(Western) Channel Fisheries UK

Finlay Scott, Trevor Hutton, Alyson Little, Aaron Hatcher

cemare

Introduction Introduction • Case study (Beam trawlers – English; sole and

others)• VIIe (assessment, projections)(TAC + X)• SeaFish (two fleets, UK = 0.43)• Profit (both fleets combined)• MFA: enforcement (relationship estimated)

– Enforcement effort (and cost) and X

• Shadow value of biomass (numerical approx)• Social Benefit computed

Data collectionData collection

• General setting ()• Technical characteristics ()• Biological characteristics ()• Socio-economic characteristics ()• Management ( ~ )• Enforcement (~)

Area of study: boundariesArea of study: boundaries

General setting

LandingsLandingsSole (VIIe)

General setting

LandingsLandingsMonk

MegrimPlaice (VIIe&d)

General setting

EffortEffort

General setting

Estimates of FEstimates of FGeneral setting

Landing per unit of effortLanding per unit of effort

Spawning stockSpawning stock

Biological characteristics

Long –term maximum yield (0.24)Long –term maximum yield (0.24)

Biological characteristics~ O.26

Stock recruitment relationshipStock recruitment relationship

Biological characteristics

Management and Enforcement issue (X)Management and Enforcement issue (X)• Over quota (evidence of cod, sole)

• Declaring Sole (VIIe) as sole landed in VIId()

1975 1980 1985 1990 1995 2000 2005

05

00

10

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15

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Year

La

nd

ing

s

Is what is in the hold or quay the same as the paper work

Model: structureModel: structure

Stock(s) Fleets Effort

VIIe SoleCatch

Revenue

Fishing costs

Profit and incomes

Outside VIIe

RevenueStocks in VIIe

Recruitment, growth, natural

mortality

Effort VIIe

Fish prices

Other Catch (outside VIIe)

F ~TAC + x

English Fleets dataEnglish Fleets data• > 221 Kw <30m AND > 221 Kw >30m (Seafish economic data)

• Logbook data

• Average and Total GT, KW, no of boats - cross checked

• Partial catch for each fleet - adjusted for misreporting

• Effort over time in VIIe and outside - hours and days

• Compute partial F, then estimate catchability per fleet (q=F/E)

• Revenue of other stocks in VIIe

• Revenue outside VIIe (assumed to stay constant)

Fleet economic info in the modelFleet economic info in the model• Cost information based on

survey returns from SEAFISH report

• Cost information checked

• Scaled for latest decommissioning

• Cost structures (2005)– Annual costs (£/vessel

average) – fuel costs (per year), other

running costs (convert to £/day for variable costs)

– Crew shares (%), – Capital costs

• No depreciation

• No interest (presented)

• Quota values

UK beam >221kw (<30m)UK beam >221kw (<30m) Table 4.21.1 Segment characteristics in 2004 and 2005 2004 2005 No. of active vessels 38 36 Total power (kW) 18,801 17,990 Total VCU 14,964 14,384 Total GT 4,965 4,755 Total days at sea 7,535 7,457 Total volume catch (live weight) (T) 6,294 5,831 Value of landings (£m) 13.7 14.4

Technical characteristics

UK beam >221kw (>30m)UK beam >221kw (>30m) Table 4.22.1 Segment characteristics in 2004 and 2005 2004 2005 No. of active vessels 10 11 Total power (kW) 8,207 9,400 Total VCU 6,141 6,999 Total GT 2,259 2,661 Total days at sea 2,358 2,395 Total volume catch (live weight) (T) 3,061 2,982 Value of landings (£m) 6.0 6.6

Technical characteristics

UK beam >221kw (<30m)UK beam >221kw (<30m) 2005

Average (£)

% of earnings

Earnings 407,400 100.0% Fishing income 400,700 98.4% Non fishing income 6,700 1.6% Costs Fishing expenses Commission 17,300 4.2% Harbour dues 7,700 1.9% Subscriptions & levies 3,400 0.8% Shore labour 2,000 0.5% Fuel & oil 114,300 28.1% Boxes 0 0.0% Ice 1,900 0.5% Crew travel 4,500 1.1% Food stores 10,000 2.5% Quota leasing 3,700 0.9% Days at sea 0 0.0% Other expenses 10,200 2.5% Crew share 107,900

26.5%

Total fishing expenses1 282,700 69.4% Vessel owner expenses Insurance 29,000 7.1% Repairs 80,900 19.9% Gear 24,700 6.1% Hire and maintenance 5,700 1.4% Other vessel owner expenses 3,600 0.9% Total vessel owner expenses2 140,500 34.5% Total expenses3 422,000 103.6% Net profit4 5 -20,500 -5.0% Depreciation n/a n/a Interest n/a n/a Net profit6 n/a n/a

1 4 5 6 These figures are the average of all vessels and therefore may not be the same as the total of individual items within each of these columns. 5 Net profit before deducting depreciation, interest and taxation 6 Net profit after deducting depreciation and interest, but before taxation

Added up all variable costs And all fixed costs

Economic characteristics

UK beam >221kw (>30m)UK beam >221kw (>30m)

2005 Average

(£) % of

earnings

Earnings 598,900 100.0% Fishing income 598,900 100.0% Non fishing income 0 0.0% Costs Fishing expenses Commission 28,400 4.7% Harbour dues 10,700 1.8% Subscriptions & levies 4,500 0.8% Shore labour 2,000 0.3% Fuel & oil 175,300 29.3% Boxes 0 0.0% Ice 2,600 0.4% Crew travel 6,600 1.1% Food stores 14,400 2.4% Quota leasing 3,600 0.6% Days at sea 0 0.0% Other expenses 12,200 2.0% Crew share 150,000 25.0% Total fishing expenses1 410,400 68.5% Vessel owner expenses Insurance 14,600 2.4% Repairs 150,800 25.2% Gear 37,600 6.3% Hire and maintenance 5,900 1.0% Other vessel owner expenses 11,600 1.9% Total vessel owner expenses2 219,300

36.6%

Total expenses3 624,300 104.2% Net profit4 5 -25,400 -4.2% Depreciation 74,500 12.4% Interest 0 0.0% Net profit6 -40,300

-6.7%

1 4 5 6 These figures are the average of all vessels and therefore may not be the same as the total of individual items within each of these columns. 5 Net profit before deducting depreciation, interest and taxation 6 Net profit after deducting depreciation and interest, but before taxation

Added up all variable costs And all fixed costs

Economic characteristics

Estimates of profitEstimates of profit 221 Kw <30m AND > 221 Kw >30m

• Total Revenue = Revenue VIIe (sole[model] + other in VIIe) + Rev(outside VIIe)

• Cost of effort in VIIe = partial F of sole each fleet / catchability (Catchability = F/E thus E = F/q)

• Total Variable costs = Cost of Effort in VIIe (f(sole F) + outside variable costs

• Total Costs = Total Variable + Total Fixed + 0.25*Tot Rev (crew share)

• Profit = Total Revenue – Total Costs

• All estimated from 2005 data – the base year

EnforcementEnforcement

MFA report (2006)

Enforcement characteristics

Enforcement - activityEnforcement - activityMFA report (2006)

MFA report (2006)

Consider: area with total - estimate costs for case study (requested information)Therefore – awaiting CASE specific data for VIIe Sole and SW-beam trawl fleet (for 2-3 years?)

ASSUMED Enforcement relationshipsASSUMED Enforcement relationships

1975 1980 1985 1990 1995 2000 2005

05

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Year

La

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X = difference between reported and assumed (the mis-reported)

“Standardised” enforcement effort(~?)

Total £11m, assumed fishery max is £2m

0 1Prob of sanction

X

0.6

step 1

step 2

step 3

0.00

0.20

0.40

0.60

0.80

1.00

0.00 0.20 0.40 0.60 0.80 1.00

Enforcement effort

P(s

an

cti

on

)

SSB over time (projections from assessment)SSB over time (projections from assessment)

Catch over time (vary F: TAC + X)Catch over time (vary F: TAC + X)

Ca

tch

(t

onn

es)

Social value versus cost of effortSocial value versus cost of effortIn this case difference in “social value” see Memo 8In this case difference in “social value” see Memo 8

Memo 8 this is termed the “social value”

Social value versus enforcement effortSocial value versus enforcement effort

Same again except plotted against enforcement effort

Social Benefit versus enforcement effortSocial Benefit versus enforcement effort

Are we correct(?) Are we correct(?)

Harvest (tonnes)

Euros per tonne

V is social value

We vary (e) thus x, And compute v and V

NOTE SB is a partial SB (SB of our fleets). A proxy for total SB assuming Others “do the same”

Next steps Next steps

• MFA data required (to be released)

• Include penalty (f)

• Check assumptions and equations

• Sensitivity tests (assumptions about revenue of other stocks and F of other fleets [French and Belgium])

• Uncertainty (recruitment only)

Possible Possible ff values(?) values(?)

No of obs Year Infringement Fine* 1 2007

(infringement – 2006)

Sole mis-reported to VIId

Skipper £1000, £500 court costs (pay it off at £100 per month) Company £7000, £2672

2 2007 Sole over-quota £23900 3 2007 Sole mis-

reported to VIId £25,030 (company) £ 2165

*MAX of £50000 for failing to record the correct location *MAX of £50000 for failing to record the correct quantity

Estimate expected f as a function of over-quota landings

Summary Summary

• Completed model

• Compute indicators

• Update and check all values

• Summarise results