EUROPEAN COMMITTEE CALLS ON THE SCOTTISH EXECUTIVE AND E.C. TO RECONSIDER ASSISTANCE FOR SALMON FARMERS

Announcing the publication of the report committee member Maureen Macmillan said:

"Since 1998, Infectious Salmon Anaemia (ISA) has had a serious depressive effect on the Scottish aquaculture industry. Combined costs, including the loss of stock, price falls and reductions in capacity, have been estimated in the region of £70 - £100 million, with around 200 jobs lost.

"At present, when a fish farm is proven to be infected with ISA or Viral Haemorrhagic Septicaemia (VHS), current EC legislation means that the farmer effectively has to suspend trading. Obviously, this can have a massive financial impact on the business and the farm’s long term viability.

"In simple terms, our report addresses two key areas which are crucial in supporting Scotland’s aquaculture industry.

"Firstly, we are asking the European Commission to consider amending its veterinary legislation to add ISA and VHS to the list of diseases which qualify for financial assistance.

"Secondly, our committee believes that money could possibly be available from EC structural funds (which would require pound for pound match funding by the Scottish Executive). We are asking the Executive to give us its absolute reassurance that all possible avenues of Community financial support have been explored under the FIFG (Financial Instrument for Fisheries Guidance)."

Other key recommendations in the committee’s report include:

a call on the European Community institutions to:

• amend veterinary legislation to add ISA and VHS to the list of diseases qualifying for financial assistance under Decision 90/424.
• ensure transparency and consistency in the availability of Community money for the control of animal diseases
• explain why Norwegian salmon is allowed to enter EU markets when Norway does not follow the regime imposed on Scotland and the rest of the EU
• pursue scientific research to help determine the best policy to tackle the disease and seek assurance that the scientific evidence which determined ISA as a List I disease is still valid and assess the consequences of ISA being "downgraded" to a list II disease;

a call on the Scottish Executive to:

• confirm it has explored all areas of Community financial assistance
• change the regime imposed on farms suspected to have ISA
• look at a joint insurance scheme tied to the Code of Good Practice recommended by the Joint Working Group into ISA
• assist fish processors switching from using chlorinating effluents to alternative disinfectants such as ozonisation and particle screening
• keep the committee up to date with the administration of its Restart initiative.

The committee’s full report is available on the Parliament’s website (address below) or can be purchased in hard copy from all outlets of the Stationery Office.

Background Notes

The Scottish Aquaculture industry employs approximately 6,500 people, mostly in Rural Scotland, and is worth around £500 million per annum. The Scottish industry is the largest in the EU, although it is smaller than that of Norway.

ISA was first recorded in Norway in 1984. The disease was first recorded in Scotland in 1998, and since then a further 11 cases have been confirmed. ISA has had a severe impact on the industry in Scotland with a number of job losses. The Community regime forces Scotland to take action to eradicate the disease, whereas the Norwegian approach requires only ‘control’.

VHS is a list II disease affecting white fish. Only 1 case has been confirmed in Scotland (in 1994). Neither diseases pose any threat to human health.

After the initial outbreak of ISA, a joint industry/Government working group (JWG) was set up to look at the issue. It made a number of recommendations in January 2000.

On 30 May 2000 the European Commission approved a 3 year, £9 million Scottish Executive Restart package for the industry to be operated by Highlands & Islands Enterprise. The Executive does not regard this measure as compensation.

The committee’s membership is as follows:

Dennis Canavan, Hugh Henry (Convener), Richard Lochhead, Sylvia Jackson, Cathy Jamieson (Deputy Convener), Margo MacDonald, Maureen Macmillan, David Mundell, Irene Oldfather, Lloyd Quinan and Ben Wallace.