Seafish is set to begin discussions with the U.K. seafood industry on reducing its standard rate of levy by 10 percent — the first review into changing the levy rates charged to the industry in more than 14 years.
The proposed cut is a result of a full financial assessment that determined the budget needed to deliver industry projects. The 10 percent reduction will affect more than 90 percent of businesses that currently pay the standard levy rate, and Seafish believes it presents the fairest and simplest way to reduce cost on industry while still delivering the service required.
The reduction would see Seafish’s income drop from GBP 8 million (USD 12.4 million, EUR 9.3 million) annually to about GBP 7.2 million (USD 11.1 million, EUR 8.4 million).
The proposal aims to address the imbalance between the “standard” levy rates applied to most fish and shellfish and the lower rates that apply to cockles, mussels, whelks, pelagic fish, fish for fishmeal and imported fishmeal.
The seafood industry now has until 6 September to respond to the proposal. Seafish will gather and analyze the feedback before publishing a response document along with its formal proposals in late 2013. If passed, the new rate could take affect by April 2014.
“It is important that we hear from industry loudly and clearly on whether they support a levy rate reduction or not. Having looked at a number of different options over the past few months, we believe we have arrived at the fairest and simplest solution to help reduce the financial burden on the vast majority of businesses that pay levy,” said Paul Williams, CEO. “It is, however, for industry to decide.
“Seafish has changed for the better since autumn 2011 when we asked industry whether it still needed a body like Seafish. The industry responded with an emphatic ‘yes,’ but said that change was needed to make Seafish the body they required, and asked Seafish to improve its offer. Industry believed that a statutory levy remained the fairest way to fund an organization whose objectives span a diverse industry but, to ensure that it was collected on a fair basis, a review of levy rates should be agreed.”
