Seafood trade body says early feedback on £23m support scheme is 'disappointment'
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The initial response to the UK government's £23 million support scheme for the seafood sector has been "one of disappointment", according to an industry leader in Scotland.
Exporters caught up in the post-Brexit bottleneck were told that from February 9 they could apply for financial aid from the UK-wide Seafood Disruption Support Scheme.
It will provide assistance to businesses that suffered a financial loss because of delays relating to the export of fresh or live fish and shellfish to the European Union in the month after the end of the transition period. The fund will be paid retrospectively to cover losses incurred from January 1-31, 2021.
Donna Fordyce, chief executive of trade body Seafood Scotland, said: “Since the start of January, seafood exports have slowed to a trickle as companies struggle to navigate systems that are not fit for purpose, being tested in real time, and creating an intractable barrier to trade. Some companies have even given up trying and have put their businesses on ice for the time being, at great financial suffering to their owners, staff, families and communities.
“We hoped the £23 million would go some way to alleviating the pressure while the existing problems could be resolved. However, the initial industry feedback is one of disappointment, with many companies instantly realising they will be ineligible for support.
"This includes companies that have simply had to stop trying because their product has not been getting through – or seafood businesses whose long-standing orders from customers in the EU have dried up because of the export crisis.
"Companies cannot produce health certificates and other documentation for orders never made because of a lack of customer confidence that product would reach the EU on time, and in peak condition.
“It’s probable that these companies will never be fully compensated for what they have lost and are still losing, but the damage could still be limited if the systems were workable and export gets back on track quickly.”
Alongside the Seafood Disruption Support Scheme, the UK government has been offering targeted support to help exporters with new processes. This includes the Seafood Exports Working Group, meeting twice a week to address issues raised by the industry, and a newly established Scottish Seafood Exports Task Force.
The UK government says the support scheme is "in recognition of the unique circumstances currently affecting the seafood exporting sector at a time when the industry is facing lower market prices and demand due to the pandemic".
Administered by the Marine Management Organisation on behalf of the Department for Environment, Food and Rural Affairs, it offers assistance based on a proportion of losses that can be verified up to a maximum of £100,000 per business.
UK fisheries minister Victoria Prentis said: "Seafood exporting businesses across the UK can apply today for support from this £23 million scheme, reflecting the unique challenges faced by the sector.
"We will continue to work closely with the fisheries and seafood industry through our Seafood Exports Working Group to troubleshoot any issues that cause delays to the export of these highly perishable goods."
Scotland Office minister David Duguid said: "While recognising that huge efforts went into preparing for the required changes as we exited the EU, there are many who have incurred losses through no fault of their own. The UK government is, therefore, stepping up with the Seafood Disruption Support Scheme.
"I have been engaging with the industry for many months and continue to work with all sections of the seafood sector in Scotland as we move to maximise future opportunities and adapt to new rules."
Meanwhile, Seafood Scotland has appointed a France-based expert to help Scottish seafood companies tackle the administrative issues that have been affecting the industry. Taylor Calon will provide on-site support to lorry drivers at Boulogne.
Donna Fordyce said: “Taylor has significant experience navigating cross-border logistics. His expertise will be a boon to Scottish seafood exporters and provide ground support from a European standpoint."
The announcement followed Seafood Scotland’s recent appointment of Alastair Kennedy and Steve Galloway to provide support to companies from within Scotland. All three positions are funded through the joint recovery plan from the Scottish Government and Scotland’s Food and Drink.
