bet365ÀºÇò

Executive Summary

In 2020, the bet365ÀºÇò Government initiated a Quota Management Groups (QMGs) trial to test if QMGs are a suitable alternative to the existing Producer Organisations (POs) in relation to the management of fish quota for bet365ÀºÇò vessels.

The purpose of this report is to evaluate the impact of the QMG trial and recommend next steps in relation to the trial. The evaluation focuses on understanding if the trial has met its goals, whether QMGs have become a suitable alternative to POs, and if there have been any unforeseen consequences of the trial.

With regards to research methodology, the evaluation was conducted through a literature review and a review of fisheries management data (QMG and PO annual reports from 2020-2022). In addition to this, to provide in-depth insights into the QMG trial, interviews were conducted with a range of stakeholders (QMG and PO representatives, fishers, selling fishing agents, and others) operating in the commercial fisheries sector. Overall, 15 semi-structured interviews were conducted for the evaluation.

The literature review showed that there is a lack of publicly available data on the sectoral groups’ management of quota. The central themes in the literature focused on the market management and consolidation of the sector, especially with regards to pelagic operators. There were concerns regarding the potential harmful effects of consolidation that could allow large actors to dominate the market.

A review of fisheries management data suggested in their annual reports that QMGs provide information comparable to that which is provided by POs on similar requirements, and valuable additional information on requirements related specifically to QMGs.

Research interviews suggested that to date the introduction of QMGs had caused a neutral impact on sectoral quota management without substantial changes to how the quota management system operates, therefore, showing that QMGs are a suitable alternative to POs and match POs in many regards.

However, interview participants thought that QMGs, if made permanent, could enable consolidation of the industry with notable future risks. These possible risks can be mitigated within the quota management system. So far there has been no major shift by vessels to leave POs and join existing or create new QMGs. Moreover, the increased competition provided by additional options (QMGs) and narrowing of the reporting responsibilities (facilitated through QMGs) might have positive impacts on the sector.

Other points raised by interview participants concerned the dual system created by the trial where different actors (POs and QMGs) had different reporting requirements, resulting in an uneven playing field. There was a perception from some interviewees that QMGs prioritised their interests (because they were created as private bodies that have been granted sectoral management rights) over benefits for bet365ÀºÇò fishers. This viewpoint was disputed by QMGs who aimed to show wider positive socio-economic impacts created by their businesses in Scotland. Some participants were concerned about the perceived lack of scrutiny within QMGs from their members. In contrast to this, interviews with QMGs showed that members had direct input into daily operation of their businesses.

Overall, this review recommends that the bet365ÀºÇò Government formalises or extends the QMG system in the short-term if there is a planned whole sectoral review in the near future. If the sectoral review is not planned in the near future, the bet365ÀºÇò Government needs to consider potential positive and negative impacts of new QMGs (e.g. accelerated industry consolidation). QMG creation requirements thus require careful consideration before the trial is extended or formalised.