§ 7.3 p.m.
§ Lord WALLACE of COSLANY rose to move, That the Fishing Vessels (Acquisition and Improvement) (Grants) (Variation) Scheme 1978, laid before the House on 22nd November, be approved.
§ The noble Lord said: My Lords, the scheme before the House today contains only one substantive provision; that is, to extend for a further year the existing arrangements under which the White Fish Authority and the Herring Industry Board may make grants towards the capital costs incurred in the construction of new fishing vessels and the improvement of existing ones. These grants are financed by the Exchequer, and since March 1975 have been paid at a standard rate of 25 per cent. of approved costs of all eligible projects. The arrangements themselves have remained substantially unchanged since 1967.
§ Noble Lords will be well aware that the terms to be negotiated for a common fisheries policy satisfactory to the interests of the United Kingdom will have an important bearing on the shape and size of the fleet which will be required for the future, and on future grant and loans provisions. It might be argued that with the present uncertainties prudence would demand a stop on the building of fishing vessels at the present time. Past experience has shown, however, that an arbitrary stop of that kind can cause real social and economic hardships, particularly where there are many self-employed people involved. Moreover, there would be an unfortunate impact on shipbuilding yards.
100§ In practice, the fishing industry is showing no tendency to invest in a grossly expansionist fashion. New building has been at a relatively modest level in recent years. No large distant water vessels are under construction or on order and, of course, the statutory authorities are also required, as part of the scheme before us today, to examine every grant application in terms of economic viability and in relation to the overall needs of the industry. At the moment both authorities are restricting aid to modernisation and such construction as will replace vessels lost to fishing for various reasons. So I think that there is little risk of imprudent investment being encouraged by this scheme.
§ Expenditure under the scheme during the current financial year is expected to amount to some £6 million, and the Government are making provision for comparable expenditure in 1979–1980. Noble Lords will appreciate that such a level of expenditure means that, despite the many uncertainties which exist, the industry's own contribution towards its future efficiency is running at nearly £18 million per annum. Clearly, the availability of grant is an important investment consideration for the industry. However until the future structural requirements become clearer we think it inappropriate to enter into any long-term commitments. For this reason, we propose to continue the recent practice and extend the arrangements for a single year only; that is, until the end of 1979. I beg to move.
§ Moved, That the Fishing Vessels (Acquisition and Improvement) (Grants) (Variation) Scheme 1978, laid before the House on 22nd November, be approved.—(Lord Wallace of Coslany.)
§ 7.6 p.m.
Earl FORTESCUEMy Lords, I am sure that we are all grateful to, and should like to thank, the noble Lord, Lord Wallace of Coslany, for his explanation of this Order. From these Benches we give it welcome. This is certainly not the occasion for a general debate on the fishing industry and, as the noble Lord said, it must be very questionable whether this is the right moment to encourage an increase in the fishing fleet. However, it must be right to encourage improvements of existing vessels, and especially any improvements which make them safer 101 for those who sail in them. When the Minister replies perhaps he can give us an idea as to how much of the £6 million expenditure this year has been used to acquire new vessels and how much has been used to improve the existing fleet.
Lord WALLACE of COSLANYMy Lords, I thank the noble Earl for his helpful contribution to this debate. On new vessels, I cannot at present give the exact number of new vessels. I shall certainly advise the noble Earl. However, as I have already pointed out, much of the expenditure will be on improvements and modernisation rather than on new construction. Although natural forces are tending to inhibit substantial investment in new vessels prior to determination of the fishing opportunities open to them, the present aim of the statutory bodies is to avoid aiding projects of an expansionary type—aid being restricted generally to replacement of ageing vessels and vessels sunk, scrapped or sold out of fishing. But, so far as exact numbers are concerned, I am afraid I cannot give the noble Earl that information at present. As both the noble Earl and the House will appreciate, all this depends entirely on the somewhat difficult negotiations taking place at the present time.
§ On Question, Motion agreed to.