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Ecological Aspect Of Fishing Essay

2360 words - 10 pages

PROPERTY RIGHTS REARRANGEMENT FOR SCALLOP FISHERY SUSTAINABILITY

Terms of Reference
This paper seeks to review how a property rights rearrangement can ensure scallop fishery is harvested at a sustainable level in New Zealand. An explanation behind the rationale behind the use of individual transferable quota will be given as well as an overview on the subject. An outline of the difficulties that authorities might expect to incur when setting up and managing an individual transferable quota will be undertaken as well as strategies that can be used to avoid or solve these difficulties.
Terms: Self-governance, ITQ, OMS, transaction costs
Executive Summary
This paper addresses the ...view middle of the document...

When compared to the regulatory approach the ITQ system can be seen to offer more benefits as well as a greater degree of latitude for involved parties. In addition to this, the flexibility that the ITQ system enjoys is opposite from the results of a regulatory approach. The global industry standard for fisheries is increasingly becoming ITQ based.
List of figures and tables
Diagram 1 – Diagrammatical representation of the use of property rights in fisheries management.
Diagram 2- Graphical representation of total New Zealand catch of fish 1890 – 2000.

Setting the Scene
Fisheries management involves trade-offs between generally conflicting biological, economic, and social objectives. It is rare to hear of fisheries where the stocks are sustainably harvested, substantial economic rents are being generated, and participants (and ex-participants) consider the system to be equitable and fair. Ensuring that one generation does not deplete the resources of the next necessitates measures are put in place to successfully manage resources into the future. The ITQ management system has been globally employed and is considered best practice for maximizing potential opportunities currently and into the future.
Economics of ITQ
The effects of overfishing and depletion of resources is a well-known problem worldwide. As Dasgupta (1989) stated, the common nature of the waters and their direct effect on the livelihoods of people are of such paramount importance as to not be understated. Dasgupta also rightly noted that all livelihoods people have come in some way from the land or sea and that this makes matters involving maintaining the on-going integrity of the land a primary concern and one which individuals must bear responsibility in as well as corporations. There are both technical and political reasons why uptake of ITQ management systems have been put in place and which operate to the benefit of all.
Technical
Sustainable collection of scallops in New Zealand is linked to economic opportunity for a few reasons:
A) The normal method of scallop collection is based on dredging the bottom of the ocean to collect all the scallops in the path. This is not a sustainable method as there is no thought to the future collection or if any scallops will be left. ITQ uses hand collection, which can ensure in the long term that there are scallops left and the supply stocks can be renewed.

B) The economic advantage of sustainable harvesting is that it can go on forever, and;

C) Sustainability, by definition, ensures that there are no environmental limitations created by this activity. This provides a secure basis for the social and economic aspects of the activity.

D) Sustainable harvesting through the ITQ system is a means of delivering inter-generational equity.
Under an ITQ system, each participant receives a share of the TAC, and is free to choose when, where, and how to harvest that share. ITQs (in their purest form) are...

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