LICENSING THE SMALLER COMMERCIAL FISHERIES 121 



4. Where a quota licensing system is introduced to 

 replace a limited-entry system, the Pacific Fisheries 

 Licensing Board (recommended in Chapter 8) should 

 consider appeals from licensees and others who claim, 

 within a short notice period, that the rules determining 

 initial eligibility for quota licences would treat them 

 unfairly. 



For many new quota fisheries, a reserve will need to be 

 set aside to satisfy appeals. Any quota remaining after all 

 appeals have been considered should be added propor- 

 tionately to the initial allocations. 



5. Any portion of the reserve for appeals that remaias 

 unallocated after all appeals have been considered fol- 

 lowing introduction of new quota licences, should be 

 distributed pro rata to all initial quota liceasees in the 

 fishery. 



The procedures set out above should be used to reconcile 

 the selections of areas by those who successfully appeal, 

 where applicable. 



Finally, the Department should obtain the advice and 

 guidance of licensees before implementing new quota 

 systems. 



6. A committee of liceasees should be appointed to 

 advise the DepartnK'nt on the mechanics of imple- 

 menting each quota system and to reconuiK'nd to the 

 Pacific Fisheries IJceasing Board clear guidelines for 

 dealing with appeals fntni initial quota allocations. 



New Licence Allocations 



These rules will govern initial allocations of quota 

 licences in each fishery. In Chapter 8 I proposed the basic 

 framework for a continuing quota licensing system. This 

 involves issuing new 10-year quota licences through com- 

 petitive bidding procedures, with approximately one- 

 tenth of the total allowable catch for a species being allo- 

 cated each year. 



For a transitional period of 10 years following the 

 introduction of each quota licensing system I propose the 

 following special arrangements: 



7. During each year of a 10-year traasitional period fol- 

 lowing the introduction of a quota system to a fishery, 

 the Department should invite licence holders to bid for 

 replacement 10-year quota licences authorizing in 

 total one-tenth of the current allowable catch for the 

 fishery. 



8. During this period licensees should be eligible to bid 

 for the amount of quota they currently hold, and they 

 should be required to relinquish an amount equal to 

 that authorized by any new licence they acquire. 



In certain cases these procedures for allocating initial 

 licences to established fishermen will leave some of the 



allowable catch unallocated. This should be made avail- 

 able as follows: 



9. If, after all initial licensees are provided for under 

 these arrangements, there remaias unallocated allow- 

 able catch in any zone, or the allowable catch is later 

 increased, the surplus sliould be made available under 

 additional 10-year quota licences without restriction 

 on the eligibility of applicants, as follows: 



i) If applicatioas in any year fall short of the unallo- 

 cated allowable catch, applicants should be issued 

 licences for the anxmnt of quota they apply for. 



ii) If applicatioas exceed the surplus allowable 

 catch, new quota licences should be issued 

 through competitive bidding procedures. 



These arrangements should govern surplus allowable 

 catches that are expected to prevail for some time. Tem- 

 porary surpluses resulting from cyclical fluctuations in 

 stock abundance should be provided for through tempo 

 rar> permits. 



As I recommended in Chapter 8, the Department 

 should always have the power to reduce quota allocations 

 in the event of necessary reductions in the total allowable 

 catch, and any such reduction should be proportionately 

 absorbed by quota holders. 



Thus, at the end of the transitional period, the author- 

 ized catch of each quota fishery will be embodied in 

 licences with terms ranging from one to ten years. There- 

 after, new licences can be issued regularly as licences 

 expire and any increa,se in allowable catches can be allo- 

 cated in new licences. As recommended in Chapter 8, 

 anyone would be eligible to bid for quota licences follow- 

 ing the transitional period. 



In Chapter 8 I recommended that responsibility for 

 administering licensing be assigned to a new Pacific Fish- 

 eries Licensing Board, but this agency might not be 

 established in time to implement the changes in licensing 

 fwlicy recommended in this chapter. Accordingly, when I 

 refer to the Department henceforth, it should be under- 

 stood that this is intended to be a reference to the board, 

 once it becomes established. 



For each fishery examined below, I begin with a sketch 

 of the present licensing system and the problems sur- 

 rounding it. This is followed with specific proposals for 

 reform. My recommendations are designed with refer- 

 ence to the Commission's terms of reference and the 

 analysis of regulatory problems and objectives in Chapter 

 7. 



HALIBUT 



During the last few years the organization of the hali- 

 but fishery has deteriorated seriously. The licensing sys- 



