Cod war compensation failures "incredible", MPs say

The government's administration of a compensation scheme for former trawlermen has attracted severe criticism from MPs.

The Commons' public accounts committee says the scheme, which took place in the two years from October 2000, contained "incredible" failures.

An investigation by the parliamentary and health service ombudsman found it had been introduced prematurely and could not deliver the service it was intended to.

Overall £42 million was distributed to around 4,400 former Icelandic trawlermen who had lost their jobs following the end of the 'cod wars' of the late 1970s.

The government could not show a quarter of the payments made fell within the compensation scheme's guidelines.

PAC chairman Edward Leigh said: "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 seems not to have been the case."

A Department for Business, Enterprise and Regulatory Reform spokesperson said the government would learn from its mistakes and admitted the compensation scheme was "not up to standard".