The Government has
launched a new scheme to compensate former Icelandic-water
trawlermen who lost their livelihoods following the Cod Wars of
the 1970s.
From today, all trawlermen who fished in Icelandic waters during
the Cod Wars will be able to claim for additional payments. They
will have nine months to submit claims, with the first payments
expected in the autumn.
Employment Relations Minister, Lord Young of Norwood Green said:
“This new scheme will mean that trawlermen who received less than
they expected through the previous compensation scheme will be
able to apply for extra payments. We expect payments under the new
scheme to total £5-10 million.
“Around 1,000 trawlermen should benefit, based on the time served
on vessels that fished in Icelandic waters in the last twenty
years of their career. We have removed the breaks rule from the
previous scheme. This scheme will give trawlermen a fair deal.”
The breaks rule in the previous scheme that ran from 2000 to 2002
was found to be unfair by the Parliamentary Ombudsman. Following a
review, the Government decided to run a new scheme based on
aggregate service on vessels that fished in Icelandic waters,
rather than continuous service, as before. This follows a
government consultation where around 450 people had their say on
how the scheme would work.
The Government has decided to add the Thessalonian to the list of
Icelandic vessels eligible for the new scheme and will also
consider the case for adding further vessels. It hopes to finalise
the list of vessels in November, and the first payments will be
made shortly after that.
For more information or to request an application form call the
dedicated helpline on
0845 604 3477 or visit www.bis.gsi.gov.uk.
Notes to Editors
1. The origins of the trawlermen scheme lie in the collapse of
the distant water fishing industry in the wake of the ‘Cod Wars’
during the 1970s. These fishing disputes between the UK and
Iceland were brought to an end by an agreement in 1976. Under this
agreement, the UK recognised a 200 mile fishing limit around
Iceland, with the result that many UK distant water trawler men
lost their livelihoods in the following years.
2. At the time the trawlermen were regarded as being
self-employed, which meant they did not qualify for redundancy
payments.
3. Following developments in employment case law, the Department
for Employment paid £14 million to 9,000 trawlermen under an
ex-gratia scheme between 1993 and 1995. This scheme was criticised
because payments were made on the basis of length of service for
each employer.
4. A second compensation scheme was open to claims between
October 2000 and October 2002. This was a quasi-redundancy scheme
under which payments were calculated depending on the length of
each trawlermen’s continuous service in the Icelandic waters
fishing industry. Under this scheme, a further £43 million was
paid to 4,400 former trawlermen or their dependents.
5. In 2007 the Parliamentary Ombudsman recommended the Government
review the criteria and rules of the 2000-02 scheme. She found in
particular that the breaks rule in that scheme meant that some
trawlermen with long careers in the industry had received smaller
payments than they might reasonably have expected.
6. Under the new scheme, the Government will calculate payments
for each trawlerman on the basis of his aggregate service on
vessels that fished in Icelandic waters, in the last twenty years
of his fishing career. Where this calculation produces a higher
payment than that already made under the previous schemes, the
Government will pay the difference. The Government will not of
course be claiming payments back where the reverse is the case.
Department for Business, Innovation & Skills
The Department for Business, Innovation and Skills (BIS) is
building a dynamic and competitive UK economy by: creating the
conditions for business success; promoting innovation, enterprise
and science; and giving everyone the skills and opportunities to
succeed. To achieve this it will foster world-class universities
and promote an open global economy. BIS - Investing in our future.
Contacts:
BIS Press Office
NDS.BIS@coi.gsi.gov.uk
Joe Upton
Phone: 020 7215 5959
Joe.Upton@berr.gsi.gov.uk