Significant problems have emerged in the design and implementation of ITQ systems both in Australia and worldwide. For example, although ITQs were introduced more than five years ago in the South East Fishery (SEF) there is continuing dissatisfaction with the scheme. A recent review by the South East Fishery Adjustment Working Group (1996) pointed out that 'the implementation process from boat units to Individual Transferable Quotas (ITQs) was appallingly handled ...'; and that 'since 1992 there have been at least eight internal or public reviews into various aspects of the SEF, as well as several litigation and AAT decisions'.
Similar difficulties with the implementation of ITQs have been experienced in state managed fisheries. A current example is the proposed introduction of ITQs in the Tasmanian crayfish fishery. This proposal has met with significant industry resistance which has resulted in the announcement of a review by the Tasmanian Legislative Council Select Committee. Overseas fisheries have suffered similar problems. For example, the ITQ system introduced into the Canadian halibut fishery has been sucessfully challenged in court with respect to the approach taken to allocation.
A number of the problems experienced to date, such as ineffective and costly monitoring, discarding and dissatisfaction with allocations can be related to the improper design and implementation of ITQ systems as opposed to difficulties intrinsic to ITQs.
Despite the above mentioned difficulties in implementing and operating ITQ systems, there is a strong and growing focus on the use of these management instruments. If implementation mistakes of the past are not to be repeated, a compilation of the practical experiences of ITQs and analysis of the operational difficulties experienced would be useful. What is needed is a non-theoretical, easily understood, operational guide to ITQs.
References
South East Fishery Adjustment Working Group (1996), 'Report to the Minister of Resources and Energy of the South East Fishery Adjustment Working Group', Canberra.
Final report
Dissatisfaction with the results of input control based management has led to an increasing worldwide interest in the use of output controls, such as individual transferable quotas (FTQs). Individual transferable quotas involve setting a total allowable catch (TAC) for a given fish stock and allocating a share of the TAC to each of the various participants within the fishery. However, significant problems have emerged in the design and implementation of ITQ systems.
Given the strong and growing focus on ITQs as an alternative to effort controls, prevention of the FTQ implementation mistakes of the past is therefore extremely important. This project was designed to address this need by reviewing the practical experiences of FTQs, analysing the operational difficulties encountered when implementing ITQs and compiling a non-theoretical, easily understood operational guide to ITQs targeted at those directly involved in implementing ITQ regimes: fishery managers and the fishing industry.
The methods used to carry out the research included a review of Australian and international literature on ITQ implementation, semi-stmctured interviews with fishery managers in AFMA and state fisheries management agencies, discussions with industry on their experiences with ITQs, active participation in the process of introducing ITQs and information gathering from fisheries managers and economists working in Canada, Iceland, Norway, New Zealand and the United States.
