Seven steps to designing catch shares

Step 1 - Define program goals

• Identify the program's biological and ecological goals
• Identify the program's economic goals
• Identify the program's social goals
• Balance trade-offs

Step 2 - Define and quantify the available resource

• Determine which species will be included
• Determine which stocks will be included
• Delineate the spatial range and identify zones
• Determine the allowable catch limit for each species, stock and zone

Step 3 - Define eligible participants

• Decide if the privilege will be allocated to individuals or groups
• Determine who may hold and fish shares
• Establish limits on the concentration of shares
• Determine how new participants will enter the fishery

Step 4 - Define the privilege

• Decide whether the privilege will be species-based or species and area-based
• Determine the tenure length of the privilege
• Define the long-term share
• Determine the annual allocation unit
• Decide if the catch share will be permanently and/or temporarily transferable
• Determine any restrictions on trading and use of shares

Step 5 - Assign the privilege

• Establish a decision-making body for initial allocation
• Determine when allocation will occur
• Establish an appeals process
• Determine who is eligible to receive shares
• Decide whether initial shares will be auctioned or granted
• Determine how many shares eligible recipients will receive
• Identify and gather available data for allocation decisions

Step 6 - Develop administrative systems

• Establish how trading will occur
• Determine how catch accounting will work
• Determine what fishery information is required for science, catch accounting and enforcement
• Determine who covers the program cost

Step 7 - Assess performance and innovate

• Conduct regular program reviews
• Assess performance against goals
• Encourage innovation