Individual Transferrable Quotas: New Zealand’s Experience€¦ · New Zealand’s Response...
Transcript of Individual Transferrable Quotas: New Zealand’s Experience€¦ · New Zealand’s Response...
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Individual Transferrable Quotas:
New Zealand’s Experience
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New Zealand Fisheries Waters
• Large EEZ (4.4
million km2)
• 70% below 1,000 m
• Medium productivity
• Commercial Fisheries
• Non-commercial
Fisheries
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Reform Context (early 1980s)
• Classic fisheries issues – Inshore stocks overfished
– Commercial fisheries over-capitalised
– Unprofitable, uncompetitive, rent dissipation
– Declining recreational fishing
– Risk of extending problems to newly developing deepwater
fisheries
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New Zealand’s Response
• Objectives of the Quota Management
System – Primarily economic drivers
– Restore profitability to inshore fisheries
– Avoid over-capitalisation in new deep-water fisheries
– Limit catches to MSY
– QMS in place since 1986, after 25+ years experience
everyone has adjusted
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Quota Management System (QMS)
• Several refinements have been made
since 1986 but the basic tenets remain: – Setting catch limits
– No discarding QMS species
– Individual Transferable Quotas (ITQs)
– Markets determine allocation of commercial effort
– Monitoring and enforcement
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New Zealand's ITQs
• Species and area specific
• Perpetual and transferable
• Generate ACE (annual catch entitlement)
• Some ownership restrictions • Maximum holdings (aggregation limits) 10-45% of TACC
• No foreign ownership
• Ongoing allocation only via ITQ and ACE
trading
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Cost Recovery/Subsidies • NZ originally considered resource rentals
based on the decision to allocate quota
without tender process
• Now use cost recovery mechanism to charge
quota holders selected government costs
(e.g. observers, fisheries research,
administration)
• No subsidies in QMS system; quota owners
pay c. 30-35% of government costs
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Outcomes
• Reflect two primary
policy objectives of
QMS
– Resource
sustainability
delivered
– Economic
performance
improved
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Fleet rationalisation
0
500
1000
1500
2000
2500
3000
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Registered fishing vessels
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Quota rationalisation
0
1.000
2.000
3.000
4.000
5.000
6.000
7.000
8.000
9.000
19861987198819891990199119921993199419951996199719981999200020012002200320042005200620072008200920102011
Combined total quota owners for 16 selected inshore species
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Export value/volume
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Benefits/Gains
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Challenges unique to QMS
• Designing systems to administer and audit QMS
• Required refinements to suit local conditions and policy requirements
• Social impacts anticipated and managed
– Social dislocation in small coastal fishing communities
– Growth in large vertically-integrated fishing ports
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What general conclusions can be drawn
from the NZ experience?
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General conclusions
• QMS objectives focused on economic
efficiency
– NZ’s ITQ design choices reflect this objective
– If you have other management objectives,
… the design of your rights based management
regime would be different
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General conclusions
• NZ’s policy design features allowed for
controlled industry restructuring
– Building legitimacy and collaboration is key to success
– Quota allocation on catch history basis
– Strongly specified ITQ (perpetual, tradable and enshrined in
law)
– Provides certainty/security for investment
– Quota ownership limits
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Other key considerations
• Avoid disadvantaging competing sectors
• Design policy to encourage collective
responsibility
• Do not overlook importance of integrated
planning
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