Fishing quotas - Scottish additional quota allocation from 2024: consultation

Section 3 - Allocation Options

In this section we explore options for the allocation of AQ fishing opportunities to Scottish commercial fishing vessels. These options could be introduced from January 2024 or with relatively little future amendment (such as Option 5) and would like your views on each of them.

It is important to note that the decision taken for the allocation of AQ may include more than one of the options outlined.

In providing your answers it would be helpful if you could consider how each option meets the requirements under the Fisheries Act 2020 and the JFS in relation to the allocation of fishing opportunities – particularly that in distributing fishing opportunities we must use criteria that relate to social, economic and environmental factors. Please see Section 2.7 for further details of the Fisheries Act and the JFS.

Option 1 - Historic Track Record (HTR) (of Landings)

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^[9]) 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.

Such a distribution mechanism has the potential to reduce costs amongst active fishing businesses as they would receive AQ directly from the Scottish Government, potentially reducing the requirement to lease quota from other businesses. It would also take into consideration the capacity and capability of vessels to fish for the relevant species.

However, a downside to the use of a track record-based approach is that it could fail to benefit those vessels which were unable to access certain quota stocks in the past and were therefore unable to build a track record, due to barriers such as the cost of leasing quota.

Alongside Special Allocations^[10] to the non-sector, the Marine Directorate applied this historic track record-based option for the allocation of AQ to vessels for 2021-23. The reference period for assessing track record was 2015-2019.

Definition of an “active Scottish vessel”:

An active vessel, is a vessel which holds an associated, active fishing licence, administered by Scotland as of 1 January in the calendar year for which the quota is being distributed.

Retention of Historic Track Record after sale of vessel

During the period 2021-23, where a HTR created by a vessel/operating company was linked to a vessel (signified by the vessel’s RSS), but the owners had since replaced the original vessel, the Marine Directorate permitted the owners to link the HTR to their replacement vessel.

This provision was made to help avoid fishing businesses losing access to HTR as a result of replacing their original vessel. The exclusion of this provision would have the potential to undermine one of the purposes of allocation by HTR, namely a reduction in costs associated with leasing quotas.

Questions for consultation

1. Should AQ be awarded on the basis of landings by individual vessels? Please provide reasoning for your answer.

a. Yes

b. No

c. Don’t know

2. Should the reference period for assessing an active vessel’s HTR be fixed (2015-19), another period, or should it move to a rolling five-year period? Please provide reasoning for your answer.

a. Fixed (2015-19)

b. Another period

c. Rolling five-year period

d. Don’t know

3. Should the provision to enable vessel owners to retain an HTR between the original and subsequent replacement vessel be continued? Please provide reasoning for your answer.

a. Yes

b. No

c. Don’t know

Option 2 - Special Allocations for the Non-Sector Groups

Non-sector vessels are vessels which operate outside a Fish Producer Organisation or a Scottish Quota Management Group (so-called Sectoral Groups).

There are two non-sector groups:

(i) Scottish registered vessels in the 10 metre and under pool; and

(ii) Scottish registered vessels in the over 10 metre pool.

The vast majority of Scottish vessels are in the non-sector groups (with the majority being under 10 metres). Vessels in these categories primarily fish for shellfish, much of which are non-quota stocks, however, the Scottish Government allocates these groups with Nephrops and this is a key stock for many such vessels.

It is established practice that the Scottish Government (and the other UK Fisheries Administrations) allocate a proportion of fish quota outside of the FQA system for use by non-sector vessels. In Scotland, there are two historic Special Allocations (a form of underpinning – where the quota available to this sector is set so that the non-sector has a fixed minimum of quota each year) which are made from EQ. These stocks are: North Sea cod and North Sea mackerel).

Since 2021, Special Allocations have been made from AQ, as annotated in the Scottish Quota Management Rules^[11]. The Special Allocations made to the non-sector groups, for the period 2021-23, can be seen in Table 5.

Given historical quota allocation limitations, vessels in the non-sector groups have been more restricted than sectoral vessels in fishing for quota stocks. Respondents to the previous AQ consultation felt that allocating AQ to these groups could result in a more equitable spread of the socio-economic benefits arising from Scotland’s quota and encourage the use of fishing gear with a lower environmental impact.

The majority of 10 metre and under vessels utilise lines when targeting fish stocks, particularly cod/saithe/mackerel, though there is a small number of vessels which operate trawls (in the period 2021-22, less than 10% of all landings of species, for which Additional Quota was awarded to the non-sector groups, were made by vessels carrying bottom-impact, mobile gears). The use of lines is often associated with higher selectivity, reduced bycatch of fish species and a lower impact on the marine environment than other forms of fishing. As set out above, many of these vessels primarily target non-quota shellfish species (such as crab and lobster) and allocating these vessels species covered by quota will also allow for diversification and remove fishing pressure from these non-quota species.

It is the 10 metre and under non-sector grouping (as opposed to the 10 metre and over non-sector grouping) where Special Allocations would be focused – as has been the case in the past.

As provided in Table 6, in fisheries where a Special Allocation was made in the period 2021-22, the majority of catch was made by vessels using gear types with a low impact on the seabed.

A criticism of distributing quota to the non-sector is that where this fishing opportunity has been provided to this fleet in the past, it has often not been fully utilised.

There can be significant capacity issues (such as vessels not being capable of fishing for certain stocks or a lack of onshore infrastructure to handle the resultant catch) or geographic issues (such as available stocks not being present the waters where vessels operate) that limit the catching capacity of non-sector vessels.

This is demonstrated by the fact that some of the AQ allocated to the non-sector since 2021 has not been utilised. These factors need to be considered if allocation to the non-sector is selected as a means of distributing AQ following this consultation . There have been limited proposals from vessels in this sector as to how AQ could be better utilised by this group of vessels.

Questions for consultation

4. Should Special Allocations of AQ be awarded to the non-sector? Please provide reasoning for your answer.

a. Yes

b. No

c. Don’t know

5. Should these Special Allocations be focused on the 10 metre and under non-sector vessels?

a. Yes

b. No

c. Don’t know

6. What stocks should we award to the non-sector? Please provide reasoning for your answer.

7. Should any of the previous Special Allocations (see Table 2) be increased/decreased? Please provide reasoning for your answer.

a. Yes

b. No

c. Don’t know

8. Should the Special Allocation be a fixed tonnage (no year-to-year change in the tonnage available to these groups) or a fixed percentage (delivers an output commensurate to Scotland’s share)? Please provide reasoning for your answer.

a. Fixed Tonnage

b. Fixed Percentage

c. Other

d. Don’t know

9. Should the Scottish Government have the capacity to vary the tonnages available to the non-sector from year to year, so as to increase tonnages for stocks where there is clear demand and vice-versa? Please provide reasoning for your answer.

a. Yes

b. No

c. Don’t know

Option 3 - Allocation of Fishing Opportunities Equally Between All Vessels or a Section of Vessels

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).

Under the first, all-encompassing option each active fishing 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 expand the socio-economic benefit arising.

However, there are issues with this approach, which include:

• Not all vessels operate in the fishing areas where there is AQ and so these vessels would not practically be able to catch any such quota allocated to them.
• Not all fishing vessels have the capability of fishing for stocks where there is 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). This would seem to go against the principle of allocating fish quota to the active fishing fleet.

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 therefore limit the potential to expand the socio-economic benefit arising. For example, North Sea ling AQ has ranged between 55-61 tonnes since 2021 and would equate to roughly 30 kilos per vessel. So, the resultant quota distributed between vessels would be negligible for individual businesses.

A number of respondents to the original AQ consultation set out a proposal that AQ, for pelagic species only, should be allocated equally between those vessels identified as ‘pelagic vessels’ (the 21 Scottish vessels that target significant quantities of pelagic stocks each year). They suggested that there is a stronger rationale to treat the pelagic fleet segment differently, in terms of the allocation of AQ, than other fleet segments.

The UK’s AQ has equated to 10-15% of the UK’s total fishing opportunities (Table 1) and Scotland’s figures are more or less identical (Table 2). However pelagic species have accounted for 77-82% of all of the UK’s AQ (Table 3). This share is larger in Scotland, 85-88% (Table 4).

We therefore wish to explore whether the quota received for pelagic species should be allocated to the recognised pelagic vessels. Also, to note, that due to the small size, in terms of numbers 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.

Questions for consultation

10. Should AQ fishing opportunities be distributed on an equal basis between all active commercial fishing vessels? Please provide reasoning for your answer.

a. Yes

b. No

c. Don’t know

11. Should pelagic AQ fishing opportunities be distributed equally between the recognised pelagic fleet (as set out above)? Please provide reasoning for your answer.

a. Yes

b. No

c. Don’t know

Option 4 - Landings into Scottish Ports

A number of responses to the 2020 consultation advocated allocating AQ to those vessels which land into Scotland – as opposed to ports in other parts of the UK or abroad as this would bring greater benefits to Scotland.

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 results in 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, we ask you to consider whether landings into Scotland should be used as a basis for distributing:

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

or

2. only those stocks for which economic link provisions do not apply (stocks other than the 8 key stocks to which economic link conditions apply).

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 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, relative to landings

There would also be other factors that need to be considered under this option:

• Should this option be linked to Option 1 (Historic Track Record) or Option 3 (Allocation of Fishing Opportunities Equally Between all Vessels or a Section of Vessels) so that vessels are only awarded AQ under these alternative scenarios if they meet a minimum requirement for landings?
• Should vessels be required to land a set percentage of their total catch for a particular stock into Scotland before qualifying for AQ through this option. For example, over 50% of all landings for the particular stocks in question?
• What would the qualification period be? Would it be based on landings into Scotland for the year immediately preceding the year for which AQ is to be distributed or over a longer period?
• There are a number of species for which Scotland has a limited processing sector and home market, should these species be removed from the provision?

Questions for consultation

12. Should landings into Scotland be used as a basis for allocating AQ? Please provide reasoning for your answer.

a. Yes

b. No

c. Don’t know

13. Should AQ for those species covered by economic link licence conditions be excluded from this allocation criterion? This is on the basis that eligible vessels landing these stocks are already required to provide a benefit to Scotland through these economic link provisions.

a. Yes

b. No

c. Don’t know

14. Are there any stocks which should be excluded from this provision and if so, why do you think this should be the case (for example, if there is only a limited domestic market)? Please provide reasoning for your answer.

a. Yes

b. No

c. Don’t know

15. Over what time period should vessels’ landings into Scotland be a reference for this allocation method? Please provide reasoning for your answer.

16. Should there be a minimum qualifying percentage of landings for individual stocks into Scotland? That is: what percentage of landings of an individual stock into Scotland would be required to be eligible for a share of AQ? Please provide reasoning for your answer.

a. Yes

b. No

c. Don’t know

Option 5 - Access to Additional Quota for Vessels with Independent Accreditation

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 the manner in which fishing operations have been conducted.

For example, there is the “Responsible Fishing Vessel Standard” (RFVS^[12]), as managed by the “Global Seafood Alliance” (GSA). This is described as:

“The RFVS is a voluntary, vessel-based program certifying high standards of operational practices relating to crew safety and welfare on board fishing vessels. The RFVS is an assurance tool to help fishing vessel owners and operators showcase industry-agreed best practices through independent, third-party auditing. The RFVS is applicable to all types of commercially licensed fishing vessels and is applicable globally.”^[13]

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 alternative 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 alternative

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

Questions for consultation

17. Should allocation of AQ be linked to the welfare of the crew in all fishing operations, or the manner in which fishing operations are carried out (as set out above)? Please provide reasoning for your answer.

a. Linked to all fishing operations

b. Linked to the manner in which operations are carried out

c. Neither

d. Don’t know

18. Should this eligibility criterion be for pelagic vessels only initially? Please provide reasoning for your answer.

a. Yes

b. No

c. Don’t know

19. Should this be considered for demersal and Nephrops vessels in the future? Please provide reasoning for your answer.

a. Yes

b. No

c. Don’t know

20. Which standards or accreditations could be used as a basis for the allocation of AQ?

Option 6 – Exceptionally Providing AQ as a Result of Lost Fishing Opportunities

There are competing uses for Scotland’s seas with different sectors and industries seeking to make use of the marine space. In addition, there is a need to ensure the right environmental protections are in place to address the twin crises of climate change and biodiversity loss. It is possible that in these circumstances interventions by the Scottish Government could result 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, such as restricting activities that could compromise conservation objectives, 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 would require to be open and transparent.

Questions for consultation

21. Should the option be available for vessels to potentially have access to AQ fishing opportunities where action by the Scottish Government has removed well-established fishing opportunities with no ready alternative (on an exceptional basis)?

a. Yes

b. No

c. Don’t know

Option 7 – Applications From Sectoral Groups On Environmental Criteria

Under this option we propose that a portion of AQ is retained and Sectoral Groups are invited to bid for this retained quota on behalf of some or all of the Scottish vessels they administer.

Firstly, some background on Sectoral Groups.

Sectoral Groups are bodies recognised by a UK Fisheries Administration for the management of sea fishing vessels involved in the production of sea fish products. They hold devolved quota management responsibilities, as provided under the UK and national quota management rules of the Fisheries Administration which recognises them. The quota that UK Sectoral Groups receive is overwhelmingly based on the FQA share held on the licences they administer.

It is important to note 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.

To access this pool of AQ, it is envisaged that Sectoral Groups would be required to set out in an application form how the vessels that seek to benefit from this fishing opportunity would meet one or both of the requirements below:

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

2. 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).

It is expected that any Sectoral Group awarded quota under this initiative would be required to report on how the quota has been utilised following distribution. Failure to use the fishing opportunity in line with requirements would result in the Sectoral Group being required to compensate the Scottish Government with quota the following year.

Questions for consultation

22. Should a portion of AQ be retained and Sectoral Groups invited to bid for quota on behalf of some or all of the Scottish vessels they administer (as set out above)? Please provide reasoning for your answer.

a. Yes

b. No

c. Don’t know

23. What fish species in particular should be set aside and what quantities? Please provide reasoning for your answer.