Quota-Based Programs
by Jeff Pike
As a former commercial fisherman from Chatham, I shared the
prevailing views of New England fishermen that Individual Transferable Quotas (ITQs) would
nationalize our fisheries (like Atlantic Canada) and lead to corporate ownership of our
fisheries.
Fortunately I had the privilege of working for Congressman
Gerry Studds for 16 years as his fisheries advisor and debating fishery management issues
both nationally and internationally. But it wasn't until I represented independent
fishermen harvesting pollock and cod in the Bering Sea and Gulf of Alaska that I truly
came to realize the benefits of a quota-based program to small boat owners and fish
companies.
There are many breeds of quota-based programs. ITQs are
transferable quota shares awarded to individual vessel owners. Each boat may use, lease,
and sometimes sell its quota. Community-based quotas are awarded to coastal fishing
communities according to their fishing history and participation. Shares of the community
quota are then given to local fishermen based on the criteria established by the
community. Then there are fishery cooperatives, where fishermen are allowed to pool their
quota and work together on harvesting strategies, price negotiations, and other common
interests.
The beauty of cooperatives (which are now well established in
the Alaska pollock fishery) is that they allow fishermen to work together in groups and
regulate themselves much better than government ever possibly could. Fishermen working in
cooperatives can instantly penalize each other for exceeding quota shares, harvesting
non-quota species or other violations of the rules set out in their cooperative agreement.
If government tried to do this it would involve years of public hearings, litigation, and
mounds of regulations.
I have come full circle on quota-based programs because I
believe they are the best way to save the small boat, independent fishermen. Years of
experiences with bad ITQ programs both here and abroad have allowed us to learn how to do
it right! Well-designed quota-based programs designed to meet the needs of the local
fisheries can help ensure that fishing families and communities stay in the business of
fishing. Here are some of the principles I would insist upon for any quota program:
- No foreign ownership of fishing quotas so that American
fishermen retain control of our resources.
- Limits on consolidation so that no one person could own or
control more than two or three percent of the fishery (depending on the fishery).
- A fair allocation process that honors the historical fishing
history and participation of communities and vessels.
- Incentives for fishermen to reduce bycatch of unwanted
species.
- A portion of the annual quota be reserved for young
entry-level fishermen, small boat owners, or crew members who otherwise would not have
quota.
- Only active fishermen may hold fishing quota so that distant
investors won't control our fisheries like assets in a portfolio.
When fishermen know a portion of the harvest is reserved for
them, they don't have to fish in perfect storms or under unwise conditions. If they become
ill or take another job temporarily, they can lease or loan their quota to other
fishermen. And when a fishing fishermen or fishing families no longer use their quota it
should be redistributed to those young apprentice fishermen seeking to make a life at sea.
Whether quota-based programs ever become a reality outside
the Pacific Northwest is anyone's guess. But they can certainly be an effective management
tool that benefits both fish and fishermen, and they should be considered. I for one think
it's high time that the congressional moratorium be lifted so that fishermen and fish
managers can start looking forward at new ideas and concepts instead of looking backwards
at failures of the past.
Jeffrey R. Pike is
director of Government Relations at Sher & Blackwell in Washington, D.C.
