2nd reading: House of Commons & Money resolution: House of Commons & Ways and Means resolution: House of Commons
Wednesday 21st November 2018

(5 years, 5 months ago)

Commons Chamber
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Baroness Hayman of Ullock Portrait Sue Hayman
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My hon. Friend makes a very important point. We would certainly support increasing co-operatives. I understand that there is an opportunity to double the number of co-operatives if we go about it in the right way. That was an incredibly important point.

Philippa Whitford Portrait Dr Philippa Whitford (Central Ayrshire) (SNP)
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I am very grateful to the hon. Lady for giving way. Obviously, she is talking about coastal communities. Does she recognise—unfortunately, I was unable to make this point with the Secretary of State—that processors will not have a bonanza? If they are trapped having to pay 11% to 12% to land filleted and processed fish in Europe, but can land their fish directly to fish processors in Poland, harbours, markets, ice producers and processors will crumble. Certainly, the fishing associations on my coast do not support the Scottish Fishing Federation. The Clyde Fishermen’s Association and the Scottish Creel Fishermen’s Federation are not happy with this notion that all Scottish fishermen support Brexit—they do not.

Baroness Hayman of Ullock Portrait Sue Hayman
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Yes, that is a very important point about processors. I have a processor in my own constituency, so I fully understand the hon. Lady’s concerns. We want to see more British fish landed in British ports.

--- Later in debate ---
Deidre Brock Portrait Deidre Brock
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I thank the hon. Gentleman for his intervention. I am certain that the Scottish Government will be closely following the debate and that they will make a note of his request.

If the steady stream of Ministers heading for the exit delays negotiations on the future relationship between the UK and the EU, we could find ourselves in an extended period where our fishing industry just complies with the rules, rather than having someone in the room standing up for it. Mr Barnier has already suggested that it will last for at least two years, which could be an underestimate if we consider how long it took to reach the much simpler withdrawal agreement.

We may have to suffer the CFP for quite a few years to come and it may change to the advantage of the remaining members of the EU, and not to ours. We may lose markets to sell fish into, or at the very least, find that our competitive advantage disappears because we will be subject to the same tariffs as other non-member states. I hope they will be the same tariffs, but going by the poor negotiation results that we have seen so far, we may end up with higher tariffs that reduce our fleet’s traditional competitive advantage.

It will not come to that, of course, because the new fishing deal has already been written into the withdrawal agreement by the departing Brexit Secretary. On page 4, the political declaration tells us that he has agreed to a new fisheries agreement with access to UK waters and assigned quota shares being

“in place in time to be used for determining fishing opportunities for the first year after the transition period.”

That means the common fisheries policy will carry on regulating our fishing fleets after we have left the EU. Taking back control has never sounded so hollow.

It is a sad state of affairs for this Secretary of State to have to deliver that news, because in March he said that he feels a

“debt to fishing communities who are looking to government to deliver a better deal for them”

and promised that he would ensure that our

“fishermen’s interests are properly safeguarded”

during the implementation period. That period starts on 29 March and lasts for an indeterminate amount of time, during which access to some important markets might be limited. France, for example, is the UK’s most important export market for fish. It is nearly twice as lucrative in cash terms as the US, and almost three times as strong in export volumes. Spain, by the way, is just behind the US in cash terms and slightly ahead in volume. Ireland, Italy, the Netherlands and Germany are all significant customers for our fishing fleets. Two thirds of our fleet’s fish is exported—perhaps a case of EU citizens jumping the queue to buy fish.

Once the deals are done and we finally leave the CFP, however, we will still be in it. It is a conjuror’s trick, and not a good one. Last year, the Secretary of State spoke to leaders of the Danish industry and guaranteed them continued access to our waters after Brexit. Earlier this year, the UK embassy in Spain reassured Spanish trawlers that their access to UK waters was assured. The withdrawal agreement replaces common decision-making on the CFP as a member of the EU with CFP rules handed down from Brussels and no input from Ministers from these isles on behalf of the industry here. Well done to the Brexiteers—they certainly landed a whopper there.

The Norwegians sometimes describe their relationship with the EU as a “fax democracy”, because the rules just come down the line from Brussels. That seems to be what removing ourselves from the EU will do, except, of course, that the European maritime and fisheries fund money will vanish. We have heard nothing about what might replace that in due course.

We will be left to accept the rules that are handed down; we will lose access to the decision-making body and the funding from the EU; and we will have to deal with the consequences of the Government’s poor negotiation techniques and the uniquely weak position that they have left us in. When the Minister for Agriculture, Fisheries and Food gave evidence to the House of Lords EU Energy and Environment Sub-Committee 26 months ago, he said that

“we have to recognise historic rights…In some sectors, for instance on scallops, access to the French part of the channel is quite important to the UK industry. I accept there are trade-offs. All these things will be a matter for negotiation in a new world.”

During the referendum campaign, the Secretary of State for Scotland said:

“I think the fishermen are wrong in the sense there is no way we would just go back to Scotland or Britain controlling British waters. There are a whole host of international rules and agreements even if we were outside the EU which would impact on their activities.”

Then of course there is the same problem agriculture has in relation to workforce planning. We will lose access to EU workers, who make up 58% of Scotland’s fish processing workforce and 70% in Grampian, where the Secretary of State’s family business was based.

Scotland’s seafood and fishing industries could be destroyed without access to EU markets. Scotland’s processing industry could be irreversibly damaged without access to EU workers. We also have to consider Scottish farmed salmon, the UK’s most valuable food export, and how losing the market advantage over Norwegian salmon that EU membership gives us could be utterly devastating. Scotland stands to lose a lot without access and there is little indication of how any of it might be replaced.

Philippa Whitford Portrait Dr Philippa Whitford
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Fishermen in the north-east are often quoted as saying that more fish will be consumed in the UK, rather than exported. In my constituency, however, the south-west Scotland market consists of nephrops, crustaceans, langoustine and lobster. Some 85% are exported to the European market. It might well be that we all eat a little bit more white fish after Brexit, but I cannot see anybody being in a financial situation where they are going to be eating more lobster.

Deidre Brock Portrait Deidre Brock
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My hon. Friend makes a very good point and I am delighted that she brings up the interests of the south-west part of the country.

Once more, Scotland’s needs are massively different to the needs of England. Once more, we cannot have the Scottish industry locked into a rigid framework that will satisfy the English industry. Fishing, of course, has been a devolved matter since 1999 and the responsibility for nearly all the policy area rests in Edinburgh. I think the Government acknowledge as much, with the legislative consent motion they have asked for at Holyrood.

The industry cannot be squeezed into the same box as the English industry, but I appreciate the desirability of common frameworks to allow co-operative working on various issues—kind of like the EU managed with the CFP. Where such frameworks are sought and agreed by both sides they will be mutually beneficial, but they cannot be imposed. They must recognise the devolution settlement and respect it. There must be an element of trust that runs between Whitehall and Holyrood. Her Majesty’s Government must allow Scotland’s Government to govern in the devolved areas and this Parliament must allow Scotland’s Parliament to legislate in devolved areas.

--- Later in debate ---
Angela Smith Portrait Angela Smith
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I do not disagree with the right hon. Gentleman. Grimsby makes some of the very best premium products in the world. One of the local fish-finger producing plants can take the fish from the moment it has landed at Immingham and have it in the lorry going to the supermarket in six hours. One of the reasons why that is possible, and why the time from the moment of departure from Iceland to getting the product in the shops is concertinaed into a minimum, is the single market. That fish is as fresh as possible and those products are as good as they are because the single market has made it possible to ensure guaranteed standards while at the same time maximising productivity.

Philippa Whitford Portrait Dr Whitford
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rose

Angela Smith Portrait Angela Smith
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I am not going to give way again as many Members wish to speak.

Any failure to secure access to the single market, such as by sacrificing our access to the market in return for keeping access to our waters broadly to ourselves, will represent a betrayal and could decimate processing in areas where the jobs and economic activity it provides are vital. I am convinced that the processing side of the industry, which accounts for 64% of the employment in the sector, will not want its interests to be sacrificed on the grounds that we will give no, or very limited, access to our waters to foreign vessels.

We now have a withdrawal agreement on the table alongside the political statement, giving something of an indication of the direction of travel. This political statement, however, gives only the faintest glimmer of what will happen after the transition period, which is not good enough, particularly so far as fisheries are concerned. It is also true that this Bill, like the Agriculture Bill, is enabling and contains a number of Henry VIII powers. Like others in this Chamber, I worry about the use of this mechanism given the lack of effective parliamentary scrutiny that accompanies the use of statutory instruments. I therefore hope the Government will think more carefully about this Bill and allow it to be amended to ensure it gives greater clarity on the direction of travel of our fishing industry.