Trawlermen still losers as Cod Wars compensation plan closes

A watchdog has been asked to intervene for a second time over the payment scheme for men – many of them based around the Humber – who lost their jobs fishing in Icelandic Waters after the 1970s Cod Wars.

Hull West and Hessle MP Alan Johnson, the Shadow Home Secretary, has accused officials of creating the problem because they ignored the advice of fishermen's representatives and MPs when the Government was forced to set up a second wave of compensation following a damning report into the injustices of the initial scheme by Parliamentary Ombudsman Ann Abraham.

In some cases men who spent 18 years at sea – and should have been entitled to 1,000 per year – have ended up getting less than 6,500 while one man from Hessle is thought to have lost out on 10,000 it is claimed he should have received.

Mr Johnson and Grimsby MP Austin Mitchell have asked Ms Abraham to investigate a new batch of cases, which could put lead to a third round of payouts.

The complaint is the latest stage in the epic battle for compensation for ex-trawlermen.

The Government finally agreed to set up a scheme in 2000 but they had to continue fighting to correct several flaws. It took criticism from the Ombudsman and MPs before Ministers agreed to close a loophole that only recognised continuous service, costing men who had breaks in service thousands of pounds.

Yesterday the Government said 3.7m has been paid out to just over 600 claimants under the new scheme, which closed to applications in April. In total, 3,400 men or their families applied and 400 appeals have already been received.

"We believe that the new scheme delivers the Government's objective of compensating former trawlermen for the loss of their livelihoods following the Cod War Treaties of the 1970s, and that we have met in full the recommendations made by the Parliamentary Ombudsman in her 2007 Report," said the Government statement.

"Total payments of around 60m have now been made to trawlermen under this and the two previous compensation schemes, and we believe this issue has now been brought to a successful close."

But Mr Johnson dismissed that claim, saying: "It's a long way from a success. I wish it was a success."

He has complained about new eligibility criteria which mean only men who worked for two years during the Cod Wars are eligible.

He is also angry after discovering payouts were being calculated per week spent at sea rather than a lump 1,000 per year, meaning only men who were at sea every week of the year – an impossibility – would get their full amount.

He has taken up several cases including Reg Brown, from West Hull, who spent 18 years at sea but got only 6,434.36 from the first scheme because compensation was cut if men had a break of more than 12 weeks in their service. He has been unable to benefit from the second scheme.

Ken Grantley, also from West Hull, received just 2,673.07 despite spending his entire working life at sea but also fell foul of the new rules.

A spokesman for the Department of Business, Innovation and Skills, said: "The Ombudsman's report did not ask us to make additional payments to everyone.

"She recommended that we run a new scheme that was fairer than the previous one, and make additional payments wherever this was required under the terms of the new scheme.

"That is exactly what we have done."