Scottish pelagic fish processors have written to both budding prime ministers calling for help to mitigate soaring energy costs.
The sector – focused mainly on mackerel, herring and blue whiting – is reaching crisis point, they claimed.
New support measures are required “without delay”, they said.
The plea from the Scottish Pelagic Processors Association (SPPA) came in a letter to Conservative Party leadership contenders Liz Truss and Rishi Sunak, as well as fishing minister Victoria Prentis, Scottish rural affairs cabinet Secretary Mairi Gougeon, MPs and MSPs.
Huge increases
SSPA secretary Robert Duthie said: “Against the background of a challenging business environment where our members are already experiencing increased costs in many areas, including packaging and logistics, as well as the impact caused by Brexit and Covid, we have now been hit by soaring energy costs.
“Typically, the energy crisis has resulted in increases of over 300% in expenditure for SPPA members.
“For example, for some members the annual electricity bill has increased from £950,000 to £3.5 million, and for others the increases are even higher. Clearly, such increases are not sustainable. The outlook appears bleak, with prices expected to continue to rise.”
He added: “As a sector of the fish processing industry, which supports jobs in the rural economies of the north-east of Scotland and Shetland, and which plays a crucial role in maintaining UK food security and contributing to the UK balance of payments, it is imperative action is taken by government to help our sector.
“This is especially important, given our competitor companies in the EU and Norway are enjoying significantly lower energy costs than ourselves, due to their governments not imposing the same additional taxes and levies on energy as the UK does, as well as offering other support.
“This makes it challenging for us to compete in export markets, as well impacting upon our capability to supply the domestic market. The situation will get even worse without direct and positive action.”
For some members the annual electricity bill has increased from £950,000 to £3.5 million, and for others the increases are even higher.”
Robert Duthie, secretary, Scottish Pelagic Processors Association.
Mr Duthie said one action that would help the sector would be to establish an economic link requirement for landings by Scottish vessels into Scotland.
This would ensure continuity of supply factories “at a time when we are becoming increasingly uncompetitive with European processors due to the support they receive over energy costs,” he added.
The Scottish Government is expected to introduce an economic link requirement early nest year.
‘Severe difficulties’
Mr Duthie continued: “Our association urges government to recognise the severe difficulties the pelagic fish processing sector is facing and to support the quick implementation of a wide range of mitigation support measures to help reduce our energy costs.
“Failure to offer significant support during this energy crisis would be short-sighted and potentially cause long-term damage to our industry and, ultimately, the Scottish and UK economies.”
Mackerel is Scotland’s most important fishery in terms of volume and value.
According to the SSPA – representing seafood firms including Lunar, International Fish Canners, Pelagia, North Bay Pelagic and Denholm Seafoods – its membership supports around 2,000 direct jobs and many other roles in associated support sectors.
Export sales by the pelagic processing sector are estimated to be worth about £150m a year to the economy.
Conversation