The Scottish Government

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Executive Summary

Fishing rights are an asset of national importance, the lifeblood of many of our fishing communities. The fishing industry makes an important economic and social contribution to Scotland. Future arrangements governing our fishing rights are therefore critical. Up to now we've had a "one size fits all" joint UK management framework, but believe it is now time to put in place arrangements tailored to our circumstances in Scotland.

Our proposals are designed to provide stability for quota holders and security of access to fishing opportunities. The Scottish Government do not believe in privatising fishing rights because of the inherent risks involved to our many fishing communities. We also consider that the key building blocks of the current system should remain in place to meet our objectives.

The consultation period ran from May 21 until August 21 2008, and generated 61 written responses from a range of stakeholders. Equally important was the views expressed at 25 meetings around Scotland, attended by over 350 fishermen and other stakeholders. Back in December, we set out in broad terms our plans to have a phased implementation of quota and licensing arrangements in Scotland during 2009.

This report summarises the views received, sets out the Scottish Government response to views expressed, and also seeks your further opinion on some of the ideas put to us during the consultation. Following a short period of consultation, which ends on 24 March, measures to be adopted under a Scottish quota management and licensing system will then be set out in a final outcome report.

The first phase of the implementation will be the establishment of a Scottish licensing system, 2006 Licence Review Working Group recommendations implemented in full, and a Scottish Licence Review Group established. Work will commence on PO reform, along with an initiative to attract new entrants into the industry. An announcement on detailed quota management measures will be made following the publication of the final outcome report.

Until a new Scottish quota management and licensing system is in place the current joint management arrangements will continue to apply as an interim measure, as well as the moratorium. 2009 will be a year of transition. We will continue to work closely and cooperatively with all our partners in the UK during this period of transition. A Scottish quota and licensing system will be fully implemented and in operation in January 2010.

Having considered carefully the responses received and views expressed regarding these proposals, our current intentions are to:-

Safeguarding our Rights

• Define "Scottish quota" as quota deriving from the Fixed Quota Allocation ( FQA) units associated with a Scottish fishing boat which is both registered and administered in Scotland and either in membership of a Scottish-recognised Producer Organisation ( PO) or managed directly by the Scottish Government Marine Directorate (i.e. in the non-sector or 10 metre and under groups).
• Deem quota currently held on Scottish recognised PO holding licences to be Scottish (exceptional circumstances will be considered).
• Grant "stewardship rights". These user rights will provide access to a defined share of the annual allocated quota based on FQA units held on vessel licences, entitlements and Scottish PO holding licences.
• Create a register of Scottish quota holders.

Fishermen at the Heart of Quota Management

• Support the continued allocation of quota to Scottish recognised POs on the basis of FQAs associated with individual licences.
• Retain PO holding licences but, limit the number of holding licences to two per PO. One holding licence will be for FQAs acquired by the PO itself for use by their active members or in respect of community quota schemes, with the other holding licence specifically for vessel agents/salesmen. We recognise the important role of these businesses in the Scottish fishing industry, and are considering options (i.e. a quota holding permit) to enable vessel agents / salesmen to hold quota for the benefit of their client vessels.
• • Drop the proposal that, over a three year period, at least 70% of the business income of Scottish quota/licence holders should be derived from catching and marketing fish. As an alternative, we propose to identify the "active industry". Active quota holders will be those who have a Scottish fishing licence/entitlement, Community quota schemes, vessel agents/salesmen, and units held by POs for its active members on Scottish recognised PO holding licences. All other quota holders will be deemed to be non-active interests, and will be required to gradually dispose of their FQA holdings.
  • Introduce a quota incentives scheme from 2011.
  • Remove the current restriction on the transfer of FQA units from an "active" licence only when a Scottish quota and licensing system is implemented in full.
  • Continue to allow Scottish quota holders to transfer quota from Scotland to elsewhere in the UK.
  • Introduce an internet based trading system from January 2010.

Supporting our Communities

• Establish a joint Scottish Government/industry PO Reform Group with a remit to implement our proposed changes for POs in their entirety
• Introduce a package of measures to maintain the viability of the current pool arrangements.
• Create a Scottish 'pool' for both the 10 metre and under and non-sector fleets.
• Establish a working group to consider what, if any, effort controls are required to maintain the viability of the inshore quota pool arrangements (nephrops permits is one possible measure).
• Review on an annual basis the need to allocate North Sea Nephrops quota from the sector to the 10mu and non-sector pool.
• Introduce an exit scheme to encourage some vessels currently fishing in the Scottish 10mu and non-sector to join a Scottish Producer Organisation.

The Licensing System

• New quota management arrangements require a complementary licensing system. We propose to:-
• Define a Scottish vessel as one registered in Scotland, administered in Scotland and either in membership of a Scottish PO or under the direct management of the Scottish Government Marine Directorate ( SGMD) as part of the non-sector or 10 metre and under fleets.
• To help ensure that Scottish communities continue to benefit from our fishing rights, we propose to maintain the link between a vessel licence and quota, and introduce an economic link on vessel activity back to Scotland. We are also seeking views on two FQA centred economic link options.
• Fully implement the recommendations of the previous UK Licence Review Working Group, and establish a Scottish Licence Review Group.

Maintaining our Skills

• A co-ordinated response is needed to attract new entrants into the sector. A working group will be established to try and address these issues. This group will have a wide remit, and will explore a variety of options including what part quota and licensing can play to encourage new blood into the industry and to retain existing crews.

Working with Others

• The need for good working relations between the Scottish Government and the other UK Fisheries Administrations is clearly important. We work closely with other Fisheries Administrations, and will continue to do so as we take this work forward, while recognising that our approaches will differ on some issues.

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