What happens when What happens when groundfish stocks are rebuilt?groundfish stocks are rebuilt?

Current FleetCurrent Fleet

• Approximately 1,500 permit holdersApproximately 1,500 permit holders

• Roughly 1,000 active permitsRoughly 1,000 active permits

• Under Amendment 13, allowable days at sea Under Amendment 13, allowable days at sea would be between 28,000 and 41,000 in 2004, would be between 28,000 and 41,000 in 2004, and could be further reduced beyond 2004.and could be further reduced beyond 2004.

Future FleetFuture Fleet

• When stocks are rebuilt, perhaps 60,000 days When stocks are rebuilt, perhaps 60,000 days can be used.can be used.

• This translates into an average of 41 days This translates into an average of 41 days per permitted vessel.per permitted vessel.

How many vessels will $45 How many vessels will $45 million buy?million buy?• The 1500 permits = 1500 small The 1500 permits = 1500 small

businesses each valued differently by businesses each valued differently by ownersowners

• Bids for permit-only buyout ranged from Bids for permit-only buyout ranged from $1400 to $11 million. 245 permits were $1400 to $11 million. 245 permits were sold for an average of $40K sold for an average of $40K

• The 1995 & 1998 buyouts spent $24.4 The 1995 & 1998 buyouts spent $24.4 million for 79 vessels and 463 federal million for 79 vessels and 463 federal permitspermits

Priorities for the buyoutPriorities for the buyout• Seek active multispecies vessels?Seek active multispecies vessels?

• Will a boat with only 10 multispecies DAS Will a boat with only 10 multispecies DAS but actively working lobster have a lower but actively working lobster have a lower value than boats with higher multispecies value than boats with higher multispecies DAS?DAS?

• Because the industry would be designing Because the industry would be designing the program, can select for specific the program, can select for specific characteristics or values & choose the characteristics or values & choose the optimal size or structure of the fleet.optimal size or structure of the fleet.

Restructuring the FleetRestructuring the Fleet

• Smaller fleet would allow each vessel more fishing Smaller fleet would allow each vessel more fishing daysdays

• 300 active vessels could each fish 200 days per year.300 active vessels could each fish 200 days per year.

• 400 active vessels could each fish 150 days per year400 active vessels could each fish 150 days per year

• 500 active vessels could each fish 120 days per year500 active vessels could each fish 120 days per year

• 600 active vessels could each fish 100 days per year600 active vessels could each fish 100 days per year