2024 Scottish Additional Quota Consultation Partial Business and Regulatory Impact Assessment

6. Options Considered

6.1 Option 1 – A Combination of A) Historic Track Record (HTR) (Of Landings) and B) Special Allocation for the Non-Sector Groups

This is the ‘Do Nothing’ Option as it is a continuation of the methodology used to distribute AQ in 2021-23. As a result, these Options have been combined in the analysis below.

6.1.1 Proposal

The HTR method allocates fishing quota based on what a vessel landed previously for each fish stock. Under this option, the share of AQ each vessel receives would be based on the vessel’s share of all landings (across active vessels in that year) for that stock during the identified reference period - we propose to use 2015-19.

Distribution of AQ, based on the HTR of vessels over a recent reference period, would increase allocations to vessels which have landed those quota species in the recent past. This would take account of in-year quota adaptations, where vessels have acquired additional fishing opportunities (such as through swaps of quota) and landed that fish product.

The HTR method restricts access to Additional Quota primarily to vessels in Fish Producers Organisations, Quota Management Groups and non-sector vessels over 10 metres in length. The Scottish Government recognises that this restricts the ability of new sector entrants and smaller vessels in the non-sector to access Additional Quota. To help mitigate against this downside, Special Allocations reserve a portion of Additional Quota to the pool of non-sector vessels under 10 metres in length.

6.1.2 Sectors and Groups Affected

• UK Fish Producers Organisations, Scottish recognised Quota Management Groups, fishing vessels not associated with either of the above (the ‘non-sector).

6.1.3 Benefits

This is the ‘Do Nothing’ option so has no additional benefits.

6.1.4 Costs

This is the ‘Do nothing’ option so has no additional costs.

6.2 Option 2 - Allocation of Fishing Opportunities Equally Between All Vessels or a Section of Vessels

6.2.1 Proposal

This distribution methodology considers sharing AQ between the fleet, or a specific segment of the fleet, in an equal manner.

We wish to explore views on two mechanisms under this option both of which were suggested in responses to the previous consultation:

1 – Distribute all AQ equally between all active vessels.

2 – Distribute pelagic AQ equally between active pelagic vessels (specifically, the large pelagic vessels that target these species).

6.2.2 Sectors and Groups Affected

As for Option 1 – A Combination of A) Historic Track Record (HTR) (Of Landings) and B) Special Allocation for the Non-Sector GroupsOption 1 – A Combination of A) Historic Track Record (HTR) (Of Landings) and B) Special Allocation for the Non-Sector G

6.2.3 Benefits

Under distribution mechanism 1: active commercial vessel in the Scottish fleet would be eligible for a share of Scotland’s AQ. This would allow each vessel the potential to develop their fishing opportunities and potentially expand the socio-economic benefit arising.

Under distribution mechanism 2: pelagic AQ only would be allocated to the recognised 21 pelagic vessels that target these species. Some pelagic vessels have been replaced during the track record period for HTR and would otherwise be ineligible for AQ. Due to the small number of vessels, there is a limited market for the leasing/swapping of pelagic quota in any year. This contrasts to the position with some demersal stocks, where there are greater opportunities to swap quota. For example, with quota holders based elsewhere in the UK.

6.2.4 Costs

Under distribution mechanism 1 there are identified issues:

• Not all vessels operate in the fishing areas where there is AQ and so those vessels would not practically be ableto catch any such quota allocated to them.
• Not all fishing vessels have the capability of fishing for stocks for which the UK has AQ. For example, it would not be possible for most creel vessels to switch to fish for stocks caught by trawled methods.
• This approach may encourage quota trading (as vessels allocated fishing quota for species they do not intend to target seek to swap this to others in the fishing fleet). Scottish Government policy is to encourage quotas to be held by those who can fish them and to prevent them becoming a speculative asset.
• For some stocks, an equal share of AQ divided across all Scottish vessels would provide each party with an insignificant allocation to develop their fishing opportunities and potentially expand the socio-economic benefit arising. For example, North Sea ling AQ has ranged between 55-61 tonnes since 2021 and would equate to 20-25kgs per vessel.So, the resultant quota distributed between vessels would be negligible.

Under distribution mechanism 2, The arising benefits would be limited to a small number of vessels targeting pelagic species. A potential criticism of this approach could be that it rewards a subset of the fishing industry with AQ. Particularly in relation to AQ for some pelagic stocks the available share of quota has been much more significant than gains seen for many key demersal stocks.

6.3 Option 3 – Landings into Scottish Ports

6.3.1 Proposal

It is acknowledged by the Scottish Government that landings into Scotland extend the social and economic benefit arising from Scottish quota beyond those involved in the catching of fish, as this sees greater activity in Scotland’s ports, processing sectors and other onshore industries.

It must be recognised when considering this option that in 2023 the economic link licence condition (for all over 10 metre licences) was amended to ensure a greater socio-economic benefit is returned to Scotland for those species with the greatest landed value into Scotland. The option explored here would be in addition to the amended economic link provisions.

Bearing the amended economic link conditions in mind, the proposal asks for consultees to consider whether landings into Scotland should be used as a basis for distributing:

I. all stocks (including those stocks covered by the amended economic link conditions)

II. or only those stocks for which economic link provisions do not apply (stocks other than the 8 key stocks identified in the outcome of consultation).

Essentially, under this option the proposal would be that all or a proportion of AQ is awarded to vessels based on their landings of particular stocks in a qualifying period.

In contrast to the economic link licence condition where total landings of all species covered by it are used to consider compliance with the licence condition.

For example, if a vessel recorded landings of North Sea plaice into Scotland, within an identified reference period, then it would be awarded a portion of Scotland’s AQ for North Sea plaice.

6.3.2 Sectors and Groups Affected

As for Option 1 – A Combination of A) Historic Track Record (HTR) (Of Landings) and B) Special Allocation for the Non-Sector Groups

6.3.3 Benefits

Proceeding with this option aligns with new economic link licence conditions^[1], which were amended to ensure greater socio-economic benefit returned to Scotland for those species with the greatest landed value into Scotland.

It directly supports benefiting many Scottish Government aims and objectives and is in line with National Marine Plan, especially the following objective in the Sea Fisheries section of the plan.

• Support Scottish communities where fishing is a viable career option and value is added throughout the supply chain maximising the contribution fisheries makes to Scotland.

6.3.4 Costs

Vessels land catches into ports for a variety of reasons including proximity, prices achieved, operational efficiencies, limited domestic processing sector and market and buyer preferences. There may be costs to vessels in landing to Scotland instead of another country, however the intention is for the AQ unlocked by landing here to offset these costs.

6.4 Option 4 – Access to Additional Quota for Vessels with Independent Accreditation

6.4.1 Proposal

To be considered for 2025 onwards.

Under this option the allocation of AQ would be made to vessels with an independent accreditation in recognition of standards achieved for conditions aboard the vessel or potentially, the manner in which fishing operations have been conducted.

The proposal is that a vessel must be an active Scottish pelagic vessel which is certified by a scheme such as the “Responsible Fishing Vessel Standard” (RFVS^[2]), or an agreed alternate scheme. Nine active Scottish pelagic vessels would have been eligible in 2023.

This could be utilised as a stand-alone basis for allocating quota or linked to other options set out in this consultation document. So, a vessel would get all or a portion of AQ under these three options based on having such a standard.

In order to provide sufficient time and opportunity for vessels to apply for the scheme and for evaluation to take place it would not be fair to impose this eligibility requirement from 2024.

For 2025, it is proposed that eligibility for AQ for pelagic species be linked to pelagic vessels being accredited under the RFVS, or an agreed alternate.

A similar eligibility mechanism may be applied to AQ for demersal and Nephrops species.

6.4.2 Sectors and Groups Affected

As for Option 1 – A Combination of A) Historic Track Record (HTR) (Of Landings) and B) Special Allocation for the Non-Sector Groups

6.4.3 Benefits

This option links economic benefits of access to AQ to higher onboard standards of welfare for crew, potentially the manner in which fishing operations are carried out and enhancing the attractiveness of fishing as a career.

6.4.4 Costs

Vessels require to pay for certification schemes to apply for AQ and may elect not to do this if the perceived or real cost is greater than the benefits to be gained from additional AQ fishing opportunities.

6.5 Option 5 - Exceptionally Providing AQ as a Result of Lost Fishing Opportunities

6.5.1 Proposal

There are competing uses for Scotland’s seas with different sectors and industries seeking to make use of the marine space. There are a number of policies under development which may change the fishing opportunities available for fishing vessels in the future. It is possible that in these circumstances interventions by the Scottish Government could result in the removal of established fishing opportunities leaving no ready alternative for some vessels. In exceptional circumstances, where this potentially jeopardises the ongoing viability of a fishing business, AQ offers the potential for the Scottish Government to use fishing quotas to help mitigate impacts on such vessels and support them to diversify their fishing operations.

Under such a scenario, the Scottish Government could intervene to provide an alternative fishing opportunity from AQ – as far as possible commensurate with the value of the fishing opportunity lost.

Taking this step would require careful consideration to ensure vessels were capable of using the AQ opportunity, the potential financial impact on the business of the intervention and a requirement for clear evidence that alternative fishing opportunities were not available to the impacted vessel. The allocation of any quota in these circumstances would require to be open and transparent.

6.5.2 Sectors and Groups Affected

As for Option 1 – A Combination of A) Historic Track Record (HTR) (Of Landings) and B) Special Allocation for the Non-Sector Groups

6.5.3 Benefits

This option may provide a route to continued business activity in the circumstances outlined above.

6.5.4 Costs

Moving from an established fishing activity to target a new species in a new area is not a like-for-like replacement and individual vessels would need to make a decision on whether AQ would be economically viable for them. In some cases, it will be, in others it may not be so while AQ could be used to cushion the impact of a change in fishing opportunities it is not a guarantee of continuation of activity at the same level. It would not be Scottish Government policy to make AQ available on a routine basis for this purpose and there would need to be focused messaging to ensure it is not interpreted as a compensation route in all circumstances.

6.6 Option 6 – Application by Sectoral Groups on Specific Environmental Criteria

Under this option it is proposed that a portion of AQ is set aside and Sectoral Groups (Producer Organisations and Quota Management Groups) are invited to apply for this quota on behalf of some or all of the Scottish vessels that they represent.

Sectoral Groups are bodies recognised by a UK Fisheries Administration. They are devolved quota management responsibilities under the UK and national rules of the Fisheries Administration which recognises them. It should be noted that Scottish licensed fishing vessels can be in membership of a Sectoral Group recognised and operating under the rules of a Fisheries Administration in another part of the UK. So, we envisage that Sectoral Groups outside of Scotland would be able to access this quota on behalf of their Scottish administered vessels.

Applicants would need to demonstrate how the utilisation of this quota would deliver one or both of the environmental criteria below:

• the use of selective fishing gear (above and beyond legally mandated requirements).

• the use of fishing techniques that have a reduced impact on the environment (for example that use less energy or cause less damage to habitats).

6.6.1 Sectors and Groups Affected

As for Option 1 – A Combination of A) Historic Track Record (HTR) (Of Landings) and B) Special Allocation for the Non-Sector Groups

6.6.2 Benefits

This option links access to AQ to the use of fishing gear or techniques with increased selectivity or reduced environmental impact. Access to this quota may offset the financial costs of purchasing such equipment or amending fishing techniques.

6.6.3 Costs

There would likely be a cost to vessels to change fishing gear with increased selectivity or conducting fishing operations associated with a reduced environmental impact.

6.7 Option 7 - A Mix of the Above Options

The options listed above present a range of methods by which AQ could be allocated. Another option would be to adopt a mix, for example as has been done in the Option 1 – A Combination of A) Historic Track Record (HTR) (Of Landings) and B) Special Allocation for the Non-Sector Groups (Do Minimum) where historic trends and specific sectoral allocations where used. Other alternative mixes of options could be:

• Option 2 - Allocation of Fishing Opportunities Equally Between All Vessels or a Section of Vessels and Option 5 - Exceptionally Providing AQ as a Result of Lost Fishing Opportunities
• Option 3 – Landings into Scottish Ports and Option 4 – Access to Additional Quota for Vessels with Independent Accreditation
• Any further combination as judged by Scottish Ministers to be appropriate and in compliance with law and in accordance with relevant Scottish Government policy.