What happens to the lease income?
Income goes to running the company / servicing the loan – it is agreed that any surplus to be re-invested in purchasing more quota.
How much does it cost to lease quota? How does the cost compare with the same quota on the open market or from a local producer organisation?
All quotas are leased at open market rates and subject to fluctuation depending on supply-demand.
How does the leasing process work? Is there an upfront payment for the quota or is it used first and then paid for?
Quotas leased are paid for upfront before PO sanctions swap or uptake by vessel.
How scheme was initially financed and which organisation handles the finances?
Commercial based loan and company’s own funds raised by corporate and public fundraising activities.
What was the initial cost of scheme?
What benefits do you believe you offer your members that they cannot get on the open market for quota or from a local producer organisation?
Not Applicable as we don’t have members. Only thing offered is increasing the amount of quota potentially available for boats to lease.
Would the number of new entrants be any different if there were no CQS ?
No, due to small amount of quota held. Even if we had more quota we couldn’t guarantee it for new entrants as this would be discriminatory against existing businesses.
Are there instance of members leaving the scheme? If so, why did they leave?
Are members allowed to opt out of the scheme if they feel dissatisfied with the operations of the scheme?
Are there rules that govern membership?
Are there any criteria for qualification to benefit from the scheme?
No, scheme does not operate on a membership basis – anyone can apply to lease quota as advertised in the Fishing News.
What would be the implications for vessels using your scheme if no Community Quota Scheme existed?
At present implications would not be massive due to small amount of quota held.
How have you structured your scheme to comply with EU state aid and competition rules?
Too long to write! Basically – everything is open (all quotas we offer for lease are advertised in Fishing News), transparent and non-discriminatory (by age, location or nationality).
Do you believe Community Quota Scheme fit with the current approach to quota management? Why?
Yes, because quota units are a freely tradable commodity. Such bodies should be supported by the Government as they protect against the worst excesses of an ITQ system (i.e. widespread horizontal and vertical integration).
Are you concerned about other schemes starting up around the country distorting the market in the event of increased tradeability of quota?
Yes a little bit as funding priorities vary considerably around the UK, we think such bodies should only be able to hold quotas that can be fished by the local fleet.
Do you know of any scheme that operates in a similar way in the UK?
Not currently – but if you know of one, please do let us know.
What do you think are the wider impacts of your scheme to the UK fishing industry?
For what do you use the quota held by your organisation?
Leased out to fishermen / vessel owners that apply on a non-discriminatory basis
From where the quota had been obtained?
Purchased from local boats
For what areas of the UK do you hold quota?
ICES Area VII only (i.e. SW waters)
Do you hold quota on dummy licence for the benefit of your membership?
Yes, it is held by Cornish FPO and is subject to a legal agreement
Do you have a target level/share of quota for your scheme?
Ideally, we would like to hold £24m of quota.
How does the quantity of quota held in your community vary before and after the introduction of the scheme? What quantity is held now?
Despite the introduction of the Company overall there is less quota is the community. This is because EU State Aid rules have greatly restricted the Company’s access to money from public bodies.
What is the basis of quota allocation to members of the scheme?
Quota is allocated on a strictly application-only process.
What species (by area) does your scheme hold quota for? Why?
The Company holds quota units that are relevant to the local industry – i.e. fish that are caught in Cornish waters, including cod, hake, anglers and haddock.
When did the scheme come into operation?
The Company was set up in 2000 but didn’t trade in quotas until 2004
Why was the Community Quota Scheme introduced?
Fish quota was being sold outside of Cornwall so it was decided that action needed to be taken to try and reduce the amount of quota being sold out of Cornwall.