The Scottish Government

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ANNEX C - -EXAMPLES OF THE CURRENT REQUIREMENTS AND PROPOSED SCOTLAND ECONOMIC LINK PROVISION

Changes in licensing rules and provisions

• Time-limited scheme permitting the part use of non-pelagic licences in the introduction of replacement pelagic freezer vessels and vessels holding purse seine licence entitlements will be re-opened, and requirements for notifications of intent will be properly established.

It is the intention that a period of 3 months would apply, from the point that revised implementation arrangements are announced, in which to notify the Marine Directorate of the intention to introduce a new or modified vessel under the special licensing arrangements, and a period of 2 ¹/ ₂ years following the end of the notification period as a deadline for the registration and licensing of the incoming vessel.

It will remain the main provision of these special arrangements that at least 60% of the capacity of the new or modified vessel must be covered by pelagic freezer trawler or purse seine licences, with the balance of up to 40% permitted to be covered by Category A (non-pelagic) licence entitlements. A capacity penalty will only be payable on that part of the capacity which is not covered by pelagic freezer trawler or purse seine licences. That penalty will be 20% and will be payable on both tonnage and engine power (kWs).

• The single licence transfer penalty applying in all transactions across all sectors of the fleet will be withdrawn. The current single licence transfer penalty of 5% will be removed from all transactions involving the placement of a single licence entitlement.
• The licence disaggregation arrangements will be more flexible to permit maximum use of available licence capacity, including the ability to use a disaggregated licence in a licence aggregation. Any residual balance will remain valid for the similar period afforded to licence entitlements.

The greater flexibility in the use of a disaggregated, or split, licence will allow component elements to be used either as a single licence placement or in aggregation with an existing licence. In either case, a capacity penalty rate of 10% will be applied against both the tonnage and kilowatts of the disaggregated element. When used in an aggregation, the main base licence will attract the normal aggregation penalty of 5% and the disaggregated element the 10% penalty.

Where entitlements for Beam trawling; Scallop dredging; and Shellfish are attached to the licence to be disaggregated, these entitlements will be permitted to be allocated to be used in one transaction only, either collectively or singly. However, other component elements of the disaggregated licence, not allocated with any of these entitlements, would be able to aggregate with a base licence which does carry any of these entitlements, without the resultant larger licence losing the specific entitlement authority. Fixed Quota Allocation ( FQA) units linked to the licence to be disaggregated will be allowed to be transferred by the present holder, in line with current procedures.

With increased flexibility to license a vessel through the disaggregation arrangements, the facility to allow minor mis-matches on tonnage and kilowatts will not be available in any transaction involving the use of a component entitlement from a disaggregated licence, either as a single licence placement or in aggregation.

• The validity period for unattached licence entitlements will be increased from 3 to 5 years.

All unattached entitlements existing at the time when the new licensing provisions are introduced would have their expiry date increased by 2 years, and new entitlements being established after that point will be made valid for 5 years. The 5 year validity period would also apply to any residual balances from disaggregated licences (recommendation 3) which may be established as entitlements after the new provisions are introduced.

Safeguarding OUR FISHING RIGHTS The Future of quota Management and licensing in Scotland A CONSULTATION PAPER

Example of 'HYBRID' aggregation

Example One - allocation of 'Scallop Dredging' entitlement on disaggregation

Example Two - retention of Shellfish entitlement in 'Hybrid' aggregation

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