Review of the Amended Economic Link License Condition

2. Background – what was changed?

In 1999, economic link licence conditions were introduced for all vessels over 10 meters in length landing more than two tonnes of stocks covered by Total Allowable Catch (TAC). The purpose of these economic link conditions was to ensure an economic return to the UK from the fish quotas allocated by the UK fisheries policy authorities to fishing vessels registered in the UK.

In 2017, the Scottish Government consulted on amending economic link licence conditions for Scottish vessels. This followed a number of years when an increasing quantity of fish had come to be landed abroad (in particular mackerel and herring) reducing the benefits to Scotland from Scottish quotas.

Following the consultation, on 21 September 2022, the Scottish Government announced the following amendments to economic link arrangements which took effect from 1 January 2023:

• Landings into Scotland to form the main basis for compliance with the economic link licence condition.
• The options for demonstrating compliance through crewing and/or operating expenditure were removed.
• The option to gift quota in lieu of landings into Scotland to continue with the formula used to estimate a suitable quota gift amended to better reflect the GVA from fishing.
• The minimum level for qualifying for economic link criteria increased from landings of two tonnes to landings of 10 tonnes.
• The required rate to satisfy the landings target increased from 50% to 55% for demersal and shellfish stocks covered by the provision.
• The landings target for pelagic species covered was increased to 55% over a three-year period. This saw a staggered increase for pelagic species of:
  • 30% landings in 2023
  • 40% landings in 2024
  • 55% landings in 2025 (brought in line with all stocks covered by Scottish economic link provisions).
• Scottish economic link provisions were to apply only to the eight most important species, by landed value and managed by TAC, into Scotland. These are: herring, mackerel, Nephrops, haddock, monkfish, cod, hake and whiting (“the 8 key species”). Together, these species account for around 90% of the value of total landings by Scottish vessels of TAC stocks.

The current economic link requirement

As from 1 January 2025, the yearly economic link provision as it applies in Scottish licenses sets out that:

• All Scottish administered vessels over 10 metres in length, which land over 10 tonnes of the 8 key species, must meet one of two criteria for fulfilling the Economic Link requirements:
• (1) Land at least 55% (by weight) of their total combined landings of the 8 key species (cod, haddock, whiting, hake, anglerfish, Nephrops, herring and mackerel) into Scotland. This is what is described as the ‘Landings Target’ element of economic link. So, for any over 10 metre vessel landing more than 10 tonnes of the species covered (cod, haddock, whiting, hake, anglerfish, Nephrops, herring and mackerel) at least 55% must be into Scotland.
• (2) Return quota in the following calendar year equivalent to 26% of the lost value to Scotland as a result of not reaching the 55% target. Essentially, vessels are required to return the difference between the tonnage of the key species landed and the 55% landings target threshold. So, if a vessel’s total combined landings of the eight key species into Scotland is 50%, their shortfall amount is 5%. The vessel in question would therefore be required to provide a quota gift equivalent to 26% of the value of the 5% shortfall.
• The 55% threshold is calculated on a vessel’s total landings of all the key species combined in the calendar year. It does not mean that landings for each individual species must be 55% or higher.

The licence condition for 2025 renews each year going forward unless the policy is amended – that is, eligible Scottish registered vessels are required to land 55% of their total catch of the eight key species into Scotland each year or else provide quota gifts in the following year.