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I welcome Rhona Brankin and her officials, Robin Weatherston and David Cassidy, and thank them for joining us this morning to consider the Fishing Vessels (Decommissioning) (Scotland) Scheme 2001. Because of the pressure of the rest of our agenda we have agreed to limit the debate to 45 minutes, if possible. However, I want everybody to have a chance to take part in the discussions.
Members will have points that they wish to raise, so I will try to keep my introductory remarks relatively brief.
You raised the issue of the will of Parliament. As you will be well aware, six months ago Parliament rejected the Executive's approach to the issue. One week later, on 15 March, Parliament supported the Executive's new motion, which said that the Executive,
May I hear your second question again, Mike?
After waiting six months since the debate in Parliament in March—which the Executive lost initially and then won—why did you wait six months and publish the scheme only 19 days before the committee met? If the committee votes to reject the instrument, but fishermen have already lodged their applications, we will be in a very difficult position. In my view, you are tying the hands of the committee.
I will first clarify why it has taken so long to lay the instrument. We needed to design a scheme that would not only be effective and provide best value for money, but would also ensure that we make a significant long-term difference in our restructuring of the white fish sector. As I said, one of the issues surrounding an earlier decommissioning scheme was that, although we got value for money, we could have got better value for money through tighter targeting. We wanted to ensure that the scheme would be effective and that it would make the difference to the fishing industry that we set out to make.
Could you respond to my first question, which was about the Parliament rejecting the scheme initially? Along with a majority in Parliament, I was persuaded to vote for it on 15 March because the Executive promised that it would enter negotiations with the fishing industry to rebalance the £25 million and £2 million package. I want a simple answer to a simple, straightforward question. How much was rebalanced?
As Mike Rumbles knows, we went into discussions with the industry; there were no representations from the industry to rebalance any of the £25 million package. The industry requested £25 million for decommissioning; that figure was calculated based on taking out 20 per cent of the white fish sector. There have been no representations from the industry to take money out of the £25 million. The Scottish Fishermen's Federation initially requested a £25 million decommissioning package.
Let me be absolutely clear. Are you saying that the Executive responded fully to the fishermen's organisations and that the fishermen did not want to rebalance that money?
Yes.
I hope that the minister enjoyed her summer and her visits around Scotland's fishing communities, which I read about time and again in the fishing press and in the local press.
Yes—very much.
I hope that the minister managed to rebuild some of the bridges that were burned earlier this year in relation to the fishing communities. However, I doubt that that happened, because, as Mike Rumbles said, the Executive's package was rejected by the fishing industry and by the Scottish Parliament.
Please make your second point slightly briefer than your first, Mr Lochhead.
Will the minister clarify the prospects of, or possibilities for, a days-at-sea scheme? If such a scheme is possible, will compensation be attached to it? Would not that be just another name for a compensated tie-up scheme? Will she rule out implementing such a scheme, even if Europe were to propose it?
I refute Mr Lochhead's comment on the industry's rejection of the decommissioning scheme. On the contrary, we have delivered the decommissioning scheme that the industry asked for.
Your Government closed 40,000 square miles.
Sorry?
I said that your Government closed 40,000 square miles.
I thought that it was the convener who interrupted me.
It was not me. Please carry on.
My answer to Richard Lochhead's question about tie-up schemes is simple and it is one that I have given before. We do not think that such schemes would be effective or that they would represent value for taxpayers' money. They would cost a lot of money and we cannot commit vast amounts of expenditure to schemes that, at this stage, we do not think would work. The £25 million for decommissioning is the biggest single investment in the Scottish fishing industry ever. That money, which was committed from the Scottish Executive budget, could have been spent on education or the health service and was a huge financial commitment. Our judgment was that that amount of money was best directed at the restructuring of the white fish sector—that is our position.
I thank the convener for inviting me to attend today's meeting. I have absolutely no desire to revisit the debate that took place in March and will ask three specific questions on decommissioning, given that that is the issue before the committee today.
The 75-day limit comes from an EC regulation. Robin Weatherston is responsible for EC regulations in this area and may wish to comment further on Tavish Scott's first question.
The position is quite simple. The relevant EC regulation—2792/1999—requires vessels that are eligible for decommissioning money, which is partly funded through the financial instrument for fisheries guidance, to have fished for at least 75 days in each of the preceding two years. I am afraid that the regulation does not allow for any exemptions from that requirement.
Is there no room for a way round that requirement, given the clear circumstances in which the vessel is in no way seeking to get around the rules by foul means?
The regulation makes no explicit provision for such circumstances. Off the top of my head, my only suggestion is that we ask the Commission whether it would be prepared to accept a non-regular approach, if the case was exceptional and we thought that it was worth it. I would have to be persuaded that such an approach was appropriate.
I will respond to Tavish Scott's further questions. The aim of the decommissioning scheme is to take out vessel capacity and to redistribute quota entitlements around the existing white fish sector, thereby creating fishing opportunities for fishermen and, I hope, making that sector viable again. We believe that the Scottish white fish sector is best placed to take up those opportunities. We have allowed a period of up to three years for the reallocation of those quotas. That important step will allow white fish skippers to consider their finances and to plan to take on additional quotas. The scheme was designed to return the white fish sector to viability and we believe that redistribution of quota will achieve that. There is nothing to prevent vessels—such as Dutch vessels that are registered in the UK—from obtaining quotas, but it is clear that such vessels would have to have an allocation of the UK quota.
I appreciate the constraints, including the time constraints, under which the Scottish Executive environment and rural affairs department operates. However, in principle, I would be concerned if quota were to be lost to the Scottish fishing industry, especially given the value of quota, which is a tradeable asset. Will the Executive consider constructively with the fishing industry the possibilities of either the Government or producer organisations retaining the quota?
The scheme is targeted at taking out 20 per cent of capacity, on the basis that the redistribution of quota will make the industry more viable. That is the express intention of the scheme.
I understand that.
Robin Weatherston can give more information on how we will do that, but taking out that 20 per cent of capacity is key. We must be careful about saying that we will consider other issues, such as the difficult financial positions facing individual fishermen who over-capitalised. Although we are concerned about such individuals, we must make a difference in the long term and return the fleet to viability in the best way possible and in a way that represents best value for money.
Inevitably, it is up to individual fishermen to determine the level of their decommissioning bid within the parameters set by the European legislation and under the terms of the scheme. It is difficult for us, as we do not know the financial position of those individuals, but no doubt they will take account of their circumstances when they formulate their bids. All we can do is ensure that those bids are considered consistently, transparently and equitably, within the terms of the limits that are set by the EC regulations and so on. I am not sure whether that answers Mr Scott's question, but we can consider bids only on the basis on which they are entered to the department.
I understand why you said that.
Tavish Scott knows that we had discussions with the banks when the decommissioning scheme was introduced in the Parliament. We thought that it was important to inform them of the level of investment that was being made, as we were conscious of the fact that some skippers were in difficult financial circumstances. We have continued to liaise with the banks.
I have listened to the minister's comments on the decommissioning scheme's benefits for white fish stocks. Does she agree that the scheme should also help fishermen, their families and fishing communities? She talked about reserving the scheme specifically for category A licences. However, on compassionate grounds alone, could category C licences with scallop entitlement be considered too? There are few such boats and some have been put out of business completely, unable to fish because of amnesic shellfish poisoning.
We must ensure that the £25 million is targeted in the most effective way and it is clear that the primary area that we are targeting is the white fish sector. Restricting the scheme to category A licences gives those scallop fishermen who fish for scallop under category A licences an opportunity to apply. Therefore, scallop fishermen are not excluded from the scheme. However, the scheme's primary aim is to reduce capacity in the white fish sector and we must ensure that the scheme meets that aim.
I was talking about category C boats with scallop entitlement, which are in a pretty bad way.
Yes. An EC regulation states that the boats must be 10 years old.
Is that regulation not a bit of an ass?
I could not possibly comment.
Jamie McGrigor is right that there would be a social benefit in taking out some of the scallop fishing boats, which have suffered longer closures than the white fishing fleet. There would also be a conservation benefit because, when large sections of the fishery are closed, those boxes that are open tend to be overfished. I ask the minister to give further consideration to the category B and C licences, especially in relation to the scallop fishery.
We were at pains to take advice on the conservation grounds for the scheme. The clear advice that we received was that there was no comparable conservation value in taking out the other licences. The scheme must be targeted. It is primarily a white fish decommissioning scheme. As I have said, taking out category A licences will allow some scallop fishermen to benefit. We must be clear about the primary function of the decommissioning scheme.
Minister, I welcome the flexibility that you indicated in your opening remarks when you spoke about determining the way in which you would apply weighting to the criteria for rankings. I direct your attention to the letter from the European Committee, which raises the issue of crews' interests in relation to boats that are proposed for decommissioning. The invitation that you issued at the end of August and the instrument make no reference to the interest of crews. Will you consult the owners who have put forward bids about what arrangements they have made for compensating the crews in the boats that are being decommissioned? Will you be able to take account of the results of that consultation in determining the final ranking of vessels that you propose for decommissioning?
We hope that, as part of the decommissioning scheme and the resultant restructuring, some of the problems that skippers face in finding crews might be solved. When I was recently in the north-east of Scotland and Orkney and Shetland, the fishermen's organisations constantly raised the problems that skippers face in finding crews. The hope is that, if we return the white fish sector to viability, skippers will find it easier to attract crews, because there will be more crew members to go round and the crews will be able to make a better living from fishing in that sector.
Does the minister recognise that although there is a shortage of crews—that is certainly true—one of the reasons why young men are not attracted into the industry may be that in that industry there is not the kind of compensation when employment ceases that there is in other industries? By not formally recognising that aspect of decommissioning at this stage, we are unlikely to attract people into the industry in future.
As Stewart Stevenson knows, the way in which the industry is currently structured means that it is up to the skippers to decide what they do with their decommissioning money. It is the skippers who, in most cases, have made the capital investment. As we know, many skippers are over-capitalised. That is an issue for the skipper, but it is an issue for the Executive when there are significant problems owing to crews being made redundant. We will keep an eye on the situation.
Am I correct in understanding that there is no comparable scheme south of the border? I note that one of the qualifications for being eligible for a grant is that the vessel should be a Scottish-based one, not a Scottish-registered one. Is that sufficiently robust to ensure that the decommissioning scheme applies to Scottish fishermen?
A £6 million decommissioning scheme will come forward in England. You are right to say that we have targeted the scheme on Scottish-based vessels. We thought that that was right and proper, given that the £25 million is coming from the Scottish Executive.
How does the £6 million scheme in England and Wales compare, given the number of fishermen affected, with the £25 million scheme in Scotland?
We are confident that the scheme that we have set out is the best one to meet the needs of the white fish sector in Scotland. I assume that equivalent thinking has been going on in England.
The first and most important objective of the scheme is to reduce effort to ensure that we have a sustainable fishing industry, but surely the second key objective is to strengthen the position of those left in the industry. I go back to the point that my colleague Tavish Scott made about ensuring reallocation of quota to the Scottish fleet. What powers do you have to ensure that the reallocation strengthens the Scottish fleet and not vessels that are registered in Scotland but owned overseas?
We have said that, to be eligible, vessels must be based in Scotland. That is important. Vessels must have a UK licence to be able to buy up quota allocations. You are correct in saying that the primary intention is twofold: to reduce effort and to redistribute the quotas. Our position is clear. The white fish sector in Scotland is much the larger and it is currently best placed to buy up the quota entitlements. The primary intention of the scheme is to reallocate the quota entitlements. If somebody has got UK quota entitlement and is based in Scotland, it is up to them to purchase the entitlements.
So apart from that restriction, this will be done through the marketplace.
That is right.
I understand that the minister had a pleasant visit to Mallaig over the summer. I understand the reasons she has adduced today why categories B and C licensed vessels are excluded. Nonetheless, I hope that she will accept that the fact that the majority of the Mallaig fleet will be excluded from the scheme will be met with disappointment.
As I have said to other members, the primary purpose of the scheme is to return the white fish sector to viability. That must be the focus of the scheme. I repeat that there are no comparable conservation grounds for allocating more to the nephrops or scallops sector. We have argued strongly for the reinstatement of the nephrops quota. The research guidelines and the advice that we received from scientists show that there was a low cod bycatch when fishing for nephrops. We have submitted a strong case and strong evidence to the Commission and hope to receive advice about the issue at the end of September.
Do you accept that, by that time, it may be too late to make full use of this year's quota because the best months of fishing will have passed? Do you agree that there is a case for adding to next year's quota any unused element of this year's quota—if there is any?
In making an application to the Commission, we believed that it was important to be able to demonstrate on the basis of the best scientific advice that there was a low cod bycatch in the nephrops catch. To ensure that we had the best opportunity to reinstate the quota, we needed such scientific advice. We had to make sure that our submission to the Commission was of very high quality. I believe that we have achieved that and we are making every effort to ensure that the quota is reinstated. We hope to hear about the issue by the end of September.
I shall take a final, brief question from Mike Rumbles.
The note that we received from the clerk to the committee stated:
I had to make a difficult judgment about what to do. Given the express feelings of members of the Scottish Parliament and fishermen's organisations that we do something soon, we felt that it was best to launch the scheme as quickly as possible. If we had waited longer to come to the committee and Parliament and to make an application to the EU, the process could have taken us months. Instead, we made a carefully worked-out decision to act as quickly as possible.
On that note, minister, let me say that all members who indicated to me that they wished to ask questions have done so. I am sure that you will have noted the points that have been made and the genuine concerns of members. I thank you for answering questions and I ask you to move the motion formally.
Motion moved,
That the Rural Development Committee recommends that the Fishing Vessels (Decommissioning) (Scotland) Scheme 2001 be approved.—[Rhona Brankin.]
Motion agreed to.
We shall now have a three-minute comfort break.
Meeting adjourned at 11:48.
On resuming—