John G. Tisdell

Fisheries management decisions have the potential to influence the safety of fishers by affecting how and when they fish. This implies a responsibility of government agencies to consider how fishers may behave under different policies and regulations in order to reduce the incidence of undesirable operational health and safety outcomes. In the Tasmanian southern rock lobster fishery, Australia, the expansion of the quota lease market under individual transferable quota (ITQ) management coincided with a rise in the number of commercial fishing fatalities, with five between 2008 and 2012. A discrete choice model of daily participation was fitted to compare whether physical risk tolerance varied between fishers who owned the majority of their quota units (quota owners) and those who mainly leased (lease quota fishers). In general, fishers were averse to physical risk (wave height), however this was offset by increases in expected revenue. Lease quota fishers were more responsive to changes in expected revenue than quota owners, which contributed to risk tolerance levels that were significantly higher than those of quota owners in some areas. This pattern in behaviour appeared to be related to the cost of leasing quota. Although ITQs have often been considered to reduce the incentive for fishers to operate in hazardous weather conditions, this assumes fishing by quota owners. This analysis indicated that this doesn't hold true for lease quota fishers in an ITQ system, where in some instances there remains an economic incentive to fish in conditions with high levels of physical risk.

Successful individual transferable quota (ITQ) management requires a binding (constraining) total allowable catch (TAC). A non‐binding TAC may result in a shift back towards open access conditions, where fishers increasingly compete (‘race’) to catch their share of the total harvest. This process was examined by comparing fishing fleet behaviour and profitability in the Tasmanian southern rock lobster (Jasus edwardsii) fishery (TSRLF), Australia. Between 2008 and 2010, the TSRLF had a non‐binding TAC and effectively reverted to a regulated, limited‐entry fishery. Fishers' uncertainty about future profitability and their ability to take their allocated catch weakened the security characteristic of the ITQ allocation. The low quota lease price contributed to an increase in fleet capacity, while the more limited reduction in quota asset value proved an investment barrier, hindering the autonomous adjustment of quota towards the most efficient fishers. In the TSRLF, catch rates vary more than beach price and are therefore more important for determining daily revenue (i.e., price x catch rate) than market price. Consequently, fishers concentrated effort during times of higher catch rates rather than high market demand. This increased rent dissipation as fishers engaged in competitive race to fish to be the first to exploit the stock and obtain higher catch rates. The history of this fishery emphasizes the need for a constraining TAC in all ITQ fisheries, not only for stock management, but also to manage the security of the ITQ allocation and prevent unanticipated and undesirable changes in fisher behaviour and fishery profitability.