Fisheries Bill [HL]

(Limited Text - Ministerial Extracts only)

Committee stage & Committee: 1st sitting (Hansard - continued) & Committee: 1st sitting (Hansard - continued): House of Lords
Monday 2nd March 2020 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Gardiner of Kimble) (Con)]

My Lords, I am most grateful to noble Lords for this short debate. As I understand it, the noble Lord, Lord Teverson, is concerned that our provisions relating to equal access could lead to unintended consequences, which could include a further concentration of the fishing industry, and incentivise the purchasing of additional quota from other fisheries authorities.

The UK Government believe that the equal access objective in the Fisheries Bill is vital as it sets out a joint commitment for all four fisheries administrations to work together to ensure that boats based all over the UK enjoy the same rights of access to fish in UK waters, no matter where their home port is. This is important, since many vessels fish in the waters of multiple fisheries authorities. As with all the objectives, this objective has been carefully developed and designed with close discussion with the devolved Administrations. This is one of the key points that I would like to make to the noble Lord: the objective is limited to access to waters only and does not grant any access to quota.

Amendment 95 relates to UK quota-setting and seeks to remove the restriction on setting different maxima by reference to a UK boat’s home port or other connection. I will provide some further detail on the provisions in Clause 23. Clause 23 relates to the determination of the pot of UK fishing opportunities. It does not relate to the subsequent allocation of those opportunities to the fisheries administrations, or to their subsequent distribution to the fishing industry. Total UK fishing opportunities are defined by the criteria set out in the clause: the description of sea fish, the area of the sea and the description of the fishing vessel.

The reason for the stipulation in Clause 23(4) that fishing opportunities cannot be set based on any reference to a boat’s home port or connection to a particular part of the UK is to ensure that this power can be used to set only the overall amount of UK-wide fishing opportunities. It cannot be used to determine how quota, once divided between the fisheries administrations, is allocated to each administration’s industry. This is clearly a devolved matter.

Amendment 95 would therefore give the Secretary of State the power to set quota within devolved competence—for example, setting quota for boats fishing out of Peterhead in Scotland. This is clearly not something that would be desired by the Committee; nor do I think it is the noble Lord’s intention. He may hope that the amendment addresses the need for local boats to have access to local quota. This is a matter for each administration, but Clause 17, which my noble friend Lord Lansley referred to, maintains the current approach on this: each administration will use transparent criteria, including environmental and socioeconomic criteria, when deciding how to allocate quota. The amendment therefore does not achieve the exact effect the noble Lord may have hoped for.

I also provide further reassurance that the methodology for allocating quota to industry within England is published in the publicly available English quota management rules, alongside the allocations themselves. Each administration also has its own quota management rules. The Government are committed to supporting fishers around the country and we are engaging with them to ensure that our coastal communities see the maximum benefit from the quota that we hold.

I will provide a further piece of information. The equal access objective in Clause 1 preserves the status quo. Currently all UK boats can fish in all UK waters. Clause 17 provides for each administration to license foreign boats in its waters, since licensing is a devolved matter. In practice, each administration will delegate its licensing functions to, or allow the administration of, a single UK licensing regime through the single licensing authority.

I am very happy to have a further discussion with the noble Lord if there are any residual matters of concern. I hope that I have got across that the equal access objective is precisely on the basis to ensure—particularly with many vessels fishing in the waters of multiple fisheries authorities—that this is equal access for all rather than the way in which the noble Lord describes it. Our intention is for the four constituent parts to have the ability to fish in UK waters.

[Lord Cameron of Dillington (CB)]

My Lords—

[Lord Gardiner of Kimble]

I have not finished yet. So that is where the position lies. I will now take the noble Lord’s intervention.

[Lord Cameron of Dillington]

I apologise to the Minister. It may be that he cannot answer this question but, when it comes to the future division, he said that the boats may have access to the waters but not necessarily to the quota, which explains many of the problems. Is the quota going to be divided into the areas that currently exist—7A, 7B, 7C, 7D and 6—or are we going to have completely new areas? How localised will these areas be? Will they be near to the Cornish ports that the noble Lord, Lord Teverson, is worried about? It may be that that has not been decided yet.

[Lord Gardiner of Kimble]

I will avail myself of receiving some information and let everyone in this debate know. Clearly, it is a devolved matter and therefore all three devolved Administrations and the UK Government will make those considerations. That is why I mentioned in particular the English quota management rules. These are matters of responsibility for the devolved Administrations and ourselves in terms of quota. On that basis, I hope the noble Lord will feel able to withdraw his amendment.

[Lord Teverson]

I thank the noble Lord, Lord Cameron, for his question because even if we use the traditional ICES areas, those do not reflect the boundaries between the devolved nations. It is an interesting question.

I thank the Minister for his explanation. I feel reassured by that. If it does not relate to quotas and refers only to vessels steaming around in circles doing nothing at all, who can complain? However, it does not seem to be much of an objective if that is the case. On that basis, I withdraw my amendment.

--- Later in debate ---

[Lord Gardiner of Kimble]

My Lords, this debate has turned into rather an intriguing one, with lots of contributions. I am grateful to noble Lords for these amendments, which all relate to a matter emphasised by the noble Lord, Lord Mawson; that is, ensuring that coastal communities which rely on fishing see a benefit from fish caught in UK waters. The UK Government agree that this is a matter of the upmost importance, but I suggest that other routes beyond this Bill should be used to secure this outcome as well.

Amendment 18 would include recreational and environmental use of fisheries in the national benefit objective. Amendment 19 seeks to ensure economic, social and employment benefits from fish and aquaculture activities. The objective as it stands in the Bill highlights that UK boats, including foreign-owned but UK-flagged boats, should provide economic, social and employment benefits to the UK when fishing against the UK’s fishing opportunities. This is currently achieved through a licence condition requiring all UK vessels to demonstrate an economic link to the UK. The Bill also extends the ability to prescribe an economic link in respect of foreign vessels licensed to fish in the UK through the foreign vessel licensing regime, if this is negotiated internationally.

Perhaps I might take a moment to set out what the economic link requirement currently stipulates of UK vessels. The requirement is delivered through the licensing regime and can be controlled and enforced by the fisheries authorities and the Marine Management Organisation. The economic link is a devolved matter, but currently this licence condition is UK-wide, as agreed in the 2012 fisheries concordat between the Administrations.

I say in reply to my noble friend Lord Lansley that we do not need legislation to amend or set an economic link; it is managed through licence conditions. The conditions of the economic link are that vessels must land at least 50% of their catch of quota species into UK ports; have at least 50% of their crew normally resident in the UK; spend at least 50% of operating expenditure in the UK; or demonstrate an economic link by other means. In practice, this last option usually involves the donation of quota to the under-10 metre quota pool.

In 2018, the majority of vessels met the economic link by landing at least 50% of their catch in UK ports. Twenty-seven vessels met the economic link through other economic link criteria. Of the 27, 22 complied by donating 714 tonnes of quota worth £2.5 million, and five employed a crew the majority of whom were resident in the UK. This quota was put into the under-10 metre pool, which is managed by the MMO, and vessel owners who have valid licences are entitled to fish for it.

Other parts of the Bill, in particular paragraph (a)(ii) of the sustainability objective in Clause 1, already state the UK Government’s aim of ensuring that fishing activities are managed so as to achieve economic, social and employment benefits, which I hope provides the reassurance that my noble and learned friend Lord Mackay seeks in his Amendment 19. This would include the management of recreational and environmental use of fisheries. As such, Amendment 18 does not need to be included because the Bill achieves the same effect as the noble Baroness, Lady Worthington, seeks. I am happy to have further conversations if that presents difficulties for her, but that is the position as I understand it.

There are some further, practical issues to consider in relation to these amendments. It is not clear what any national benefit requirement for the recreational sector could be or for those exploiting the resources for environmental reasons; nor would it be easy to consider how any wider national benefit requirement could be delivered.

The noble Baroness, Lady Jones, seeks through Amendment 20 to extend the scope of the objective that the fishing activities of UK fishing boats should benefit the UK to include the activity of foreign vessels and, through Amendment 21, to require that a majority of fish be landed by UK boats for processing at UK ports. I shall speak to these amendments in turn.

In the future, any access by non-UK vessels to fish in UK waters will be, as all noble Lords know, a matter for negotiation. Access will be on the UK’s terms and for the benefit of UK fishermen. Our access negotiations will always seek to bring environmental, economic and social benefits to the UK. Therefore, through our negotiations, benefits to the UK from any foreign vessels fishing in our waters would be sought and secured, without such an amendment to the Bill.

There would be a number of practical challenges to delivering the change that Amendment 21 seeks to impose. The noble Lord, Lord Teverson, and my noble friend Lord Lansley referred to this. The imposition of this requirement on UK vessels would make many vessels’ existing business models inoperable, as they rely on non-UK markets for the sale of their catch. This is often the case where prices are higher or, in some instances, where appropriate port facilities in the UK are not available. There could be implications for safety if vessels are not able to access suitable ports at the appropriate time. Further, enforcing increased landings into the UK could result in lower prices for the catching sector.

The amendment refers specifically to fish for “processing in UK ports”. While we want to encourage greater processing in the UK, as it creates value and brings employment, there are challenges in practice. We have some world-class processing plants in the UK, but they are not necessarily found in ports. It will also take time and money to invest and build processing capacity. We must also recognise that markets for processed fish need to be developed and there can be good value to be gained from the sale of, for example, unprocessed fish or live shellfish.

Landing requirements currently exist as part of the economic link condition attached to all UK vessel licences, as I have already detailed. This proposed amendment would make it more difficult for other mechanisms which benefit UK coastal communities to operate, including quota donations made under the economic link condition, resulting in a fall in fishing opportunities for the inshore fleet. Schedule 3 to the Bill sets out vessel licensing powers, which we will continue to use to impose economic link conditions on UK registered boats. The economic link policy is being reviewed, to ensure that it remains as effective as possible as we leave the CFP. However, I believe that a licence condition remains the most flexible and effective way of achieving this objective.

Amendments 77, 78, 80, and 84 seek to introduce a new national landing requirement and apply it to vessels licensed using powers in the Bill. While the Government support the intent of these amendments, which is to ensure that the UK benefits from its valuable natural resources, we believe that their aims are addressed both in the Bill through the national benefit objective, as I have previously highlighted, and the provisions to license foreign vessels for the first time, which would allow us to impose on them requirements which are equitable with our licensing regime for UK boats.

There is already work being undertaken on this topic by the Government and by the devolved Administrations. The amendments as drafted would not be appropriate to include in the Bill as they do not respect the devolution settlements—the economic link being a devolved matter, as I have set out. As made clear in the UK Government’s fisheries White Paper, the economic link conditions will be reviewed with a view to strengthening them. The Scottish Government consulted on this issue three years ago. We wish to work with the devolved Administrations to consider whether having the same economic link conditions across the UK would simplify matters for industry.

I am sure noble Lords will agree that, in developing options for reform, we must consider the best interests of the whole fleet, including those British vessels that land abroad when it is most profitable, and ensure that vessels can continue to operate as successful businesses. As we review the economic link, we will carefully consider the impact of changing the required share of landings into UK ports. Setting a fixed percentage for required landings into UK ports by all vessels could present practical difficulties, as the infrastructure for handling large increases in landings may not be in place, and it could disrupt existing supply chains. Furthermore, it would not necessarily benefit the inshore fleet, as quota that has been donated to the under-10 metre pool in the past would, instead, be required to be landed into UK ports by foreign owned vessels. The current drafting of the Bill respects and reflects the devolution settlements, where each Administration is responsible for setting licence conditions, including the economic link. It would therefore not be appropriate for the Secretary of State to be legislating for the whole UK, as proposed.

I realise that this has been a fairly lengthy explanation, but I hope that it has been helpful in demonstrating the UK Government’s commitment to, first, seeing a real benefit from fishing for our coastal communities, and secondly, ensuring that our fishing industry is given enough flexibility to flourish. I understand the rationale behind all the amendments, but I have sought to outline some of the practical intricacies of the fishing industry.

One of the generous remarks by the noble Lord, Lord Teverson, repeated today, is that the more you learn about the fishing industry, the more you realise how little you really know, because of its intricacy and complexity. I have tried to outline some of the points of difficulty that the amendment presents, although I absolutely respect the importance of supporting our coastal communities. With all that in mind, I ask the noble Baroness at this stage to withdraw her amendment.

[Baroness Jones of Whitchurch]

I shall read what the Minister said in detail in Hansard. He said that this is riddled with complexity, and I am sure that that is true, but did I understand him to say that there is a working party already working on issues around the national landing requirement? Is it that he thinks this is a good idea but, as we were discussing earlier, everything has to be agreed with the devolved nations and therefore we cannot agree anything in the Bill? Is this something that is already in train but has not yet been signed off? Is that really what he is saying? I understand that there may be details underneath it.

[Lord Gardiner of Kimble]

I repeat what I said: work is already being undertaken on this by the Government and the devolved Administrations. It is work in progress, but that is the right route, particularly as these are devolved matters and that is important. The Government want to find ways: although we must and do respect the devolution settlement, there are many respects where we have been seeking to work together and why we are legislating on behalf of all four parts of the United Kingdom on this matter. It is the case that we are acting in concert with the devolved Administrations. We are very mindful that many of these areas are devolved, but we think that in the interests of simplicity and straightforwardness there are many areas where we would like to have a single focus, as it were.

[Lord Teverson]

Perhaps I can be helpful to the Minister, in that the whole area of foreign ownership of British-flagged vessels is an English issue, and I am sure that we can solve it in that way and help the Minister get this into the Bill. It is an English, not a Scottish, problem. That is one thing we can do. The other thing is that, on the under-10 fleet redistribution of quota, of course the big promise of the Government is that the pie is going to increase anyway, so there will be plenty for the under-10 fleet. If the Government’s promises, in terms of taking back control and getting rid of relative stability, is what we manage to achieve, then that should not be a problem.

What I particularly want to do at this stage is to go through a thought experiment with the Minister. Taking the point that it is the Government’s objective, quite rightly, post Brexit to have a much larger pie—because the fish stocks are within our EEZ and we will have this whole idea of zonal attachment—we will have much larger fishing opportunities for the fleet as a whole. So, with that bigger pie, are we going to allow the foreign-owned British companies with British-flagged vessels to take even more quota than they have now, or have the Government got a cunning plan to make sure that this expanded quota stays and resides more with real British fishing fleets? I would be very interested to hear the Government’s answer.

[Lord Gardiner of Kimble]

For tonight, I will say that these are matters under active consideration. We take the point that there is scope for additional quota to benefit coastal communities. I am not in a position to give precise details because this is under active consideration, but the noble Lord has absolutely hit on the point that this is about additional opportunities. The Government are working on and considering how best we fulfil that in a way which benefits coastal communities. That, as with a number of other aspects, is work in hand.

--- Later in debate ---

[Lord Gardiner of Kimble]

My Lords, this Government have committed to ambitious action to tackle climate change, including reaching net zero by 2050. To support this objective, it is right that we have included a climate change objective in the Bill.

The Government share the ambition of Amendment 22, which is to make sure that we take meaningful action to decarbonise fishing and aquaculture activities and the infrastructure that supports them, as we must do across our economy. Indeed, I believe we are the first major economy to include an objective of this kind in legislation in relation to fisheries.

Evidence of the links between fishing and climate change continues to grow, and our approach must adapt to follow new evidence over successive iterations of the joint fisheries statement. Therefore, while I agree that action to support decarbonisation of ports and fishing activities must form part of our policies, I am reluctant to prioritise these in primary legislation ahead of the full development of, consultation on and scrutiny of the joint fisheries statement. This is also an issue for other departments, and we will work together to ensure that our functions under this legislation and other specific climate change and environmental legislation are carried out effectively.

The amendment would also have broader unintended consequences. For example, it could lead to future fisheries funding having to prioritise subsidies for fishing port energy efficiency measures that may better be delivered through measures other than fishing policy, such as planning and energy efficiency regulation, over measures to support directly the industry-focused infrastructure such as auction halls and landing sites. It could also lead to future fisheries funding having to priorities support for energy-efficient engines over more targeted fishing gear. The Government should be able to change their priorities for a future funding scheme in consultation with stakeholders so that it best delivers the government policies needed in response to the conditions at the time. We should always take an evidence-based approach to deciding which areas to prioritise in achieving this objective. We believe that the best way to do this is through the joint fisheries statement, rather than in the Bill.

Amendment 23 enables me to highlight that the UK—as the noble Lord, Lord Grantchester, said—is at the vanguard of global ambition to reduce greenhouse gas emissions, having last year committed to achieving economy-wide net-zero emissions by 2050 through the Climate Change Act 2008 (2050 Target Amendment) Order 2019. While I fully support the noble Lord’s ambition to transition to net-zero emissions in the fisheries and aquaculture sector, we have a clear target already enshrined in primary legislation. To introduce a further acceleration of that target in the Bill would create a sectoral disparity that could unfairly disadvantage an industry already facing challenges to adapt to the impacts of climate change. This is not to say that we should not seek to be ambitious as we work towards decarbonising our fisheries and aquaculture operations, but rather that we take a measured approach that supports the sector through the transition on a timescale achievable for all—from small, single-vessel operators to large processing operations. Legally binding policies will be contained in the joint fisheries statement, which will set out in more detail the steps we will take to deliver against the objectives in the Bill.

Turning to Amendment 125, I take the opportunity to set out some of the work already going on across the UK to support the fishing industry’s progress, along with the rest of the country, towards achieving economy-wide net-zero emissions by 2050. I apologise to noble Lords who were aware of this, but I shall put this on the record.

The national adaptation programme—NAP—sets the actions that Government and others will take to adapt to the challenges of climate change in the UK. Published in 2018, it sets out key actions for the following five years across a wide range of sectors, including fisheries and aquaculture.

The UK Clean Maritime Plan, published by the Department for Transport, sets out a national action plan for the whole of the UK maritime sector. The plan includes commitments to support maritime innovation, establish a maritime emissions regulation advisory service and consult on how the renewable transport fuel obligation can be used to encourage the uptake of low-carbon fuels in maritime sectors. The aim of the plan is to achieve zero-emission shipping by 2050, as set out in the Government’s Maritime 2050 strategy. This recognises the need to take action to tackle greenhouse gas emissions in line with the Paris agreement and the UK’s 2050 net zero ambition. Together, both plans ensure the fishing industry will effectively contribute to the target for zero net emissions of carbon dioxide and other greenhouse gases by 2050.

The climate change objective in Clause 1 will support this ambition by requiring the fisheries administrations to consider these matters in consultation with industry and interested parties, as they develop the policies that will sit in the joint fisheries statement. I recognise, and I am pleased, that a number of noble Lords have recognised, in the hurly-burly of the exchanges, that we did insert this new climate change objective. It is absolutely right we did so, because it is at the very heart of what we have to do. For the sake of tonight, I hope the noble Lord will feel able to withdraw the amendment.

[Lord Grantchester]

My Lords, I am grateful to the Minister for that reply, and I take it entirely in the spirit in which he makes it. We are all committed to this objective, and we all work as fast as we may. We will study the Bill’s words very carefully, to look at where it is appropriate to put in a little more ambition, and whether it is right to leave it to the fisheries statement or whether we could devise some plan to escalate it up to being a stronger commitment. But at this stage—