(2 years, 9 months ago)
Lords ChamberMy Lords, I am a member of the Secondary Legislation Scrutiny Committee and I can assert that the committee is supportive of the purposes of this statutory instrument. However, the committee has been critical of the presentation of the instrument, as indeed it has been of the presentation of a large number of instruments. I find the objections of the anti-GM lobby to this statutory instrument to be wide of the mark. Its specific objections to the instrument may be disposed of readily as can its wider objections to genetically modified crops.
The main objection that has been raised against the instrument is that it gives no justification for the claim that a genetic modification effected by gene editing could have occurred naturally. In fact, the statement has a very precise meaning. It means that nothing is introduced into the genome by editing it. Only the genes already present in the organism—or crops, which we are actually talking about—will be subject to the editing. The crops will have at least two copies of the gene and, in many cases, there may be more copies. Wheat, for example, has three copies of its genome. Some of the genes may be of a wild variety and others may be of a cultivated variety. The purpose of gene editing would be to ensure the plant has a homogeneous genetic endowment of the cultivated variety. The presumption is that this will lead to a more fruitful crop.
A project aimed at homogenising the genome via selective breeding might take many years and is liable to be time-consuming and expensive. It bears repeating that the process of gene editing will not introduce any alien material into the plant. This fact serves to negate one of the wilder alarms of the anti-GM lobby, which warns that alien genetic material will be introduced into other plants by inadvertent pollination. There are, in fact, no such alien genes to be guarded against.
Another false alarm of the lobby is that genetically modified crops might propagate rampantly, thereby despoiling the natural environment. The truth of the matter is that cultivated crops are largely incapable of self-propagation. This is surely true of cereal crops, which require threshing to release their seeds. Other crops, if they do succeed at reproducing without human intervention, are liable to die out after one or two generations. I believe that we can confidently dispose of the objections to this instrument. It proposes the alleviation of some burdensome restrictions, which have been impeding research programmes in plant science and agricultural science.
My Lords, I will speak very briefly, in part to echo the points made by the noble Viscount, Lord Hanworth. I listened very carefully to what the Minister said in his introduction and, as has been pointed out by the noble Viscount, the key point was that gene editing involves no introduction of novel genes into the genome. In so far as it involves no introduction of novel genes, it is surely in principle something that could arise by natural reproduction—in the normal process of breeding that takes place in agricultural crops and animals. So I do not buy the argument that the definition is unclear; I thought that the Minister was very clear.
The only other point I want to make is on the question of whether something “occurs naturally”. That is quite a risky approach to take since nothing in any agricultural crop or any livestock is natural. These are things that have been produced over the last 10,000 years by selective breeding. If we are trying to create some prelapsarian nirvana where things are natural, we will have to turn the clock back 10,000 years and forget about all the things that we survive on today. So, although I regret having to disagree with the noble Baroness, Lady Bennett, on this occasion I do so.
I would be very interested to hear the Minister’s response to one point raised by the noble Baroness about the problem of different parts of the United Kingdom when crops drift across from one side of the boundary with Wales or Scotland to the other. I would think of it more in terms of the retail of the products. Let us suppose that a blight-resistant potato is developed by gene editing, as seems quite likely, and it is on sale in the shops in England. What will the retailers do about stocking the shelves in Wales and Scotland if their product is not allowed there? I would be very interested to hear the Minister’s response on that.
My basic point, however, is that I totally support this statutory instrument and, like the noble Viscount, Lord Hanworth, I do not think that the arguments against it are at all compelling.
(2 years, 10 months ago)
Lords ChamberMy Lords, there were about 20 licensed imports of trophies in the year 2020 and I suspect that many others may have been illegally transported around the world. My noble friend is right to say that the scope of what we are proposing is all species listed in Annexes A and B of UK wildlife trade regulations, which are broadly equivalent to Appendix 1 and 2 of CITES. That is about 6,000 species. Over 1,000 further species are not listed in the WTR annexes but are assessed on the IUCN red list as near threatened, vulnerable, endangered, critically endangered and extinct in the wild. Only a very few of those are actually hunted for trophies.
Can the Minister explain why the MoD continues to sanction the slaughter of Canadian brown bears to produce ceremonial headgear for our soldiers when there are perfectly viable alternatives?
My Lords, I am not an expert on this, but I understand that the bearskin is a product of a heritage cull which has to take place in certain parts of the world and is not an endangered species import.
(3 years, 9 months ago)
Lords ChamberMy Lords, my noble friend highlights an important documentary and the fact that fishing businesses are at the heart of many coastal communities. As I said, they supply a healthy source of food to the public. In England, we will open a new grant scheme in April to replace the EU-funded EMFF. This will support sustainable growth for the sector in England, including supporting businesses to recover from Covid and adapt to new trading conditions outside the EU. I recommend the documentary as well.
My Lords, foremost of the eight objectives declared in the Fisheries Act 2020 is the sustainability objective, which aims to ensure that fish stocks are maintained at levels that avoid the danger of their radical depletion. Can the Minister tell us how this objective is to be reconciled with the expansion in the capacity of the British fishing fleet? Moreover, can he explain why the Government resisted during the passage of the Fisheries Bill calls to declare sustainability an immediate and unequivocal objective, and why they preferred to describe it as only a “long-term” objective?
My Lords, we had many deliberations on sustainability during the passage of the Fisheries Bill. It is absolutely at the heart of the legislation, which is why we believe that there is compatibility between sustainable fishing and modernising and rejuvenating our fishing sector with new technology, new nets, REM and all the things we want to do. This is an important source of food, but the harvest needs to be sustainable.
(4 years, 1 month ago)
Lords ChamberThe following Members in the Chamber have indicated they wish to speak: the noble Viscount, Lord Hanworth, the noble Lord, Lord Lansley, the noble Baroness, Lady McIntosh of Pickering, and the noble Earl, Lord Caithness.
My Lords, I wish to address the Government’s amendment to Clause 1 and the amendment of noble Lord, Lord Randall. The Government have proposed replacing subsections (2) and (3) of Clause 1 with a single subsection. To understand the implications, one must look carefully at the deletions. Subsection (3), which the Government would delete, states that the sustainability objective is the prime fisheries objective. It is reasonable to infer that the removal of this is tantamount to its negation. If sustainability is not the prime objective of fish stock management, it is logical to infer that the depletion of fish stocks would be regarded as a tolerable outcome if their preservation would stand in the way of the realisation of more favoured objectives.
One does not have to look far to discover what these objectives might be. The Government have encouraged an expectation that Brexit will result in a bonanza for British fishermen. They are keen to avoid an immediate disappointment of this expectation by restraining the fishermen. Fish are not vital to the UK economy. The incentive to conserve them is liable to be overshadowed in the short run by the desire of the Government to appease UK fishermen and supporters of Brexit in general.
That this is the immediate objective is confirmed by another deletion from subsection 2(a)—the deletion to which the amendment of the noble Lord, Lord Randall, draws attention. The original clause declared the intention to avoid compromising environmental sustainability either in the short term or in the long term. The Government now propose to do this only in the long term. This invites the danger that, in the long term, there would be little left to sustain. The noble Lord, Lord Randall, has proposed that the remaining qualification, which refers to the long run, should also be deleted, so that the objective of environmental sustainability can be asserted unequivocally. I believe this to be his intention and I support his Motion strongly.
Thankfully, there are other passages in the confused text of this Bill that might give us greater hope for the survivability of fish stocks than the Government’s proposed version of subsection (2) of Clause 1. Clause 1(3)(b) asserts the objective of exploiting the marine stocks in such a way as to maintain the populations of harvested species above the biomass levels capable of producing the maximum sustainable yield. Notice that this is not an injunction to fish at the maximum sustainable yield—which would imperil the fish stocks—but to fish at a lesser rate, which would allow stocks to regenerate.
I am unaware of the provenance of this clause. It must have been placed there by someone with a proper understanding of fish stock ecology. It makes good sense and I wish to commend it.
My Lords, I am glad to have the opportunity to contribute briefly on this group of amendments. I wish to speak to nothing other than Commons Amendment 3, relating to the deletion of Clause 18, which deals with the national landing requirement. I support the Government going down this path of accepting that we do not want to impose the rigidities of that formulation, and I entirely agree with what my noble friend the Minister said in introducing his amendments and speaking to that particular one.
As was said by my noble friend, and by the noble Lord, Lord Teverson, this is about achieving economic benefits through economic linkage. The Government are pursuing this through their consultation. We must understand that the most important economic benefits will be derived from the new relationship we establish with the European Union and our role as an independent coastal state. We must make this happen.
I remind noble Lords—I know those present will know only too well—that we import two-thirds of the fish that we eat and we export two-thirds of the fish that we catch. The market and trading relationship that we have with our neighbours is as important as the relationship that we have around the allocation of fishing opportunities. It is said that a deal can be done: both sides are saying a deal can be done but both sides continue to say that such a deal has not yet been done in relation to fisheries. That is a sad fact, because it should be the case that a deal should be available. Some considerable time ago, the European Union accepted the proposition that there would be a move to zonal attachment rather than relative stability. It cannot deny the simple legal fact that we have now, and will have in future, sovereign control over our waters, but I think we all accept that there is a need to co-operate.
The noble Lord, Lord Teverson—he understands this far better than I do—made the point that what we require for our UK fishing fleet is, in the years ahead, a reversal of the experience they have had in the last decades. Instead of the progressive reduction of capacity of the UK fishing fleet—which I think is something around 30% down over 20 years, and halved over the last 40 years—we want in the decade ahead to see the capacity of the UK fishing fleet increase, year on year. It is not simply about the allocation of additional quota, because, as the noble Lord, Lord Teverson, said, that could end up quota that is sold back to foreign boats.
What we want to see therefore—and what is, I think, the basis of a deal—is an acceptance on the part of the EU that there is a progressive increase in UK quota that is then made as additional quota available to UK boats at a pace realistic to their ability to increase capacity. They have been losing capacity, on average, at 2% a year, and we could maybe be more ambitious in recovering it—at perhaps 5% a year, and a 50% increase in capacity over 10 years.
It may be that this is not achievable in a straightforward deal with our European partners. But in the broader context of the relationship with the EU, such a shift and reduction in the available quota to our neighbours in the European Union is entirely negotiable, with compensation for those who lose access to quota in some of these other countries. That may be something we have to accept in the context of the deal.
However, it seems to me that one of the ideological barriers to understanding the nature of the deal that has to be struck is the proposition, constantly made by the Government, that there is no relationship between market access and quota. That is clearly not true. It was not true for the Norwegians: the European Economic Area discussions that Norway had with the European Union were about financial contributions, fishing opportunities and market access. Our deal with the European Union must include all those three aspects too. When we accept that, and the fact that we are substantial importers and consumers of fish caught by our neighbours, just as they buy from us, we then begin to realise that there must be a deal and how it might be achievable. We will then get the economic benefits through the expansion of our fishing fleet over a period of time at a sustainable rate, which, I believe, should be accepted, even by the most fervent advocates of the Brexit process—which I am not. But even those who are must accept that simply, for example, giving all the quota back to the English fishing fleet tomorrow will not suddenly create a large capacity that does not presently exist.
(4 years, 9 months ago)
Lords ChamberMy Lords, I apologise to my noble friend for jumping in here, but I would like to go on for a bit to address exactly what the noble Lord, Lord Krebs, has said. I could not concur more strongly with the aspersion that he made against the mantra of fishing at the level described as the maximum sustainable yield. I reiterate that it is absolutely perilous to do so.
The MSY represents an unstable equilibrium. It is akin to the equilibrium of an egg balanced on one of its ends; it is almost impossible to achieve even for an instant. One small disturbance will topple the egg, which is liable to fall on the table and break itself on a hard surface. In the case of fish stocks, that hard surface is total species extinction.
It is by an unfortunate misuse of terminology that the maximum possible harvest has acquired the misleading description of “maximum sustainable yield”. The words “maximum” and “sustainable” have specious connotations, which are spurious in this case. For a start, as I have emphasised, this level of harvesting is not sustainable. Moreover, if it could be sustained, it would not correspond to an economic optimum. To achieve this level of harvest requires an uneconomic expenditure of effort.
A vision of fish-stock ecologists is that we could harvest an ample supply of fish from an abundant stock with the least expenditure of effort. This would require the fish stocks to have an opportunity to regenerate themselves by the suspension of excessive harvesting. Such circumstances prevailed in the years immediately following the two world wars, during which fishing in European waters had been largely suspended. This did not last for long. Soon, fishing fleets armed with technological innovations were chasing an ever-diminishing supply of fish through marine deserts of the fleets’ own making.
In the face of the depletion of fish stocks, British fishermen have adhered to the myth that they have been robbed of fish by the depredations of foreign fishing fleets. They now urge the Government to give them exclusive access to our supposed national waters and to allow them to substantially increase the size of their harvests. This is a recipe for disaster. I thank my noble friend for allowing me to jump in.
My Lords, I thank my noble friend and speak to Amendment 112 in the name of the noble Lord, Lord Teverson, to which I put my name—although I may now regret it, since he poked me in the eye. I will also speak to Amendment 124 in the name of the noble Lord, Lord Krebs. I will not repeat the arguments, which both noble Lords made so eloquently and passionately.
What is the Government’s stance on remote electronic monitoring with cameras being brought on to all vessels fishing in UK waters? Noble Lords have heard the reasons: we need to capture data on non-target and protected species and on the bycatch and discards regime, as well as better data on fish stocks to inform scientific assessments; there needs to be effective monitoring and enforcement of fisheries measures and legislative requirements; and it would provide very useful information on vessel location. The current fisheries management system is lacking in effective measures for accurately collecting data on what is caught, and lacks robust monitoring and enforcement mechanisms. That seems really strange in the context of the UK priding itself as a global leader in technological progress.
We can hardly stand as a world leader in the white heat of technology if we cannot see a better way of producing that data, that monitoring and that enforcement without the current stone-age solution of human observers going on to vessels and monitoring only 1% of what vessels catch—and of log books, and of surface and aerial patrols. It is really not a 21st-century solution. What improved system do the Government intend to introduce for all these purposes, which are absolutely vital in the context of our running an effective fisheries management policy, if not remote electronic monitoring with cameras on board all vessels fishing in our waters?
(4 years, 9 months ago)
Lords ChamberI have not participated in these debates, but I wanted to support this amendment because of the emphasis on safety. I do so, my Lords, for personal reasons. I was born in Grimsby just before the Second World War. Grimsby was in those days the largest fishing port in the world. The title was sometimes disputed by our friendly rival and neighbour across the Humber in Hull. Certainly, those two great fishing ports occupied the first and the second positions.
My family had generations in the fishing industry, coming down first from Eyemouth in the Borders of Scotland with smacks when the fishing industry was established around the middle of the 19th century. I was brought up to have great respect for those who went down to the sea in ships. That respect was reinforced by great sadness almost every year, because there was hardly a year when a trawler was not lost, often with the deaths of 20 or 30 men. This brought great grief, either to Grimsby or Hull.
As a young man growing up, I knew all this theoretically. But then, in 1965, I was chosen as the Conservative candidate for Grimsby for the election that in fact took place in 1966. For some 18 or 19 days in August 1965, I went on a deep-sea trawler and lived with the fishermen on board, and got up when the cod end was swung in and the catch was teemed on the deck. Although it was August, we faced at least one force 8 gale; we were also becalmed for a time. I saw the extraordinary skill, courage and resilience of the fishermen. You can understand it only if you have seen it at first hand. They were a wonderful bunch of men, marvellous comrades. The cook was not the most brilliant, but he had been a fisherman until forced to retire in his late 60s and then he became a cook. There was a wonderful spirit of camaraderie and there was great skill, but there was always great danger.
I became very sad when, following our joining what was then the Common Market, the fishing industry was certainly hit—I speak as one who was, as many of your Lordships know, a fervent remainer. If we are to revive our fishing industry, as I hope we will, it is tremendously important that we place emphasis on training and appreciating those who are trained. They have to be immensely strong, resilient and courageous, working at all hours of day and night and rarely getting more than a handful of hours of sleep. A revived fishing industry will depend wholly on those people. It is therefore right that we concentrate for a few moments on this issue and I feel it appropriate to give my words of support in this context.
My Lords, I concur with the sentiments of the previous speaker. However, I fear that the amendments are misconceived in calling for the building of a fishing industry workforce. Even if one were to argue in favour of a substantial increase in the size of the UK catch, which would be utterly wrong in the current circumstances of depleted fish stocks, it would not require an increased workforce.
There is already significant underemployment in the fishing workforce, since advances in fishing technology have reduced labour requirements. We should therefore seek alternative employment for our fishermen, unless we seek to ban the technology. This is the technology of the big boats that use sonar to locate the fish, chart their positions by GPS and use encrypted messages conveyed by satellites to alert other vessels in their fleets to their discovery of the prize. They also take most of the fish.
Were fish stocks to be replenished, less effort would need to be devoted to fishing and fewer fishermen would need to be employed. There would no longer be a need to search the vast expanses of the marine deserts in pursuit of the few remaining shoals of fish.
Perhaps I might also remark on the idea that the fish stocks in our so-called exclusive economic zone are a resource that belongs exclusively to our nation, as more than one speaker has maintained. Our EEZ, which is of an exorbitant extent in comparison with those of other European fishing nations, was bequeathed to us by the United Nations Convention on the Law of the Sea. It was the by-product of an intention to protect the fish stocks of Iceland, which were suffering from the depredations of foreign fishing fleets. It was never the intention of the convention to disbar other European nations from their traditional fishing grounds, yet this is what our fishermen are keen to achieve, seemingly with the support of the Government.
It is a recipe for trouble and conflict, notwithstanding the joy that it has given to my noble friend Lord Grocott, who is exhilarated at the prospect of claiming these fish stocks for the nation. It is foolish. While we were debating the Fisheries Bill on Monday, the International Trade Secretary, Liz Truss, and the French Minister for European Affairs, Amélie de Montchalin, were rehearsing the terms of a major confrontation on fishing rights.
(4 years, 10 months ago)
Lords ChamberMy Lords, the Fisheries Bill has huge potential to cause trouble among the nations of the United Kingdom and with our European neighbours. What is written on the face of the Bill is, in the main, unexceptional. Indeed, the environmental precepts are laudable. In the words of a letter from the Minister, the Bill will be a major step forward in the Government’s vision
“to build a sustainable fishing industry with healthy seas”.
We will be moving away from a common European fishing policy that has been vitiated by the competitive bidding among the European fishing nations for quotas that determine their allowable catches. The quotas have invariably exceeded the levels recommended by scientists; the common understanding is that they have been consistently breached and widely ignored. Even when the quotas have been observed, the practice of discarding fish that are undersized or in excess of species-specific limits has subverted policies aimed at conserving stocks.
The competitive animosity of the nations bidding for quotas has been fuelled by the grievances that the British brought to the negotiations. The British fishermen were still smarting from their exclusion from Icelandic waters when, on joining the EEC in 1973, free access to our surrounding waters was granted to the other European nations. The situation was worsened by the severe contemporaneous decline in fish stocks on account of the overfishing. Now, in the words of our Prime Minister, Boris Johnson, Britain will “take back control” and have full jurisdiction over its “spectacular marine wealth”. He has asserted that:
“We will make sure we don’t trade away Britain’s fishing rights as they were traded away… in the early 1970s.”
The Prime Minister has given voice to a common sentiment that has been expressed enthusiastically by fishermen and their representatives. When it becomes independent of the European Union at the end of the transition period, Britain will be surrounded by an exclusive economic zone—an EEZ—over which it intends to assert its fishing rights. The zone will extend as far as 200 miles from our coastline, when it is not constrained by the proximity of an adjacent coastal nation. In that case, a median line will separate the British zone from that of the neighbouring nation.
The concept of an exclusive economic zone, which was established to protect the fishing rights of Iceland, now redounds to Britain’s advantage. It is enshrined in the United Nations Convention on the Law of the Sea. Geography has endowed Britain with an exorbitantly large zone in comparison to the zones of other European fishing nations such as France, Germany, the Netherlands, Belgium and Denmark, whose EEZs are limited by the median lines.
The outrage at Britain’s pre-emption of fishing areas to which other nations have traditionally had access is now palpable. It threatens to have a detrimental effect on the forthcoming trade negotiations. Already, the granting of a European passport to our financial services sector has become conditional upon our granting fishing rights to other European nations. However, any concessions to those nations are liable to enrage British fishermen, who are looking forward to greatly increased fishing quotas.
There is also a potential for conflict among the nations of Britain over the control of fishing rights. The Fisheries Bill declares that the management of fisheries is a matter that is devolved to the regions of the United Kingdom. Hitherto, a consistent UK-wide approach to fisheries has been maintained because all the fisheries administrations have been required to comply with European law, which has imposed the common fisheries policy. In consequence of our leaving the European Union, that constraint will no longer apply.
Clause 18 of the Fisheries Bill of Session 2017-19, which has become Clause 23 of the current Bill, gives the Secretary of State the power to determine the quantity of fish that may be caught by British boats. Although the Secretary of State must consult with the devolved Administrations in determining this quantity, the UK Government views the determination of fishing opportunities as a reserved function. However, both the Scottish Government and the Welsh Government have disagreed strongly with this. Given the spirit of disagreement and grievance against Westminster that prevails among Members of the Scottish Parliament, one can imagine that this will become a major point of contention. Scottish parliamentarians will be backed by a powerful fishermen’s lobby, which will point to the fact that over 60% of the UK catch is landed by the Scottish fishing fleet.
More must now be said about the attitudes of fishermen and their organisations. It is clear that the fishermen expect there to be large increases in the allowable catch. In a briefing from the Scottish Fishermen’s Federation, we are told that it expects to see an immediate and significant uplift in the quantity of fish available to its fleets. It expects, moreover, that this will be followed by further year-on-year gains. Although the fishermen and their representatives tend nowadays to pay lip-service to the nostrums of conservation, their words and deeds show that in practice they are likely to resist any resulting restrictions on their activities. In particular, they bridle at the injunction that fishing opportunities should be limited by the maximum sustainable yield, the MSY, of fish stocks. The MSY is the maximum rate at which the fish can replace themselves under conditions of human predation or harvesting. If the harvest exceeds the MSY for any length of time then the fish will be destined for extinction.
The objective of fishing at the MSY was incorporated into the rules of the European common fisheries policy. However, certain exceptions have been allowed. One of the principal documents states that, if fishing at the MSY would imply very large annual reductions of fishing opportunities that seriously jeopardise the social and economic sustainability of the fleets involved, then a delay in reaching that objective would be acceptable. This is profoundly illogical. Any such allowance can have arisen only as a consequence of fraught negotiations. Fishing above the MSY will jeopardise the survival of the fish and of the industry. Attempting to fish at the MSY is also dangerous because of the likelihood of exceeding that level inadvertently.
Nevertheless, a recent briefing from the National Federation of Fishermen’s Organisations has militated against the imposition of any constraint based on the MSY. It seeks the allowances that are recorded by the European common fisheries policy. It is clear that, if they are to achieve some of the more reasonable objectives of the Fisheries Bill, the Government will have to stand firm against the onslaughts of numerous parties.
(4 years, 10 months ago)
Lords ChamberThe global depletion of the fish stocks is a prime example of the environmental depredations that have been occurring throughout the 20th century and of which we are becoming increasingly conscious. Fish stock depletion is an example of the phenomenon that has come to be known as the tragedy of the commons. This refers to a circumstance where the self-interested pursuit of individual advantages leads to an outcome that is to the detriment of everyone.
The tragedy of the depletion of fish stocks has been rendered all the more intractable by the invisibility of the marine environment. Nevertheless, awareness of the hazard is not new. The threat to the northern fish stocks became apparent in the 1880s with the advent of steam-powered trawlers. In comparison with their sail-driven predecessors, they were able to travel further, to be at sea for longer and to use larger gear that could reach deeper.
Already by 1885, trawling had become controversial. A government inquiry of that year was charged with examining claims that fish stocks were being reduced and marine environments damaged. However, given the abundant and increasing quantities of fish being landed, the claim must have seemed to many implausible. Here, we have an early instance of an illusion regarding the abundance of fish that has beset the fishing industry for many years. The size of the fish harvest has been maintained in the face of declining fish stocks by deploying ever-improving fishing technologies. Eventually, and inevitably, one will be faced with the reality that most of the fish are gone and the harvests have been severely reduced, if not extinguished. This is the current reality throughout the world.
It has been estimated that the biomass of the fish stocks of the North Atlantic is today only 10% of its pre-industrial levels. This inference is based on the size of the harvest relative to the efforts devoted to catching it. This might be startling until it is recalled that, by 1990, the once-abundant stock of Newfoundland cod had been eliminated through fishing.
The landing of fish by the British home fleet provides only a dim indication of the state of the fish stocks, but they are of some interest in their own right. In 1910, they weighed over 1 million tonnes and followed a downward trend to reach 400,000 tonnes by 2010. During both world wars, fishing was severely curtailed. That allowed the stocks partially to recover but thereafter the downward trend resumed.
The depletion of the fish stocks occasioned the so-called cod wars between Britain and Iceland, during which Iceland sought to preserve its local resources while Britain continued to demand access to them. The cod wars concluded in 1976 with a victory for Iceland. The United Kingdom agreed to a 200-mile exclusion zone around Iceland. Not long after, in 1982, the United Nations Convention on the Law of the Sea established exclusive economic zones in which nations have sole rights to the economic exploitation of marine territories that lie within 200 miles of their shores. If the seas do not extend far enough, the zones are bounded by median lines between adjacent territories.
Britain’s fishermen were highly aggrieved by their exclusion from Icelandic waters. That sense of grievance has continued to this day, albeit aggravated by other causes. It has made them willing, if not eager, to flout the rules and regulations that seek to constrain their activities and ensure the sustainability of fishing. When Britain joined the European Union in 1973, there was little thought of her asserting exclusive fishing rights. Britain could not reasonably exclude other European nations from the waters in which they had traditionally fished.
All maritime members of the unions were given access to the common seas, via the common fisheries policy. Each member was given quotas that defined the amount of fish of each species that they were allowed to catch. The allowances are supposed to be set according to the advice of marine scientists regarding sustainable levels of harvesting. In practice, they have been subject to intense bargaining among the member states and they have invariably exceeded the advised levels.
The quotas defined only the quantity of fish that could be landed legally. The intention of ensuring the sustainability of fishing has been vitiated by the resort of fishermen to the practice of discarding, whereby they throw back to sea any fish in excess of their specific quotas while they attempt to fulfil the remaining quotas. There is also the common practice of upgrading, whereby any fish that are undersized and might otherwise count towards the quotas are discarded.
In 2013, the European Union Commission enacted a ban on discarding fish. The intention was that the ban should be introduced gradually, to become fully applicable to all fish subject to quotas by 2019. The two recent reports of the House of Lords EU Energy and Environment Sub-Committee have testified that the discard ban has been widely ignored by British fishermen. Moreover, our Government have not been effective in enforcing the ban. Their defence has been that they cannot be expected actively to implement the ban until other European fishing nations do likewise. This will no longer be a valid defence after Britain has left the European Union when it will seek to assert control over its fishing territories and over the access of other nations to those waters.
It appears that the Government are intent on asserting rights to the entirety of the UK exclusive economic zone. The exclusive economic zones of some European fishing nations, including Belgium, the Netherlands, Germany and Denmark, are highly constrained by their proximity to Britain, while that of the UK extends far into the North Sea. Given the exorbitant extent of the UK zone compared to those of other European nations, this intention is liable to be strongly resisted. It is possible that a dispute over fishing rights will vitiate the other negotiations that must accompany Brexit.
Recent statements by the Government suggest that they wish the resources of our local seas to be exploited more fully. Therefore, one can imagine that the objective of conserving the fish stocks is liable to be neglected. The pursuit of a policy of conservation is liable to be frustrated by the fact that the supervision of fisheries is to be devolved to the authorities of the constituent parts of the UK. These will have to contend with the pressures of some highly organised and assertive parties, not least the Scottish Fishermen’s Federation.
Nevertheless, models exist for how Britain might successfully manage its fish stocks. The Norwegians, who are not members of the European Union, have successfully managed their fisheries for many years. They have effectively nationalised their fishing industry giving ownership to their Government, albeit that the ownership is licensed to fishing co-operatives. They have also maintained an effective discard ban for at least 30 years.
(5 years, 2 months ago)
Lords ChamberMy Lords, the Queen’s Speech, which we are debating today, has been unprecedented in its vacuity. This gives us a licence to discuss what is not in the speech as much as the little that it does contain. I have ben pre-empted somewhat in what I intended to say by the powerful speech of the noble Lord, Lord Broers. However, I am glad to be able to emphasise the message.
The Queen’s Speech has given scant recognition to the greatest issue of our times, which is the need to respond to climate change. It makes barely a mention of our strategy for power generation, which must respond to climate change while satisfying the domestic and industrial needs of the country. Without a vigorous programme for building nuclear power stations, there will be no possibility of meeting the net zero target for CO2 emissions by 2050.
The real costs of nuclear power have been badly misrepresented. Invidious comparisons in terms of price per kilowatt hour have been made between the electricity from the new nuclear power stations and electricity from renewable sources, which is predominantly from wind power. When the intermittency of renewable power is taken into account, its real costs far exceed the quoted figures. If the proportion of electricity generated by renewable power exceeds a modest level, expensive back-up plant is called for, which ought to be included in the cost. The cost of building the Hinkley C nuclear power station embodies the cost of the first of a kind; it is estimated that the next example, which is to be built at Sizewell, will cost at least 20% less. First generation wind turbines were also burdened by similar start-up costs, and it is with them that a fair comparison should be made. However, a fundamental reason for the adverse costing of nuclear power originates in the economic nostrums of privatisation.
The proponents of privatisation have insisted that major infrastructure projects should be financed by private capital. The corollary of the high commercial rates of interest demanded by private capital is a severe discount rate that belittles the value of future benefits. The interest rate of 3.5% that is commonly used in government cost-benefit analysis implies that £100 received 20 years hence has a discounted present value of £50. However, if we apply a commercial rate of interest of 9%, that £100 has a present value of less than £18. In order to satisfy their short-term time preference and to indemnify themselves against risk, the private providers of capital demand an exorbitant rate of return. The risks are those of delays and cost overruns, and they include regulatory risks, which are a heterogeneous category of hazards arising from the tendency of Governments to change their minds.
When a commercial rate is applied to a programme to construct a large nuclear power station, its abundant future benefits are so heavily discounted relative to the costs entailed in its construction that its economic viability is called into question. We should not be adopting short-term commercial criteria when considering a nuclear project of which the benefits are expected to last for 50 years or more. The Government have failed to raise the necessary finance for building additional nuclear power stations from private sources. They judged that the terms available to them were too costly. Conversely, what they have offered to investors has seemed to them to be insufficient. The Government now propose to make their offers more attractive by reducing the risks that putative investors are liable to face. This is the purpose of the so-called regulated asset base methodology.
The intention is to indemnify lenders against the aforementioned risks. There are two effects. The first is that the capital funds are more likely to be forthcoming when the risks are alleviated. The second is that the rate of return demanded by lenders is liable to be lower when the risk premium has been factored out. Therefore, it will appear that the cost of a project under the regime of a regulated asset base is less than it would be under alternative arrangements, such as a contract for difference. This is an illusion. Any risks that materialise are liable to be borne by the Government or by the consumers of the electricity via higher prices. Moreover, the rate of return demanded by the lenders is still subject to their exorbitant short-term time preferences.
There is an obvious alternative recourse. It is to finance the project by direct government borrowing, which could be by the sale of designated infrastructure bonds. These bonds would bear a much lower rate of interest than commercial rates. The long construction periods that affect large nuclear reactors could be avoided by resorting to small modular reactors that can be constructed off site. These will require a period of development, but it is reasonable to propose that the Government should bear a large proportion of the associated costs. One might wonder why such a recourse has not been pursued.
One explanation lies in the fetish associated with the so-called net borrowing requirement of the Government, which successive Administrations have tried to hold in check. However, a distinction must be made between borrowing that is to service current expenditure and borrowing to finance investment in productive infrastructure. The latter should be no more subject to constraints than are the borrowings of manufacturing enterprises that are invested in plant and machinery.
We need urgently to invest in the nuclear power plants that will sustain our future prosperity as consumers and producers, and which will do so while allowing us to fulfil our commitment to staunch our emissions of carbon dioxide. Without plentiful electric power, we shall be unable to electrify our public, commercial and private transport; nor will we have the power to sustain the industrial recovery that must ensue if we are not to suffer severe impoverishment.
At present, the nation’s electricity generation is preponderantly in the hands of foreign owners. Moreover, unless we support our own nuclear industry, which is still capable of bringing a small modular rector into existence, our nuclear future will fall into the hands of the Chinese, who are currently participating largely in every viable British nuclear project.
(5 years, 7 months ago)
Lords ChamberMy Lords, the difficulty of discussing the effect of Brexit on food prices and availability is that we do not yet know what form Brexit will take, if indeed it materialises. Nevertheless, I shall talk about some of the worst things that could happen. At present, we do not even know whether there will be a transition period to allow some of the outstanding matters to be settled in advance of a definitive severance. Part of the reason for the lack of detailed planning has been the unwillingness of the European Union to negotiate trade policy and other matters in advance of a settled agreement.
Another part of the problem is the lack of detailed perspective that might have been available if the Government had embarked on meaningful exercises in forward planning. Our committee has been assured by the Minister that the problems that have concerned us will be largely overcome by rolling over existing arrangements. This presupposes a ready accommodation of post-Brexit Britain by the European Union.
However, leaving the EU without establishing a customs union would pose a severe impediment to the free movement of goods. Under the arrangements of the European Union, goods that have originated therein have had free passage to anywhere else in the Union without tariffs or other impediments. The European Union is surrounded by a tariff wall that protects its economic activities from competition that might undermine them. This allows member states to pursue their comparative advantages in industry, agriculture and services, while creating a benefit for all of them.
As we have been told, the UK produces 48% of the food that it consumes and the remainder is imported. The imports come preponderantly from the European Union, which provides 30% of what we consume. Another 11% comes from non-European Union countries under terms of trade negotiated by the European Union, which have guaranteed sanitary and phytosanitary standards and, where appropriate, standards of animal welfare. These guarantees have obviated the need for inspection at our borders.
The UK also exports a substantial proportion of its agricultural output and the products of its food and drink industry. The value of these exports is about half the value of the corresponding imports, and some 60% of the exports are sent to the European Union. In the event of a no-deal Brexit, or with the UK outside the EU customs union, all these exports will be subject to the tariffs that the EU must apply uniformly to countries that are not its members. Some of the tariffs would be so high as to threaten the survival of the relevant UK industries. The import tariffs that the European Union imposes on agricultural products are among the highest. For whole milk, there is a 70% ad valorem tariff; for beef, it is 56%; for lamb, it is 40%; and for poultry, it is 14%. These tariffs are testimony to an enduring purpose of the Union, which has been to protect its farmers. Their imposition on our farmers would devastate them.
If we were to be outside a European Union free trade area, we should inevitably be imposing tariffs on our import of foodstuffs. They would be needed to protect our agriculture against the competition from cheap imports. The World Trade Organization rules oblige the UK to treat imports from the European Union in the same way as it treats imports from any other country. To the extent that we are prepared to lower our tariff barriers to protect our consumers from price increases, we should be further imperilling the livelihoods of our farmers, who would already be suffering from the loss of their export markets.
It has been widely observed that rising food prices are bound to affect the poorest members of our society the most. If we were prepared to import cheap foodstuffs that do not fulfil the European standards of quality and, at the same time, to alleviate our own quality controls, our food exports would be disbarred from the EU market.
On 13 March, the Government issued a schedule of tariffs that would apply in the case of a no-deal Brexit. This gave industry and agriculture next to no time in which to absorb the details and formulate plans in response, if 29 March had indeed been the date of leaving the European Union. High tariffs were proposed for beef, sheepmeat, poultry, pigmeat, butter and some cheeses. These were aimed at protecting the producers whose exports will suffer from the aforementioned high European Union import tariffs. To the dismay of the National Farmers’ Union, protection was not extended to eggs, cereals, fruit or vegetables.
Given that there will be no tariff at the border between Northern Ireland and the Republic, one wonders how the regime could be maintained without creating severe distortions. Perhaps in replying, the Minister would care to deal with that point, as he has been asked to by the noble Lord, Lord Teverson.
One Cabinet Minister proposed in a television interview that the UK could grow more food to keep prices down. He asserted that if supermarkets bought more at home, British farmers would produce more, and if they bought more from abroad, it would damage French and other continental producers. He seemed to be suggesting that the latter would be a desirable outcome. The derision he encountered was because he had no idea of the timescale that would be required for the necessary adaptations by our farmers. Increasing food production takes time, and it would not be possible to increase production in time to meet the demands of Brexit. Nor was he taking sufficient account of the fact that the variety of food that we presently enjoy in this country comes from our willingness to import what we cannot grow. The prospect of reverting to cabbages and potatoes in winter and lettuces and cucumbers in summer will fill many consumers with dismay. At present, we can eat whatever we wish at any time of year.
Nevertheless, it is appropriate to consider matters of self-sufficiency in food and the security of its supply in the wider perspective of global trends in agriculture. The present abundance of food is a temporary benefit. It is likely that there will be severe global shortages within two decades. The threat of global starvation envisaged at the end of the Second World War was averted by a combination of fortunate circumstances. These included the mechanisation of agriculture, an ample provision of fertilisers, the advent of hybrid varieties of cereal crops and the availability of abundant supplies of water from irrigation. The resulting period of relative abundance came to be known as the Green Revolution. It is now at an end, and many of its gains are being reversed.
The problems of soil salination, which arise from the ill-advised use of irrigation in warm climates, have severely diminished the agricultural output in many regions, including the Indian Punjab, which has been described as the Asian bread-basket. The global warming we are experiencing has made inroads into the agriculture of tropical regions that are becoming deserts. The rise in sea levels, which is the consequence of the thermal expansion of water, threatens to inundate low-lying river deltas, where much of the agricultural output originates in the developing world. A one metre rise in sea level will eliminate 30% of those low-lying croplands.
Evidence of the precariousness of our supplies of agricultural produce and their susceptibility to untoward global events has already been demonstrated by the experience of 2008, when there was a spike in food prices. To the extent that we cannot rely on global supplies, we must become more self-reliant. We can do so most effectively in the context of integrated European agriculture. A hard Brexit will make this difficult, if not impossible, to achieve in the short term, and it is uncertain how much time is available to us to secure our food supplies in future.