Marine resources - remote electronic monitoring (REM): business and regulatory impact assessment

Partial Business and Regulatory Impact Assessment: Remote Electronic Monitoring ("REM") on vessels deploying scallop dredge gear in the Scottish zone

Title of Proposal

Remote Electronic Monitoring ("REM") on vessels deploying scallop dredge gear in the Scottish zone.

Purpose and intended effect

Background

In accordance with The Regulation of Scallop Fishing (Scotland) Order 2017^[14] ("The 2017 Order"), around 20 British registered fishing vessels which dredge for King Scallops have financed the on-board installation of an REM system so that they can deploy 10 dredges per side in the 6-12 nautical mile area within the Scottish zone.

Marine Scotland uses the REM data to validate that the number of dredges deployed in inshore waters do not exceed statutory limits by use of:

(i) spatial data (i.e. where and when a vessel is fishing); and

(ii) imagery from cameras (to monitor the number of dredges deployed).

These scallop dredge vessels already installed with REM comprised 11-13% of the scallop dredge vessels active in the Scottish zone in 2018-2020.

Marine Scotland's Fisheries Management Strategy^[15] 2020-2030 ("FFM") sets out our policy initiatives to protect the environment, and support a strong, sustainable and resilient fishing industry. The FFM Strategy has set out a clear direction of travel regarding the use of vessel REM in Scotland. Publications have explained that legislation will be laid in the Scottish Parliament to make REM on scallop dredge vessels mandatory. Commitments to introduce REM requirements for other sectors of the fishing industry have also been made. Establishing a 'level playing field' for all vessels fishing alongside each other is important in our REM policy development.

In 2020, Scallop dredge vessels operational in the Scottish zone in 2020 comprised 69% Scottish registered vessels, 30% other UK registered vessels and 1% non-UK other. These proportions are generally fairly consistent from 2018-2020 (Fig. 1). Vessels deploying scallop dredge gear in the Scottish zone can be differentiated into larger nomadic boats that fish around the UK coast and smaller boats that fish in more localised areas.

The UK had 264 active scallop dredge vessels^[16] in 2019 with an average estimated real operating profit^[17] of approximately £47.2 thousand per vessel.^[18] The estimated real operating profit for the fleet was therefore £12.5 million in 2019 which was a steep increase from 2018, despite a 10% decrease in the number of vessels in the fleet in the year.

In 2019 the average real net profit^[19] for UK Scallop dredge was £14,000 per under 15 metre vessel, the net profit margin for the full sector being 7%. For the over 15 metre fleet it was 6%.

Landings by Scottish registered vessels represented 66% of total UK scallop and queen scallop landings by value in 2019.

Objective

The objective is to introduce measures that prohibit any vessel deploying scallop dredge gear in the Scottish zone unless a fully functional REM device is installed on-board. The REM data required will be able to be reviewed remotely by Marine Scotland and will include positional data, winch sensor data, electronic monitoring images and video.

Rationale for Government intervention

The Scottish Government is committed to the sustainable development of the fishing industry and using appropriate REM in tailored and workable frameworks which deliver benefits to fishing fleets, help improve fisheries management and policies, help demonstrate compliance, and also aid interaction and planning within our shared marine waters. There are significant fisheries management and compliance benefits from having REM on board scallop dredge vessels.

There is public interest and support for REM to be deployed across the whole of the scallop dredge fleet. There is also strong support from within the scallop dredge sector that appropriate REM for scallop dredge vessels should include camera(s), GPS receivers and winch sensors. There is recognition that the technology genuinely enhances the ability to demonstrate accountability in fishing practices and, to deliver confidence that scallop fishers are complying with rules and regulations.

UK and EU vessels with a length of 12 meters or greater are required to have a functioning satellite tracker ("VMS") installed on-board^[20]which transmits the boats' positional data to a satellite and then sends it to a national or international body that monitors vessels' position, course, speed and other parameters. In general VMS pings are received every 2 hours.

In comparison, Article 6 of the 2017 Order requires REM systems to report vessel positions at 10 second intervals. The availability of REM data for all scallop dredge vessels in Scottish waters will therefore improve the 2 hourly VMS reports and provide spatially rich data of all fishing activity. Such data is valuable in a range of circumstances, in particular it will provide a more detailed profile of Scotland's scallop fishery, to aid and improve management measures. In addition it will assist fishers in factually demonstrating their activities during marine planning processes and has the potential to generate market benefits through the likes of accreditation schemes.

REM can also be used to deliver confidence that fishers are complying with the rules and regulations which are in place, and supplement existing enforcement tools. The presence of a fishing vessel in a Marine Protected Area ("MPA") does not mean a law has been broken as vessels may transit through areas. Different MPAs carry different restrictions so what is illegal in one, might not be in another. Existing legislation^{[21][22][23][24][25][26][27]} does prohibit the deployment or use of scallop dredge gear within specified locations, either for all or part of the year within the specified location. There are limited exemptions to these prohibitions, for example gear can be deployed for research purposes or safety reasons.

Marine Scotland receives reports from the public and other sources in relation to suspected illegal activity, including allegations of scallop dredging in MPAs or other closed areas^[28].

The reports received help build up a picture of what might be happening and inform the tasking of coastal, marine and air assets, providing a mechanism to gather further intelligence. However, it is important to note that the Reports are received from a range of sources and may range from very accurate to completely inaccurate. They do not prove wrongdoing or suggest guilt, they are a report of what someone thinks they have seen. They may contain errors including the misidentification of vessels; misidentification of activity; and, inaccurate details as to exact location of the activity being witnessed.

Marine Scotland Compliance fully investigates all reports of suspected illegal fishing, including suspected illegal scallop dredging, to the extent that the evidence allows and appropriate action is taken where necessary.

The Scottish MPA network currently covers approximately 37% of the seas around Scotland. The 2021 Cooperation Agreement^[29] with the Scottish Green Party builds on the FFM Strategy and aims to achieve a step change in marine protection. The Agreement includes commitments to:

• Implement management for our network of MPAs and protection for some of our most vulnerable Priority Marine Features outside of MPAs;
• Introduce Highly Protected Marine Areas ("HPMAs") covering at least 10% of our waters by 2026;

REM systems which establish when and what fishing activity is taking place deliver confidence in compliance with rules and regulations e.g. MPA regulations. In relation to scallop dredge REM, sensors are mounted on the vessel to capture location and activity data, whilst the imagery data from the cameras is used:

a) to validate that the number of dredges deployed at sea do not exceed statutory limits; and,

b) to function as a corroborative tool to prove (or disprove) fishing activity on location (thereby ensuring that MPA legislation / spatial restrictions are respected.

Making REM mandatory on scallop dredge vessels operating in the Scottish zone contributes to the Scottish Government's National Performance Framework Outcome 'We value, enjoy, protect and enhance our environment'.

Consultation

Within Government

Consultation has been undertaken with colleagues from Marine Scotland Compliance, Marine Scotland Science, Sea Fisheries Division and Marine Planning & Policy.

We have been engaging with DEFRA and other UK Fisheries Administrations on vessel tracking and REM.

Public Consultation

A full public consultation is being held, running from 15^th March 2022 until 7^th June 2022. The consultation documentation includes this partial BRIA.

Business

Views on REM were sought as part of the National Discussion Paper on Future Fisheries Management^[30], which was published in March 2019.

The Scottish Scallop Sector Working Group ("SSSWG"), established in 2019, acts as a consultative forum to inform future policy development and discuss national issues facing the sector, including the roll out of REM amongst the fleet. The group broadly represents scallop interests in Scotland - membership (with dredge, dive and processing interests) includes fishing association representatives, frontline fishers/businesses and Regional Inshore Fisheries Groups.

Ongoing engagement with a range of stakeholders, both within and outwith the fishing industry, suggests that there is interest and support for REM requirements to be applied consistently amongst the scallop dredge fleet, principally to promote sustainable and responsible fishing by demonstrating that gear limits and spatial fishing restrictions are respected.

Options

Option 1: Do nothing

This would maintain the current monitoring arrangements for the Scottish scallop fishery.

Option 2: Introduce measures to prohibit any vessel deploying scallop dredge gear in the Scottish zone unless a fully functional REM device is installed on-board.

Sectors and groups affected

The following sectors have been identified groups who will be affected by the proposal:

• Scottish scallop fishing industry (vessels that do not already have REM installed)
• Wider UK and International scallop fishing industry operating in Scottish waters
• REM suppliers
• REM engineers (i.e. those that install and maintain REM systems)
• Scottish Government, in particular Marine Scotland Compliance who will be responsible for reviewing REM data.
• Courts – if criminal enforcement/ legal challenges are pursued.
• Processors and consumers

Benefits

Option 1: Do nothing

Benefits

Fishing vessels would be able to continue fishing for scallops in the Scottish zone as per the existing Scottish fisheries legislation.

Costs

Marine Scotland will likely continue to receive reports from the public and other sources in relation to suspected illegal scallop dredging in MPAs or other closed areas^. The reports will continue to inform the tasking of coastal, marine and air assets to gather further intelligence.

In recent years markets and consumers have become increasingly focussed on sustainability, traceability and accountability. By maintaining the current monitoring arrangements, the product could become less attractive to consumers and could eventually result in lower prices or the loss of access to markets.

Option 2: Introduce measures to prohibit any vessel deploying scallop dredge gear in the Scottish zone unless a fully functional REM device is installed on-board.

Benefits

At a basic level, the REM technology on scallop dredge vessels operating in the Scottish zone will:

• provide high spatial resolution positional data to identify where/when a vessel is fishing;
• provide video footage to verify the number of dredges deployed and to act as a corroborative tool in determining when fishing activity is being carried out; and,
• provide the duration (time taken and distance covered) of tows.

Data that identifies where/when and for how long a vessel is fishing will provide a more detailed profile of Scotland's scallop fishery, to aid and improve management measures, to act as a tool to detect any non-compliant activity and help sustain this important industry for coastal communities.

Scotland's inshore marine environment is increasingly in demand, by a variety of sectors who want to utilise the resource. REM data will help address the challenges this poses by enhancing the fisheries evidence base and enabling improved interaction between the fishing industry and other marine users, for example in a marine planning context.

In addition, the data can be used by fishers to effectively demonstrate their activities during marine planning processes or to derive market benefits through the likes of accreditation schemes, which can in turn improve the competitiveness of the product.

The risk based review of camera footage validates that a vessel is not exceeding prescribed dredge numbers in inshore waters and is also a corroborative tool to prove (or disprove) fishing activity on location, providing confidence and accountability in the operations.

Costs

Voluntary REM installations on currently active Scottish registered scallop dredge vessels have been funded under Marine Scotland's Modernisation of the Inshore Fleet Programme. The public consultation seeks views on future funding of REM for Scottish registered vessels, including maintenance/repair costs.

Owners of non-Scottish vessels that wish to continue to operate in the Scottish zone would need to procure an REM unit that worked within the parameters set or consider eligibility for funding opportunities with their relevant authorities.

Item: Approximate Cost

• Hardware system: £4,000 - £6,000
• Annual License : £300 - £400
• Installation: £500 - £1600
• Sim card costs: £4.00 - £7.00 per month
• Annual Maintenance: £0 - £300 (excluding labour) (likely to increase over time)
• Annual cost (first year): £4,850 - £8,400
• Annual cost (thereafter): £350 - £800

The decision to introduce a legislative requirement for REM, would result in costs being incurred by the public sector in the following areas:

• Preparation and delivery of this policy proposal
• Preparation of Statutory Instruments
• Development of voluntary instruments
• Software and licensing costs
• Compliance and enforcement – including additional staff
• Promotion of public understanding
• Regulatory and advisory costs associated with licensing decisions

Option 1

Total benefit per annum:

- economic, environmental, social

Fishing vessels would be able to continue fishing for scallops in the Scottish zone as per the existing Scottish fisheries legislation.

Total cost per annum:

- economic, environmental, social

- policy and administrative

Marine Scotland will likely continue to receive reports from the public and other sources in relation to suspected illegal scallop dredging in areas where it is not permitted.^. The reports will inform the tasking of coastal, marine and air assets to gather further intelligence.

The product could become less attractive to consumers and could eventually result in lower prices or the loss of access to markets which are increasingly focussed on sustainability, traceability and accountability.

Option 2

Total benefit per annum:

- economic, environmental, social

The benefits of REM include: improving confidence and accountability of our fleets and their products (thus enhancing not only individual business's reputation but that of Scotland's fishing industry as a whole); addressing compliance issues; helping enhance the fisheries evidence base; and, enabling improved interaction between the fishing industry and other marine users.

Total cost per annum:

- economic, environmental, social

- policy and administrative

All scallop dredge vessels that do not already have a fully functional REM system on-board that meets the requirements set will need to procure a suitable system.. Estimated cost (first year) is £4,850 to £8,400 per boat.

Annual costs thereafter are estimated to be £350 - £800.

The public consultation seeks views on future funding of REM for Scottish registered vessels, including maintenance/repair costs.

Public sector costs are anticipated to reduce after introduction of an SSI but there will be ongoing costs to Marine Scotland due to the increase in REM data received and its analysis.

Scottish Firms Impact Test

Membership of the SSSWG includes fishing and processing businesses. Input from the SSSWG has been vital in developing the policy and have been fully consulted throughout. A number of Scottish businesses have already chosen to have an REM system installed on their vessel/s.

The public consultation and associated engagement with industry will inform future development.

Competition Assessment

These measures will apply to all fishing boats carrying and deploying scallop dredge gear in the Scottish zone and are therefore unlikely to have any major impact on the ability of operators to compete against each other.

The legislation (as with the 2017 Scallop Order) will establish the parameters within which the REM system should operate. In recent years companies developing REM solutions to meet the challenges of monitoring diverse global fisheries have increased. In general, REM systems can be customizable and configurable to meet the diverse requirements of individual fisheries.

Test run of business forms

Marine Scotland does not currently anticipate that new business forms will be introduced.

Legal Aid Impact Test

No impact is currently anticipated. To be reviewed.

Enforcement, sanctions and monitoring

Marine Scotland Compliance is responsible for the monitoring and enforcement of marine and fishing laws. Where a breach of fisheries regulations has been detected, it will be reported as appropriate to the prosecuting authorities. This can result in a fine of up to £50,000 on summary conviction, or a fine on conviction on indictment.

Implementation and delivery plan

The new scallop dredge vessel monitoring measures will be introduced through secondary legislation. Marine Scotland will monitor the impact of the new management measures and consider any practical or unforeseen consequences should they arise.

Summary and recommendation

Marine Scotland recommends Option 2. Introducing new measures that prohibit any vessel deploying scallop dredge gear in the Scottish zone unless a fully functional REM device is installed on-board.

Summary costs and benefits table

Option 2

Total benefit per annum:

- economic, environmental, social

The benefits of REM include: improving confidence and accountability of our fleets and their products (thus enhancing not only individual business's reputation but that of Scotland's fishing industry as a whole); addressing compliance issues; helping enhance the fisheries evidence base; and, enabling improved interaction between the fishing industry and other marine users.

Total cost per annum:

- economic, environmental, social

- policy and administrative

All scallop dredge vessels that do not already have a fully functional REM system on-board that meets the requirements set will need to procure a suitable system.. Estimated cost (first year) is £4,850 to £8,400 per boat.

Annual costs thereafter are estimated to be £350 - £800.

The public consultation seeks views on future funding of REM for Scottish registered vessels, including maintenance/repair costs.

Public sector costs are anticipated to reduce after introduction of an SSI but there will be ongoing costs to Marine Scotland due to the increase in REM data received and its analysis.

Declaration and publication

I have read the Business and Regulatory Impact Assessment and I am satisfied that (a) it represents a fair and reasonable view of the expected costs, benefits and impact of the policy, and (b) that the benefits justify the costs. I am satisfied that business impact has been assessed with the support of businesses in Scotland.