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SUMMARY OF RESPONSES
Chapter 2 - Safeguarding our Rights
Question 1: Do you agree with our proposals to identify and manage fishing rights in Scotland by granting 'Stewardship Rights', to provide greater certainty for quota holders while safeguarding the position for future generations?
Proposals:
- Grant "stewardship rights", which will offer quota-holders more certainty in respect of their share of the annual quota allocations.
- Periodically review these arrangements in light of the benefits they bring to Scottish fishing communities and the wider Scottish economy.
- Define "Scottish quota" as quota deriving from the Fixed Quota Allocation ( FQA) units associated with the licence of a Scottish fishing vessel, and in the first instance managed either by a Scottish Fish Producer Organisation ( PO) or directly by the Scottish Government Marine Directorate.
- Establish a register of Scottish quota-holders that give details of Fixed Quota Allocation holdings associated with individual Scottish licences. This will make information on quota holdings more transparent and easier to access.
- Identify Scottish Fixed Quota Allocations and allow us to track their movements.
Fishing rights such as quotas are an asset of national importance in which quota holders, the Scottish Government and the wider public all have a stake. In proposing the establishment of "stewardship rights", the Scottish Government wishes to maintain the ability of fisheries managers to balance social and economic objectives.
Summary of views received:
Concern was expressed by many - including at most of the public meetings - about the security of individual FQA holdings. Stakeholders expressed different views on whether they owned the quota they hold, or whether they simply had security of access. There was general recognition of the need to properly resolve this matter and criticism that government had dragged its feet on this issue for years, allowed the quota system to develop in a piecemeal fashion, resulting in a lack of certainty and clarity regarding the status of fishing rights. Many expressed the view that the most important aspect to consider was providing stability for vessel owners and those investing in the industry.
There was near universal support for the establishment of "stewardship rights" in respect of Fixed Quota Allocation ( FQA) units and the quota deriving from these units as a means of providing stability and certainty for quota holdings.
Such support, in some instances, was, tempered with a concern to ensure that continued flexibility to trade quota remained within a Scottish system and, importantly, that the introduction of "stewardship rights" did not have an unwelcome effect on FQA values. There was also a view expressed by some that the duration of the "stewardship right" should be extended to improve security and that government intervention should be kept to a minimum.
While there was significant support for the idea of a five year rolling review period for "stewardship rights", there was a general view that this period was too short to cover fishing business plans and borrowing profiles. Suggested alternative review periods ranged, typically, between seven and ten years. A number of responses observed that a minimum (instead of maximum) period of notice of potential change to a Scottish system was necessary.
There was also broad support to establish a transparent register of Scottish quota holders including the need to identify beneficial quota holders. Some concern was however expressed regarding the requirement to safeguard access to commercially sensitive information e.g. which might be contained in a publicly available register.
Scottish Government response:
We acknowledge that the current UK quota management arrangements have developed in a piecemeal fashion, and are characterised by opacity and uncertainty. The proposal to establish stewardship rights is intended to address such shortcomings, by defining quota holdings in Scotland as user rights with significant security of access and in doing so balance the needs of the individual business with the needs of the fishing sector as a whole and wider communities. The aim is to reflect the government's interest in quota while giving security to quota holders.These user rights mean that quota holders' FQA units provide access to a share of the annual allocated quota. We consider that this is a prudent approach that will help provide stability, give quota holders more certainty than is currently the case, and importantly balance the rights of fishermen with the wider national interest. From an industry perspective, this compares favourably with systems elsewhere in Europe.
We are aware that there are a few quota holders in Scotland (and elsewhere in the UK) who would prefer to move towards a full Individual Transferable Quota ( ITQ) system (entirely market based), with quota freely traded in the UK (and across Europe). While such arrangements would help maximise the value of quota holdings, they would however carry significant risk for the many fishing dependant communities around the coast of Scotland. It is notable that there is almost universal support for the proposals among public authority respondents i.e. those responsible, along with the Scottish Government, for the wellbeing of local communities, and onshore interests. More generally, the near universal support for the establishment of "stewardship rights", and, thus, the central premise of the Scottish Government's proposals to identify, manage and retain fishing rights in Scotland, is very welcome.
We understand the arguments made by some concerning the possible influence our proposals may have on the value of and market for FQAs and fishing businesses. Following careful consideration we believe that the impact on Scottish FQA holdings will be minimal. Indeed, transfers of FQAs between Scotland and the rest of the UK are negligible. This is mainly because there are few stocks of shared importance across the UK. Between 2006 and 2007 transfers of FQAs from Scotland to RUK or vice verse range between 0.04% and 0.49% of total FQAs held in each area.
In recognising arguments surrounding the associated value of FQA units, and in acknowledgment of the small quantities involved we intend to apply an economic link obligation to Scottish FQAs to ensure some economic benefit is retained for Scotland (further details are set out in Chapter 5). The small number of FQA transfers from Scotland and our proposed trading arrangements mean that there are no convincing reasons why the value of Scottish FQAs should be adversely affected in the long term. Although the flow of FQAs from Scotland in recent years has been limited, it is nonetheless important we take steps to establish a secure system for the long term.
Having considered carefully the responses received and views expressed to these proposals, therefore, our current intentions are:-
- Define "Scottish quota" as proposed, i.e. quota deriving from the FQA units associated with a Scottish fishing boat which is both registered and administered in Scotland and either in membership of a Scottish-recognised PO or managed directly by the Scottish Government Marine Directorate (i.e. boat/licence in the Scottish non-sector or 10 metre and under group). Such a boat is referred to as a "Scottish vessel". POs are a central element of Scotland's sea fishing communities. They obtain recognition under the appropriate EU legislation through objective criteria which are based on value and activity of member vessels to specific geographical areas within Scotland or to the country as a whole. POs have evolved over time, although originally established to perform a marketing function, they have responsibilities for managing the vast majority of quota. It is therefore entirely appropriate that they should be considered in defining a Scottish vessel.
- Generally, all quota currently held on Scottish recognised PO holding licences will be deemed to be Scottish. There may however be instances of exceptional circumstances due to historic trading activities where this is not the case and will give careful consideration to such issues on a case by case basis. We will follow the principle of seeking to protect key stocks of economic importance to Scotland. We have been clear from the outset that this is not an attempt to gain an unjustified share of FQAs. This work will be taken forward in discussion with the other UK Fisheries Administrations.
- The definition of quota flows from the definition of a Scottish vessel, set out in chapter five. The three pronged nature of the definition is designed to ensure that only Scottish fishing boats which are genuinely part of the Scottish fleet will have their associated quota defined as Scottish. We recognise that for some vessel owners choices will need to be made on what system they wish to be part of. Those vessels which do not meet the three criteria will have a choice of whether to join the Scottish management system prior to implementation.
- It is our intention to introduce "stewardship rights". This user right will provide access to a defined share of the annual allocated quota based on FQA units held on vessel licences and Scottish PO holding licences. These rights will not be granted in perpetuity.
- Extend the notice period of the Scottish Government's intention to act from a maximum of five to a minimum of seven years. This is in recognition of concerns expressed by some stakeholders that the proposed five year period was too short to cover fishing business plans and borrowing profiles.
- Provide a minimum period of seven years notice to quota holders to address concerns brought to their attention by the Scottish Government before any action may be taken which would permanently remove quota ( FQAs). Action will only be taken following a full consultation with the parties concerned. It is envisaged that the Scottish Government will enter into dialogue to address any issues. Specific details of these arrangements will be agreed with the Scottish industry and set out in a set of Scottish quota management rules. If the issue is not addressed the ultimate sanction envisaged will be the permanent withdrawal of the use right.
- Create a register of Scottish quota holders in accordance with the definition of "Scottish" quota and designate these units to identify them as "Scottish" quota units.
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