Fisheries Bill [HL]

Baroness Worthington Excerpts

Report stage & Report: 2nd sitting (Hansard) & Report: 2nd sitting (Hansard): House of Lords
Wednesday 24th June 2020 Lords Chamber

Moved by

[Baroness Worthington]

35B: Clause 27, leave out Clause 27 and insert the following new Clause—
“English fishing opportunities
(1) The English fishery shall be vested in Her Majesty.(2) The Disposal Authority has the power to dispose of English fishing opportunities on behalf of Her Majesty—(a) for open market value or beneath open market value where there is demonstrable public or charitable benefit;(b) on the terms of a licence for a period of no more than seven calendar years;(c) upon such other terms and conditions as the Disposal Authority deems appropriate fit, having regard to good fishery management; and(d) in accordance with the provisions of the Crown Estate Act 1961.(3) Any fishing opportunities granted pursuant to subsection (2) may not create or transfer any proprietary right, title or interest in such fishing opportunities or in any fish before such fish are harvested by the holder of the opportunity.(4) As soon as is reasonably practical after the end of each financial year, the Disposal Authority must send to Her Majesty a report on the performance of their functions in the previous financial year, and must lay a copy of that report before Parliament.(5) The Disposal Authority must exercise its functions to secure (so far as possible) that—(a) fishing boats are not used in contravention of section 14(1) (prohibition on fishing without authority of licence), and(b) conditions attached to sea fishing licences under paragraph 1 of Schedule 3 are not broken, as a result of the exercise of opportunities sold in accordance with this section.(6) In this section—“Disposal Authority” means the Crown Estate Commissioners;“English fishery” means the rights for the purpose of exploiting fish species belonging to Her Majesty;“English fishing opportunities” means contractual rights to exploit the English fishery for catch quota, effort quota or other means of distribution.(7) Schedule 5 contains provision conferring power to sell fishing opportunities on the Welsh Ministers.”

[Baroness Worthington (CB) [V]]

My Lords, it is my great pleasure to speak to Amendment 35B, which would replace Clause 27 of the Bill. I have listened to some great debates this afternoon, many of which I support.

It is likely that the Bill represents a once-in-a-lifetime opportunity. It is the first time since 1967 that Parliament has been given the opportunity to write a completely fresh approach to the difficult task of managing the nation’s fisheries resource in the public interest. It is a task that other nations have undertaken with admirable clarity and simplicity, but, sadly, the Bill still falls rather short of that ideal.

However, through this process, things are, thankfully, becoming clearer. On Monday, in response to the first amendment, moved by the noble Lord, Lord Teverson, the Minister confirmed that fish in UK waters are a resource

“held by the Crown for the benefit of the public.”—[Official Report, 22/6/20; col. 31.]

I welcome that statement. He also clarified that, although the right to receive a quota through the current FQA system has been deemed by the High Court to be a property right, this is not a permanent right—it does not exist indefinitely. It is also allowable for the Government to decide to allocate a zero quota, should it be deemed necessary. That is welcome, but what can the Minister say about how the process of the right to fish will be managed to maximise public benefit and meet the goals set out in Clause 1?

The Bill refers to fishing opportunities, which in reality are a combination of holding a right to receive a quota and other means of access to a public fishery. It has a lot to say about the level of quota but is almost silent on the first part of the equation—who should have the right to receive quota and for how long. In moving this amendment, I am seeking to provide answers and clarity on what is a very unclear legal situation.

--- Later in debate ---

[Baroness Bloomfield of Hinton Waldrist]

My Lords, I am grateful for the noble Baroness’s amendment, which seeks to establish how English fishing opportunities will be managed. This includes stating that English fishing opportunities are vested in Her Majesty and establishing the Crown Estate commissioners as the disposal authority for English fishing opportunities. I have already spoken on a number of points within this amendment on Report and I will not labour them but will instead focus on the other parts of this amendment.

The first is a technical point: there is no such thing as an English fishery. There are very many fisheries within the English fishing zone and it is not clear whether the amendment is intended to catch fisheries across UK waters, some of which will be managed by the devolved Administrations. It is unclear what the amendment would invest in Her Majesty.

I have already said that the Government are clear that there is a public right to fish in the sea. Indeed, case law has demonstrated that the Crown, through the Government, has the right to regulate the use of fishing rights, as well as other natural resources such as water and oil.

As noble Lords will be aware, most UK and English fishing opportunities are managed through fixed-quota allocations. I have spoken before about FQA units, which have been held by the High Court to be a form of property right, and it is the Government’s current policy to maintain the FQA system for existing quota.

It is unclear how the amendment would work in relation to the disposal authority allocating English fishing opportunities. The Marine Management Organisation is the existing English fisheries administration and is responsible for allocating fishing opportunities and managing vessel licences. As read, the amendment would place some of these responsibilities with the Crown Estate commissioners instead. Replacing the Marine Management Organisation and part of the role that it performs with the Crown Estate commissioners would require significant restructuring of both organisations.

I make it clear that the Crown Estate commissioners are a statutory corporation set up to manage the Crown Estate on a commercial basis. That includes managing the seabed around England and other parts of the UK, and it is very different from managing fisheries. The powers, expertise and operational assets needed to manage these fisheries reside with the Marine Management Organisation. It is not clear what benefit restructuring these two organisations would bring, but it is clear that it would cause upheaval and confusion.

As noble Lords will be aware, Clause 27 currently relates to the sale to English boats of rights to use fishing quota for set periods of time. I have spoken before about the provisions for the Government to make regulations in the future allowing the auction or tender of such rights in England. This amendment would replace the detailed provisions set out in Clause 27 on how such a scheme would work. This would make the Secretary of State’s functions unclear, and any such future scheme in relation to the sale of English fishing opportunities less transparent.

As discussed on Monday, I emphasise that we are in agreement that fish are a public resource held by the Crown for the benefit of the public, and that no individual may own either the fish themselves or any permanent right to fish for them. Equally, let me be clear on why the Government cannot accept the amendment. Although FQA units do not represent a permanent right to quota, the High Court has recognised them as a property right and we do not want to undermine the current regime. I emphasise to noble Lords that, although we are looking at developing a new system for additional quota negotiated during the transition period, the Government want to maintain certainty and stability for the fishing industry and have made it clear that we do not intend to change the FQA system.

The amendment also raises significant concerns around changing the responsible authority for allocating and managing English fishing opportunities, which the Government believe to be unnecessary.

Finally, the Government believe that the amendment would make any future scheme to sell English fishing opportunities less transparent.

The noble Baroness, Lady Bakewell, asked how we would guarantee that some of the auction quota supported the under-10 metre fleet and smaller vessels. In England, the decision about whether to tender any quota is still being considered. Clause 27 of the Bill provides for the Secretary of State to make regulations to auction or tender quota in future, and the criteria to be applied to any auction or tender could address concerns raised in relation to the under-10 metre fleet. Measures could be introduced to limit the lots being tendered, the amount of time they are tendered for and the groups that they are targeted towards.

The noble Baroness also observed that a lot of very wealthy fishermen already own the vast majority of quota. All I can say is that auctioning is being considered as a possible allocation, but price would not be the sole criterion. We would consult on any scheme, including the allocation criteria, which could include sustainability criteria, and we would also explore running trials first.

I apologise to the noble Baroness, Lady Worthington, if I have not answered all her questions. The line was not very good. I will read Hansard after we finish here and, if there are any other issues that I have not addressed today, I will write to her and place a copy in the Library.

[Baroness Worthington [V]]

Apologies if my contribution was not clear. I thank the Minister for her reply, but I am afraid my specific questions were not answered about the legal position of what allocates from the Crown to the Government the right to distribute fishing rights—so I would welcome further explanation.

This is fundamental to the Bill. We understand that we have a system that at the moment is dominated by a handful of very powerful vested interests, and that is distorting our ability to reinvent our fisheries legislation. I feel strongly that we need a new approach. The Minister stated that this would be an upheaval. I agree; it is exactly the sort of upheaval that we should be seeking to enable.

The current system is not working for the benefit of the many; it is working for the benefit of a few. We need to find a better system and ensure that a public asset is being properly managed, not simply handed out for free on the basis of historical allocation. We need a new—[Inaudible.]

This was not intended to be taken to a Division; it was to stimulate thinking and debate. I hope that, through the process of consultation outlined by the Minister, we can continue to explore options to improve the status quo. We have a unique opportunity—a once-in-a-lifetime opportunity, most likely—to try to do this differently. There are good examples of how the Crown manages complex issues to do with allowing economic development while, at the same time, balancing environmental considerations and long-term thinking. The current system is not fit for purpose, but it would be great to use this opportunity to introduce something new. An upheaval, to my mind, is a good thing, but at this stage I am happy to withdraw my amendment.

Amendment 35B withdrawn.