This is why you'll probably be eating American lobster soon

UK lobster: the world is no longer its oyster.

Those of you getting used to seeing cheap frozen lobsters in supermarket freezers and shaking your heads at the distinctly non-luxury pricetags, may be surprised to hear the UK is suffering a crustacean supply crisis.

According to Alistair Sinclair, chairman of the Scottish Creel Fishermen’s Federation (SCFF), the UK’s ongoing triple-dip winter has seen grim weather on the East coast of Scotland wreck fishing gear, leaving lobstermen stuck on shore, and depleting stockpiles to the point of exhaustion.

“The boys haven’t been out for five months” warns Sinclair, whose organisation represents a £39m per year industry, “and when they do get out, they’re finding that a lot of the gear is damaged, so they’re having to spend more time on shore to repair it.”

The last year’s Scottish lobster catch was 90 per cent down year-on year, he says, and the ponds and vats in which the Autumn catch was stockpiled for distribution over the Christmas period are now long empty.

What comes next is a massive hike in UK-caught lobster prices - according to the BBC, the Scottish market has already seen them shoot from £15 to £25 per kilo in the last three weeks. Restaurants are hauling lobster dishes off menus, or worse yet, in Sinclair’s view at least, switching over to using imported North American stock.

It is, by and large, exports from Northeastern US and Canadian fisheries that lie behind the rash of cheap lobster appearing in the UK over the last few years – an economic shift also rooted in sweeping environmental change.

With cod, a major predator of young lobsters, being long scarce in the waters off America’s Eastern Seaboard, and warmer temperatures increasing the density of food available to young animals, lobster fisheries have boomed, leading to an unprecedented crash in prices.

The summer of 2012 saw Maine lobster prices collapse from around $4 per pound to just $2 per pound, spurring Maine’s Lobster Advisory Council to throw $3m of marketing money into convincing Americans to eat more lobster, and spurring exporters to push even more frozen decapod into overseas markets.

“I’ve eaten one of those £6 lobsters” says Sinclair, “or rather I should say, I’ve eaten part of one. I can assure you they are not the same as Scottish stock.”

But it’s not just budget Euro supermarket chains offering the overseas stock – relatively upmarket chains like London’s Burger & Lobster, which sells lobster at a flat price of £20, get all their stock from Canada, and do not expect to see prices increase as a result of the problems in Scotland.

Yet while there is an issue of quality at stake here, the greater worry is economic and social: with the UK gorging itself on American lobster and domestic prices skyrocketing, Sinclair says that a great deal of his federation’s 500 members stand to lose their livelihood altogether.

“We have to do something to catch up. The American fisheries are 20-30 years ahead of us” he says.

In order to close the gap, the SCFF is seeking government support for the construction and maintenance of lobster hatcheries: a facility measuring just six feet by six feet, Sinclair says, is capable of putting out five million lobsters per year, and would ensure a greater density of catch for those fisherman able to get out in bleak weather.

But until something shifts on this front, it seems UK consumers with a taste for lobster should get used to the taste of Eastern Atlantic stock.

Delicious. Photograph: Getty Images

By day, Fred Crawley is editor of Credit Today and Insolvency Today. By night, he reviews graphic novels for the New Statesman.

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BHS is Theresa May’s big chance to reform capitalism – she’d better take it

Almost everyone is disgusted by the tale of BHS. 

Back in 2013, Theresa May gave a speech that might yet prove significant. In it, she declared: “Believing in free markets doesn’t mean we believe that anything goes.”

Capitalism wasn’t perfect, she continued: 

“Where it’s manifestly failing, where it’s losing public support, where it’s not helping to provide opportunity for all, we have to reform it.”

Three years on and just days into her premiership, May has the chance to be a reformist, thanks to one hell of an example of failing capitalism – BHS. 

The report from the Work and Pensions select committee was damning. Philip Green, the business tycoon, bought BHS and took more out than he put in. In a difficult environment, and without new investment, it began to bleed money. Green’s prize became a liability, and by 2014 he was desperate to get rid of it. He found a willing buyer, Paul Sutton, but the buyer had previously been convicted of fraud. So he sold it to Sutton’s former driver instead, for a quid. Yes, you read that right. He sold it to a crook’s driver for a quid.

This might all sound like a ludicrous but entertaining deal, if it wasn’t for the thousands of hapless BHS workers involved. One year later, the business collapsed, along with their job prospects. Not only that, but Green’s lack of attention to the pension fund meant their dreams of a comfortable retirement were now in jeopardy. 

The report called BHS “the unacceptable face of capitalism”. It concluded: 

"The truth is that a large proportion of those who have got rich or richer off the back of BHS are to blame. Sir Philip Green, Dominic Chappell and their respective directors, advisers and hangers-on are all culpable. 

“The tragedy is that those who have lost out are the ordinary employees and pensioners.”

May appears to agree. Her spokeswoman told journalists the PM would “look carefully” at policies to tackle “corporate irresponsibility”. 

She should take the opportunity.

Attempts to reshape capitalism are almost always blunted in practice. Corporations can make threats of their own. Think of Google’s sweetheart tax deals, banks’ excessive pay. Each time politicians tried to clamp down, there were threats of moving overseas. If the economy weakens in response to Brexit, the power to call the shots should tip more towards these companies. 

But this time, there will be few defenders of the BHS approach.

Firstly, the report's revelations about corporate governance damage many well-known brands, which are tarnished by association. Financial services firms will be just as keen as the public to avoid another BHS. Simon Walker, director general of the Institute of Directors, said that the circumstances of the collapse of BHS were “a blight on the reputation of British business”.

Secondly, the pensions issue will not go away. Neglected by Green until it was too late, the £571m hole in the BHS pension finances is extreme. But Tom McPhail from pensions firm Hargreaves Lansdown has warned there are thousands of other defined benefit schemes struggling with deficits. In the light of BHS, May has an opportunity to take an otherwise dusty issue – protections for workplace pensions - and place it top of the agenda. 

Thirdly, the BHS scandal is wreathed in the kind of opaque company structures loathed by voters on the left and right alike. The report found the Green family used private, offshore companies to direct the flow of money away from BHS, which made it in turn hard to investigate. The report stated: “These arrangements were designed to reduce tax bills. They have also had the effect of reducing levels of corporate transparency.”

BHS may have failed as a company, but its demise has succeeded in uniting the left and right. Trade unionists want more protection for workers; City boys are worried about their reputation; patriots mourn the death of a proud British company. May has a mandate to clean up capitalism - she should seize it.