MSA – Catch Shares - Economics

Eric ThunbergNortheast Fisheries Science Center, Social Sciences Branch,

NOAA Fisheries Office of Science and Technology, Economic and Social Analysis Divisions

Eric.Thunberg@NOAA.GOV

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Overview

• NOAA Catch Share Policy (Draft)• MSA Provisions• Most Important Issues• Opportunity Cost

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NOAA Catch Share Policy

• Catch Shares are a tool

• Encourage consideration in fisheries where appropriate

• NOAA will support design, implementation and monitoring of catch shares

• Design Features• Specific management goals• Transferability• Periodic review• Distinctions among sectors (user groups)• Fishing community sustainability• Royalties

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MSA Requirements/Features

• Not a right or interest in any fish prior to harvest• Shall assist in rebuilding• If over-capacity, contribute to reducing capacity• Promote – safety, social and economic benefits• Include appeals process for initial allocations• Establish procedure to detect collusion• Allows allocations to communities• Allows allocations to regional fishery associations

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Allocation: “Shalls”

• Ensure fair and equitable initial allocations• Consider

• Current/historical harvest• Employment in harvest and processing sectors• Investments in and dependence on the fishery• Current and historical participation by fishing

communities

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Allocation “Shalls”

• Include measures to assist where necessary and appropriate• Entry-level and small vessel owner-operators

• Captains and crew

• Fishing communities• Set asides, Economic assistance in purchasing

• Excessive share limits

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Allocation “Considers”

• Basic cultural and social framework• Small owner-operator

• Fishing communities

• Regional or port-specific landing requirements

• Excessive geographic concentration or other consolidation in harvesting or processing sectors

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Other Provisions

• Shall establish transferability consist with Council objectives

• Consider auctions in initial allocations or other program to collect royalties

• Shall develop program for cost recovery• Permit issued for a period not more than 10 years

• will be renewed unless revoked• LAPP Assisted Purchase Program

• Reserve 25% of fees collected under royalty/auction for

• Entry level or small vessel fishermen

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Most Important Issues

• Articulate goals/objectives

• Objectives need to be measureable/data informed

• Be up front about the tradeoffs among objectives

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Amendment 16 Goals/Objectives

• Fleet capacity commensurate with resource to achieve goals of economic efficiency that encourages diversity within the fishery

• Minimize adverse impacts on fishing communities and shoreside infrastructure

• Maintain diverse groundfish fishery including gear types, vessel size, geographic location, participation

• Develop biological, social, and economic performance measures to assure accountability in achieving management objectives

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The Shrinking Opportunity Set

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Summary Points

• Catch Shares a tool not a requirement• Councils afforded considerable discretion in design• MSA requires consideration of wide range of

economic and social concerns but few “actionable” requirements

• Objectives, Objectives, Objectives• Clear

• Measurable/Data informed

• Articulate tradeoffs

• Be wary of shrinking opportunities