TFCs and the Common Fisheries Policy: A Flexible Tool for Fisheries Management in the EU

Transcription

1 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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4 The DESIGN of Policy Instruments

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6 Foundation for EU The Market Source of economic prosperity If and ONLY if: We have rules covering rights and duties

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8 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

9 More Input More Output Fish Nets

10 More Input More Output? Fish Nets

11 sustainable exploitation and, if necessary, at facilitating the recovery of sto State of stocks by TAC area (2009) (in number of stocks) Baltic Sea Total: 10 North Atlantic, international wat ers Total: The The long in th The by a be e It is n whet 4 Atlantic, North Sea and Black Sea Total: Source: EC Commission 2010 Today, 3 out of 4 stocks overfished: 82% of Mediterranean & 63% of Atlantic stocks. Source: Comm

12 More Input More Output? Fish Nets

13 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

14 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

15 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

16 Different types of TFC : Individual Transferable Quota (ITQ) Cooperatives Area-based rights system (TURF)

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18 TFCs improve compliance Compliance Failure Overfishing TAC overages reduced. Landings/TAC (average across fisheries).

19 TFCs reduce discards Commercial discards reduced. % reduction versus baseline year (year before catch shares).

20 TFCs can address overcapacity TFCs can help match fishing resources to TAC. In a study of US fisheries capacity fell dramatically first 5 years

21 TFCs can increase revenue Employment can stabilise & Revenue can increase

22 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

23 TFCs can help maintain desired fleet structure Different design elements can accommodate: Allocation to individuals or groups greening /types of vessels Concentration caps /Limits on transferability Owner on Board provisions

24 Recommendations 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

25 Thank you Thomas Sterner University of Gothenburg Sweden

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27 Catch shares reduce collapses Costello et al 2008

28 Status Quo vs. TFCs Status Quo TFCs Race for Fish Reduced season lengths Hard to maintain TACs Poor profitability Decreasing stocks Long term stake in fishery Flexibility to match demand Best way to meet TACs Increased CPUE Rebuild stocks

29 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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32 Overfishing a threat to fish stocks globally Worm et al 2006 Science

33 Cod stocks North East Arctic SSB North Sea SSB

34 COD Canada Cod in Atlantic Banks outside Canada among richest in the World Crashed fishermen unemployed No sign of recovery after 15 years!

35 Cod stocks can recover North East Arctic North Sea SSB

36 Elinor Ostrom, Nobel laureate 2009 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

37 Swedish Shrimp trawling in a Marine Reserve 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 Voluntary increase of mesh size from 35 mm to 45 mm -Increased price differential vs other Swedish shrimp (50-90%)

38 Swedish Shrimp trawling in a Marine Reserve 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 : <10 hours/day, 2010: 12 hours/day

39 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

40 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)

41 Capture fisheries, FAO

42 Global Aquaculture, FAO 2010

43 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

44 Cod I North East Arctic SSB North Sea SSB Iceland SSB

45 ICES zones Iceland