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MSA – Catch Shares - Economics

MSA – Catch Shares - Economics. Eric Thunberg Northeast Fisheries Science Center, Social Sciences Branch, NOAA Fisheries Office of Science and Technology, Economic and Social Analysis Divisions Eric.Thunberg@NOAA.GOV. Overview. NOAA Catch Share Policy (Draft) MSA Provisions

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MSA – Catch Shares - Economics

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  1. MSA – Catch Shares - Economics Eric Thunberg Northeast Fisheries Science Center, Social Sciences Branch, NOAA Fisheries Office of Science and Technology, Economic and Social Analysis Divisions Eric.Thunberg@NOAA.GOV

  2. Overview • NOAA Catch Share Policy (Draft) • MSA Provisions • Most Important Issues • Opportunity Cost

  3. NOAA Catch Share Policy • Catch Shares are a tool • Encourage consideration in fisheries where appropriate • NOAA will support design, implementation and monitoring of catch shares • Design Features • Specific management goals • Transferability • Periodic review • Distinctions among sectors (user groups) • Fishing community sustainability • Royalties

  4. MSA Requirements/Features • Not a right or interest in any fish prior to harvest • Shall assist in rebuilding • If over-capacity, contribute to reducing capacity • Promote – safety, social and economic benefits • Include appeals process for initial allocations • Establish procedure to detect collusion • Allows allocations to communities • Allows allocations to regional fishery associations

  5. Allocation: “Shalls” • Ensure fair and equitable initial allocations • Consider • Current/historical harvest • Employment in harvest and processing sectors • Investments in and dependence on the fishery • Current and historical participation by fishing communities

  6. Allocation “Shalls” • Include measures to assist where necessary and appropriate • Entry-level and small vessel owner-operators • Captains and crew • Fishing communities • Set asides, Economic assistance in purchasing • Excessive share limits

  7. Allocation “Considers” • Basic cultural and social framework • Small owner-operator • Fishing communities • Regional or port-specific landing requirements • Excessive geographic concentration or other consolidation in harvesting or processing sectors

  8. Other Provisions • Shall establish transferability consist with Council objectives • Consider auctions in initial allocations or other program to collect royalties • Shall develop program for cost recovery • Permit issued for a period not more than 10 years • will be renewed unless revoked • LAPP Assisted Purchase Program • Reserve 25% of fees collected under royalty/auction for • Entry level or small vessel fishermen

  9. Most Important Issues • Articulate goals/objectives • Objectives need to be measureable/data informed • Be up front about the tradeoffs among objectives

  10. Amendment 16 Goals/Objectives • Fleet capacity commensurate with resource to achieve goals of economic efficiency that encourages diversity within the fishery • Minimize adverse impacts on fishing communities and shoreside infrastructure • Maintain diverse groundfish fishery including gear types, vessel size, geographic location, participation • Develop biological, social, and economic performance measures to assure accountability in achieving management objectives

  11. The Shrinking Opportunity Set

  12. Summary Points • Catch Shares a tool not a requirement • Councils afforded considerable discretion in design • MSA requires consideration of wide range of economic and social concerns but few “actionable” requirements • Objectives, Objectives, Objectives • Clear • Measurable/Data informed • Articulate tradeoffs • Be wary of shrinking opportunities

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