§ 3.26 p.m.
§ Order of the Day for the Third Reading read.
§ Moved, That the Bill be now read 3a.—(Earl St. Aldwyn.)
§ LORD MACPHERSON OF DRUMOCHTERMy Lords, I am sure that this Bill will be welcomed on all sides of the House, if for no other reason than that for the first time we are extending to the herring fishing industry a subsidy similar to that which has been enjoyed up to now by the white fishing trade. As your Lordships may have heard, for many years now the catch of herrings landed at our fishing ports has become progressively smaller and smaller each year. Whether that is due to a change in the habits of the fish themselves or to some other cause, one fact has been established: that is, that for some time it has been more profitable to fish for white fish than for herrings, with the result that an increasing number of ports are leaving the herring industry and going over to white fishing.
I should like to say a word or two about the serious position which will arise for British fish canners after this Bill passes into law. The herring catch is utilised in a variety of ways—fresh herrings, kippers, salted herring and canned herring; and surplus quantities are used for fish meal, about which we have heard earlier this afternoon. The canning industry, with which I am connected, export every year about 60 to 70 per cent. of their pack and in this way contribute to the prosperity of the industry. Up until now the Herring Industry Board, by agreement between the fishing interests and the canners, have had a scheme whereby a certain minimum quantity of herring is allocated to the canning industry each season at fixed prices, and with provision for canners situated at places other than the port of landing to obtain supplies on special terms, at what are called "away port" prices. For a number of years this scheme has worked well, to the satisfaction of both the canners and the fishermen. In the meantime, and before news of this subsidy for herring became known, the 1148 Herring Industry Board announced that as from next month the special terms arranged for canners will be abolished, that canners will have to obtain their supplies from day to day at public auction, and that the concession for canners at "away ports" will be withdrawn.
If these new arrangements proposed by the Herring Industry Board are promulgated, then I say to Her Majesty's Government that the earned herring export trade of this country will be virtually killed. It is quite impossible to operate an export trade in canned herring unless the price of the raw material is known in advance and a minimum quantity of fish is made available to the industry. Offers of canned herring to the trade in Australia, the United States of America and other world markets, have to be made months in advance of delivery and in competition with Dutch, Norwegian and other canning interests. Even to-day our export prices of British canned herring are higher than those of competing countries. But, so far, we have been able to hold our trade because of the excellent quality of British herrings and the technical ability of the people in our canning industry. We have recently been warned, however, particularly by trade associations in Australia, which is our biggest customer, that if there is any further increase in price—or, indeed, if there is not some price reduction—the Australian market may well be lost to British canners.
The proposals of the Herring Industry Board which are now being considered by Her Majesty's Government would mean that canners would have to pay a price for their herrings which would completely price us out of the export trade. That is the opinion of the whole industry, and it is known to Her Majesty's Government. Yet, I think it is argued by the Herring Industry Board that if they fix prices for herrings they may come within the ambit of the Restrictive Trade Practices Act. But surely that is nonsense. That Act provides that Government-sponsored schemes like this shall be exempt from the provisions of the Act. Already, in anticipation of the acceptance of these proposals of the Herring Industry Board, one or two canners have closed down their factories and dismissed their workpeople; and if 1149 these proposals are accepted, I am sure the same thing will spread to other parts of the country.
I trust, therefore, that in providing this much-needed subsidy for the herring fishing industry Her Majesty's Government will have regard to the serious objections made to them by the fish canners section of the Food Manufacturers' Federation of the United Kingdom, and that the Herring Board scheme for canners will be modified in a way that will enable this valuable export trade to continue.
EARL ST. ALDWYNMy Lords, I am grateful for the welcome which the noble Lord has given to this Bill. As I see it, his real concern is with the 1951 scheme, under which this rule to which he has referred has been made. As the noble Lord knows, that rule has been advertised in accordance with the statutory procedure laid down; and, as he is equally aware, a number of objections have been received from the majority of the various sections of the industry. What happens next is that my right honourable friends the Minister of Agriculture, Fisheries and Food and the Secretary of State for Scotland must consider the draft rule and the objections; and in the light of the objections, they must decide whether or not to confirm the rule. While my right honourable friends are giving this consideration 1150 to the matter, I am afraid that I cannot enlarge further on the rule itself.
§ On Question, Bill read 3a, and passed.