tfcs and the common fisheries policy: a flexible tool for fisheries management … · 2012. 5....
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TFCs and the Common Fisheries Policy: A Flexible Tool for Fisheries
Management in the EU
Prof. Thomas Sterner European Parliament 24 April 2012
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The DESIGN of Policy Instruments
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The Market
• Foundation for EU
• Source of economic prosperity
If and ONLY if:
We have rules covering rights and duties
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”The cod fishery, the herring fishery, the pilchard fishery, the mackerel fishery, probably all the great sea fisheries, are inexhaustible .. nothing we do seriously affects the number of fish”
1883, Thomas H. Huxley T. H. H. Opening Fisheries Exhibition (1882) B.B.C. Hulton PIcture Library
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More Input More Output
Fish
Nets
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More Input More Output?
Fish
Nets
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83
1525
2424
10
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2
611
1 Responsible and sustainable fishing
Responsible and sustainable management of fisheries requires decisions based on sound scientific findings and long-term management. Decisions on total allowable catches (TAC) and fishing quotas are based on scientific advice; we are finding out more and more about the stocks that are fished. Fishing can thus be adapted to the state of stocks.
Currently, most fish stocks are exploited at levels well in excess of their maximum sustainable yield, in other words the optimal volume of catches that can be taken each year without threatening the future reproductive capacity of a fish stock.
By aiming for long-term management, the Commission has thus favoured a progressive approach, based on the introduction of multi-annual plans for specific fisheries or fish stocks which benefit stocks and fishermen alike. These plans are aimed at ensuring sustainable exploitation and, if necessary, at facilitating the recovery of stocks close to col lapse.
State of stocks by TAC area (2009)
(in number of stocks)
The stock is exploited at a level delivering maximum long-term yield.
The stock is overexploited compared to the level delivering maximum long-term yield, but remains within safe biological limits or is managed in the context of a long-term plan approved by scientists.The stock is no longer within safe biological limits and is not covered by a long-term plan, or scientific advic e suggests that it should no l onger be exploited.It is not known whether the stock is within safe biological limits and/or whether it can deliver maximum long-term yield.
Source: European Commission, Consultation on Fishing Opportunities for 2010– Communication from the Commission COM(2009) 224 and preparatory work.
Baltic SeaTotal: 10
North Atlantic, international waters
Total: 51
Atlantic, North Sea and Black Sea
Total: 147
Today, 3 out of 4 stocks overfished: 82% of Mediterranean & 63% of Atlantic stocks.
Source: EC Commission 2010
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More Input More Output?
Fish
Nets
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Market/Policy Failure
• Each fisherman fishes at will – covering his own costs but not value of fish stock.
• Fishing down stock increases costs for all.
• TRAGEDY OF … Open Access
• POLICY is needed
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Fundamentals of Policy are Rights
TFCs are a solution: Combine a degree of asset stability with sufficient biological flexibility
Make negotiations on TAC less adversarial
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Transferable Fishing Concession
• Revocable user entitlements to a specific part of fishing opportunities
• ’Fishing opportunity' means a quantified legal entitlement to fish, expressed in terms of catches and/or fishing effort …
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Different types of “TFC”:
• Individual Transferable Quota (ITQ)
• Cooperatives
• Area-based rights system (TURF)
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TFCs improve compliance
Compliance Failure Overfishing
TAC overages reduced. Landings/TAC (average across fisheries).
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TFCs reduce discards
Commercial discards reduced. % reduction versus baseline year (year before catch shares).
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TFCs can address overcapacity
• TFCs can help match fishing resources to TAC.
• In a study of US fisheries capacity fell dramatically first 5 years
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TFCs can increase revenue
Employment can stabilise & Revenue can increase
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TFCs address market failures
• Rebuild stocks
• Better options for fishermen
• BUT: We do need to be Careful.
• Big values created: We must care about fairness
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Different design elements can accommodate:
• Allocation
– to individuals or groups
– greening /types of vessels
• Concentration caps /Limits on transferability
• Owner on Board provisions
TFCs can help maintain desired fleet structure
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1.Over-capitalized fisheries do need to rationalize – TFCs facilitate
2.Include all stakeholders – small and large
3.Regionalization - design variations
4.Science based limits; Reduce subsidies
Recommendations
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Thank you
• Thomas Sterner
• University of Gothenburg
• Sweden
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Catch shares reduce collapses Costello et al 2008
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Status Quo vs. TFCs
Status Quo
• Race for Fish
• Reduced season lengths
• Hard to maintain TACs
• Poor profitability
• Decreasing stocks
TFCs
• Long term stake in fishery
• Flexibility to match demand
• Best way to meet TACs
• Increased CPUE
• Rebuild stocks
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Policy Instrument selection Price-type Rights Regulation Info/Legal
Taxes Property rights
Gear/Boat restriction
Public participation
Subsidy (Reduct.)
Information disclosure
Charge, Fee/Tariff
Tradable Quotas
Closed season or area
Voluntary agreement
Refunded Charge
Law of the Sea
Permits Liability, Labelling
CPR, TURFs Zoning, Reserves
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Overfishing a threat to fish stocks globally
Worm et al 2006 Science
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Cod stocks 1946-1981
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North East Arctic SSB
North Sea SSB
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COD
• Cod in Atlantic Banks outside Canada among richest in the World
• Crashed 1992
• 30 000 fishermen unemployed
• No sign of recovery after 15 years!
Canada
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North Sea SSB
Cod stocks can recover
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Common Pool Resource Management
•Well defined area and users
• Congruence between use and local conditions
• Collective decisions for rule changes
•Monitorers recognized by users
•Gradual sanctions
• Rapid access to cheap, local conflict resolution arenas
• Recognized by authorities
• If several layers, the above must apply to all levels
Elinor
Ostrom,
Nobel
laureate
2009
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Swedish Shrimp trawling in a Marine Reserve 2001-2010
-Reserve: Total 100 days within defined area
-Special equipment including improved selection
-10 vessels in 2001, closed in June 2001 & 2002
Group formed
-6 vessels from 2004, 5 from 2007
-Voluntary increase of mesh size from 35 mm to 45
mm
-Increased price differential vs other Swedish shrimp
(50-90%)
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Swedish Shrimp trawling in a Marine Reserve 2001-2010
- Stock investments by fishermen
- Increased landing values, from €55,000 to €275,000
- 5 vessels land 30-50% of annual income using 20 days each
- Economic incentives important driver. Effortday regulation has implied increased fishing effort. Days are longer during summer
- 2004: <10 hours/day, 2010: 12 hours/day
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Sweden ITQs in pelagic fishery, vessels > 24 m, 2009
•More than €30 Millions in landing value
• 81 vessels at start in June, 2009
•Distribution gratis, based on historical catches (Grand
fathering)
• 42 vessels in March, 2011
•Not a transparent system with transactions reported
•High prices paid according to informal sources, but not
collected or reported by the authority
•Preliminary for 10 years
•No current initiatives of cost recovery
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Pacific Halibut, Canada
•Derby fishing with total season length of 48 hours in1989
• IVQ fishery gradually from 1991
•Substantial increase in prices, from frozen to fresh
•Dramatic reduction of vessels, extended season
• Increased real wages to crew löner för besättning
• Increase in labor, more manyears in 2005 than 1990
•Real landing value up by 75% from 1990 till 2005
($Can 31.5 Million to 55.1 Million)
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Capture fisheries, FAO 2010
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Global Aquaculture, FAO 2010
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CPR or TURF
• Property rights are crucial for management
• When growth is low and catches erratic
• Can work well for local subsistence fisheries
• Maybe good for multi-species fishery
• Clear boundaries; Exclusion; Democracy; Peer monitoring; ’Courts’; Graduated fines
• Eco tourism, park fees. Pay for eco-services
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Cod I
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North East Arctic SSB
North Sea SSB
Iceland SSB
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ICES zones Iceland