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.

--- Later in debate ---

[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.