A report from the prime minister's strategy unit has warned that the UK fishing industry must reform and downsize if it is to survive.

The study says that the UK's fishing industry can be profitable and sustainable in the long term but must modernise to meet global competition.

The report "Net benefits: A Sustainable and Profitable Future for UK Fishing" proposes a possible long-term strategy for improving the fortunes of the industry and the communities which depend upon it.

It calls for the removal of at least 13 per cent of the whitefish fleet beyond the 2003 decommissioning scheme.

The report says sustainability of fish stocks is only possible if the vast majority of the industry supports and obeys the rules. "Without this, stock recovery and effective management is undermined," it adds.

And it calls for the the use of community quotas to assist vulnerable and dependent fishing communities.

The study emphasises that success would depend on bringing the industry and other stakeholders into a partnership with government over management decisions.

The report also says that that the fishing industry will gain more from the UK staying in the Common Fisheries Policy but at the same time calls for major reforms to it - especially to allow regional management of fisheries.

It says fish management must be decentralised to recognise the "unique biological and economic characteristics".

Blair welcome

Commenting on the report Tony Blair said: "There is widespread concern about the future of the UK's fishing industry. That is why I asked the strategy unit to assess the issues facing the UK marine fishing industry and recommend action to create a stable future both for the industry itself and for the communities that depend upon it.

"I welcome the results and echo its calls for all the key players to come together to manage the resources - whether their interest is in scientific and environmental matters, the catching and processing industry, or in tourism and development.

"Now I want the UK to give a lead in reforming the Common Fisheries Policy - by pushing the European Union further down the path of managing fish stocks on a regional level.

"This will give us more influence over the type of management regimes that best suit our fishing waters."

Fisheries minister Ben Bradshaw denied that the report painted a bleak picture for the industry.

"This report conveys the very important message that the UK fishing industry can be profitable in the long term, provided that it modernises to meet global competition," he said.

"It offers an extremely valuable and detached analysis of the situation in British fishing, which we must now use as the catalyst for taking the industry and its stakeholders forward."