Community-based Sectors for the New England Groundfish Fishery

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conservative except to the extent that the sector is unable to land catches equal to at least 85% of its ACE. The expected annual gain in revenues under sector management is estimated by subtracting the projected annual revenues without sectors management from projected revenues under sector management (Table 3a,b). The analysis assumes that, without sector management, the sector members will continue to catch the same percentage of the different groundfish target TACs that they caught during the 2004 and 2005 fishing years. Estimates are provided based on two different sector allocation formulas (e.g. FY01-05 and FY96-01 basis years). The annual gain in net revenues for the sector is calculated by subtracting from the increase in annual gross revenue, the variable operating costs (estimated at 38% of the increased gross revenues) 9 , the ongoing costs of sector management (assumed to be $75,000), and loan payments to repay sector establishment costs (which was assumed to be $100,000). These net gains do not account for additional labor costs associated with landing additional catch (only costs such as fuel, oil, ice, water and provisions). Thus the gains in net revenues represent additional income that would be divided between boat/permit owners, captains and crew. Presumably this will be on the same basis as normal crew share which may vary from vessel to vessel. The analysis suggests that sector management can provide substantial gains in net revenues to sector vessels and that these gains far outweigh the costs of establishing and operating a sector. In the first year, the sector is projected to increase net revenues by $605 thousand with the FY01-05 allocation and by $505 thousand with the FY96-01 allocation. This assumes sector vessels pay a landing tax of 5% on groundfish and monkfish landings. The 5% landings tax would be sufficient to cover the $75 thousand annual operating cost and to pay off a $100 thousand loan for establishment of the sector in 5 or 6 years (depending on allocation formula) assuming a 7.5% interest rate. If the landings tax was continued at 5% indefinitely, the sector entity would begin to build capital which could be used to pay dividends to sector members or to purchase additional permits. The asset calculations in Tables 3a,b assume that the landing tax surplus and 7.5% interest on assets is simply accumulated by the sector entity. Note that the column titled interest and management fees becomes negative in later years once interest on the sector’s asset base exceeds the management costs. 9 The estimate of variable operating costs as a percent of revenue is based on observer data collected from observed trawler trips. For each trip the ratio of the sum of fuel, oil, food, water, ice, and supplies to the revenues generated by the trip was calculated. A weighted average of this ratio (weighted by revenue) was calculated to equal 25% of gross revenues. However, the average fuel cost in this data was only $1.92 per gallon. If the calculation are redone with a fuel cost of $3 per gallon the weighted average variable cost per dollar of revenue is 38%. 20
Table 3a: Port Clyde Sector Revenues and Gains Over Non Sector Management based on FY01-05 Allocation Fishing Year Total Revenue tax (5%) Interest + Mgmt fees Outstanding Loan or (Assets) Sector Revenue Gain (vs. no sector) % Gain Sector Net Rev Gain 2008 $ 2,503,715 $ 125,186 $ 82,500 $ 100,000 $ 1,052,816 79% $ 605,175 2009 $ 2,071,357 $ 103,568 $ 79,299 $ 57,314 $ 830,020 73% $ 475,257 2010 $ 2,103,820 $ 105,191 $ 77,478 $ 33,045 $ 853,683 75% $ 489,311 2011 $ 2,140,039 $ 107,002 $ 75,400 $ 5,332 $ 876,453 76% $ 502,740 2012 $ 2,183,314 $ 109,166 $ 73,030 $ (26,270) $ 901,207 77% $ 517,265 2013 $ 2,233,589 $ 111,679 $ 70,320 $ (62,406) $ 930,631 78% $ 534,553 2014 $ 2,080,694 $ 104,035 $ 67,218 $ (103,765) $ 865,970 78% $ 497,368 2015 $ 2,095,163 $ 104,758 $ 64,456 $ (140,583) $ 870,485 78% $ 499,892 2016 $ 2,116,387 $ 105,819 $ 61,434 $ (180,884) $ 880,369 78% $ 505,618 2017 $ 2,135,157 $ 106,758 $ 58,105 $ (225,270) $ 889,709 78% $ 511,052 2018 $ 2,157,520 $ 107,876 $ 54,456 $ (273,923) $ 898,977 78% $ 516,373 2019 $ 2,176,498 $ 108,825 $ 50,449 $ (327,343) $ 906,731 78% $ 520,820 2020 $ 2,193,566 $ 109,678 $ 46,071 $ (385,719) $ 913,564 78% $ 524,732 2021 $ 2,209,382 $ 110,469 $ 41,301 $ (449,326) $ 919,789 78% $ 528,291 2022 $ 2,224,975 $ 111,249 $ 36,113 $ (518,495) $ 925,921 78% $ 531,796 2023 $ 2,239,365 $ 111,968 $ 30,478 $ (593,631) $ 931,680 78% $ 535,094 2024 $ 2,253,809 $ 112,690 $ 24,366 $ (675,121) $ 938,839 78% $ 539,258 2025 $ 2,267,361 $ 113,368 $ 17,742 $ (763,446) $ 943,970 78% $ 542,181 2026 $ 2,279,730 $ 113,987 $ 10,570 $ (859,072) $ 948,501 78% $ 544,756 2027 $ 2,309,629 $ 115,481 $ 2,813 $ (962,489) $ 957,177 77% $ 549,567 2028 $ 2,318,817 $ 115,941 $ (5,637) $ (1,075,157) $ 960,978 77% $ 551,749 2029 $ 2,329,240 $ 116,462 $ (14,755) $ (1,196,735) $ 965,204 77% $ 554,171 2030 $ 2,339,097 $ 116,955 $ (24,596) $ (1,327,952) $ 969,179 77% $ 556,448 2031 $ 2,349,535 $ 117,477 $ (35,213) $ (1,469,503) $ 973,277 77% $ 558,791 2032 $ 2,359,976 $ 117,999 $ (46,664) $ (1,622,193) $ 977,456 77% $ 561,183 2033 $ 2,370,114 $ 118,506 $ (59,014) $ (1,786,856) $ 981,432 77% $ 563,455 2034 $ 2,380,278 $ 119,014 $ (72,328) $ (1,964,376) $ 985,185 77% $ 565,589 2035 $ 2,390,093 $ 119,505 $ (86,679) $ (2,155,718) $ 988,890 77% $ 567,700 2036 $ 2,400,649 $ 120,032 $ (102,143) $ (2,361,902) $ 992,914 77% $ 569,994 2037 $ 2,409,934 $ 120,497 $ (118,806) $ (2,584,077) $ 996,221 77% $ 571,868 21
Page 1 and 2: Community-based Sectors for the New
Page 3 and 4: Table of Contents Executive Summary
Page 5 and 6: Community leaders in Portland and P
Page 7 and 8: of community-based permit banks. Th
Page 9 and 10: 1.0 Introduction The groundfish fis
Page 11 and 12: Although Amendment 13 effectively e
Page 13 and 14: somewhat vague on how the allocatio
Page 15 and 16: 2.2 Experience with Existing Sector
Page 17 and 18: me to explore the idea further and
Page 19 and 20: period is that which was used to de
Page 21: shown above in Table 2. Revenue pro
Page 25 and 26: ecruitment and could be either high
Page 27 and 28: increased. They also have caught a
Page 29 and 30: 3.2.1 Strawman Sector Structure and
Page 31 and 32: Table 8: Portland Sectors A and B V
Page 33 and 34: discussed earlier these price proje
Page 35 and 36: Table 9b: Portland Sector A Revenue
Page 37 and 38: Table 9d: Portland Sector B Revenue
Page 39 and 40: Table 10b: Portland Sector A Revenu
Page 41 and 42: Table 11b: Portland Sector B Specie
Page 43 and 44: vessels would be leased to sector v
Page 45 and 46: is ostensibly to reduce excess capa
Page 47 and 48: Table 15: Projected Total Revenue,
Page 49 and 50: later. However, rolling baselines c
Page 51 and 52: 4.4 Communities without Catch Histo
Page 53 and 54: opportunities for consolidation of
Page 55 and 56: References Alexander, Yvette 2006.M
Page 57 and 58: Appendix A: Landings and revenue pr
Page 59 and 60: Appendix B: Groundfish Price Model
Page 61 and 62: Appendix C: Sector Proposals Submit
Page 63 and 64: Port Clyde Community Sector Glen Li
Page 65 and 66: Full Retention All fish caught 1. e
Page 67 and 68: Reasons for Existence: 1. end overf
Page 69 and 70: Gloucester Fixed Gear Sector Peter
Page 71 and 72: New Bedford Channel Trawl Sector Ri
Page 73 and 74:
Point Judith / Southern New England
Page 75:
Pier 6 Initiative Michael Walsh Req
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Community-based Sectors for the New England Groundfish Fishery

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