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Scottish quota plans put vessel investment on hold
Published:  05 June, 2008

Peterhead-based grouping revealed decision

TWO leading skippers in the North East of Scotland have suspended projects to build new vessels as a direct consequence of the Scottish Government’s recent proposals on quota management and licensing, it emerged today.

The Peterhead-based North East of Scotland Fishermen’s Organisation who revealed the situation, said other skippers are known to be “extremely concerned” that these proposals have undermined the value of their businesses and are reviewing their options, giving serious consideration to “flagging” their vessels outwith Scotland.

The North East producer organisation said that senior officials from the Scottish Government’s Marine Directorate gave assurances late last year that they would do nothing to derail planned investment in new vessels and that any changes would be “light touch.”

But as one skipper had said, how can an 82-page set of proposals be a “light touch”?

The North East of Scotland Fishermen’s Organisation (NESFO) added that while previously banks had been providing financial assistance to skippers on the basis of the value of the licences and quota held, at least one major bank has now advised that it has been forced to revise the valuation of these downwards significantly because of the Scottish Government Marine Directorate (SGMD) proposals to impose conditions and restrictions on quota units and licences current held by Scottish vessels and to review the system every five years.

“There is considerable anxiety that whereas some industry leaders have voiced their support for the SGMD’s proposals, the majority of skippers who have read the proposals do not share this opinion and are disappointed that the SGMD has unnecessarily destabilised the financial foundation of a large section of the Scottish fleet overnight.

“The industry is where it is today having gone through massive changes in recent years and although fuel prices are an increasing worry, optimism in the catching sector is, or rather was, high” said NESFO.

“Putting the legality of these proposals to one side for the time being, if they go through, the industry will be set back many years since there simply isn’t enough quota to satisfy everyone’s needs. Whether you agree or not, producer organisations, vessel agents and other quota-holders all play a crucial role in sourcing and making additional quota available to vessels.

"It is in no one’s interests to reduce the viability of the catching sector.

"If this quota had not been acquired, for example, from decommissioned vessels, the additional quota vessels now lease to enable them to fish legally for the full year would simply not be available to them. To impose unreasonable conditions on the holding of quota units by Scottish skippers and force non-active quota holders to give up their quotas will impact negatively on every Scottish vessel.

“If the Scottish catching sector remains profitable and the banks are confident that investments are secure, there is no risk that quota and licences would be sold off; there would be investment in the industry and fishing communities would prosper.

"This is what the SGMD should focus on. What use is Scottish quota, Scottish licences and Scottish fishing rights; there is simply not enough quota within Scotland in the first place to enable vessels to remain viable in face of rapidly increasing fuel costs.”

But a Scottish Government spokesperson said today: “Our fishing communities have generally welcomed our decision to consult on quota management proposals that a fit for purpose for Scotland.

"There is no reason why proposals we have put forward on quota and licence management should affect the lending position of any banks.

“We meet regularly with the banks and we have not heard that this is an issue generally.

“Banks are constantly assessing risks.

"Factors more likely to influence their decisions at the moment are the tighter lending environment generally flowing from the credit crunch, the cost of fuel and the impact that has on business viability, the cost of steel and exchange rates.

“There may be one or two individuals whose new build is on hold and we would be happy to talk to them.”

www.fishupdate.com is published by Special Publications. Special Publications also publish FISHupdate magazine, Fish Farmer, the Fish Industry Yearbook, the Scottish Seafood Processors Federation Diary, the Fish Farmer Handbook and a range of wallplanners.




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