2024 Scottish Quota Management Rules

3. Management of the Sector

3.1 Recognition of Producer Organisations

33. Further to Paragraph 14 of the 2012 Concordat, the Marine Directorate will be responsible for ensuring that Producer Organisations (POs) comply with the recognition criteria for POs^[5].

3.2 Grant of sectoral quota management responsibilities to POs

34. Marine Directorate may grant a PO responsibility for sectoral management, thus allowing the PO to receive a distributed share of quota from Marine Directorate, or one of the other UK FAs. The grant and continuation of sectoral quota management responsibility will be subject to conditions set out in Section 3 of the UK QMRs.

3.3 Management of POs

35. Where Scottish POs elect, in terms of Paragraph 7.b. of the 2012 Concordat, to manage their quotas collectively, then Marine Directorate will be responsible for their management.

3.4 Closure/opening of PO fisheries

36. Wherever possible, Marine Directorate will not close PO fisheries without prior contact with the relevant PO. Where already closed, fisheries will not be re-opened by POs unless so requested. Licence variations to effect fishery closures and openings will normally be posted weekly on the Marine Directorate website at 00.05 hrs on a Friday and have level effect from 00.01 hrs on a Sunday. To take account of these timings, any requests from POs either to open or close a fishery should be agreed with Marine Directorate quota managers by midday on a Thursday if they are to take effect on the following Sunday.

3.5 Variation of individual vessel licences from 2016

37. To assist POs during the implementation of the landing obligation, those with Scottish vessels in their membership may enter into a (non-mandatory) agreement with Scottish Ministers whereby they would have the facility to request Marine Directorate (via Marine Directorate Coastal Operations) to vary the licence of named Scottish-administered vessels to prohibit them from fishing in a specified sea area (e.g. North Sea) when they have exhausted their individual allocation of a quota stock which they are obliged to land under the terms of the landing obligation. Such a prohibition, if agreed by Scottish Ministers (Marine Directorate), would remain in place until such time as the relevant POs submitted a further request to Marine Directorate to reinstate in the licence the vessel’s authority to fish in the relevant sea area.

38. Any request from a PO to continue the effect of a variation under these arrangements beyond 31 December will require a fresh request to be made effective from 1 January of the following quota year. In the absence of such a request before the end of a quota management year (31 December), the effect of a variation will lapse at the end of 31 December.

39. The template Agreement (shared with all POs on 19 October 2015) sets out a range of responsibilities of both parties, a Sectoral Group and Scottish Ministers (Marine Directorate) and explains how the administrative process will work. Extracts from the Agreement are at Annex A.

3.6 Scottish Sectoral Quota Management Groups

40. In accordance with the 2012 Concordat and the UK QMRs, Marine Directorate may recognise legal entities, other than POs and grant sectoral quota management rights and responsibilities to a Quota Management Group (“QMG”).

41. Sectoral quota management rights and responsibilities are granted to QMGs on a temporary basis until 31 December 2026 (subject to review).

42. Unlike POs, QMGs can only administer vessels registered in a Scottish port with a vessel licence issued by Marine Directorate. QMGs can receive UK quota from Marine Directorate only and not from other FAs.

43. A legal entity cannot be recognised as a QMG and a PO concurrently.

3.6.1 Recognition of QMGs and grant of sectoral quota management responsibilities to QMGs

44. A legal entity meeting the recognition criteria and objectives for QMGs set out in Section 3.6.2 below and further described under Scottish sectoral Quota Management Groups (QMGs) - gov.scot (www.gov.scot) can apply to Marine Directorate to be recognised as a QMG using the application form (available upon request on: qmgmailbox@gov.scot). Upon successful conclusion of the application process of a QMG, Scottish Ministers will enter into a Service Level Agreement with the QMG. In addition to the UK QMRs and the Scottish QMRs, the Service Level Agreement further details the rights and responsibilities of QMGs.

45. Marine Directorate will verify annually, following submission of the report by 31 March under Paragraph 46 below, that QMGs continue to meet the recognition criteria and objectives for QMGs under Section 3.6.2.

3.6.2 General recognition criteria and objectives for QMGs

46. A QMG must meet the following general recognition criteria:

a. A QMG must have legal personality with headquarters in Scotland

b. Only vessels registered in a port in Scotland can operate in a QMG

c. The QMG should have at least two active fishing vessels with associated commercial fishing licences operating in the QMG and the QMG needs to have sectoral quota management responsibilities for those vessels.

d. Vessels administered by the QMG must collectively be sufficiently economically active. To be sufficiently economically active a QMG must meet at least one of the following Scottish economic criteria in both Part A AND Part B.

Part A – Activity at a national level:

i. Vessels operating by the QMG dispose of at least 5% of total Nephrops production landed in Scotland by Scottish registered vessels.

ii. Vessels operated by the QMG dispose of at least 5% of total demersal production (quota species only) landed into Scotland by Scottish registered vessels.

iii. Vessels operated by the QMG dispose of at least 5% of total pelagic production (quota species only) landed int Scotland by Scottish registered vessels.

Part B – Activity at an ‘area’ level

i. The number of vessels operated by the QMG is at least 20% of the vessels habitually present in that area.

ii. For the fish species or group of fish species for which recognition is sought, the QMG dispose of at least 15% of the total production in the base districts of the Fishery Offices^[6] where recognition is sought.

iii. For the fish species or group of fish species for which recognition is sought, the QMG dispose of at least 30% of the total production in the base district of the Fishery Office where recognition is sought.

e. QMG should have demonstrable expertise of managing activity of commercial sea fishing vessels.

f. A QMG must have effective systems and processes in place for managing the utilisation of quota by the QMG overall and individual vessels administered by the QMG. This includes having transparent internal quota management rules and a designated individual with responsibility for managing quota distributed to the QMG and for monitoring quota uptake by vessels.

g. Have effective arrangements in place for enforcing catching restrictions imposed by the QMG or Marine Directorate through a penalty system in internal rules.

47. A QMG must further demonstrate, in the application form and in subsequent biannual reports, as per Paragraph 48 below, how the QMG will contribute and has contributed to the delivery of the following three objectives for sea fisheries of the Scottish Government’s National Marine Plan:

h. Optimise annual quota opportunities across Scotland’s fish stocks. QMGs satisfy this objective by meeting the general recognition criteria for QMGs.

i. Optimise the sustainable harvesting of wild fish. This objective can be achieved by making a positive contribution to reduce the environmental impact of sea fishing by optimising harvesting of wild fish, above and beyond applicable legislation, through (a) the use of fishing gear that minimises unwanted catch; and/or (b) conducting fishing operations in a manner that seeks to minimise unwanted catch.

j. 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. This objective can be achieved through (i) the utilisation of Scottish ports and landing facilities and/or (ii) the QMG promoting new entrants into the industry or taking steps to support career progression of existing crew members and/or (iii) supporting jobs in Scottish communities in addition to those directly related to those catching sea fish.

48. QMGs are required to comply with the following reporting requirements: For each year that quota is distributed to the QMG, the QMG should submit:

k. By 31 March, on a template to be issued by Marine Directorate a report which will detail:

i. Expected targets for quota uptake for the forthcoming quota year.

ii. If the QMG does not intend to fish any of the quota distributed to it, set out how this quota will be utilised (for example, if to be swapped or traded away and, if so, for what the fishing opportunity will be exchanged).

iii. How the operation of the QMG will align with objectives for QMGs (Paragraph 47 above) and, to allow Marine Directorate to assess whether the QMG continues to meet the general recognition criteria under Section 3.6.2 above, any changes to the information provided by the QMG to Marine Directorate in the application form referred to under Paragraph 44 above.

iv. Other information as requested by Marine Directorate to further our understanding of sea fisheries.

l. By 31 January at the latest of the following year, on a template to be issued by Marine Directorate a report which will detail:

i. Comparison between expected uptake of quotas distributed to the QMG and the final year position. Where expected targets for quota uptake are not met an explanation as to why not.

ii. A review of quota swapped or traded away during the course of the year and details of what this fishing opportunity was exchanged for.

iii. Details of any breaches of permitted fishing catches by vessels operating in the QMG and actions taken.

iv. How the QMG aligned with Scottish Government objectives for sea fisheries (Paragraph 47 above).

v. Other information as requested by Marine Directorate to further Marine Directorate’s understanding of sea fisheries.

3.6.3 Removal of QMG status or suspension of sectoral quota management responsibilities

49. Marine Directorate retains the option to withdraw or to suspend sectoral management responsibilities from a QMG, if the QMG (i) breaches obligations under the UK or Scottish QMRs; (ii) is no longer able to demonstrate to Marine Directorate that it satisfies the general recognition criteria and objectives for QMG under Section 3.6.2 of the Scottish QMRs; (iii) does not meet the reporting requirements under Paragraph 48 of the Scottish QMRs; or (iv) breaches terms agreed in the Service Level Agreement.

3.6.4 Closure/opening of QMG fisheries

50. Wherever possible, Marine Directorate will not close QMG fisheries without prior contact with the relevant QMG. Where already closed, fisheries will not be re-opened to QMGs unless so requested. Licence variations to effect fishery closures and openings will normally be posted weekly on the Marine Directorate website at 00.05 hrs on a Friday and have legal effect from 00.01 hrs on a Sunday. To take account of these timings, any requests from QMGs either to open or close a fishery should be agreed with Marine Directorate quota managers by midday on a Thursday if they are to take effect on the following Sunday.