Step 5 – Assign the privilege

Assigning the privilege has often been the most difficult and controversial Step of implementing a catch share program. Participants feel that much is at stake in the distribution of catch share privileges and initial allocation sets up the starting point for the program.

5.1 What decision-making body will determine initial allocation?

Different countries have used various decision-makers to determine allocations, including fishery managers, fishery stakeholders and independent third parties. First and foremost, allocation processes must comply with existing law and many countries already have legal requirements or legal precedents regarding the allocation of catch shares.

5.2 When will allocation occur?

Initial allocation can occur at any point in the catch share design process, and in reality, decisions impacting allocation will occur at multiple stages of the process. Conducting allocation upfront may help reduce uncertainty and bolster support.

5.3 Will there be an appeals process?

An appeals process can help ensure fairness in allocation. While they are not, and should not be, a substitute for transparent allocation decisions, an appeals process can address certain issues such as interpretations of regulations or corrections of accounting errors. Employ an allocation appeals process that allows eligible participants to refute allocated amounts with verifiable data.

5.4 Who is eligible to receive shares?

Eligibility can be thought of as two different layers. The first, often a political decision, is determining what categories of stakeholders will be eligible to receive allocation of shares. This is generally driven by social and economic characteristics of your fishery as well as by available data. The second layer of eligibility is determining who within those stakeholder sectors will actually receive shares. Not every participant in an eligible group may be allocated shares.

5.5 Will initial shares be auctioned or granted?

There are two main forms of initial share distribution: auctioning and granting. Auctions require participants to pay for the shares, whereas granting gives the shares free of charge to an identified set of participants at program initiation (although following initial allocation shares are generally purchased). Participants could also be granted a share and be required to pay a set fee.

5.6 How many shares will eligible recipients receive?

If your fishery decides to grant catch shares, then you must develop a protocol for distributing the shares. Fisheries that have opted to grant without fee have used a variety of formulas to determine share holdings. Formulas usually include the use data on catch history, and/or level of investment, or uses equal sharing to divide shares. Within a formula, you can also give variables different weights. Auction systems can also set parameters for participation such as creating classes of eligible participants.

5.7 What data are available for allocation decisions?

What data are available will impact the method of your fishery's initial allocation. If data are very robust, then it will be possible to develop an allocation system that depends heavily on existing, retrievable information. However, if there are few data or the data are inaccurate, alternative methods should be developed.