Fisheries Secretary Richard Lochhead
Glasgow Fishing Expo 2009
May 15, 2009
It is a pleasure to be, once again, addressing you all during what continues to be one of Europe's leading annual fisheries events.
This month, the Scottish Parliament marks its 10th anniversary and the SNP Government reaches the half way point of our first term, so today it is good to have the opportunity to reflect on an eventful 2 years and look to the challenges and opportunities ahead.
It is appropriate that an event of this scale is held in Scotland. It reinforces the importance of Scotland as one of Europe's leading fisheries nation.
Sometimes it is good to pause and reflect on the importance of fishing to Scotland.
This small nation on the North West periphery of Europe is responsible for 20% of Europe's waters, some of the EU's richest fishing grounds, and high quality seafood products that grace shop shelves, our kitchen tables and the world's top restaurants throughout the world.
And the fisheries sector is represented not just by the many fishermen at this event but also by the many onshore businesses and organisations that represent innovation and industry - and industry is something we should value more than even before in these times.
At the end of the supply chain is the consumer who has the opportunity to enjoy the best seafood in the world. And last month, I was proud to see many Scottish seafood companies flying the Saltire proudly in the Brussels at the world's biggest Seafood Exhibition.
Fishermen, our processors and other industry players are at the centre of wealth creation for many of our communities. I want to see that role maintained, developed and recognised.
Of course, in today's world, fishermen have to become many things. 10. But our industry is innovative, determined and resilient. Our fishermen battle with the seas, with a multitude of regulation, with fickle markets and with frequently ill-informed media comment.
And the industry's resilience has never been more important than in recent times. Following volatile fuel prices, the backdrop to the past year has been a very difficult economic situation, which I know is having a serious impact.
The financial downturn has reduced the market value for many of our higher value species although others are faring better. And the industry is adapting to changing consumer behaviour and a challenging business environment.
Even with our stocks in good health, the vagaries of the market can derail the best laid business plans and fishing policies.
As a Government, through our Economic Recovery Plan, we have taken action to support individuals and businesses through the downturn. This has included pressing the UK Government to act where necessary, and one area which I have taken up with Peter Mandelson has been the lack of availability of export credit insurance, an issue which has been raised with me on many occasions by fishing businesses, most recently at the Brussels seafood exhibition.
And we have taken measures to accelerate payment of EFF funding to help the industry invest for the future.
The current challenges have underlined the need to ensure financial resilience within the industry. We need to know where the fleets strengths and vulnerabilities lie and how we can best ensure that the industry can weather this and future economic storms. To that end, in partnership with our advisory group the Scottish Fisheries Council we have commissioned a major economic study of the Scottish fleet. 17. This segment by segment analysis is directly relevant to the current economic circumstances and I'm sure the report, which I expect in a couple of weeks time, will prove to be hugely influential in our future fleet management policies.
Quality Seafood
But long term viability for fishing will depend on a good return from the market.
And a good return from the market partly depends on the level of supply. High volumes landings at times of falling demand is clearly counterproductive - yet vessels facing financial pressures day in, day out, have a living to make. I have heard processors bemoan the quality of whitefish caught in the spawning season. At this week's Scottish Fisheries Council, I was told of increasing nephrops landings at a time when processors' freezers were full and the nephrops market flooded.
At best, this system is uneconomic. At worst it is potentially wasteful. It is clear to me that we must better align the catching sector with market requirements.
Furthermore, we must ensure that value added by the supply chain benefits the primary producer - the fisherman. And to ensure that happens, we need to build on the many good examples within the industry where fishermen are closely linked through the supply chain to the processor who is linked to the retailer who is linked to the consumer.
These relationships can help better match supply with demand.
And I want to help the industry achieve that.
I'm therefore pleased today to announce that Iain McSween, Chair of Seafood Scotland, will chair a new Supply Chain Review Group.
Their work will ensure that our existing and new initiatives to maximise the value of landings are coordinated across the Scottish Fisheries Council's subgroups. I share your views that more must be done to strengthen the relationship between catchers and buyers so that we better catch for the market. I am keen for every fisherman in Scotland to look beyond the quayside to the market - to the buyer and to the consumer.
Seafood Campaign
Joining up the supply chain, and adding value are two ways to improve the market.
Another is to increase demand. A particular action that I can announce today is support to invigorate just such a demand for seafood.
Through the work of Seafish and Seafood Scotland, much is already being done but there is scope to re-energise this. And demonstrate to consumers the benefits of eating seafood. This reflects both the importance of supporting a core Scottish industry and also recognises the value of fish in a balanced diet. As we are all aware, the Food Standards Agency recommends consumption of 2 portions of fish a week - imagine the impact on the market if we got that message across to the people of Scotland - and a population whose health record is in need of repair.
And to help promote Scottish seafood, I have asked Seafood Scotland to launch a young seafood chef competition. Aside from recognising and encouraging skill and talent in the food service, this initiative also encourages innovation.
We are also working with the media and retailers to help promote seafood to readers and viewers across Scotland. Seafish has plans for comprehensive promotional work throughout the year. The Scottish Government is also committed to promoting consumption as part of a balanced diet and demonstrating that seafood is healthy, simple and cost effective within the household budget.
Seafood will also be highlighted at a number of promotional events, particularly those around Homecoming such as the Taste Festival in Edinburgh.
And to meet what will hopefully be increasingly demand for Scottish seafood, we must ensure that we have continuity of supply. And that means we have to look after what is a fantastic and invaluable renewable resource in our seas.
Conservation as a source of strength
So another investment for the future is effective fisheries conservation. We all know that effective conservation is the absolute bedrock of the long term viability of the industry.
But what is becoming increasingly clear is that good conservation practice is important for the reputation of Scottish seafood products, the trickle of Marine Stewardship accreditation is rapidly turning into a flood.
Marine Stewardship accreditation was given to the Scottish mackerel fishery this year, a major achievement for the pelagic industry whose foresight and innovation should be recognised. I also recently visited Stornoway where I sampled some of their langoustines from their newly accredited Nephrops fishery. I understand that because of this accreditation they are going down a storm in France.
Consumers in the 21st century want the stamp of quality and value and that also increasingly want the stamp of sustainability - our fishermen are increasingly delivering that.
I have had the opportunity to meet forward looking fishermen in many of our coastal communities.
The people of Scotland wish to see our fishing communities thrive and benefit from the fishing grounds on our doorstep, and for future generations of fishermen to have similar opportunities to the current generation.
SQMLS
My desire to see our fishing communities flourish is at the heart of our proposals for reform of quota management arrangements.
There has been considerable discussion about our proposed future quota and licensing arrangements in recent months with significant disagreement about the legality of our proposals. I firmly believe our proposals are both legal and enforceable.
But, as I explained earlier, both the UK and Scottish Government have agreed that now is not the time for a long-drawn out legal battle. And that's why all four fishing ministers have agreed that we will now sit down and address how we can safeguard the future of our fishing communities and the role that quota management will play in that.
Fisheries is devolved, it extremely unsatisfactory that on something as important as fishing quotas and vessel licensing, disagreement and uncertainty exists on the extent of devolved powers, and this is something that will need resolved. The UK Government's message seems to be that, yes, fisheries is devolved, but just not as much as you might think it is!
If we don't get quota management right then future generations will look back in horror at how we failed to secure their future.
This is an issue that is vitally important to the industry's future and one that I will also take forward in the Governments' National Conversation which is the discussion on the powers of the Scottish Parliament. In this the 10th anniversary of devolution, we have the UK Government claiming that devolution of fisheries is limited. Ultimately, we want the people of Scotland to have their say who should be in charge of fishing policy. Our independence referendum will offer that opportunity.44. In the meantime, I will be shortly be announcing three initiatives to attract new entrants into the industry, modernise vessel licensing arrangements, and improve fish Producer Organisations.
Partnership with the industry
These initiatives will help address economic difficulties and support our communities. But these are not the only challenges we face.
I said earlier that often the best laid plans and fishing policies can be derailed and the derailment is often caused by the Common Fisheries Policy and decisions taken in Brussels.
Prior to taking office, when I was on the outside looking in, my view of European fisheries negotiations was that they were bizarre and counterproductive. My experience of attending the negotiations in my role as Minister tells me that the reality is actually worse.47. Horse trading, bun fights - staying up through the night to see which member state blinks first! - The current end of year decision-making process leaves me angry and frustrated. And I know that view is shared by every Scottish fisherman.
Half a dozen Commission officials sitting in a room with a few computers between them - number crunching the latest compromises agreed between dozens of countries, involving scores of species in dozens of fisheries - is quite simply ludicrous and damaging - damaging to fisheries conservation, to our economy, and to the future of our fishing industries.
Just think. In Scotland alone, the Government and the industry prepare for each year's negotiations by taking into account the science and condition of many species in our waters, the needs of fishing communities on our east coast, west coast - mainland Scotland and island communities - deep sea and inshore.
And that is just Scotland which is currently part of the UK which is one member state of 27 on the Fisheries Council.
Last year, we saw the latest example of what is produced by remote control micro management in Brussels.
Most challenging, of course, are the effort limits imposed through the cod recovery plan and the catch restrictions in force in West of Scotland waters.
Many sectors are doing well - some like the pelagic sector, extremely well.
But many sectors face challenges.
Last December we found ourselves struggling to negotiate a Cod Recovery Plan, an agreement with Norway on shared North Sea Stocks, regulation of West of Scotland whitefish fisheries, and international agreement on important pelagic stocks through the NEAFC process.55. The initial proposals were completely unacceptable. A straightforward 25% in fishing effort this year, with further stringent cuts in later years and complete closure of the West of Scotland whitefish fishery.
It was a massive challenge to come away from Brussels with anything approaching a survival package. But it was what we had done in 2008 with our system of voluntary real time closures which gave us the influence and credibility. As the Press and Journal put it:
"Forward thinking by the Scottish industry on days-at sea concessions, linked to conservation efforts by skippers, appears to have made the rest of Europe sit up and take notice."
We did achieve many of the aims the industry asked us to achieve. A 30% increase in North Sea cod quota and substantial increase in mackerel quota. And the flexibility to employ conservation measures to buy back days at sea.
We worked closely with the industry during these very difficult negotiations. And without their input, the ever more complex December Councils would have resulted in far worse outcomes.
Days at Sea/West of Scotland
From the heat of that battle came the harsh reality of the following weeks. Officials and industry representatives jointly strived to piece together a set of interim arrangements which would provide vessels with effort allocations sufficient to catch their quotas.
A West of Scotland Task Force was established to help the industry adjust to the new regulations.
EFF funding has been allocated for a variety of on board and selectivity investments, including more selective nets, more fuel efficient trawl doors and fuel flow meters.
The effort scheme has been designed in the knowledge that we have to stay within tighter Scottish ceilings. But, even in these tougher conditions, it's crucial to me that we keep alive the spirit and enthusiasm of the Conservation Credits scheme that we launched with the industry last year. The test of partnership comes in the tough times. We must do what we can to offer skippers flexibility and options to enhance their profitability.
That's why - in the days at sea scheme for 2009 - we worked hard to provide flexibility in a tight situation.
So, as the SFF put it, quite fairly I think, between Government and industry we've made the best of a pretty challenging situation.
But it is abundantly clear to me that the volume of change that you've had to deal with in the last few months has been very difficult, particularly when combined with the effects of the economic downturn.66. That's why I have made it clear to the Commission that we urgently need a new appraisal of the impact of the cod recovery plan and the restrictions placed on West Coast fisheries especially in light of the changed economic circumstances. And we must not even begin to contemplate further reductions in effort until we know the impact of the current measures.
I've made this point to Commissioner Borg in person. And to my UK counterpart.
Other Stakeholder groups
That partnership approach is evident in all aspects of Scottish Government fisheries policies. It has made the Scottish Fisheries Council a success. We are a small nation and can make the most of short communication channels and ability to all get in the same room and seek solutions
The SFC gets all the players around the table, catchers, processors, salesmen, retailers, financiers, environmental organisations, fisheries scientists and managers. It is amongst the most comprehensive set of stakeholder/Government arrangements in Europe. The Scottish Fisheries Council ensures Government policies are informed and tailored to best suit the needs of the industry.
At partnership at a local level is important as well and that's why we established and refined the Inshore Fisheries Group programme. The National co-ordinator and IFG members will be providing further details on the work being carried out on IFGs at a seminar tomorrow.
Managing our seas
Inshore Fisheries Groups are about managing our seas. And so is Scotland's first Marine Bill.
There are now many industries that use our seas - some traditional like fishing and other new sectors like renewables and marine wildlife tourism.
So pressure is growing on use of our marine area.
Through extensive discussion and rational argument, we were able to convince the UK Government that all Scotland's waters are best managed by Scotland.
Marine Planning and Nature Conservation responsibilities will be given to Scotland through the UK Marine Bill, for all our waters. This means a more joined up system in Scotland in which we can ensure that competing demands are balanced to best achieve sustainable economic growth.
I intend to ensure that fishermen's voices are given due attention. We have already secured the say over where and when marine protected areas will be established so we in Scotland, and no-one else, can ensure that any decisions are science based and take into account the impact on vital industries such as fisheries.
But this is not a job for Government alone. The industry itself must continue to engage with marine conservation and marine planning issues, both at a local level through IFGs and at a national strategic level. I think many in the industry appreciate that.
There are therefore many challenges the industry is facing; economic downturn, ill fitting fisheries regulations, competing demands on the marine environment, the needs of fragile communities.
Standing up for the Scottish Industry
And this brings me to my final theme. Standing up for the Scottish industry.
I believe we are entering a critical period for fishing in Scotland. The publication by the European Commission's Green Paper on the failure of the Common Fisheries Policy heralds a new debate on the future of fishing across Europe.
I have already raised the absurdities within the current system - as system that in principle allows a land-locked country like Austria a greater influence over fisheries than we have. And I am increasingly frustrated by the ill fitting regulations imposed on the Scottish fishing fleet. The CFP represents the single worst example of micro-management in EU policies.
The scandal of discards is one example of the CFP's damaging results.
However, we can make improvements through more appropriate quotas, selective gear measures and spatial closures. I am proud that Scottish fishermen have been in the advance guard of actions to avoid the catching and discarding of stocks. The jigging machines used in the pelagic industry are a great example of innovation to catch less and land more.84. Today's challenges and long standing issues like discards underlines the reality that the CFP has not served us well, and why we want to see decision making returned to Scotland.
The SNP Government will make the case for decision making to return to Scotland and we will make a monumental effort to shape EU fisheries policy in Scotland's interests as long as we have a CFP.
Inquiry into the Future of Fisheries Management
To help us, earlier this year, I established an eminent panel of fisheries experts to develop alternative models of fisheries management. The Inquiry into the Future of Fisheries Management, chaired by Alan Campbell, will be travelling across Scotland, taking views from stakeholders on fisheries management policies.
Commission Green Paper on reform of the CFP
The Commission published their Green Paper highlighting the CFP's flaws and for that at least, the Commission is to be congratulated.
I have had early discussion involving a number of you at the Scottish Fisheries Council held earlier this week. There I heard loud and clear the desire to keep Relative Stability shares and a mistrust of rights based management solutions.
The Government's key aims in any sustainable fishing policy include effective fisheries management, the return of decision making to Scotland, a role for industry at the heart of decision making, and the protection of our historic rights.
I am sure that all of you here today appreciate the importance of the forthcoming debate and the importance of Scottish views in informing that discussion. My officials are planning a series of events which I hope will provide you with adequate opportunities to feed in your views. We will again need to work together to meet this challenge. I am confident that we have the vision, the resilience and the reputation to be major players in shaping the future of fisheries in Europe.
Conclusions
It has been a momentous two years. We have all faced many challenges. You have worked hard to overcome these. And in the process you have enhanced your reputation both in Scotland and across Europe. Who would have believed, a few short years ago, that the Scottish fishing industry would be recognised, across Europe, as at the forefront of conservation effort?
Fishermen in the 21st century will need to be conservationists, food producers and fishery managers
The job of the Government is to support you in these roles to ensure you can all continue to make your invaluable contribution to Scottish society for generations to come.