Fishing Quotas

Peter Aldous Excerpts

Tuesday 16th July 2013 Commons Chamber

[Peter Aldous (Waveney) (Con)]

I am pleased to have secured this debate before the summer recess, as it provides us with a timely opportunity to consider the future of the fishing industry in the United Kingdom. Last month, the Minister provided details of the agreed reforms to the common fisheries policy, which provides the framework within which fishing in the UK will be administered over the course of the next few years. Its provisions are generally welcome, though its success will depend on how domestic fisheries are managed.

Last Wednesday in the High Court, Mr Justice Cranston delivered an approved judgment that will pave the way for the introduction of a new system of management that could be fairer and more environmentally friendly than its predecessor and that could provide an opportunity to reverse the fortunes of many fishing communities around the British isles. That is good news, although I sense that the path to this promised land will not be an easy one to travel along.

My interest and concern are for the inshore fleet that fishes out of Lowestoft in Suffolk, in my constituency. Like so many other fleets, it has had a raw deal in recent years. The Lowestoft fleet, which is a pale shadow of its former self, used to dominate the local economy. A significant contributory factor to its decline has been the way in which fishing quotas have been allocated in recent years. It is not possible to turn back the clock to the town’s glory years, but there is an opportunity to build an industry that can play a role in bringing back prosperity to an area that has struggled in recent years.

It is important to state at the outset that the Minister has achieved an enormous amount in the three years he has been in post. He has negotiated hard in the CFP reforms and delivered a settlement that is good for the UK. He has also listened to the concerns of the inshore fleet and made proposals to address those in the face of opposition from the producer organisations. His Department then defended this decision staunchly and successfully in the High Court. We owe him a debt of gratitude, for we have arrived at a position where we can provide a new beginning for the fishing industry in the UK. As Charles Clover concluded in his article in The Sunday Times, the Minister and

“his heirs have a once in a generation opportunity to throw the dice again on behalf of wild fish and the greater good”.

It is appropriate to say a bit about the inshore fleet and the under-10 metre boats—about the people involved and the situation they find themselves in today. Such boats comprise more than 77% of the UK fleet and employ over 65% of the fleet’s total work force, yet they currently receive only 4% of the total quota available to the UK. What is good for the under-10s is largely good for the ports in which they are based, and vice versa; they have considerable potential to deliver economic, environmental and cultural benefits for their coastal communities, many of which are among the most deprived in the country. They are also good for fish stocks, as theirs is a low-impact, sustainable form of fishing. Moreover, the income they generate is likely to stay in these communities and permeate down the supply chain, which has invariably been built up over many decades but which has been much eroded in recent years.

Today, that is very much the case in Lowestoft. It now has a small industry, but the infrastructure is still there and with the right policy framework it can deliver more for the area. The work of these fishermen still fishing out of Lowestoft should be contrasted with that of the eight affiliated vessels in the Lowestoft Fish Producers Organisation, which are all controlled by fishing interests based in the Netherlands. Those boats have UK fishing licences and hold British quota, but they contribute nothing to the local economy. Dutch-controlled vessels fishing British quota boast an annual turnover of £48 million, yet 1% of the fish they catch is landed in the UK.

In recent years, the under-10s have had a raw deal and in the Minister’s own words they have been “hanging on” by their “fingernails“. The root cause of their plight is the fixed quota allocation system introduced in 1999. As the under-10s did not keep records of their catch in the 1994 to 1996 reference period, the quota they received at that time was a best estimate, subsequently shown to be a major under-assessment, for which they have been paying ever since. Although there have been attempts to address the situation, as Jerry Percy of NUTFA—the New Under Ten Fishermens Association—has pointed out, with the under-10s starting from such a low level of quota in the first place, an additional percentage based simply on past allocations will be of little, if any, use.

Since 1999, the situation has got worse in many respects. The way the system was devised has meant that the producer organisations have been able to hold or acquire fixed quota allocation units, knowing that they could retain them if they did not use them. They could sell or lease them to the under-10s on their own terms, at their own whim and fancy. That conjures up the image of the under-10s taking on the role of Oliver Twist holding out the bowl for more food, only to be denied. Moreover, where reallocations have taken place, they have been profoundly unsatisfactory, as they have been neither permanent nor predictable, and they have invariably taken place towards the end of the fishing season.

The 2007 decommissioning scheme simply exacerbated the problem, creating more “slipper skippers”, with vessel owners entitled to retain the fixed quota allocation units even when their vessels had been decommissioned. A system has, thus, developed whereby the under-10s do not have enough quota to make a living and are in effect dying a slow, lingering death, while quota held by the producer organisations is not being used, and attempts by Government to encourage gifts of unused quota have invariably come to nothing.

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Gentleman for bringing this matter to the House, because it is important to him, to other Members in the Chamber and, especially, to me and Portavogie in my constituency. The problem is not just the quotas that are set, but those that are reduced by Europe. The Minister works energetically on behalf of the fishing industry in the whole of the United Kingdom of Great Britain and Northern Ireland, but does the hon. Gentleman agree that Europe needs to give quotas that will make the industry that I represent viable? The industry has evidence to support its belief about the numbers of fish in the sea, so it needs Europe to give them back.

--- Later in debate ---

[Peter Aldous]

Communities and the fishing industry all around the coast have been affected. The problem in recent years has essentially been quota management, but the common fisheries policy, on which the Minister has been fighting tirelessly over the past three years, is also a factor, so I agree with the hon. Gentleman.

The Minister, to his credit, tried to impose a modest redistribution of unused quota, which equated to 0.1% of the fixed quota allocation units in the UK. He sought to be reasonable and conciliatory to POs in doing that, and when representations were made against his proposals, he reduced the number of realigned units from 10,494 to 7,901. Despite that, the producer organisations took the view that the Government’s proposal deprived them, without compensation, of what they viewed as a valuable entitlement, even though it was minimal and, in effect, represented quota that was not being used. They therefore launched a judicial review arguing that the Secretary of State had acted unlawfully, was interfering with their property rights, and had behaved in a discriminatory manner.

Last Wednesday, Mr Justice Cranston delivered his judgment. He found in favour of the Government, dismissing the producer organisations’ challenge. His judgment contained several conclusions. He summarily dismissed the producer organisations’ main argument as

“falling at the first hurdle”.

He expressed sympathy with the views of NUTFA and Greenpeace, the two interveners in the case, that fishing quota and the fixed quota allocation system should always be considered against the backdrop of the principle that fish are a public resource, which is an understanding that dates back to the Magna Carta. He said that the Secretary of State had done nothing that disabled him from changing the fixed quota allocation system to address consistent non-use of quota. He expressed the view that the Secretary of State’s decision to reallocate quota was justified and that the means chosen were proportionate. He said that the Secretary of State’s decision did not constitute interference with, or deprivation of, possessions, as the producer organisations had contended. He also expressed the opinion that the producer organisations and their members have no proprietary interest in the fishing stock itself, and that fixed quota allocation units give no right to any specific amount of fishing stock in advance of the annual ministerial decisions on quota that take place each December.

With the decision coming shortly after the agreement on CFP reform, there is now a real opportunity to carry out a root and branch reform of UK fishing and to replace a system of management that has become dominated by big vessels with no connection to local areas and provides no significant benefits to either the local or the national economy. Instead, we should be looking to put in place a system that supports local communities and brings with it significant environmental, social and economic benefits.

[Andrew George (St Ives) (LD)]

I congratulate my hon. Friend on the manner in which he is making his case. I entirely agree with the conclusion that he is reaching, but does he acknowledge that large producer organisations work well with local inshore under-10 metre boats in some parts of the country? Does he agree that it would be appropriate for those vessels to ensure that they keep a record of their catch of non-quota species forthwith, because it is inevitable in the years to come that they will be asked to demonstrate what fish they have been catching over a reference period?

[Peter Aldous]

I thank my hon. Friend for that intervention. It is wrong of me to tar all producer organisations with the same brush. Back in 1994 and 1996, it was probably wrong that the under-10s were not keeping such records, and they have learned a lesson from that.

Based on the response from Hugh Fearnley-Whittingstall’s Fish Fight campaign, such a reform would in my view have public backing, as well as the support of fishing communities from all around the UK, and it would now have legal justification. Common fisheries policy reform, as well as setting out the courses for the elimination of discards and the introduction of a decentralised management system, also has the requirement for member states to allocate fishing quota taking into account environmental, social and economic considerations. This provides the framework for root and branch reform. I urge the Minister to pursue such a course and, as the Environment, Food and Rural Affairs Committee recommended in its 2011 report, to base these reform proposals on the needs of the inshore fleet, rather than on the existing patterns of work of the offshore fleet. DEFRA should identify those stocks and areas where a re-alignment of quota allocation would be of real benefit to the inshore fleet.

To prevent the problems of the past recurring, there is a vital and urgent need for transparency. As a high priority, it is important that a publicly accessible register of quota allocations and transactions is published as soon as practicably possible. I would welcome an update from the Minister as to the progress being made in providing that by the end of the year, as has previously been stated. Without a clear register, it is incredibly difficult to see who is benefiting from the nation’s fish resource and to work out whether it is being properly shared out so as to get maximum social benefit. Such a register should establish what proportion of quota is currently held by non-fishermen. It would, I hope, at least dispel the urban myth that has grown up that football clubs hold quota. I urge that consideration be given to introducing a requirement that in future quota should be held only by active fishermen. A further proposal to consider is that in future DEFRA should make greater use of its powers to re-allocate unused quota in-year.

For whatever reason, we have allowed an inexplicable system to develop, with a barely comprehensible trading method inside producer organisations which is both complex and opaque. We need to consign this to the dustbin of history and move forward to a more professionally managed system with direct licensing from the Crown to fishermen, with more clarity over who has what. This way the public can get the best out of what is, after all, their fishery. There is a need for a proper formal mechanism to grant fishermen new fishing rights. A new fisheries Act may be necessary to achieve that

It would be helpful to know the timetable that the Minister has in mind for coming forward with proposals on which the industry can be consulted and which this House can debate. It is important that the right decisions are made and a management system put in place that provides fishing communities all around the coast with a sustainable future and ensures that the inshore fleet is able not only to survive, but to flourish.

[Zac Goldsmith (Richmond Park) (Con)]

I congratulate my hon. Friend not only on securing the debate, but on delivering a very powerful speech. I agree with everything he has said. It is undoubtedly crucial that we shift the balance in favour of the smaller fishermen, as he has described. Another opportunity for levelling the playing field, which has gone under-reported but which results from the Minister’s negotiations in the CFP reform discussions, means effectively that laws applied by our Government in our waters, which previously have only ever applied to our fishermen, now must apply to everyone, so foreign vessels operating in our waters must for the first time adhere to British law. That surely is another string in the bow of the smaller fishermen.

[Peter Aldous]

I acknowledge that point, well made by my hon. Friend. The decision is helpful. Also, we now have a sensible framework in the common fisheries policy. I pay tribute to Maria Damanaki, the Commissioner, for taking a lead on that, and again to the Minister for fighting hard when the negotiations got tough on that issue. As a result, we have a once-in-a-lifetime opportunity.

In conclusion, we need to get on with this, because time is very much of the essence. In years gone by it was possible to cross from one side of Lowestoft’s Hamilton dock to the other by walking from boat to boat. Today the dock is virtually empty of fishing boats. However, if we now put the right system of management in place, fishing will be able to play a continuing role in the future economy not only of Lowestoft, but of many other communities across the four nations.