Copy to:-
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D. I C.R.O.
Foreign Office
PRIVATE OFFICE
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Mr. Rogers
Mr. Hancock
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PUBLIC RECORD OFFICE
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(THIS DOCUMENTAS THE PROPERTY OF HER BRITANNIC MAJESge25900VERNMENT)
SECRET
C.P.(55) 200
14th December, 1955
CABINET
COPY NO.
58
WHITE FISH SUBSIDY
Memorandum by the Secretary of State for Scotland and the Minister of Agriculture, Fisheries and Food
Authority is given under the White Fish and Herring Industries Act of 1953 for the payment of white fish subsidy for the near and middle water and the inshore fleets until 31st March, 1958. The rates of subsidy are determined from time to time under schemes requiring the affirmative resolution of both Houses. A scheme prescribing the rates and making certain cuts for the seven months January/July, 1956, has been laid and is to be taken next week. Though the financial results of the industry as a whole have clearly improved the reductions proposed are arousing disquiet in the industry and serious opposition in the House.
2.
While the industry as a whole is strongly opposed to any cut opposition from the Conservative Members is concentrated on the proposed cut for the inshore fleet (motor boats under 70 ft. in length) from the present figure of 10d. to 6d. per stone of white fish landed. This cut of 40 per cent is much larger than the cut being applied to the motor vessels of the near and middle water fleet (about 15 per cent), the case for which can be justified on the basis of known operating data. The inshore fleet is mainly composed, however, of small working owners whose operating accounts are not available.
3.
The gross earnings of the inshore fleet have been improving by 8 per cent in 1954 over 1953 and by a further 11 per cent in January/ October, 1955, over the same period of 1954; and a substantial number of new boats is being built with grant and loan assistance from the Exchequer.
There are, however, three factors on the other side:
(i) Operating costs have been steadily rising and continue to do so. We believe that the improvement in proceeds has more than kept pace, but exact and complete data are not available.
(ii)
The actual level of profit in the inshore fleet is
not known.
(iii)
The inshore fleet comprises a wide variety of boats
and covers many kinds of fishing and the fleet is scattered all round the United Kingdom. While most sections may well be making reasonable profits - and a survey carried out in 1952/53 gave evidence that it was so then others almost
Page 259 certainly are not.