Fisheries Bill (Fourth sitting)

Debate between David Duguid and Mike Hill

Thursday 6th December 2018 Public Bill Committees

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

On the redistribution of quota, obviously, if you are a larger owner of quota versus a smaller owner of quota, or an owner of no quota, you will certainly feel that you are going to be worse off in this situation. How do you cater for the fact that a lot of the smaller vessel owners perhaps previously owned quota that they sold, benefiting greatly financially, and then moved into smaller vessels for which they did not need quota? How would you avoid that kind of gaming happening again in the future?

Griffin Carpenter: That is a good question. The line that has always been used on quota allocation in the past was, “You’re robbing Peter to pay Paul, and we don’t want that in the industry.” Now we have the idea of a Brexit dividend of extra quota, we are robbing Pierre to pay Paul, so that is fine. We are fine as long as Peter is protected.

The idea of quota shares is actually a bit confusing because they are percentages rather than tonnage. Now that stocks are recovering, and the quota increases each year, you can have a situation, even if you are taking from Peter and giving to Paul, where everybody is better off. You can have this as a conditional reallocation. Let us say you get a certain share in the large-scale fleet—you have a large-scale vessel—and you are guaranteed 1,000 tonnes every year. If the quota is going up, some of the surplus quota of that year can be reallocated to the small-scale fleet in a pool or through whatever system you do that. There is a bit of a difference between tonnage, which is what actually affects your bottom line, and the percentage. I suggest that we can have these thresholds in place.

The other thing is that, with additional fishing opportunities potentially coming in, hopefully, we can do a reallocation all at once so, again, the large-scale fleet will not necessarily be worse off. They might have a smaller percentage of haddock, let us say, or some demersal stock that the small-scale fleet really wants, but they are getting all the extra herring and other species from the North sea from our EU colleagues. There is the potential for doing all this at once: revisiting the allocation system and making everyone better off.

[Mike Hill (Hartlepool) (Lab)]

That was an interesting answer to the question I was going to ask. I was going to ask you to clarify the position that the only way to redistribute quota fairly, if I heard you right, is to break the hold of the larger fishers and bring fisheries back into public ownership. You suggested something like a seven-year notice on that, but what you were just talking about was a potential incremental progression towards that through redistribution of surplus tonnage. Were you right in the first instance that fisheries have to be brought back into public ownership for fairer redistribution, but have you also realised that there can be incremental changes to benefit new starters or the under-10s as we proceed?

Griffin Carpenter: That is a good question. Unfortunately, it is an awkward one with Brexit timing, because we are not sure if or when the additional quota will come online. One of the issues about not dealing with the fixed quota allocations is that right now it really does not matter to a small-scale fisher if there is a theoretical extra quota that may or may not come. The more important point is that, given the timeline right now, it will probably need to be incremental, where first we will deal with the additional quota, then we deal with the existing FQAs. But that requires in the fisheries legislation at the first available opportunity to give notice, because every year you delay is another year that you cannot do the reallocation that we propose. The Fisheries Bill is the right place to do that.

Fisheries Bill (Second sitting)

Debate between David Duguid and Mike Hill

Tuesday 4th December 2018 Public Bill Committees

[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.