FISHING communities are facing the prospect of being driven out of business after drastic cuts in the amount of fish they are allowed to catch.

And the restriction could see an increase of up to 20 per cent in the price of fish and chips, forcing it up to the price of a luxury food.

EU ministers yesterday agreed new quotas after 13 hours of talks, with cuts of more than 50 per cent in cod catches and 40 per cent in hake, in an attempt to preserve dwindling stocks.

Fisheries minister Elliot Morley claimed the deal was a victory for Britain's trawler fleet, but Shadow Chancellor Michael Portillo, on a visit to the North-East yesterday, accused the Government of caving in to pressure.

He said: "The Government is completely defeatist in these matters and is only concerned with having a quiet life."

But Yorkshire and Humber MEP David Bowe said the shortage of cod meant fishermen were unable to meet existing quotas and action needed to be taken to build up stocks.

Richard Brewer, a Whitby fisherman and director of the Anglo-Scottish Fish Producers Association, said the new deal would drive some of the North-East's 300 fishermen out of the industry.

He said: "It will hit the east coast fleet pretty heavily because our main income is from the species that have been cut.

"I'm afraid there are a lot of people who will go out of business and have to sell their boats."

A spokeswoman for the Sea Fish Industry Authority said the reduction could see an increase in the price of cod and haddock.

David Beedle, who runs fish and chip shops in Chilton and Bishop Auckland in County Durham, said the reduction in quotas could see the price of cod and chips rise by up to 20 per cent next year.

He said: "When there is a shortage it becomes harder to get quality fish and it is very concerning."