On 7th December 2017, MPs took part in the annual fisheries debate. This is a tradition I have enjoyed taking part in over the years but this year I was, unfortunately, unable to attend as I was hosting the Taiwanese Ambassador to the UK in Cleethorpes on the day of the debate. Had I been able to attend, this is what I would have said:
Few issues symbolise the UK’s exit from the EU better than the issue of fisheries. This is a subject matter that is of great historical importance to the UK and the decline of the industry, particularly throughout the period of our EU membership, is widely documented. Fisheries policy was a key theme of the referendum last year and a key area in which we can take back control after March 2019.
Fortunately, Grimsby’s seafood industry is the largest it has been for nearly a decade with around 5,000 full-time roles in the processing sector. It is important to note that 30% of this workforce is of Eastern European origin and so post-Brexit access to labour and skills is an important element of the ongoing negotiations with the EU. The success of businesses such as Young’s Seafood and the expansion of Morrisons’ operations, as well as strong growth for smaller processers, has been decisive in the success of the sector in our local area. The port complex that covers Grimsby, Immingham and Killingholme is the UK’s largest by tonnage with 54 million tonnes recorded annually.
Post-Brexit, the industry has potential to grow even further. From April 2019, the UK Parliament will be able to decide its own agriculture and fisheries policies. This will be the first time that this has been possible since 1973 following to the decision of the British people to leave the European Union.
The UK was allocated €243.1 million in fisheries funding from 2014-2020, funds which are matched by the UK Government. I welcome the Chancellor’s reassurance, given in August 2016, that EU structural funding for the sector will be covered and hope that the Government will use the Brexit dividend to continue to provide at least the same level of financial support for the industry in the longer term as this will be vital to coastal communities.
The industry will be a key component of the Brexit negotiations. Earlier this year, I asked the Prime Minister directly for assurances that the seafood processing industry will be a key part of the negotiations and was pleased that she confirmed this as she noted that the Government wants to “ensure not only that we get a good future for our fishing industry, but that those parts of industry that rely on fishing will also have a good future in the UK” (PMQs, 29 March 2017).
Of course, the UK will still want a positive, friendly relationship with our European neighbours. The simple issue of our geographical proximity to the EU and Nordic states makes an effective and immediate co-operative relationship absolutely essential. Obviously, the EU will want the same and this has been made clear in public and private. The opportunities are now also becoming more widely acknowledged internationally. At the World Seafood Congress, which was held in Grimsby in September, British Ambassador to Iceland, Michael Nevin, made this clear when he said: “Given the two governments’ strong commitment to free trade and our desire for as frictionless as possible future arrangements… the increasing sophistication of the sector could be further exploited.”
A sensible free-trade deal, combined with reforms that we can make as a new third party state such as regulatory reform and cutting bureaucracy, will bring the price of food down which will be welcome news to everyone in the UK.
In a statement to BBC Look North, on 14th November this year, the Department for Environment, Food and Rural Affairs recognised how important the fisheries industry is and emphasised the Government’s commitment to “securing tariff-free frictionless access for goods and services into the European market to help maintain a sustainable and profitable industry.”
I was delighted to hear the Secretary of State for Environment, Food and Rural Affairs, say that the Common Fisheries Policy, which has been so detrimental to UK interests, will cease to have effect in the UK from April 2019, the moment the Article 50 process is completed. Clearly there is a great deal to decide in a short space of time, but if politicians and businesses on both sides of the negotiating table act rationally and sensibly, this should not be too arduous a task to achieve.
In a similar fashion to how we will have our own seat on the World Trade Organisation, once independent, the UK will be able to join the Regional Fisheries Management Organisations enabling us to take part in the annual fisheries negotiations to argue against the gross difference between the UK’s current quota shares and the resources located within UK waters. Having our own voice in these negotiations will make change much more likely. We can also insist on a straightforward quid pro quo of access to UK waters for non-UK fleets, something that we currently do not have.
I recently hosted a delegation of local representatives of the seafood industry in Westminster during which we had meetings with a number of influential figures. Representatives from Youngs, Seachill, and Seafood Grimsby & Humber – representing 150 businesses which employ 5,000 people and sell more than £1.5bn of seafood across the UK – joined me and Melanie Onn MP, to speak to George Eustice MP, Minister of State for Agriculture, Fisheries and Food.
We also had meetings with Mark Prisk MP (the Prime Minister’s Trade Envoy to the Nordic Regions) where we identified potential areas in trade where Brexit could cause problems, in order that they can be mitigated as early as possible. We also discussed the vast opportunities for trade that will be open to us as an independent trading nation. Following on from this, we met with Rishi Sunak MP who wrote an excellent report on Free Ports. This is an idea that could boost the local area’s economic output significantly, not only in relation to the fishing industry but also to other local industries such as oil and gas.
Only by leaving the EU will Britain be able to implement a Free Port policy which would allow for cost-free seafood trade around the world, with no customs checks or import tariffs. This was recently somewhat miscommunicated in the media, whereby journalists derided the fishing industry for apparently wanting an exemption from Brexit, despite having supported the vote to Leave the EU. What they failed to appreciate is that a Free Port policy would not be possible under EU rules owing to the Customs Union and EU State Aid laws.
The Centre for Policy Studies believes that such a policy could create around 86,000 jobs if it performs as well in the UK as it currently does in the United States. That vast majority of these new jobs would be outside of London providing a welcome economic boost to areas that truly need it. On a practical part, the policy is fundamentally simple to introduce and can be implemented in a short period of time.
At International Trade Questions earlier this month, I was able to ask Dr Liam Fox MP, Secretary of State for International Affairs, about the policy. In his response, Dr Fox agreed that Free Ports were worth exploring and committed his Department to look closely at it. He also highlighted the potential for overseas direct investment to help local businesses expand. It is clear that the future of the fisheries sector is very bright. Coastal communities can thrive once again if businesses and politicians seize the opportunities of Brexit.
As a final note, I want to share a very interesting fact highlighted by Simon Dwyer, spokesman for Seafood Grimsby & Humber, at a recent meeting. “You are never more than 10 minutes away from Grimsby fish”. Local produce is now stocked in restaurants up and down the country. Every major grocery retailer has it which, given the proliferation of supermarkets, means you are never far away from accessing and enjoying for yourself, Grimsby’s greatest export.