Structure development –Trawlers and purse seiners Bent Dreyer, John R. Isaksen and Helene Jensen

Measures and drivers Structure development Innovation

Structure and Measures Input based measures Number of vessels Engine power Tonnage Age of vessel Investments Harvesting strategy Days and when at sea Fishing gear Quota portfolio Output based measures Catch per unit effort (CPUE) Capacity utilization (VIU) Profitability Waste

Drivers Biological conditions Public management Technological development Market conditions Profitability Wages and working conditions

Norwegian quotas 2010 2011 2012 2013 2014 2015 2016 Potential Cod   Cod 271 000 319 000 340 000 454 000 459 000 415 000 411 000 560 000 Haddock 116 000 148 000 153 000 98 000 88 000 89 000 119 000 162 500 Saith 204 000 200 000 142 000 103 000 106 000 123 000 300 000 Caplin 245 000 275 000 221 000 114 000 39 000 72 000 1 740 000 Herring 894 000 602 800 510 000 378 000 255 000 173 000 193 000 1 160 000 1 730 000 1 544 800 1 366 000 1 163 000 944 000 855 000 846 000 3 922 500 Crisp - Egersund 13. og 14. september

Capacity adjustment Vessels Step 1: In an open access fishery internal growth of capacity, new entrants and technological developments lead to overcapacity and depletion of commercial stocks. Step 2: To reduce the economic and social impact of drop in catches and income, governments often introduce different forms of subsidies. The result is reinforcement of the problem – lack of adjustment of capacity and further drop in catches. Step 3: To address the problem in a more efficient way authorities introduce TAC and stop new actors from entering. However, this is often not sufficient to give the remaining actors economic rents. Step 4: Establishing of buy-back programs to give actors incentive to leave the industry. Public involvement often dominate such program in an early stage, but replaced gradually by market places to involve the industry in the decommissioning process. However, technological development will inevitably lead to more efficient vessels and gears giving a continuous need for adjustment of capacity. Step 5: Finally, several of the successful management regimes have chosen to create marketplaces – with various restrictions – leaving the actors themselves to solve this perpetual capacity adjustment challenge. Financial involvement from public authorities, i.e. subsidies and buy-back programs, have become history. In this stage, focus has been on how to construct the market place, i.e. what restrictions are best to balance the societies need for environmental, economic and social sustainability in fisheries. Crisp - Egersund 13. og 14. september

Endring fra 3 til 4 torsketrål: 37 til 22 03.11.2017 Endring fra 3 til 4 torsketrål: 37 til 22 Endring fra 650 til 850 basistonn: Fra 79 til 50 Crisp - Egersund 13. og 14. september

Freezing, fresh fish and fillet trawlers Crisp - Egersund 13. og 14. september

Crisp - Egersund 13. og 14. september

2014; 70m/16m, 3 441 GT, 6 400 kW Crisp - Egersund 13. og 14. september

Capacity development 2002–2014 Trawlers: # vessels: 86 → 36 (-58 %) GT: 85’ → 71’ (-16 %) kW: 214’ → 170’ (-20 %) Avg. vessel charact.: 10m/3m longer/wider (58m/13m) Double GT (2,000 GT) Double engine power (3,500kW) 3 yrs younger than in 2002 (15) Vessel Capacity units: 𝑉𝐶𝑈 𝑖 = 𝑙 𝑖 × 𝑏 𝑖 ×0.45× 𝑘𝑊 𝑖 In 12 years 3 of 5 cod trawlers are out. In the same periode the vessels, and their engines, have doubled in size. Renewal has reduced the average age by 3 years: While built in 1984 in the start of the period, at the end it is 1999. Crisp - Egersund 13. og 14. september

Stormfuglen1966 /42/7,6 m/1800 hk/395 GT Crisp - Egersund 13. og 14. september

Kvannøy 78/15.5 m/2786 GT/4896 Hk Crisp - Egersund 13. og 14. september

Capacity development 2002–2014 Purse seiners: # vessels: 95 → 78 (-18 %) kW 255’ → 288’ (13 %) Avg. vessel charact.: 7/2m longer/wider (66m/13m) 40% more engine power (3,775kW) 17 of the vessels are built after 2012 Vessel Capacity units: 𝑉𝐶𝑈 𝑖 = 𝑙 𝑖 × 𝑏 𝑖 ×0.45× 𝑘𝑊 𝑖 In 12 years 3 of 5 cod trawlers are out. In the same periode the vessels, and their engines, have doubled in size. Renewal has reduced the average age by 3 years: While built in 1984 in the start of the period, at the end it is 1999. Crisp - Egersund 13. og 14. september

Technical or economic capacity Structuring (more quota per trawler) has increased profitability and improved the capacity utilization Despite the vaste reduction in number of vessels (58 %) the fuel consumption is not quite muched reduced (-33 %). And these

Can there also be detected a “green effect”? 03.11.2017 Can there also be detected a “green effect”? Crisp - Egersund 13. og 14. september

Purse seiners Crisp - Egersund 13. og 14. september

Crisp - Egersund 13. og 14. september

Crisp - Egersund 13. og 14. september

Balancing the aims and choosing the tools Future governance: Balancing the aims and choosing the tools Environmental sustainability Social sustainability Economic sustainability Institutional sustainability: Protect ecosystems, assets and society Avoid overfishing Reduce TAC fluctuations Reduce footprint Improve social welfare Allocate TAC Taxation policy Improve financial performance Implement new technology Avoid over-capacity Reduce wasting For the authorities, many goals for the fishing industry must be balanced. First – and perhaps foremost – one must rule so that the resources is managed sustainable. Then, one do not want to waste resources and value added from the sector should be maximised so we need a profitable industry – both for the fishermen and the society as a whole. Third, when acquiring rights to a common resource it is important that the owners (the Norwegian society) find it legitimate. Hence, the reaping of benefits from fishing should be favourable for more than the industry itself – and the benefits should be distributed in a wider manner – for instance in a way with spillover effects in coastal communities. To administer a market based structural scheme, taking all these objectives into consideration, is of course not easy. In Norway, I think it’s safe to conclude that the environmental and economic objectives have been prioritized, which to some degree have crashed against the social objectives. Crisp - Egersund 13. og 14. september