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Westminster cash for Scottish seafood firms sparks power grab row

Rural Affairs Secretary Mairi Gougeon.
Rural Affairs Secretary Mairi Gougeon.

A £20 million payout from a UK Government funding pot to help Britain’s seafood industry has sparked suggestions of a power grab north of the border.

According to the Scottish Government, Westminster has overstepped its mark with a funding scheme that is causing funding “confusion and duplication”.

But the UK Government insists there is no overlap with Holyrood’s own funding scheme for the seafood sector.

And it says it is working in partnership with the Scottish Government to safeguard the industry’s future.

£8.6m awarded to north and north-east seafood businesses

North and north-east projects did particularly well in the UK Seafood Fund Infrastructure Scheme first round awards announced last Friday, securing £8.6m.

The cash for infrastructure projects is from the UK Seafood Fund, worth £100m, that was announced by former prime minister Boris Johnson following the Brexit trade deal.

We have continually pressed the UK Government to commit to providing the Scottish Government with a fair share of the £100m pot which recognises the size and significance of our marine sectors, to distribute in line with our priorities.”

Mairi Gougeon, rural affairs secretary.

Decisions over where to spend it raise a thorny problem for devolution.

Holyrood is responsible for marine and fisheries policy-making and implementation in Scotland – not Westminster.

Rural Affairs Secretary Mairi Gougeon said fresh investment in Scottish businesses was “always welcome”.

But highlighting concerns in Edinburgh, she added: “The UK Government continues to make spending decisions on marine and fisheries in Scotland, which is an area devolved to the Scottish Government.

Whole mackerel for processing at Denholm Seafoods in Peterhead. Image: Grayling

“We have continually pressed the UK Government to commit to providing the Scottish Government with a fair share of the £100m pot which recognises the size and significance of our marine sectors, to distribute in line with our priorities.

“Instead, what we have is the UK Seafood Fund operating in the same space as our own established Marine Fund Scotland scheme, which already provides vital targeted grant assistance to the Scottish marine and seafood sectors to enhance quality, support innovation and add value.

“This causes unnecessary confusion and duplication.”

Who is responsible for deciding how public cash is used to support the Scottish seafood industry? Image: Seafood Scotland

The minister continued: “Scotland’s valuable seafood industry requires continued support as it navigates the dreadful impacts of EU exit, the Covid-19 pandemic and cost-of-living crisis.

“Our close and detailed engagement with our marine and seafood sectors means we are in the best position to support investments that deliver benefits to Scotland.”

A UK Government spokeswoman said: “We are proud almost 50 projects across Scotland have already benefited from over £15m through the UK Seafood Fund, with more opportunities in the coming months.

“We will continue to work in collaboration with the Scottish Government to ensure the fishing industry has a long-term and sustainable future.”

Denholm Seafoods was one of the bigger winners in the first round of UK Seafood Fund Infrastructure Scheme funding. Image: Google Street View

The cash awards announced last week include £2.9m for Peterhead-based processor Denholm Seafoods, which is investing in new equipment to increase production of mackerel and herring landed in the Blue Toon.

Projects at Alness-based fish processor Aquascot and Mowi Scotland – part of Norwegian fish farming giant Mowi – were awarded £3.7m and £2m respectively.

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