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The privatization model

Some Thoughts on the “ Feasibility, ” “ Appropriateness, ” and Possible Alternatives to TFCs in the Context of the CFP Reform Seth Macinko Dept. of Marine Affairs University of Rhode Island macinko@uri.edu.

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The privatization model

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  1. Some Thoughts on the “Feasibility,”“Appropriateness,” and Possible Alternatives to TFCs in the Context of the CFP ReformSeth MacinkoDept. of Marine AffairsUniversity of Rhode Islandmacinko@uri.edu

  2. Considering feasiblity, appropriateness, and alternatives from the standpoint of: the effect of TFCs (as proposed) onNations (i.e., MS)CommunitiesFuture Generations

  3. Understanding TFCs as proposed:consistent with the characteristic features of “rights-based” prescriptions:given freely to select vessel ownersindefinitetransferrablewrapped in a rhetoric of deregulation and property rights

  4. The privatization model

  5. The privatization model and the nationWho captures the resource rent?—the meaning of leasing

  6. Mandatory wealth forfeiture

  7. The privatization model and communities

  8. Unleashing Institutionalized Cannibalism

  9. The privatization model and future generations

  10. “Young people in New Zealand do not aspire to own quota, it is too expensive. Young people in NZ aspire to own boats and fish quota owned by the corporations (including Maori corporations).”

  11. “Feasible”?Mandatory wealth forfeiture in a time of imposed austerity measures??(why not reverse this mandate by saying that IF MS elect to use TFCs, they must do so in a way that preserves rather than forfeits wealth?)

  12. Transforming Future Generations into Sharecroppers

  13. “Feasible”?“The Court of Auditors is questioning the use of taxpayer’s money to address overcapacity.” [EU Commission “non-paper”--- CFP Reform, Transferable Fishing Concessions]Is giving away resource wealth any more acceptable? “Feasible”?

  14. A short digression on “overcapacity”* Capacity as a quality, not merely a quantity, issue* TFCs “managing” capacity?* Vibrant fishing communities will require… boats/jobs* Stop blaming boats for your inability to manage mortality…

  15. Appropriate?Proportionality?Subsidiarity?EU Agenda for 2020?Human Rights?Social and Environmental Goals?On the edge of irreversibility?

  16. In Response?“[MS] must therefore take care that the TFC system leaves no room for speculations or situations that are detrimental to regions dependent on fisheries…” [EU Commission “non-paper”--- CFP Reform, Transferable Fishing Concessions]

  17. Transitioning to an Alternative(s)

  18. 1) Lease FCs directly from current public owners2) Apply “multiplier” to actuate social and environmental criteria

  19. 1) Lease FCs directly from current public ownersWe know that public leasing will work just fine---- fishers around the globe are leasing now. The only question is to whom do/should the lease payments go?

  20. Addresses deficiencies of the privatization approach while providingflexibility for the futuresource of funds to facilitate the transition

  21. 2) Applying S&E Criteria Multiplierexample criteria:Contribution to the local economySelectivity of gears and practicesDamage to the sea floor and habitatsFuel consumption and CO2 emissionsQuality of the fishEmploymentFishing legally

  22. Use Criteria to form a MultiplierStandard Approach:annual fishing allotment = TFCs(%) X TACMultiplier Approach:annual fishing allotment = (FCs(%) X TAC) X Multiplier

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