The impact of subsidies on the ecological sustainability and future profits from North Sea fisheries

Background

This study examines the impact of subsidies on the profitability andecological stability of the North Sea fisheries over the past 20 years. Itshows the negative impact that subsidies can have on both the biomass ofimportant fish species and the possible profit from fisheries. The studyincludes subsidies in an ecosystem model of the North Sea and examines thepossible effects of eliminating fishery subsidies.

Methodology/Principal Findings

Hindcast analysis between 1991 and 2003 indicates that subsidies reduced theprofitability of the fishery even though gross revenue might have been highfor specific fisheries sectors. Simulations seeking to maximise the totalrevenue between 2004 and 2010 suggest that this can be achieved byincreasing the effort of Nephrops trawlers, beam trawlers, and the pelagictrawl-and-seine fleet, while reducing the effort of demersal trawlers.Simulations show that ecological stability can be realised by reducing theeffort of the beam trawlers, Nephrops trawlers, pelagic- and demersaltrawl-and-seine fleets. This analysis also shows that when subsidies areincluded, effort will always be higher for all fleets, because iteffectively reduces the cost of fishing.

Conclusions/Significance

The study found that while removing subsidies might reduce the total catchand revenue, it increases the overall profitability of the fishery and thetotal biomass of commercially important species. For example, cod, haddock,herring and plaice biomass increased over the simulation when optimising forprofit, and when optimising for ecological stability, the biomass for cod,plaice and sole also increased. When subsidies are eliminated, the studyshows that rather than forcing those involved in the fishery into the red,fisheries become more profitable, despite a decrease in total revenue due toa loss of subsidies from the government.