Fish or Cut Bait!

The Case for Individual Transferable Quotas in the Salmon Fishery

Contact:

Laura Jones, Director of Environmental Studies
The Fraser Institute, (604) 714-4547, Email: lauraj@fraserinstitute.ca

Release Date: 1 August 1997

Vancouver, BC>>> The real problem facing B.C.'s salmon industry is not over-fishing or low profitability or even the Americans. The real problem is that salmon allocation and management decisions are made in the political arena and not in the market place, according to a book released today by the Fraser Institute.

The authors of Fish or Cut Bait! The Case for Individual Transferable Quotas in the Salmon Fishery of British Columbia argue that the salmon fishery in British Columbia would operate better under a system of Individual Transferable Quotas (ITQs) where fishermen are given a share of the Total Allowable Catch (TAC) before the fish are caught.

"If the Pacific salmon are not to go the way of the Atlantic cod, it is time for change. It is time to implement ITQs," said Laura Jones, Environment Economist at the Fraser Institute and co-editor of the book. "The Department of Fisheries and Oceans' salmon management to date has focused on trying to control the number of fish caught through license limitation, fishing area and time restrictions. This type of management has been a failure in terms of conserving fish stocks and maximizing the value of the resource -- two of DFO's most important goals."

Although Fish or Cut Bait! specifically addresses salmon management, it has much broader applications. "If quotas can work for salmon, the most complex fishery, they can work for any species," said Jones. The roe herring fishery is another example of a Pacific fishery that desperately needs better management. In the 1997 season, the total allowable catch was exceeded by more than 100% on the central coast. In fact, the coast-wide total allowable catch for herring has been exceeded every year since 1989. In order to control the catch, seasons have become very short. So short that some fishermen this year could not get their fish processed before the fish started to rot. As one fisherman put it: "Is there a crazier way to manage fisheries?"

"If the Department of Fisheries and Oceans adopted ITQs for herring, there is no doubt that conservation and economic viability in that fishery would improve," added Jones. In addition, the authors of Fish or Cut Bait! argue that ITQs can solve allocation disputes. Tom McClurg of New Zealand explains: "One of the consequences of the application of a rights-based approach to fisheries management is that it has a ripple effect through fisheries users. The clarification of the rights of one sector soon compels the examination of the rights and claims of other sectors."

The recent altercation with the Americans illustrates the importance of clarifying property rights in the salmon fishery. Ms. Jones predicts the fish wars in B.C. will continue to flare until property rights are allocated. "ITQs would eliminate the current highly political fight over fishing rights. Once an initial quota allocation has been made, there is a market mechanism to resolve disputes between Americans and Canadians, and to resolve disputes between Canadian sports, commercial, and aboriginal fisheries. While these battles continue to be fought in the political arena, conservation goals will continue to suffer."

Fish or Cut Bait! offers a real solution to the problems facing the salmon fishery. Fishermen, fisheries managers and academics make a practical case for adopting a management system that has been used successfully in New Zealand, Iceland and the B.C. halibut fishery.

Established in 1974, The Fraser Institute is an independent public policy organization based in Vancouver.

For further information contact:

Suzanne Walters, Director of Communications,
The Fraser Institute, (604) 714-4582,
Email suzannew@fraserinstitute.ca

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