Implementation of ITQ system in Estonia

Report
ITQ system in the
Estonian pelagic fishery
Ain Soome
Head of Fishery Economics Department
Ministry of Agriculture
26.11.2014
Implementation of ITQ system in
Estonia
· ITQ system was implemented for the allocation
of fishing possibilities since 2001
· Quota is allocated to the entrepreneures
(companies) registered in the Estonian business
register, which owns or have legal right to use
the fishing vessel registered in the Estonian
Fishing Vessels Register in appropriate fleet
segment
· Entrepreneures present they applications for the
fishing rights for the next year until December 1st
and if there is more applications than fishing
Implementation of ITQ system in
Estonia
· Initially 90% of fishing possibilities were allocated
between entrepreneures based on historical fishing
rights and 10% were sold in the auction
· Since 2003 the system was changed and 100% of
fishing possibilities were allocated between
entrepreneures based on historical fishing rights
(auctions were abolished) if there was more
applications than fishing possibilities
· Historical fishing rights are the fishing possibilities
acuired by every entrepreneur on the previous 3
years which precede the year for which fishing
possibilities will be allocated (for next year 2012,
Implementation of ITQ system in
Estonia
· Fishing possibilities are counted to be acuired by
entrepreneur if it has paid fishing fee for those
fishing possibilities
· Fishing fee for herring and sprat in 2015 will be
3,52 euro per tonne
· It is allowed to alienate (sell or give away) historical
fishing rights partly or fully to the entrepreneur who
is entitled to get fishing permit
· If an entrepreneur 3 years in a row has not used at
all fishing possibilities allocated to it these fishing
possibilities are counted to be free
Example of the calculation the share
and fishing possibilities of the
entrepreneures
Division of fishing possibilities of 100 tonnes of Sprat for 2015
Entrepreneur 2012 2013 2014SUM
Calculation
of share
Share Quota for 2015
A
5
5
5
1515/105
0,1429100*0,1429=14,29
B
10
10
10
3030/105
0,2857100*0,2857=28,57
C
20
20
20
6060/105
0,5714100*0,5714=57,14
TOTAL
105
1
100
Rationale of introduction the ITQ system in
Estonia




Fishing possibilities are always limited and rush to fish or so
called „Olymic system“ will lead to high catshes in short
period in consequence of that is lower fish prize and lower
income for fishers
„Olymic system“ likely will lead to fishing also in the period
when quality of fish is not good
„Olymic system“ likely will lead to full utilization of the
national quota in relatively short period
ITQ system will give the initative to entreprenuers to reduce
they fishing capacity to the level necessary for utilization its
fishing possibilities and increases economical perfomance of
the entreprenuer
Rationale of introduction the ITQ system in
Estonia



Possibility to sell historical fishing rights will make it easier
for an entrepreneur to leave the sector whose fishing
possibilities are small and not enough for economically viable
activity
ITQ system will lead to reasonable concentration in the sector
which improves economical performance of entrepreneurs
participating in fishing and having enough fishing
possibilities for economically viable activity (they will be
able to invest to they business)
Having stability for getting fishing rights and enough fishing
possibilities which enable good economical performance will
avoid the participation in illegal fishery and will increase
responsibility of fishers in sustainable fishing
Reduction of fishing capacity in the
Estonian Baltic Sea trawling sector
2000
Reduction %
2004 compared 2000
Reduction
Reduction
without
%
scraping
compared Scraping in compared
2014 2004
2004-2014 2004
Year
Number
of
vessels
Total
power
(KW)
153
19
35
77
59
94
33283 26594
20
9101
66
12785
13809
Total
gross
tonnage
(GT)
13059 10188
22
3339
67
5114
5074
189
Thank you
Ain Soome
ain.soome@agri.ee

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