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Karen Adam is now the MSP for Banffshire and Buchan Coast

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30 January 2019

Local MSP Comments on Fish Processing Business Rates

Banffshire & Buchan Coast MSP Stewart Stevenson has spoken out in response to what he considers being exaggerated claims about the differential between business rates for fish processors in the North-east as compared with Humberside, and the selective interpretation of a recent report by the industry body, Seafish.

Commenting, Mr. Stevenson said:

“As the MSP for Banffshire & Buchan Coast, I am extremely supportive of the fishing industry. I have made little by way of public comment in order that the processors from my constituency have been given the best opportunity to make their case to the Ministers, and I have assisted them with that goal. I have actively pursued the sector’s concerns about business rates with the Cabinet Secretary for the Economy, and have met with the Minister for Public Finance. However, it would appear that the issue has been hijacked by opposition voices who seek to use it as a diversionary political tactic, or as a stick to beat the Scottish Government.

“In fact, an objective interpretation of the Seafish report clearly indicates that it is the post-Brexit barrier to employing European labour which presents the far bigger challenge to the fish processing industry. The report observes that: ‘in the case of fish processing in north east Scotland, businesses have long been based in the area as all the factors have been favourable’. It goes on to say that: ‘Overall, since the availability of labour is key to production, for a firm that has sufficient workers in its current location, relocation of production does not appear to be an obvious, immediate solution to higher property costs in the area given the overall shortages of labour in the economy’.

“While there is no question that the buoyant economy of the North-east has resulted in increased business valuations, those are not set by the Scottish Government - they are set by the office of the Scottish Assessor, which is wholly independent. In practice these are harmonised with their counterparts in England and Wales. While Hull and Grimsby may have had rates reductions, that is the consequence of having a less vibrant economy than that which we have enjoyed in the North-east for many years.

“In fact, successive Seafish reports clearly demonstrate that although business rates in Aberdeen City are regrettably, but perhaps understandably, higher - the rates for Peterhead are almost exactly on par with those for Hull and Grimsby, and Fraserburgh and other North east towns are significantly more competitive. This must also be taken in the context of the massive investment made by the port authorities, and a third year of record-breaking landings in Peterhead. Consideration must also be given to the fact that the Scottish Government Small Business Rates Relief means that Scottish premises with a rateable value of less than £15,000 per annum are exempt from payment.”

Commenting on criticism of the appeals process, the MSP said:

“I advised businesses in my constituency to appeal against any increase in the 2017 valuation which they considered unreasonable. Opposition politicians subsequently alleged that there was a backlog of appeals which ‘could take years’ to be heard. I therefore raised that with the Minister for Finance, and I am pleased to say that I have been advised that most of the appeals against those revaluations have now been resolved.”

Mr. Stevenson concluded that:

“The challenges facing our processing industry in the future go far beyond the issue of business rates, and our industry leaders must avoid being distracted from addressing them. Chief among them will be the need to increase efficiency and automation, while maintaining the traditional values and high standard product for which the North east is famous.

“At our meeting at the end of last year, the Minister for Public Finance was extremely receptive to my concerns for the future of the industry, and expressed an interest in working with the sector to formulate appropriate financial support for those companies seeking to invest in improving productivity. I would therefore suggest that we should focus on the bigger picture with a view to future-proofing our local businesses, rather than fixate on the issue of business rates - and I would be pleased to assist any constituents to that end.”

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