EU Trade and Co-operation Agreement: Fishing Industry

To ask the Secretary of State for Environment, Food and Rural Affairs if he will make a statement on the consequences of the EU trade and co-operation agreement as it applies to the fishing industry.

As hon. Members will know, before Christmas the UK and the EU concluded a new trade and co-operation agreement, which established tariff-free trade in all goods and, among other things, sets a new relationship with the EU on fisheries. Before turning to the specifics of that agreement, I should briefly set the wider context.

The withdrawal agreement that was agreed by this House in January last year established the United Kingdom as an independent coastal state. Over the course of the last year we have taken our independent seat at the regional fisheries management organisations, including the North East Atlantic Fisheries Commission and the North Atlantic Fisheries Organisation. In September, we reached a partnership agreement with Norway—our most important partner on fishing interests, and with which we have responsibility for shared stocks in the North sea.

We have also developed new bilateral arrangements with our other north-east Atlantic neighbours, including the Faroes, Greenland and Iceland. We have recently commenced annual bilateral fisheries negotiations with the Faroes in relation to access to one another’s waters, and a UK-Norway-EU trilateral is about to begin to agree fishing opportunities on shared stocks in the North sea. There will also be a UK-EU bilateral negotiation on fishing opportunities for the current year in remaining areas. For the first time in almost 50 years, the UK has a seat at the table and represents its own interests in those important negotiations.

The trade and co-operation agreement establishes an initial multi-annual agreement on quota, sharing and access, covering five and a half years. It ends relative stability as the basis for sharing stocks. Under the agreement, we have given an undertaking to give the EU access to our waters on similar terms as now and, in return, it has agreed to relinquish approximately 25% of the quota that it previously caught in our waters under the EU’s relative stability arrangement. That means that we move from being able to catch somewhat over half the fish in our waters to two thirds of the fish in our waters at the end of the multi-annual agreement. The transfer of quota is front-loaded, with the EU giving up 15% in year 1. On North sea cod, we have an increase from 47% to 57%. On Celtic sea haddock, our share has moved from 10% to 20%. On North sea hake, we secured an uplift from 18% to 54%, and on West of Scotland anglerfish, we have an increase from 31% to 45%. After the five-and-a-half-year agreement, we are able to change access and sharing arrangements further. The EU, for its part, will also be able to apply tariffs on fish exports in proportion to any withdrawal of access.

Although we recognise that some sectors of the fishing industry had hoped for a larger uplift, and, indeed, the Government argued throughout for a settlement that would have been closer to zonal attachment, the agreement does, nevertheless, mark a significant step in the right direction. To support the UK industry through this initial five and a half years, the Prime Minister announced, just before Christmas, that we will invest £100 million in the UK fishing industry, and I will be bringing forward proposals for this investment in due course.

For years, this Government have promised our fishing industry a sea of opportunity, but, today, our boats are tied up in harbour, their propellers fouled with red tape manufactured in Whitehall. Boats that are able to go to sea are landing their catches in Denmark—an expensive round trip of at least 72 hours, which takes work away from processors and other shoreside businesses in this country. Our Fisheries Minister describes promises made by Ministers as “dreams” and apparently did not think it was worth reading the agreement as soon as it was made, even though every second counted. How on earth was it allowed to come to this? The EU trade agreement allows a grace period on customs checks for EU businesses. Why was there no grace period allowed for our exporters, and will the Government engage with the EU as a matter of urgency to make good that most fundamental of errors?

Yesterday, the Prime Minister told the Liaison Committee that compensation is being considered for our fishing industry. Who will be compensated, for what, and by how much? When will our scheme be published and what steps will be taken to help processors, catchers and traders in the meantime? On the loss of quota swaps and other mechanisms, as the Fisheries Minister said yesterday, this could be done Government to Government in-year. Can the Secretary of State explain today how the literally hundreds of producer organisation to producer organisation swaps done every year will be done on a Government-to-Government basis?

Finally, what will happen at the end of a five-and-a-half year transition period? A transition normally takes us from point A to point B. This transition takes us from point A to point A with a new negotiation. Is zonal attachment still the Government’s policy on quota shares?

This is a shambles of the Government’s own making; there is no one else to blame now. When will the Minister start listening to the industry? I make him this offer: I can convene a virtual roundtable of all the affected sectors today or tomorrow. Will he meet with me and them to sort this out? The time for complacency has passed.

May I begin where the right hon. Gentleman ended and say that we are looking and working very closely with industry on this matter? We are having twice-a-week meetings with all the key stakeholders and all the key sectors to help them understand these issues. Yesterday, we had a meeting with the Dutch officials; earlier this week, we had a meeting with the French; and, on Friday, we had a meeting with the Irish to try to iron out some of these teething problems. They are only teething problems. When people get used to using the paperwork, goods will flow normally. Of course, it would have been open to the EU to offer us a grace period, just as we have had a grace period for its goods coming to us. For reasons known only to the EU and related to the way that it approaches its particular regulations, that was not something that it was willing to do, so we have had to work with these arrangements from a standing start and, clearly, that causes certain issues.

The right hon. Gentleman asked what happens after five and a half years. As I said in my opening statement, after that period, we are free to change access arrangements and change sharing arrangements, and we will do so. He asked specifically about swaps. It is important to note that the Department for Environment, Food and Rural Affairs has all of the information on all of the swaps that have taken place in recent years, since each of those producer organisation to producer organisation swaps requires the Government to agree them. It is, therefore, quite possible for us to build those swaps into the annual exchanges. Annual exchanges of fishing opportunities are a normal feature of annual negotiations, and we have also retained the ability to do in-year swaps on behalf of those POs.

The right hon. Gentleman has raised the issue of what the fisheries Minister said yesterday. I think the record will show that she did not say she did not have time to read the agreement; what she actually said was that her jaw did not drop when she was told what was in the agreement. There may be a reason for that, which is that she knew what was likely to be in the agreement for at least a week, since I had been discussing it with her and we were both in regular contact with our negotiators.

The Secretary of State will be aware that fishermen in Cornwall have been very disappointed with the agreement reached on quota with the EU, and the fact that its vessels can still fish in our 6 to 12-mile limit. There is real concern that our inshore fleet, which makes up the vast majority of vessels in my constituency, will benefit little from this new deal, so what assurances can he give the fishermen of Mevagissey and Newquay, as well as fishermen across Cornwall, that the Government will be working with our inshore fleet to make sure it can benefit as much as possible from this new deal, and that those fishermen will be in a good position to increase their share of the quota when we come to the end of the adjustment period?

We left the London fisheries convention and gave notice under that because it is our intention that the 6 to 12-mile zone should be reserved predominantly for our own fishermen, and at the end of the five and a half years, that is exactly what we will be seeking to achieve. There are some uplifts for fishermen in the Celtic sea, and in particular those in Cornwall—as I mentioned earlier, haddock has moved from 10% to 20%—and the Celtic sea is also an area that often had its fishing interests affected by the ability of Ireland to invoke the Hague preference, which depleted our share of some stocks, notably cod. With the absence of the Hague preference, there will be some other uplifts in those areas.

Fishing has every right to feel betrayed and let down by this Government. The industry was promised a better deal, but they have not got one. Fishers fear some of the extra quota is just paper fish—fish that might not even exist, or are hard for British boats to catch. The promise to immediately exclude European boats from our 6 to 12-mile limit was broken, and the catch app and export systems are cumbersome, bureaucratic, and home-grown Tory red tape that the industry can ill afford. Shellfish exporters feel particularly betrayed: they are unable to export until April, because the Government failed to negotiate a deal that included them.

Yesterday, the PM promised compensation for those affected by export chaos, but Downing Street seemed to U-turn on this less than six hours later. Fishers deserve better than this incompetent Government, so when will the distant water fleet be able to go to sea again? When will the new avalanche of paperwork be scaled back? When will the £100 million be available for coastal communities? When will British fishers get the extra quota they were promised? When will the requirement to land more British fish in British ports finally be introduced, and when will this Government actually start standing up for our fishers with action, not just soundbites?

I know that in previous debates on fishing the hon. Gentleman has spoken of the importance of tariff-free access to the EU market, and the trade and co-operation agreement gives our fishing export businesses that access, which is particularly important for the shellfish sector.

It is not the case that shellfish cannot be exported at all until April. There have been certain issues regarding bivalve molluscs and getting the correct paperwork, and some issues around depuration and the ability to export stocks that have not been purified prior to export, but they do not amount to a ban on the export of shellfish.

The hon. Gentleman mentioned the distant water fleets. It is a convention that in the absence of agreements on quotas—this is pertinent to the agreement we have with Norway—access is suspended, but we will seek access to Arctic cod in the usual way for those parts of our fleet that benefit from that stock.

The hon. Gentleman asked when fishermen will see the uplift in quota. As I made clear, the EU is giving up 15% of its catch in our waters in year one, so fishermen will see some important advantages in this very first year.

We are seeing teething issues arise for our fishing exporters, with health checks and customs documents causing some backlogs in exports to the EU. Will my right hon. Friend outline the steps his Department is taking to ensure that exporters know what is required of them, so that those challenges can be eased?

We have been working closely with authorities, particularly in France and the Netherlands, to understand the sorts of issues that they are finding. At one end of the spectrum, many of the issues are quite trivial, such as where the stamp is; we have even had questions about the colour of the ink used on the forms, pagination and the way pages are numbered. Those are all trivial problems that can be sorted out—indeed, some leeway is being given for such issues in France, given that there is sometimes a difference in interpretation. There are other, more significant issues, notably around import agents failing to pre-declare properly or at all. We are working closely with the industry on those, with regular meetings, to ensure that they are addressed.

“Stay in the UK,” they said in 2014; “Leave the EU,” they said in 2016; “A sea of opportunity,” they said in 2020—bad advice, backed by lies and disinformation, all down the line, and Scotland’s fishing industry is among those feeling the betrayal. Now, Scots businesses cannot get their product to their European markets, EU fishing fleets can still access our waters, and we are still subject to the CFP but now do not have a say in how it runs. Scots businesses have lost many thousands of pounds and communities are facing job losses. DFDS cannot take groupage loads until Monday at the earliest, because the Government made a mess of the paperwork system. Businesses may close and people may lose jobs because this Government messed up. Jimmy Buchan of the Scottish Seafood Association—once a Tory election candidate—said that Ministers are not doing enough. The sales director of John Ross told UK Ministers that the Brexit deal was worthless unless they took action. It is not just “teething issues”, Minister. It is chaos, and it is costing businesses shedloads of money. Who exactly do they apply to for compensation? Shall I give them the Minister’s mobile phone number?

As I said earlier, there have been some teething problems, particularly in Scotland, I know. DFDS established a hub system at Larkhall so it could group consignments together. It has had some difficulty getting the right information from some of the fishing businesses in Scotland. Food Standards Scotland is working hard to address the issue.

The hon. Lady says that the Government made a mess of the paperwork. She will be aware that the paperwork is the responsibility of the Scottish Government. I have spoken regularly to Fergus Ewing about this, and he maintains—I believe he is right—that there is no lack of export health certification capacity; the vets and the fish certifying officers are just trying to get used to complicated new paperwork. I will talk to DFDS later today to see whether there is anything we can do to help, but I pay tribute to the work that it and Food Standards Scotland are doing to work through some of the technical differences. The short answer to the current challenge is to work through each of the problems as they present themselves, so that they are not repeated and goods can flow smoothly.

The fishing community in Grimsby welcomes the deal agreed by the Prime Minister, particularly the springboard it gives us to take back more quota as the years go on, and our tariff-free arrangements. Can my right hon. Friend confirm when the details of the £100 million fund and the international quota swaps will be made available to us?

My hon. Friend’s constituency is home to the UK’s fish processing industry, and tariff-free access will be important for some of those sectors. She asked two specific questions. The first was on the new £100 million fund that the Prime Minister announced. We are working on the details of that and will in the next month or two consult on how the fund should be allocated and used. Secondly, she asked about the issue of swaps. Those negotiations with the European Union and the trilateral with Norway and the European Union are about to commence. We envisage that, probably in the next couple of weeks, there would be a final conclusion on how we manage the North sea, and that would include swapping arrangements.

Eighty-five per cent. of the seafood caught by my local fishing fleet goes to customers in the EU. Along with boats right across the UK, they are currently tied up, as logistics firms will not accept any more produce due to the current customs chaos. Can the Secretary of State explain how he plans to resolve what he dismisses as “teething problems” and clarify what the Prime Minister meant when he talked about financial compensation for their losses?

We are working closely with the industry and DFDS to identify what we can do to address some of the problems that have been encountered. I am aware that late last week, DFDS suspended the groupage service that it was offering to smaller consignments and has focused on single larger consignments, particularly of Scottish salmon. I understand that it believes it has sorted out some of those problems and intends next week to resume some of those groupage consignments. There is a challenge here: in a group of several consignments, maybe three people would have got the paperwork right, but if one person has not, that can cause issues for everybody. We need people to pay attention to the detail and to get that paperwork right. We are working closely with the industry so that it can acclimatise itself to this administrative process.

My constituent Andrew Trust, the owner of Ocean Harvest, is finding that the high cost of border control charges, export health certificates, the need for a fiscal representative in France and the uncertainty that his fish will reach the buyer in the EU pose a real threat to his business. What compensating measures will the Government put in place?