1. ITQ system in the Estonian pelagic fishery Ain Soome Head of Fishery Economics Department Ministry of Agriculture 26.11.2014

2. 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

3. 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)

4. 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

5. Example of the calculation the share and fishing possibilities of the entrepreneures Division of fishing possibilities of 100 tonnes of Sprat for 2015 Entrepreneur201220132014SUM Calculation of shareShareQuota for 2015 A5551515/1050,1429100*0,1429=14,29 B10 3030/1050,2857100*0,2857=28,57 C20 6060/1050,5714100*0,5714=57,14 TOTAL 105 1100

6. 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

7. 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

8. Reduction of fishing capacity in the Estonian Baltic Sea trawling sector Year20002004 Reduction % compared 20002014 Reduction % compared 2004 Scraping in 2004-2014 Reduction without scraping compared 2004 Number of vessels1891531935775994 Total power (KW)3328326594209101661278513809 Total gross tonnage (GT)13059101882233396751145074

9. Thank you Ain Soome ain.soome@agri.ee