HC Deb 03 August 1971 vol 822 cc260-2W
45. Mr. McNamara

asked the Minister of Agriculture, Fisheries and Food if he will make a statement on the results of his discussions with the fishing industry on the new operating subsidy.

Mr. Wall

asked the Minister of Agriculture, Fisheries and Food (1) if he will make a statement on Government assistance towards implementing the requirements of the Holland-Martin Report on safety at sea in the fishing fleet;

(2) if he will make a statement on the new rates of distant-water operating subsidies for the fishing fleet.

Mr. James Johnson

asked the Minister of Agriculture, Fisheries and Food whether he has completed his talks with the fishing industry regarding the new operating subsidy after mid-1971; and if he will make a statement.

Mr. Prior

After discussion with the industry my right hon. Friends the Secretary of State for Scotland and the Secretary of Slate for Wales and I have reviewed the level of support for the deep sea fishing industry for the last two years of the five-year period covered by current legislation. We have taken into account the undertaking given by the previous Government in 1968 that the support arrangements then introduced would be reviewed after the first three years with the objective of maintaining a corresponding level of return for the last two years commencing 1st August, 1971 and also the additional cost to the industry of implementing the recommendations made by the Committee of Inquiry into Trawler Safety.

We have decided to improve the operating subsidy by increasing the basic level of operating profits in the formula by which it is calculated from £4 million to £4.8 million with a similar increase in the ceiling of profits plus subsidy from £7 million to £7.8 million. The effect of this will be to increase the total amount of subsidy payable to the industry in a 12-month period by £400,000 up to a maximum amount of subsidy which will remain unchanged at £4 million. The method of distribution of the subsidy on the basis of added value will remain unchanged.

The extra operating costs arising from the implementation of the safety recommendations will be treated in the same way as other operating costs so that, under the subsidy arrangements, these extra costs will be borne by the Government and industry in equal shares. Additional capital expenditure for new vessels or improvement of existing vessels resulting from the recommendations will be eligible for 25 per cent. grants available from the White Fish Authority.

The Government will meet the full cost of stability tests on vessels undertaken to comply with the safety recommendations, and will continue, for the time being, to bear the full cost of the support ship.

We trust that these measures will be regarded as evidence of the Government's determination to support the industry, and that they will encourage it to con-

APPLICATIONS TO THE MINISTER OF AGRICULTURE, FISHERIES AND FOOD FOR NEW ORIGIN MARKING ORDERS
Applications under consideration Foods, etc.
National Farmers' Union … … Fresh apples.
Eggs (hen or duck) in shell.
Dried eggs.
Raw tomatoes.
Bacon and ham.
Dead poultry.
Meat.
Rose trees.
Butter.
Raw cucumber
Cheese.
Fresh and preserved milk products pre-packaged for retail sale (other than butter or cheese).
Fresh strawberries.
Fresh pears.
Early potatoes.
Bee Farmers' Association and Local Branches … … Honey.
London Provision Exchange … … Bacon and ham.
National Committee of the Provision Importing Trade … … Bacon and ham.
Wholesale Produce Merchants' Association … … Bacon and ham.
National Committee of the Wholesale Provision Trade … Bacon and ham.
Provision Importers' Association … … Bacon and ham.
Association of Butter Makers, Blenders and Packers … … Butter.
United Kingdom Dairy Association … … Butter.
Other pre-packaged milk products such as cream.
National Association of Multiple Grocers … … Meat.
National Federation of Meat Traders' Associations … … Meat.
Scottish Federation of Meat Traders Associations … … Meat.
National Association of Poultry Packers Ltd. … … Dead poultry.
Fishmongers Company … … Frozen or chilled salmon.
Frozen or chilled sea trout.
Association of Scottish District Salmon Fishing Boards … Frozen or chilled salmon.
Frozen or chilled sea trout.
Association of Malt Products Manufacturers … … Malt products.
Association of British Rose Producers … … Rose trees.
National Egg Packers' Association Ltd. … … Eggs (hen or duck) in shell.
British Egg Products Distributors' Association … … Dried eggs.
Commercial Rabbit Association … … Rabbit meat.

tinue to modernise and re-equip the deep-sea fleet.

In due course, Parliament will be asked to approve an Order implementing the new subsidy arrangements.