Leaving the EU: Fishing

Melanie Onn Excerpts

Wednesday 13th March 2019 Westminster Hall

[Melanie Onn (Great Grimsby) (Lab)]

I beg to move,

That this House has considered fishing and the UK leaving the EU.

It is a pleasure to serve under your chairmanship, Mr Stringer. I start by welcoming the Minister to his place. It is incredibly welcome that he is an east coast colleague, and so will understand the particular pressures on the fishing industry in that part of the world. I look forward to building a constructive relationship with him over the many years that I know he will be in post. Many Members will use their contributions to talk about the catching aspect of our fishing sector—both around the whole UK and in their local areas—with which they will be more familiar than me. I will focus on the impact of Brexit on the post-catching aspect of the sector.

The fishing sector has been the hallmark of Grimsby for generations, and factories such as Young’s and Seachill are the largest source of employment for people in Grimsby. Traditional Grimsby smoked fish is perhaps the most recognisable symbol of quality in the fish world. If the Minister has not yet had the chance to try some, I urge him to visit my constituency and to come along to Alfred Enderby, which supplies Marco Pierre White’s restaurants, and hopefully then he will understand exactly why it has such an excellent reputation.

However, the fish that feeds those factories and smoking houses no longer lands at the docks in Grimsby, and often not even in the UK. Instead, the fish processed in my constituency arrives at our factories from across northern Europe. The cod and haddock used by companies such as Young’s and Seachill and enjoyed by many in the fish and chip shops up and down the country are caught in the likes of Norway and Iceland. They are then transferred across Europe, usually by lorry, moved on to a container ship and then put back on a lorry, eventually arriving at their destination. Those companies really worry about the effect of Brexit on their sector.

It is right that we talk about the sector as a whole, including processing. The Government document, “Seafood 2040: A strategic framework for England”, looks at the whole sector, from catching the fish all the way through to its ending up on people’s plates. The strategy covers the industry in its entirety, which is why it is relevant for me to raise these issues. Companies such as Young’s and Seachill rely on seamless supply routes to ensure that the fish that they use arrives in as fresh a state as possible. Any delay in the transport of what is a highly perishable good will have a massive impact on both the quantity of spoiled fish and the quality of the end product in our supermarkets.

[Mrs Sheryll Murray (South East Cornwall) (Con)]

The hon. Lady mentioned, and is a powerful voice for, processors in her constituency. Could she give us some idea of how much of their supply those processors source from EU member states and how much is sourced from places such as Norway and Iceland, which are clearly third countries to the EU at the moment?

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[Melanie Onn]

The hon. Lady is absolutely right: we source the majority of our product for processing from Iceland, Norway, the Faroe Islands, Greenland and so on. However, it is worth noting that those countries have European economic area and European Free Trade Agreement agreements with the EU. Our relationship with the EU will impact on those agreements. There is no way, so far as I can see, that we can supersede their existing relationships with the EU. The hon. Lady is shaking her head vigorously from a sedentary position. I am sure that she will address that point in her own comments when the time comes.

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

I congratulate the hon. Lady on securing the debate. Does she share my concern about a no-deal scenario? The Welsh fish and sea fish sector exports 90% of what it produces, much of it to the EU, and is worth £25 million to Wales. Will she join me in calling on the Department to provide financial support in the event of a no-deal scenario?

[Melanie Onn]

The hon. Lady raises an important point, and £25 million is not an insignificant sum to Wales. We saw this morning the release of proposed tariff rates, which I will come on to later. Perhaps the Minister can offer some reassurance on that. Going ahead with no deal will have a dramatic impact on trading as we know and understand it, because all our systems are set up to work within the current framework. It is absolutely imperative that the Minister hears these issues raised by colleagues.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

The hon. Lady will doubtless be aware that the tariff guidance published by the Government this morning lists a range of tariffs for imported fish. However, there will of course be zero tariffs between the Republic of Ireland and Northern Ireland. First, how workable does she think that scheme will be? Secondly, does she think that it will find favour with processors in her constituency?

[Melanie Onn]

Certainly, the information we received this morning presents a range of difficulties, as the right hon. Gentleman is absolutely right to highlight. The difficulties of potentially having zero tariffs on imports coming from Ireland, through Northern Ireland and into the UK will have a dramatic impact on the whole sector’s trade routes. I think the figure put on tariffs for import was 11.9%. I will ask for further information about that, because obviously we had that information only this morning.

It is quite concerning that that information has only been released today. It would have been preferable for these kind of details to be in the public domain at an earlier stage. All parliamentarians have been considering and voting on issues relating to leaving the EU and we are only now finding out some of these facts. That is not in the best interests of the industry and is certainly not in the best interests of people working in the industry in our constituencies around the country. Grimsby’s fish processing sector needs assurances that, come what may, it can continue to enjoy its current seamless supply route. However, industry leaders in the area currently express deep concern about the lack of clarity over how they expect the sector to operate in what could be a matter of weeks.

Currently, health certificates for fish imports from inside the EU or EFTA are only required for species that carry, or are at risk from, controlled diseases, but they are needed for all fish imported from outside the EU. Fish from EU and EFTA nations do not need to go through border checks when entering the UK. Imposing requirements on markets such as Norway and Iceland to provide health certificates for all the fish they export to us would lead to increased border checks on fish from those countries and could mean damaging delays to the delivery of fresh fish into the country. Will the Minister confirm that it is not the Government’s intention to require all fish from markets such as Norway and Iceland to have health certificates once we leave the EU?

If we leave the EU without a deal, all fish exported to the EU will require export health certificates, but companies in my constituency have raised concerns that local environmental health officers simply do not have the resources to facilitate that significant increase in their workload. Can the Minister perhaps put companies’ minds at ease by informing us of what steps the Government are taking to ensure that exporters will not be hindered by struggles to produce health certificates in the very unenviable situation that we leave without a deal?

If there are extra certificates, checks and tariffs, those will all be checked and carried out at our ports, and there are concerns among Grimsby companies that even with a deal, ports will experience a bottleneck post Brexit. We have heard about the plans for lorry parks in Dover, but there are also plans around the country for extra capacity to deal with delays in port areas, and the position is the same in north-east Lincolnshire.

Currently, fish arriving at ports in north-east Lincolnshire have been checked and certified in Iceland before being shipped to the UK. Fish arriving here can be seamlessly transferred because of the long-standing relationship between Grimsby and Iceland. There is enormous trust as a result of that relationship, which has existed for decades. It works, and nobody wants that to change. It means that the fish is moved seamlessly. There is no damage to the product. It comes in, and there is no risk of any kind of perishing of the product when it comes through, which of course would devalue it on the open market.

If the UK imposes its own customs checks on fish once we leave the EU, rather than accepting checks as it does now, that would severely impact the quality and quantity of usable fish that ends up in the UK market. Can the Minister therefore confirm that the Government will continue to accept checks from the likes of Iceland as valid and will not impose further checks at UK ports, which could have severe impacts on the viability of the fishing industry in the UK?

We know that additional funds have been directed towards UK ports. The Humber ports of Immingham, Grimsby, Hull and Goole will share £135,000. However, the “Seafood 2040” document highlights the fact that 72,000 tonnes of fish caught under UK licence are currently landed in ports outside the UK. That issue is partly about infrastructure at ports and partly about inadequate facilities. If the Government really recognise the potential for the future of the fishing industry—the potential to grow as we leave the EU—do they consider that that investment of £135,000 between four different ports in the Humber area will be enough to enable them to cope with future demand? Will it make Grimsby fish stocks ready for the 21st century?

[Sir Alan Campbell (Tynemouth) (Lab)]

May I congratulate those people in my hon. Friend’s area who have secured some of that money for the ports, however inadequate it is. I point out to the Minister—I understand that this is a Department for Transport and Ministry of Housing, Communities and Local Government matter—that of the £3 million in total that is being given to ports across the country, not a single penny is coming to any port in the north-east of England.

[Melanie Onn]

My right hon. Friend raises a serious issue. There must be equitable distribution of funds. If there is a genuine desire to support the industry, the infrastructure and the facilities must be there. To exclude one at the expense of another is not looking to the future. I hope that the Minister will take the opportunity to respond to my right hon. Friend’s point in his closing comments.

The additional funding is of course welcome; nobody is going to say no to additional funding, but how it will be shared and distributed and where the priorities will lie are still a concern. When it comes to the spending, will it go to the company that runs the dock facilities, which will have all the responsibility of dealing with the customs checks and perhaps an increase in activity? If Dover is unable to cope, perhaps we will see an increase in freight coming up to our port. What will that mean for the fish stocks and for the auction site? Will it get a share of it? That is not clear. I would be interested to know whether the Minister has any thoughts on that, too.

The concerns are clearly not felt by the processing sector alone. According to the UK Seafood Industry Alliance, we export most of what we catch and we import most of what we eat, with 90% of the cod consumed in the UK coming from outside our borders, and species such as nephrops, which are quite unfamiliar to UK dinner tables, being among our most valuable seafood exports. If we leave without reciprocal and favourable trade arrangements with major importers and exporters, we could easily end up in a situation in which fishermen struggle to make vital profits on export species that are extremely valuable in foreign markets, while we see the cod and haddock in our chippies and supermarkets skyrocket in price as tariffs are slapped on our imports.

[The Minister for Agriculture, Fisheries and Food (Mr Robert Goodwill)]

Customers may not recognise nephrops, but they will certainly know what Whitby scampi or Young’s scampi look like.

[Melanie Onn]

Yes. The Minister makes a key point. Perhaps there is less familiarity with some of the other species that we export, and export very valuably, to the EU markets.

Let me return to the point about tariffs, which we touched on. There was the publication this morning that referred to 11.9% on protected lines. That is the most preferred nation rate. It is what, in the event of no deal, we will be trading on. Can the Minister explain that in greater detail? The information came out only this morning. I have gone to various sources, including the Library, to try to get more detail about exactly which species will be affected and how, but perhaps the Minister can put that on the record here today. If he cannot do so, will there be a ministerial written statement to explain the implications of the tariffs and what they mean for the UK sector?

[Ian Paisley (North Antrim) (DUP)]

The hon. Lady will accept that the EU would be absolutely barking mad to embark on a tariff war on fishery and fishing products with the United Kingdom, given our dominance of the sea.

[Melanie Onn]

We are in a fortunate position, in that the Minister’s predecessor set a very positive tone from the start of the negotiations to leave the EU. I expect that tone to continue under this Minister. He is a very reasonable gentleman, and I expect him to recognise, in the same interest of standing up for the UK fishing sector, that an unnecessarily aggressive approach is not one that he should take. I do not think that there is any desire on either side to start so-called tariff wars. There is a mutually beneficial industry. The common fisheries policy may continue to be a bone of contention, but in more recent years the relationship has improved, and the changes that have been made in the CFP have struck a good balance between the environment and the catching sector. I hope that that will continue, so I hope that the scenario that the hon. Member for North Antrim (Ian Paisley) highlights and perhaps foresees does not come to pass. That would not be in anybody’s best interests.

[Mr Carmichael]

I confess that I am not entirely sure what this means, but the list published by the Government this morning says that

“shrimps of the genus ‘Penaeus’ even smoked or whether in the shell or not—including shrimps in shell cooked by steaming or by boiling in water”

will be subject to a 12% tariff. If that is what we are levying as a tariff on imports, why would the EU not levy something similar on our exports to the EU?

[Melanie Onn]

The right hon. Gentleman makes a valid point about what would happen in the event of no deal. We know—we will be voting on this very subject later—that it is highly unlikely that there will be a majority for a no-deal outcome. For this sector, we should perhaps, in the course of the debate taking place in the main Chamber, go and make our voices heard and say exactly why that would be an incredibly unhelpful outcome.

[Liz Saville Roberts]

Does the hon. Lady share my concern, though, about the withdrawal agreement? The whelk market is worth £6.2 million a year to Wales. It is understood that even if we leave with the withdrawal agreement, there is currently no agreement with South Korea. At the moment, we trade with South Korea under an EU agreement. Processed seafoods, such as whelks, would be subject to a 20% tariff in South Korea if we traded under World Trade Organisation rules.

[Melanie Onn]

The hon. Lady leads me neatly to a point about international trade and the role of the Secretary of State for International Trade in securing deals. As I see it—I am sure hon. Members on the Government Benches will leap to the defence of the Secretary of State—there has been such a strong desire to ratchet up the number of confirmed trade deals that, in some circumstances, they have been made at the expense of the fishing sector. The hon. Lady’s point stands, but I would like to expand on the example of the Faroe Islands deal.

It is good that a deal has been done with the Faroe Islands. In the fishing sector, the Faroe Islands is a relative small exporter to this country, exporting about 35,000 tonnes, which is much less than Norway and Iceland. In previous fisheries debates, we have discussed the fact that the catching sector has been kept very separate from the trading element. At the time, we all agreed that it was probably a good thing not to combine the two, because it would get too complicated. In the case of the Faroe Islands, it seems the deal has been made at the expense of—

[Mr Carmichael]

Mackerel.

[Melanie Onn]

Mackerel, I am reliably informed by the right hon. Gentleman from a sedentary position. If that is the blueprint for future deals with Iceland and Norway, it will not serve our industry well. I wonder what conversations have taken place between the Department for International Trade and the Department for Environment, Food and Rural Affairs on this specific issue. If there have not been detailed conversations, perhaps there could be such conversations in advance of signing up to any more deals, which otherwise will make it more difficult for companies that catch and trade in fish to continue their business. Companies that rely on importing say that we need to focus on deals with major suppliers, such as Norway, Iceland and Canada, if we are to have a seamless transition post Brexit.

[Dr Philippa Whitford (Central Ayrshire) (SNP)]

Is the hon. Lady aware that in the trade deal between the UK and the US, fish and fish products are included with industrial goods? While agriculture is excluded and protected in that deal, bizarrely, fish is not.

[Melanie Onn]

That point has been discussed in previous debates on this matter. It complicates the issue of whether things are considered food or industrial goods, or whether they come under farming. Therefore, it is unclear which Department has responsibility for and understanding of the fishing industry, which is a complex industry, because it encompasses so many different elements, as we discussed.

Will the Minister confirm what discussions he or his Department—given his recent appointment—have had with the Department for International Trade about the importance of getting those deals with major suppliers over the line? Will he inform us of the status of the deals with Norway and Iceland, and whether we can expect favourable trade terms for fish when we leave the EU, regardless of the scenario in which we leave?

I know that people in the industry are very concerned at the amount of repetition that occurs in paperwork and fear that it will only get worse post Brexit. Are there any plans to simplify the often arduous paperwork? Currently, there are no digital solutions in place that I am aware of to reduce the burden of the bureaucracy on people throughout the sector.

Finally, regarding the future of the fishing sector, I know that people in Grimsby would be delighted to see the rebirth of its traditional fishing industry, to sit alongside the new, emerging sector in offshore wind energy. There remain issues around training, awareness and skills. Even in the industry as it stands, we have not managed to get those things right as a country. I hope the Minister will put all his efforts into ensuring that we have the best possible industry in future.

[Graham Stringer (in the Chair)]

We have about half an hour before I call the Scottish National party spokesperson, leaving about five and a half to six minutes for each speaker. I do not want to impose a time limit.

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[Mrs Sheryll Murray (South East Cornwall) (Con)]

Leaving the common fisheries policy provides so many opportunities for the UK fishing industry. Article 62 of the United Nations convention on the law of the sea states that any surplus, and only the surplus, that UK vessels are unable to take from UK waters needs to be made available to other nations, and the UN fish stocks agreement protects shared stocks that transit between each country’s waters.

Leaving the CFP means an opportunity to boost our fishing industry, rather than allowing other member states to simply come in and take fish from UK waters, as is the case when the French take 80% of the cod from waters off the south-west coast—we will be able to take that with our fleet. That has the potential to benefit the UK economy: we will no longer be just giving away this very valuable UK asset to other nations to profit from, with no benefit at all to the Exchequer.

I pay tribute to the Minister’s predecessor, my hon. Friend the Member for Camborne and Redruth (George Eustice)—he did a really good job—and I welcome the Minister to his place. I cannot think of a better person to represent the fishermen for whom I care so much.

Leaving the CFP gives us the potential to implement measures that will attract young blood into the fishing industry. The industry has been in decline for the last 40 years, and we have the potential to grow it. I pay tribute to my joint co-chair of the all-party parliamentary group on fisheries, the hon. Member for Great Grimsby (Melanie Onn), who I know really cares about the processing sector. I also pay tribute to her predecessor, who I knew for many years and who I worked with on the Save Britain’s Fish campaign, since he was—

[Melanie Onn]

A lad!

[Mrs Murray]

Absolutely. Austin Mitchell was a great man, and the fishing industry cared so much for him.

[Melanie Onn]

He is still alive!

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[Melanie Onn]

I have to say that I am sorry about the tone that the Minister took in his remarks, particularly about the withdrawal agreement. He said that he knows my constituency very well, but he does not know it that well. It is Great Grimsby; getting its name right would be a good start.

I worry about the flippant tone that he has taken about non-EU nations and the impact on the industry of leaving, even with a deal. That is not going to help the Welsh industry, as the hon. Member for Dwyfor Meirionnydd (Liz Saville Roberts) pointed out, so I hope that the Minister will take that point seriously. Why will the Minister not set up a DEFRA marine safety hub in my constituency, to support the industry in Grimsby and secure its future?

Motion lapsed (Standing Order No. 10(6)).