asked the Secretary of State for Scotland what are the present arrangements to pay back moneys owing to the herring fishermen following the low price of 15s. offered by the Herring Industry Board for herring bought for reduction to meal and oil at its Stornoway factory.

The Chairman of the Board on 22nd April proposed to the fishermen's associations that the Board should make supplementary payments to the salesmen acting for the boats concerned to bring the price actually paid for herring bought since 1st September last up to 27s. 6d. per cran.

May I thank my right hon. Friend for that reply and for what the Government are now seeking to do to rectify this tragic mistake? Is my right hon. Friend aware that the fishermen, in addition to the small payment per cran last winter, suffered unemployment during the winter? Some had to invest money in different expensive fishing gear and some had to leave the industry altogether.

Yes, I am aware that some of the things my hon. Friend has mentioned took place. It is fair to say that if the Board had tried to make a guess earlier at the right price it would certainly not have been nearly so high as 27s. 6d. per cran.

Would my right hon. Friend pinpoint who was responsible for this discrepancy? Why did it take so long for it to be corrected?

The Chairman of the Board has accepted responsibility and the Board has expressed its regret. The Board submits accounts to my Depart- ment every six months, and the accounting period concerned was to 31st December. My Department received the accounts a few weeks after that and the mistake then came to light.

But is my right hon. Friend aware that from the time that the factory at Stornoway was paying 15s. a cran, the factory in Fraser-burgh was able to pay 27s. 6d. a cran rising to 33s. a cran? Is he further aware that had there been any sort of economic price for herring at the Stornoway factory, far more herring would have been landed at that factory and the fishermen would not have had to pay the costs of transporting herring from the West Coast ports to the East Coast for processing?

All this I accept, but it is in the past. The Board has accepted responsibility and acknowledged its mistake.

asked the Secretary of State for Scotland what steps he proposes to take in order to prevent a recurrence of the mistake in regard to the grant payable to the Herring Industry Board to cover the standing costs of its factory at Stornoway and to exercise tighter control over the Board's provision for depreciation of the factory.

The Chairman of the Board has assured me that he has made arrangements to prevent such a mistake recurring in future. The Board is discussing with my Department the arrangements to be made in future for the depreciation of the factory.

But is my right hon. Friend aware that there is a very real need to restore confidence in the industry with regard to its administration? What does he propose to do about it?

I will certainly discuss what my hon. Friend has said with the Chairman of the Board.

Is the right hon. Gentleman aware that what has been disclosed shows complete mismanagement and mishandling of the whole situation and calls for rather more than a mere apology either from the Chairman or from members of the Board? Does he propose to hold an inquiry into why this happened and into what has been happening in the past and, as a result of that inquiry, to report to the House what action he proposes to take to see that it does not happen in future?

I will certainly think about the hon. Member's suggestion. The information available to me at the moment does not suggest that an inquiry would bring out any facts which I do not already know.