The Future of the Market Based Approach Towards UK Quota Management - The Case of the Shetland Isles Public Deposited

http://ir.library.oregonstate.edu/concern/conference_proceedings_or_journals/1544bq304

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  • Community quota schemes (CQS) 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. This study originated from a Scottish Executive research programme tasked with analysing the effectiveness of community quota schemes in the UK. This paper outlines the current approach to quota management in the UK and examines the compatibility of community quota schemes with the current Fixed Quota Allocation approach using Shetland as a case study. Research methods involved desk-based background research and face-to-face interviews with industry stakeholders in Shetland. Shetland CQS set out to preserve and improve fishing opportunities for the island community and allow young fishermen to affordably gain access to the local industry. Significant quota holdings were purchased by Shetland Islands council from other UK areas and Shetland fishermen were given preferential access to this quota. After an investigation by the EC, the Shetland CQS was found to contravene EU State Aid law. Enforced changes to the scheme ensured the competitive advantage of Shetlands catching sector was removed. However, both before and after the EU ruling the scheme failed to encourage new vessel builds or increase employment. In addition, fishermen disliked the lack of transparency and financial costs attached to FQA method of allocation. The current FQA system fails in terms of: Clarity of ownership; confusion over property rights; 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 the task of incorporating a formal ITQ system with a more community-orientated approach.
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  • Anderson, John. 2006. The Future of the Market Based Approach Towards UK Quota Management - The Case of the Shetland Isles. In: Proceedings of the Thirteenth Biennial Conference of the International Institute of Fisheries Economics & Trade, July 11-14, 2006, Portsmouth, UK: Rebuilding Fisheries in an Uncertain Environment. Compiled by Ann L. Shriver. International Institute of Fisheries Economics & Trade, Corvallis, Oregon, USA, 2006. CD ROM. ISBN 0-9763432-3-1
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