Chamber
Plenary, 05 Mar 2003
05 Mar 2003 · S1 · Plenary
Item of business
Subordinate Legislation
Fishing Vessels (Decommissioning) (Scotland) Scheme 2003<br />Sea Fishing (Transitional Support) (Scotland) (No 2) Scheme 2003
I shall come on to the detail of that. In general terms, let us be absolutely clear that, essentially, there has to be a contract between the Executive and the vessel owner. Therefore, it would be irresponsible for the vessel owner to submit a bid if they were not able to discharge existing debts. That is a difficult issue. During the Rural Development Committee's meeting yesterday, Fergus Ewing raised the question of preferential creditors. Last time, it was clear to us that those preferential creditors took action to attach the sums, and the debts were discharged before any payment was made to the owner. I will come back to that issue, as I want to move on.
There has been a lot of speculation over the number of vessels to be removed and the impact on the long-term viability of the white-fish fleet. There is no prescriptive target on numbers of vessels. The numbers will depend entirely on which vessels are involved and from which ports they emerge. It is perfectly possible for the number to be well below 100 but, depending on the mix and class of vessels, the number might be greater and might exceed 500. We will decide on the mix that will best allow us to meet our fishing effort reduction target.
We introduced three novel provisions to reflect discussions with the industry. We have extended eligibility to vessels under 10 years old; we have allowed access to the 20 per cent grant premium for vessels that are subject to the cod recovery measures and which have to reduce their fishing effort by 25 per cent or more; and we have made an allowance for advance payments before decommissioning occurs, subject to surrender of the associated fishing licence.
Although those new provisions are likely to increase the unit cost of decommissioning, they will have other benefits. They will allow us to consider for grant the vessels that do most in relation to cod effort; they will give us more flexibility in the choice of vessels to be decommissioned; they will give the ports and owners more flexibility; and they will provide a more realistic level of grant for the vessels concerned. Allowing those who receive those moneys to adjust to the flexibilities within the scheme seems to give them more prospect of considering how to discharge any of the debts and obligations that they have.
The transitional aid proposals are entirely novel. I am conscious that they have been introduced in some haste, in response to the December council. I am grateful for the industry's help in scoping the options in such a difficult package.
The transitional support scheme is also largely permissive. Some of the detail of the scheme is not set out in the statutory instrument. The Scottish ministers are deliberately afforded flexibility in relation to the arrangements. That will have the benefit of enabling us to make adjustments in the light of experience and on-going negotiations with the Commission.
Over six months, we will provide some £10 million to those who are worst affected in the crisis. The aim is to offset a proportion of the fixed costs that are borne by vessels that are unable to put to sea for the days on which the days-at-sea restrictions require them to tie up. The aim is to concentrate on those who are worst affected by annexe XVII, rather than to provide more general compensation.
The compensation formula that is set out in the criteria—
There has been a lot of speculation over the number of vessels to be removed and the impact on the long-term viability of the white-fish fleet. There is no prescriptive target on numbers of vessels. The numbers will depend entirely on which vessels are involved and from which ports they emerge. It is perfectly possible for the number to be well below 100 but, depending on the mix and class of vessels, the number might be greater and might exceed 500. We will decide on the mix that will best allow us to meet our fishing effort reduction target.
We introduced three novel provisions to reflect discussions with the industry. We have extended eligibility to vessels under 10 years old; we have allowed access to the 20 per cent grant premium for vessels that are subject to the cod recovery measures and which have to reduce their fishing effort by 25 per cent or more; and we have made an allowance for advance payments before decommissioning occurs, subject to surrender of the associated fishing licence.
Although those new provisions are likely to increase the unit cost of decommissioning, they will have other benefits. They will allow us to consider for grant the vessels that do most in relation to cod effort; they will give us more flexibility in the choice of vessels to be decommissioned; they will give the ports and owners more flexibility; and they will provide a more realistic level of grant for the vessels concerned. Allowing those who receive those moneys to adjust to the flexibilities within the scheme seems to give them more prospect of considering how to discharge any of the debts and obligations that they have.
The transitional aid proposals are entirely novel. I am conscious that they have been introduced in some haste, in response to the December council. I am grateful for the industry's help in scoping the options in such a difficult package.
The transitional support scheme is also largely permissive. Some of the detail of the scheme is not set out in the statutory instrument. The Scottish ministers are deliberately afforded flexibility in relation to the arrangements. That will have the benefit of enabling us to make adjustments in the light of experience and on-going negotiations with the Commission.
Over six months, we will provide some £10 million to those who are worst affected in the crisis. The aim is to offset a proportion of the fixed costs that are borne by vessels that are unable to put to sea for the days on which the days-at-sea restrictions require them to tie up. The aim is to concentrate on those who are worst affected by annexe XVII, rather than to provide more general compensation.
The compensation formula that is set out in the criteria—
In the same item of business
The Minister for Environment and Rural Development (Ross Finnie):
LD
In the short time that the Presiding Officer's announcement gave me, I added a little theological content to my speech, so that members will not feel deprive...
Phil Gallie (South of Scotland) (Con):
Con
The minister used the word "restructuring", but is it not the case that we are talking about destructuring, given the extent of decommissioning that he expec...
Ross Finnie:
LD
That is a highly excitable and, if I might say so, wholly unfounded intervention. We are talking about decommissioning to the extent of 15 per cent of effort...
Fergus Ewing (Inverness East, Nairn and Lochaber) (SNP):
SNP
Will the minister take an intervention?
Ross Finnie:
LD
I shall make a little progress and then I shall take another intervention.I turn to the two instruments for debate, beginning with the Fishing Vessels (Decom...
Richard Lochhead (North-East Scotland) (SNP):
SNP
The minister will recall that the last time that a decommissioning scheme went through the Parliament, there was huge concern about the fact that many of the...
Ross Finnie:
LD
I shall come on to the detail of that. In general terms, let us be absolutely clear that, essentially, there has to be a contract between the Executive and t...
Richard Lochhead:
SNP
The minister talks about transitional aid to get the industry through the difficult period ahead. The signs that we are getting from the European Commission ...
Ross Finnie:
LD
We must address the question that is before us today. We have introduced a package, we have discussed it and we have allocated funds for it. We are in danger...
Mrs Margaret Ewing (Moray) (SNP):
SNP
Will the minister take an intervention?
Ross Finnie:
LD
No. I will make one more point. It is important that, as set out in SSI 2003/116, the compensation formula will reflect vessels' historic activity. As I expl...
Fergus Ewing:
SNP
We all understand and agree with the objectives that the minister has described. Does he accept that there is almost unanimous agreement in the industry that...
Ross Finnie:
LD
The member said that the funding "is available", but that is not accurate, as it has not yet been approved by the Council of Ministers and the European Parli...
Mrs Margaret Ewing:
SNP
In relation to the European scheme, what have the Scottish Executive and the Westminster Government done to ensure that support is given to the budget-line a...
Ross Finnie:
LD
All I know is that we have indicated that if such a scheme were available, we would be genuinely interested in it. It is for the UK ministers to pursue the m...
The Deputy Presiding Officer (Mr Murray Tosh):
Con
Amendments S1M-3958.1 and S1M-3959.1 are in the name of Richard Lochhead.
Richard Lochhead (North-East Scotland) (SNP):
SNP
This morning's events certainly reinforce the Scottish National Party's view that the Parliament does not have appropriate powers to deliver for Scotland's f...
Mr Mike Rumbles (West Aberdeenshire and Kincardine) (LD):
LD
Is not Richard Lochhead's amendment somewhat disingenuous? I know for a fact that he misrepresents the views of members of the Rural Development Committee. H...
The Deputy Presiding Officer:
Con
You are repeating yourself, Mr Rumbles.
Richard Lochhead:
SNP
If that is the best that the member for West Aberdeenshire and Kincardine can come up with, I suggest that he sit on his backside for the rest of the debate....
Rhona Brankin (Midlothian) (Lab):
Lab
The member said that other countries were building new vessels. If the SNP were in power, would it subsidise fishermen to do that at this juncture?
Richard Lochhead:
SNP
One thing that the SNP would not do is destroy the vast bulk of our own fishing fleet.Over the past three years, the Executive has introduced two aid package...
Ross Finnie:
LD
Would it not be more accurate to say that we have actually spent 85 per cent trying to conserve stocks so that there is a sustainable fishing industry?
Richard Lochhead:
SNP
One does not conserve the fishing industry by destroying it.The minister says that he needs to scrap vessels in order to secure two of the 15 days a month at...
Mr Rumbles:
LD
Disgraceful.
Richard Lochhead:
SNP
Despite what Mike Rumbles says, it is there in black and white in the committee's report, which was published last week.
Iain Smith (North-East Fife) (LD):
LD
Will Richard Lochhead give way?
Richard Lochhead:
SNP
I want to continue with my speech.The SNP's amendment on the decommissioning scheme would ensure that any such scheme would be sensible. The minister must do...
Ross Finnie:
LD
On what basis does the member tell us that the 180 dedicated white-fish vessels amount to only 15 per cent of Scotland's fishing effort on cod?
Richard Lochhead:
SNP
If the minister dedicates £40 million to decommissioning and gives no alternative to the fleet but bankruptcy, there will be applications for decommissioning...