Brexit: Fisheries (EUC Report)

Lord Gardiner of Kimble Excerpts

Monday 16th January 2017 Grand Committee

[The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Gardiner of Kimble) (Con)]

My Lords, first, I thank the noble Lord, Lord Teverson, and all members of the committee for holding this inquiry on such an important issue and for the thought-provoking and timely debate today. Fisheries will be a key area in the UK exit negotiations, which give us a once-in-a-generation chance to regenerate UK fishing grounds and improve the conditions under which they are finished.

The committee’s valuable report highlights some of the complex and challenging issues. It was quite right that the noble Baroness, Lady Scott of Needham Market, used the words “complex and challenging”, as did the noble Lord, Lord Krebs. I do not underestimate those challenges because they will clearly have to be addressed if we are to make the most of this opportunity, and I welcome the debate that the report has stimulated today and which I am sure it will continue to stimulate.

As the noble Baroness, Lady Scott of Needham Market, also said, since time immemorial, fishing has been a key part of the national fabric of our island race, and I take this opportunity to pay tribute to our fishermen, who do such a difficult job in often dangerous conditions. My noble friend Lord Selkirk spoke powerfully and movingly about this. I know that noble Lords will join me in expressing sincere condolences and sympathy to the families and friends of fishermen who have lost their lives or are missing as a result of their work. We should never forget.

In the UK, the fishing, aquaculture and fish-processing sectors account for 34,600 jobs, and in 2015 UK vessels landed 708,000 tonnes of sea fish in the UK and abroad with a value of £775 million. The sector is economically significant to Scotland, where fish accounts for 3% of exports, as well as to local coastal communities across Wales, Northern Ireland and England. I was very pleased that my noble friend Lady Bloomfield expanded on the features of the Welsh fisheries industry and raised the issue of recreational sea angling, which is a very popular activity.

This Government take seriously their role in supporting the fishing industry. To deliver a profitable fishing industry, we must fish sustainably now and in future. This is why the UK has been at the forefront of arguments to ensure that catches are within sustainable scientific limits. In referring to some of the historical records and catches, the noble Viscount, Lord Hanworth, framed this very strongly. The approach we have been taking has started to bear fruit, and I am pleased that in December, at the Fisheries Council, we were able to agree a balanced package, including further increases in quotas on some valuable species, as stocks have recovered, especially in the North Sea. This year, 1 January saw the implementation of the next phase of the landing obligation to include two additional species, North Sea cod, and north-western pollock, which must now be landed and should no longer be wastefully thrown back into the sea. This is an important step towards helping the UK achieve sustainable fishing levels by 2020.

As we move towards leaving the EU, we will continue to work as constructively as we have always done with other member states and the European Commission to promote sustainable management of the seas and to safeguard the interests of the industry. In leaving the European Union we have an opportunity to build on this work to improve the health of our fish stocks and to improve their management in our waters. We want to take this opportunity to create a resilient, competitive and, ultimately, more profitable UK seafood sector and to deliver a cleaner, healthier and more productive marine environment. I very much agree with what the noble Baroness, Lady Jones of Whitchurch, said: it is very important that we have a cleaner and healthier marine environment. I was also very interested to hear my noble friend Lord Ridley’s examples of best practice.

As the committee’s report indicates, leaving the EU and the common fisheries policy means a new legal baseline on fisheries. This is something to which the noble Lord, Lord Teverson, referred in his opening remarks. As an independent coastal state outside the EU, the UK will be fully responsible, under international law, for control of the waters in our exclusive economic zone—EEZ—and for the management of the resources within it, including fisheries. The Government will continue to champion sustainable fisheries. We are also committed to ongoing co-operation with other countries over the management of shared stocks. In future, our role in the annual setting of quotas will change fundamentally—something that the noble Baroness, Lady Jones of Whitchurch, raised—but our overall objective of championing sustainable fisheries and ending wasteful discards will be as strong as ever.

The committee’s report rightly points out that as an independent coastal state under the UN Convention on the Law of the Sea and the UN fish stocks agreement, the UK will be required to manage the living resources in a sustainable way. This will include continued co-operation with the International Council for the Exploration of the Sea to produce the best possible stock assessments and working within regional fisheries management organisations, such as the North East Atlantic Fisheries Commission, and with neighbouring coastal states to ensure a fair share of quotas and proportionate and consistent enforcement measures. We will need to develop and implement a domestic fishing policy to do this. My noble friend Lady Wilcox referred to enforcement. We need to consider a wide range of issues, including how we would police an enlarged fishing zone and how that would be funded.

A number of noble Lords, particularly the noble Viscount, Lord Hanworth, my noble friend Lord Ridley and the noble Baronesses, Lady Scott of Needham Market and Lady Jones of Whitchurch, referred to quota hopping and historic rights. On quota hopping, we are aware that some sectors of the industry raised particular concerns about this. As the committee’s report rightly points out, this practice is possible because of the EU freedom of movement rules rather than the common fisheries policy. Issues of foreign ownership are indeed complex but we are looking at the rules on the economic link as part of the development of our future fisheries management arrangements.

The common fisheries policy has set the framework for managing fisheries since we joined the EU. Our exit will require the establishment of a sustainable fisheries management regime. Any UK regime we put in place will need to be underpinned by a legal framework. We are currently looking at the different options for doing this, and I assure your Lordships that we will consult on our plans when they have been further developed. We are working closely with the industry and other stakeholders to understand their priorities for reform. We are also looking closely at different fishing management regimes across the world to support the development of our policies in the UK. The committee heard from Iceland and Norway as part of the inquiry. We are keen to learn the lessons from these and other coastal states.

As a number of noble Lords highlighted in the debate, fisheries is a devolved matter which is important to all parts of the United Kingdom. My noble friends Lady Bloomfield, the Duke of Montrose and Lord Selkirk mentioned this, the latter two in particular in relation to Scotland, but I am very much aware of the interest in Northern Ireland as well. The noble Lord, Lord Trees, also mentioned the diversity within our islands: the different characteristics of fleets in Scotland, England, Wales and Northern Ireland reflecting the rich variety and abundance of species around different parts of our coast. Obviously, we must work—and are working—as closely as we have always done with our colleagues in the devolved Administrations and Crown dependencies as we develop our positions, and will ensure that their views are fully taken into account as negotiations move forward.

The committee rightly notes that even after we leave the EU, co-operation with it and other coastal states will remain of upmost importance. I hope that that will reassure the noble Baroness, Lady Jones of Whitchurch. For instance, we will remain a signatory to the UN Convention on the Law of the Sea. This makes clear that coastal states control fishing within their territorial waters and EEZ but also includes obligations to co-operate with other countries to manage shared fish stocks. For instance, I am aware—the noble Lord, Lord Teverson, mentioned this—that some EU member state vessels currently enjoy historic access rights to fish in some parts of the UK’s inshore waters under the 1964 London convention. The Government are also considering this issue very carefully and will seek to resolve it as soon as possible.

Whatever our approach on access to UK waters, we recognise that most of our commercial fish stocks are shared between UK waters and those of other EU and European coastal states. We will continue to co-operate with all parties when we leave the EU to ensure that our stocks are managed sustainably and that decisions are science-based.

As the committee’s report rightly indicates, the setting of total allowable catches in line with maximum sustainable yield is an important tool for ensuring sustainable fisheries. We have always pushed for evidence-based policy which reflects the very latest science, and we will continue to do so on leaving the EU. This was a particular point that the noble Baroness, Lady Sheehan, rightly raised. Sharing quota is also hugely important to prevent overfishing. Under the common fisheries policy, quota is shared using the so-called relative stability mechanism, but this is based on outdated information and has resulted in some perceived unfairness in the allocation of quota. We estimate that other European countries, both EU and third countries, such as Norway, fishing in the UK EEZ account for more than 1 million tonnes of fish compared to in the region of 150,000 tonnes for the UK fleet in EU waters and third-country waters—predominantly Norway again—so there is a significant imbalance. We have commissioned work by experts at Cefas to look at zonal attachment of fish stocks and spawning grounds. This work is not yet complete but will better inform future discussions. My noble friend Lady Wilcox referred to the desirable partnership between scientists and industry. The two are highly interdependent, and we will be working with both to determine how best they can work together under a new management regime.

The committee also pointed out that a key issue in the negotiations will be access to waters. As the noble Viscount, Lord Hanworth, explained, under the UN Convention on the Law of the Sea, coastal states control access by other countries’ fishing vessels to their waters out to 200 nautical miles or, where appropriate, the median line with other countries. This will be the case for the UK when we leave the common fisheries policy and so will form the basis for negotiations on access to waters and share of quota. As recognised in the report, catching statistics suggest that other EU countries benefit considerably more from access to UK waters than we benefit from access to their waters. Our best estimate is that EU vessels caught 784,000 tonnes of fish worth £578 million in revenue in UK waters in 2014. EU vessels have a clear interest in preserving access to UK waters.

The committee noted the significance of trade. The noble Lord, Lord Krebs, specifically mentioned trade. Discussions are ongoing about the kind of trading relationship we want with the EU after we leave. We know how important market access is to the industry, a point which the noble Baroness, Lady Jones of Whitchurch, rightly raised. The catching and processing sectors export around £900 million-worth of fish to EU countries every year. The processing sector imports significant amounts of fish from the EU as raw material. It will therefore be crucial to secure access for imports and exports so that these sectors can continue to operate effectively in the EU marketplace.

I was particularly grateful to the noble Lord, Lord Krebs, for highlighting what a wonderfully nutritious source of food fish is. It was interesting that we had not reflected that this is a wonderful resource for our diet. It is essential that we ensure that it is a sustainable source.

We are committed to securing a balanced deal for British fishermen and processors, and we are already working closely with colleagues across government to taking our vital fishing interests forward. On leaving the EU, a key priority will be to take our own seat at the table in future international negotiations where the EU currently leads. An example is the North East Atlantic Fisheries Commission. The UK fleet benefits from significant pelagic fishing opportunities for species such as mackerel, herring and blue whiting under the coastal states agreements brokered by that commission. Indeed, the western mackerel fishery is the single most important for the UK fleet both by volume and value. In 2015, the UK fleet landed approximately 250,000 tonnes of fish with a value of around £160 million.

We will also be able to negotiate with fellow coastal states. The EU-Norway agreement remains the most important fishery agreement to the UK, with an estimated total annual value to the UK fleet of around £220 million in 2015. The agreement with the Faroe Islands provides additional opportunities to the UK fleet. I assure the Committee that Defra is aware in all these matters of the scale of the challenges and has already taken steps to ensure that suitable resources are in place to meet them. Not only have your Lordships had excellent officials working on this inquiry, but it has been my privilege to work with and see the many officials working on these matters at Defra. We are lucky to have such an outstanding team of officials.

It is very clear that there is a huge level of interest in the future of the UK’s fishing grounds and its industry as we leave the EU. We will continue to engage with all interests and take all views into account as we prepare for exit negotiations and begin to put new management measures in place. As your Lordships’ report rightly highlights, leaving the EU raises a number of complex issues for fisheries. We should be under no illusions that the discussions will be easy, but the negotiations also present great opportunities to set a future direction for sustainable fisheries which support our coastal communities.

I thank the noble Lord, Lord Teverson, and his committee for producing this really very insightful report as we proceed to negotiations. This is the first in a series of reports, and it was a great privilege to study and consider it—and it is very clear from all the remarks that have been made that it has been an outstanding committee, drawing together the expertise and knowledge which, I have to say, has always struck me as being of the essence of your Lordships’ House. The report flags up many crucial issues, such as the clear importance of working with international partners and, as I have said and many noble Lords have said also, the absolute imperative to manage our fish stocks sustainably. The sustainable management of fish stocks is the most crucial part that we need to reflect on. After all, if we do not look after our fish stocks, how will our fishing industry do all the things that we want it to do and provide that extraordinary resource of food? We have a responsibility to get this right and international commitments to maintain a healthy marine environment, which we will honour.

I can understand your Lordships wanting to know more—I probably would like to know more—but in answer to the point made by the noble Baroness, Lady Jones of Whitchurch, on arrangements, we are about to start negotiations, and it would be wrong of me or the rest of the Government to set out unilateral positions in advance, including what transitional measures might be. But I well understand your Lordships’ consuming interest in this. Over the coming months we will be devoting all our energies to securing the future of a vibrant UK industry and managing the stocks of fish in our waters. It is a complex matter, and this report has been of enormous value, as we work for a successful outcome—not only domestically, but internationally too.