UK still dealing with compensation hangover of ‘cod wars’

British MPs are discovering that the compensation scheme they delivered to trawlermen who became unemployed as a result of ‘cod wars’ was seriously flawed, according to a parliamentary and health service ombudsman.

The cod wars were a largely peaceful face-off between Britain and Iceland in the 1970’s over fishing rights between the two countries. Ships were rammed and nets were cut, and in the end Britain lost its access to the waters around Iceland.

Although the fishing industry collapsed in 1976, the compensation scheme was only launched in 2000. A report on the scheme was recently released by the Commons public accounts committee.

According to the report, the Department for Trade and Industry devised the compensation scheme without having a clear understanding of working practices in the fishing industry and without holding consultations with those most affected by the cod wars.

Claimants to the scheme have been paid over £42 million since 2000 but many are still feeling frustrated, particularly by long delays. There are 4,400 former trawlermen and their dependants covered by the scheme.

Edward Leigh, a committee chairman, said the compensation scheme was “overly complicated and mirrored many of the mistakes made in a similar programme to compensate former coal miners suffering from ill health”.

He added: “After 20 years of waiting, former trawlermen might have hoped that when a compensation scheme was finally announced it would be simple, practical and fair. Sadly, that has not been the case. After so long, it is incredible that the project seems to have been introduced before being fully thought through.”