§ 47. Mr. Wolrige-Gordonasked the Secretary of State for Scotland whether he will make a further statement about the price paid by the Herring Industry Board for surplus herring at Stornoway.
§ Mr. StodartAs I informed the hon. Gentleman in my letter of 26th March, discussions have been taking, place between my right hon. Friend's Department and the Herring Industry Board. My right hon. Friend's Department initiated these discussions after the Board had submitted late in February the accounts of the Stornoway factory for the period from 1st September, 1963, to 31st December, 1963. It appeared from these accounts that the Board had not used any part of a grant payable to them to cover the standing costs of the factory and, in my Department's view, the provision for depreciation was in the circumstances unduly high. At my request, the Board have reviewed the situation. They have reconsidered the matter in the light of the latest estimates for the seven months' period, 1st September, 1963, to 31st March, 1964, and have agreed that they can make a supplementary payment bringing up to 27s. 6d. per cran the price paid for herring bought for the factory since 1st September, 1963. A firm market for oil and meal over the past four months coupled with exceptionally high oil yields have contributed largely to the substantial supplement to the price. The Chairman of the Board is writing to the Herring Fishermen's Associations today to inform them of the Board's proposal.
The Board have expressed their real regret for their mistake in regard to the grant and for their consequent failure to raise the price earlier, and my right hon. Friend would like to add his own apologies for giving an impression to the House, albeit in all good faith, which has turned out to be wide of the mark.