Entire Scots seafood industry may go bust, ministers are warned
SCOTLAND’S seafood industry could be destroyed if customs clearance technology is not fixed, ministers have been warned.
UK Environment Secretary George Eustice was told firms still fear ‘going out of business’ despite a new Government £23million compensation package.
Nationalist MP Stuart McDonald warned produce has been left ‘sitting in lorry parks in Kent’ as workers wait for customs sign-off.
The seafood sector was forced to plead with the UK Government for emergency funding after long delays following the end of the Brexit transition period led to the industry losing £1million a day. Businesses said they have had to tie up boats, with staff unable to work due to a lack of exporting opportunities, and substantial delays in getting produce to the EU.
Some Scots firms said they made a 72-hour round trip to Denmark to sell their catch.
Earlier this week, the UK Government revealed businesses affected by the Brexit chaos could claim up to £100,000 in compensation.
But in the Commons yesterday, Mr McDonald said: ‘Scotland’s high-quality seafood producers are warning that they’re going out of business.
‘They can’t have their products sitting in lorry parks in Kent waiting for customs clearance. Those products have to reach market fresh.
‘So what is the Government doing to change the procedures and fix the technology to ensure an entire industry isn’t destroyed, and will there be ongoing compensation offered to business until this is sorted, or was that a one-off?’
Mr Eustice claimed the customs problems were ‘teething issues’, with the Government to provide additional support to help firms with the process in coming weeks.
He said: ‘We have announced a £23million fund to help those exporters who struggled with the paperwork in these initial weeks.’
It comes as Rural Economy Secretary Fergus Ewing warned beef and lamb exporters had also seen ‘significant reductions’ after the transition period.
He told the Scottish parliament yesterday meat exporters have experienced similar problems to those encountered by the fishing sector after January 1.
Extra checks have led to seafood producers failing to get their products to market on time.
The Conservatives blamed the Scottish Government for failing to staff export hubs properly, saying the UK Government has protected funding to farmers.
Mr Ewing said the new trade rules mean Scotland can no longer export certain goods to the EU – including chilled mincemeat, meat preparations and mechanically separated poultry.
Seed potatoes are also affected, Mr Ewing said.
He added: ‘We are already seeing catastrophic impacts across all sectors in our rural economy.
‘Members will already be aware of the challenges being faced by Scottish seafood producers.
‘There have been similar challenges in the meat sector, where new trade barriers have led to significant reductions in the volume of Scottish beef and lamb exports for Europe.’
But Tory economy spokesman Jamie Halcro Johnston said: ‘The UK Government has guaranteed to protect farm funding until 2024. That’s a commitment he could not make if he had his way and Scotland was outside of the UK.
‘The SNP’s policy of independence would erect more trade barriers between Scotland’s farmers and the rest of the UK – and the rest of the world – than any form of EU exit.’
‘Products sitting in lorry parks’