BarentsNews.com

Passing a new document regulating allocation of fishing quotas among Murmansk region’s enterprises is a subject for bitter criticism voiced by different representatives of the local fishery sector. “The Temporary Order of Quotas Distribution” contains too many controversial statements that do not correlate with the aim of this document defined by the regional government as “improving the legal basis for distribution of quotas for aqua biological resources as well as a better regulation of their use.”

In fact, with all the contradictions contained in the document, many believe it will only halt the development of fishery in the Murmansk region. The old traditional approach to quotas distribution was based on objective factors, while the newly adopted system relies on purely mathematical methods, with no regard to common sense.

As stated in clause 1.3 of the Order, Murmansk region is provided with fishing quotas as one of maritime regions of the Russian Federation, whose economy mainly depends on fishery and most part of the population is engaged in fishery sector. However, as seen from clause 1.11, the selection criteria for allocating quotas to one or another company do not demonstrate any connection with the economy or the social situation in the region. The principal condition is defined as the enterprise’s full payment of all applicable taxes. But taxes must be paid by any physical or juridical entity, and this criterion can hardly be regarded as the most significant when considering applications for obtaining quotas.

A company’s actual usefulness for the region implies delivery of its catches to the local port. At the same time, the caught fish may be transported to Murmansk, while all vessel supplies and services will be provided in a foreign port, which makes 80 percent of the product’s cost. It means that vessels must be obliged to arrive at the local port for getting fuel, package and other supplies. Only in this case the onshore industry will be able to revive.

Still more questionable is clause 5.4 that enumerates vessels eligible for obtaining pelagic quotas. Among these are only the vessels registered at the Murmansk fishing port before January 1st, 2000. It actually means that some shipowners with already non-existent vessels will be allocated pelagic quotas, while other companies that have purchased and successfully operated their ships over the last 2 years, will get nothing.

Moreover, according to a statement of the Temporary Order, if an enterprise loses a vessel, it still has the right to keep the given quota for 2 years. This stipulation, giving numerous opportunities for fraud, does not seem to contribute to the fishing fleet development or promote building of new vessels.

Those having a quota can arrange operating a vessel on a bareboat charter basis. But facts show that over 8 years of such practice, no foreign vessel has yet become the property of a Murmansk shipowner.

About 40 vessels operate today in the Northern basin on bareboat charter terms. However, nobody is aware of the periods of their prospective purchase. Today there is a need for analysing such schemes used by local shipowners and to set precise rules for bareboat-charter operators. Deadlines for vessels’ acquisition should be clearly determined; otherwise, no quotas should be given to these companies. Such is the opinion shared by some of the new regulation’s opponents.

So far, it looks like the new system of quotas distribution has generated more problems for the region’s fishing industry than ways of improving the situation.