Brexit: Fisheries (EUC Report)

Baroness Scott of Needham Market Excerpts

Monday 16th January 2017 Grand Committee

[Baroness Scott of Needham Market (LD)]

My Lords, first, I congratulate my noble friend Lord Teverson, his committee and its staff on producing a report that is well researched, evidence based and very clear in its conclusions. Some seven months after the referendum, at a point where we expect Article 50 to be triggered imminently, there is an urgent need for an informed debate about the complexity of the choices we face and the likely consequences of various courses of action open to the Government. The noble Lord, Lord Boswell, and the EU Committee have therefore made exactly the right decision in focusing its attention and that of the sub-committees on issues which bring thoughtful and reasoned arguments to the table. I would like to think it might catch on, but I am not holding my breath.

Given the range of topics covered by the Energy and Environment Sub-Committee, it might seem strange that it chose fisheries—a sector that employed fewer than 12,000 people in 2014 and, as we have heard, accounts for only half of 1% of our GDP. But I am pleased that it did, partly because, although it is a small industry, it has a proud tradition which is a strong part of our heritage as an island nation, and because in the communities where it still holds, it is an important part of their modern economic well-being. I am also pleased because themes emerge from this report which resonate with many other sectors and are in many ways typical of the issues we will face in the coming years as we leave the EU. There is the complexity of working out transitional arrangements so that we do not create a regulatory gap. There are decisions about our future relationships with the EU27 and with neighbouring countries that are not members but are bound to the EU in various ways, and with countries—some very far away—with which the EU has fisheries agreements. Then, there are the different interests and legal frameworks governing the devolved Administrations, and the way in which different policy areas interact with each other—in the case of fisheries, predominantly environment and market access issues. Finally, there is the question of control. A post-Brexit UK will still have to operate under a number of international rulebooks, and may choose to do so in other cases.

I think it is fair to say that the CFP is not the most beloved of EU policies, although the competition is quite fierce. The committee received much evidence suggesting that it has not been fit for purpose, and I agree that all too often, its one-size-fits-all approach has been problematic. Until fairly recently, insufficient account was taken of regional variations; applying the same policies to the Mediterranean and the Baltic was clearly never going to end well. This has greatly improved in recent years, with more bespoke multi-annual plans and the development of regional fisheries management organisations. These organisations include participation from non-EU states, so I hope the Government will still seriously consider remaining part of them. There is also some justification to the argument that the CFP has not taken into account the needs of smaller local fisheries, and that many of the technical measures were simply not grounded in the realities of the harsh conditions of working life at sea.

It is clear from the evidence received from Norwegian and Icelandic representatives that Brexit provides a potential opportunity to refocus fisheries policy on wider community benefits. Revisiting quota allocation to give less advantage to larger businesses is entirely within the gift of the UK Government now, and could be a quick win. Given that €243 million has been allocated to the UK from the European Maritime and Fisheries Fund for the next four or five years, thought needs to be given to what, if anything, will replace it.

It is fairly clear from the evidence that the fishing industry would like some quick changes to technical regulations, and I can see why, but there is a dilemma for the Government in how they handle such piecemeal repeal and reform, which can result in emerging policies that end up out of step with broader objectives. This danger is implicitly recognised in the approach that the Government intend to take with the great repeal Bill.

The problem of quota hopping is often cited as a major shortcoming of the CFP, and it is worth emphasising that the allocation of national quota to fishers is a national competence. The issue arises from decisions made by UK fisheries companies selling their companies and their quota allocation to EU businesses. We appear to have no idea what the future arrangement will be for either quotas or the right of a foreign-owned business to buy UK assets. However, when foreign companies wish to buy UK assets, government normally regards it as inward investment and welcomes it. As far as those currently in operation are concerned, perhaps the Minister can confirm that this will be part of a wider discussion about acquired rights not just of citizens but of businesses in any post-Brexit framework. A similar issue presumably arises with the existing agreements whereby member states fish within our EEZ.

It is worth emphasising that for all its shortcomings, the underlying objective of the CFP, which was to deal with overfishing, has met with some success. The report covers very well the challenges of, as one witness described it, a common resource which can be accessed by many but which can be consumed only once. Evidence received by the committee highlighted that limitations, such as TAC and quotas, have delivered improvements in fish stocks, and the New Economics Foundation reports improved profitability.

The almost total collapse of cod fisheries in the Grand Banks of Newfoundland is a salutary lesson about what happens when overfishing and habitat destruction is allowed to continue. By the time the moratorium there was finally agreed, it had to be drastic, and it resulted in the loss of the jobs of 30,000 fishers and 15,000 ancillary workers. It is not in the best interests of the UK fishing industry to lose the momentum that we have gained, and nor should we understate the scale of the broader challenges that we face. The European Environment Agency’s 2014 Marine Messages reported that less than 20% of all biodiversity features could be considered as of good environmental status. The sub-committee’s 2015 report The North Sea Under Pressure goes into some detail on this, but for now I wish simply to make two points.

First, there is much we do not know about the marine environment. The creation of the European Marine Observation and Data Network has done much to ensure that data are shared and available. It is exactly the sort of body to which we should continue to belong and which we should support after Brexit. Secondly, the health of the marine environment has been a priority for the EU. I fully accept that the maritime spatial planning directive and the marine strategy framework directive might not be day-to-day topics in the Dog and Duck, but they are important parts of how we manage the seas and, given that the North Sea is a shared space, we will continue to be impacted by these policies even after we have left.

To return to fisheries specifically, the evidence received by the committee and that given to the balance of competencies review two years ago suggests that there has to be some sort of supranational body to manage fisheries. I was very interested in the points made in the report about the United Nations Convention on the Law of the Sea, which obliges coastal states to co-operate, based on scientific evidence, in the management of their fish stocks. Does the Minister agree that for this reason alone, and put alongside environmental considerations and the need to maintain good diplomatic relationships, the UK will need to remain a close and considerate partner?

The report fairly describes the opportunities for the industry which may come from Brexit, but it also makes the complexities clear. My time as chair of this sub-committee led me to see that the team in Defra, like most of the Civil Service, is highly competent and committed, but I am concerned that it was overstretched before the Brexit decision and will need more resource to ensure that the fishing industry, coastal communities and the marine environment are still to thrive.