Community-based Sectors for the New England Groundfish Fishery

Just as was done for the sector analyses, the catch history associated with the current moratorium
right IDs of these vessels was calculated and a the combined share of these vessels catch by
species/stock for the period from May 2001 through April 2006 was calculated (Table 14).
Table 14: Combined catch history by fish stock of permit bank vessels for the fishing years 2001-
2005 and the proportion of total commercial landings by these vessels.
Stock and species
Total FY01-05
Landings
Permit
BankFY01-05
Total Landings
Proportion of total
landings landed by
permit bank
vessels
GB COD 66,166,000 258,827 0.4%
GB HADDOCK 66,001,000 330,319 0.5%
GB WINTER FLOUNDER 26,960,000 6,647 0.0%
GB YELLOWTAIL 39,925,000 3,576 0.0%
GOM COD 42,105,000 848,299 2.0%
GOM HADDOCK 10,769,000 555,657 5.2%
GOM/CC WINTER FLOUNDER 6,072,000 87,432 1.4%
GOM/CC YELLOWTAIL 16,218,000 155,192 1.0%
GOM/GB WINDOWPANE 274,000 - 0.0%
PLAICE 27,593,000 1,816,007 6.6%
POLLOCK 52,853,000 1,593,109 3.0%
REDFISH 4,461,000 203,158 4.6%
SKATES 160,780,000 - 0.0%
SNE/MA HADDOCK 76,000 - 0.0%
SNE/MA WINDOWPANE 633,000 - 0.0%
SNE/MA WINTER FLOUNDER 25,217,000 3,834 0.0%
SNE/MA YELLOWTAIL 4,118,000 - 0.0%
WHITE HAKE 37,850,000 1,898,262 5.0%
WITCH FLOUNDER 32,599,000 1,966,996 6.0%
NFMA MONKFISH 142,821,000 6,541,841 4.6%
SFMA MONKFISH 102,724,000 8,051 0.0%
Based on these percentages, ACE allocations as a share of target TACs are calculated and
revenues associated with utilization of those allocations are projected based on the same target
TAC and prices projections used for the economic feasibility analysis of the sectors (Table 15).
As with the sector analyses, the assumption is made that 85% of the ACE allocation of the permit
bank for all stocks is actually leased by sector vessels. The ACE leasing fee as a percentage of
revenues that would pay back a $3.8 million loan for vessel acquisition is calculated to be 16.3%
of ex-vessel price from the catch associated with the leased ACE. This assumes an interest rate of
7.5% and a 10 year repayment period for the vessel purchase loan. Assuming variable operating
costs equal to 38% of gross revenues (the same assumption used in the sector analyses), the
permit bank yields close to $2 million annually in net revenues to sector vessels after payment of
the lease fees necessary for loan repayment. The permit bank then quickly builds a substantial
asset base which it could use to purchase additional permits. However, the growth of the asset
base in Table 15 assumes the permit bank continues to lease ACE at 16.2% of ex-vessel price and
reinvests its assets in investments that pay a 7.5% return.
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