The eligibility criteria for the emergency seafood fund, which has been introduced by the Department for Environment, Food and Rural Affairs (Defra), will leave many fishing firms unable to gain full compensation for the disruption caused by Brexit, according to Seafood Scotland.
Defra had previously rolled out a £23 million Seafood Disruption Support Scheme (SDSS) for seafood exporters after new exporting systems and regulations resulted in severe delays and price drops.
In order to qualify for support, businesses must meet a criterion of 14 measures, which includes having to provide three years of financial accounts and having to provide evidence of lost business.
The scheme opened on 9th February 2021 and all claims must be submitted by 28th February 2021.
“It’s probable that these companies will never be fully compensated for what they have lost and are still losing, but the damage could still be limited if the systems were workable and export gets back on track quickly.”
Commenting on the scheme, Donna Fordyce, chief executive of Seafood Scotland, said: “Since 1st January, seafood exports have slowed to a trickle as companies struggle to navigate systems that are not fit for purpose, being tested in real time, and are creating an intractable barrier to trade. Some companies have even given up trying and have put their businesses on ice for the time being, at great financial suffering to their owners, staff, families, and communities.
“We hoped the £23m would go some way to alleviating the pressure, while the existing problems could be resolved. However, the initial industry feedback today is one of disappointment, with many companies instantly realising they will be ineligible for support.
“This includes companies that have simply had to stop trying because their product has not been getting through or, seafood businesses whose long-standing orders from customers in the EU have dried up because of the export crisis. Companies cannot produce health certificates and other documentation for orders never made because of a lack of customer confidence that product would reach the EU on time, and in peak condition.
“It’s probable that these companies will never be fully compensated for what they have lost and are still losing, but the damage could still be limited if the systems were workable and export gets back on track quickly.”
