The Danish Fisheries Agency identified an error in how they were calculating quota concentration
The Danish Fisheries Agency is now changing the way fishermen’s quota concentration is calculated after an error has been identified in the method previously used.
The rules for quota concentration regulate the maximum share that each fisherman is allowed to own of each quota – the so-called quota concentration ceilings. The rules are intended to ensure that quota shares are not concentrated to a small number of holders.
Until now, the Danish Fisheries Agency has calculated quota concentration for each fisherman based on the assumption that 1,000 quota shares (1000 parts per thousand) are allocated for each quota.
However, this calculation assumption has been found not to correspond to the agency’s actual allocation of quota shares. This is partly due to some fishermen having had their quota shares adjusted as a result of complaints and other matters related to the allocation of quota shares in 2007. Therefore, the agency has allocated either more or less than 1,000 quota shares for a number of fish quotas.
The calculation method is now being adjusted to consider the number of quota shares allocated to each quota.
The Danish Fisheries Agency is currently assessing the extent and consequences of the incorrect calculations. In this regard, the agency has found that, as a result of the incorrect calculations, there are fishermen who exceed the quota concentration ceilings without being aware of it.
The error is expected to only affect a few fishermen. To ensure that no fishermen are affected by the error, the Danish Fisheries Agency will grant exemptions from the provisions of the regulatory order regarding quota concentration ceilings for fishermen who currently unintentionally own quota shares exceeding the ceilings.
The Danish Fisheries Agency will also assess whether there is a basis for reopening already settled cases. The review will commence immediately and is expected to be completed by the end of 2023. It should be noted that individual fishermen also have the option to contact the agency if they believe they have been affected by the agency’s previous calculation method.
Nanna Møller, Director of the Danish Fisheries Agency, stated:
“Unfortunately, there have been errors in the basis for calculating quota concentration. We are now correcting this by changing the calculation method. Additionally, we are granting exemptions from the provisions of the regulatory order regarding quota concentration ceilings, which means that fishermen who, according to the new calculations, will exceed the ceilings, will not be affected by the error. Finally, we are examining whether there is a basis for reopening already settled cases.”
Facts about quota concentration:
The rules on quota concentration are outlined in Chapter 6 of Order No. 1586 of December 22, 2022, as amended by Order No. 28 of January 10, 2023, on the regulation of fishing (the regulatory order). The rules set limits on the number of quota shares an individual fisherman may own.
Quotas have been established for most fish stocks, and these quotas are allocated for various purposes. The majority of the quota is distributed to fishermen through quota shares.
To prevent the concentration of quota shares in too few fishermen, ceilings have been introduced on the number of quota shares a fisherman may own, known as quota concentration ceilings.
The error has been identified in the method itself for calculating each fisherman’s quota concentration.
Source: Press Release