Fisheries Bill [HL]

Lord Teverson Excerpts

Committee stage & Committee: 3rd sitting (Hansard - continued) & Committee: 3rd sitting (Hansard - continued): House of Lords
Monday 9th March 2020 Lords Chamber

Moved by

[Lord Teverson]

81: Clause 17, page 13, line 25, at end insert—
“( ) A licence granted under this section must require that foreign fishing vessels fishing in British waters comply with at least the same minimum technical regulations as British vessels for that same fishery.” Member’s explanatory statement
This amendment ensures that foreign vessels have to comply with the same technical rules as British vessels.

[Lord Teverson (LD)]

My Lords, I also support Amendment 82 in the name of the noble Lord, Lord Grantchester. Before I start, I will go back to the previous group of amendments and say how much I welcome the Minister’s statement on IUU fishing. This is absolutely fundamental to the wider global issues around sustainability of fish stocks, which are under great pressure. Unfortunately, a great deal of illegal fishing still goes on. The UK’s work in this area in the past has been really important. In many ways we have led the EU; let us remember the common fisheries policy. I am glad to hear reaffirmation of that today.

I move on to what I hope is a very easy amendment. It seems important that any foreign vessels allowed to fish in UK waters or our economic zone should have to comply at least with the same technical regulations as our own vessels. I have put that in as an amendment; I assume the Minister will stand up and say, “It’s already happening” or “We’re going to make sure it is”. I certainly hope that is the case with the excellent amendment in the name of the noble Lord, Lord Grantchester, about employment practices and safety standards. Obviously, we are all very aware of the safety issues on fishing vessels—on all vessels, indeed, but particularly in fishing, which is one of the most dangerous activities. I look for confirmation on both of those. I beg to move.

[Lord Grantchester (Lab)]

My Lords, I am grateful to the noble Lord, Lord Teverson, for tabling Amendment 81, and rise to speak to my Amendment 82, which is on the same matter. I hope that is helpful.

The noble Lord’s amendment requires foreign fishing vessels in British waters to comply with the same standards as British vessels. My amendment is very similar, making it clear that as the UK will be granting licences, the licensing authorities in the UK must make sure that all fishing boats, including foreign vessels, comply to UK standards on safety and employment practices.

Equal standards, the level playing field and equivalence have bedevilled all regulations between the UK, the EU and soon others, through all trade negotiations, not least with the USA. In fisheries, as in agriculture, there is clear interest that fair and equal competitive standards must be adhered to across the board. The Committee has recognised the tough and dangerous working conditions in which all UK fishers work; the whole of the UK would want these to be as safe as possible. It is equally important that employment standards and regulations in the UK must not be undermined by any lesser standards that may pertain overseas.

In conversations, officials in the Minister’s department have indicated that the technical side of this issue is dealt with in the Bill. Could the Minister specify its location? I am not sure whether employment law and practices are dealt with specifically, although the Minister may reply they are included in licence conditions. These amendments make sure they are, and that compliance is mandatory for both UK and foreign boats.

Election promises on standards must be upheld in legislation, not merely stating that we are leaving the EU on 31 January and that our future relationship must be decided by 31 December. These standards also need to be put in specific legislation.

[Baroness Bloomfield of Hinton Waldrist (Con)]

I am grateful to noble Lords for this short debate, particularly to the noble Lord, Lord Teverson. He is right to emphasise the need for proper safety regulations for all vessels fishing in our waters.

Amendment 81 seeks to ensure that all vessels, regardless of nationality, follow the same technical conservation measures when operating in UK waters. Schedule 2 to the Bill extends domestic legislation containing technical measures, such as restrictions on the size of velvet crab that can be caught, to foreign vessels. Under the common fisheries policy, this legislation has been able to apply only to British boats, so this change provides for the first time the level playing field between British and foreign vessels sought by the noble Lord, Lord Grantchester. Further, Schedule 3 provides the powers to set conditions on licences and to extend those conditions so that they also apply to foreign vessels. I make it clear that our intent is to ensure that equitable approaches for licence conditions apply to both domestic and foreign boats in the future.

This amendment seeks to mandate additional licensing criteria for foreign vessels. We regard this as unnecessary, as measures to achieve equitable treatment are already provided for by the Bill.

Finally, the amendment does not take into account the devolved competence of the fisheries administrations to set their own licence conditions in their waters, where they do not conflict with delivering what has been agreed internationally.

Amendment 82 seeks to address two very serious issues. As my noble friend the Minister noted in his opening speech at Second Reading, and as we have discussed previously in Committee, fishing remains one of the most dangerous occupations. I regret that too many deaths and injuries still occur in our waters. However, safety at sea—for all vessels, not just fishing boats—falls within the remit of the Maritime and Coastguard Agency—the MCA—which has powers to enforce safety regulation.

Under the Fishing Vessel (Codes of Practice) Regulations 2017, a non-UK fishing vessel must not enter UK waters unless,

“if its registered length is 24 metres or over, it has been certified by its flag State as complying with the requirements of the Torremolinos Protocol”

on the safety of fishing vessels,

“or … if its registered length is less than 24 metres, it has been certified by its flag State as complying with the requirements of that State applying to vessels of that length”.

If a foreign vessel does not comply with these requirements in the future, it will not be granted a licence to fish in UK waters.

The MCA is also working to implement the International Labour Organization’s work in fishing convention into UK law. Its aims are for all fishermen to have decent living and working conditions, regardless of employment status. It entitles all fishermen to written terms and conditions of employment, decent accommodation and food, medical care, regulated working time, regular payment, repatriation, social protection, and health and safety onboard. It also provides minimum standards relating to medical fitness.

Lastly, I note that the noble Lord, Lord Cameron of Dillington, mentioned discards and European law. This will be covered at a later stage.

With this explanation, I hope that the noble Lord, Lord Teverson, will feel able to withdraw his amendment.

[Lord Teverson]

I am very convinced by the Minister. However, coming back to the fact that this is devolved, I must admit that the thought of Scottish waters insisting on it and English waters not doing so rather boggles the mind. But I am very happy to withdraw the amendment, given those assurances.

Amendment 81 withdrawn.

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[Baroness Jones of Whitchurch (Lab)]

My Lords, my proposed new clause seeks to clarify whether we have sufficient resources to patrol British waters and enforce fisheries licences, an issue we did begin to touch on in previous debates.

Apart from the odd skirmish, we have had a settled agreement on the distribution of fishing rights in UK waters and shared waters in recent times. However, leaving the EU and the common fisheries policy will potentially change all that. We do not know the outcome of the trade negotiations with particular regard to fisheries, but there are bound to be winners and losers—and there may well be bad losers.

We very much hope that the settlement works to everyone’s advantage, but that seems unlikely. The truth is that most commentators expect fisheries to be a highly emotive part of the UK-EU negotiations. I am sure that the noble Lord will seek to reassure us otherwise, but it seems unlikely that UK fishers will see a return to the unconstrained access to UK waters that they were promised in the referendum and beyond. The potential for bad feeling and a sense of betrayal could prevail from a number of quarters.

This brings us on to the resources needed to manage these disputes, which is the issue covered by our amendment. The Minister’s helpful letter following Second Reading described how offshore fisheries enforcement in English waters will be primarily delivered by two vessels operated by the MMO. In addition, the Royal Navy is increasing its offshore patrol vessels from four to eight in 2020, but only two of these would regularly be available to support fisheries enforcement. This does not seem sufficient for what could be choppy waters, and it is not clear whether Ministers consider these numbers sufficient or how they intend to deploy this capacity once the UK is an independent coastal state.

Therefore, we are seeking to require a statement setting out whether the UK has sufficient resources to patrol our waters and to enforce the licences. This includes whether we have sufficient vessels and personnel. It should also clarify what training Royal Navy personnel will be given in this specialist, potentially somewhat diplomatic, enforcement requirement. For example, what orders will enforcement boats be given when interacting with those they suspect of breaching licensing arrangements?

Given the PM’s stubbornness on the transition period, everyone is having to work on an accelerated timeline. We need to be confident that the UK is prepared to take up these opportunities to bring the matter to Parliament. Unless the Minister can offer a guarantee of a debate in the weeks and months to come, it seems we will get clarity only by introducing a statutory reporting requirement as set out in this amendment. I beg to move.

[Lord Teverson]

My Lords, I thank the noble Baroness, Lady Jones, for an excellent and important amendment. There is no point doing any of this stuff if we cannot enforce it, and enforcement on the high seas is one of the most difficult tasks that there is in terms of enforcement of laws and regulations, as we well know.

I absolutely take the noble Baroness’s point—I hope the Minister does as well, although I am sure he does—about the sensitivity of this. If negotiations are difficult, potentially we will have quite angry people on the seas from 1 January. It is important that any incident can be dealt with properly and diplomatically. We saw in the Baie de Seine, back in the latter part of 2018, how a dispute on the high seas quickly becomes dangerous and difficult to control—sense came when the two Governments came together afterwards to sort it out. There are all sorts of tensions there.

The question I particularly want to ask the Minister is about something that came up when the Secretary of State was in front of the EU Energy and Environment Sub-Committee last week. One of the officials there with the Secretary of State said that a lot of the money going into enforcement was part of the Brexit process and therefore temporary. I would be interested to hear from the Minister what sort of budget has been put forward for additional enforcement over the time of Brexit and a potential Australian-style deal at the end of this year. What is the ongoing enforcement funding likely to be? There is too much temptation for the Treasury to be generous—realistic, shall we say—with enforcement funding over the Brexit transition period but thereafter ask Defra for huge economies in enforcement as it has done in the past. Assurances from the Minister, or otherwise, would be very useful at this stage.

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[Lord Gardiner of Kimble]

I absolutely understand the point made by the noble Baroness. My assessment is that this is at the right level, and the fact is that the Royal Navy is growing or doubling its vessels. That is why I emphasised the phrase “at least”. There is an agreement between the MMO and the Royal Navy about those two things. I emphasised “at least”; all our efforts will be to ensure that there are no difficulties at sea, which would be in no one’s interests. That is precisely why I explained about the doubling of the number of front-line warranted officers, and why I outlined increasing aerial surveillance and the work of surveillance technologies. All this is upscaling, precisely to accommodate the point made by the noble Baroness, if we are in potentially uncertain times, rather than where we were before. I described the increase in almost every feature of what is available to us at sea, including technology and personnel, to accommodate the possibilities that the noble Baroness outlined. I am basing my judgment on a much more rigorous assessment than me just saying yes to the noble Baroness. It is also why JMOCC is so important, because so much of this is intertwined with those organisations involved in JMOCC. It is terribly important that the MMO and Marine Scotland are part of that because there may be a time when fisheries protection becomes an issue and all this resource across the United Kingdom and the Royal Navy may need to be deployed.

I will say that the answer is yes, but it is not a glib yes. It is because the people who understand these areas have assessed and advised us that we should increase what we have done. That is why I am confident that we are where we should be. However, I emphasise to the noble Lord, Lord Teverson, that it is really important that all these matters are kept under review. That is why I deliberately emphasised that, on this matter, there is strong working with all four fisheries administrations in the United Kingdom interest.

[Lord Teverson]

How long will the temporary financing of extra resources last and when it will end? At that point, there will be a question mark. Will we go back to where we were when, effectively, for many years there was no real access to the Royal Navy at all because it was off doing other things? This is a really important point to clarify.

[Lord Gardiner of Kimble]

I apologise to the noble Lord and the noble Baroness that I have no further detail other than to say that I am confident. We have upscaled in the way that we have—constructing vessels and all we are doing is not like turning on and off a tap—and are increasing the number of Royal Navy vessels for this sort of demand. If we were to need additional support because something happened, I am confident that all the resources would be at our disposal.

I do not think we need to discuss a theoretical point, but if in 10, five or three years’ time all is well and we have good negotiations and agreements, the most important thing—the responsibility that all Governments should have—is the safety of UK interests and the safety of people at sea. Obviously, we will need to have all that I have outlined with the assessment that the MMO is constantly reviewing. I imagine that, down the line, there may be an assessment that there is not much of an issue and we are working towards having that capability, but that would be for the future. For now and for the foreseeable future, however, it is precisely why the Navy is upscaling the number of vessels and why we have done what we have by increasing the number on the front line.

I have been handed a note that says that all matters for future enforcement funding will be the subject of the spending review, but we will put in a robust bid, as befits our status as an independent coastal state. I hope I have not offended the Treasury by saying that.

I apologise. I should have addressed that, but in the meantime, I hope I have outlined to the noble Baroness that this is obviously an area of continuing interest and continuing responsibility.

[Lord Teverson]

Perhaps the Minister can write to me with the figures for the current enforcement budget for England and the amount of Brexit special funding from the Treasury. They are discrete amounts and I would be interested to know what they are.

[Lord Gardiner of Kimble]

Yes, I will endeavour to ensure that a letter is directed to the noble Lord and the noble Baroness and put in the Library.

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[Baroness Jones of Whitchurch]

My Lords, this amendment addresses a running concern in the Bill that Parliament will be precluded from knowing the details of the trade negotiations as they affect fishing opportunities until it is too late to comment or influence the outcome. In his letter to Peers, the Minister referred to future treaties, including a framework on fisheries with the EU needing to be laid before Parliament before it is ratified. We would argue that this is too late for Parliament to have any real influence. As we have previously said, this is a particularly sensitive issue given the promises made to UK fishers, and to the electorate, about reclaiming our share of EU quota as we leave the EU at the end of the year.

The Minister has previously stated that this Bill is intended to be negotiation-neutral, but the reality is that we cannot debate our transition to being an independent coastal state without considering the prospects for a future UK-EU deal on access to our fishing waters. If this Bill is not the right vehicle for parliamentary scrutiny of future arrangements—it appears from what the Minister has said that it is not—then many of us will feel frustrated. It is important to clarify what the alternative is. New subsection (1)(b) proposed in the amendment includes a specific reference to retaining a share of EU quota for distant-waters fishing outside UK limits. This is an aspect of the fisheries debate which has not received as much attention, but it is important for parts of the UK fleet.

We appreciate that the UK position is that we want to reach an agreement with the EU and vice versa. However, if that does not prove possible, the default position is that the UK will unilaterally repatriate 100% of quota for UK waters next year, while potentially cutting off access to EU waters immediately for those who fish those distant waters. This could have a huge implication for the UK fleet, much of which relies on continued access to those distant waters. We do not know whether the Government intend to do this or whether they would negotiate some other form of transitory agreement with the EU. It would be helpful if the Minister could clarify the Government’s thinking on this issue.

Meanwhile, I hope that noble Lords will support the amendment. It seeks to give a clearer role for parliamentary scrutiny over these decisions, which could have profound implications for the future of our fleet. I beg to move.

[Lord Teverson]

My Lords, I am very pleased to support the amendment. If there has been one mistake made since the referendum—apart from the result of the referendum which, of course, is indisputable and I entirely accept—it is that the Government have attempted to exclude Parliament from so much. That has been part of the reason why we have had the three years of turmoil that we have had. It is therefore important that the Government keep Parliament involved or up to date on how these negotiations are working; though clearly Parliament is not looking for the final resolution, those negotiations have to take place in that context.

Last week, I was concerned that when the Secretary of State was in front of the EU sub-committee, he stated that the Scottish Administration—or a Scottish Minister—would not be allowed in the room when the negotiations took place. He was very specific about it: I questioned him and checked what he had said. He said it was because this was not a devolved matter but a matter for the United Kingdom. It was slightly ironic, given the discussions we have had on this Bill. Will the Government reconsider that position, because the Scottish fishing industry is fundamental to the UK fishing industry? This is an area on which the Government ought to change their view. I very much support the amendment and the spirit in which it was introduced.

[Lord Gardiner of Kimble]

My Lords, I am also grateful to the noble Baroness for her amendment. The UK Government remain committed to keeping Parliament and the public informed of the progress of negotiations. On 27 February, the Government published The Future Relationship with the EU: The UK’s Approach to Negotiations. This makes clear that the UK and the EU have committed to use best endeavours to agree a new fisheries agreement by 1 July 2020. In line with the practice of other independent coastal states, the agreement would provide a framework for annual negotiations on access and quota and set out a mechanism for co-operation on fisheries matters where we share an interest with the EU. The Prime Minister has already committed to providing further details as the negotiating process develops. Both Houses will also have access to their usual arrangements for scrutinising the actions of the Government—and I am in no doubt, looking at various noble Lords here tonight, that your Lordships will take full advantage of these.

As your Lordships will be aware, negotiations for a fisheries framework agreement and our future relationship with the EU started last week. It is important to note that, as the Chancellor of the Duchy of Lancaster noted in the other place, the UK Government hope that by June, the broad outline of an agreement will be clear and capable of being rapidly finalised by September. Subsection (1)(b) in the amendment itself refers to distant waters. It is not clear whether “distant waters” was intended to have a specific meaning, but we have taken it to mean waters for which the UK is not the relevant coastal state and which are outside EU waters. Therefore, I make it clear that we will also seek to negotiate fisheries framework agreements with key partners in other coastal states, such as Norway. Again, these agreements will pave the way for annual negotiations on access and fishing opportunities in third-country waters, which I know will be of particular interest to our distant-waters fleet and others whose businesses rely on accessing fishing opportunities in those waters.

As with negotiations with the EU, the Government will keep Parliament informed of the progress of these negotiations. Where we have fisheries or conservation interests in international waters, the UK will join relevant regional fisheries management organisations in its own right and, in so doing, we will continue to collaborate with other coastal states where we have shared interests in fisheries in international waters.

In all these negotiations, leaving the EU creates an opportunity for the UK to secure a fairer sharer of quota, or fishing opportunities, for our own fleets. I assure noble Lords that that is what this Government are determined to achieve but, with all these negotiations, the UK Government must retain flexibility—we may not agree but I think the noble Lord, Lord Teverson, was going along those lines—with regard to the timing and content of our updates to Parliament, in order not to undermine our positions in live and ongoing negotiations. We believe that the amendment would remove this flexibility, obliging the Government to publish a statement at a particular time, potentially while negotiations are still ongoing. This risks undermining our negotiating positions entirely.

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[Lord Gardiner of Kimble]

My Lords, I am grateful to the noble Lord, Lord Grantchester, for his amendment, and to the noble Baroness who moved it. Although I recognise that the aim of the amendment is to make it compulsory for the Secretary of State to determine annual fishing opportunities, it would oblige the Secretary of State to determine all fishing opportunities on an annual basis. Some stocks are determined on different timescales, and for some non-quota species, there is no specific determination. I assure noble Lords that the original provisions are sufficient to ensure that the Secretary of State fulfils the function of determining UK fishing opportunities, through Clause 23(1) and (2), and that Parliament is able to scrutinise these determinations through Clause 24(2)(b).

Further, for non-quota stocks—for which we do not currently have the science to make an accurate determination—the fisheries management plans, as outlined in the joint fisheries statement, will set out policies for getting stocks to their maximum sustainable yield. For such stocks, this will necessarily include our plans for improving the scientific data and evidence that will underpin the future management of our non- quota fisheries. I say to the noble Lord, Lord Teverson, that this is why he should be more positive about the fisheries management plans, bearing in mind the point that the noble Baroness, Lady Young of Old Scone, made earlier. I think this is an opportunity, particularly where the science is not the strongest, and we need to improve it—this is where we can get down to some of the pragmatic ways in which we can improve all stocks.

[Lord Teverson]

I am sure that there is the potential to do that, and I look forward to the meeting; I am very pleased that the Minister is going to bring this meeting together, and maybe we will find a way forward from there. I do not in any way write them off, but when they are purely UK territorial waters, that is where I have a problem. So I endorse the Minister’s comment.

[Lord Gardiner of Kimble]

There was, shall we say, licence on my part there because I thought it might excite intervention. Anyway, I look forward very much to the discussions. Anyone who wishes to come is welcome; I will send a wide invitation and get scientists there so that we can get to the heart of some of these matters.

On Amendment 92A, the power set out in the clause would be used to set the UK’s total allowable catch, or the absolute amount the UK is able to fish, reflecting the outcome of the negotiations with the EU and other coastal states. It could also be used to ensure our compliance with Article 61 of the United Nations Convention on the Law of the Sea, or UNCLOS, which provides that catch levels should be set at sustainable levels, taking into account the best scientific evidence available. As an independent coastal state, we are committed to working closely with our partners to manage shared stocks sustainably and to share fishing opportunities on a fair and scientific basis.

It is imperative that we meet our international obligations, such as those I have described under UNCLOS, as we strive to set a gold standard for sustainable fishing around the world. I say to my noble friend that sustainability, as set out in the objectives of the Bill, is a key driver for our future plans for the industry and our negotiations. We have been clear that, in entering into negotiations and making determinations, we will be informed by independent scientific advice from ICES, the International Council for the Exploration of the Sea, CEFAS, the Centre for Environment, Fisheries and Aquaculture Science, and its equivalents in the devolved Administrations. In conjunction with our commitments through the scientific evidence objective, this provides the assurance that determinations will be fully informed by the best available science.

The existing clause also ensures that we respect the devolution settlements. The Secretary of State will make determinations on UK fisheries opportunities only where this relates to an internationally negotiated outcome, which is a reserved competence. Removing this subsection would give the Secretary of State powers to set fishing opportunities directly for each devolved Administration, which would contravene the devolution settlements. This clause provides the necessary reassurance to the devolved Administrations that the Secretary of State would not seek to overstep on areas of devolved competence.

Our fisheries White Paper made it clear that for existing quota we will honour the allocation and distribution through the FQA units. However, we have been clear that we will explore alternative methods for allocating and distributing any additional quota negotiated both at UK level and within England.

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[Lord Gardiner of Kimble]

Again, the problem with the amendment stating “must” is that it concerns the determination of all fishing opportunities. If it says “must”, the amendment becomes a requirement that would involve stocks determined on different timescales. There are also some non-quota species where there is no specific determination. The word “may” allows the determination of the annual fishing opportunities. The problem with the amendment making it “must” is that it brings in these non-quota species. The issue I have sought to put across is that making the determination compulsory embraces all stocks—because it “must”. Obviously, there will be annual fishing opportunities for all those that involve quotas and so forth, and we will be having annual negotiations and arrangements. It is not that the Secretary of State will suddenly say, “I don’t think we’ll do this, this year”; it is that making it “must” brings in these stocks determined on a different timescale and non-quota species. That is the problem as I understand it: the amendment has that legal interpretation.

The original provisions ensure that the Secretary of State fulfils the function of determining UK fishing opportunities through Clause 23(1). Making it a “must” brings into scope stocks that would not be subject to the determination of annual fishing opportunities. That is as I understand it. If it is any different, perhaps I can discuss with the noble Baroness, but that is, in our view, the problem with the interpretation of that amendment.

[Lord Teverson]

I strongly support this amendment and, if that is the case, clearly the Government should just bring forth an amendment themselves. It should say that for quota species it should be a “must”. That is how we solve it. Clearly there must be that assessment or process every year for quota species. It is obvious and clear. The Government need to bring forward their own amendment to make sure that it includes only quota species.

[Lord Gardiner of Kimble]

Again, the provision talks about “for a calendar year”, so these are annual fishing opportunities. “Annual” means every year; it does not mean that by saying “may”, the Secretary of State can decide not to bother one year. That is not the case—rather, it is about the fixing of annual fishing opportunities.

As I say, I have been informed that the original provisions are sufficient to ensure that the Secretary of State fulfils the functions of determining UK fishing opportunities, but if I have anything further that will assist noble Lords, I will of course communicate it. I think that the interpretation of this power to determine serves the correct purpose, but if there is a pressing need to have discussions with noble Lords on the matter outside the Committee, I am happy to do so. However, as I say, I have been advised that there is no problem with it.

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Moved by

[Lord Teverson]

94: Clause 23, page 15, line 27, at end insert—
“( ) Any rise in the total quantity of an annual quota in England shall be disproportionately allocated to the under-10-metre fleet.”Member’s explanatory statement
This amendment aims to gradually increase the viability of smaller fishing vessels and protect coastal communities.

[Lord Teverson]

My Lords, I come to two amendments; I cannot imagine there is any way the Government could disagree with them, but we will see how we do. They are entirely in line with government policy, as I understand it. In fact, I have given credit before to the Secretary of State. When he was Minister, he managed a redistribution to the under-10-metre fleet, despite the resistance of the English legal system, for which I give him credit.

Amendments 94 and 106, to which I will speak as well, state that we are in a situation in which it is the Government’s intention, through their negotiations later this year, that we will move to a system of zonal attachment, or whatever you want to call it. The outcome is that we should have more entitlement and shed the straitjacket of relative stability, and there should be more fishing opportunities for the UK fleet. That is the bottom line. Amendment 94, which I am perfectly happy to write in future as an English as opposed to a UK amendment, says that as we increase those harvesting opportunities for the UK fleet, the local fishing fleet’s proportion, which is estimated at between 2% and 5% of quota, should increase. Those are the fishers in this industry under greatest pressure. They are part of local communities, and the ones the fisheries campaign around Brexit focused on, if we are honest. Let us deliver on that and make a commitment that the redistribution strongly biases the under-10-metre fleet.

In the agriculture and farming sector, we often concentrate on and hear the question: how do we make sure we get new entrants into the agricultural industry? Yet, we talk about this only infrequently in fisheries, where the barriers are equally high. Here is another opportunity, through the increased harvesting opportunities which the UK—or English—fleet will have, to have a scheme for new entrants and younger people. This industry, on the whole, has a fairly aged profile and not a lot of new entrants. Here is an opportunity for new entrepreneurs and people with new ideas to come into the industry and start to thrive.

Having said that, as the amendment states, if people move out of the industry or are not able to succeed for whatever reason, their quota cannot be sold on. It has to come back to the authorities or to the state. These propositions make the Bill almost mildly exciting for the industry. I hope the Minister can grab that opportunity.

I also support, in general, Amendment 105 in the name of the noble Baroness, Lady Worthington. As in my amendment, with which we started Committee, this all comes down to who owns the stocks. The noble Baroness introduces the interesting concept of those stocks being held in trust. I am concerned that we are stuck in a straitjacket at the moment in the way quota is distributed. The Minister said earlier, on one amendment, that FQAs are staying as they are, so we will still be in a situation where almost half—40%—of English quota is effectively owned by foreign vessels. I put this question to the Minister: even if we increase our quota, largely get rid of relative stability—or at least move towards that—and increase UK catch opportunities, and I am a Danish, Dutch or French corporate that owns fishing rights in the UK, what will I do? Am I going to be excluded from UK fisheries? No, I will just use my deep pockets to buy more UK quota; rather than having my Dutch, Danish or Spanish-flagged vessels fishing extra UK quota, I will have a British flag on my boats. So the status quo is maintained.

It comes down to this: even if we have the additional catch limits, I see no reason why there will be any difference in the structure of the industry; it will be completely open to foreign individuals to buy British companies that own British quota. What is going to change? Companies on the other side of the Channel or the North Sea, or in Ireland, have the deep pockets to do this. Moving slightly away from my amendments, I bring the Minister’s attention to who owns the quotas and fish stocks, and the possibility of bringing them into public trust. At the moment, FQAs are effectively owned by well-off and profitable companies, individuals or families. They pay no rent or income whatever to the UK, the taxpayer or British citizens. I am very interested in the Minister’s response to the amendment of the noble Baroness, Lady Worthington.

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[Baroness Bloomfield of Hinton Waldrist]

I shall write to the noble Baroness on that detailed point.

On Amendment 106, which addresses new entrants, we are aware of concerns about shortages in crew and an ageing demographic within the fishing industry. The average age of fishers in the UK is 42. To address this in England, we are working closely with the Seafood Industry Leadership Group, whose work has highlighted the importance to a thriving seafood industry of training, skills development and workforce retention. I take on board the suggestion of the noble Lord, Lord Cameron, on apprenticeship training, which is very much in line with our own intentions. A number of fishing organisations have tried to develop schemes for new entrants, and apprenticeships. They have had varying degrees of success and many lessons have been learned. It is not easy, but it does not mean that fishing organisations should not continue to try. We must also ensure that there are fish for new entrants to catch, which means balancing the environmental, social and economic objectives.

We are also looking at examples from around the world, such as the Faroes, Scandinavia, Jersey and Guernsey, to identify options to support the UK fleet now and to ensure that it has the labour force necessary for its long-term future. To ensure certainty and stability for the UK fishing industry, after discussions with industry and, as stated in the fisheries White Paper, we took the decision not to overhaul the current system of allocation for existing quota. Quota for new entrants could, therefore, be set aside only from increased fishing opportunities gained through negotiations. Part of the work that we are undertaking with industry and other stakeholders this year will include consideration of the option of using additional quota to support new entrants. We have the powers to do this.

Ensuring that fishers can fish sustainably will be an important aspect of the considerations for allocations. The amendment does not refer to any sustainability criteria and could therefore ultimately restrict our ability to set a gold standard for sustainable fishing. I have been advised that there are, regretfully, a number of other practical issues with the amendment as drafted. It is not clear which quota this allocation should be made from: the UK, English, existing or new. Further, it is not clear for how long a new entrant could keep the quota. If it is for the entire career of the fisherman, provided they continue to fish it, the requirement to always have a proportion available for new entrants could mean taking quota from existing fishermen. With this explanation, I hope that the noble Lord will feel able to withdraw his amendment.

[Lord Teverson]

I thank the Minister for those 101 reasons why it is difficult. My question is: do the Government want a new entrants scheme?

[Baroness Bloomfield of Hinton Waldrist]

I think that I just said that we do, and how we could do it with additional quota.

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[Baroness Bloomfield of Hinton Waldrist]

I note the noble Baroness’s disappointment, but that is the Government’s position and we have no plans.

[Lord Teverson]

My Lords, I thank the Minister for going through all that, but another term for stability and certainty is fossilisation. That is what we are being told. The whole Bill is in many ways on that theme, I am afraid. One fundamental question that the Minister did not answer is: what is to stop all the new fishing opportunities landing up exactly where they are at the moment, particularly with foreign-owned companies? I do not understand how anything can stop all our new fishing opportunities being taken by existing players, because they have the money, influence and experience. What stops everything that is new being exactly the same, replicated? I do not understand that.

[Baroness Bloomfield of Hinton Waldrist]

I am assured that the economic benefit objective will have some bearing on that.

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[Lord Teverson]

Anyway, I look forward to the new entrants scheme. That is good. I misunderstood the Minister, who seemed to suggest it was possible only if it was sustainable. We have a sustainability objective so it obviously cannot happen unless it is, but the whole point of Brexit was to have more fishing opportunities. I particularly thank the noble Baronesses, Lady Worthington and Lady Jones of Moulsecoomb, for really bringing into focus the whole area of allocation of these incredibly valuable rights. We are talking about tens of millions of pounds—more than that, I am sure. I had not anticipated that this was an area that we would have to return to, but we absolutely will have to.

I understand the point about needing some degree of understanding for investment into the future. That is a dangerous argument, because it is exactly what the European Union will argue in terms of all the people from across the water who have invested in fishing in our waters, so we should expect that to be echoed by the other side in negotiations with us over fisheries agreements in the future. As I said, I look forward to the new entrants scheme and fully accept the Government’s wish to have a better allocation for the under-10-metre fleet. I fully accept the criticism of the Minister that my amendments are relatively minor in comparison with the grand plan. I am with the grand plan as well, but at this moment, I beg leave to withdraw my amendment.

Amendment 94 withdrawn.

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[Baroness Jones of Whitchurch]

My Lords, Amendment 107 in my name follows on from our previous debate about the management of, and criteria used for, allocating future fishing rights, which could be the subject of competitive tender or auction. Without repeating the whole debate, the Minister said in winding up on the previous amendment that consideration is being given to the new quota allocation. She also told the noble Lord, Lord Teverson, that there was support for a new entrants’ scheme. If that is the case, my challenge back to the Government is: why can we not include the principles of that in the Bill? If the Bill is for anything, it should be for those sorts of future planning activities. I hope we can find a form of wording that incorporates that in the Bill.

We have addressed our concerns about how any future auctions will be run, and what the consequences would be if they were driven solely by the highest bidder. Our amendment would require regulations made to deliver the auctions to reserve a proportion of the fishing opportunities for the under-10-metre boats. The previous debate sought new opportunities for new entrants to the sector. This amendment more specifically focuses on the smaller-sized fleet.

We have already explained the importance of the smaller boats to the economic and environmental sustainability of the sector. They generally use lower-impact gear and provide more jobs per tonne, but their current share of the quota is limited to around 6% of the total. Yet in the UK, the under-10-metre boats represent more than 70% of English fishing boats and 65% of direct employment, so we should be using this opportunity to boost their numbers and their share of the sector.

This is a central argument in our bid to revive the declining and impoverished coastal communities, and for that to work we need a spread of smaller boats accessing the smaller harbours and ports. This intervention is particularly necessary as the small-boat sector is shrinking every year. Between 2007 and 2017, the number of fishers on UK-registered vessels decreased by 10%. In his letter to noble Lords of 10 February, the Minister explained that the Government were indeed keen to support the under-10-metre vessels. He explained that in England they were already taking steps to ensure that they received a higher share of the reserve quota and that further consideration was taking place on the distribution for this year. That is all fine as far as it goes, but it does not represent the step change necessary to really revive the under-10-metre sector.

Nevertheless, given the Minister’s previous comments, I hope he will support this very modest amendment. After all, all it does is to require the auction regulations to address the issue of reserving a proportion of the auctioned fishing opportunities for the under-10-metre fleet, so I hope he can support it.

Amendments 108 and 109 address our wider concerns about the competitive tendering and auction processes. They rightly raise whether we should take into account the bidder’s impact on the marine environment when allocating new quotas. As we have debated before, these amendments have considerable merit and are in line with our earlier arguments and I hope the Minister will support them.

Amendment 110 in the name of the noble Baroness, Lady Worthington, proposes a new Clause 27. Again, she has taken on the Government’s drafting to a considerable extent. I am grateful for her efforts. She specifies in detail what she feels that the ownership and distribution rights of English fisheries should be. These include quite detailed proposals, but they also keep the competitive tendering and auction principles with which we have some concerns. I look forward to hearing the noble Baroness’s explanations for these proposals. It may well be that we will be persuaded at that point. In the meantime, I beg to move Amendment 107.

[Lord Teverson]

I thank the noble Baroness, Lady Jones of Whitchurch, for putting steel in my backbone again and demanding that this is in the Bill—whereas earlier I sort of retreated a bit.

I am interested in hearing from the Minister how these auction rights will be used. Will they be for all quota or the new quota? I would like to use this opportunity to understand the Government’s specific intention for using these rights in the Bill. How will they do it and when? Will it apply to new quota or all quota? I am unclear, because it all starts with the Secretary of State in May. I would be very interested in understanding what the Government intend to do in the near term.

[Baroness Worthington]

My Lords, I rise to speak to Amendment 110 in my name. I have, perhaps overconfidently, attempted to redraft Clause 27 to set out the mechanism through which the rights to fish held on public trust are reallocated in the context of the English fishery, which is unequivocally the responsibility of the Secretary of State, since we are not talking here about anything that affects the devolved Administrations.

We set out this redrafted clause to try to mesh together the various elements that the Bill is founded on. I strongly believe that this should all be on the basis that this is a right held on trust and conferred to the private sector via the Secretary of State, and that these powers are held by the Secretary of State and then conferred. We see that there needs to be some allocation process by which those rights are transferred. I would like to hear—yet again, rather depressingly—whether this power being taken under Clause 27 applies to all quota or simply quota that may or may not be released as a result of some kind of negotiation with Europe. It feels like a real missed opportunity if it is the latter. Nothing in the Bill should prevent our applying these principles to all quota.

It seems incredible that we are here, at the start of a new decade, thinking about an unlimited right being carried on in perpetuity by the holders of the FQA system. There really needs to be a clarification. In a sense, Amendment 110 and the reworked Clause 27 speak back to Amendment 105 and the reworked Clause 25. They are a pair: the second implements those principles exclusively in relation to the English fishery.

In response to the question from the noble Baroness, Lady Jones, about the auction and competitive tender, this is a valuable tool to have in the kit. It would need to be carefully managed, and we would need to think about how an auction is carried out. There are other auctions for government contracts or rights carried out in different sectors of the economy. The one that I know best is the allocation of contracts for zero-emissions energy, in which case certain pots are made available and certain rules written around the allocation of those rights. If the fear is that these competitive tender processes would always lead to the more dominant players gaining more access, there are policy mechanisms that one can use to mitigate that risk.

This is a crucial clause because it also establishes this concept of payment for something held for the public trust. I am always a bit worried when I hear the Ministers saying, “We’re going to use grants to encourage better behaviour.” They should not have to use grants, because they are granting a right worth tens of millions of pounds every year. In a sense, they do not need to invent additional financial incentives when they have this existing financial instrument in their hands. It should be seen as such, because it certainly is by the fishing operators. It is not a pastime carried out without focusing on the bottom line and the profitability of the activities. The Government must take that approach.

To bring holding a property right in trust to life for noble Lords, if you own a piece of land or a house and simply give it away and say, “It’s fine. You can have that, no questions asked”, it is not likely that that property will be well looked after. You would also feel very vulnerable if you did not have a solid legal basis against which that transaction was carried out.

I am afraid that the current drafting of the Bill is not clear. There is still a lot of uncertainty, which is why the courts get involved and we lose legal cases around this question of quota allocation. There is not a really clearly laid out basis on which we do this transaction, confer these very valuable rights and hand them to the private sector.

As I say, this is a partner to Amendment 105. Listing in proposed new Clause 25(5) the links back to the various plans and statements—fisheries management plans and the marine plan—is an attempt to make the Bill holistic, mesh it together and make it read back against itself in a way that has some meaning in the real world. I will leave it at that.

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[Baroness Wilcox (Con)]

My Lords, I have been sitting here and listening for a long time. I have worked with these people and know their stories really well. We are also very passionate. We do not expect the English to get upset and worried—to love their boats, to want to bring in their youngsters, teach them properly and bring them forward.

I tried to look back and see what things stuck out for me. A lobster hatchery that I put together down in Cornwall is going jolly well—we enjoy it. In those days, people were able to take money from the European Community to train children to go to university and learn. At the same time, they would come over and take what they liked: when you came to another place, you were supposed to bring your police with you and not have any cheating. You were supposed to be watching it. However, when you talk to the Spanish and the rest of them, who had a hell of a job to get themselves enough fish, they just took it—they left the police back at home. I grew up like that.

We will find it very difficult to pull our people away from saying, “It’s all right now. Everything’s fine. We don’t need to worry”. We do need to. This is what we have heard from this marvellous lady here. I did not know her before, but she is terrific. What these two Ministers have done with patience over hours and hours is something that you do not see at sea.

I remember the first time that you could look down and see all the fish coming, because of the technology that showed it to us—watching us taking loads ourselves and pulling through. We just had to lose it. We had so much that we did not know what to do with it.

At the end of the day, what we do best is fish and chips. We love it down in the West Country. We love to sell it. The frightening thing is realising that our water goes right up to France. We have this huge amount of water around us, this great big place. We also have a place where we can eat the food we love. Hands up—who knows what we eat more of? What is it? Can no noble Lords say what they love to eat? Are you not going to be able to say, “of Britain, of England”? What do we eat? It is beef. We do not eat fish; we eat beef.

I will finish in just a moment. I do not think that it is a problem, or what we are doing is wrong. I think we are recognising, hearing and seeing the great excitement that is coming to us. We have not yet spoken about training up the youngsters to bring them in, get them keen, and get the mechanisms through. I would like to congratulate the Front Bench. I hope that we do not hang around much longer. It has been a long time and I have enjoyed it.

[Lord Teverson]

My Lords, I congratulate the noble Baroness on her work on the lobster hatchery in Cornwall, which really is something quite special and has been very successful.

[Lord Gardiner of Kimble]

My Lords, I too thank my noble friend Lady Wilcox very much for her distinguished support for fishing interests over many years.

Amendment 107 in particular would seek to reserve a proportion of English quota to be sold solely to the under-10-metre fleet. In England, the decision about whether to tender any quota is still being considered. I would say to all noble Lords who have contributed to this debate that all these matters are under active consideration. I will want to take back a large number of the points that have been made, but the criteria to be applied to any auction or tender could address concerns raised in relation to the under-10-metre fleet. Measures could be introduced to limit the lots being tendered, the amount of time they are tendered for, and the groups that they are targeted towards. As I have said, the Government will consult on the scheme and any allocation criteria. Other countries, such as Iceland and the Faroes, have explored auction systems for selling national fishing quotas. We will, therefore, also look to learn from these and other countries’ experiences. The Bill provides flexibility about how any future scheme might operate. It would already allow a scheme to be made only for the under-10s, for instance.

I turn to Amendments 108 and 109. The Government are committed to using the additional quota we secure to benefit our fishing industry and the coastal communities that they support. I know that the noble Baroness and many noble Lords will be disappointed, but the Government’s intention is to use this power to auction and tender additional quota. We recognise that this is an opportunity to support different catching sectors and will be consulting in the future, but the Government are committed to the support of coastal communities. While it is our intention that that these additional fishing opportunities be sold, and fished, the clause does not currently prevent someone from buying it and not fishing against it, as Amendment 108 seeks to provide. That said, I would caution that stopping this additional quota from being fished could reduce the benefit for our coastal communities. Encouraging those who do not intend to fish the quota to compete in auctions could also increase prices, and potentially outprice our fishers.

To address Amendment 109 specifically, I highlight that the quota tendered or auctioned through this clause would be only a proportion of total UK quota, as it relates to England only. It would therefore apply only to a proportion of fishing activity, and we must not forget that a significant proportion of our most valuable catches are actually of stocks that are not covered by quotas. Our ambition is to make the whole fleet more sustainable. We believe that this amendment, while well intentioned, is actually too narrow in focus, given that the Bill already provides a range of tools for fisheries managements to ensure that the impact of fishing on the marine environment is minimised.

Any scheme developed under Clause 27 would be developed in line with the sustainable fishing policies and practices that will be set out in the joint fisheries statement, which we have already discussed at length. However, as with everything relating to fishing, it is not as straightforward as might be imagined to determine what a sustainable fishing method is. As with all gear types, an assessment of sustainability is dependent upon how, when and where they are used. Advances in gear technology have also transformed sustainability and greatly cut unintentional bycatch. It is worth noting, for example, that, in line with a management approach the UK supported when an EU member state, Defra has already taken action to end a fishing technique that has caused concern—one that I believe the noble Lord, Lord Cameron of Dillington, referred to in an earlier group of amendments—being used by English vessels: namely, electric pulse trawling. English licences will be withdrawn at the end of the transition period to end the practice in UK waters by English and any foreign vessels we allow to fish in our waters. Decisions on a future scheme regarding the sale of English fishing opportunities are yet to be determined and will depend on further exploration and consultation. It is right that we continue to develop the details of the scheme with the relevant stakeholders, so that it is flexible.

I turn to Amendment 110. While I agree with the noble Baroness’s intention to ensure that any sale of English fishing opportunities is regulated and based upon clearly defined criteria, I am advised that this amendment would undermine the existing quota allocation system. Case law has recognised that fixed quota allocation units—FQAs, the units by which quota is allocated—are a form of property right. We have committed to maintaining the current system of FQAs in relation to current quota allocations. This has to be taken into account in any new regime for the distribution of fishing opportunities. However, it is also important to highlight again that the UK’s sovereign rights over its fisheries and the public right to fish are already recognised in law. UNCLOS recognises in Articles 2 and 56 that coastal states have sovereign rights over the resources, including fisheries, in their territorial waters and EEZ. At home in our domestic courts, as had been referred to, Mr Justice Cranston noted, in the UK Association of Fish Producer Organisations Judicial Review of 2013, that the Magna Carta recognised fish stocks were a public resource and:

“Consequently there can be no property right in fish until they are caught.”


Additionally, the amendment links quota allocation and the provision of fishing licences in a manner which could inadvertently lead to confusion. While quota is indeed allocated to licence holders, these two concepts are separate issues and should be treated as such. This distinction is important as it allows, for example, quota to be exchanged between licence holders during the fishing year. Such flexibility helps fishers adapt to weather patterns, choke risks and other circumstances.

I absolutely understand the reason for the amendment, particularly given that the noble Baroness and whoever may be working with her have tabled this new clause. But the Government’s position is that there is more work to do on this. We want to consult on it; we want to get it right. All the points that have been raised, not only in the noble Baroness’s amendment but elsewhere, are on work that we wish to continue. That is why I am not in a position to confirm support for these amendments, but the work is continuing. I have found the points that have been made very helpful—

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[Lord Teverson]

I just seek a couple of clarifications. With any new fishing opportunities, there will have to be an auction that people have to pay for, but with existing quota they will not. That gives a competitive commercial advantage, completely, to those who are already incumbents of the industry. I would think that the Competition and Markets Authority would be severely challenged by that. That is a real problem. If they are auctioned, do they then become permanent FQAs for those people, or is it a right for only five years? I was also very interested in the Minister’s comments that the rights over the fish stocks come from UNCLOS, which is an international agreement. That suggests to me that this is not a devolved issue. It is clearly a national issue, not a devolved one.

[Lord Gardiner of Kimble]

Clause 27 is about English fishing opportunities as far as I recall. The other thing I should say is that I have been very clear that the Government’s intention is to use this power to auction and tender additional quota. I have also said that the Government will consult on and consider this matter, so in matters of detail, I shall certainly not pre-empt any consideration by confirming or otherwise what the noble Lord has asked. This is obviously a matter that we wish to work further on and explore. I do not propose to take any more observations, but I will say to the noble Baroness that I am very happy for her and any other noble Lords—if they would let me know—to come and have a think piece on Clause 27.