Transcript eng.atvinnuvegaraduneyti.is

Icelandic Fisheries Legislation
Development and Experience
Presentation
November 2005
The Icelandic Fishing Industry
• Catches 1,7 – 2,1 million tons
• Normally 2% - 2,5% of the world’s catches of wild
fish
• Market value of seafood around 2 billion US
dollars
• Most important exporting industry in Iceland
• 60% of merchandise exports
• 40% of total exports of goods and services
Catch in Icelandic Fishing Grounds
1905-2004
PILLARS OF FISHERIES MANAGEMENT
• HOW MUCH?
• WHO?
• HOW (WHERE,WHEN)?
Milestones in Control of Fisheries
• 3 miles in 1901
• Icelandic Law on Scientific Conservation of the
Continental Shelf Fisheries in 1948
• 4 miles in 1952
• 12 miles in 1958
EFFECTIVE MANAGEMENT
IMPOSSIBLE
• Capacity Increases
• Productivity Gains
• In 1975 Foreign Vessels Were Catching
–
–
–
–
About a Third of the Cod
A Quarter of the Haddock
Half of the Saithe
Half of the Redfish
• 50 miles in 1972
• 200 miles in 1976
• UN Convention on the Law of the Sea 1994
PROBLEMS IN SPITE OF EXTENSIONS
• HOW MUCH and WHO problems not solved by
extensions
• 4 years periods in the mid 1970’s: the cod stock
less than 1 million tons, the spawning stock of
cod less than 200 thousand tons
• The problem had become “Icelandic”
• The HOW answers did’t solve the problems
Development of Fisheries
Management
• 1973 - 1974: Quotas in inshore shrimp and
scallop fisheries
• 1975: Individual quotas in Icelandic herring
• 1980: Individual quotas in capelin
Development of Fisheries
Management - Groundfish
• 1976 - 1983: First TACs and restrictions of fishing
efforts. Cod fishery gradually limited from 323 to
215 days a year.
• 1983: Spawning stock of cod estimated at an all
time low (just over 200000 tonnes)
• 1983: Total catch of cod exceeded advice by
100000 tonnes
Quota System Developed
• 1984: First individual vessel quotas
– Cod, haddock, saithe, redfish, Greenland halibut, plaice,
ocean catfish
– Allocations based on catches in reference period 1981-1983
• 1985 - 1990: Period of Effort Option
– Vessels could choose effort restrictions
• Catches still in excess of TAC and advice
1990: Fisheries Management Act
• Only the quota option except for the small boats
• Fishing vessels are allocated a fixed quota share of the
species subject to TAC
• No sunset clause in the legislation indicating a degree of
permanence of fishing rights
• The law says that the fish stocks are the common property
of the Icelandic nation
• Transferability of quota shares
ANNUAL CATCH QUOTA
• The quota share is multiplied by the TAC to give the
quantity which each vessel is authorized to catch of the
respective species during a single fishing year (September
- August).
• This is referred to as the vessel’s annual catch quota and is
transferable
• 1% quota share = 1% of the annual catch quota
SMALL BOATS SEPARATE
• A separate quota regime for most of the smallest
boats (6 tons or less, now 15 tons)
• Only long-line or hand-line fishing
• Full transferability between the small boats
• Not possible to transfer from the small boats to
the larger vessels
• Development from an effort based system to
quota
SHOCK ABSORBERS AND REGIONAL POLICY
INSTRUMENTS
• Up to 12000 tons of cod equivalent ground fish as a shock
absorbers and regional policy instruments (normally less
than 3% of the total catch)
• Response to drastic reductions in stocks in isolated cases
• Reactions to regional shocks
• Long line preferential allocation
• Now phasing out: Small additional allocations to small
boats and a special 3000 tons allocation
FLEXIBILITY
• Flexibility in annual catches.
• For ground fish species other than cod it is possible to
exceed the annual quota and have quotas in other species
reduced correspondingly.
• Limits for each species: 2% of total quota holdings
• Limit for total interspecies transfers: 5% of total quota
holdings
• For most species it is possible to move up to 20% of the
annual quota to the next fishing year or move 5% from the
next year to the current year.
ANTI DISCARD FEATURES
• Discard prohibition clause.
• It is possible to land up to 5% of allocated quota (0.5% for
pelagic species) without charging it against the quota
allocation.
• This catch is sold at an auction
• 20% of the proceedings go to the company
• 80% are used to fund marine research
• It is also possible to land undersize fish (10% of each
landing) and charge half of it against the quota
LIMITS ON CONCENTRATION
AND TRANSFERS
• Single or related companies can’t hold more than 12% of
the total annual quota (on cod equivalent basis).
• The maximum share for each species with limitations is
20%. Exceptions are 12% for cod and 35% for redfish
• A vessel can’t catch less than 50% of its annual catch quota
for more than 2 consecutive years
• It is only possible to transfer 50% of the annual catch quota
from a vessel
RESOURCE TAX
• 9.5% tax rate on calculated industry wide gross profits
phased in from 2004 to 2009. (Initially 6%)
• The tax base is calculated as the value of the landings
minus estimated cost. The main cost factors are labor, fuel
and other operating cost.
TAC DECISIONS
• Decisions on total allowable catch (TAC) are
taken by the Minister of Fisheries
• The decision is based on the advice of the Marine
Research Institute.
• Special catch rules are applied for cod, herring
and capelin
Are There Any Concerns?
• Estimations of the stocks are subject to
uncertainty
• Ecosystem based approach underdeveloped
• Pressures from stakeholders and different
interests
• General limitations of rules
• The HOW question forgotten
CONTENTIOUS ISSUES
•
•
•
•
•
•
Methods and management advice of the MRI
Political preferrence of small boats
Concentrations and resistance to change
Pricing of fish in vertically integrated companies
Pricing of fish when quota is rented
The resource tax
EFFECTIVE MANAGEMENT
• Decisions on the total allowable catch are
followed relatively closly
• No “holes” in the system any more. All vessels
are subject to quotas
The Cod Stock
Cod:Advice-Quota-Catch and Catch
per Unit Effort
Greenland Halibut:Advice-Quota-Catch
Herring:Advice-Quota-Catch
Redfish:Advice-quota-Catch
Haddock:Advice-Quota-Catch
Saithe:Advice-Quota-Catch
Capelin:Advice-Quota-Catch
Offshore Shrimp:Advice-Quota-Catch
INCREASED EFFICIENCY
• Focus on reducing waste and earning profits
• Fewer people are needed to work in the industry
• The standard of living of those who are engaged
with the industry has improved
PROFITABILITY HAS IMPORVED
%
Harvesting as a % of revenues
25
Processing, % of revenue
20
Linear (Harvesting as a % of
revenues)
Linear (Processing, % of revenue)
15
10
5
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
1987
1986
1985
1984
1983
1982
1981
1980
0
1988
Transferable
qotas in
1990
ITQ system
in 1984
Employment in Fisheries
15.000
Fiskvinnsla (e. fish
processing)
Fiskveiðar (e.
fishing)
10.000
5.000
0
1992
1994
1996
1998
2000
2002
2004
NEW WAYS OF THINKING
• Economic operators have an incentive to
emphasize long term interests and they have
most at stake in the sustainability of their fishery
• Operations can be organised with the market as a
point of departure with ever smaller number of
people creating ever greater values
THRIVING INDUSTRY
SUCCESSFUL EXPERIENCE
• Always try to adapt to the markets
• Seek the higher end markets
• Constant development of new methods and
products
• High productivity is the basis of survival
• The quota regime ha become more and more
entrenched
• Tensions have subsided
• Successful ITQs