Fishing - pelagic quota cuts 2026 - consultation outcome: Scottish Government response

Summary of Feedback from Port Authorities

Overview

Pelagic landings—particularly mackerel—are fundamental to port revenue streams and infrastructure planning. Port representatives described mackerel in particular as a major contributor to income, with landing dues far outweighing basic berthing charges. It was set out that when landings declines, the financial impact is immediate because operating costs and debt servicing obligations are largely fixed.

Strategic Investments and Exposure

Ports highlighted that recent and planned investments were predicated on sustained pelagic activity. One port is in the final stages of a £30 million quay development, scheduled for completion in 2027, designed to expand berthing capacity and support both pelagic operations and emerging offshore renewable projects. This investment was considered strategically important for the port infrastructure and Scotland’s future energy transition. Officials noted that loan payment and board approvals for such projects assumed continued projected mackerel landings. Future development programmes could be delayed if pelagic throughput falls. Ports stressed that these projects are not discretionary: they were undertaken to maintain competitiveness and diversify revenue streams, yet their financial viability depends on maintaining core pelagic volumes.

Wider Benefit

Beyond direct port income, it was set out that pelagic landings underpin a network of local businesses, including haulage, fuel supply, and engineering services. Reduced activity would diminish these benefits, affecting regional employment and supply-chain resilience. While ports may seek to hold direct staffing steady, they acknowledged that associated sectors would experience contraction if landings decline sharply.

Policy Preferences

Port authorities expressed strong support for measures that maintain tonnage and throughput at Scottish ports. They judged voluntary approaches unlikely to deliver reliably where large price differentials exist and favoured regulatory or incentive-based interventions to secure landings during the 2026 season. The underlying concern is that a significant reduction in quota would reduce utilisation of pelagic-dedicated infrastructure and compromise the return on strategic investments already underway.

Long-Term Outlook

With legacy revenue streams such as oil and gas in decline, pelagic and whitefish activity remain critical pillars of port viability. Representatives warned that if quota cuts persist, ports could become a “shadow” of their current operations, even as they face rising expectations to support offshore renewables and other growth sectors. This dual pressure—shrinking pelagic income alongside fixed-cost obligations—was described as the most challenging environment in decades.

Determining the Case for Intervention

In evaluating whether government intervention is justified for 2026, the Scottish Government has drawn on a comprehensive evidence base including: landings data, the socio-economic analysis set out in the BRIA and associated impact assessments, reviews of the amended economic link policy, previous consultations, and stakeholder feedback. The objective throughout has been to balance the aim of maximising the benefits derived from Scotland’s fish quotas against the operational realities faced across the supply chain, and to ensure that any action taken is consistent with wider obligations.

This evaluation has been framed by the original aims of the amended economic link licence condition introduced from 1 January 2023—namely: (1) to support the long‑term, sustainable growth of local economies where fishing is a key driver by increasing the volume and regularity of fish landed and available for processing in Scotland; (2) to attract greater investment and employment by reducing supply‑chain risks for Scottish processing and handling businesses; and (3) to bring greater social and economic benefits from a Scottish national resource by spreading quota benefits more widely through fishing communities. These aims remain directly relevant in assessing whether exceptional circumstances in 2026 warrant further, emergency intervention.

The urgency of the situation is clear. Following international negotiations, the UK has agreed a 48% reduction in the North East Atlantic mackerel TAC and a 22% reduction for herring for 2026. This is a sector well used to the fluctuations of TACs from one year to the other. However, reductions on this scale create a serious risk of sharply reduced domestic throughput and increased supply chain volatility for onshore businesses. Under the BRIA’s Business as Usual (BAU) baseline (i.e. retaining the current economic link framework), mackerel landings into Scottish factories are projected to fall to around 39,094 tonnes in 2026, with 38,582 tonnes still landed abroad; for herring, 42,253 tonnes are projected to be landed into Scotland and 2,284 tonnes abroad. This projected contraction in domestic mackerel throughput, in particular, risks undermining the policy’s original aims by weakening the volume and regularity of supply available to Scottish processors, increasing exposure for businesses with high fixed costs, and reducing the confidence needed to sustain employment and justify continued investment in pelagic dedicated infrastructure.

At the same time, the catching sector faces its own pressures from reduced available tonnage and market uncertainty. Stakeholders highlighted that recent price conditions have been unusual—mackerel prices rose very sharply during 2025—and there is uncertainty over whether elevated prices will persist through 2026; the BRIA includes sensitivity analysis to reflect this uncertainty. This reinforces the need for any intervention to be proportionate, clearly evidenced, and designed to manage unintended consequences where possible.

Stakeholder feedback also raised questions about the form of any intervention. Processors and port authorities argued that stronger measures are necessary in 2026 to protect domestic throughput and associated employment, while many catcher interests—particularly ‘independent’ operators—emphasised the importance of preserving competitive landing options and expressed concern that tighter requirements could widen price differentials and constrain flexibility. The evaluation process has therefore considered the merits and drawbacks of different approaches, including tightening the economic link licence condition and alternative mechanisms such as changes to Additional Quota (AQ) allocation, alongside the practical implications for the fleet, market stability, and perceived fairness

The Policy Intervention for 2026

Having considered landings data, socio-economic evidence from the BRIA and associated impact assessments, reviews of the amended economic link policy, and stakeholder feedback, the Scottish Government has decided that from 1 January 2026 the economic link licence condition will be amended to introduce species-specific landing requirements for mackerel and herring, replacing the current combined target. Applicable vessels will be required to land at least 70% of their total annual landings of mackerel into Scotland and at least 70% of their total annual landings of herring into Scotland, with the existing quota gifting route retained as an alternative compliance mechanism.

This time-limited emergency measure is intended to protect the original aims of the amended economic link policy during a year of exceptional quota constraint by: supporting the volume and regularity of supply to Scottish processors; reducing supply-chain risk to protect employment and investment; and safeguarding the wider economic benefits derived from a Scottish national resource.