SEAFOOD BODY DEMANDS GREATER GOVERNMENT SUPPORT

Fast-growing seafood body demands greater government support.

Scotland’s seafood processing sector is challenging ministers to help remove a series of blockages that stand in the way of its modernisation and development.

The Scottish Seafood Association, which represents 81 small, medium and large processors, up from 67 just 18 months ago, has identified a range of issues which are holding the sector back.

During a “constructive” meeting this week with Scottish minister for public finance and digital economy Kate Forbes at Nolan Seafoods in Aberdeen, SSA executive officer Jimmy Buchan highlighted:

• The need to extend the Scottish Government’s current proposed window of 12 months for business rates exemptions

• The industry’s belief that reclassification of premises from industrial buildings to food production units to reduce business rates should be explored
• The importance of a level playing field for large and small companies when it comes to State Aid.

Mr Buchan said: “We had a very constructive meeting with the minister, who is genuinely willing to help and recognises the rather unique situation and needs of the sector.

“Ministers have agreed to support focused management to help steer the industry towards a profitable future through innovation and the identification of potential efficiencies.

“For that we are very grateful, however more work needs to be done and quickly to allow our members to expand and prevent greater volumes of fish being trucked directly for processing in other parts of the UK.

“The presently proposed year-long business rate exemption is too short – for processing businesses to have the confidence to invest in new-builds or extensions, three to five years on a sliding scale would be more realistic given the variations in the availability of raw materials caused by fluctuating TACs (total allowable catches).

“As for classification, these are not industrial buildings, they are bespoke food production units and should be recognised as such. It is possible that this would significantly change the rateable values of the properties for the better.

“And the de minimis rules on State Aid need to be relaxed because they are restricting the large businesses in particular, which have a big impact on local economies in terms of jobs and procurement of raw materials.”