Appendix 1: Summary of Proposed Guidelines for Setting Deemed Values 2006

Aim

To set a deemed value rate as close above the price of ACE as possible, to encourage fishers to balance catch through the purchase of ACE rather than the payment of deemed values.

When is a deemed value reviewed?

(1) When a fish stock enters the QMS.

(2) If one of the following indicators listed below is met:

• Catch is in excess of a TACC
• Deemed Value payments paid in the previous fishing year but ACE remained untraded
• Changes to the port price of the stock

And

Following an environmental scan of the fishery to analyse and assess:

• TACC adjustments in recent years
• Significant changes in the structure of quota/ACE holdings
• Changes in the structure of the market for the fish product.

How are deemed values set?

Standard process for all fish stocks apart from those categorised as high value fishstocks.

High value fishstocks

For the purpose of setting deemed value guidelines high value fish stocks are:

• High value to the commercial sector
• High value shared fisheries

Information sources used

Deemed values set following analysis of the following information sources

1. Port price
2. ACE trading price
3. Export prices (where appropriate)
4. Bycatch ratios (where appropriate)
5. Review of previous deemed value payments.

Annual deemed values

• High value to the commercial sector - set at 200% of the highest port price
• High value shared fisheries – Set significantly above the ACE price that would exist if the TACC was constraining catch.

Interim deemed values

Greater flexibility in setting interim deemed value rates. Interim deemed values will not be set at 50% of the annual deemed value as standard.

Differential deemed values

Differential deemed values not set as standard.

All other Fish stocks

Deemed values set using the following criteria:

Information sources used

Deemed values set following analysis of the following information sources

1. Port price
2. ACE trading price
3. Export prices (where appropriate)
4. Bycatch ratios (where appropriate)
5. Review of previous deemed value payments.

Annual deemed values

Annual deemed value set above the ACE price that would exist if the TACC was constraining catch.

Interim deemed values

Greater flexibility in setting interim deemed value rates. Interim deemed values will not be set at 50% of the annual deemed value as standard.

Differential deemed values

Differential deemed values not set as standard.