Demersal Fisheries Management Plans: business and regulatory impact assessment

Section 3: Costs, impacts and benefits

Quantified costs to businesses

Whilst the demersal FMPs include a variety of policies and actions, these will not be implemented immediately following publication of the FMP. Instead, specific measures must be developed through the appropriate processes before being implemented; such development may require further consultation, evidence and/or input from stakeholders and policymakers. The demersal FMPs do not result in direct measurable impacts at this stage because the FMPs do not introduce new measures upon publication. Therefore, this document is a narrative assessment and does not include monetised or quantified costs to businesses. As specific actions are implemented, further impact assessments (by all relevant authorities) will be completed that includes a more complete assessment of the monetised costs to business associated with that action.

Option 1: Publication of Demersal FMPs

The costs associated with adhering to FMP measures depend on the specific measures proposed. As these are currently unknown, they cannot be easily identified, or quantified. In general, the FMPs aim is to facilitate managing stocks sustainably through improved, evidence-based management via collaboration between Scottish Government, industry, and stakeholders. Any measure that requires a change to fishing activity will likely incur costs associated with adapting to these changes. These costs could materialise through change in landings profile, a change of fishing area, or the cost of complying with new gear and equipment regulations, as well as the subsequent overhead costs such activities might incur. There may also be time costs associated with adapting to the changes, whether this be increased time spent ensuring compliance with regulations or time spent adhering to reporting requirements. Due to the current uncertainty of specific measures to be introduced, these costs are listed as example costs only. They are not exhaustive of the potential costs that may be incurred, nor are they indicative of the specific measures that may be introduced.

There may also be some environmental costs incurred through pursuing Option 1. This could be in the form of changing environmental pressures as a result of business adapting to new measures implemented via the FMPs. Again, as the specific measures to be implemented are unknown, the exact impact on the environment cannot be identified.

Option 2: Business as Usual – No FMP published

As a continuation of business as usual (BAU), implementing Option 2 is unlikely to result in any additional costs to businesses beyond those already incurred by the demersal fishing sector, and associated business. Fishing opportunities would likely remain the same as previous years, subject to variances in TAC and quota negotiations which are beyond the remit of the FMPs. Option 2 may potentially increase the likelihood of stocks being overexploited given that no additional efforts to strengthen the evidence-base, or manage stocks sustainably, would be pursued. This could in turn have a longer term negative impact on the future fishing opportunities for the species affected. Additionally, no additional measures to improve environmental protection would be pursued, which could result in negative environmental impacts. It is also likely to impact on consumer confidence in the long-run, potentially making UK fisheries less attractive to UK retailers and consumers who may question the overall sustainability of UK seafood. However, FMPs are not the only measure of sustainability and therefore the likelihood of this occurring is likely to be low.

It should be noted that by pursuing Option 2 and not publishing demersal FMPs the Scottish Government (and the other relevant authorities in the UK) would fail to meet its legal obligation under the 2020 Act and JFS requiring publication of the FMPs. If there was an intention to pursue Option 2, of not publishing the FMPs, amendments to the JFS would be required.

Benefits to business

Option 1: Publication of Demersal FMPs

As noted above, the benefits associated with measures arising from actions in published FMPs depend on the specific measures which are subsequently proposed. As these are currently unknown, the benefits cannot be easily identified, or quantified at this time.

In general, the FMPs aim to manage stocks at sustainably by bringing together information on existing measures and available evidence, mapping where there are gaps and opportunities to fill them. This sets out a clear pathway to developing and introducing improved, evidence-based management in collaboration with industry and stakeholders. As such, the benefits to business associated with measures developed from FMP actions are likely to materialise in the form of sustainable fishing opportunities that will provide fishers with sustainable economic opportunities into the future. There may also be environmental benefits associated with this Option, realised through improving the underpinning evidence base, facilitating management decision making that considers a wider and improved range of fisheries and environmental data. Whilst perhaps less immediately tangible to businesses in the short term, these benefits are likely to have a longer-term economic and environmental impact to businesses through sustainably safeguarding future fishing opportunities.

Option 2: Business as Usual – No FMPs published

Fishing activities and opportunities for the demersal species covered by FMPs are likely to remain similar to previous years, subject to changes in quota and TAC which are outside the remit of the FMPs. In 2024, the value of demersal stocks landed by the UK fishing fleet was £182.9 million. A breakdown by individual FMP is outlined in Table 1 above. £152.5 million (83%) of this was landed by Scottish vessels, with a further £30.1 million (16%) landed by English vessels, and the remainder by Welsh and Northern Irish vessels (<1%).

Other impacts

Compliance and Resourcing Impacts

There are likely to be differing levels of compliance and resourcing costs incurred by Scottish Government (and the other relevant authorities) associated with each option.

Option 1 would likely involve compliance and resourcing costs for fisheries policy authorities additional to those currently incurred. These costs would be incurred through the process of implementing new FMP policy measures and ensuring compliance with such measures. The magnitude of these costs depends on the specific measures introduced, with more complex measures requiring greater and more specific compliance incurring a greater cost.

Option 2 is unlikely to generate any additional compliance and resourcing costs beyond those already incurred by current compliance and resourcing plans. However, it should be noted that by pursuing Option 2 and not publishing demersal FMPs the Scottish Government (and the other relevant authorities in the UK) would fail to meet its legal obligation under the 2020 Act and JFS requiring publication of the FMPs. If there was an intention to pursue Option 2, of not publishing the FMPs, amendments to the JFS would be required and additional resource would be required for this.

Environmental Impacts

There are likely to be differing environmental impacts realised as a result of pursuing each option.

Option 1 is likely to generate environmental benefits associated with sustainable stock management and improving the evidence base underpinning management decisions. However, there may be environmental costs associated with the FMP measures implemented via Option 1, such as the displacement of fishing effort and other unforeseen factors, which could detract from any environmental benefits generated. As the specific measures are yet to be confirmed, the extent to which environmental costs and benefits will be realised is unknown.

As a continuation of the status quo, Option 2 involves no additional efforts to manage stocks sustainably, or improve the existing evidence base that may facilitate greater management decision making. As such, it is likely that this option would incur environmental costs associated with current fishing activities, represented by a potential decline in stock health and abundance through overexploitation and no improvement in the existing evidence base underpinning management decision making.

Scottish firms’ international competitiveness

The FMPs are not expected to have a significant impact on the Scottish businesses ability to compete internationally, nor will it affect Scotland’s attractiveness as a destination for global capital investment. The FMPs are intended to support sustainable and responsible fisheries management, which in turn supports healthy fish stocks and a sustainable fishing industry. This will help ensure that businesses remain competitive and have a strong international reputation and consumer confidence.

Small business impacts

There are unlikely to be any (disproportionate) direct impacts on small businesses due to publication of FMPs. As of 2023, the Scottish demersal fishing fleet consisted of 165 active vessels. Just over half of these (91 vessels, 55%) were over ten metres in length, with vessels ten metres and under totalling 74 or 45%. The most common fishing method for the ten metres and under segment was wrasse traps (50 vessels), followed by demersal lines (15 vessels). The over ten metre segment was dominated by demersal single trawls (46 vessels).^[4] Note that – although smaller vessels tend to have smaller crews – vessel length does not always correlate with business size.

However, in most cases further policy development work will be needed for any new actions, which could include further evidence gathering or public consultation, along with the completion of appropriate impact assessments. Many of the actions are already underway and part of multi-year delivery programmes, and their development has also been subject to public consultation and appropriate impact assessments carried out by Scottish Government and the other relevant authorities, as required (such as BRIA).

In terms of the make-up of the groups affected, they are most likely small and micro business. The definition of small and micro business based on employing less than 50 FTE from the Small Business, Enterprise and Employment Act 2015^[5]. Every business in the Marine Fishing standard industry classification would be a small or micro business, as all employ less than 50 FTE^[6] . As marine fishing business are the most likely to be affected by the FMPs, the main group affected will be composed of small and micro business.

Investment

There are unlikely to be any direct impacts to make Scotland (or wider UK) a more, or less, attractive place for global investment.

Workforce and Fair Work

There are unlikely to be any direct impacts affecting the workforce.

The FMPs will not have any direct impact on Fair Work First principles.

Climate change/ Circular Economy

There are unlikely to be any direct impacts affecting climate change/ circular economy. FMPs set out our approach to increasing or maintaining sustainability of fish stocks and as additional evidence is developed, this will help fisheries managers to respond to changes in the status of stocks.

The demersal FMPs acknowledge there are already changes to the distribution and size composition of demersal stocks as a result of climate change, but the overall impacts are not yet fully understood. Specific policies and actions within the demersal FMPs look at how the fishing industry can be supported to adapt to the impact of climate change. This includes actions on wider research to identify impacts of climate change on fisheries, including their links within the wider ecosystem, as well as identifying the impacts of the fisheries on the marine environment. Further research will be required to predict the scale of impacts on the environment and over what timeframe this will be applicable to the demersal FMPs.

As our evidence base grows, we will understand better the specific impacts of climate change on the demersal species covered by these FMPs, and the scale of change required to support vessels fishing for these species to reduce their emissions and also adapt to changes in stocks and general fishing conditions. These actions are likely to adjust over time and will become more refined.

Possible measures which could support the sector’s contribution to the UK’s climate targets or promote Circular Economy, are already in development and / or being delivered. The FMP will support these measures, although it is not directly introducing or delivering them.

Competition Assessment

Will the measure directly or indirectly limit the number or range of suppliers?

Demersal FMPs are unlikely to limit the number or range of suppliers.

Will the measure limit the ability of suppliers to compete?

Demersal FMPs are unlikely to limit the ability of suppliers to compete.

Will the measure limit suppliers’ incentives to compete?

Demersal FMPs are unlikely to limit suppliers’ incentives to compete.

Will the measure affect consumers’ ability to engage with the market and make choices that align with their preferences?

Demersal FMPs are unlikely to affect consumers’ ability to engage with the market and make choices that align with their preferences.

Will the measure affect suppliers’ ability and/or incentive to introduce new technologies, products or business models?

Demersal FMPs are unlikely to affect suppliers’ ability and/or incentive to introduce new technologies, products or business models.

Finally, it should be noted that while no impacts are expected, in most cases further policy development work will be needed for any new actions, which could include further evidence gathering or public consultation, along with the completion of appropriate impact assessments. Many of the actions are already underway and part of multi-year delivery programmes, and their development has also been subject to public consultation and appropriate impact assessments (such as a policy-specific BRIA).

Consumer Duty

What is the proposal trying to achieve?

The proposal is to publish FMPs for 11 demersal stocks as required by the 2020 Act 2020 and the JFS. FMPs set out the policies designed to restore one or more stocks of sea fish to, or maintain them at, sustainable levels or to contribute to that restoration or maintenance. Where there is not sufficient scientific evidence for MSY, plans will also consider steps to obtain scientific evidence for this. Each plan will specify the stock(s), type of fishing and the geographic area covered. Each FMP will also identify the measures that could be used to deliver its policies. Such measures may include both existing or new regulations, statutory instruments, technical measures, or non-statutory routes such as research plans, voluntary agreements, or codes of conduct. The precise mechanisms used will depend on the policies set out in the plan and, where appropriate, will be enforced by the relevant national fisheries authority. The proposed measures could be regulatory or deregulatory, and positive or negative to business

What are the impacts on consumers?

Demersal FMPs are unlikely to have any impact on consumers.

Is it likely that harm will be experienced by consumers as a result of this proposal?

Consumers are unlikely to be harmed as a result of demersal FMPs.

What alternative proposals are there than can improve outcomes for consumers and/or reduce harm to consumers?

Not applicable.

How do these alternative proposals compare to the original proposal?

Not applicable.