Fisheries Bill (Second sitting)

David Duguid Excerpts

Tuesday 4th December 2018 Public Bill Committees

[Brendan O'Hara]

Q As the Member for Argyll and Bute, I take on board what you are saying. We are absolutely dependent on speed of access to market. What should we in this Committee be looking at over the next few weeks to ensure that vital shellfish market remains open and there is that speed of delivery from Loch Fyne to Madrid, for example? How do we ensure that that is as seamless as possible, and that we keep those vitally important markets?

Jerry Percy: There has to be a balance in the negotiations, permitting some level of access to our waters—although much less than currently—to ensure that we do not have those non-tariff barriers, and that the facilities, including on the French side, permit us to have that seamless transport and that there are no road blocks in the meantime.

[David Duguid (Banff and Buchan) (Con)]

Q On access to market versus access to waters, I think you mentioned that there would be some exchange of access for quota in any future arrangement. I presume you would agree that it is important that, as an independent coastal state, we have full control of that access so that we can use it as leverage. I hesitate to use the phrase “bargaining chip”, but when we go into future annual negotiations, that has to be the leverage that we have.

Jerry Percy: Absolutely. We should start with a clean sheet: “We are an independent coastal state. That’s that.” We have a clean sheet and nobody has the right of access. Then there will inevitably be negotiations and bargaining, and that balance is going to be extremely difficult, because Mr Macron, the Commission and others have already made clear that they want the status quo to be the basis of any further negotiation. The Government will have their work cut out to try to sort that out.

[David Duguid]

Q Is there anything in this Bill that you think we should focus on, in order to add more power to our elbow in those future negotiations?

Jerry Percy: Our concern about the Bill is that there are a lot of phrases in it like “intend to”, “will consider”, “could include”, “aim to”, or “DEFRA intends to be”. There is not a great deal of certainty about some elements on which we would have liked to have seen more certainty and absolutely unequivocal statements: “We will do this.” The Government have made it clear to date that they want an unequivocally clean sheet start. Whether we actually achieve that, of course, is open to significant debate.

[David Duguid]

Q One more question, if I may. Going back to what you were saying earlier, I think your exact words were along the lines of “Unfortunately, quotas have become a commodity.” With quotas being sellable and buyable, they are an asset, at least. If quotas were to be more fairly distributed among the smaller vessels in future, how would you avoid them just becoming sellable commodities, bought up by others?

Jerry Percy: There are a number of global examples where you can retain quota as a national resource without allowing its sale. There obviously needs to be flexibility in-year to move quota about, to ensure that those people benefit from it. It is not an easy situation to resolve, but there are global examples of what can be done to ensure that almost half of our national resource is not in foreign hands, as has happened here.

[Mike Hill (Hartlepool) (Lab)]

Q I represent Hartlepool, which is one of those coastal communities affected long ago by unfair quotas for under-10s. There is an argument that our industry could be revived if fairer quotas were allocated. In your opinion, how many ports would benefit from an uplift in quotas?

Jerry Percy: It is not just ports; there are harbours, coves, small areas and small coastal communities. It would be dozens, if not hundreds. Going back 40-odd years, I can remember fishing out of Lowestoft as a boy fisherman. There were myriad groups of small boats all the way up and down the coast, all providing a significant benefit to those local communities. They may not show up on an economist’s spreadsheet, but those people are nevertheless paying their mortgage, taking their kids to school and keeping the local infrastructure going. I am not exaggerating; it could certainly be in the hundreds that we could revive and have some level of renaissance. There is no doubt whatever.

--- Later in debate ---

[Brendan O'Hara]

Q Do you have the capacity, the capability and the funding to meet the worst-case scenario that we have talked about?

Phil Haslam: That is where our judgment has been made, and that is where the bid has gone in. We are building that capability in order to be able to deploy it within the timescales, so by March.

[David Duguid]

Q Still on the subject of fisheries protection, you mentioned airborne surveillance earlier. One of the questions that fishermen in my constituency keep asking is: how does the eye in the sky seeing something wrong—somebody shooting their nets where they should not be shooting their nets, or whatever it is—turn into some kind of enforcement or some kind of actual protection, particularly in the future when there is no automatic equal access to our EEZ?

Phil Haslam: The intent of redeploying aerial surveillance on a more routine basis is to cover off any risk that we do not continue to receive data that we receive now through the vessel monitoring system and the like. We would need a mechanism to build a picture of what was happening in our waters. If it is not derived remotely from a location device on board a vessel, we will have to actively go out and build that picture.

What the aerial surveillance does in the first instance is build situational awareness of what is going on in the water. If, once you have that, you see in among it non-compliant behaviour, it can operate as a queueing platform. Either it can queue in a surface vessel to come and take subsequent action, or you can warrant the air crew so that they can issue lawful orders, whether it be, “You are required to recover your gear and exit our waters,” or whatever it is. That can be passed from the aircraft.

It is not an entire panacea. It cannot stop non-compliant activity, because it is clearly airborne, but it gives you, first and foremost, that picture. It has a very clear deterrent capability, and it can start a compliance regime by queueing.

[Mr Paul Sweeney (Glasgow North East) (Lab/Co-op)]

Q Although it is encouraging that the Royal Navy is making contingency plans with the River class, there is still concern about the differential in policing standards to which foreign vessels will be held relative to domestic vessels. I am just looking at what the planning is for that and at how you address the 80% fall in boardings in the past six years, from 1,400 to 278. That indicates a clear reduction in capability. Would it be helpful if the Bill defined that the Royal Navy has to provide a statutory capability, along with the Scottish Fisheries Protection Agency, to deliver that enforcement in UK waters?

Phil Haslam: Taking the first point, we work, as I said, on a risk-based, intelligence-led basis, so refining where we deploy our assets is based on that outlook. That is how we would deploy it. In terms of the differential between inspection rates of foreign vessels and UK vessels, I think that comes under the same cover. Where we perceive that there is risk and intelligence, we will take action on where it needs to go.

I am sorry, but I missed the second point about including something in the Bill.

--- Later in debate ---

[The Chair]

Thank you. I want to get Members in. I call David Duguid.

[David Duguid]

Q Thank you, Mr Hanson. Mr Brown, there has been a lot of talk today about the ownership of quotas. As Mr Carmichael said earlier, if we were to design this again from scratch, we would not start from where we are. A lot of what you describe sounds like it might work if you were starting from scratch, but I cannot help but feel a bit squeamish about the idea of taking something away from someone who owns something—I am a Conservative; I cannot help myself. I do not see that as being fair. Not only does it in essence involve taking ownership of an asset away from someone, even over time, but how fair do you think it is that the fishermen who benefit, the smaller fishermen who would get a bigger share of the quota, in some previous generations might have benefited financially from selling that quota to the larger fishermen in the first place?

Aaron Brown: I absolutely agree with you. That is why Fishing for Leave has been absolutely explicit right from the start that FQAs as they stand—the current quota and the current FQAs—should not be touched. We agree with you that it opens up a total legal and moral can of worms to turn round and say, “Okay, this shouldn’t have happened, but it has happened, but we’re going to take it off you.” I absolutely agree.

Our solution to preserving the FQAs, while moving to a more equitable system of management for both fisherman and the fish was to convert them into this flexible catch composition entitlement. That is very simple to do. It is legislatively no problem, because all you are doing is saying that your FQA is not an entitlement to a kilogram; it is an entitlement to a percentage. So the resources all come back, and the current resources go into a national pool; that is divided out as time and everybody gets an equal stake of time to reach their potential, but those biggest quota holders, both in the south-west and the north-east, which have heavily invested in FQAs, get the benefit of their investment, because when the fleet’s national average might work out at 5% cod in the North sea, those who have invested heavily in FQAs would get their 30% or 40% or whatever. We think that is a fair way to do it.

[The Chair]

Okay. I call Owen Smith.