Policy paper

Cornwall community quota trial management plan

Published 4 June 2024

This was published under the 2022 to 2024 Sunak Conservative government

Applies to England

Group information 

Roles 

The group is a partnership between the Cornish Fish Producers Organisation (CFPO), Duchy Fish Quota Company (DFQC) and Cornwall Council. 

Duchy Fish Quota Company (DFQC) 

The Duchy Fish Quota Company (DFQC) provides an independent place to host the quota so that any leasing can take place in line with the rules and ethics of the DFQC. 

DFQC’s aim is to provide affordable quota leasing to vessels providing economic benefit to the Cornish economy. The DFQC quotas are held and managed by the Cornish Fish Producers Organisation (CFPO) according to strict guidelines set down by the Duchy Fish Quota Company board of directors. DFQC operate a fair and transparent system to ensure every fisher is treated equitably. In this trial, the DFQC (with support from Cornwall Council) will manage the financial aspects of the scheme 

CFPO 

CFPO Ltd is a recognised Producer Organisation for the purposes of quota management within the UK system, whilst the Duchy Fish Quota Company Ltd is not. Although the CFPO and DFQC are separate entities, the CFPO holds the fixed quota allocation (FQA) units owned by the DFQC on one of its dummy licenses (no 9024 on FQA register). The annual quota derived from these FQA units is managed by the CFPO on behalf of the DFQC, which includes quota leases/swaps within the CFPO and also possible external quota leases/swaps with boats in other producer organisations (POs) as well as with vessels in the non-sector and under 10m sector. Any additional quota received as part of the trial is ringfenced within the CFPO quota management database for the purposes of the Cornwall FMT scheme.  

Cornwall Council 

Cornwall Council is the largest rural Unitary Authority in England and as part of its remit it is responsible for driving Economic Growth and Development in Cornwall.  One of its objectives is to create “a thriving and sustainable Cornwall that offers a secure home, a decent income and a great environment for all” and its support of this pilot project is designed to help the fishing industry to contribute to this objective. 

At operational level Cornwall Council has worked with the CFPO and the DFQC on the development of the project and has utilised its experience of dealing with various grant schemes to design and develop the scoring system that will be used to assess applications for the additional quota.  Through its involvement in the scoring panel and the decision-making process it will bring independence into the decision-making process to ensure that all applications for additional quota are treated equally irrespective of whether they are from a CFPO member or a non CFPO member.   This will ensure that a fair and transparent scoring system is applied. 

Participating vessels 

The group will advertise the project and begin to develop a vessel list. These vessels be assessed via the scoring system to become a participating vessel.  

The trial will be open to any fishing vessel in Cornwall, including sector and non-sector vessels. The project aims to engage more than 5 participating vessels and the details of these vessels will be confirmed as part of the reporting process.   

Quota management 

Stocks under management as part of trial 

Quota species	Stock code	Total volume
Cod	7B-K	3 tonnes
Sole	7E	15 tonnes
Sole	7FG	0.5 tonnes
Plaice	7DE	20 tonnes
Whiting	7 B-K	25 tonnes
Skates and rays	6&7	60 tonnes
Hake	5, 7, 12, 14	122 tonnes

2.2 Quota allocation 

Vessels can apply for any of the quota listed in the table above and their applications will be graded based on an agreed scoring system. This will determine how quota is distributed to vessels that seek to have access to it. Please see below criteria for what will be assessed as part of the scoring system:    

• Status of applicant – new entrant, experienced fisherman, number of years fishing, vessel owner, skipper
• Vessel size – under 10 metre or over 10 metres 
• Fishing methods – mobile gear / static gear – what efforts are being made to improve selectivity? 
• What quota species and volume are being requested? 
• Fish quality control – is the vessel taking ice to sea, catch handling methods, length of trip – these will allow the project to monitor the quality and price of catch and impact made 
• How profits derived from additional quota (AQ) will be invested into the participating business for example improved safety, reducing carbon emissions for example new engines / propulsion systems 

The scoring system is included as Annex A.  

Quota management process 

Quota is held by the MMO and allocated to each vessel as instructed by the group. Only named individuals included in the management document or other delegated named individuals agreed in writing may instruct the MMO on the allocation of quota to vessels.  

The process for quota allocation depends on whether the vessel is part of the sector or non-sector. 

All vessels 

Quota assigned for the trial will be visible on the MMO’s Weekly Uptake Spreadsheets on a separate line.  

Landings will appear against the individual vessel’s PO/Group, with quota moved from the trial line to cover this activity within the agreed limits.  

Participating vessels should report their landings directly to the trial group administrator. This includes both sector and non-sector participants.  The MMO will also monitor uptake. 

Sector vessels 

Sector vessels participating in the trial will have their landings attributed to their PO for quota management purposes.  

The landings (up to the agreed limits for relevant stocks) will then be covered by transferring quota from the trial line to the PO line via a domestic quota swap.  

When it has been confirmed that a vessel has landed quota against the trial, the relevant PO should submit a domestic swap form to the domestic quota swap inbox QuotaSwap.DQS@marinemanagement.org.uk stating either group 1 or 2 as the ‘Cornish Community Quota Trial’ (Signed by CFPO/DFQC), transferring the quota to their PO. 

The MMO Quota team will process the swap as a normal domestic swap, moving quota from the trial line to the relevant PO quota line.  

All landings by the vessel will be counted against the individual’s PO uptake, including any above allocated trial quota. 

Non-sector vessels 

Non-Sector participants will be assigned quota before they land against it.  

This will be done using the existing quota lease system. However, rather than the quota coming from the PO it will come from the trial line. 

To enable this, the group will submit a domestic swap form to the domestic quota swap inbox QuotaSwap.DQS@marinemanagement.org.uk stating either group 1 ‘10m and under Lease’ or ‘Non-Sector Lease’, or group 2 ‘Cornish Community Quota Trial’. The form will be signed by a representative from the Cornish group. The vessel details should be included in the comments box.  

The MMO Quota team will process the swap as a normal domestic swap, moving quota from the trial line to the relevant quota leasing line. They will also issue a leasing letter via email to the licence holder and Port Office. 

The monitoring and enforcement will be the same as with any quota lease, with activity recorded against the monthly catch limit until reached and then against the trial quota amounts agreed and listed in the leasing letter. 

If a vessel overfishes both monthly catch limit and the additional quota assigned through the trial, it will be investigated by MMO enforcement. 

The trial group should establish a reporting system by non-sector vessels as a condition of lease.  Non-sector vessels should report uptake directly to the trial group administrator. 

2.4Monitoring of uptake 

The group will monitor uptake and other parameters across all participating vessels. In reality the only data the group will have immediate access to is from vessels within CFPO, so reporting of landings and other parameters will take place through agreements with participating vessels’ POs or directly with non-sector participants. Monitoring of landings by other vessels for regulatory purposes will be the responsibility of either the MMO for under 10m or non-sector vessels, or other POs for over 10m Sector vessels. Reporting enables the group to have oversight of outcomes and monitor against objectives.  

Uptake of quota allocated through the scheme will be monitored by the group on a monthly basis. If any do not fish their allocated quota the management of the trial will communicate with the individual and understand any additional barriers or issues they are encountering and seek ways to support them. If no progress is made, then the management of the trial will aim to redistribute the quota and make it available to others in the scheme using the same scoring process before any allocation is made.  

Overfishes may occur by accident or may be intentional. Overfishes are not the responsibility of the group to manage. Any overfish event will be investigated by the group and action taken to remove the participant from the scheme if there is good reason to suspect an overfish was intentional, however the individual’s PO or non-sector quota managers remain responsible for dealing with overfish events. 

Vessels within CFPO 

Within the CFPO, catch limits are managed on a monthly basis. Any additional quota from the scheme would be added to a vessel’s monthly quota allocation and uptake monitored until the additional quota has been fully utilised.  

Within CFPO, individual landings made by vessels are monitored and CFPO can notify members when they are close to quota limits. If there is an overfish then CFPO will follow their standard process is to redistribute quota within the CFPO where possible, as well as following a rule book process with the member.  

Vessels from other POs 

The vessel’s PO monitors uptake by the individual vessel and reports to the Cornish Group for trial monitoring purposes. An agreement including reporting schedule and details will be reached as part of the lease agreement.  

Any overfish is the responsibility of the PO to rectify. The participating vessel’s PO has systems in place to monitor landings and overfishes.  

Non-sector vessels 

The monitoring of landings by vessels in the non-sector pools for regulatory purposes remains with the MMO, however given data sharing complexities, an additional agreement between participating vessels and the group is required and reporting should take place directly between participating non-sector vessels and the group. This ensures the group can monitor uptake and outcomes of the trial measures.   

Landings including overfishes by any under 10m and non-sector boats are subject to monitoring and enforcement by the MMO.  

Additional monitoring 

In order to manage non-CFPO members the trial will set up a working group with an MMO quota team member of staff and Defra representative as appropriate. Quarterly meetings allow data sharing to ensure any additional quote via the trial is managed in accordance with agreements and enables changes to be discussed where required.  

Separate meetings will be arranged between the group and any business that takes part in the trial to monitor other impacts and outcomes from this work, such as training and marketing.  

Quota exchanges 

Both domestic and international swaps may be required to maximise the benefits of this trial.  

Swapping enables the group to be flexible, both in relation to environmental factors and to fishers’ demands for particular stocks. Enabling use of the domestic and international mechanism reduces the risk of underfishes in some stocks, as predictions of stocks of interest to fishers in Cornwall has been made in advance of the trial commencing.  

This trial scheme is not dependent upon having access to specific stocks, rather it relies on having any quota that is desirable to fishers in Cornwall. As desirable quota may change depending on various factors, enabling flexibility assists the trial in achieving its objectives. 

Swaps will be put forward and completed by the MMO, following the package being arranged in principle by the group. Additional restrictions on use of the mechanism may be necessary and swaps using trial quota will be published by the MMO alongside non-sector swaps to increase transparency. 

Quota changes 

Future requirements for quota will take into account variables affecting supply and demand including total allowable catch (TAC) changes. Agreement will be reached before the start of the subsequent fishing year. 

Aims and objectives 

The group have aims they are looking to work towards each year. Monitoring will take place to measure progress towards these aims. 

Year 1 

• Supporting new entrants in overcoming the financial barriers of accessing quota 
• Offering an enhanced level of support to access additional quota for those working more selective gears that are above and beyond current regulations for example larger mesh size 
• Develop and action a scoring system will favour those seeking to enhance the quality of the fish and shellfish they are landing 

Year 2 

• Vessel owners engaged in the project recruiting new crew members to support the increased fishing opportunity made available through this project 
• Vessel owners making investment into new and more selective gear types to access additional quota 
• Improving business resilience with additional quota and profit made from it  
• Project leaders generating income from leasing quota to participants which will be utilised to support year 3 objectives for example marketing of pilot project and training for target audience 
• Utilise funds generated through year 1 to develop career progression training opportunities for new entrants and new generation fishermen 

Year 3 

• Supporting one, or a number of, individuals with a transition from under 10m vessel towards over 10 metre vessels
• Encouraging and enabling investment to modernise existing vessels enhancing onboard health, safety and wellbeing conditions 
• Vessel owners making investment into new and more selective gear types to access additional quota 
• Improving business resilience with additional quota and profit made from it  
• Maintaining the size and diversity of the fleet 
• Support independent skippers 

Trial activities and management  

Training 

The CFPO and Cornwall and Isles of Scilly Local Economic Partnership recently published a new fishing and seafood strategy for Cornwall (2021). This document identifies the recruitment and retention of people as a key pillar and ensures the industry attracts, develops, and retains crews and onshore workers across the supply chain. Therefore, this project can target support and funds towards retaining and developing the current catch sector workforce, which in turn will deliver the following: 

• Plug a skills and qualification gap  
• Improve career progression and retention in the industry 
• Broadening the talent pool of individuals operating within the catching sector of the Cornish fishing industry  

Funds generated by this pilot will be used to address this part of the strategy. Funds will be used to support individuals seeking to take higher level qualifications, such as a Class 2 skipper’s ticket. The course runs for 12 weeks and is comprised of the following: 

The Class 2 qualification will also improve the safety of the vessels and crew working onboard, as higher-level qualifications will build experience and safe working. The qualification consists of the following: 

• 002-61 – Navigation 
• 002-62 – Chartwork and Pilotage 
• 002-63 – Meteorology 
• 002-64 – Safety and Management (including Ship Stability) 

Maritime and Coastguard Agency (MCA) Signals 

Seafish currently cover the course costs, but one of the other major barriers is the ability for an individual to not earn for 12 weeks. Therefore, the group propose that funds will be targeted to cover lost earnings, travel, accommodation, and subsistence, as the ability for an individual to take 12 weeks away from earning at sea will remain the main barrier to building the future qualified workforce within the fishing industry.  

To add to the recruitment and retention challenges the industry is facing, the MCA are also introducing stricter regulations to improve the health and safety of the catching sector. This is both targeted at the safety and stability of fishing vessels and focuses on the skills and qualifications of those working onboard with increased requirements for higher level qualifications onboard fishing vessels. With the increased demands from the MCA, the industry needs to build a higher qualified workforce, which this project sets out to do.  

Further to this, the average age of the current workforce is late 50s (Fishing for a Future report - Seafarers Charity). Although this age group brings a lot of experience, there is a real shortage of younger people entering the industry and those obtaining higher-level qualifications. If this issue is not addressed, then the risk is that in 5-10 years’ time there will be a total shortage of qualified skippers (Cornish Fish Producers’ Organisation Fishing Strategy, 2021). If there are not enough qualified skippers for the current vessels, this will have major knock-on effects on the industry, as without boats going to sea, it quickly ricochets down the supply chain.  

The development of this project and the subsequent monitoring and evaluation can create valuable knowledge relevant to ports across the UK, with suggestions and learnings about how the industry can plug the skills gap nationally.  

Marketing 

The focus will be to support recruitment and retention of people and encourage career progression.  

Some funds and resource will be targeted at marketing, but this will be to promote the pilot as well as the outputs that are generated to encourage others to participate.  

Penalties and control measures 

The CFPO has a rulebook process for any overfishing incident: 

• Assessment of and communication with member on options to address the overshoot (for example swap, lease, flex options, reallocation of landings where permitted) to resolve it
• Pursue selected options accordingly
• In the case of an alleged overshoot breach that remains unresolved the member will be issued a notice in writing of the breach

• Any member in breach of the Rules shall without prejudice to any claim which the Organisation may have against that member be liable at the sole discretion of the Board to:  

• pay the Organisation a compensatory payment not exceeding £5,000 for each such breach; and/or: 
• have forfeited an amount not exceeding the sum equivalent to the proceeds of any sales of fish derived from and/or relative to such breach of the Rules. 

Recognising that the trial is also open to non-CFPO members, the group would create a similar set of rules and expectation for anyone participating in this scheme. With sensible management and regular communication, the scheme would do all it can to avoid any overfishing. 

Finance and funding 

The group are committed to making the operation of this scheme self-financing and if possible, to generate funds that can be ploughed back into developing the sector through training, marketing and product development.  

Applicants will pay to lease the quota at a value lower than market rate. Income from leasing will be used in the following areas:  

• Project management, monitoring and reporting 
• Administering the application and scoring process 
• Marketing and promotion to encourage participation in the trial 
• Training

Annex A - Additional quota pilot : Scoring 

Introduction 

In order to assess whether an application will deliver sufficient benefit to be supported, the proposed application should be judged against the assessment criteria below.  

The scoring process looks at four criteria; Social, Environmental, Economic and Community as well as the ability to deliver. 

All applications must contribute to the criteria outlined above and support the delivery of the 2021 Cornwall Fisheries Strategy. Applications should not progress if they do not support these criteria or strategy. The CFPO will ensure that when processing applications they are making appropriate due diligence checks against applications.  

Scoring  

When assessing any application against the scoring criteria, only the additional quota request can be scored rather than the wider activity of the applicant business.  

The appropriate score should be circled for each criterion and the scores totalled up at the end to provide an aggregate score. 

Each criterion has been equally weighted. 

• a) Social objective
• b) Environmental objective  
• c) Economic objective  
• d) Community objective  
• e) Ability to deliver   

Decisions 

Applications will be selected based on their overall scores with those achieving the highest scores being elected ahead of those achieving lower scores.  Whilst there is no minimum score for approval quota will be allocated to the highest scoring applications first. This will ensure that all projects deliver a meaningful and worthwhile outcome .  

This scoring template should be used by: 

• The project steering group to make the final decision on which applications to fund  

Essential criteria 

Does the application support one or more of the objectives of the additional quota pilot? (Must answer yes for project to proceed) 

Y N 

Number of objectives delivered 

Objective	Number
Contribution to 75% or more the objectives of the pilot	3
Contribution to 50% to 75% of the objectives of the pilot	2
Contribution to less than 50% of the objectives of the pilot	1

Total =  

Scoring criteria 

a) Social objective 

Will the application deliver the social objectives of encouraging and enabling new entrants into the fishing industry and/or progression of existing businesses to enable them to grow their business. 

Projects should be marked depending on:  

• Status of applicant – new entrant, experienced skipper, number of years fishing, vessel owner, skipper. 
• Vessel size – under 10 metre or over 10 metres 

Objective	Number
New entrant (has been operating own vessel in the under 10m fleet for less than 3 years)	3
Existing skipper progressing to a larger boat within the under 10m fleet	2
Existing skipper in the under 10m fleet progressing to a larger boat in the over 10m fleet	1

Total = 

b) Environmental objectives  

This includes offering preferential access and an enhanced level of support to access additional quota for those working more selective gears that are above and beyond current regulations for example larger mesh size.  Applicants will therefore have to specify details on the following in their application:- 

Objective	Number
New entrant (has been operating own vessel for less than 3 years)	3
Progressing to a larger boat in the under 10m fleet	2
Progressing to a larger boat in the over 10m fleet	1

Objective	Number
Hand lines and other forms of very selective gear	3
Fishing gear that are above and beyond current regulations for example larger mesh sizes	2
Fishing gear that meets current regulations	1

Total =  

c) Economic objective  

This includes demonstrating that applications will target and support those operators that are implementing measures that will increase the quality and/or value of fish and shellfish and that will deliver increased economic outcomes via additional sales, employment, etc.  

Objective	Number
Additional sales and employment	3
Additional sales or employment	2
Maintaining existing sales and/or  employment	1

Total =  

d) Community objective  

This includes demonstrating that the application will maintain and enhance the size and diversity of the fleet and the skippers and crew that operate within it.  

Objective	Number
Enable a skipper/employees to move to fishing as their primary source of income	3
Increase the proportion of income derived from the fishing sector	2
Maintain the proportion of income derived from fishing at current levels	1

Total =  

e) Ability to deliver  

This includes demonstrating that the applicant is able to utilise the additional quota, has the equipment and qualifications/experience necessary to use the additional quota to help start/grow their business. 

Objective	Number
Applicant already has access to a fishing vessel, all the equipment required and the necessary training/qualifications required to utilise the Additional quota	3
Applicant has access to a fishing vessel, has plans in place to purchase/secure all the equipment required and is in the process of acquiring the necessary training/qualifications required to utilise the Additional Quota within the next 6 months	2
Applicant does not have access to a fishing vessel, all the equipment required and has yet to secure the necessary training/qualifications required to utilise the Additional Quota so will be unable to deliver for at least 6 months	1

Total =  

Overall score =           out of a possible 21