Step 4 – Define the privilege

This Step requires you to define the privilege and its main attributes. Many of these decisions will determine ongoing management of the program, as well as the stability and flexibility participants will have under the program.

4.1 Will the privilege be species-based or species and area-based?

Catch shares can be either species-based or species and area-based. Under species-based catch shares, a total amount of allowable catch, i.e., a catch limit, is identified and the privileges conferred to participants relate to the amount of fish each entity is allowed to catch. Species and area-based catch shares, commonly called Territorial Use Rights for Fishing (TURFs), also allocate a specific area to either a group or an individual. Over 90% of the catch share programs worldwide are species-based. However, nearly 20% of the species under catch shares are in species and area-based programs.

4.2 For how long will the privilege be allocated?

In a catch share program, there are a limited number of shares that equal the catch limit: Catch share programs allocate a secure share of the catch via weight or percentage shares, rather than the opportunity to compete with other fishermen for catch. Shares should be allocated for sufficient length to encourage stewardship and appropriate investment by shareholders and associated industries. This can be achieved by allocating in perpetuity and/or for significant periods of time with a strong assumption of renewal, provided rules are adhered to.

4.3 How is the long-term share defined?

The long-term share generally falls into two broad categories, either a percentage of the overall catch limit or an absolute weight measurement. In the case of an area-based catch share with a catch limit, the unit of allocation will be one of these approaches as well as a secure area of exclusive access. Percentage shares of the overall cap are preferable to absolute weight units.

4.4 What will the annual allocation unit be?

Most catch share programs differentiate between the long-term privilege and the annual catch allocation. The annual allocation is the measurement of the seasonal allocation that is issued to privilege holders and is computed based on their long-term share. The allocation can be expressed in weights or numbers. Either can be effective, but the measurement used must be verifiable and enforceable.

4.5 Will the privilege be permanently and/or temporarily transferable?

When privileges are transferable, participants are allowed to buy and sell shares, either permanently or temporarily, or both. Transferability increases flexibility in the program and can enhance economic and biological goals, especially reducing overcapitalization and increasing fishery value. Allowing transfers, either permanent or temporary, is also the easiest way to provide access future participants. Eighty percent of catch share programs worldwide are transferable.

4.6 Will there be restrictions on trading and use of shares?

You can limit the selling, buying and leasing of shares in a variety of ways. Limitations generally fall into three broad categories: geographic trading limits, based on either biological or social boundaries; social trading limits, based on community or fleet characteristics; and administrative trading limits, based on the management of share trading, including timing.