ITQ system in the Estonian pelagic fishery

Ain SoomeHead of Fishery Economics DepartmentMinistry of Agriculture

26.11.2014

Implementation of ITQ system in Estonia

· ITQ system was implemented for the allocation of fishing possibilities since 2001

· Quota is allocated to the entrepreneures (companies) registered in the Estonian business register, which owns or have legal right to use the fishing vessel registered in the Estonian Fishing Vessels Register in appropriate fleet segment

· Entrepreneures present they applications for the fishing rights for the next year until December 1st and if there is more applications than fishing possibilities these possibilties will be allocated based on historical rights

Implementation of ITQ system in Estonia

· Initially 90% of fishing possibilities were allocated between entrepreneures based on historical fishing rights and 10% were sold in the auction

· Since 2003 the system was changed and 100% of fishing possibilities were allocated between entrepreneures based on historical fishing rights (auctions were abolished) if there was more applications than fishing possibilities

· Historical fishing rights are the fishing possibilities acuired by every entrepreneur on the previous 3 years which precede the year for which fishing possibilities will be allocated (for next year 2012, 2013, 2014)

Implementation of ITQ system in Estonia

· Fishing possibilities are counted to be acuired by entrepreneur if it has paid fishing fee for those fishing possibilities

· Fishing fee for herring and sprat in 2015 will be 3,52 euro per tonne

· It is allowed to alienate (sell or give away) historical fishing rights partly or fully to the entrepreneur who is entitled to get fishing permit

· If an entrepreneur 3 years in a row has not used at all fishing possibilities allocated to it these fishing possibilities are counted to be free

Example of the calculation the share and fishing possibilities of

the entrepreneures Division of fishing possibilities of 100 tonnes of Sprat for 2015

Entrepreneur 2012 2013 2014SUMCalculation of share Share Quota for 2015

A 5 5 5 1515/105 0,1429100*0,1429=14,29

B 10 10 10 3030/105 0,2857100*0,2857=28,57

C 20 20 20 6060/105 0,5714100*0,5714=57,14

TOTAL       105  1 100

Rationale of introduction the ITQ system in Estonia

Fishing possibilities are always limited and rush to fish or so called „Olymic system“ will lead to high catshes in short period in consequence of that is lower fish prize and lower income for fishers

„Olymic system“ likely will lead to fishing also in the period when quality of fish is not good

„Olymic system“ likely will lead to full utilization of the national quota in relatively short period

ITQ system will give the initative to entreprenuers to reduce they fishing capacity to the level necessary for utilization its fishing possibilities and increases economical perfomance of the entreprenuer

Rationale of introduction the ITQ system in Estonia

Possibility to sell historical fishing rights will make it easier for an entrepreneur to leave the sector whose fishing possibilities are small and not enough for economically viable activity

ITQ system will lead to reasonable concentration in the sector which improves economical performance of entrepreneurs participating in fishing and having enough fishing possibilities for economically viable activity (they will be able to invest to they business)

Having stability for getting fishing rights and enough fishing possibilities which enable good economical performance will avoid the participation in illegal fishery and will increase responsibility of fishers in sustainable fishing

Reduction of fishing capacity in the Estonian Baltic Sea trawling

sector

Year 2000 2004Reduction % compared 2000 2014

Reduction % compared 2004

Scraping in 2004-2014

Reduction without scraping compared 2004

Number of vessels 189 153 19 35 77 59 94

Total power (KW) 33283 26594 20 9101 66 12785 13809

Total gross tonnage (GT) 13059 10188 22 3339 67 5114 5074

Thank you

Ain Soomeain.soome@agri.ee