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EXPLAINED: Why are French fishermen so angry about Jersey’s post-Brexit fishing licences?

A protest over fishing licences granted by the tiny island of Jersey seems to have escalated out of all proportion with the UK government sending two gunboats to the area - but what are the French fishermen so angry about?

Published: 6 May 2021 14:48 CEST

EXPLAINED: Why are French fishermen so angry about Jersey's post-Brexit fishing licences?

French boats stage a protest off the coast of Jersey. Photo: Sameer Al Doumy/AFP

What is happening?

On Thursday between 50 and 70 French fishing boats staged a protest around the harbour of Saint Helier, the capital of the Channel Island of Jersey.

The boats gathered outside the island’s main harbour, in what was described as a blockade.

But Ludovic Lazaro, a French fisherman from Granville, told AFP that “we’re not really blocking. We’re all outside the port.”

But the departure of a cargo ship in Saint Helier was being held up, he said.

“The port captain in Jersey doesn’t want to let the cargo ship out if everyone is around here. He wants everyone to leave,” he said.

Camille Lecureuil, from the port of Carteret, added: “Everyone seems to have decided to stop the cargo ship from leaving. Fishing boats are moving into position at the entrance of the port.

“It’s a peaceful protest. There’s no reason for it to degenerate.”

On Wednesday evening the British government announced that it was sending two Royal Naval vessels to the area to monitor the protest, and on Thursday these were joined by two French police vessels, which had a mission “guaranteeing the safeguarding of human life” in case rescues are necessary, said the Préfet maritime de la zone Manche-Mer du Nord, the local authority which authorised the deployment.

The fishermen began departing from Jersey waters in the early afternoon of Thursday, with Lazaro saying: “Now it’s up to the ministers to work it out. We won’t be able to do much more.”

French fishing boats protest in front of the port of Saint Helier off the British island of Jersey. Photo by Sameer Al-DOUMY / AFP

Why are the fishermen so angry?

The issue is over fishing licences post-Brexit.

Jersey is a British crown dependency, but it’s only 19km off the coast of France and around 250 French boats regularly fish the waters around the island – supporting around 900 families and another 2,000 jobs on shore.

As part of Brexit-related fishing talks it was agreed that French boats which had habitually fished around Jersey would be allowed to continue doing so – but would need new licences.

Because of Jersey’s unusual status – owned by the British Crown but not actually part of the UK – these licences come from Jersey authorities, not the British government in London.

But the fishermen say that when they received their licenses they had new requirements and limitations which were not part of the agreement – with some fishermen licensed to fish for just one or two weeks out of the year.

“These fishing authorisations are inconsistent. Without explanation, the authorisations vary from 7 to 170 fishing days per year per boat,” fishermen told local paper Ouest France on Monday. “A vessel fishing whelk and lobster found itself with a permit only for whelks.”

Jean-Claude La Vaullée has been sailing his boat Cach in Jersey waters for 40 years. “And I’ve been granted… eleven hours of fishing per year. What is that? A tip?” he demanded.

The uncertainty of future access is also a major concern.

Théo Marais, a fisherman from the French port of Gouville, said: “I’m having my first boat built. I’m 24 years old, it’s a €825,000 boat that I’m not even sure I can launch! We love our jobs. We don’t want to live on aid, what we want is to work.”

How does Jersey respond to this?

Jersey officials have struck a conciliatory tone, talking of “misunderstandings” over the licences and saying that French fishermen can apply for extra licenses or extended fishing hours.

What do the Jersey locals think?

It depends who you ask, French fishermen say the locals are with them and agree that the new conditions are unfair.

Chris Le Masurier, the owner of the Jersey Oyster Company, described conditions placed upon the new post-Brexit fishing licences issued to Breton and Norman fishers as “insulting and discriminatory”.

But Don Thompson, president of the Jersey Fishermen’s Association, told British TV show Good Morning Britain: “The French fishermen out there want conditions removed from their licences so that they can fish with no constraints in our waters, whilst our boats are subject to all sorts of conditions.”

Are the fishermen really that angry?

There’s certainly been lots of angry rhetoric, with Jean-Claude La Vaullée saying that he and other skippers had now equipped their vessels to “re-stage the Battle of Trafalgar”.

But there are between 50 and 70 boats at the protest, which some say is just a protest rather than a blockade – by French protesting standards this is pretty mild.

There is a tradition of robust public protest in France, where strikes are common and frequently involve blockades, rolling road blocks and setting things on fire. In fact, Jersey officials should probably be thankful that no-one has been kidnapped yet.

Looked at in context, this protest is probably not something we should over-react to (in case anyone from the UK government is reading this).

Which politicians have stuck their oar in?

Away from the fishermen, tensions have been ratcheted up by politicians on both sides and the fact that Thursday sees local elections happening in the UK may not be a coincidence.

Although the issuing of the licenses is up to Jersey politicians, the UK is responsible for its diplomatic and international relations.

British Prime Minister Boris Johnson is, according to the UK media, personally responsible for the decision to send two gunboats to Jersey.

Tomorrow's front page: Boris sends gunboats to defend Jersey #tomorrowspaperstoday https://t.co/7GRW1FwQMt pic.twitter.com/6LuWBeYkdZ

— Daily Express (@Daily_Express) May 5, 2021

On the French side, Maritime Minister Annick Girardin escalated tensions on Tuesday by warning that France could cut electricity supplies to Jersey in retaliation.

Europe Minister Clément Beaune accused Britain of being to blame for failing to implement a Brexit deal that came into force on January 1st which should have guaranteed French fishermen the right to continue working in British waters.

“Our wish is not to have tensions, but to have a quick and full application of the deal,” he told AFP.

“That’s the case for Jersey and that’s the case for the licences we are waiting for in the Hauts-de-France region.”

Meanwhile Jersey’s external affairs minister Ian Gorst said: “We welcome the ongoing support from the prime minister and UK government to achieve a diplomatic solution to this dispute, and we are aware that the UK are sending two offshore patrol vessels as a precautionary measure to monitor the situation in Jersey waters.

“Diplomatic efforts will continue to resolve the outstanding issues relating to fishing licences and to de-escalate the situation, and we will continue to liaise closely with UK and EU officials over the coming hours and days to achieve a pragmatic solution.”

Member comments

Anonymous - 6 May 2021 at 15:45 CEST

Not sure that re-enacting Trafalgar would be a terribly good idea. Perhaps the French have forgotten the outcome.
Anonymous - 6 May 2021 at 16:00 CEST

Brexit or not – Lets remember that the European fishing fleet fish in British waters because they over-fished and destroyed their own breeding grounds.
Also Europe Minister Clément Beaune has a bad attitude towards the UK and has inflamed rather than calmed the situation (and many other situations). He needs to let someone more diplomatic hold the role. Threatening to cut off the islands electricity is tantamount to an act of war. Its politicians that are ramping up the tensions.
On the other hand now the Withdrawl agreement has been ratified then it the UK must live up to its obligations and complete the exercise and issue the remaining fishing licences.
Also Jersey was never part of the EU, and has always been responsible for its own fishing rules. Brexit has complicated the situation and now more French fishermen are chasing an ever decreasing share of the catch. None of them want to give up their fishing life – but it is time for them to face reality as the UK had to when it lost most of its fishing fleet when the UK joined the EU and got involved with the common fishing policy.
1. Anonymous - 8 May 2021 at 17:41 CEST
  
  Some give and take on both sides would sort things out. Jersey fishermen want to sell their catch in France and French fishermen want to continue fishing in Jersey waters. Provided it is all done in a scientifically balanced (to avoid overfishing) and reasonable way, everyone is treated fairly.
Anonymous - 8 May 2021 at 02:50 CEST

Most of these frenetic actions will calm down in short order.

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6 pension questions British people should ask before retiring to France

Retiring to France is a dream for many, but before turning that dream into reality there are some serious financial questions that you need to ask yourself to ensure that your retirement is a financially comfortable one.

For most retirees, their main or only income will be a UK pension, so it’s important that you understand how your pension will work once you make the move.

There are some specific rules and restrictions on taking pensions out of the UK, while there is also the question of how UK pensions interact with the French tax system.

Financial adviser, Maeve Hoffman, from Spectrum IFA Group, emphasised that people should not take these decisions lightly, telling The Local: “Figuring out what to do with your pension should be part of your wider financial plans for your life.

“This may be your most important asset, besides your home, and the best answer for what to do with your pension is highly individual. There are no sweeping generalisations when it comes to advice on private pensions. Everyone’s situation is different,” she said.

This article is intended as an overview of how the system works for UK pensioners and is not intended as a substitute for individual financial advice. The article is aimed at people who have worked most or all of their career in the UK and then intend to retire in France – the situation is slightly different for people who work in France and then retire here.

You can find an overview on French tax rules for pensions HERE.

Long-term or short-term

The first thing you need to carefully consider is whether or not your move to France will be for the long-term or short-term.

When it comes to your UK pension, there are some options that may be advantageous for French residents looking to stay here permanently, but they could make your life very complicated if you end up returning to the UK in the future.

Do not be afraid to ask yourself the tough questions – is there any chance you will have grandchildren in the future that you will want to be geographically close to? Have you ever spent a significant time in France, aside from short holidays? Do you have roots in France, such as friends, family or a home? If your health deteriorates, will you want to be cared for in France or the UK?

If are unsure about the answers to these questions, then take some time to really think about them. There are alternatives to permanently moving to France if you are unsure – for example, you could spend a few months a year here on a short-term visitor’s visa.

Understanding the different tax rules

British retirees should be aware that the UK and France have very different tax systems.

Once you become a tax resident in France, you have to file a yearly declaration, including your global income. The country that gets to tax that income is determined based on the tax treaty between the UK and France, which seeks to eliminate double-taxation.

As for your UK-based pension, the treaty states that if you have a UK government or civil service pension (eg a state school teachers’ pension), then this will remain taxable only in the UK. Some old NHS pensions were considered ‘government pensions’, but modern ones might not be. You can check if your pension is classified as ‘government’ here.

You still have to declare this income to the French tax authorities, but you will not be subject to tax in France on it. That being said, it will count towards your total household income, and could end up pushing you into a higher tax bracket which is something you should carefully consider, particularly if you want to take a large sum at once.

The same is not true of private pensions: these are taxed in France, not the UK, as soon as you become a tax resident here. Confusingly, the UK state pension is also considered a private pension, even though it is paid by the government.

You can find a complete guide to how UK pensions are taxed in France HERE.

As a result, you will want to think about whether your previous plans for your private pension were only advantageous to you as a UK resident. Once you become a French tax resident, they could have unforeseen implications.

You can find more information about tax rates in our tax guide.

Get reliable, expert financial advice before doing anything

If you have decided you want to be in France permanently, then you will need some expert tax and pension advice – but you need to be careful who you take advice from, this is a highly specialist area and it’s unlikely that high street financial advisers will have the knowledge that you need.

Brexit has also made getting financial advice more complicated, with fewer experts available.

Maeve told us: “Because of Brexit, you cannot use a UK-based financial adviser anymore – you have to use an EU-registered one. This has made things more complicated. When picking an adviser, seek out someone who has expertise on the local taxation rules in France. They should also be regulated with the financial regulator where you live and where they work.”

It can be especially complicated to parse out who you can and cannot take advice from – for example, some UK-based advisers have continued to give advice to EU-based clients, even though this can be particularly risky if the investments they recommend do not follow EU regulations.

There are also expat-oriented financial advice services that are located outside of France, but seek to offer tax advice to people in France.

She added: “Be smart and sensible. If you choose an adviser in Dubai or Spain for example, you will now be adding another regulatory organisation into the mix, plus another language.

“There are free, government-based services in the UK that can help you understand your private pension – Pension Wise and Money Helper. Before doing anything, you should consult the free services. Any financial adviser worth their salt would recommend this too.

“These services have begun to have longer wait times, so be sure to book well in advance of when you plan to draw from your pension.”

Deciding whether to transfer your pension

Another question that is important for Brits to think about is whether or not to transfer their pension into either a UK-based SIPP for non-residents, or a QROPS (Qualifying Recognised Overseas Pension Schemes).

The SIPP will keep your pension in the UK, while the QROPS moves it out of the UK, to Malta specifically.

These options can be helpful for French residents, but you need to familiarise yourself with their benefits and drawbacks.

“The QROPS is not for someone who is unsure of their future in France, as if you return to the UK within five years of the pension transfer HMRC will seek their tax back as if it was a full encashment,” Maeve said.

In France, a QROPS is considered a trust, you may also have additional reporting requirements to fill out along with your annual declaration (more info here).

You should beware of scams on this subject, as the post-Brexit period saw many scammers seeking to persuade Brits that it was now mandatory to transfer their UK pension – always be wary of any cold-calling or unsolicited financial advice.

Determining how you will want to draw from your pension

The next question is how you want to receive your pension – either as regular income or as a lump sum. The option that you chose will have tax implications in France.

If you receive it as a regular income, when doing your yearly French tax declaration, you will add up your pension income for that year and you will be taxed at the normal marginal rates for income (the barème). These rates go up to 45 percent (for the highest earners only) plus social charges if they apply (more on this below).

Pension income can also benefit from a 10 percent tax deduction, as long as it does not exceed €4,123 or fall below €422 per household.

Lump-sums are more complicated. Technically, French tax authorities would allow a return of once off pension capital to be taxed at a flat rate of 7.5 percent.

But in reality, Hoffman explained that anyone seeking to do this would need the express, written confirmation from French tax authorities that this rate will be applied.

She also explained that the type of private pension matters when seeking to get the lump-sum flat rate.

“There are plenty of different types of private pensions in the UK, but the old ‘defined benefit schemes’ have been the gold-plated standard. These are the types of pensions that give you a portion of your salary for the rest of your life.

“In principle, you should be able to take out lump-sum of 25 percent of your ‘defined benefit scheme’ pension and be taxed at the 7.5 percent flat-rate. That being said, some people get refused, so you cannot make any assumptions and you need clarification from the French tax office.

“As for all of the other types of private pensions in the UK, like the money purchase or personal pension schemes, these are considered to be ‘funds’. If you want to benefit from the lump-sum then you would have to take out the entire pension. You would not be able to just take out 25 percent and get the lump-sum rate.

“For anyone considering taking their whole pension and seeking to use the 7.5 percent rate there are conditions to be met, so I advise people to write to their French tax office and explain their own situation in detail. Be sure to clarify the tax rate you are seeking to have applied and ask what documents they would need from your UK pension company to confirm that the contributions to this pension have been tax deductible.”

Healthcare and social charges

Deductions in France come in two types – impôts (income taxes) and prélèvements sociaux (social charges).

People who retire to France (and have never worked in France) and have already reached the state pension age can apply for the S1 – this means that the UK continues to pay for their healthcare costs and they would not be charged prélèvements sociaux. Non-working spouses of an S1 holder can also benefit from this.

People who take early retirement and make the move before they reach state pension age may have to pay social charges in addition to taxes until they reach the state pension age and can apply for their S1. However, there are several exemptions to social charges, so even if you expect a bill, you may not end up being charged. More information in our guide.

Social charges help pay for a lot of services from the French government, including access to healthcare. In France, you can access the state healthcare system (and get a carte vitale) after three months of residency.

READ MORE: Why you might get an unexpected French health bill

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