Spanish win legal fish fight

Spanish fishermen: set for a bumper catch from the British Government

Spanish fishermen have been given the go-ahead to sue the British Government for millions of pounds in lost earnings.

The Court of Appeal in London ruled the fishermen can sue after their boats were illegally prevented from quota-hopping by the 1988 Merchant Shipping Act.

Compensation is currently estimated at £80m and could eventually reach £100m, according to a lawyer acting for the fishermen.

Lord Woolf, Master of the Rolls, sitting with Lord Justice Schiemann and Lord Justice Robert Walker, ruled that 97 owners and managers of vessels were entitled "in principle" to claim damages.

The test case decision followed a ruling by the European Court of Justice that the fishermen were illegally prevented from quota-hopping by the Merchant Shipping Act.

The act says only British-owned boats are entitled to a share of the national fishing quota.

But in 1992 the European Court of Justice ruled the nationality conditions were inconsistent with European obligations on the freedom of movement and capital as well as the right of establishment.

'Figure rising every day'

Vessel owners estimate each boat lost between £350,000 to £500,000 of income because of the act. They will now have to prove the losses on a case-by-case basis.

Stephen Swabey, solicitor for most of the successful fishermen, said the appeal ruling "is a clear finding that the breach was sufficiently serious to found a claim for monetary compensation for the time that vessels were laid up by reason of the Merchant Shipping Act".

He said: "The estimated figure up to now is £80m, but that won't be the final figure.

"With costs and interests the figure is rising day by day and won't be very far out from £100m."

'A dreadful decision'

The decision was immediately attacked by fishing leaders. It was described as "another kick in the teeth" for the industry by the chairman of the Devon-based South West Fish Producer Organisation.

"It is a most dreadful decision," said Mr Cook, adding: "The fact the industry are not going to have to pay it personally does not really matter.

"I think it will certainly lower morale in the industry. It is bad enough these people have stolen our fish, which has had a direct effect on the industry, without them now having compensation."

A spokesman for the Ministry of Agriculture, Fisheries and Food said the government was disappointed by the ruling. Its lawyers are studying the judgment and have four weeks to appeal.