Tuesday, 18 February 2020

AND ANOTHER THING 

A Fishy Business

 

 

Throughout the 2016 referendum campaign the mantra of the Brexiteers was the now famous mantra ‘Take Back Control’. Fear ye not, we were told, upon our exit from the evil ‘empire’ the EU, we would no longer be subject to EU rules and regulations on everything from human rights, environmental rights, agriculture, fishing and so on.

Fishing only 0.1% GDP

Of the various elements, to which now we will no longer be subject, fishing is by far the least economically important comprising no more than 0.1% GDP but, emotionally, it has become a significant and potential stumbling block in future trade talks. In addition, it also provides a perfect example of the complexity of our interconnectedness with the EU and the concomitant difficulties of separation.

UN Convention on Law of the Sea – a de facto Common Fisheries Policy

So, ‘Take back control!’ Simply impose a 200 mile exclusion zone and then arrange negotiations with relevant countries and regions to inform them where they can fish, when they can fish and how much they can catch; easy peasy lemon squeezy… but hold your (sea)horses! To begin with we, along with our nearest neighbours, are signatories to the United Nations Convention on the Law of the Sea. As John Lichfield explained in the Guardian newspaper on 10.02.20, the Convention states that… ‘The United Kingdom is legally obliged to manage North Sea and Atlantic fish stocks with both Norway and the European Union. The Convention also requires, but does not oblige, the UK to consider the historical fishing rights of its neighbours.
Ooops! Don’t tell the Brexiteers, but the above sounds a bit like, well, a Common Fisheries Policy. Mm, haven’t we already got one of those?

The Current Quota System

The second element of ‘Taking back control’ relates to the quota system. Every year the EU distributes, on scientific advice for the health and maintenance of fish stocks, a fixed quota allocation to the relevant member states. The distribution of these quotas is then the responsibility of, in the case of the UK, the Department for Environment, Food and Rural Affairs (DEFRA) and thence gives each holder the right to land a certain share of the UK’s total allowable catch (TAC). I know this all sounds rather stodgy but bear with me because this is where it becomes interesting and just a tad ‘smelly’.

Selling and Leasing of Quotas 
 
Once the quotas have been distributed there is a significant trade in selling and/or leasing quotas.
*Taking England as an example, just three families on The Times rich list hold 30% of the quota. A further 49% is ultimately held by Dutch, Spanish and Icelandic interests who have bought up English vessels and quotas. See Crispin Dowler: https://unearthed.greenpeace.org/2018/10/11/fishing-quota-uk-defra-michael-gove/
In total, something like 96% of British quotas is in the hands of a small number of foreign owned and Rich List families. Only approximately 4% of fishing quotas are held by inshore or small scale fishermen. In effect, therefore, a cartel exists whereby governments allow quotas to be consolidated to a handful of super-trawlers while smaller, low impact fishermen who make up 77% of the total shipping fleet, have been progressively starved of access.
One final point to remember: in all this, in the context of ‘taking back control’ of all Britain’s catches 75% is exported to, guess where... the European Community!
Taking back control? Easy peasy!

*Who are the families on fishing's Rich List?
 Alexander Buchan and family are ranked 804 in the 2018 Sunday Times Rich List, with an estimated net worth of £147m. The family’s Peterhead-based Lunar Fishing Company owns or controls 8.9% of the UK’s quota holdings (739,153 FQAs), making it the biggest quota holder in the UK.
Jan Colam and family are ranked 882 on the Rich List (estimated worth: £130m). The Colam family-owned company Interfish is the second largest quota holder, with 7.8% of the UK total (643,927 FQAs)
Robert Tait and family are ranked 980 on the Rich List (estimated worth: £115m). The family’s Klondyke Fishing Company is the UK’s third-largest quota holder, with 6.1% of the UK total (506,953 FQAs).
Andrew Marr and family are ranked 567 on the Rich List (estimated worth: £209m). The family’s Hull-based Andrew Marr International owns or controls 5.1% of UK quota holdings (419,937 FQAs), making it the UK’s 5th largest quota holder. It also has minority stakes in companies and vessel partnerships that hold a further 5.4% of UK quota (445,981 FQAS).
Sir Ian Wood and family are ranked 77 on the Rich List, with an estimated worth of £1.7bn (a fortune built largely on oil and gas services). Sir Ian’s fishing business, JW Holdings, holds 1% of the UK’s fishing quota (83,463 FQAs) and has minority investments in businesses/partnerships that hold a further 2.3% (192,169 FQAs).


Fishy Business in Numbers (You do the maths}


  • 3 Times Rich List families hold 30% of England’s fishing quotas
  • 96% of British quotas is in the hands of a small number of foreign owned and UK 'Rich List' families.
        • 49% is ultimately held by Dutch, Spanish and Icelandic interests who have bought up English vessels and quotas.
  • 4% alone of fishing quotas are held by inshore or small scale fisherman
  • 77% of the total shipping fleet is made up of low-impact fisherman; they have been progressively starved of quotas
  • 75% of UK catch is exported to the EU 


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