nfcc: national fisheries conservation center

The Positive Benefits of the Halibut and Sablefish IFQ Program
By Arne Fuglvog

A lifelong Alaskan, I have been commercially longlining since 1975. I was a deckhand during the Individual Fishing Quota (IFQ) qualifying years and therefore did not receive any quota shares at initial issuance. I have since purchased quota and bought into the fishery, as well as being a hired skipper.

In my opinion, the Alaskan Halibut and Sablefish IFQ program has been a success to this point. There are more positive benefits then negative effects. As a fisherman in these two fisheries, I believe that the greatest benefits of the program have been:

Conservation of the resource,
Safety at sea,
Improved quality,
Higher ex-vessel prices, and
Higher catch-per-unit-effort.

Conservation of the Resource:

Reduced halibut and sablefish bycatch and discards

Changing from the derby system to IFQs allowed for the retention of both species when IFQ fishing.

Reduced fishing mortality from lost gear

Again, changing from the derby to an IFQ fishery has lowered the estimates of halibut mortality due to lost gear by almost a million pounds of halibut a year.

Reduced bycatch and discards of non-target species

Slowing the fishery down has allowed fishermen to retain and properly handle non-target bycatch species. This has increased the quality and value of these species.

Staying under the Total Allowable Catch (TAC)

Before 1995, both the halibut and sablefish TAC was exceeded in a number of seasons. Since 1995, neither the halibut nor sablefish TAC has been exceeded even once, in any regulatory area.

Safety At Sea

Having the flexibility to choose the time of year, weather, and area to fish, has decreased the loss of vessels and lives, as well as search and rescue cases.

Improved Quality

Switching to an 8-month season has greatly increased the quality of catch, especially for halibut. Now, more than 80% of the halibut goes into the fresh market.

Higher Ex-Vessel Prices

Ex-vessel prices are higher since 1995. This year, as an example, halibut has maintained a price of around $2.50 per pound, and sablefish was more than $4.00 per pound this spring.

Higher Catch-Per-Unit-Effort (CPUE)

Sablefish CPUE increased approximately 30% after IFQs were implemented. Increased CPUE has meant decreased expenses such as fuel, bait, gear, and groceries, relative to inflation.

Clearly, not all of the effects of the Halibut and Sablefish IFQ Program were positive. I will briefly list a few of the negative effects that I have observed:

Net loss of crew jobs,
Initial investment, and
Expense of purchasing quota.

Net Loss of Crew Jobs

There has been a net loss of crew jobs. Even though many deckhands have bought into the program, overall there are fewer jobs. Many of the crewmen fished off vessels that received substantial amounts of IFQs, but reduced crew after implementation.

Initial Investment

Because of the high costs of purchasing IFQs, it takes so much more of an initial investment now to get into the fishery. This cost is spread out by having fewer crewmen or by having crew shares reduced. Both are negative effects.

Expense of Purchasing Quota

Many individuals received small amounts of quota and have sold out. Much of the quota that was purchased early on was by large initial recipients, who had the capital and the collateral. It is still difficult for an initial entrant to find the right quota to purchase, come up with the down-payment, have sufficient collateral and income, and receive financing. The National Marine Fisheries Service's new loan program will help, but many of the small villages in Alaska feel disadvantaged in this process.

I believe that Congress should lift the moratorium on the development of new IFQ programs. I support the National Research Council's recommendation to Congress, that IFQs may not be appropriate in all regions for all fisheries, but they are a useful tool that the regional councils should have at their disposal. There are a number of fisheries that could benefit from an IFQ system. If the moratorium is not lifted, we won't be able to analyze whether an IFQ program would be the best way to rationalize these fisheries.

Arne Fuglvog is president of Petersburg Vessel Owners, and a member of the advisory panel to the North Pacific Fisheries Management Panel, the IFQ implementation team and the International Pacific Halibut Commission Research Advisory Board.