The IVQ regime in Norway: A stable alternative to an ITQ regime?

Since the introduction of quotas and licences as important management tools, Norway has insisted on an individual vessel quota regime (IVQ). The main argument has been to avoid market-based transactions of quotas and vessels and secure stability in regard to a diverse fleet structure and decentralized ownership of scarce cod resources. Thus, an individual transferable quota system (ITQ) with a high degree of transactions and the potential for a heavy concentration of quota ownership and fewer vessels has never been an alternative. However, since the late 80s, the trawler fleet has been trapped within a web of unprofitable overcapacity. Within the frame of a closed management regime and a path-dependent IVQ system, the quota regime has been forced towards a market-orientated system for transactions. In this article, we analyze the Norwegian IVQ system and discuss whether the aggregate effects of the IVQ regime are congruent with the models’ profound ideals.     

Changes in fishing behaviour of two fleets under fully documented catch quota management: Same rules,different outcomes

A Dutch pilot study of fully documented fisheries provided the opportunity to observe actual changes in fishing behaviour under catch quota management (CQM). Interviews with fishers in the pilot study aided in interpreting the results and giving insight in the decision making process and reasoning of fishers. The CQM pilot study entailed a fleet of small and large demersal vessels. For these vessels, all cod catches were counted against quota, including catches of individuals below minimum landings size. To obtain reliable catch data all vessels were equipped with electronic monitoring (EM) systems. These systems recorded videos of all fishing and processing activities on board. In return, fishers received a 30% quota bonus for cod and were compensated with more flexibility on effort regulations. It was hypothesized that vessels in the CQM will (i) increase their landings by 30% according to their quota bonus, (ii) increase the use of gear with large mesh size, and (iii) change effort towards fishing locations with high catch rates of large cod and avoid areas with high catch rates of undersized cod. The results showed that CQM had no effect on fishing behaviour of the small vessels. In contrast, large vessels significantly increased their cod landings (216%) and avoided undersized cod. This difference in response of different fleets suggested that implementation of CQM, for instance in the context of the European Common Fisheries Policy, should consider fleet characteristics. It seemed that larger vessels in this study more easily adapted their behaviour to new management regimes and that the quota bonus opened up new fishing strategies, that were not envisaged during the implementation.     

The rise and fall of factory trawlers: An eclectic approach

Factory trawlers are the most controversial vessel group in Norwegian fisheries. At the time the fleet emerged, stern trawling in combination with on-board processing of cod fillets was regarded as a major innovation. However, the deep-sea fleet was intended to be a stable supplier of fish to the land-based industry. Factory trawlers were not a part of the political project. On the contrary, the vessels represented a serious departure from the traditional employment system for the fisheries’ dependent districts. Factory trawlers have, since the seventies, been regarded as the main enemy to the coastal vessels and the land-based industry. The vessels have been subject to a profound debate about several built-in contradictory goals for the fisheries policy, such as the ideal of employment for all and the need for a profitable sector without state subsidies. Despite a series of policy-driven initiatives to remove the factory trawlers, the fleet has been one of the most profitable vessel groups in the Norwegian fisheries. Nonetheless, the fleet is now marginalised in the number of vessels and transformed into an obedient supplier of round fish to the land-based industry. In this article, we outline the history of the Norwegian factory trawlers and how the fleet was subject to a series of critical changes reflecting the complexity of the vessels.     

Back to square one? Fisheries allocation under pressure

In Norway there is a long tradition of allocating fish resources among the fishers. In modern times this has been done through specific allocation keys. This article describes the development of the allocation system for the offshore (trawler) and coastal fleets. The allocation system is closely related to stock assessment and the fixing of global quotas (TACs) as well as structural policies to prevent “capacity creep”. All three systems can be seen as institutions, where the TAC-machine is firmly established while the two others are under pressure, largely due to competition on the global fish market. The established goal of maintaining a diversified fishing fleet is now gradually being dismantled, with repercussions for coastal employment and settlement patterns. The coastal fleet is per 2013 something entirely different from the situation in 1990, when the coastal fisheries were effectively closed. Sooner or later this development is bound to change also the management institutions, and in particular the allocation system and the closely related structural policies.     

Impacts of current EU regulation on the UK whitefish value chain

Cod and haddock are two of the “big 5” UK supermarket fish species and intrinsic to fish and chip shops nationwide. UK whitefish fleets produce a significant amount, however there is a reliance on imports to maintain supply. The UK is in a strong position to compete for raw material from Iceland and Norway given high prices paid for imports and investment by Icelandic and Norwegian companies in the UK. Regarding UK production of whitefish, the European Common Fisheries Policy landing obligation has introduced significant uncertainty. To avoid discarding of any quota stock, fishing may be stopped before all target stocks quota is reached. For demersal fleets, there is a transition period between 2016 and 18 where target stocks are introduced according to Advisory Council and EU agreement and Article 15, with all quota stocks from 2019. As the capacity of the fleets balance to the new regulations, supply will likely return and if maximum sustainable yield (MSY) is reached in 2020 then an increase in TACs from current levels is likely too. However, markets and industries can change in a short period. Particularly, most processing companies are small to medium size enterprises and those that concentrate on cod and haddock may have to adjust their business. Fleets could be resilient to such short term reductions in landings however this cannot be assumed. The competitiveness of producers will surely be affected in the short to medium term as a result.     

Technical reliability of the Greek coastal passenger fleet

Ship reliability is a vital component of quality in passenger shipping, since serious shipboard equipment failures hinder ship seaworthiness and inevitably lead to delays with apparent detrimental effects upon the “value-of-time” and “just-in-time” properties of this transportation system. Throughout the history of modern Greece, the Greek coastal passenger system constituted the most vital mode of transport for the national economy and integrity. Furthermore, at a time such as the forthcoming 2004 Summer Olympics, Greek coastal passenger shipping will be called upon to play a major role in the success of the Games and in the promotion of the international image of the host country.The present work focuses on the reliability of the Greek coastal passenger fleet, through reference to a period of transition (1996–2002) and lines (Piraeus, Rafina, Lavrio) of acknowledged significance. In this respect, it attempts to capture the influence of various factors upon the reliability of the fleet, through the presentation and analysis of data and results relevant to reported shipboard equipment failures, fleet characteristics and transport work performed.The results generally reveal a steady trend of fleet reliability improvement, amidst a continually increasing transport demand. However, the influence of the observed fleet renewal and certain network characteristics allow for further improvement through the implementation of appropriate policy measures.     

Into the scrap iron business: Transaction costs for fleet sustainability in Norway

For decades the need to reduce surplus fishing capacity has been a fisheries political priority. While decommissioning schemes (buyback programs) usually is a publicly financed measure to reduce capacity, the Norwegian decommissioning scheme is privately financed. Whereas market-based transactions are assumed to lead to cost free adaptations, the Norwegian version reflects public policy aims which impose severe transaction costs on private actors. This article examines the use of market mechanisms for fleet capacity reduction, how private actors adapted to the new order, and the transfer of quota transaction costs from the public to the private sphere.     

Cheating about the cod

The Northeast Arctic cod is managed by a total quota shared evenly between Norway and Russia. It appears that Russia has been overfishing its quota by substantial amounts for a number of years, due to insufficient monitoring of fishing vessels. This paper considers what would be the best reply by Norway to given levels of Russian overfishing. It is found that in most cases the best Norwegian reply would be also to overfish its quota. An aggregate biomass model with stochastic growth and recruitment is used to analyze this question, with parameters estimated from 1946 to 2005 data. Recruitment is serially correlated but apparently independent of the spawning stock. A model using the estimated serial correlation in recruitment and a random disturbance is capable of reproducing recruitment patterns similar to the irregular pattern observed since 1946.     

System evaluation of sustainability in the Norwegian cod-fisheries

Overcapacity in the fishing fleets is considered as the most serious threat to sustainable fisheries. More effective fishing vessels and catching gear contribute to increased catch capacity. Increased catch capacity causes environmental problems such as overexploitation and calls for larger quotas. The problem of overcapacity indicates the need for a stronger integration of technological aspects into fisheries management. This article assesses the differences in sustainability between the Norwegian ocean and coastal fishing fleets in the cod fisheries, by using systems engineering methods. Attributes of sustainability in the Norwegian cod fishing fleets are investigated, as well as acceptance criteria and performance indicators. The results show that there are huge differences in the performance between the vessel groups, and that the results of an evaluation of sustainability in the fishing fleets are dependent on which attributes are explored. Thus, the discussion may contribute to a better decision basis and improved sustainability in fisheries management.     

Development of management measures for the groundfish fishery in Atlantic Canada : A case study of the Nova Scotia inshore fleet

Subsequent to extension of fishery jurisdiction in 1977 it was Canadian policy to favour the inshore sector in rehabilitation of the Canadian groundfish fishery. Catch allocation, limited entry licensing and vessel replacement policies were implemented, which at first allowed and then increasingly attempted to limit inshore fleet expansion, which was being encouraged through financial assistance programmes. New regulatory authorities wer obtained to deal with the increasingly difficult task of limiting annual harvests to catch quota levels. A 1986 study concluded that the licensed capacity of the Nova Scotia inshore fleet was approximately four times that required to exploit the resource at target levels. As a result of a government task force report released in January 1990, substantial changes were made in the control of fishing by inshore fleets, including establishment of an individual boat catch quota system for some sectors. This article documents the regulatory actions taken to date to control inshore fleet development and annual fishing activities, and the responses of fishermen to these, as a possible guide to the implementation of new approaches.     

A bio-economic analysis of harvest control rules for the Northeast Arctic cod fishery

Harvest control rules (HCRs) have been implemented for many fisheries worldwide. However, in most instances, those HCRs are not based on the explicit feedbacks between stock properties and economic considerations. This paper develops a bio-economic model that evaluates the HCR adopted in 2004 by the Joint Norwegian–Russian Fishery Commission to manage the world's largest cod stock, Northeast Arctic cod (NEA). The model considered here is biologically and economically detailed, and is the first to compare the performance of the stock's current HCR with that of alternative HCRs derived with optimality criteria. In particular, HCRs are optimized for economic objectives including fleet profits, economic welfare, and total yield and the emerging properties are analyzed. The performance of these optimal HCRs was compared with the currently used HCR. This paper show that the current HCR does in fact comes very close to maximizing profits. Furthermore, the results reveal that the HCR that maximizes profits is the most precautionary one among the considered HCRs. Finally, the HCR that maximizes yield leads to un-precautionary low levels of biomass. In these ways, the implementation of the HCR for NEA cod can be viewed as a success story that may provide valuable lessons for other fisheries.     

Challenging spatial and seasonal distribution of fish landings—Experiences from vertically integrated trawlers and delivery obligations in Norway

The highly seasonal Norwegian cod fisheries give rise to problems downstream in the value chain and the authorities have introduced several schemes to counter the strong incentives for seasonal harvesting. This paper studies how the trawler delivery obligation (TDO) regime influences aspects of the harvesting pattern, focusing on the temporal and geographic distribution of landings. The analysis shows that the trawlers as a group have far less seasonal variations in their cod landings compared to the coastal fleet. While the Norwegian fleet lands about 75% during the first half-year, the corresponding share for trawlers is about 50%. Contrary to the initial hypothesis, the independent trawlers fished the most off-season; about 57% of their total landings. Trawlers controlled by vertically integrated firms landed considerably less (about 45%) and independently owned trawlers with landing obligations fell between these two strategic groups (about 50%). Vertically integrated vessels have a higher fulfilment of their landing obligations than the independently owned. The differences between the strategic groups are relatively high, at 68% vs. 38%. These results indicate that delivery obligations alone are not sufficient to provide control over the geographic distribution.     

The importance of common sense: How Norwegian coastal fishermen deal with occupational risk

Due to a high number of fatalities and personal injuries, commercial fishing is considered a risky occupation. In the Norwegian context, work-related fatalities have been especially prominent in the coastal fleet. Despite high statistical risk, many fishermen claim they do not worry about their work being dangerous. Applying a qualitative approach, this article argues that shared beliefs and practices such as common sense, taking precautions, evaluating risk as well as relying on each other through cooperation on board and amongst vessels, can be understood as integrated or institutionalized ways of dealing with potential risk. These elements interact with the individual's personal experiences, and influence the fishermen's perceptions of the dangers at hand. The points presented here, may be a part of the reason why fishermen do not necessarily see the need for formal regulations aimed at improving their safety.     

Fishermen responses on marine protected areas in the Baltic cod fishery

Much of the research that concerns the impacts of management measures in the eastern Baltic cod fishery has focused on fish stock rather than understanding fishermen's attitudes towards regulations. Hence, there is little information available on fishermen's responses although they are the ones whom the regulations affect most profoundly. This study analyses the views of fishermen towards management measures with an emphasis on fishing closures (marine protected areas, MPAs). Swedish log-book data from 1996 to 2005 were used to describe MPA induced fishing effort displacements. Fishermen argued that MPAs have been inefficient in conservation of cod stock. The enlargement of Bornholm MPA in 2005 caused substantial effort displacement towards areas dominated by smaller sized fish. This contributed to the increased discarding of juvenile cod. Enlarged MPAs also intensified competition between different fleet segments and reallocated fishing areas. To reduce fishing mortality, fishermen suggested days-at-sea (effort) regulation and an effective landings control system for all fleets that exploit cod stocks in the Baltic Sea Main Basin. These measures would better motivate fishermen for mutual rule compliance, which is a prerequisite for a sustainable cod fishery.     

Sharing a fish resource: Bargaining theoretical analysis of an applied allocation rule

Besides fish-stock considerations, fisheries managers must often take into account competing heterogeneous harvest groups. A long-run allocation rule in a fishery decides more than just shares to the interested parties, it must also take into account the dynamic questions regarding how to divide a changing stock, between changing harvesting groups. Using the axiomatic approach in bargaining theory, we analyse two resource allocation rules that were consecutively implemented in the Norwegian cod fishery in order to distribute the allowable catch between coastal vessels and trawlers. The two allocation rules are compared with one another and with existing theoretic bargaining solutions. The actual allocation rules show little likeness to the well-known Nash bargaining solution, while there are some similarities to the less familiar Salukvadze solution, since shares vary for changing total allowable catch. The Generalised Nash bargaining solutions using man-years as relative weights, is closest to the actual allocations. The trawlers are shown to gain from the change in actual allocation rule at the expense of the coastal vessels.     

‘All in’: Snow crab,capitalization, and the future of small-scale fisheries in Newfoundland

The collapse of cod stocks off the coast of Newfoundland and Labrador in the early 1990s has been widely identified as one of the greatest human-ecological catastrophes of the 20th century. In the aftermath of the crisis, heated debates took place about how the fishery should be structured in the future in order to facilitate the recovery of stocks and sustain coastal livelihoods. In the end, the trade union representing fishers and fish processing plant workers in the province proved successful in resisting pressures from fish processing companies to introduce full-scale privatization. It was also able to expand access to the lucrative snow crab fishery, thereby improving incomes for most remaining independent fishers in the province. Nevertheless, this paper argues that policy changes made shortly after cod moratorium, in combination with changing environmental, demographic, and market conditions, have created a situation which now threatens to undermine the capacity for small-scale fishing enterprises to remain independently owned and operated into the future.     

Fishing capacity management in Taiwan: Experiences and prospects

Taiwan has developed its fisheries since the 1950s and become one of the major fishing nations in the high seas. Facing overcapacity and strong criticism by related Regional Fisheries Management Organizations, Taiwan did not only formulate lots of regulations to limit fishing capacity, but also spent around US$350 million from 1991 to 2008 to scrap 30% capacity of large scale longline fishing vessels and 18% of coastal fishing vessels. This study provides the insight that efficient use of budget and communication with fisherman, and coping with comprehensive stock assessment, would be the key issues in establishing a successful fishing capacity management.     

Norway's experience with ITQs

This paper discusses the development of ITQs in Norway. Even if some would deny that anything such exists, fisheries management in Norway has some unmistakable characteristics of an ITQ system. Both boatowners and policy makers have discovered the attractions of transferable quotas, the former as a means to increase their private profits, the latter as a vehicle to reduce fleet overcapacity. The slow evolution of transferability is mainly the result of ideological opposition and opposition to structural changes, the latter involving falling number of fishermen, changes in location of the fishing industry, and changed composition of the fishing fleet. The development of this system in the purse seine fleet and the fleet fishing for cod and similar species is traced. Then the concept of resource rent is discussed, as well as how it has become capitalized in quota values, which show up as a rise in value of long term assets of the fishing industry.