The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Victoria Prentis)
I congratulate both representatives from Hull on securing this debate on such an important issue. It was good to meet them earlier in the week and earlier today, and I look forward to continuing our conversations over the months ahead. They both represent areas with a proud fishing history, as indeed do the other Members present in the House this evening.
I understand that this is a difficult time for the Kirkella, her crew, UK fisheries and, indeed, parts of the wider industry. I want to take this opportunity to set out the background to the recent fisheries negotiations and why the UK and Norway have been unable to conclude bilateral fisheries agreements so far this year.
Victoria Prentis
I will make a bit more progress, I think.
When the UK was a member of the EU, UK vessels were able to fish in Greenlandic, Norwegian and Faroese waters because of agreements that the EU had in place. Those agreements, however, caused fundamental difficulties for the UK. It was interesting that the hon. Member for Kingston upon Hull East (Karl Turner) said that this is not about left and right or Brexit and remain. I agree: it is about fairness.
The agreements that were in place when we were an EU member meant that in 2019, for example, the value of the fish that Norway landed from UK waters was approximately eight times higher than that of the fish that we landed from Norwegian waters. We gained £30 million-worth, and it gained £250 million-worth. That gives hon. Members some idea of the difference. About 197 Norwegian vessels fished in our waters, compared with about 50 of our vessels fishing in its waters. Similarly, Faroese catches in UK waters were worth about 21 times the value of those caught by UK vessels in Faroese waters.
With those deals, there was an effective deficit to the UK of £218 million with respect to Norway and £24 million with respect to the Faroe Islands. That was because we were a member of the EU. We were not an independent coastal state and we could do nothing about that. I suspect that the House agrees that such arrangements are not in the best interests of the UK in the long term. As an independent coastal state, our fisheries relationships in the north-east Atlantic must change, and we must move away from this highly unbalanced position.
Jim Shannon
Does the Minister agree that, as an independent coastal state, the UK is right to seek redress for the years of imbalance in fishing agreements negotiated by the EU, which in the case of Norway has resulted in eight times as much seafood being harvested by Norwegian vessels operating in UK waters than vice versa?
Victoria Prentis
I do agree, and indeed am trying to explain how very imbalanced the relationship has been in recent years.
It is, of course, challenging for our neighbours as we seek to make those adjustments and to strike the right balance in our relationships with our fellow coastal states. We started annual negotiations with Norway in January. We met with the Norwegians extensively and put several offers on the table. As I have set out, the priority for us was to rebalance the relationship. We are not willing to give valuable access to our waters for free.
During our fisheries negotiations, it is important—I see in the Chamber Members from Scotland and from Northern Ireland, and from other parts of the UK—that we represent the whole UK. We must also focus on long-term strategic outcomes, not just those for this year. A deal acceptable to Norway that retained some of the imbalance would not be in our national interest, and a similar dynamic developed in our negotiations with the Faroese.
The hon. Member for Kingston upon Hull West and Hessle (Emma Hardy) mentioned that we do not have an agreement in place with Greenland. The EU pays money, not quota, for access to Greenland’s waters. It pays about €16.5 million a year, in money. There might well be opportunities to agree for UK vessels quota and access sharing agreements with Greenland, but the House must understand that there is difficulty in replicating the arrangements the EU has with Greenland. That would doubtless involve a direct payment of taxpayers’ money, which would benefit private companies that catch the quota. I do not see us wanting to go down that route.
It is important to make it clear to the House that the Kirkella still has access to significant fishing quota in Norwegian waters around Svalbard.
Victoria Prentis
No, I will make progress if I may.
In a separate arrangement with the Norwegian authorities, the UK received access to fish 5,500 tonnes of cod in the Svalbard area, as the hon. Lady said. That is not to be sniffed at. It is worth approximately £12.6 million to UK fisheries, which will fish that quota. I understand that the Kirkella has apparently used half that quota to date and has about half left to fish, as well as the majority of its quota in UK waters. I appreciate that that is less than it has had in previous years—I do appreciate that, and I am not in any way seeking to downplay it—but those are substantial fishing opportunities none the less.
Victoria Prentis
No, I will carry on if I may.
Let me answer the hon. Lady. The Secretary of State has written this week to his Norwegian counterpart, expressing a desire to continue to work closely with Norway this year and looking forward to the formal start of the negotiations for 2022 in September, as soon as the science, which is so important, becomes available.
I should also make clear, as perhaps I have not done so, the fact that we have never taken our offer for this year off the table. Our offer to Norway remains on the table and our door is completely open if the Norwegians wish to begin to negotiate with us again, but I re-emphasise that that must be based on fairness in the future. We look forward to restarting the cycle of negotiations. As hon. Members know, the preliminaries have started. We await the science, then negotiations will start formally in September.
The Government recognise the need to support the fishing sector generally to transition and prepare for a new long-term future. I am pleased that we have gone well beyond our manifesto commitment, and the Prime Minister has announced that £100 million will be invested across the UK for transformative seafood projects. The projects will rejuvenate the industry—and, I hope, our coastal communities—through training and qualifications, infrastructure projects and the development and roll-out of science and innovation across the supply chain.
Emma Hardy
I am sure the Minister will recall the conversation we had earlier in the week about workforce retention. As I mentioned in my speech, we have already lost 25 British crew members in the fisheries industry because of the failure to secure that deal. I also mentioned my constituent Charlie Waddy, who might not continue as a first mate if the Kirkella is unable to continue to fish to the level it did before. There is not much point in preparing a workforce for an industry that is in decline if the support is not there any more. As my hon. Friend the Member for Kingston upon Hull East (Karl Turner) asked, what compensation will be given to those fishermen and women to secure them in work until a new deal is negotiated?
Victoria Prentis
I do not share the hon. Lady’s analysis of the future of the UK’s fishing industry. We believe that there is a bright and sustainable future for the industry.
Turning, if I may, to the impact on jobs, I recognise that seafood processing in particular has huge regional significance and that it makes a really important contribution to Grimsby. My hon. Friend the Member for Great Grimsby (Lia Nici), whom I met yesterday to discuss this with, reminds me of that very regularly indeed. The gross value added is almost £300 million, and there is a turnover for processing of over £1 billion in most years from 2018 onwards. The area accounts for over 30% of seafood processing jobs in the UK.
Karl Turner
Is the Minister suggesting that those fishermen and women should transfer to doing factory work onshore? Is that the alternative the Minister is offering?
Victoria Prentis
I do not recognise the picture of the jobs situation that has been painted by the two representatives from Hull. I do not recognise the hon. Lady’s figures. I have been briefed that all the crew are self-employed share fishermen. We think that about 30 to 34 crew are being employed on the Kirkella. As I said earlier, there are still significant fishing opportunities for the Kirkella this year in Svalbard, and we will continue to work hard to make a deal for fishing opportunities next year.
Moving to another point that the hon. Lady raised, the majority of raw materials used in processing in Humberside are sourced from imports, as they long have been. We are seeing significant investment in the seafood sector in the region. Young’s, for example, is currently running a recruitment campaign for 400 people, which is a great indicator of how the hub in the region is doing. I am not suggesting that every crew person transfers into processing jobs; I am merely trying to explain that there are good jobs in the seafood sector in the region, and that we are really pleased to support those where we can.
On a good news note, we have noticed a significant uplift in retail sales of seafood recently. The Government are working closely with bodies such as Seafish to ensure that the British public continue to develop their appetite for British fish. I want to see continued growth in this industry and more fantastic UK seafood being enjoyed by the British public.
This has been a period of considerable change for the fishing world and the wider sector, including for processes and hospitality. In its response to the covid pandemic, the sector has demonstrated again and again how resilient and adaptable it can be. Adjusting to our position as an independent coastal state is also challenging, but I am confident that, as we continue to work with other neighbouring coastal states, there is a bright and environmentally sustainable future for British fishing.
Mr Deputy Speaker (Mr Nigel Evans)
Before I put the question, let me thank all staff of the House for the incredible work that they have put in. I hope that they have an enjoyable May week’s recess.
Question put and agreed to.