Grimsby Seafood Manufacturers

Martin Vickers Excerpts

Wednesday 15th October 2014 Westminster Hall

[Austin Mitchell (Great Grimsby) (Lab)]

I am glad to have the opportunity to discuss an anomaly that arises from the common fisheries policy. The anomaly is a measure designed to check state aid for fishing, but it is now depriving Young’s Seafood—a firm that we are very proud of in Grimsby and Cleethorpes, and my colleague, the hon. Member for Cleethorpes (Martin Vickers), is here—of the ability to get state aid for investment and expansion.

Young’s is a seafood manufacturer on a considerable scale; I think it is the biggest seafood manufacturer in the country. However, this anomaly also applies to other seafood manufacturers, and seafood manufacturing is a major section of the food manufacturing industry. None of these companies can get regional selective assistance, or other public support, for the investment they need to expand and grow.

I emphasise that although my reputation is for being a Eurosceptic—a man whose opinion of the European Union can be summed up in four words, three of which are “the European Union”, and who is a continuous critic of it—I do not raise this issue just as a critic of the EU. I raise it because this situation is daft, impinges on a major manufacturing firm in Grimsby, and needs to be ended.

What is at issue here is the EU guidance on state aid regarding the entire fisheries sector. That sector is defined as being concerned with

“the exploitation of aquatic resources and aquaculture together, with the means of production, processing and marketing of the resultant products”.

That definition is being interpreted as applying to Young’s, which employs 3,000 people in Grimsby and Scotland. It is the largest single private employer in Grimsby, employing 1,700 people in processing jobs there, and—I have to say—creating a superb product range. It seems to me, and to Young’s, that to extend these European guidelines to the company is a distortion of their purpose, because Young’s itself catches no fish. It farms no fish; it does not have a fishing fleet; and it does no primary processing of fish, which is the filleting and gutting of fish—the only processing, I think, that the guidelines are meant to cover.

Young’s imports its fish from all over the world. In fact, it uses 30 species of fish from five continents. Very little of that fish is caught under the CFP, of which these guidelines are part. Young’s makes from those fish more than 300 dishes. It makes dishes; it turns fish into meals by processing it, adding ingredients and selling it as a meal. So, in every sense Young’s is not a fishing company but a food processing company—a fish and seafood processing company—and therefore it deserves to be excluded from these guidelines.

Young’s is a food manufacturer and it is an important part of Britain’s manufacturing industry. Young’s and other food manufacturers hit by this anomaly are anxious to expand, grow, invest and create jobs, but they cannot because they cannot get public support in the way that other industries that they are competing with for investment can. I hope that I can persuade the Minister to see that, and to do something about it, because if he does not, he will put Young’s and other seafood manufacturers at a competitive disadvantage not only to other food manufacturers but to the rest of the industry. He will also put us—the people of Grimsby, which is Europe’s food town—at a competitive disadvantage when it comes to attracting jobs and investment, which will harm the development of Grimsby, because we all know the importance of cluster growth, as emphasised by Michael Porter, whereby clustering industries can trade experience, skills, staff and research. We have such a cluster in Grimsby, but it will be damaged if it cannot get Government support in this way.

I have been working hard to drive that lesson home. On 6 June, I wrote to both the Department for Environment, Food and Rural Affairs, and the Department for Business, Innovation and Skills. In those letters, I asked for an early reply, but I did not get one. BIS passed the letter to DEFRA, and DEFRA did not answer. An Under-Secretary of State at DEFRA wrote to Young’s on 17 September—although I had written in June—explaining what the Commission thought, but we already knew what the Commission thought. What the Commission thinks is wrong. We want independent thought relating to the point that these are food manufacturers, not fisheries firms. The reply seemed over-complacent about the situation.

I took the issue up with our local enterprise partnership, which is very good and active. Lord Haskins, the chair, wrote supportively and pointed out in passing that some restrictions also apply to flower-growing in our area, although I do not see why, and to making potato chips. Let us face it: the fish and chip industry, which is vital to this country and provides a good deal of the sustenance for our people—and certainly for me—is being hit both ways; it is being hit because we cannot invest in the seafood producers, and because of restrictions on what can be allocated to producing chips. However, I am not taking up the chips side of the argument today; I am taking up only the seafood manufacturing side. Lord Haskins added helpfully that he and the LEP supported Young’s, which he said were

“wealth creators and providers of large local employment”,

which is true.

Our Euro MP, Linda McAvan, was also helpful. She understood the problem and the consequences and mentioned that guidelines for the fisheries sector are being revised at this very moment. If those guidelines are being revised, it is up to us to get our voice in, to get that revision changed so that this restriction no longer applies to seafood manufacturers. I want the Department to get in there and get this regulation changed.

That is my plea. I plead to the Government and Ministers to stop wringing their hands and stop telling us what they cannot do. Government is good at telling people what they cannot do. I want the Minister to find out what is happening to seafood manufacturers in other European countries, because I am sure, from a little bit of evidence that I have—it is incumbent on the Department to check this—that they are being aided by the state in a way that our state will not aid our seafood manufacturers. I will bet that those states are doing that, because the degree of cheating on European regulations is quite astonishing; others are less timid and hidebound than we are.

I plead with the Minister not to brass-plate European lunacies. Let us get round them, put Britain first, and put Young’s at the forefront of putting Britain first. Let us get food manufacturing excluded from this fisheries regulation, so that structural aid and regional support aid for investment and jobs can come to this sector, which is anxious. The purchase and consumption of seafood dishes is increasing steadily; they are good for us, and we want to encourage that and to encourage the manufacturers. The firms want to expand, and it is only this barrier that is preventing them from expanding.

I am fed up with excuses, and so is the industry. We need action on this anomaly. It ill behoves a Government who are constantly telling us that they will get a better deal from Europe to do so little to get a better deal in this instance. I have every hope that the Minister will accept that.

[Martin Vickers (Cleethorpes) (Con)]

I share my hon. Friend’s views, and congratulate him on getting this debate. The other word that he uses in connection with the European Union is surely “out”; I would agree with that, as would most of our constituents in north-east Lincolnshire. Does he agree that this is yet another example of a case where the seafood and fishing industries have been at a disadvantage as a result of European intervention, and that they have missed out on many of the grants and benefits that other industries have had? To take up the point he was just making, does he agree that this issue should be a vital part of any renegotiation?

[Austin Mitchell]

I agree with my hon. Friend and colleague. I will also agree on the use of “out”, but there is a long trail a-winding there. The immediate issue is to get help now for a firm that needs and wants investment. My last words to the Minister—other hon. Members will have something to add—are these: stand up and support Young’s and Grimbsy, and get rid of this anomaly.