IFQ Program Summary Series No. 3

CANADIAN SEA SCALLOP

Program Adopted in 1986 on a trial basis, made permanent in 1989

Catalogue of IFQ Experience (Offshore Fleet)

Statements of Individuals Involved in the IFQ Program

Union Representative:  Marilyn Crook, Canadian Auto Workers Union (Represents Scallop Crews)  

The enterprise allocation (company quota) system in the Canadian offshore scallop fishery has been better than the old system in terms of conservation and making sure that you have a future to look forward to.  It has definitely rationalized the fleet and reduced the number of jobs, but the jobs are better jobs with a more secure future.  Because of the efficiency, profitability, and security of the enterprise allocation system we have been able to negotiate good contracts with good benefits for the crews.  The enterprise allocation program has enabled the sea scallop fishery to avoid the disaster that befell the local groundfish fleet. 

Fishery Administrator:  Leslie Burke,   Department of Fisheries and Oceans

IQ management is now used in more than half of Canada's fisheries.  The programs provide many benefits for Canadian fishermen.  Generally, crews in these fisheries work longer seasons, are more professional, and earn higher incomes than under the old management system.  The programs were introduced fishery by fishery, usually on an experimental basis with a 2 to 3 year evaluation period. There are no examples where fishermen opted to return to competitive fishing after trying IQ management.  Many critics of IQ systems concede that they deliver good economic results but accuse the programs of having negative environmental outcomes due to monitoring and enforcement problems. Canadian experience suggests that IQ programs have as good or better records than the systems they replace. Once shares are set, the participants are more willing and financially able to co-operate on conservation and management.  It is hard to be green (environmentally) when you are in the red (financially)!  We have experienced a big change in fishermen participation in the management of IQ fisheries. The fishermen provide more and better data, participate in monitoring, in research and stock assessment activities, in policymaking, and in management planning. The most dramatic example is the offshore scallop fishery, which is involved in all these functions.  But in addition, this group, working in co-operation with government departments, has invested in the collection of data to produce maps of the seabed which contain not only water depth and bottom shape but also the bottom type and habitat information on the plants and animals which live there.  Fishing time and related operating costs have been reduced by about two-thirds as has the impact and disturbance of the bottom resulting in a win-win for the fishery and the environment.

Researcher:  Robert Repetto,   Stratus Consulting,

When people talk about ITQs you mostly hear predictions, which are not based on fact, but fear and supposition.  We need to research ITQ programs closely and test these fears against reality, and hopefully narrow the disagreement that exists.  Since 1986 when quota was first allocated for the Canadian offshore scallop fishery, the industry has become more prosperous and fishermen have become more cooperative in management.  From 1986 to 2000 there has been some consolidation from nine firms to seven, but it is important to note that five of the original firms have kept the same percentage of TAC overtime, four firms have exited, and two new firms have entered which together own about one third of the quota.  Overall employment has declined slightly, but the Canadian union that represents many of the scallop fishermen supports the EA system over a return to competitive fishing, favoring steady jobs over a larger part-time or insecure workforce.

Fishery Administrator:  Steve Smith, Department of Fisheries and Oceans  

The inshore scallop fishery in Canada has three types of licenses, and one of these, the Full-bay license, has been managed under an Individual Quota system since 1997.  There was resistance by the Full-Bay fishermen to the IQ system at first but most are in favor of it now.  They like the flexibility it gives them, but some are upset about "armchair fishermen" that are leasing out their quota and making money without even fishing.  Recently, the Full-Bay fishermen have purchased satellite systems for position tracking by DFO, which will help with management and science.  From a science point of view, I am most concerned with the data.  In order to have an effective IQ program, the system depends heavily on good science, and we have been trying to improve our data collection and databases significantly.  Since the IQ program was implemented more fishermen have agreed to purchase satellite boxes and this has helped our research tremendously.  IQs have given fishermen stability, and they now have an incentive to invest and participate in research.

Short Biography for Individuals Who Gave Comments

Marilyn Crook is a union representative for the crews on Canadian sea scallop vessels.  She works for the Canadian Auto Workers Union and can be reached at (902) 634-4821.

Leslie Burke is the Director of Policy and Economics at DFO Maritimes Region.  He has been involved in fisheries management in Canada since 1982.

Email address:  burkel@mar.dfo-mpo.gc.ca

Robert Repetto is considered one of the world’s leading authorities on the economics of sustainable development.  He founded the economics program at the World Resources Institute and directed it for 14 years.  In 1998 he received a Pew Fellowship in Marine Conservation and studied at the Marine Policy center at the Woods Hole Oceanographic Institute, researching the US and Canadian Atlantic Scallop fishery.

Email address:  robert.repetto@yale.edu

Steve Smith has been a research scientist with DFO for 22 years and is currently head of the Molluscan Fisheries section at the Bedford Institute of Oceanography.  He has served on a number of national and international review boards including the US National Academy of Science study boards on Improving Fish Stock Assessments (1997) and Improving the Collection, Management, and Use of Marine Fisheries Data (2000).

Email address:  smithsj@mar.dfo-mpo.gc.ca

Resources:

§         Repetto, Robert. 2001. The Atlantic Sea Scallop Fishery in the US and Canada: A Natural Experiment in Fisheries Management Regimes. Yale School of Forestry & Environmental Studies, Discussion Paper.  Available at: http://www.yale.edu/forestry/publications/repetto/repetto.pdf