Fishing vessels - economic link: business and regulatory impact assessment

18. Summary and recommendation

This BRIA recommends the preferred option of amending the economic link licence condition for Scottish registered fishing vessels to:

• shift the landings target from the UK to Scotland only;
• remove the option of demonstrating an economic link to Scotland on the basis of crew residence and vessel expenditure;
• require vessels to land 55% of their total landings of the 8 key species each year into Scotland in order to meet the landings target;
• provide an alternative to landing into Scotland through quota gift while and increase the economic benefits to Scotland from Scottish quota reflecting better the lost benefits of landings in the quota gift rate; and
• increase the qualification tonnage for economic link provisions from two tonnes of quota species to ten tonnes of the 8 key species.

Other options, including voluntary options, were considered but when analysed the benefits were shown to fall short of the benefits that are expected from the above proposal. The preferred option is expected to deliver the benefits associated with landing and processing more valuable stocks in Scotland as set out above. It will ensure further opportunities in Scotland to realise more benefits from a national resource. It will deliver a number of both monetised and non-monetised benefits that are believed to outweigh the carefully considered costs which may arise from the introduction of this policy.

Table 12: Summary costs and benefits of the preferred option (expected 2023 prices, discounted)

Total benefit per annum:

• economic, environmental, social

• Expected to deliver benefits of £53.6 million to £223.6 million across a 10 year time horizon. These figures relate to scenario 1 and 3, respectively. The central scenario indicates benefits of £82 million across 10 years.
• Key non-monetised benefits include: stable supply chains; targeted quota gifting to deliver benefits to fishing dependent communities; improved export penetration; reduced environmental and financial costs from reduced steaming.

Total cost per annum:

• economic, environmental, social
• policy and administrative

• Expected monetised costs range from £3.9 million to £12.8 million across a 10 year time horizon. These figures relate to scenario 1 and 3, respectively. The central scenario indicates costs of £6.0 million across a 10 year time horizon.
• Key non-monetised costs include: minimal administrative costs and possible increased steaming; up- and down-stream sector may need to undertake investments to make the most of economic opportunities provided; potential costs in shifting business relationships; potential costs if crew and expenditure patterns change; costs from potential labour shortages in this industry.

From the above, this proposal is expected to deliver net benefits of £49.7 million to £210.6 million (expected 2023 prices) and is therefore expected to be highly beneficial to Scotland.