Key figures of Norwegian Fisheries

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1 Marine life our common responsibility Key figures of Norwegian Fisheries -based on output and input regulation Nordic Climate Fish Conference Solstrand, January 2011 Per Sandberg The Norwegian Directorate of Fisheries

2 Marine life our common responsibility Greenland Norwegian jurisdiction Fishery Protection Zone around Spitsbergen Other countries jurisdiction International waters Area of temporary arrangement NORWAY: Fishery Zone around Jan Mayen Population: 4,7 million Mainland: sq.km Spitsbergen: sq.km Jan Mayen: 377 sq.km Iceland Russia Mainland coastline: km Faroe Islands Norway Sweden Total coastline (including islands): Mainland EEZ: km sq.km Spitsbergen FPZ: sq.km Atlantic Ocean Ireland Great Britain Jan Mayen FZ: sq.km

3 Development of output regulation 1970s : establishment of Exclusive Economic Zones (EEZ) - Closing of The Commons for the ocean-going fleet 1980s : establishment of Total Allowable Catch (TAC), allocation on nations, and fleets within each nation 1990s: closing of The Commons for the coastal fleet - the introduction of Individual Vessel Quotas (IVQ) for vessel groups in an increasing number of fisheries However; Overcapacity was still evident and a general acceptance on the need to find tools to reduce number of fishing vessels

4 Development of input regulations Buy-back schemes Structural quotas

5 Marine life our common responsibility Structural Quotas: Objectives and target fleets Objectives - A fleet size more in balance with sustainable yields from fish stocks - A diversified fleet, being able to harvest in various parts of the ocean - A fleet that provides activity along the various municipalities along the coast Target fleets - Multiple fleets of ocean-going vessels holding a specific license and IVQ - Coastal vessels holding specific license and an IVQ Non-target fleets - Coastal vessels not holding an IVQ

6 Current Instruments Denomination Ocean-going vessels Coastal vessels; 15-28m Coastal vessels; 11-15m Coastal vessels; 0-11m Number of vessels* Management instruments to regulate the fisheries Input Licences/ Annual permits X X X X Output IVQ** X X X X Management instruments to adjust harvest capacity Buy-back programs (Finished) SQS*** X X X * 17 January 2011 ** Individual Vessel Quotas ***Structural Quota System

7 Structural Quota System Offshore Fleet Structural quota; 20 years duration Only for vessels holding a valid license One vessel must be scrapped Quota 100% +

8 Structural Quota (SQ) for Ocean-Going Fleet 6 different groups (cod trawlers, purse seiners, pelagic trawlers etc) Fixed allocation of national quota between vessel groups Ceiling on SQ per vessel, to monitor degree of capacity reduction Special arrangement to prevent unbalanced reduction of capacity between regions; - E.g: Prohibited or less favourable to transfer quota if scrapped vessel is registered in northern part of Norway and receiving vessel is registered in southern Norway.

9 Structural Quota System Coastal Fleet Structural quota; 20 years duration Licensed vessels and mandatory scrapping Length groups 20% curtailment m m Quota 80% m < 11 m

10 Structural Quota (SQ) for Coastal Fleet special arrangements Vessels being scrapped and vessels receiving SQ must be in the same length group (11-15, or metres length) Vessels fishing cod, haddock and saithe being scrapped and vessel receiving SQ must have been registered in the same county in at least 12 months before the system can be used Ceiling on number of SQ per vessel Excemption for scrapping if vessel can be considered to have historical value or can be used in service of the public good

11 Decommissioning Fund Coastal Fleet, vessels below 11 m. Five year program ( ) 50% state funding, 50% industry funding (all vessels, tax: % of catch value So far 404 vessels (15%) have been scrapped, with a total cost of 207 million NOK Length groups m m Quota m < 11 m

12 Instruments used: Economic incentives to scrap vessel - Buy-out by other vessel owners in Structural Quota System (no public money) - Grants from decommissioning fund ( ). Financed by public money and industry Tools to avoid undesired side effects, like; 1. Geographical concentration of quotas - Market restrictions (counties or group of counties) - Economic incentives (less favourable conditions for scrapping in some areas) 2. Fleet concentration of quotas - Market restrictions (within fleet segments and size groups of vessels) 3. Concentration on factory vessels - Market restrictions 4. Concentration of quotas on owners - Ceiling on quotas per vessel

13 The instruments have been used: Structural Quotas as share of total quota in various fleet segments (30 June 10) Fleet Quota Species SQ as share of Total Quota Ocean-going vessels Purse seiners Long-line, nets Cod trawlers Mackerel Cod Cod 18% 57% 58% Coastal vessels Coastal purse seiners Coastal vessels Herring Cod 41% 23%

14 The Norwegian capacity reduction programme: Some concluding remarks Reduction in number of fishermen and vessel has been inevitable Capital replaces labour For structural program in Norway to work; - Strong economic incentives to utilise the program - User pays - Stability in allocation keys with regard to fleet quota To avoid undesired effects - Delimitation of markets - With regard to fleet groups - With regard to geographical areas Consequences - Increased profitability for remaining fleet - Still a diversified structure, both with regard to fleet and geographical areas

15 Catch, fishermen and catch/fisherman

16 Profitability Average operating margin, vessels above 8 metres Prosent/Percent

17 Norwegian Fishing Industry 2009 Number Employees Vessels Fishermen Main occupation Part time occupation = Processing industry Plants 510¹ ² Fish farming (All species including shellfish) Licences ³ Total number of employees ¹Figures for 2008 from Nofima ²Figures from 2008 Source: Statistics Norway, NOS Manufacturing Statistics ³Preliminary figures for

18 Some major categories of management issues Fishery management actions of relevance for sustainable fisheries - Harvest control rule for fish stocks - Cooperative management, sound incentives Fishery management actions of relevance for other components of the ecosystem - Harvest control rule for fisheries - Areal management of fisheries - Emission of greenhouse gases Management of other human activities in the ecosystem - Exploitation of non-renewable resources - Management of shipping or transport

19 Fishery management actions of relevance for sustainable fisheries Harvest Control Rules for target stocks - Identify the objectives - Identify exploitation rate and pattern - Adjust fishing capacity to resources Need for knowledge - Factors determining growth (W, M, R) - Environmental conditions - The Fishery - Species interaction - Fish-Fish - Sea mammals Fish - Socio-economic conditions - Cooperative management - IVQ, ITQ, Restructuring schemes

20 From single species to ecosystem based management Precautionary reference points Species interactions Bycatch Exploitation pattern Prognosis for growth, natural mortality and recruitment Management strategy and associated Harvest control rule Bottom habitats Genetic diversity Stock assessment Determine F and TAC Pollution

21 Consumption of fuel and total fuel costs for whole year operating vessels Forbruk av drivstoff, 1000 liter Total fuel costs, NOK 1000, 2009 value Consumption of fuel, 1000 litre Total fuel costs (1000 NOK)

22 Management of other human activities in the ecosystem (cont.d) Combined activity (fish, petroleum, transport) in the area covered by the Management plan for the Barents Sea. Challenges: - Ensure no negative impact from either petroleum, shipping or other human activities on fish resources or the environment. Need for knowledge - Effect of concentrating poison on living organisms through the food web - Effect of acidification of oceans - Effect of sudden large oil spills - Effect of infrastructure on seabed

23 Summing up A reduction in number of vessels and a substitution of capital for labour have led to improved profitability in the Norwegian fishing fleet A sharp focus on sustainable management has helped to ensure healthy fish stocks Close collaboration with neighbouring parties is essential to manage transboundary fish stocks Still a need to detect IUU fisheries Ecosystem based management is becoming challenging Rules for co-existence of fisheries with other industries need to be developed Markets demanding fish from sustainably managed fish stocks require traceability

24 Thank you for your attention Source: Norwegian Seafood Export Council

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