Abstracts - John Anderson

Presentation Title: The Future of the Market Based Approach Towards Quota Management in the Uk - The Case of the Shetland Isles
Presenter:   John Anderson (1)
Presentation Time: 3.30pm - 3.45pm
Co-Authors:    Jim Watson (2)
Affiliations:   (1) - Sea Fish Industry Authority, UNITED KINGDOM
(2) - Scottish Executive Environment and Rural Affairs Department, UNITED KINGDOM

       

Introduction

 

Community quota schemes have been introduced in some UK fishery dependent areas in an attempt to address the detrimental effects of the current market based approach to quota management. The most established and largest scheme operates in the Shetland Isles, where there was concern quota holdings could be traded out-with the community as the trade in quota developed.

 

Methods and Materials

 

Methods involved desk-based background research and face-to-face interviews with stakeholders from the Shetland catching sector, including fishermen, vessel agents and Shetland’s Fish Producers’ Association (sSFPO). Both quantitative and qualitative questioning techniques were employed.

 

Results 

 

The Shetland ‘pooled’ community quota system was setup to safeguard future fishing opportunities allowing young fishermen to affordably gain access to the fishing industry. This was possible as Shetland fishermen were given preferential access to quota below the market rate. Consequently, the scheme was found to contravene E.U. State Aid law, resulting in their competitive advantage being removed. However, both before and after the EU ruling the scheme failed to encourage new vessel builds or increase employment. In addition, fishermen generally disliked the lack of transparency and financial costs attached to this method of allocation.

 

Conclusions

 

The ‘pseudo’ ITQ system fails in the following respects: Clarity of ownership; confusion over property rights and responsibilities of quota holders; provision of a liquid and transparent market in fishing opportunities; inhibits investment and long-term planning. The Shetland experience suggests UK Quota management is at a crossroads. Fisheries managers have a choice between a formal ‘ITQ’ system and a more community-based approach.

 

Methods - This research was commissioned by the Scottish Executive Environment and Rural Affairs Department (SEERAD) as part of a wider research programme to analyse the effectiveness of community quota schemes in the UK, one of the work-streams of the UK Quota Management Change Programme (QMCP).

 

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