Fisheries Bill

David Duguid Excerpts

2nd reading: House of Commons & Money resolution: House of Commons & Ways and Means resolution: House of Commons
Wednesday 21st November 2018 Commons Chamber

[Mrs Sheryll Murray (South East Cornwall) (Con)]

First, I want to thank the hon. Member for Penistone and Stocksbridge (Angela Smith) for her tribute to the bereaved families of fishermen, and I also want to put on record my grateful thanks to the Secretary of State. My family would also like me to say thank you. I would also like to pay tribute to the Royal National Mission to Deep Sea Fishermen and to the rescue services who go out in all weathers to ensure that our fishermen are safe.

The Bill provides the legal framework for the UK to operate under the United Nations convention on the law of the sea after we have left the European Union on 29 March 2019, something that my late husband and I worked towards since the late 1980s and early 1990s. However, it is important to look at the wider matter of the terms of our exit from the European Union and at the political declaration that the Prime Minister is in Brussels talking about now. I know that the terms will be a cause of concern for many of my constituents and for the fishing industry throughout the UK.

It is no secret that many people feel that the UK’s rich fishing resources were sacrificed when we joined the European Economic Community. Agreeing to the principle of equal access to a common resource—the total EU pond—at the time was in my opinion a dereliction of duty by the then Conservative Government, and I would like personally to apologise, even though I was not a Member of this House in 1972. Indeed, I was not even old enough to vote. It was a dereliction of duty, and the disastrous permanent share-out of the catch for each species in UK waters from January 1983 has left the UK fishing industry a shadow of its former self. An example is that of channel cod, of which the UK is permitted to catch 9% a year while France takes about 80%. We now face a situation in which other EU vessels take five times more in monetary value from the UK exclusive economic zone than UK vessels take from all the other EU EEZs. I have to say to the hon. Member for Penistone and Stocksbridge that the massive value of that fish could benefit the economy of the United Kingdom, but at the moment it is just being given away, with other member states coming in, catching and taking away. There is no benefit to us in that arrangement.

On the morning of 14 November, it was reported that Sabine Weyand—Michel Barnier’s deputy who leads the EU’s negotiations at a technical level—said that the UK would be forced to concede on fisheries as part of the withdrawal agreement, meaning that Britain would have to

“swallow a link between access to products and fisheries in future agreements”.

The French are leading a group of other member states in demanding a link between access to waters and a trade deal. Lots of reports have shown this, but we must not accept such a link. That would be a complete repeat of what happened in 1971 when the UK Government caved in at the last minute and allowed equal access to a common resource.

[David Duguid (Banff and Buchan) (Con)]

I should like to associate myself with my hon. Friend’s comments in paying tribute to the various associations and organisations that support our fishermen. Does she agree that there is no precedent anywhere for access to a third country’s natural resources forming part of a trade agreement?

[Mrs Murray]

I completely agree with my hon. Friend. In relation to Norway and the EU, access to resources is negotiated on an annual basis and Norway has tariffs attached to its fish. There is no link there, and it is completely wrong for people to say otherwise.

I see that my Cornish colleague, the Minister for Agriculture, Fisheries and Food, my hon. Friend the Member for Camborne and Redruth (George Eustice), is in his place. I was going to ask the Secretary of State this question, but I shall ask my hon. Friend instead. Will he please ask the Secretary of State to categorically reaffirm that British fish will not be used to buy a trade deal with the EU? Will he also ensure that only the fish that United Kingdom vessels—I do mean United Kingdom vessels, because Scottish vessels will benefit from this as well, as will those from Wales and Northern Ireland—cannot catch will be made available to other nations? Can he also assure me that, because the catch levels of the UK fleet have been artificially deflated since 1983, allowance will be made for UK fishermen to realise their total catching capacity?

The NFFO would like the Government to establish a formal advisory council to guide policy, promote collaboration between central Government, the devolved Administrations and the industry, and allow an ongoing dialogue in what is a naturally variable industry. An advisory council could play a leading role in the use of secondary legislation to ensure an agile and responsive approach to fisheries management.

It is understandable that the Bill refers to maximum sustainable yield as an approach to sustainable fisheries management. However, if maximum sustainable yield is set as a rigid, time-bound objective, it will prove unworkable. We have seen that happen time and again, and the CFP is the prime example. Setting quotas for sustainable fisheries management in mixed fisheries must take into account a number of different, and sometimes competing, factors. In an earlier intervention, I mentioned zonal attachment, which is an important new way of looking at fisheries management and the assessment of stocks.

Where agreement between fisheries administrations cannot be reached, some sort of approach is needed that allows appeal. It would be useful if the Minister considered putting in place a dispute resolution system that would not impact on fisheries.

I have a few asks for the Minister. Will he look at clause 42, particularly subsections (3) and (5). We need a date for when the provisions come into force, because the fishing industry needs to be able to plan. It has accepted that the implementation period will not end until 31 December 2020, but it would be reassured if we inserted the words “no later than 31 December 2020” into those two subsections.

To sum up, setting aside the complex and controversial questions surrounding parliamentary approval for the withdrawal agreement, much still hinges on the negotiations ahead. The UK’s legal status has altered and its leverage in fisheries negotiations has changed dramatically, but unless that new status is used to address the distortions in quota shares, fishermen will question what it has all been for. English fishermen in the channel have struggled with a 9% share of the cod quota, compared with France’s 84% share—it has been exactly the same for haddock, which my right hon. Friend the Member for North Shropshire (Mr Paterson) mentioned.

To deliver the fair share of fishing opportunities that they rightly see as theirs, British fishermen, in this second round, will expect our negotiators to be as tough, astute and hard-nosed as they need to be to realise the benefits of our new status as an independent coastal state. I really hope that the Prime Minister and the Secretary of State have got that message from fishermen today.

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[David Duguid (Banff and Buchan) (Con)]

Thank you very much, Madam Deputy Speaker; I appreciate that, as I had already tried to pare down my speech to the 10 minutes suggested earlier.

It is a pleasure to follow the hon. Member for Na h -Eileanan an Iar (Angus Brendan MacNeil). As he mentioned, he, the right hon. Member for Orkney and Shetland (Mr Carmichael), the hon. Member for Strangford (Jim Shannon), who unusually is not in the Chamber, and I have the same consistent issue of access not to EU labour—this is not a Brexit issue—but to the non-EEA labour on which the fishing industry has become dependent over the years.

I welcome this opportunity to speak about the Bill, and I welcome the Secretary of State’s opening speech. The fisheries sector is hugely significant in my constituency of Banff and Buchan. Peterhead is the largest white fish port in Europe, and a little further up the coast is the port of Fraserburgh. They are the two largest towns in my constituency. A little further around the coast is the smaller—but no less significant to its local community—port of Macduff. In terms of tonnage, almost half the fish landed by UK-registered boats is landed in my constituency.

Not just fishermen, but the wider communities around the coast of my constituency and of the UK have lost a great deal over the decades we have been in the common fisheries policy. There has been not only a loss of livelihood, the scrapping of boats and the closure of businesses, but fundamentally a loss of what identifies these coastal communities and the people who live there, who remember what once was. Quite rightly, the people in these communities look forward to making the most of the sea of opportunity presented by our leaving the EU and the CFP.

Everyone who speaks in this debate, and those watching in fishing communities around the UK, are keenly aware that Parliament will soon review the proposed EU withdrawal agreement, the impact on fisheries of which is not insignificant. It is therefore difficult to discuss the Bill without referring to the withdrawal agreement, the outline political declaration, or any new future fisheries agreement. I am very much aware of concerns expressed by fishing interests in my constituency and beyond. I have been reviewing the text of the agreement, as well as taking on board input from members of the fishing community, industry representatives and trade bodies, among a host of various stakeholders. My Scottish Conservative colleagues and I have made our position clear to the Government, and we look forward to working with Ministers to find a resolution to the range of concerns raised.

The variety of concerns can be summed up in two words: timings and leverage. On timings, we will leave the EU in March 2019, and when we do so, we leave the common fisheries policy. That is not a political decision, but a matter of legality—we cannot be in the CFP if we are not in the EU. Likewise, we cannot be in the EU, which would be the position of Opposition Members, and not in the CFP.

The agreement states that we enter an implementation period at that point, with that period ending on 31 December 2020. As others have mentioned, it would be welcome if clause 42 included the phrase “no later than December 2020”, because by that time, we must be in a position in which we have completed our first negotiations as an independent coastal state in time for our beginning to realise the opportunities that that presents for the calendar year 2021.

When we first enter negotiations in December 2020, we must have the maximum possible leverage. We have seen in recent media reports from the continent that EU fishing interests are far from pleased that the text of the agreement makes no mention of retaining guaranteed automatic access to UK waters post Brexit. If we are to have the maximum possible leverage in annual coastal state negotiations from December 2020, we must resist the EU’s demands for any continued automatic access to our waters. As the Prime Minister confirmed in her response to my question on this subject last week, we must not accept the EU’s attempts to link future trade agreements with automatic access to UK waters.

[Alan Brown]

I assume that the hon. Gentleman understands that the trade agreement is equally important. Clearly, it is important that we are able to get products to markets. We talk about everything being in isolation, but we must look at this in the mix, because that helps the whole sector.

[David Duguid]

I thank the hon. Gentleman for his comments. I will get to that point a little later.

The Fisheries Bill itself, and the White Paper before it, has been welcomed by organisations across the industry, including the Scottish Fishermen’s Federation. This vital legislation lays the groundwork for the revival of our fishing industry outside the common fisheries policy. It is important to note that, in the event of no deal, the Bill will ensure that all UK vessels can legally continue to fish in our own waters. For example, clause 7 revokes the CFP regulation that allows EU vessels unfettered access to our waters. Clause 8 introduces the common-sense principle that any foreign vessel that wants to fish in our waters must do so on our terms. This is taking back control of our waters, and it is the basis of the British fisheries sector’s revival. Clause 9 covers those UK fishing boats that are required to be licensed, as well as stating those for which licensing will not apply.

Clause 1 defines the fisheries objectives, as many Members have said, and chief among them is the sustainability objective, which ensures that fishing and aquaculture is environmentally sustainable in the long term and managed in a way that is consistent with contributing to the economy and to food supplies. I was going to go through all the other objectives, but as I am pushed for time, I will skip them.

Clauses 9 to 17 set out rules for the licensing of UK and foreign fishing boats—I just want to cover that briefly. Although the devolved Administrations are responsible for licensing boats in Scotland, Wales and Northern Ireland, licences issued by any UK fisheries administration will be valid across UK waters. The UK Government will agree access arrangements internationally and, although each of the devolved Administrations is responsible for issuing licences to foreign vessels in its zone, it is encouraging to know that the UK Government will administer the system, having already been provided with consent by the devolved Administrations.

Clauses 18 to 22 cover the allocation of fishing opportunities, an area on which I would like specific clarification from the Minister. Clause 18 deals with the Secretary of State’s power to determine fishing opportunities. I would appreciate it if Ministers commented on the appropriateness of the Secretary of State setting quotas for lobster or brown crab in Scotland which, I believe, are subject to international agreement. Clause 22 is about the sale of English fishing opportunities. Given that English-registered vessels operate in Scottish producer organisations and vice versa, will the Minister please provide clarification on whether these would be available for all UK vessels?

Finally, let me say something about the future of the fishing industry in my constituency and of fishing communities around the UK. After decades of deterioration within the CFP, we will not see a full recovery overnight. Government support will be required, and this House has previously been assured of that support by the Prime Minister and others

“to secure a sustainable and profitable fishing industry that will regenerate coastal communities and support future generations of UK fishermen.”

I conclude by reassuring the Minister that after we leave the CFP and become an independent coastal state, with all the powers and control that that entails, I will look forward to continuing to work with the Government to deliver that ambition to regenerate not only the fishing industry, but the wider communities and economy for which the “sea of opportunity” will deliver.

Fisheries Bill (First sitting)

David Duguid Excerpts

Committee Debate: 1st sitting: House of Commons
Tuesday 4th December 2018 Public Bill Committees

[Alan Brown]

Q I accept your guidance, Mr Gray, but clearly there is the suggestion of the clear date versus how that would fit into the bigger picture. It is the same thing when we talk about future quota allocations and how that will work. Mr Armstrong mentioned the issue of tariffs in his answer. In yesterday’s questions to the Attorney General he said that the backstop arrangements meant that Northern Ireland would have tariff-free access to the EU and tariff-free access to Great Britain, whereas no other market will have that. Is that a concern, and how could that be addressed in this Bill?

Bertie Armstrong: To be honest, that is not where our focus lies at this point in time; it is on making sure that the Bill as an enabler of—I will use the phrase “the sea of opportunity”—makes it on to the statute book, rather than on the details of what does and does not happen to Northern Ireland in the event of a backstop.

[David Duguid (Banff and Buchan) (Con)]

Going back to Mr Pollard’s question about UK vessels landing elsewhere, for example Norway, can you say a little about what motivates fishermen to land elsewhere? What changes are required in our ports or onshore infrastructure to make landing in the UK more attractive, and is that covered by the Bill?

Barrie Deas: Money. That’s it, really. [Laughter] I had better say a bit more. Over the last 20 years, markets for fish have developed and diversified. Peterhead has become the pre-eminent white fish port in Europe. Flat fish tends to go to Urk in the Netherlands. South-west ports are sending prime, high-value fish to the continent, and then there is the shellfish market. From time to time there will be price differentials. Also, it can reflect where the vessel is fishing: for example, it might make sense to go to Denmark and land for one trip and then land back into Peterhead for the next, or to land into France. Fishermen are commercial animals. They are very much driven by catching fish but also by marketing fish, and price is key.

Bertie Armstrong: I would reinforce that. At the slight risk of crossing the red line again, and as I keep saying, the elevation of the UK to the world stage would mean that, in the simple arithmetic of volume and value, we would overtake Iceland. It would allow us the sort of conditions that our own processing industry would want to entice not only all our own landings but perhaps some from others as well. However, it is a matter of commerce and business, generally.

[David Duguid]

Q So there is the favourable price that you might get from landing elsewhere, but is there something about the ports or the processing facilities, in Norway for example, that the UK needs to catch up on? Could we do something through the Bill to help improve that? When you mentioned money, I thought you were talking about investment in our onshore facilities as well as the price on the market.

Barrie Deas: Over time, and with rebalanced quotas, there would be opportunities, because of the greater throughput, to look again at all these issues. I am not sure what you could put in the Bill particularly that would be helpful, given that this is a dynamic commercial issue that you are addressing. I certainly think that it is an important issue, but I would have to be persuaded that the Bill is the right place to address it.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

Q Good morning, gentleman. I do not want to dwell on the date, but I think it will be an important part of our discussions when we come to line-by-line scrutiny. Your suggestion is that the date would be 31 December 2020, which is the currently envisaged end of the transitional period. You are resistant to any idea that we should extend the transitional period. How do you see fisheries management working from 29 March 2019 to 31 December 2020?

Bertie Armstrong: The provisions, as we understand it, are that we will act as a coastal state-designate during that period, participating fully in the coastal state arrangements that will set the catching opportunity for 2021.

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[Mr Sweeney]

Q As a supplementary, clause 28 mentions a grant scheme, which may be an opportunity.

Andrew Kuyk: Clearly, that would help solve the investment problem. Again, it would not be for me to pronounce on the use of public funds in that way for a particular sector of a particular industry, but if the Government chose to make grants available to do that, clearly that would help the business case for those kinds of investment.

[David Duguid]

Q I have anecdotal evidence that Dutch fishermen are currently catching about 80% of their small pelagic species in UK waters, and about 90% of that is being exported, with minimal processing, straight to west Africa. What can we do in this country to essentially cut out the middleman and make sure that the UK fleet is able to catch, land and export straight to these third countries?

Andrew Kuyk: Again, that is straying outside my territory as representing processors and traders. Your previous witnesses would be involved in that. Without going into the history too much, the Committee will be generally aware of the ability of people to buy quota and so on; it was freely sold and it was freely acquired. That is the way that the market has operated up until now. Clearly, were more quota available it would be possible for the UK fleet to seek to exploit these value added opportunities and, as you say, to cut out the middleman.

It would not necessarily be my members who would be involved in that at the outset, because that it is not business that we are currently involved in. The people who export those pelagics are not my members; it is the large pelagic companies on the catching side of the industry. It is done with minimal processing and minimal value added. I think that is a missed opportunity for UK plc, but I am not sure how much you can legislate for that. If you provide a framework that is conducive to that, then clearly business will step in with the right incentives and will do its best to take advantage of those possibilities.

[David Duguid]

Q Going back to what you said earlier about how the majority of our exports go to the EU, do you have any data on how much we export to the EU that is just minimally processed and further exported to third countries?

Andrew Kuyk: I do not have an exact figure, but I imagine that a clear majority of that would have no or minimal processing.

[Jeremy Lefroy (Stafford) (Con)]

Q You mentioned earlier the import of cod from the Barents sea, Russia, which is obviously outside the EU and the European economic area. What sort of friction is there in bringing that into the UK market, in comparison with what might be experienced in the future.

Andrew Kuyk: Virtually none, in the sense that quite a lot of this stuff is transshipped through other countries, as I have already explained. If it comes in to us through the tunnel there is no friction at all, as it has already entered the single market, so any formalities—border inspection and any controls—have taken place elsewhere. The same is true of some fish that comes from Norway; some of that comes overland into Sweden on lorries. It is not quite just-in-time in the same sense as in the automotive industry, but there is a narrow window—something like 48 hours maximum—for getting those lorries through and into the UK market. At the moment, that is frictionless.

Fisheries Bill (Seventh sitting)

David Duguid Excerpts

Committee Debate: 7th sitting: House of Commons
Thursday 13th December 2018 Public Bill Committees

[Mr Carmichael]

I have sympathy with the amendment, but I want to add a few words of caution. In my time in Parliament, I have often supported campaigns to land more fish in our own ports. Obviously it is important for the economic viability of coastal ports. My worry about the amendment is that the law of unintended consequences could come into play. Such a requirement would be quite challenging for some of the larger pelagic boats in my constituency. I anticipate that a significant proportion of their catch would probably currently be landed in Norway or Denmark. Essentially, my instinct is that fishing boats should be able to land wherever they get the best price for their fish. If the Government were to put into a Bill something that would limit that ability, it would be a bit of a blunt tool.

[David Duguid (Banff and Buchan) (Con)]

As the right hon. Gentleman and the Minister know, many of the concerns that the right hon. Gentleman raises would be shared by pelagic fishermen in my constituency as well. Clearly, they can, and choose to, land in Norway, Denmark and other places for economic and logistical reasons. Does he agree that if the Government or the Scottish Government or other devolved Administrations want to encourage the development of local industries, so that such economic and logistical benefits can be realised locally, that would be better than setting an arbitrary percentage limit?

[Mr Carmichael]

Yes. In essence I agree with the hon. Gentleman about that. When I practised law in his constituency, Macduff was omitted from the list of designated ports. That was virtually the end of—or it was at the time a real threat to—the processing that was done there. When we want to consider building infrastructure—not just landing infrastructure, but ice houses, processing plants and the rest—there are probably other ways we should go first, before doing something as blunt as what is proposed. In relation to this Bill, the National Federation of Fishermen’s Organisations is strongly advocating that we set up advisory councils for fisheries administration, for example. It seems to me that this is exactly the sort of decision that those advisory councils should be tackling, because the fishing industry itself knows best how to deal with that infrastructure.

Fisheries Bill (Tenth_PART2 sitting)

David Duguid Excerpts

Committee Debate: 10th sitting (part 2): House of Commons
Monday 17th December 2018 Public Bill Committees

[Mr Sweeney]

I support new clause 2, which is a frankly common-sense measure. It is imperative that, as a result of the UK leaving the European Union, the industry must have both the certainty and the financial underpinning that it requires. The new clause would ensure that, so surely it must appeal to Government Members who want to provide such certainty. I appeal particularly to Scottish Conservatives present, who surely want to uphold the interests of Scottish fisheries. Here is a real test of whether they are part of Team Ruth or Team May: will they uphold the interests of the Scottish fisheries?

The removal of the EMFF presents a significant challenge across industry in Scotland. My own experience—

[David Duguid (Banff and Buchan) (Con)]

The hon. Gentleman will be aware of the announcement made recently—last weekend, I think—about funding in the implementation period. As the hon. Member for Kilmarnock and Loudoun will probably also appreciate, it was not Barnettised; I think the overall figure was £32.7 million, with £16.4 million going to Scotland. Does the hon. Member for Glasgow North East welcome that?

[Mr Sweeney]

All I am looking for is a simple guarantee that there will be no financial detriment to Scottish fisheries. If you can encourage your colleague the Minister—

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[Alan Brown]

The Minister is optimistic about the future prospects and in thinking that I will withdraw the new clause. I thank the right hon. Member for Orkney and Shetland and the hon. Member for Glasgow North East for their contributions.

I think the hon. Member for Stafford actually made the point for me when he expressed his concerns, and looked for reassurances from the Minister, that the money will go to the Treasury. Frankly, I do not trust the Treasury. I say to the hon. Member for Banff and Buchan that at one point there was a £1 billion fund for carbon capture and storage that looked like it was going to go to Peterhead, but the Treasury overrode the Department for Business, Energy and Industrial Strategy and withdrew the funding. That is the problem with funding reviews by the Treasury: it can put a red pen through the funding at any time it likes. The Treasury holds the purse strings.

[David Duguid]

The general point that I think the hon. Gentleman is trying to make is that, while we are in the EU, we get the EMFF. However, does he accept that there is no guarantee of that same level of EMFF funding for member states in the future?