Fishing quota - additional allocation from 2024: consultation - business and regulatory impact assessment

9. Competition Assessment

• Will the measure directly or indirectly limit the number or range of suppliers?

Option 1 – A Combination of A) Historic Track Record (HTR) (Of Landings) and B) Special Allocation for the Non-Sector Groups places a barrier to new entrants to the Scottish fishing sector, as there is no way to accumulate a historic track record and thus qualify for quota allocation, except via Special Allocations. However, there are already barriers to entry such as obtaining finance for vessels and crew that are arguably greater than those imposed by the proposed allocation methodology of AQ. Special Allocations are a way to address this over time.

Option 2 – A) Revised HTR, B) Equal share of in-year swaps, C) Special Allocations and D) Application by vessels to access West of Scotland cod quota on environmental criteria weakens some of the barriers present in option 1, by broadening access to AQ. Special allocations should encourage additional fishing activity among the 10 metre and under non-sector group, therefore it should not limit the number or range of suppliers.

• Will the measure limit the ability of suppliers to compete?

In its first iteration, vessels that are members of sectoral groups will be to apply for access to West of Scotland cod, as sectoral groups can allocate AQ to individual member vessels conditional on the relevant criteria being met.

The Scottish Government manages quota pools for the non-sector and does not currently have a mechanism by which West of Scotland cod AQ could be reserved for individual non-sector vessel applications (though 10 tonnes will be reserved for the O10m and 10mu Pools managed by Marine Directorate), meaning this group of vessels will be ineligible to make applications in the first instance. We will consider ways in which to broaden access to AQ set aside primarily for environmental criteria.

• Will the measure limit suppliers’ incentives to compete vigorously?

No option limits incentives to compete vigorously. As the option 2 HTR requires vessels to continue to be active to receive future AQ, this would encourage competition in the market relative to option 1 HTR, which would not be predicated on continued activity.

• Will the measure limit the choices and information available to consumers?

No option limits choice and information available to consumers.