Experiences of the Estonian quota system CEO Mart Undrest Estonian Fishermen's Association Mart Undrest 26.11.2014 Topics • • • • • • Historic overview of Estonian quota system Overview of present Estonian quota system Overview of Estonian fleet Overview of Estonian quota division Positive features of the ITQ system Criticism of the ITQ system Historic overview • Until 1997 there was an open access “Olympic” fishery in Estonia, leading to over capitalization and overexploitation. In principle, fishing was not regulated and fishing vessels could receive licenses for all they could catch. Historic overview • In the mid 1990s, fishing capacity in Estonian fisheries exceeded fishing opportunities. Hence, one of the main objectives of the new system was to reduce fleet capacity to a size that would match available resources. • Historical catches from 1999 – 2001 of Estonian fishing companies served as the basis for allocation of fishing rights ITQ since 2003 • Companies can sell and rent the quota • Must have fishing vessel or rent it • Today all fishing rights in Estonia are based on the historic usage principle and are fully transferable. Present system • All fishing rights in Estonia are assigned exclusively to a fishing company based on the historic usage principle. Vessels have nothing to do with the ownership of historic rights. All Estonian fishing rights are fully transferable between license owners within the country (and outside as well). Present system • Fishing rights are subdivided into shares (% of the overall quota); these shares belong to the legal person (fishing company) who owns or rents the fishing vessel, but they are not attached to the vessel itself. Present system • There are no fishing regulations that limit the concentration of quota shares, although there may be some restrictions in business and competition law. The current system does not allow new entries into the fishery. Estonian Fleet in numbers • • • • • • • • 1999 – around 150 vessels 2004 – 70 vessels 2005 – 61 vessels 2006 – 55 vessels 2007 – 41 vessels 2008 – 35 vessels 2012 – 30 vessels 2014 – 25 vessels (active and over 20 m) Division of quotas between coastal fleet and trawling fleet • Baltic-Herring in Gulf of Riga – 54% trawling fleet – 46% coastal fishery (passive gear, less than 12 m vessels) • Baltic-Herring in main basin of the Baltic Sea – 88,65% trawling fleet – 11,35% coastal fishery (passive gear, less than 12 m vessels) Sprat – Estonia 2014 Baltic-Herring – Estonia 2014 Cod – Estonia 2014 *by-catch quota of cod Positive features of the ITQ system • Fishing effort will decrease and fleets will be consolidated • Quality and value of landed catch will increase • More profitable for owners • Flexibility (between companies, countries, year-to-year etc.) Criticism of the ITQ • Private control of public resource – solution: certain tax or fishing fee • Quota consolidation – solution: how big of % each company/vessel can own • Leasing practices – solution: try to avoid companies who do not actively take part in the fishery • Economic depression of coastal communities – solution: separate allocation to coastal fishery Thank You For Your Attention!