Assessment of the Implementation of Individual Transferable Quotas in New Zealand's Inshore Fishery

Abstract

In 1986, New Zealand implemented an individual transferable quota system (ITQ) for selected inshore fish species to promote conservation of stocks and to improve the economic efficiency of the fishing industry. The objectives of this study were to assess perceived problems and benefits of this new system and its effect on the fishing industry. Data were obtained through interviews with 62 industry participants from the Auckland region and 14 Ministry of Agriculture and Fisheries staff. Over 75% of the fishermen were making significant changes in their business because of ITQs. These changes included minimization of costs and maximization of price received for their catch, practices consistent with economic theory about ITQs. Industry and management agency interviewees generally recognized ITQ benefits of reduced competition, resource conservation, increased retirement security, reduced economic risk, possession of a valuable asset, improved ability to plan, and the professionalization of fishing. Problems with the system included discarding of catches not included in an individual's quota, discarding of the lower-priced portion of catches of some species, enforcement, accuracy of total allowable catch quotas, quota aggregation by companies, and high cost to youths interested in entering the fishery. After 6 months under ITQs, 56% of the fishermen and 100% of the agency staff interviewed felt this new system of managing fisheries would be successful.