HL Deb 04 December 1979 vol 403 cc617-8

5.13 p.m.

Earl FERRERS rose to move, That the scheme laid before the House on 22nd November, be approved. The noble Earl said: My Lords, the purpose of this order is to provide for continued financial assistance to the fishing industry. The scheme before us extends for a further year the existing arrangements for grants from Exchequer funds towards the cost of constructing new fishing vessels and improving existing ones. Since March 1975, the rate of grant payable has been 25 per cent. of the approved cost of the projects, and we propose no changes for the coming year.

The shape of any final settlement of the Common Fisheries Policy will have a bearing on the size and structure of our fishing industry in the future. The Government are considering what role Government assistance should then play in the adaptation of the fleet to future fishing opportunities. I am sure the House will agree that during this period, while the Government are developing their future policy on financial aid to the fishing industry, it would be wrong to end this scheme. A sudden cessation of the supply of funds could cause hardship to fishermen, and to the boat-building industry, whose investment plans are inevitably long-term and where consistency in Government policy is important. The scheme is of course of positive value to the industry in encouraging the modernisation of the fleet to reflect the needs of the future and ill allowing a limited amount of construction of new vessels.

At the present time, when the size of the fleet is already more than adequate, any incentive to invest must be subject to strict controls if imprudent investment is to be avoided. The two statutory bodies, the White Fish Authority and the Herring Industry Board, are required as part of this scheme to examine every grant application to ascertain its economic viability in relation to the needs of the United Kingdom industry as a whole. Emphasis is placed on the modernisation of existing vessels rather than the construction of new ones, which is limited in practice to the replacement of vessels lost at sea. Expenditure under this scheme during the current financial year is expected to be about £7 million, and Parliamentary approval will be sought to maintain the same level of provision for 1980–81. My Lords, I beg to move.

Moved, That the scheme laid before the House on 22nd November, be approved.—(Earl Ferrers.)

Lord WALLACE of COSLANY

My Lords, having had the honour and pleasure of moving this order last year, it gives me a great deal of satisfaction to learn that the order is being renewed and extended and I thank the noble Earl for the clear way in which he explained it and for the gratifying fact that an additional £1 million is being added, because I believe the figure for the last period was £6 million. As we entirely agree with this, it would be wasting the time of the House to make over-long speeches; I simply say that I heartily approve of the order and wish it well.

On Question, Motion agreed to.