FISHING VESSEL CAPACITY AGGREGATION (Hansard, 5 April 1990)

§ The Minister of State, Scottish Office (Lord Sanderson of Bowden)

Yes. Fisheries Ministers have carefully considered the industry's reactions to the consultation document which was issued last November. In the light of the views we received, we have decided to introduce capacity aggregation arrangements, but, in response to a number of useful comments and suggestions, we are making some important changes from the proposals which were outlined in our consultation document.

We have decided that we should introduce arrangements which allow fishermen to transfer the licences from more than one vessel to a larger vessel. A fisherman will also be allowed to aggregate more than one licence on to an existing licensed vessel. This would enable him, for example, to lengthen or re-engine his vessel. These aggregation arrangements will be subject to the rule that the capacity of the newly licensed vessel must not be more than 90 per cent, of the aggregate capacity of the previously licensed vessels as measured by a formula which takes account of both vessel size and engine power. As envisaged in our consultation document, it will only be possible to aggregate licences of similar type.

We are also changing the rules for the transfer of licences from one vessel to another. We are continuing with the current provision, which permits 1620WA such transfers as long as neither the tonnage nor the horsepower of the newly licensed vessel exceeds that of the previous licensed vessels. However, to provide some improved flexibility, fishermen will be allowed to transfer licences from one vessel to another larger or more powerful vessel provided the capacity of the new licensed vessel is no more than 90 per cent, of the capacity of the previously licensed vessel as measured by the formula. The present restrictions on transfers between length bands will be removed.

In the light of a number of representations, we have also decided to extend licensing to commercial fishing for all species by UK over 10 metre vessels in all waters around the UK, although the exemption from licensing for mackerel fishing by hand-held line will continue to apply. This extension will not apply to salmon and sea trout, which are already covered by licensing arrangements run by the National Rivers Authority. Vessels fishing other than for profit will also be excluded from the need to be licensed. A statutory instrument will be laid before the House as soon as possible after the Easter Recess. Subject to parliamentary approval, the new licensing order will take effect in early May. The new arrangements for capacity aggregation and licence transfers will take effect from the same date.

With the introduction of these new arrangements, it is necessary to clarify policy for dealing with licence transfers amongst freezers and pursers with pelagic licences. In future, if the pelagic licence of one or more freezers or pursers is transferred to another freezer or purser intending to fish against a PO's pelagic allocation, the receiving vessel's PO will receive allocations reflecting the track record(s) of the licence(s) transferred. Similarly, if the pelagic licence of one or more pursers or freezers is transferred to a purser or freezer fishing or wishing to fish with an individual vessel pelagic allocation, the allocations to the receiving vessel will reflect the track record(s) of the licence(s) transferred. Vessels with individual vessel allocations will in future be able to arrange for up to 70 per cent, of their allocations to be fished by other vessels in the same ownership or PO which also have individual vessel allocations.

The new capacity aggregation and licence transfer rules will provide some useful extra flexibility for fishermen wishing to restructure their businesses. We will be keeping under close review the operation of these arrangements and particularly the impact of the new capacity formula and the new provision for capacity aggregation.

We are also preparing another consultation paper about further liberalisation in our licensing and management arrangements which would allow fishermen to acquire increased fishing possibilities without necessarily increasing their fishing capacity. We have called these arrangements entitlement aggregation. We intend to circulate this paper for the industry's comments by the middle of May and will hope to receive the industry's views by the end of June. In the light of the industry's reactions we will consider how to take forward the issues raised, and this could include pilot schemes.