Appropriate design and implementation of support measures is important to ensure that they reach those most in need, while making efficient use of scarce government resources. In general, the OECD recommends government support polices in response to the COVID-19 pandemic be time-limited, targeted, cash-based, and consistent with longer-term sustainability objectives (OECD, 2020[3]). Because capture fisheries depend on renewable natural resources, the design and implementation of specific support measures also has direct implications for fishing and the sustainability of resources over the long term. As underscored by Sustainable Development Goal 14 adopted by the United Nations, and as discussed in ongoing negotiations in the World Trade Organisation on fisheries subsidies, it is important to ensure that support policies do not encourage overfishing; illegal, unregulated and unreported (IUU) fishing; as well as other fishing practices that destroy ocean ecosystems and compromise the sustainability of resources. Fortunately, economic, equity and environmental considerations all point to similar best practices in terms of support to fisheries.
In particular, OECD work shows that policies that lower the cost of inputs, such as fuel or vessel construction or modernisation, are among the most likely to create incentives to fish more intensively and promote unsustainable fishing – while at the same time leading to less inclusive outcomes, by favouring large fishers over small producers (Martini and Innes, 2018[4]). In 2017, such policies accounted for 40% of the direct support to individuals and companies in the fisheries sector reported by the 27 OECD countries that participate in the OECD Fisheries Support Estimate database.1 Evidence to date suggests that countries are not generally providing new support for inputs in response to the COVID-19 pandemic, perhaps thanks to recent drops in fuel prices. However, as losses to the sector mount, and governments come under increasing pressure to provide additional support, this trend may change. Thus, it is important to recall that the goal should be to move away from such measures and where necessary, instead, support income directly with targeted cash transfers, to the benefit of the environment and the sustainability of the sector as well as the livelihoods of fishers.
Direct support can be partially decoupled from fishing activities, for example, via income support and special insurance systems. Such approaches are proving popular with governments: in addition to general stimulus packages, fisheries-specific income support measures are being implemented in the United Kingdom, the United States, Canada and Japan among others.2 Within the European Union (EU), these programmes are taking advantage of changes to EU regulations on state aid, which have doubled the ceiling for individual instances to EUR 120 000 (USD 130 360),3 and provided additional flexibility on the use of funds from the European Marine Fisheries Fund (EMFF). In Korea, the government has set aside KRW 3 billion (USD 2.4 million) to provide low interest (1.3%) loans to aquaculture households and fisheries businesses facing cash flow difficulties due to COVID-19. Fee waivers and deferrals are also being used to reduce costs to fishers. For example, in Australia all fees in Commonwealth fisheries for 2020 have been waived; likewise, in Canada, the Nova Scotia Fisheries and Aquaculture Loan Board has deferred all fees until the end of June.
Benefits can also be given in exchange for permanent or temporary capacity reduction, such as through decommissioning schemes or payments for early retirement. The crisis has prompted temporary changes to the EMFF allowing EU Member states to pay fishers and aquaculture producers for a reduction or cessation in production. Ireland, for example, is now offering a voluntary scheme designed to support fixed costs incurred by vessel owners while their fleets are tied up, which will operate from June to August.4 Such efforts can help to stabilise prices and reduce oversupply in depressed markets. These measures are also sometimes used with a view to protect quota availability for later. Whether they lead to longer term reductions in fishing pressure, and ultimately to healthier fish stocks, therefore depends on whether they are implemented in ways that do not allow fleet re-capitalisation, or whether they in effect simply postpone fishing effort.
In addition to direct support to individuals and companies, governments can finance services to the fisheries sector, which benefit the sector as a whole, or some of its segments. Services that target fishers’ ability to operate their businesses by promoting market diversification may prove helpful in the present context. This is particularly important for countries where fish production is largely export oriented, and which have therefore been particularly affected by the COVID-19 crisis. Initiatives to support the development of new markets and the promotion of seafood consumption domestically have been implemented by governments in Australia, Japan, the United Kingdom, Chile, China, Peru, Thailand and Indonesia.
These efforts have been complemented, in several places, by support for airfreight to maintain important international routes for high-value products, such as rock lobsters in Australia and New Zealand, which have suffered disproportionately from the collapse of air travel. The fish sector also benefits from wider measures taken to facilitate trade-related processes and border formalities such as acceptance of digital versions of required certificates, or 24/7 clearance for food goods in major ports (OECD, 2020[5]).
Governments are also increasing support to help fisheries make up for lost demand. Campaigns to encourage the consumption of local fish have been organised in many countries; in Costa Rica, for example, they have been complemented by support for direct sales programmes.5 Funds are also being allocated to market diversion initiatives such as purchasing, transporting and storing of species that are experiencing large declines in demand and prices due to COVID-19; in Japan, for example, about USD 30 million have been set aside for such measures. Removing production from the market temporarily, including through cold storage, is important for aquaculture products where demand has decreased but production cannot be easily slowed or stopped. Such efforts will also help reduce loss and waste of fish products across the supply chain.
Many of the programmes currently being adopted are time limited. For example, in the United Kingdom, the GBP 9 million (USD 11.1 million) grant-making fund for fisheries is currently limited to three months, and the changes to the EMFF expire at the end of 2020. It is crucial that support programmes designed to offset the impacts of COVID-19 on the income of actors in the fisheries and aquaculture sector do not become permanent entitlements, which could result in increased fishing pressure and unfair competition.
The impact of the pandemic is likely to vary significantly among and even within countries, across communities, fisheries, and value chains. To target support to those who need it most, it is crucial that governments continue to invest in monitoring the economic and social impacts on fisheries and aquaculture production systems, associated supply chains, and fish consumption patterns.
Finally, it is important to recall that support policies generally lead to more benefits for fishers and are less likely to encourage unsustainable fishing when an effective management system is in place (in particular with limits on total allowable catch) (Martini and Innes, 2018[4]). Understanding the impacts of the pandemic on fisheries management systems is crucial and countries will also need to continue to invest in science-based stock management and measures to counter IUU fishing.