recommendations on a premise that other Member States are going to be content for all time to allow a discriminatory principle to over-ride EU law of equal access to the common resource.

  The report is justifying existing EU policies some of which the Report's authors admit are weak. But in their naive view it just needs the UK to show the rest of the EU how to modernise and then with decentralisation coupled with the painful restructuring that is forecast to make the fleet efficient, a rosy future awakes.

21 September 2004





 
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