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13 New Entrants in the Fishery

Other sections of this report examine the net result of consolidations and transfer activities that have occurred since the initial QS allocation. Some of the transferred QS went to initial QS recipients and some went to new entrants. The tables in this section present data that show the extent to which new entrants obtained QS and entered the sablefish fishery. The data suggest that significant numbers of persons who were not initial issuees for an area were able to obtain sablefish QS.

The IFQ program provides for free transferability of QS, subject to several constraints designed to temper consolidation and ensure preservation of opportunities for the smaller-boat and part-time portion of the fleet that existed under open access. These constraints are discussed in Chapter 3 and other sections of this report.

Any United States citizen or entity can receive freezer vessel QS through transfer. Persons who are initial QS recipients or IFQ crew members may receive catcher vessel QS through transfer. Under the IFQ program, an IFQ crew member is defined as any individual who has at least 150 days experience working as part of a harvesting crew in any United States commercial fishery or as any individual who receives an initial allocation of QS.

New entrants may also occur by regulations which allow an individual to transfer QS to the individual's solely owned corporation (a new entity). New entrants might also occur because of transfers due to court order, operation of law, or as part of a security agreement. However, in these latter cases IFQ is not assigned unless the person receiving the QS transfer meets all of the eligibility requirements.

Table 13-1a shows the amount of QS and the percentage of QS by sablefish area which was still held by initial issuees at the end of 1995 and 1996. The table also provides the percentage these initial holders represent of all QS holders, and their average QS holdings.

The table shows the amount and percentage of sablefish QS by sablefish management area which is held by new entrants to the area at the end of 1995 and 1996. Note that a new entrant in one area may have initially received sablefish QS in some other area(s). The table provides the number of new entrants to each area, the percentage these new entrants represent of all QS holders, and their average QS holdings.

The number of initial issuees who still held QS declined in all areas from 1995 to 1996. By the end of 1996, new entrants held between 4.6% of the available QS in the Central Gulf to 8.3% in the Southeast area. Similarly, by the end of 1996, the percentage of QS holders who were new entrants to the area ranged from 6.7% of the QS holders in the Bering Sea area to 15.6% of the QS holders in the Southeast area. These data suggest significant numbers of new persons have been able to enter the sablefish fishery after initial allocation.

As stated, some of the new QS holders in an area were initial issuees in other sablefish areas or received an initial allocation of halibut QS. This can be seen in Table 13-1b, which examines more closely the new entrants in each sablefish management area.

Table 13-1b provides data on the total QS and the total number of persons holding QS at year-end 1995 and 1996, by sablefish management area. The table also shows the number of remaining initial issuees at year-end 1995 and 1996 and the percentage of the total QS holders which they represent.

The table examines new entrants in each area. New entrants are defined as entities that were not initial recipients of QS in an area, but held QS for that area at the end of the year in question. However, some of the new entrants in an area were initial recipients of QS in another area or for another species. This is shown in the other columns in Table 13-1b.

For example, in the Central Gulf area there were 65 new entrants who held QS as of year-end 1996. Of these persons, 60 were "new holders" of sablefish QS and 42 were entirely new entrants to the IFQ program. The numbers imply that 5 of the 65 new entrants in the Central Gulf were initial issuees of sablefish QS in some other area, and 23 of the 65 new Central Gulf entrants were either initial issuees of sablefish QS in some other area or were initial issuees of halibut QS.

Table 13-2 provides information on the extent to which lessees (persons who receive leased QS) were initial QS recipients or new QS holders. A large portion of the leased QS went to persons who were not initial QS recipients.

Table 13-1a. Sablefish QS Holdings of Initial Issuees and New Entrants by Year-end 1995 and 1996

Table 13-1b. New entrants to the IFQ Fisheries

Table 13-2. Leases of Sablefish QS to Initial Issuees and New Entrants by Area and Vessel Category