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 Most Important Issues Opportunity Cost 2 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 3 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 4 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 5 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 6 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 7 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 8 Most Important Issues • Articulate goals/objectives • Objectives need to be measureable/data informed • Be up front about the tradeoffs among objectives 9 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 10 The Shrinking Opportunity Set 11 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 12