Step 3 – Define eligible participants

In completing this Step, you will identify the parameters for participation in the catch share program. This will govern the ways in which current and future shareholders are permitted to operate within the program.

3.1 Will the privilege be allocated to individuals or groups?

Catch shares allocate a secure portion of the allowable catch to a privilege holder. The choice of privilege holder can range from individuals to groups, independent businesses to communities. About 90% of catch share programs worldwide are individually-allocated systems. Group-allocated catch shares are more common when the goal of the catch share is to promote or benefit a specified group of participants.

3.2 Who is allowed to hold and fish shares?

Establishing criteria and rules for eligible shareholders has often been important to participants and managers. Generally, criteria are identified to accommodate existing fishery participants, encourage fairness, and promote a particular characteristic of the fishery in the short and long-term – such as an owner-operated fleet. It is also possible to allow crew, skippers, processors and others to hold and fish shares.

3.3 Will there be limits on the concentration of shares?

Most fisheries that have transitioned to catch shares were overcapitalized prior to implementation. Overcapitalization is a natural outcome of traditional fishery management approaches and is often the source of many problems in the fishery and reducing overcapitalization is often a primary goal of catch share programs. Despite this, many stakeholders want to prevent “excessive” concentration and support a minimum number of fishery participants. Concentration limits can do this by specifying a limit on what percentage of the share any one participant or entity can hold and/or fish

3.4 How will new participants enter the fishery?

It is vital to think about program longevity and transfer to the next generation of participants while designing a catch share program. Significant attention is paid to current participants during the initial allocation of shares, but any successful program will depend on introducing new shareholders over time. It is important to develop mechanisms for accommodating new entrants during the design of the catch share program and prior to initial share allocation.