3. Modernization Programs 



The UK government was reluctant to offer 

 grants for modernization throughout most of the 

 1980s. Grants that were available were more often 

 than not sponsored by the European Commission in 

 Brussels. '* The U.K. Ministry of Agriculture, 

 Fisheries, and Food (MAFF) devised a program of 

 "Seafish grants" which were available for the 

 replacement of vessels lost at sea and for vessels 15 

 years and older. Under the program, modernization 

 and replacement projects took priority over new 

 vessels. MAFF approved 40 applications for grants 

 through 1987, when the govenmient decided to scale 

 down the program.'^ 



4. Decoimriissioning Programs 



The MAFF announced in 1991 that there was 

 "no prospect of the introduction of a 

 decommissioning scheme."'* The announcement was 

 premature; on May 11, 1993, the Sea Fish 

 (Conservation) Act was passed which provides for 

 approximately $39 million in decommissioning funds 

 for UK fishermen." The most recent 

 decommissioning scheme dates back to 1984, when 

 Lxjndon and the EC offered grants of $600 per ton 

 decommissioned, which resulted in the withdrawal of 

 dozens of vessels from the fishing industry.^" 

 Nonetheless, the present govenmient cites the "mess" 

 the program created as justification for not 

 introducing another plan. There has recently been a 

 great deal of concern on the part of vessel owners, 

 who complain that current conservation policies (such 

 as quotas) are not effective. The market for second- 

 hand vessels is presently such that sales to third 

 parties would not be a viable option, those in the 

 industry argue.-' In the 1992 election campaign, the 

 opposition Labour Party promised to implement a 

 decommissioning program if elected, ■■' and European 

 Community fisheries officials have actively 

 encouraged the U.K. to set up a scheme to reduce 

 fleet size." 



5. Shipyards 



The UK shipbuilding industry has become more 

 optimistic over the last few years. The downsizing of 

 the 1980's seems to have made the industry more 

 competitive, and shipyards like Harland and Wolff of 

 Belfast have been receiving large commercial orders 

 since 1990.^" U.K. shipyards, which have recently 



completed fishing vessels, include Napier. Ltd. in 

 Scotland, which has clients from as far away as New 

 Zealand," Cochrane Shipbuilders of Selby, 

 Yorkshire,^* Campbeltown Shipyard, which produced 

 a special vessel to carry live salmon," and James N. 

 Miller and Sons of St. Monans, builders of the 

 Ulysses II, a 27 meter seiner/trawler.'* UK yards 

 face their stiffest competition from aggressive Eastern 

 European shipyards, especially those in Poland.'' A 

 likely area of future activity is joint ventures with 

 Asian shipyards. British yards have already 

 undertaken negotiations with potential Japanese and 

 Korean partners. 



6. International Agreements 



Since the UK is a full member of the European 

 Community, the European Commission in Brussels is 

 responsible for UK external relations in the fisheries. 

 EC fishery agreements have provided access to 

 British vessels. In particular, UK fishermen 

 regularly harvest Arctic cod in northern Norwegian 

 waters under an EC-Norway agreement, though 

 Norway has threatened to terminate the agreement on 

 several occasions.'" At the same time, Britain 

 continues to maintain a handful of agreements with 

 third parties. Britain is currently negotiating with 

 Argentina over fishing conservation measures around 

 the Falkland Islands in the South Atlantic within the 

 framework of the Convention for the Preservation of 

 Living Antarctic Sea Resources. '' The two countries 

 have been struggling to rebuild a South Atlantic hake 

 fishery. Britain also has fisheries treaties with 

 Canada dating back to the late 1970's. 



7. Fleet Dispersal Plans 



UK fishing vessels are not likely to take 

 advantage of the EC agreement with Argentina, but 

 will continue to fish off the Falkland Islands. Most 

 UK vessels, however, will fish in the North Sea in 

 their traditional fishing grounds. Continued reductions 

 in Total Allowable Catches (TACs) in the North Sea 

 and Irish Sea could stimulate some UK fishing 

 companies to seek opportunities in more distant- 

 waters. Joint ventures or distant-water operations 

 most likely would occur in South Africa, Australia, 

 or New Zealand. UK fishermen will be particularly 

 interested in watching whether Norway joins the EC, 

 since Norwegian waters are rich in many species 

 prized by UK consumers. If Norway joins the EC, 



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