§ Mr. SalmondTo ask the Secretary of State for Scotland (1) how many fish processing units are currently in operation, by Scottish region; and of these how many currently meet new EC hygiene requirements;
(2) what expenditure his Department expects to be necessary in each year until 1995 in the fish processing sector to meet EC hygiene regulations; what assistance is available for such investments; and if he will make a statement.
§ Mr. Michael ForsythInformation in the form requested is not available. There are known to be over 300 fish processing units in Scotland, the majority of which are located in the Grampian region. Many fish processors already operate to standards above those that will be required under the draft EC fish hygiene directive because of the standards required by the customers. Others are already investing to bring themselves up to a higher standard. The transitional measures that will apply are still under negotiation within the Community so the dates by which the various requirements must be met have not yet been settled. In any case, it would not be possible to separate the expenditure anticipated to meet hygiene requirements from other investment in the development of fish processing businesses.
My noble Friend the Minister with responsibility for agriculture and fisheries in Scotland announced recently that some £15 million in European Community funded grant aid has been made available to the United Kingdom's fish marketing and processing industry for the period 1991–93.
The EC grants scheme provides for grants of up to 30 per cent. for fish marketing and processing projects along with a United Kingdom back-up grant of 5 per cent.
Scottish fish processors secured EC grant awards over the past 10 years of around £10 million under the previous EC scheme and there is every prospect that they will continue to be successful in attracting awards under the new scheme.
The proposed EC hygiene directive provides for a very basic set of hygiene requirements. The Scottish Fish Merchants Federation has recognised the importance to the industry of proper hygiene standards and has been pressing for early implementation of these measures, but the Government recognise that some processors have a fair way to go to meet such standards and therefore support the case for an appropriate transitional period.
§ Mr. SalmondTo ask the Secretary of State for Scotland (1) what records are kept within his Department of business failures in the fish processing sector; and if he will make a statement;
(2) what employment projections have been prepared by his Department of employment in the fish processing sector in Scotland;
(3) if he will make a statement on the current condition of and prospects for the fish processing sector in Scotland.
§ Mr. Michael Forsyth[holding answer 20 May 1991]: Some 9,000 people are employed in the fish processing industry in Scotland. Employment projections specific to 461W fish processing would not be reliable since the numbers employed are sensitive to the business decisions of a relatively small number of companies.
In the past year, there have been some closures in the processing industry, mainly linked to the reduction in the supply of species such as cod and haddock, and also to problems faced in fishmeal production, but there have also been substantial new investments as many processors diversify into other species such as mackerel, herring and farmed salmon, and also into products with greater added value. The market for mackerel and herring products has improved considerably following good publicity as to the health benefits to be had from eating oily fish and the supply outlook for these species is good. The net change in employment in fish processing in Scotland during 1990 is estimated to have been small.