Fisheries Products Market Connectivity Scheme

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A decision made on 2 November 2021

Decision Reference: MD-E-2021-0044
Decision Summary Title	Fisheries Products Market Connectivity Scheme	Date of Decision Summary	2 November 2021
Decision Summary author	Private Secretary EDTSC	Decision Summary: Public or exempt?	Public
Written Report title	Fisheries Products Market Connectivity Scheme	Date of Written Report	2 November 2021
Written Report author	Group Director of Economy	Written Report: Public or exempt?	Public
Subject: Fisheries Products Market Connectivity Scheme
Decision: The Assistant Minister with delegated responsibility for fishing matters approved the Fisheries Products Market Connectivity Scheme, and agreed that funding in the sum of £130,000 should be made available from the Future Economic Partnership budget. This support will ensure Jersey’s fishing sector maintains access to export markets post-Brexit so that a base level of economic activity can continue whilst adjustments are made to working practices and export processes to deliver a sustainable long-term trade in fisheries goods. This contributes to the Common Strategic Priority objectives for the economy.
Reasons for Decision: The Jersey fisheries industry and its ability to continue in its current form is severely affected by the UK’s exit from the EU and ongoing impacts of the Covid-19 pandemic. There has been significant disruption to key markets and reduced access to traditional export markets, which account for the majority (over 80%) of fisheries product sales.
Resource Implications: There are no additional staffing or resource implications arising from this decision.
Action required: Officers to formally launch the scheme and guidelines to be published on gov.je
Signature: Deputy Kirsten Morel		Position: Assistant Minister for Economic Development, Tourism, Sport and Culture
Date signed:		Date of Decision (If different)

Fisheries Products Market Productivity Scheme

Economic Development,

Tourism, Sport & Culture

Ministerial Decision – Written Report

Approval for the Fisheries Products Market Connectivity Scheme

Date: Tuesday 02 November 2021

Author: Group Director Economy

Summary

The Jersey fisheries industry and its ability to continue in its current form is severely affected by the UK’s exit from the EU and ongoing impacts of the Covid-19 pandemic. The impacts include significant disruption to key markets and reduced access to traditional export markets, which account for the majority (over 80%) of fisheries product sales.

The ‘Fisheries Products Market Connectivity Scheme (2021)’ (the Scheme) is designed to provide interim financial support to the Island’s marine sector through the provision of funds to maintain market connectivity for the export trade - and in so doing to limit the requirement for other financial support interventions by the Government of Jersey by seeking to maintain existing trade dynamics during a period of significant disruption.

The scheme will run alongside other industry support measures which include initiatives to promote the local seafood market and provide payroll and fixed cost support to marine sector businesses.

The objective of this scheme is to deliver financial support to maintain a base level of viable economic activity in the marine sector whilst adjustments to working practices and export processes are made to deliver a sustainable long-term outcome for trade in fisheries goods and thereby contribute to CSP priority objectives for the economy.

Background

The fishing industry, including both the capture fishery and aquaculture sectors, is experiencing a combination of challenges which threaten its survival across both the short and longer term.

These challenges are a combination of Brexit and Covid related factors which have resulted in significant extra costs for businesses exporting goods to the EU via French ports (the main market for the Island’s fisheries products).

International tensions on a revised fishing licence regime, implemented as a result of Brexit, have resulted in the emergence of a range of non-tariff trade barriers which have caused significant detriment to Jersey businesses through the introduction of increased costs for exported fisheries products.

Re-direction of exports from the Port of Granville to the Port of St Malo, disruption to ferry timetables caused by the Covid pandemic and variable interpretation and implementation of a new export ‘technical process’ by French authorities have all contributed to increasing export costs for industry.

Assistance to freight and logistics providers and exporters, enabling market access for Jersey fishery products in recent months, has and will reduce the requirement for other government intervention (financial support) for the Jersey marine sector.

The principle for this support package was approved by the Brexit Ministerial Group meeting in March 2021.

Principles of the Scheme

The financial support will take the form of a direct payment to export operators (exporters and freight operators who can demonstrate the benefits of support are passed back to primary producers) to offset the costs which are over and above the costs incurred via BAU routes to market: essentially the cost of non-tariff trade barriers encountered by business which have significantly increased export costs or had trade prevented from taking place for exported goods (requiring their return or destruction).

This will maintain market access and financial returns to industry at a level consistent with conditions encountered when non-tariff trade barriers were not present i.e. without ‘additional’ costs accrued, due to external factors beyond the control of exporters or freight operators, or compensate businesses from losses on transport costs which may have occurred due to the failure of attempted exports.

The support is short term and will be required until a new trading regime is established and diplomatic relations have normalised, with facilities and operators returning to a ‘new normal’ sustainable trading pattern.

This support scheme focusses on preserving businesses which are core to Jersey’s marine industry and support will be delivered for export consignments where ‘additional’ export costs have been identified and independently verified by Jersey Business.

Objectives of the Scheme

Ensure that Jersey maintains export market access so that the core infrastructure and critical mass of the marine sector to continue to operate in a sustainable and economically viable manner.

Ensure that the ultimate beneficiary of the support is the primary producer - insofar as the financial support will offset the actual increase in transport and logistics costs for exports and resulting market returns are thereby maintained at levels comparable with the pre-existing trading regime.

Scope of the Scheme

Claimants (corporate or sole traders) will be exporters of fisheries products or freight operators transporting fisheries products to export markets.

Claimants will be required to clearly demonstrate and evidence the nature and amount of ‘additional’ costs for each export consignment claimed for under the Scheme. This calculation will factor transport and logistics costs under the previous trading regime vs. costs under current trading conditions.

The Scheme is intended to maintain a base level of economic activity focussing on access to existing markets and will not provide support for the development of new markets or underwrite the value of consignments – this may be addressed under alternate arrangements.

Claimants will be required to be able to clearly demonstrate that the financial support has directly benefitted Jersey based primary producers.