Fisheries Secretary Richard Lochhead
Scottish Fishermen's Federation - Annual Dinner
October 1, 2009
It's a great pleasure to be here again at your annual dinner.
I was just thinking about how you were saying at the beginning with your remarks that this might be the first dinner for some of your guests this evening and it made me think about how old I'm getting as this is my 11th consecutive dinner with you. Of course it is my 3rd consecutive dinner as Minister for Fishing in the Scottish Government.
I regard it as a privilege to be the Minister responsible for promoting and defending an industry that makes such an important contribution to Scotland.
The diversity of the SFF's membership reflects your industry because your membership that ranges from pelagic fleets in Shetland or Buchan, to the vessels landing our world famous langoustines in Stornoway or Eyemouth, and of course to the white fish fleet that brings ashore our family favourite of North Sea haddock.
It is this very diversity that makes the industry so special and the SFF plays a vital and effective role by providing our fishermen with a strong voice and a greater strength in unity.
And the Scottish position is stronger when the Scottish Government works closely with the SFF. And I believe the Scottish Government has a proud record of standing up for your industry and that's because you are an industry that the people of Scotland truly value.
The people of Scotland, and consumers throughout the world, thoroughly enjoy healthy and tasty Scottish fish - the fruits of your labour. You land the raw materials that the innovation and skills of our processors transform into the most wonderful seafood.
And as your Minister, I recognise the industry's economic contribution to the national economy and I am proud how fishing is woven into a nations identity and rich heritage and I admire the bravery of our fishermen who day in day out experience the risks and often harsh conditions of our seas to bring food to our table and of course over the past year we know that many men have once again paid the ultimate price in doing just that.
But let me say that I also share your anger and frustration that despite your leadership and good work in recent years that today our industry continues to face considerable challenges - and many difficulties that could have been well avoided.
2009 has been a very tough year for many of you so far. And last year, after fuel prices went up like a rocket before easing off, this year brought more draconian regulations and a very challenging trading environment as a result of the global recession that has hit your key markets.
And you've had to cope with complex and last minute restrictions on the west coast combined with substantial effort cuts for fleets that catch cod - or that other people like to tell us catch cod.
And only yesterday, I met the Scallop Association to hear about many of the external factors affecting the current and future profitability of that important sector. And indeed I met our island MSPs to discuss the pressures facing Shetland, Orkney and the Western Isles.
So I expect that for many of you 2009 will turn out to be a year you will probably want to forget. And it's no secret that 2010 is likely to be tough too.
As ever, we spent much of this year attempting to make sense of last year's agreement and we shouldn't forget that the alternative deal on the table at the time was much worse than what we actually brought home from Brussels.
The Commission of course dropped its bombshell with a proposal to essentially close down the west coast of Scotland but we worked together to see off that threat. But the result still brought its own challenges.
The white fish fleet in particular has struggled to cope with the new restrictions.
We all accept that white fish stocks in the west coast are in a dire condition and we have a duty to do everything we can to regenerate these waters. As you know, our west coast taskforce is working hard to present an alternative regime to the Commission in the coming weeks and the Scottish Government will work hard to put in place far more sensible arrangements. The onus is on all of us here in this room to present a credible case.
Days at Sea
The 25% cut in days at sea was partly offset by the innovative conservation measures developed in Scotland to help the fleet buy back time at sea.
And the involvement of fishermen in decision making is very clear for those who sit on the Conservation Credits Steering Group and who have faced difficult choices over the allocation of days and the controlling of effort. This has involved agreeing to restraints on the industry when it would have been far easier for them to have thrown their hands up in the air and just given up.
You recognised that it is important that we in Scotland take responsibility for managing our effort effectively.
I am very grateful for the cooperation of those involved and the wider industry for acting so responsibly but we do need to continue in that sprit for the remainder of this year despite the short term challenges that we all face.
Conservation Credits is a success. The Irish, the Danish and the Dutch have all shown a great interest in the scheme and I think it would be fair to say that DEFRA's scheme is very similar to ours.
However, given that the challenge of managing effort, which is intensifying with each day that passes, as we get close to the end of the year, it's clear we also have lessons to learn. And the sooner we decide the best method for allocating next year's effort the better. If we can, we must prepare for all possible scenarios and not wait for 2010. Many fishermen have suggested changes including perhaps allocating effort on a quarterly basis to ensure it lasts throughout the year.
But whatever we decide, all our leadership qualities, and the industry's resilience, will be tested to the limit in the months ahead.
When we met in Brussels last week Joe Borg stated he has no intention of reopening the Cod Recovery Plan - and that means a further reduction in effort in 2010 and again the year after. This perhaps in the timeline we all expected.
Many say that we don't need a cod recovery plan at all. But my view is that we do need to rebuild cod stocks. Cod in the North Sea is still well outside safe biological limits, even if there are good signs of improvement thanks to your good work. And on the West Coast the situation is also quite bleak. Mortality is still too high in both areas, and our surveys this year show that recruitment in the North Sea is again very weak.
But that doesn't mean I think that every aspect of the current plan is fit for purpose. To me there are three real blindspots:
- The days at sea regime that has been put in place can prevent many fishermen from catching other stocks like monkfish, megrim and haddock which often add far more to their bottom line than cod does.
- It brings many people into the effort regime who hardly catch any cod at all. I'm thinking particularly of many of our West Coast prawn fishermen. And that hardly seems fair to anyone.
- And crucially, no matter what mechanisms the plan comes up with, the discarding of cod is still happening on a huge scale. It still has not solved that problem in the North Sea and the West Coast. For example, ICES tells us that in 2007 and 2008 nearly 45,000 tons of North Sea cod were dumped across Europe. If we'd had been able to land that amount of cod rather than throw it away, it'd have been worth around £90m assuming the same market prices. I think every single person in this room agrees that that is sheer economic madness.
I presented the Commissioner with a copy of the Seafish economic assessment of the current restrictions that we commissioned - and as Iain said it's not comfortable reading. The Commissioner promised to read the report and we will be seeking measures to ease the pain for the fleet and for the report's warnings to be heeded.
But Cod is of course just one of the rich stocks in our water.
At this year's negotiations we will be ensuring that we have the opportunity to fish sustainability for our other commercial species.
Quota Negotiations
We certainly can't ignore the scientific advice. If we do we will simply store up more problems for the future.
With that in mind the scientific advice is mixed with a quota increase for North Sea cod expected along with a proposed cut in the nephrops TAC and a reduction in the haddock TAC under the management plan.
The pelagic stocks look healthier with the herring stock appearing to have stabilised after the decline of the last few years. And the mackerel stock remains healthy, though I am very aware of the threats posed by others to its long term management and the need for the Commission to take a very hard line against irresponsible behaviour in other fisheries. And it is with these threats in mind that I can inform you that the new controls measures placed in third country vessels fishing in our waters have been effective. Norwegian vessels as we speak this evening are being informed they have reached their allocations and must cease fishing in our waters. The level playing field we have often talked about therefore but sometimes failed to see is actually happening this evening and I listen to the need for a strong line to be taken with the Norwegians from Iain Gatt in his opening remarks and I can assure Iain that is actually happening as I said this evening. And I guess we have to pay tribute to Allan Gibb from the Scottish Government who has been working very closely with the pelagic sector. The pelagic sector has made very strong representations for a long time to get the action that's being taken this evening taken so well done Allan to your efforts working with the pelagic sector in bringing that to a success this evening.
On the west coast the situation remains grim with the advice for a sharp cut in the nephrops TAC and zero catch recommended for the three main whitefish TACs. And we will be pursuing fair deals in the other valuable species in particular the valuable monkfish quota which we want with flexibility and megrims as well.Buyback Options
Gear Trials
But we need time at sea to catch quotas. So we must continue to develop conservation measures to allow the fleet to buy back days through the adoption of selective gear and technical measures.
RTCs
As we have seen, where we are prepared to lead, as Iain said others will follow and this is best displayed through our adoption of Real Time Closures (RTCs) which they have successfully allowed our fleet to 'buy back' days and prove our conservation credentials.
CCTV
And one new initiative is the use of CCTV on vessels. Having seen for myself the simple and effective cutting-edge technology, I do believe this could make a major contribution to ensuring fisheries management is based on accurate data and help achieve a reduction in discards.
CCTV only looks at the catch and gear handling aspects of a fishing trip. We now have our pilot underway. I know some fishermen are suspicious of on-board CCTV but if we can deliver benefits for the fleet and conservation we should at least be prepared to explore its potential.
So we will be working with Denmark and Germany to see if this has a role in 2010. And we must try to ensure of course that fishermen are rewarded with catch quotas and re-defining effort as actual fishing time.
But ladies and gentlemen all your good work is being undermined by the Common Fisheries Policy.
Any policy that encourages discarding is fundamentally flawed and lacks credibility with the fishermen, with the scientists and with consumers as well.
The CFP is a crazy policy. It must change, and now, not in three years time, otherwise it will continue to dismantle our fishing industry. And it is the CFP that should be dismantled not Scotland's fishing industry.
It is increasingly clear to me that TACs and single species quotas don't work in our mixed fishery, especially combined with effort controls.
And we need a discard free policy based on "catch less and land more". A policy that regulates what is removed from the sea - not landed ashore.
And we need an effort control based on fishing time and not time at sea.
We need a policy that not just reduces but eliminates discards.
Tonight I want to lay down a challenge to the EU and the UK Government. Work with us to implement the necessary changes to the CFP now. Our industry and our stocks can't cope with a further two or three years of damage whilst hanging around for change. Let's accelerate the timetable for change and do what's right for Scotland's fishing industry and for the fish stocks.
We all have a role to play. I will seek quotas that will allow us to land what we catch, and we need the support of the EU and UK. But we also need your support as well. For instance, no longer can we allow high grading or any unnecessary discarding of marketable fish. And I will now be meeting the UK Minister next week to seek his support for Scotland's case.
Let's try and work together as hard as possible to make discards history.
The long awaited CFP review certainly offers the opportunity to put in place a new fisheries policy for Scotland.
Fisheries Management
Fisheries is a finite yet renewable resource. Its abundance fluctuates from month to month never mind from season to season.
But our system at the moment suffers from multi-layered and haphazard decision making. We have our Government here in Scotland, and we in turn must work with the UK Government in London and then we have the Council of Ministers and then we have the European Commission in Brussels as well. And as Bertie Armstrong said soon the European Parliament may also have a bigger say over the Scottish fishing fleet.
Is it any wonder then that the Inquiry into the Future of Fisheries Management stated that we need to return decision making to the local and regional level.
The Scottish Government's guiding principle throughout the CFP review will be that decision making must be returned to Scotland.
We will place fisheries conservation at the heart of our policy and we will work in partnership with neighbouring countries.
And we will demand that our fishing communities retain their historic fishing rights as Bertie Armstrong said - it's their birthright. But I have to say that's why I will ensure the reform of quota management stays firmly on the table and that the Joint UK Ministerial Group we set up in May must deliver safeguards for future generations of fishermen. As I said last year at this dinner, if we allow quota to leak out of Scotland then the birthright you ask to be protected will leave with it.
One thing that unites everyone in this room is that we all want a Scottish fishing industry that is both sustainable and profitable.
But we need to take responsibility for getting our own house in order. We can't always point the finger of blame for everything that happens at Brussels.
There are many many things I believe, you believe we can do for ourselves, and do a lot better.
We have to make for instance most of the fish we do land in Scotland. After all, the bottom line of any vessel is ultimately determined by the market price and not simply the volume caught.
Landings for the Market
In the current economic climate, many of you have been telling me in the last few months there is a greater need than ever before to better co-ordinate landings for the market.
And quality is also just as important as quantity. I know many of you have ideas about how to improve quality and achieve better prices.
If we don't find ways of improving prices and cutting costs we will be left with the lethal cocktail of high costs and low prices.
And I certainly agree with Iain Gatt that we should expand our domestic market. Scottish fish is harvested sustainably from pristine seas. Over 60 species are caught off our coastline yet we lag behind other countries when it comes to fish consumption levels. We are already funding more activity in Scotland to try and improve that record but I certainly agree there is a lot more we should be doing.
Producer Organisations
Can I also say that as we look to getting our own house in order and proving what we can do here in Scotland that the Producer Organisations also have a key role to play.
Many fishermen I have spoken to during this difficult year believe that we need to make our POs work better. They need to better focus on delivering catch plans and marketing strategies - after all that is what they were set up to do.
I am often told they could help the value of the catch by spreading the effort over the year to avoid gluts and ensuring that fishing activity is concentrated on what delivers the best returns.
In the face of rising fuel costs, increasing imports, the powerful retail chains and so on, POs could strengthen the bargaining position of individual fishermen.
And the industry of course has to rise to the challenge of meeting the increasing complex demands of consumers.
More consumers than ever before want the fish they buy to meet their own quality, ethical and environmental standards.
But your industry is already rising to that challenge. Consumers can already be assured that much of our fish has the stamp of sustainability.
Just think 10% of all MSC certificates globally are held in Scotland.
Eco-system approach
So the industry's environmental credentials have taken a giant leap forward in the last few years. And we now accept that the industry can no longer act in isolation. The so called "eco-system" approach demands that we recognise that fish stocks are just one element of the complex web of interconnections in Scotland's seas.
And fishermen know better than anyone else we need healthy seas to have healthy fish stocks.
And that is being reflected in Scotland's first ever Marine Bill which our previous speakers mentioned which is working its way through parliament. Our bill will ensure that the many industries that make their living from the sea are able to do so, but of course do so sustainably. And I'm sure the Members of the Scottish Parliament Rural Affairs Committee who will be handling this bill in the next few weeks who are here this evening. There is Maureen Watt, Convenor of the Committee sitting over here and MSP for North East Scotland, Liam McArthur, the Liberal Democrat MSP for Orkney, Karen Gillon, MSP for the Labour Party who is on the Committee as well and John Scott, Conservative Party MSP who sits on the Committee. Who are all here and listening very carefully to your comments safeguarding the fishing industry.
Conclusion
So I just want to draw to a conclusion some of these thoughts I have outlined to your this evening because the storm clouds may not yet clear for some time but we are in the Scottish Government determined to stand shoulder to shoulder with you to meet the challenges. And we must meet them head on and working together.
Collectively at a time of recession we must balance the short term requirement for cash flow against longer term benefits of investing in a sustainable future.
We shall always be constrained by the forces of nature and decisions taken elsewhere in the meantime. But despite all our difficulties we can see real signs of success. The pelagic sector, for example, is in good heart and enjoys the fruits of its investment.
The industry is making great strides in fisheries conservation and the fruits of your labour are highly valued by our society.
And even when we do disagree, be assured that the Scottish Government will only act in what we genuinely believe to be in your best long term interests.
And given the background against which we do meet this evening, the challenges and anxieties might all too easily crowd out the successes from our minds. We must never allow that to happen.
And you and I know that the Scottish Government can't solve every problem. But I can tell you that the Scottish Government will strain every sinew to safeguard this industry for the next generation.
Whether in dealings with London or negotiations in Brussels, we will stand up for Scotland.
And if we work together, we can steer this proud industry into profitable and calmer waters and most importantly of all continue to deliver the world's best seafood for the people of Scotland and beyond.