Fisheries Bill [HL]

Lord Hain Excerpts

Report stage & Report stage (Hansard): House of Lords & Report: 1st sitting & Report: 1st sitting: House of Lords
Monday 22nd June 2020 Lords Chamber

[Lord Randall of Uxbridge (Con) [V]]

My Lords, I have a great deal of sympathy with the concept of the amendment from the noble Lord, Lord Teverson. It is right that we discuss this. However, the more I look at it, the more complicated I feel even this new version will be. It will be very important to hear what my noble friend the Minister says on this. Of course, we feel that it is the nation—I take the point that four nations comprise the United Kingdom and, knowing that some of them are a little more territorial than others at the moment, they might start claiming the fish stocks as they move across—and that the concept is absolutely right, but I am waiting to see what my noble friend says on this before I make up my mind on whether or not to support this amendment.

[Lord Hain (Lab) [V]]

My Lords, I speaking to Amendment 1, I will speak also to Amendments 4 to 6. What concerns me about all these is that if the UK and the EU fail to reach a deal by the end of the year, they will be bound by international law; namely, the United Nations Convention on the Law of the Sea—UNCLOS—which requires co-operation and efforts to agree rules on access to waters, as well as setting catch limits and standards on conservation and management of marine resources.

In the bizarre world of Brexit, the fishing sector—which represents a fraction of 1% of the UK economy—may be the issue that determines whether the current trade negotiations with the EU succeed or fail. Escape from the common fisheries policy was touted by the Brexiteers during the campaign as a great prize to be won, but this sector is heavily dependent on easy access to EU markets, whereas British consumers prefer to eat fish imported from Europe.

I suggest that the future of UK fishing should be determined not by this vacuous Bill or by Amendments 1, 4, 5 and 6, but by a sensible and detailed negotiation with the EU in the current trade talks. At present, regrettably, there is little sign of this happening, and there is now a danger that this issue will prove to be the rock on which a potential deal founders.

As everybody in this debate will be aware, the UK fishing industry, including processing, is heavily concentrated in coastal communities of the nations and regions, which rightly deserve protection in view of their high levels of deprivation and low levels of income and education. However, these communities are heavily reliant on easy access to EU markets. About two-thirds of fish caught by British fishers is sold to the EU in frictionless overnight trade. Most Welsh fishing boats specialise in shellfish, with 90% of their catch currently exported to the EU; I am speaking from my home in Wales at the moment. Meanwhile, UK consumers prefer fish imported from Europe, so our fish processing industry is also heavily reliant on imports from the EU.

After years of one-sided propaganda about “our fish” and claims in the tabloids that a single British fishing industry will benefit from reclaiming the proportion of fish caught by EU boats in UK waters—probably around 60% by weight and 40% by value—a more complex picture now emerges, as this catch is mostly fish for which there is little demand in the UK. There are also large British boats that depend on EU-agreed quotas for their access to Norwegian waters.

In April 2019 the biggest whitefish trawler in the UK fleet sailed up the Thames to highlight the threats facing the fishing industry if Brexit negotiations end in no deal. This is because in that event there would be no automatic access for British boats to these key waters. The jobs of hundreds of fishermen and many hundreds more in fish processing in north-east England will be at risk unless a deal is reached whereby UK vessels are able to continue in such waters that have long been open to UK fleets.

Unsurprisingly, protecting their own vulnerable coastal communities, and ensuring that fishing rights that have existed for hundreds of years do not die, is also a priority for a number of coastal EU member states, such as Ireland, Belgium, Denmark, the Netherlands and France. This became evident earlier this month when EU Fisheries Ministers were reported to have rejected Michel Barnier’s proposals for compromise and instructed him to hold firm to his red lines. Just as the Conservatives may be wary of being seen as having betrayed Scottish fishers—as they are worried about the Scottish Parliament elections next year—President Macron of France, for example, will have in mind that he faces an election in 2022.

Incredibly, our dogmatist Government—I acquit the Minister of this charge, because I think he is doing an honest job—seem willing even to sacrifice the chance of a beneficial deal for the UK financial services industry to save UK waters for the British fishing industry. The financial services sector accounted for 7% of UK GDP in 2018, employing an estimated 2 million people. In any event, the UK fishing industry is likely to suffer, rather than prosper, if there are EU-UK cod wars, as, among other things, there will be a danger to sustainability of stocks through overfishing. It would therefore be a spectacular own goal if the UK refused a deal relating to finance as the price of not reaching an agreement on fishing.

What might constitute a reasonable deal? Under the UN Convention on the Law of the Sea, outside the common fisheries policy the UK is still legally obliged to consider the historical fishing rights of its neighbours, which suggests that some continued access to UK waters for fishers across the channel would be a reasonable expectation. As a quid pro quo, and irrespective of Brexit, as a result of fish migration there is probably a case for review of some UK quotas for mackerel, herring, cod and hake, but that does not need to be at a scale that destroys the livelihoods of hundreds of EU fishers.

However, a no-deal Brexit would destroy the significant parts of the UK industry that are dependent on frictionless overnight trade in fish, impact fish processing—which depends on access to EU imports—and cause loss of access to waters off non-EU states for large UK boats that currently benefit from EU access. I am really not sure how Amendments 1, 4, 5 and 6 help deal with that predicament.

[Baroness McIntosh of Pickering (Con) [V]]

My Lords, I was very interested to hear the reasons the noble Lord, Lord Teverson, gave for bringing a slightly amended version of this amendment back on Report. While I am sympathetic to what I think he is trying to achieve, I have great difficulty in finding this amendment appropriate. I fear it looks at the issue from a particularly English perspective, and I hazard a guess that the Scots may take a different view. I was fortunate to receive briefings from both the Scottish fisheries organisation and the Law Society of Scotland, and we must appreciate that the fisheries opportunities in Scotland are immensely important. They represent 58% of the value and 64% of the tonnage of all fish landed by UK vessels, so I am struggling to understand.

I see that we have changed the wording from “marine stocks” to “fish”, probably in recognition of the fact that, in Scotland, there are many other uses of the exclusive economic zone. But the argument remains: the citizens of the four nations, and in particular those of Scotland, would argue that they have a right to a lion’s share of the fish.

Proposed new subsection (2) goes on to talk about quotas. I have tabled an amendment to Clause 48, which we will come to much later, when I will develop my argument on quotas more fully. I wait with great interest to hear what my noble friend the Minister has to say on this matter, but I am not entirely convinced that the law as it currently stands does not encompass what the noble Lord, Lord Teverson, is trying to achieve. If noble Lords will forgive the pun, I believe that this amendment will, if anything, rather muddy the waters and not take the arguments any further forward.

Fisheries Bill [HL]

Lord Hain Excerpts

Report stage & Report: 2nd sitting (Hansard) & Report: 2nd sitting (Hansard): House of Lords
Wednesday 24th June 2020 Lords Chamber

[Lord Naseby [V]]

My Lords, for better or worse, I read economics at Cambridge. I remember the lectures on competition policy—I looked them up prior to this debate.

It seems that we are lacking in evidence at the moment. Presumably, we need to establish the capacity of the current under-10-metre fleet to take up the extra quotas that will be available. Sitting here, I do not know what proportion of the new quotas that will come to UK fishing can be met by the current under-10-metre fishing fleet; perhaps the Minister can tell us. That is important, really. People cast aside the idea of super-efficient shipping, but at any level, you must have a viable shipping and fishing industry. It does not matter whether it is under 10 metres or over 10 metres. The last thing that any of us would want to see—perhaps that is a little too sweeping but I do not think that many of us would want to see it—is a situation where we have to subsidise 10-metre fishing boats from general taxation.

What ought to happen is that there should be an opportunity for new entrants and perhaps we should give priority to under-10-metre fishing boats. However, I want to see them pitch for the business and tell those who are to adjudicate why they are going into the industry, what they think they can bring to the industry and whether they are able to fish successfully. We do not want a quasi-monopoly without looking at the economics of the thing. I hate the word subsidy. One of the great things that we have gotten rid of in this country is subsidising parts of British industry.

For me, there is an opportunity for Brexit, obviously. Perhaps a proportion of the new quotas should go to the under-10-metre new entrants, but whoever comes forward must make a pitch to the authorities as to why and how they will succeed. At the moment, I do not think that that needs to be written in hard wording after Clause 25, but I will listen with great interest to what my noble friend on the Front Bench says on this amendment.

[Lord Hain (Lab) [V]]

My Lords, this is an excellent amendment, focusing as it does on the need for fair quotas for smaller vessels of under 10 metres.

In England and Wales, and in smaller communities along the west coast of Scotland, fishing is dominated by the shellfish sector. This is led by smaller vessels, which still constitute 80% of the UK fleet in number and often use traditional methods, earning low incomes. These boats are also particularly important for remote coastal communities with limited employment opportunities. There is no doubt that, because of Brexit, media coverage of the UK’s fishing industry has increased. However, this may have given undue prominence to the views of representatives of larger fishing enterprises, such as those in north-east Scotland, at the expense of representatives of smaller vessels.

This amendment therefore deserves our support in relation to the need for future allocation of quotas by the UK Government to include smaller vessels. However, the fact is that such fishers will not have a future at all if there is a no-deal Brexit because they will lose access to the EU markets on which they depend. For example, most Welsh fishing boats specialise in shellfish, with 90% of their catch currently exported to the EU in overnight frictionless trade. In addition, as most fish consumed in the UK is imported, this trade within the single market is also vital for our fish processing industry. Even some large British boats depend for access to Norwegian waters on EU-agreed quotas, which will no longer apply in the event of a no-deal Brexit.

Within the UK industry, therefore, there are many competing interests between England and Scotland, deep-sea and inshore, industrial and small-scale boats and fishermen and fish processing. Without doubt, the balance of advantage for the industry as a whole lies in an amicable agreement with the EU, which will guarantee the continuation of frictionless trade. The Brexiteer narrative encourages us to believe that it was the EU that first allowed foreign boats to fish in UK waters. However, the common fisheries policy, established in 1983, enshrined historic fishing rights that went back centuries.

Not surprisingly, EU Governments are legitimately concerned to protect an economically precarious sector whose finances have been hit hard by the pandemic lockdown. It is not just access to UK waters that is important for European Union countries—many rely on the supply of UK fish both for consumption and processing. In 2017, for instance, just under two-thirds of UK mackerel was exported, the vast majority to the EU and more than a third to the Netherlands alone. Of course, this merely serves to illustrate yet again how easy access to these EU markets is key for UK fishers.

Authoritative analysis has shown that the most likely outcome of attempting to close the UK’s sea borders—the last I heard, fish are no respecters of political boundaries—would be higher prices, less choice for consumers and lower earnings for fishers on both sides. Of course, an agreement will involve compromise, including some continued access for EU boats from coastal communities across the channel.