ECONOMIC IMPACT ASSESSMENT OF EUROPEAN COMMISSION PROPOSALS FOR SPECIFIC CONDITIONS TO FISHING FOR DEEP SEA FISH STOCKS
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1 TENDER DOCUMENT ECONOMIC IMPACT ASSESSMENT OF EUROPEAN COMMISSION PROPOSALS FOR SPECIFIC CONDITIONS TO FISHING FOR DEEP SEA FISH STOCKS 1. Introduction Seafish invites tenders to conduct an Economic Impact Assessment (EIA) and alternative options appraisal of the European Commission s proposals for establishing specific conditions relating to fishing for deep-sea stocks in the North East Atlantic. 1.1 Seafish Seafish is an Executive Non Departmental Public Body (NDPB), sponsored by the four UK government fisheries departments and funded by a levy on the first sale of seafood landed and imported in the UK. It aims to support and improve the environmental sustainability, efficiency and cost-effectiveness of the industry, as well as promoting sustainably-sourced seafood. For more information please visit Seafish Economics Seafish Economics aims to help improve fisheries management and supply chains to enhance sustainable profitability of UK seafood businesses. Our key objectives are to provide economic evidence, analysis and advice that is expert, relevant, impartial and trusted. Our work encompasses all sectors of the seafood industry, from catching and farming to processing and retail. We carry out economic studies focusing on various aspects of the UK industry, often gathering information direct from industry businesses. 1.3 Advisory Group There will be an advisory group for this project consisting of representatives of the organisations contributing to funding and of the vessels likely to be affected if the proposal is implemented. 2. Background In 2012 the European Commission published proposals (2012/0179 (COD)) for a regulation of the European Parliament and of the Council establishing specific conditions relating to fishing for deep-sea stocks in the North-East
2 Atlantic and provisions for fishing in international waters of the North-East Atlantic and repealing Regulation (EC) No 2347/ Problems the Commission is seeking to address The Commission identified four key problems in relation to the management of deep sea stocks which the proposed updated regulation aims to address: 1. The fish species listed within the proposals are typically highly vulnerable to sustained fishing effort and corresponding stock sizes are considered to be generally slow to recover if overfished; 2. Fishing by use of bottom trawls has the greatest chance of damaging Vulnerable Marine Ecosystems (VMEs); 3. EU vessels operating in distant water trawl fisheries often feature undesirably high catches of deep sea species; and 4. Making decisions on sustainable catch levels without proper stock assessments is difficult. 2.2 Key aspects of Commission proposal The main aspects of the Commission proposal that are likely to have a significant economic impact, if it is implemented, are: 1. Permit limitation: The introduction of target species and by-catch species permits or authorisations which would restrict the number of vessels allowed to catch deep sea species. However, it is not clear whether the proposal really means catch or whether it might mean land. See article 4 of 2012/0179 (COD). 2. Ban on towed gears: The proposal includes a prohibition on bottom trawling and fishing by bottom set gillnets on deep sea stocks two years after the new Regulation enters into force. However, there is no geographical area delineated and it is not clear how this prohibition can be implemented. See article 9 of 2012/0179 (COD). 3. Species defined as Deep Sea species: Several species (including ling, tusk and conger eel), that are found in the catch composition of many UK vessels (both over and under 10m) and are not normally considered as deep sea species, are listed as deep sea species in the Commission proposals. See Annex 1 of 2012/0179 (COD). Defra estimates that, based on recent fishing patterns, over 400 active UK vessels would be affected by the Commission proposals, which is approximately 10% of all active UK vessels. The Commission has carried out a regulatory Impact Assessment (IA) but that assessment lacks any robust economic element. Therefore, a more detailed EIA is required by UK industry and Government so that economic evidence and advice is available to inform the on-going debate surrounding the content of the proposals.
3 3. Objectives The key aims of the EIA and alternative options appraisal are to produce an evidence base and analytical output comprising the following: 1. Baseline economic assessment of structural, operational and economic performance of 1) UK vessels targeting deep sea stocks and 2) UK vessels that do not target deep sea species but would be affected by the current proposals because they catch some species that are included in the current proposals 2. EIA of moving from status quo management arrangements for all UK vessels defined under objective 1 to current Commission proposals on management for deep sea stocks. 3. After discussion with the project advisory group, identify and appraise alternative management scenarios that could meet European Commission VME protection criteria for deep sea fish stocks, and; 4. EIA of moving from status quo to alternative management scenarios for all UK vessels defined under objective 1. The following outline approach is suggested to start discussions on the exact content and structure of the work. It is envisaged that this approach will be refined between the successful tenderers and the steering group. Tenderers are encouraged to suggest alternative approaches as part of their tender submissions. Outline approach: 1) Describe and define the recent status quo in terms of structural, operational and economic performance of all UK vessels that have landed deep sea species as defined in the proposal. 2) EIA of current Commission proposals a. Permit limitation (target and by-catch species) + prohibition of bottom trawling and bottom set gill nets. 3) EIA of variations of current Commission proposals a. Bottom trawl and bottom set gill net gear ban only b. Gear ban + permit limitation (target species only) c. No gear ban + permit limitation (target and by-catch species) d. No gear ban + permit limitation (target species only) 4) Alternative options appraisal (and EIA of two or three of the alternative options chosen) a. e.g. Area closures (spatial) b. e.g. Depth-limit variations (200m, 400m etc.) c. e.g. Amendments to the species list covered by the proposals
4 4. Scope Consultation with key stakeholders will be required, including vessel owners and skippers, relevant fish processing businesses, relevant fisherman s associations, Defra, Marine Scotland, the Marine Management Organisation (MMO) and the European Commission. The successful tenderers will be expected to follow, as closely as possible, UK treasury guidance for undertaking IAs and option appraisal while also referring to and utilising where relevant, Seafish Best Practice Guidance for undertaking assessments of financial and economic impacts on fisheries. Results should be as disaggregated as possible without breaching data confidentiality and in particular provided at UK and Scotland only level, over and under 10m level and gear type level and ICES area level where appropriate. Seafish Economists and MMO statisticians will assist in data provision. Quantitative economic performance assessment of direct impacts on the fleet and onshore sector is required. Wider secondary economic impacts should be assessed but not necessarily in a quantitative manner. The successful tenders should assess to what extent UK fishing communities depend on vessels currently operating in deep sea fisheries and how would that change under Commission proposals as well as the alternative options specified. The successful tenderers should also consider in a qualitative manner what impact these proposals would have on foreign vessels based in the UK and / or landing into UK fishing ports. As one of the main objectives of the study is to identify and appraise alternative management scenarios that would meet VME protection criteria for deep sea fish stocks, the successful tenderers should have and demonstrate sufficient knowledge and expertise in the biological assessment of VMEs. 5. Deliverables A written report should be submitted to Seafish and an oral presentation of results should be given to the advisory group. The report need only be delivered electronically, in Microsoft Word and PDF format. In addition a one to two page standalone policy briefing / summary document is required for both UK results and Scotland only results. All figures and charts contained within the report should also be provided in Microsoft Excel. 6. Project Management The project will be managed by Seafish. Defra, Marine Scotland and the Scottish Whitefish Producers Association (SWFPA) have provided project funding and will be represented on the project advisory group.
5 7. Timings Project timings are set out below. Milestones Date Tenders invited 23 rd July 2013 Tenders submitted 9 th August 2013 Contract offered 16 th August 2013 Contract signed 18 th August 2013 First advisory group meeting 28 th August 2013 Draft interim report submitted 27 th September 2013 Final advisory group meeting 3 rd October 2013 Final report submitted 24 th October 2013 Reporting is required in September and October The project is expected to take no more than 3 months to complete upon signing the contract. Tender documents should indicate what further stages the work will be broken down into and deliverable dates. If you feel that the above dates are not realistic please indicate reasons why your proposed deliverable dates are more suitable. A draft interim report should be delivered to the advisory group by 27 th September Following submission of the draft the successful tenderer is expected to present the findings of the assessment to the advisory group on 3 rd October The final report should be delivered to the advisory group by 24 th October 2013 and should incorporate or take account of feedback and comments from the advisory group. It should be noted a fee of up to 25,000 including VAT is available for this project. 8. Tender requirements Submitted tenders should include the following: Detailed project plan A note of all staff who will undertake the work and accompanying CVs along with their day rates A list of clients, indicating those that can be contacted for references Costs a note of all costs detailed as appropriate including VAT (noting the applicable rate) Payment requirements All tenders should be submitted by the required deadline to: John Anderson Economist Sea Fish Industry Authority 18 Logie Mill, Logie Green Road, Edinburgh, EH7 4HS John.Anderson@seafish.co.uk
6 9. Tender Evaluation Tenders will be evaluated within 5 working days of the submission deadline by the panel comprising: John Anderson Sasha Maguire Caroline Cowan Roy Smith Economist (Seafish) Economist (Marine Scotland) Policy (Marine Scotland) Policy (Defra) The results of the tendering process will be communicated to the successful tenderers on the 16 th of August Criteria against which tenders will be evaluated include relevant experience and qualifications of the consulting team, especially in quantitative economic modelling for fisheries, value for money and demonstrated understanding of the tender requirements. 10. Terms and Conditions The Seafish terms and conditions are attached in Appendix 1.
7 APPENDIX 1 Seafish s Standard Terms and Conditions for Services The following terms and conditions will form the essence of the contractual relationship between Seafish and the successful supplier (contractor) 1. No increase in costs shall be permitted unless agreed in writing by Seafish. Seafish shall consider any requests by the Contractors to authorise an increase in costs within a reasonable period of receiving such request. In the event of work incurring additional costs being carried out prior to receipt of such written agreement, Seafish shall accept no liability in respect of such additional costs. 2. In the event of the Contractors failing to perform the work to satisfactory standards, Seafish shall provide sufficient details explaining why the work has been unsatisfactorily performed to enable the Contractors to remedy the complaint. If, after reasonable notice the complaint remains unremedied, Seafish may: 2.1 suspend all further payments to the Contractors until the complaint is remedied to the reasonable satisfaction of Seafish; 2.2 make any or all further payments to the Contractors subject to such reasonable conditions as Seafish may specify; and/or 2.3 demand immediate repayment of (in which case the Contractors shall immediately repay) the whole or part of the payments already made to the Contractors which relate to the work which has not been satisfactorily performed. 3. In the event that Seafish is required to cancel any part of the work due to unforeseen circumstances beyond Seafish s control, Seafish shall immediately notify the Contractors of this requirement and the parties shall use reasonable endeavours to agree the amount by which the fee payable by Seafish under this Agreement shall be reduced, on a pro rata basis, to take account of the work not now being required. 4. The Contractors and Seafish hereby agree that no sub-contracting will be allowed by either party without prior approval in writing from the other. Neither party shall be entitled to assign any part of the burdens or benefit of this Agreement without the prior written consent of the other party. 5. The Contractors shall provide all materials and equipment necessary to carry out the work. 6. The Contractors shall indemnify Seafish in respect of any breach or non-observance of the obligations incumbent upon them in respect of the carrying out of the services by the Contractors in terms of this Agreement. 7. Each party s total liability to the other in contract, tort/delict (including negligence or breach of statutory duty), misrepresentation, restitution or otherwise arising in connection with this Agreement shall be limited to the amount of fees paid under Clause X. Neither party shall be liable to the other for any indirect or consequential loss or damage (whether for loss of profit, loss of business, depletion of goodwill or otherwise), costs, expenses or other claims for consequential compensation whatsoever (howsoever caused) which arise out of or in connection with this Agreement. 8. Nothing in this Agreement excludes or limits the liability of either party for death or personal injury caused by that party s negligence or fraudulent misrepresentation. 9. All Intellectual Property which is used in performing the work is and shall remain the exclusive property of the party owning it (or, where applicable, the third party from
8 whom its right to use the Background Intellectual Property has derived). 10. The Contractors will not have any rights to Seafish property and will promptly return all such property in its possession when asked to do so by Seafish or on the expiry or termination of this agreement. 11. The Contractors undertake to Seafish that it will take all necessary steps to ensure that in providing the services all data provided by Seafish will not be processed except in accordance with the agreement. The Contractor will not acquire any rights to the data and will put in place appropriate measures to protect against unlawful access and accidental loss or destruction of all data. 12. The failure of either party to exercise or enforce any right conferred upon it by this Agreement shall not be deemed to be a waiver of any such right or operate so as to bar the exercise or enforcement of such right at any time or times thereafter. 13. No announcement or communications concerning the terms or conditions of this Agreement shall be made by either party without the prior written consent of the other party except to the extent any statement or disclosure may be required by law. 14. Nothing in this Agreement shall constitute, nor imply the constitution of, any partnership or any joint venture or any relationship of principal and agent between the parties. 15. No variation of any of the terms of this Agreement shall be effective unless it is in writing and signed by or on behalf of each of the parties. 16. The Contractors obligation to perform the work shall be suspended for such period as the Contractors are unable to perform the work because of an event of force majeure including, without limitation, civil commotion, riot, invasion, war, threat or preparation for war, storm, flood, earthquake, subsidence, epidemic or other natural physical disaster. 17. This Agreement is made under Scots Law and the Scottish courts will have exclusive authority to settle any dispute arising under or in connection with it.
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