Falkland Islands. Figure FI-1. The Falklands Interim Conservation and Management Zone (FICZ) and the Falklands Outer Conservation Zone (FOCZ).

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1 Falkland Islands The Falkland Islands are a UKOT in the South Atlantic, approximately 350 nautical miles off the coast of South America between 51 and 53 south. The islands have a population of around 3000 and are self governing, with an elected Legislative Assembly. The UK Government is responsible for foreign affairs and defence. Executive authority is exercised by the Governor of the Falkland Islands (on behalf of the Queen), who acts on the advice of the Executive Council. The Falklands Interim (also know as Inner) Conservation & Management Zone (FICZ) was created in 1986 (and became effective on February 1 st 1987) to regulate the activities of foreign fishing vessels and raise licence revenue. The FICZ extends 150 nm from a point in the centre of the islands. The Falklands Outer Conservation Zone (FOCZ) was established in December 1990 and extends fisheries management jurisdiction to 200 nautical miles from baselines, except where there is overlap with neighbouring jurisdictions. The combined area of the FICZ and FOCZ is around 551,000 km 2. The Falkland Islands Fishery Department (FIFD) was established to manage the FICZ, but following the amalgamation with the agriculture department in October 2009 it is now known as the Directorate of Natural Resources Fisheries (DNR-F). Figure FI-1. The Falklands Interim Conservation and Management Zone (FICZ) and the Falklands Outer Conservation Zone (FOCZ). 1

2 The Patagonian Shelf is the boundary between the southern temperate ecosystem and the sub- Antarctic ecosystem and the associated fronts make the shelf one of the most productive regions in the south-west Atlantic. In particular, the confluence of the cold, north-flowing, Falkland Current (Figure FI-1) and the warm, south-flowing, Brazil current makes the area particularly productive. Abundant zooplankton in these frontal areas attract nektonic fish and squid that migrate seasonally to feed. The FICZ and FOCZ cover a large area of the Patagonian Shelf and many of the fish stocks are straddling stocks that are shared with neighbouring maritime jurisdictions (Argentina, Chile & Uruguay), which complicates management. That management is further complicated by the on-going sovereignty claims of Argentina. A South Atlantic Fisheries Commission (SAFC) was established in 1990, which brought together scientists and fishery managers from Argentina, the UK and the Falklands. Between 1990 and 2005 the SAFC facilitated the exchange of fisheries data, joint research cruises, joint scientific analysis, and recommended coordinated conservation advice to respective governments. Argentina disengaged from this process in 2005, in protest at the new ITQ system, and since then it has not been possible to maintain a co-operative approach to fisheries conservation. 1. Falkland Islands fisheries and licences The Falkland Islands fisheries have ten principal target species or species groups (Table FI-1), with nine categories of licence (Table FI-2). The fishery in the Falkland Islands conservation zones is unique in that it is primarily based on the short-lived squid Illex argentinus and Doryteuthis gahi. Fisheries for the two species of squid (Illex argentinus and Doryteuthis gahi) are the most important in terms of total catch (71%) and revenue (78.4%) (Tables FI-1, FI-2). In terms of catch, the most important species of finfish is rockcod (14% total catch). The two squid species and Patagonian toothfish are each managed as single species targeted fisheries, but the other species are managed in mixed trawl fisheries. Table FI-1. Principal target species in Falklands fisheries Common name Scientific name Mean annual catch ( ) % of total catch Short-fin squid Illex argentinus 194, Long-fin squid Doryteuthis gahi 44, Southern blue whiting Micromesistius australis 2, Kingclip Genypterus blacodes 3, Red cod Salilota australis 4, Hoki Macruronus magellanicus 13, Hakes Merluccius australis / 13, Merluccius hubsi Patagonian toothfish Dissostichus eleginoides 1, Rock cod Patagonotothen ramsayi 47, Skates & rays Rajidae 6, The average ex-vessel value of annual catches since 2001 is estimated between 200 million and 250 million (Harte & Barton, 2007), so, on average, licence fees (Table FI-2) represent around 10% of the ex-vessel value of catches. The Falklands fishing sector contributes 30-40% of the territory s GDP. 2

3 Table FI-G2. Licence types and revenue Type Species / group Gear Mean annual revenue ( ) % of total revenue A Unrestricted finfish Bottom trawl 1,129, B Short-fin squid (Illex) Jigger 10,188, C Doryteuthis (1 st season) Bottom trawl 2,133, F Skates & rays Bottom trawl 247, G Short-fin squid & fish Bottom trawl 845, L Patagonian toothfish Demersal longline 836, S Blue whiting & hoki Trawl 132, W Restricted finfish Bottom trawl 1,341, X Doryteuthis (2 nd season) Bottom trawl 4,242, TOTAL 21,096, General Fisheries Management 2.1 Legislation In 2005 the original 1987 Fisheries Ordinance was repealed and replaced with the Fisheries (Conservation and Management) Ordinance 2005 (FCMO). The FCMO addresses all aspects of fisheries management and conservation in the FICZ and FOCZ and deals with any Falklands registered vessels fishing on the high seas or under other jurisdictions. The FCMO provides for the appointment of officers, including the Director of Fisheries, who is responsible for the conservation and management of fisheries and for implementing the ordinance. The FCMO requires the Director of Fisheries and all persons exercising duties or powers under the Ordinance to take into account the following environmental principles: (a) associated or dependent species shall be maintained at or above a level that ensures their long term viability; (b) biological diversity of the marine environment shall be maintained; and (c) habitats of particular significance for fisheries management shall be protected. The FCMO also requires that decisions be taken on the basis of the best available information, that uncertainty be taken into account and that decision-makers be cautious when information is uncertain or unreliable. Under the FCMO, the Director of Fisheries may establish Sustainability Measures for one or more stocks. To date Sustainability Measures have only been published for the toothfish fishery 1 and include the harvest strategy and target and limit reference points. 1 Sustainability measures exist in other fisheries to varying extents, but toothfish is the only fishery with a published document that details the measures. 3

4 2.2 Licensing system The enactment of the FCMO in 2005 facilitated the introduction of an Individual Transferable Quota (ITQ) system. This system gives long-term access rights to Falkland Island companies and was intended to encourage investment in the fishery (Harte & Barton, 2007a,b). The anticipated benefits included greater investment and diversification by fishing companies and greater environmental awareness and stewardship. ITQ ownership is restricted to companies that are 100% owned by Falkland Island status holders, who are resident in the islands. Such ITQ rights can last a maximum of 25 years. In addition to ITQ rights, the Director of Fisheries can also grant Provisional Quota (PQ) rights, which give a fishing right for a maximum of 5 years. To be eligible for PQ rights a company must be at least 25.1% owned by persons who are resident in the Falkland Islands and who have Falkland Island status. The FCMO requires that companies holding ITQ rights satisfy three tests : (i) (ii) (iii) The company will be in effective control of how its ITQ rights are used; The company will be actively involved in one or more of taking, processing or selling fish commensurate with the level of its business activity; The company s income and economic returns from taking, processing and sale of fish represents a sufficient return on the value of the rights held and does not, over a reasonable period, represent a significantly lower rate of return than that received by holders of similar rights, known as the economic efficiency test. The holder of ITQ or PQ has the right to a proportion (termed Catch Entitlement (CE)) of the Total Allowable Catch or Total Allowable Effort in that fishery. In practice most of the fisheries are based on effort rather than catch limitation, which reflects the effort-based management of the squid and finfish fisheries. For each fishery ITQ or PQ rights were, in general, allocated on the basis of historical involvement in that fishery. The ITQ, PQ or Catch Entitlement is not, in itself, an authorisation to fish. Fishing is authorised by a licence issued under the FCMO. The ITQ system was reviewed in 2015 (FIG Policy Unit, 2015). The review noted that the ITQ system has delivered tangible benefits to the island and fishing companies, but the industry still does not contribute much to employment ashore or at sea. In addition to licence fees, fishing companies contributed 1-4 million a year in corporation tax. Based on data provided by ITQ holders, toothfish, Doryteuthis and finfish ITQ have different levels of profitability, with toothfish operating at a good profit margin. Doryteuthis and particularly finfish are more marginal. The only fishery that is not currently part of the ITQ system is the short-fin squid (Illex) fishery, but there is a consultation currently underway to determine if, when and how the ITQ system could be implemented for the Illex fishery. In the meantime, the existing single season licence scheme will continue for the 2017 season. Fishing licences are subject to conditions. For each fishery the licence comes in three parts: (i) (ii) (iii) Part 1 is the licence itself and includes, the names of the ITQ holder, the vessel owners and catch or effort limits; Part 2 are fishery specific conditions and include fishing areas, technical measures (e.g. mesh sizes) and seabird mitigation; Part 3 deals with conditions common to all licence categories including daily reporting, vessel conditions & safety, VMS and AIS, catch verification and by-catch move on rules. 4

5 3. Fisheries Science In the early years of the fisheries, aspects of fisheries management were out-sourced with the Renewable Resources Assessment Group (RRAG) at Imperial College contracted to do stock assessments and advise on fisheries management. Since 2008 stock assessments and fisheries science have been undertaken by FIFD (now DNR-F) scientists, with RRAG continuing to provide support and advice until DNR-F employs a Senior Scientist, an Observer Co-ordinator, 5 fisheries scientists and a Data Analyst. The FIFD has a contract with a local fishing company to provide a suitable vessel (Castelo) for trawl / research surveys and has a longstanding observer programme. The observer programme employs 6 fisheries observers, plus one seabird observer. Fisheries observers are employed on contracts of a year (or more) and are well trained and overseen by an experienced observer coordinator. Fisheries observers collect catch/effort and biological data, conversion factor data, and seabird / marine mammal interaction and mortality data from all fleets and fisheries. The seabird observer primarily works on seabird and marine mammal interactions in the finfish fishery. Observers also monitor activities of any Falkland flagged vessels operating on the high seas just outside the FOCZ. 4. General Environmental Management 4.1 Fishing methods The principal fishing methods used in the Falklands are bottom trawling, jigging and longlining. Around 50 bottom trawlers, 100 jiggers and one longliner operate in the FICZ and FOCZ each year. Whilst longlining and particularly jigging are selective fishing gears, bottom trawling is unselective and can be damaging to benthic environments. Bottom trawling is undertaken on almost all parts of the continental shelf of the FICZ. The unselective nature of bottom trawling and associated damage to benthic habitats is well documented, but no specific impacts studies have been undertaken in Falkland waters. 4.2 Fish and squid by- catch Under licence conditions (Part C) vessels are not allowed to catch more than 10% (daily aggregate) of any by-catch of species for which the vessel is not authorised to fish. If the by-catch exceeds 10%, the vessel must change fishing area. The conditions do not specify how far a vessel must move or for how long it must remain away from the location, but in practice vessels are required to move out of the grid square Seabird Issues The Falklands are home to large populations of flying seabirds, which frequently associate with fishing vessels. Of particular concern are black-browed albatross (Thalassarche melanophris), which are listed as Near Threatened by the IUCN and have a high proportion of their global population (around 70%), breeding in the Falkland Islands. 2 Each grid square is 0.5 of longitude by 0.25 of latitude. 5

6 The issue of seabird mortality in Falkland Islands fisheries was first acknowledged in the early 1990s, with the most affected species being the black-browed albatross. Initial work focused on the longline fishery, where mortality was obvious (birds caught on hooks) and was addressed through mitigation measures such as longline weighting and the use of streamer lines. The development of mitigation involved cooperation between industry and scientists and drew on methods used in CCAMLR waters. The switch from the Spanish longline system to the trotline (umbrella) system in 2007 also reduced the risk to a negligible level, as each clump of hooks is associated with a weight and thus sinks quickly. Seabird mortality associated with trawling is less obvious, but work undertaken by the Seabirds at Sea Team in 2002/2003 highlighted that trawl fisheries were causing significantly more seabird mortalities than longline fishing activities in Falkland Islands waters. Consequently, the Falkland Islands National Plan of Action for Reducing Seabird Mortality in Trawl Fisheries (FI-NPOA-S-T) was created in 2004 (Sullivan, 2004) and adopted by the Falkland Islands Fisheries Department (FIFD). This NPOA was the first to be written for a United Kingdom Overseas Territory, and amongst the first globally to cover trawl fisheries. The FI-NPOA-S-T was revised in 2009 (Sancho, 2009) and again in 2014 (Quintin & Pompert, 2014). The primary objective of the Action Plan is to strive towards elimination of seabird mortalities in the Falkland Islands fishing fleet. Following the initial assessment the use of bird scaring lines (BSLs) or Tori lines became mandatory in the finfish fishery in This immediately reduced the estimated mortality, but since then levels have fluctuated. The relatively low level of observer coverage and the difficulties in ascertaining seabird mortality are the main factors affecting the robustness of the estimates (Quintin & Pompert, 2014). In the demersal mixed finfish fleet, where interactions are greatest because of the level of fish waste and discards, FIFD fishery observers are required to observe shooting, trawling and hauling operations on every fourth day of fishing activity to detect seabird mortality associated with fishing gear and to monitor the performance of the tori lines. In 2010 a dedicated seabird observer post was created to investigate tori line performance and identify where improvements could be achieved, as well as to increase the number of seabird interaction monitoring days. For the period of July 2014 to June 2015, observations of seabird interactions with the demersal finfish fleet were conducted on 98 days (3.3%) and 35 seabird mortalities recorded, which extrapolates to 1003 mortalities for the year (estimated to include 887 black-browed albatross; 61 giant petrels and 55 grey-headed albatross) (FIG, 2015). In the long-fin squid (Doryteuthis) trawl fishery, two mortalities of high-risk species (both blackbrowed albatross) were recorded from the total of 43 observed days (2.1%), which gives an extrapolated estimate of 95 mortalities for the year (FIG, 2015). In addition to the observed mortality, 1,710 heavy contacts between high-risk species and fishing gear were observed in the year, during 98 fishing days (3.3 % of fishing effort) which extrapolates to 52,277 heavy contacts across the trawl fisheries. Approximately half of those contacts were with tori lines and 98.5% resulted in no apparent injury. The majority of the remainder (around 50%) were warp strikes, which resulted in injury ranging in severity from minor to major, this extrapolates to an estimated 12,676 of potential injury to high risk species (FIG, 2015). The main species affected is the black-browed albatross, which is classified as Near Threatened by the IUCN. Whilst Falkland Island populations of black-browed albatross are not declining, there are significant declines in South Georgia black-browed albatross, which also forage on the Patagonian Shelf (Phillips et al., 2008). Warp strikes are positively correlated with discarding. Finfish vessels typically have greater discarding given onboard processing and discarding of offal. Squid fisheries have lower fish by-catch and no processing. Ultimately the elimination of seabird mortality can only be achieved by effective 6

7 discard management. Discard management that could be considered includes batch discard, minced or processed discard, discard retention or discarding when trawl warps are not in operation 3. It is also important to ensure that nets and decks are cleaned prior to shooting to avoid the risk of seabird mortality in the nets. 5. Surveillance and Monitoring 5.1 Data and position reporting All vessels fishing in the FICZ or the FOCZ are required to report their position (twice a day) and catch (daily) to the FIFD. In addition, all vessels must have a satellite Vessel Monitoring System (VMS) on board and have a Class A Automatic Identification System (AIS). The VMS and AIS are monitored by shore-based Fishery Officers (in FISHOPS). 5.2 Patrolling The MV Protegat, which is a converted jigger/longliner, carries out around 26 patrols per year of days duration each. The patrol vessel carries a Fishery Protection Officer (FPO) and targets the prime fishing grounds, some of which vary seasonally. The FPO is responsible for directing the patrol activities and undertake inspections of the licensed vessels. During 2015 a total of 107 at-sea inspections were undertaken, with the majority being on jiggers (B licences) (Table FI-G3). The patrol vessel costs approximately 2.8 million a year to operate. Figure FI- 2. The fishery patrol vessel Protegat. In addition the Falkland Islands Government Air Service (FIGAS) undertakes 80 hours of surveillance per year on behalf of the Fisheries Department. This surveillance is targeted at the main concentrations of fishing activity or any reports of unusual fishing activity. Table FI-G3. At-sea inspections undertaken from the patrol vessel for each fishery B - Illex A, F, W, G - Finfish C/X - Loligo L - toothfish New vessels due to enter the fishery are all being fitted with better waste storage and discard systems which will allow waste discharge to managed to a much greater degree (John Barton, pers. comm.). 7

8 6. Fishing vessel safety Fishing vessel safety requirements are detailed in Part C of the Licence Conditions. All vessels must have a flag-state safety certificate and must have sufficient life jackets and survival suits for all on board. The vessel must also have sufficient life raft capacity for all on board. The conditions were updated in 2016 to include the requirement that fishing operations and crew management and relations be conducted in accordance with Articles 8, 25, 26 & of the Work in Fishing Convention (2007). The requirements for partial compliance with the Work in Fishing Convention follow a number of fatalities when crew jumped overboard from jiggers. The reason why crew jumped over-board is far from certain, but may be related to conditions on board or the treatment of crew by officers. The most recent incidents were in February 2015, when 2 men jumped overboard from one Taiwanese jigger and seven jumped from another. Of these, seven (from one jigger) were rescued, whilst one body was recovered from the other jigger, with one crew missing. Whilst the inclusion of some Articles of the Work in Fishing Convention 4 is welcome, it is not clear why other Articles are not required. This could be further strengthened by requiring all vessels to comply with the provisions of the Torremolinos Protocol on Fishing Vessel Safety. All UK-flagged vessels will already meet this standard, but it would ensure similarly high standards on other vessels. 7. Consultations, transparency and availability of data The FCMO establishes a Fisheries Committee, whose role is to advise the Director of Fisheries on the exercising of his powers under the ordinance. Under the FCMO, the Fisheries Committee is comprised of two elected members of the Legislative Council (MLAs), the Director of Fisheries and other public officers, representatives of fishing or other interests selected in such manner as the Governor may determine. The committee is currently comprised of two MLAs (the Natural Resources Portfolio Holder and Deputy Portfolio Holder, the Director of Natural Resources, the Senior Scientist and the Marine Officer, plus four members of fishing industry. Meetings are open to the public (at least in part) and minutes made available, but the committee would benefit from formal participation of at least one environmental NGO. The FCMO (Section 191) also established a representative body for the fishing industry, the Falkland Islands Fishing Companies Association (FIFCA), and a levy to fund the FIFCA. Membership is not compulsory but is open to all companies that hold ITQ or PQ for any fishery. In practice all companies that hold ITQ in established fisheries have joined. The levy may be imposed on quota holders in a fishery but to date has not been applied, as FIFCA has raised funds through its internal processes and by agreement among members. Public consultations are undertaken on key policy decisions. For instance there has recently been a consultation on if, how and when the ITQ system could be extended to the short-fin squid. The FIFD web-page is a useful resource and provides access to survey reports, stock assessments for Doryteuthis gahi, annual licensing advice and the statistical bulletin. Whilst the statistical bulletin is very useful, it has followed a similar format for many years and could provide further useful data. In particular, it would be useful to include a breakdown of the quantity of each species caught for each type of licence. 4 The convention has not been ratified by the UK. 8

9 With the exception of Doryteuthis, and possibly Patagonian toothfish, the exploited stocks straddle the Argentine EEZ and, in some cases high seas areas. Since the breakdown of the SAFC, the FIFD (DNR-F) have undertaken stock assessments in relative isolation and are not able to properly assess many of the stocks. The re-establishment of the SAFC, or a similar arrangement, is essential to ensure the sustainability of the migratory species that are fished in the FICZ and FOCZ. This should be a priority for the UK Government, particularly in light of the manifesto commitment to a blue-belt in the UKOTs. Whilst the sustainability and management of the Patagonian toothfish has been subject to external audit and evaluation under the Marine Stewardship Council certification process, the other fisheries have not. The management approach for the Doryteuthis stock appears to work for the target species, but there is little consideration of the ecosystem impacts. The fisheries management system for all species would benefit from regular external peer review. 8. Summary The Doryteuthis and Patagonian toothfish fisheries are generally well managed (see specific sections), but that management should be subject to regular external review. In the absence of a regional fisheries agreement or organization, the management of the straddling stocks is difficult. It is essential to the long-term sustainability of the straddling stocks that the South Atlantic Fisheries Commission, or similar, is re-established. The use of bottom trawling is ubiquitous in the FICZ and bottom trawling is well documented to have serious impacts on benthic habitats and non-target species. In the long-term DNR-F should consider a move to more selective fishing methods (e.g. pelagic trawling for Doryteuthis, longlining for kingclip) and the creation of areas that are closed to bottom trawling 5. The MSC Certification of the toothfish fishery provides a regular audit of the management of that fishery, but a regular external review (perhaps on a five year cycle) of the management of all the fisheries would be advisable and potentially bring new ideas to the management of the fisheries. Whilst the FCMO sets out the broad principals for the management of fisheries, with the exception of toothfish (Sustainability Measures) there is no specific management plan for any of the fisheries. It would be useful to publish a management plan, including specific targets and objectives, for each fishery. The recent addition of Articles 8, 25, 26 and of the Work in Fishing Convention (2007) as mandatory licence conditions is welcome. It would be useful to consider gradually strengthening this to include other Articles and, ultimately, compliance with the provisions of the Torremolinos Protocol on Fishing Vessel Safety. 5 Some closed areas and the development of marine nature reserves are being considered as part of the Marine Spatial Planning project. 9

10 Strengths The fishery is underpinned by strong legislation and organisational structure. The fishery has an excellent range of surveillance, including the patrol vessel, FIGAS flights, AIS and VMS. The fishery department has a good range of skilled staff with a well-established observer programme. The FIFD web-site provides a good range of information on the fishery, including annual statistical bulletins and Doryteuthis stock assessments. There is good co-operation between fishing industry and scientists, particularly in addressing seabird mortality issues. The requirement for vessels to comply with Articles 8, 25, 26 and of the Work in Fishing Convention (2007). Weaknesses The lack of a regional fisheries management organisation is the major concern for the management of straddling stocks such as Illex and most of the finfish. Lack of regular external review of stock assessments and fisheries management. Uncertainty about the status of some of the bycatch species. Although there is a seabird National Plan of Action and considerable work being undertaken, there is still significant seabird mortality in the trawl fisheries. Bottom trawling occurs throughout the FICZ and can cause significant damage to habitats and nontarget species. Long-term strategies to move away from bottom trawling or have areas closed to this type of fishing should be considered. By-catch move-on rule does not appear to require a minimum distance or time period following a trigger. Compliance with the provisions of the Torremolinos Protocol on Fishing Vessel Safety is not mandatory. 9. Recommendations 1. Seek (with UK Government) the re-establishment of the South Atlantic Fisheries Commission to enable regional management of stocks. 2. Seek an external peer review of stock assessment and management for all fisheries, ideally on a regular cycle. 3. Consider gradually extending the requirements for fishing vessel safety to include compliance with the provisions of the Torremolinos Protocol on Fishing Vessel Safety. 4. Develop a strategy to minimise the impacts of the fisheries on non-target species and on the benthic fauna. 5. Develop fishery management plans that include targets and objectives for each fishery. 10

11 10. References Harte M. & Barton J. 2007a. Reforming management of commercial fisheries in a small island territory. Marine Policy 31, Harte M. & Barton J. 2007b. Balancing local ownership with foreign investment in a small island fishery. Ocean & Coastal Management 50, Falkland Islands Government, Stanley. Fisheries Department Fisheries Statistics, Volume 20, 2015, 94pp, FIG Policy Unit, A Review of the Individual Transferable Quota System in the Falkland Islands. Phillips RA, Croxall JP, Silk JRD & Briggs D, Foraging ecology of albatrosses and petrels from South Georgia: two decades of insights from tracking technologies. Aquatic Conservation: Marine & Freshwater Ecosystems, 17, S6-S21. Quintin M & Pompert J Falkland Islands National Plan of Action for reducing incidental catch of seabirds in trawl fisheries, 2014 (FINPA-S-T-2014). Falkland Islands Government, December Sancho E Falkland Islands National Plan of Action for reducing incidental catch of seabirds in trawl fisheries. Falklands Conservation, Albatross and Petrel Program, Sullivan B Falkland Islands Plan of Action for Reducing Incidental Catch of Seabirds in Trawl Fisheries. In: Falklands Conservation. Falklands Conservation, Stanley,

12 Falkland Islands Patagonian toothfish fishery Gear: Demersal longline 2015 TAC: 1040 tonnes 2015 catch: 1232 tonnes 1. Target species The Patagonian toothfish (Dissostichus eleginoides) is found on the Patagonian Shelf and slope and around many sub-antarctic islands, including South Georgia and the Kerguelen Archipelago (Collins et al., 2010). The Patagonian toothfish reaches a large size (2 m), but has a distinct bigger-deeper trend with adults generally found in deep-water (> 500 m). The large size and high quality flesh make the species an attractive target for fisheries and precipitated the development of a valuable longline fishery, targeting large adult Patagonian toothfish in deep water at high latitudes in the Southern Hemisphere (Collins et al., 2010). In the Falklands region, Patagonian toothfish are found throughout the FOCZ and FICZ, with juveniles in shallow water and adults in deeper areas of the continental slope. The main spawning ground of the Patagonian Shelf stock is thought to be the Burdwood Bank (Laptikhovsky et al 2006), which spans both Argentine waters and the FOCZ, such that recruitment to both fisheries is likely to come from this region. 2. The Fishery The Falkland Islands Patagonian toothfish fishery uses bottom longlines set with the trotline and umbrella system (see Collins et al., 2010). The lines are set with squid (Illex argentinus) or sardine bait and are typically left hours before being hauled. The fishery operates to the east of the Falklands (Figure FI-T1), with key fishing grounds, to the SE and NE of the Falkland Islands. Fishing is not permitted at depths less than 600m. There is a single operator in the fishery, with one vessel. Figure FI-T1. The FICZ and FOCZ showing the fishing grounds for Patagonian toothfish and the closed area on the Burdwood Bank. 12

13 For 2015, the TAC for the longline fishery was set at 1040 tonnes, which, with some carry-over from the previous year, gave a total catch of 1123 tonnes. A further 109 tonnes was caught in the zone as by-catch in trawl fisheries. The CPUE increased slightly on the previous year (around 500 g / hook or 5.2 tonnes / day), with extremely good catch rates in December. Table FI-T1. Details of the Patagonian toothfish fishery from 2012 to TAC (longline) Days fished Longline catch CPUE tonne/day Trawl catch Total catch Observer days Observer coverage Brief history of the fishery The Falkland Islands Patagonian toothfish longline fishery was established in 1992, when FIG authorised exploratory fishing for toothfish within the FICZ and FOCZ. The local fishing industry responded by forming a new company, Consolidated Fisheries Ltd (CFL), in which most of the main local fishing companies were shareholders. CFL started fishing on an exploratory basis using chartered Chilean vessels during Once the viability of the fishery had been established, the company bought the autoliner CFL Pioneer in The autoline gear operated by this vessel proved unsuitable for the fishing grounds and the vessel was converted to a Spanish longline system in In 2000 the CFL Valiant was purchased and eventually replaced the CFL Pioneer. In 2004, CFL bought the vessel CFL Gambler, which also used the Spanish longline system. The Gambler and Valiant operated in the fishery until 2008, when the TAC was reduced from 1,500 to 1,200 tonnes per annum. During the period the CFL Gambler was, for the most part, the only vessel operating in the fishery. In 2011 CFL chartered another Spanish-system vessel, the Tronio, as the CFL Gambler had been unable to catch the TAC allocation. Prior to 2006, there were no catch limits, but a limit on effort. This resulted in average catches of around 2000 tonnes per year (Figure FI-T2). In 2006, the current ITQ system was introduced, with a TAC of 1500 tonnes. In the same year a seasonal closed area was established on the Burdwood Bank to protect spawning fish during the main toothfish spawning period (1 st July 31 st August). In 2007, in response to depredation from cetaceans (sperm and killer whales), the fishery switched to using trot-lines with cachaloteras or umbrellas (see Collins et al., 2010). The TAC was reduced to 1200 tonnes in 2011 and further reduced to 1040 in In 2014 the closed area on the Burdwood Bank was increased. 6 A 15% carry over from the previous year may be allowed at the discretion of the Director of Fisheries, hence the catch in a year can exceed the longline TAC limit in a single year but not in the longer term. 13

14 Figure FI-T2. Catches of Patagonian toothfish in Falkland Island fisheries since Sustainability of the target species 4.1 Stock The Patagonian toothfish caught in Falkland Island waters are part of the Patagonian Shelf stock that is also caught in Argentinean and possibly Chilean waters. The Burdwood Bank appears to be a common spawning ground for fish in both Falklands and Argentinean waters (Laptikovsky et al., 2006). Genetic studies have demonstrated that the Patagonian Shelf population is distinct from that at South Georgia (see Collins et al., 2010). In their MSC assessment, Andrews et al. (2014), concluded that although they share a common spawning ground, the Argentine and Falkland stocks are essentially separate. This conclusion was largely based on the restricted movements of large adult fish and was subject to an objection during the certification process. As part of the Client Action Plan to address the stock status question FIFD / CFL commissioned a report (Parker, 2015) to review stock structure and identify appropriate tools to address the issue. The report recommends that work be undertaken on tagging (conventional and satellite), otolith microchemistry and regional demographics to provide evidence of stock structure. 4.2 Harvest Control Rules The harvest control rules are included in the Toothfish Sustainability Measures, but differ slightly from those outlined in the MSC Public Certification Report. The principal target is to maintain the spawning stock biomass (SSB) at 50% or higher of the virgin SSB (SSB 0 ). The harvest control rules include a number of actions to be taken if the SSB is significantly less or greater than the target (see Figure FI-T3). 1. If there is sustained (at least 3 years) period of SSB/SSB 0 being greater than 0.5 an increase in TAC will be considered by the Director of Fisheries, guided by biological and model trends; 2. Threshold: If SSB/SSB 0 is , the Director will consider tightening of harvest controls and/or additional conservation measures, guided by biological model trends. This is 14

15 the threshold area (Figure FI-T3). Response in the fishery should be seen within 6 years and achieve an acceptable probability of success, based on model projections. All data and decisions will be reviewed annually; 3. Trigger Point: If SSB/SSB 0 falls below 0.45 the Director will impose further tightening of harvest controls and additional conservation measures with the aim of re-building the stock, guided by biological and model trends. Response in the fishery should be seen within 6 years and achieve an acceptable probability of success, based on model projections. All data and decisions will be reviewed annually. 4. Limit Point: If SSB/SSB 0 falls to 0.2 or less, the fishery will be significantly scaled down 7. Harvest Control % 45% 50% F / F msy Limit Significant reductions Trigger Point Reduce TAC. Increase conservation measure Threshold Consider reducing TAC Target Reference point Minimum 3 yrs of > 50% Consider increasing TAC SSB current : SSB 0 Figure FI-T3. Diagrammatic representation of the Harvest Control Rules in the Patagonian toothfish fishery. According to the MSC Public Certification Report (Andrews et al., 2014) the trigger reference point at 0.45 of unexploited spawning stock biomass would result in a 20% reduction in TAC. A 15% carry-over of the TAC may be allowed from year to year at the discretion of the Director of Fisheries, but cannot be accumulated. 4.3 Stock Assessment Methods Since 2011 stock assessments have used an age-structured production model (ASPM), implemented in CASAL (Bull et al., 2012). CASAL provides a framework for maximum likelihood and Bayesian model fitting to CPUE, catch, age, size, tagging and maturity data. The stock assessment is updated on an annual basis. The assessment in any year utilises data up to the end of the previous year and evaluates the TAC for the following year. Thus the 2015 assessment uses data to December 31 st 2014 and generates a TAC for The model estimates the maximum sustainable yield (MSY) from the stock. This is used to guide the setting of the TAC. A deduction is made from the MSY to take account of the catch from the trawl fishery. This was typically 200 tonnes per year, however taking 200 tonnes of small fish will have a greater impact on the long-term stock status than taking 200 tonnes of adult fish, so that value needs to be adjusted. Such an adjustment has been made since significantly scaled down is rather vague 15

16 The assessments include an adjustment factor to integrate the CPUEs from the umbrella system (post-2007) with the earlier Spanish and autoline systems. Natural mortality was initially included as 0.13, but has since been estimated with the CASAL model at The 0.18 is slightly higher than that used in other toothfish stocks, but could reflect undetected depredation or other unaccounted for mortality (e.g. fishing on the stock by vessels just outside the FOCZ). In 2015, out of zone catches were included for the first time in the assessment. Those catches were estimated to be: (i) 13.6% to 24.8% of longline toothfish catch weigh for the period ; (ii) less than 10% of longline toothfish catch weight in most other years; (iii) zero for the past four years (although there is evidence of significant fishing on the stock just outside the zone; see below). The CASAL model does not include any forward projection of the stock. Such a projection is essential to understand if the current TAC will result in the rebuilding of the stock to the target reference point (see Andrews et al., 2016). This forms part of the MSC Condition 2, which is behind schedule (Andrews et al., 2016). The MSC Public Certification Report (Andrews et al., 2014) indicated that an external review of stock assessment was scheduled for early 2013, but has not yet been undertaken. 4.4 Stock Status At the time of the MSC Certification (2013) the stock was considered stable at around 51% of the unexploited stock size and well above the biomass trigger point (0.45). It was suggested that, with an increase in the abundance of 5 & 6 year olds, there would be an increasing trend in SSB (Andrews et al., 2014). The TAC was maintained at 1200 tonnes. That assessment proved optimistic. Following the CASAL workshop in the Falklands in 2013, the inputs to the model were refined. The assessment undertaken in 2014 (for 2015 TAC) compared two model structures and both indicated that the stock was below the 0.45 threshold level, with the more optimistic model indicating a status of The TAC for 2015 was reduced to 1040 tonnes (13% reduction). The assessment in 2015 (for 2016 TAC) allowed the CASAL ASPM to estimate both natural mortality and the umbrella factor, which is the difference between the CPUE of Spanish longlines and the umbrella system. The model also took account of some historic fishing outside the FOCZ, but no account of any current fishing outside the zone. The SSB/SSB 0 ratio was estimated to be 0.445, but with total biomass still declining slowly. A retrospective analysis of SSB/SSB 0 showed an improving trend, so the TAC of 1040 tonnes was retained. The recent stock assessment models show a major (circa. 45%) drop in CPUE between 2000 and 2005, but the drop in biomass during that period is much less. The cause of this drop in CPUE is not known, but could be related to unreported or unaccounted fishing on the stock (outside the FOCZ). Table FI-T2. Spawning stock status and TAC for the Patagonian toothfish fishery from 2012 to Assessment for the year SSB/SSB Uncertain TAC

17 5. By- catch and non- target impacts 5.1 Fish by- catch Whilst longlining is a relatively selective method of fishing, non-target species are caught. The principal by-catch species in the fishery are grenadiers (Macrouridae), skates and the blue antimora (Antimora rostrata). Grenadiers, which have a well-developed swim-bladder, do not survive the journey to the surface. The grenadier by catch is predominantly Macrourus holotrachys, but also includes M. carinatus. M. holotrachys has not been subject to any form of stock assessment. The catch of grenadiers, in absolute terms and expressed as a percentage of the toothfish catch, has declined in recent years. Brown et al. (2010) noted that the umbrella system has a significantly greater by-catch of grenadier compared to the Spanish system. Table FI-T3. Fish by-catch in the Falkland Islands Patagonian toothfish fishery. Skate Grenadier Antimora rostrata Year Catch Released Catch % % Catch Toothfish Toothfish 2011 No data No data 2012 No data No data 2013 No data No data The reported catch of skate is around 30 tonnes per year, but most captured skate are cut from the line at the surface and released. The cut-off skate are not included in the catch data and their fate is unknown. The total by-catch of species for which the vessel is not authorised to fish must not exceed 10% of the vessel s daily aggregate catch. If the by-catch exceeds 10%, the vessel must change fishing area. If the by-catch continues to exceed 10%, the Master and Owners may be prosecuted by the Falkland Islands Government for breach of this condition. 5.2 Seabird by- catch In common with other toothfish fisheries, seabird by-catch was initially a problem in the fishery. The issue was first addressed in the early 1990s when, following considerable effort by scientists and industry to address the problem, a suite of mitigation measures, was introduced. Mitigation was based on some of the best practice adopted by CCAMLR and included line-weighting requirements and the mandatory use of streamer lines. The introduction of mitigation reduced the by-catch to negligible levels and, with the introduction of the trotline / umbrella system in 2007, seabird by-catch is highly unlikely, as the hooks are set in groups, with each group associated with a weight, which ensures that all baited hooks sink quickly. Problems may remain with hooks being swallowed by seabirds and it has been suggested that this may be a particular problem with trotline vessels (see Phillips et al., 2011). Vessel-specific marked hooks, which have been used in South Georgia waters since 2011 and are now being considered in 17

18 other CCAMLR fisheries, could be used in the Falkland fishery, to help demonstrate best practice in hook management. 5.3 Benthic interactions The impact of longline fisheries on the benthic fauna is difficult to quantify, but is generally considered low compared to other forms of fishing. Some preliminary work has been undertaken on identifying benthic by-catch (Andrews et al., 2014). Loss of the umbrella gear could have impacts on the benthic environment through ghost fishing by the umbrellas. It is not clear if gear loss has been quantified. 6. Management system The Toothfish MSC Public Certification Report (Andrews et al., 2014) stated that FIFD were seeking to establish a system for strategic external review of the management system, but detailed arrangements had not been established at the time of the site visit in November There is no evidence that any form of external review of the management system has taken place. 6.1 Licensing and licence fees The ITQ system (see general section) was introduced in 2006, and since then a single operator, Consolidated Fisheries Limited, has taken all the TAC. Currently one vessel (CFL Gambler) operates in the fishery, but a new vessel is being built (60 m CFL Hunter) and will replace the CFL Gambler in The licence comes with specific conditions including: (i) (ii) (iii) (iv) (v) (vi) Depth restrictions; Seasonal closure of Burdwood Bank; Requirements for seabird mitigation; Conversion factor; Data reporting requirements; Removal of hooks from offal The ITQ entitlement lasts 25 years (until 2031), but there was no initial ITQ fee. There is an annual quota fee. The annual revenue from the fishery is 836,770, which equates to between 700 and 800 per tonne of quota. Given that a tonne of toothfish product has value of around US$25 8 a kilo (headed and gutted) and a conversion factor of 1.6, a catch of 1200 tonnes has a first sale value of 14 million (US$19 million). The licence fee thus represents only 6 % of the first sale value of the catch, which is less that the 10% average across all fisheries and probably explains why it is the most profitable of the Falkland Island fisheries (FIG, 2015). This compares to a fee of around 2000 per tonne in the South Georgia fishery (approx. 20% of first sale value). 8 Recent information indicates prices as high as $34/kg ( toothfish- firms- push- for- higher- quota- with- prices- at- record- high/) 18

19 6.2 Monitoring All licensed vessels are required to report catch and position on a daily basis. Licensed vessels are also monitored using VMS and AIS. The fishing grounds are patrolled on a regular basis (see general section on Falkland Island surveillance). The CFL vessel is subject to independent catch verification, with all catch off-loaded and weighed in Stanley. This is not a licence condition, but the data is provided to DNR-F. This ensures that vessels have not exceeded their catch limit. Although the FOCZ is not part of the CCAMLR area, all catch is subject to the CCAMLR Catch Documentation Scheme (CDS). Under the CDS, the signatories to CCAMLR agreed to only allow toothfish imports that were accompanied by a Dissostichus Catch Document (DCD), which certifies the legality and provenance of the fish at the point of landing, and a Dissostichus Export Document (DED) which accompanies each subsequent consignment of exported fish. These documents are issued by the relevant State Authorities and can be inspected throughout the supply chain both as a hard copy and online. The fishery has approximately 45% observer coverage (i.e. an observer is on the single vessel for 45% of the fishing time; see Table FI-T1). 6.3 Surveillance & Enforcement The Falkland Islands has a dedicated patrol vessel, MV Protegat, which carries a Fisheries Protection Officer (FPO), and undertakes regular patrols of the FICZ and FOCZ. In addition to the patrol vessel FIDF also undertake regular surveillance flights. 7. IUU Some of the principal toothfish fishing grounds are close to the edge of the zone, which means that vessels can, legitimately, fish just outside the zone. Whilst the fishing grounds are regularly patrolled by the Protegat and FIGAS flights, there remains a risk that vessels may, occasionally, venture inside. In 2014 the Korean authorities admitted that one of their vessels, Hong Jin 701 had fished in the EEZs of coastal states in the SW Atlantic in 2013 (CCAMLR, 2014) 9. The vessel was prosecuted by the Korean authorities. In addition to illegal fishing there is a considerable amount of longline fishing taking place on the stock just outside the FOCZ 10. Four vessels regularly fish on the edge of the FOCZ, three of which are shown in Figure FI-T4. Whilst this is not strictly IUU (it is fished under high seas licences from the flag-states) it will impact on the stock and any catches should be taken into account in the stock assessment. In addition to concerns about the target stock, there will be by-catch associated with this activity. 9 The MSC Certification Report states that managers and assessment scientists report that there is no evidence of recent IUU fishing, 10 This is contrary to information in the MSC Public Certification Report (Andrews et al., 2014; para ). 19

20 Figure FI-T4. Three longline vessels fishing just outside the FOCZ between August and October 2016 (data from Satellite AIS MarineTraffic.com. 8. Consultation, Review and Transparency There is clearly considerable co-operation between the DNR-F and the sole operator in the fishery and a detailed research plan is in place. The Sustainability Measures that have been developed for the fishery should be publicly available to allow all interested parties to see the status of the fishery. Whilst the MSC certification provides an audit of the fishery against the MSC principles and criteria, the fishery would benefit from regular peer / external review. The fishery was certified by the Marine Stewardship Council in 2014 (Andrews et al., 2014) with scores of 82.5 (Principle 1), 90.3 (P2) and (P3), but there were some notable errors or omissions in the Public Certification Report, particularly in respect of vessels fishing the stock just outside the FOCZ. Four of the scoring indicators did not reach the 80 threshold and hence the certification came with conditions. The conditions were as follows: (i) (ii) (iii) (iv) Identify a limit reference point and incorporate it into the harvest strategy; Provide evidence that the harvest strategy is robust to the main uncertainties; Identify and, as appropriate protect, any highly sensitive benthic habitats. That relevant information is collected to support the harvest strategy. Condition 1 has been addressed; Conditions 3 & 4 are on target, but Condition 2 is behind schedule (Andrews et al., 2016). 20

21 9. Summary The fishery operates to a high standard of sustainability and safety and is subject to external scrutiny through the MSC certification process. However, there were some notable omissions in the MSC report, particularly in respect of fishing on the stock outside the FOCZ. Such catches (or estimates of them) need to be included in stock assessments. The stock is currently estimated to be below the target level and the existing stock assessment does not include any future projections to determine if the TAC will allow the stock to be rebuilt in the near future. That said, the CPUE in the fishery is stable or rising. However the increase in CPUE could be due to greater knowledge of the fishing grounds or improvements in fishing practices. In general the stock assessment would benefit from a thorough external review (which this is not). The fish by-catch in the fishery is relatively small, but it is not known what the impact is on by-catch stocks. In particular, it is important to ascertain what impact the fishery is having on the grenadier populations. The fate of skate cut from the line needs to be assessed. Although skate survival has been estimated in the South Georgia fishery, the Falkland fishery uses very different gear and survival may be different (likely lower given the likelihood of multiple hooking). Similarly, the sustainability of threatened porbeagle and sleeper sharks is not known. There are some areas where the Falklands and South Georgia fishery could co-operate. Notably the assessment of grenadiers, assessment of benthic by-catch. Strengths DNR-F has developed harvest control rules, although the recent interpretation of these differs slightly from the MSC Public Certification Report. The seabird by-catch issue has been solved by technical measures and use of the trotline system. The fishery is MSC certified and generally well managed. The certification was industry led and involved excellent collaboration between scientists and industry. There is a considerable amount of information publicly available through the MSC reports and the FIFD web-site. It would be useful to see the Sustainability Measures posted on the website. Weaknesses The stock is currently estimated to be below the long-term goal of the fishery of SSB/SSB 0 of 0.45 (45% of un-fished spawning stock). It is not clear if the current TAC will enable the stock to return to the 0.45 level in the near future. Furthermore, the 0.45 target is lower than that used in CCAMLR waters (0.5) or SGSSI (0.55). No account seems to be taken of fishing of the stock outside the FOCZ. There is clear evidence that the stock is consistently targeted by four longliners, albeit with likely low catch rates. There is considerable uncertainty about the stock structure and the relationship between the toothfish on different parts of the Patagonian Shelf. The licence fee is very low (6% of first sale value) compared to the average across all Falkland fisheries (10%). Lack of regular external review of stock assessment. Uncertainty about the status of some of the bycatch species (grenadiers, skates). 21

22 10. Recommendations 1. Undertake an external peer review of fisheries management and stock assessment (the MSC process is an audit and not a peer review). 2. Estimate the amount of toothfish being caught outside of the zone and include this in future assessments and as a deduction from TAC. 3. Develop an assessment or risk assessment for by-catch species, particularly the grenadier Macrourus holotrachys. 4. Implement a tagging programme to gain further information on fish movements and stock structure Evaluate the impact of the fishing gear on the benthos, quantifying any gear loss and considering closed areas to protect vulnerable marine ecosystems Consider the use of marked hooks, to encourage best practice hook management. 7. Consider cooperation with South Georgia Government on benthic and grenadier issues. 11. References Andrews J, Hough A and Medley P Falkland Islands Toothfish Longline Fishery. MSC Public Certification Report, March Andrews J, Hough A & Knuckley I MSC On-Site Surveillance Visit - Report for Falkland Island Toothfish Fishery. April Brown J, Brickle P, Scott BE (2013) Investigating the movements and behaviour of Patagonian toothfish (Dissostichus eleginoides Smitt, 1898) around the Falkland Islands using satellite linked archival tags. Journal of Experimental Marine Biology and Ecology, 443, Brown J, Brickle P, Hearne S & French G An experimental investigation of the 'umbrella' and 'Spanish' system of longline fishing for the Patagonian toothfish (Dissostichus eleginoides) in the Falkland Islands Implications for stock assessment and seabird by-catch. Fisheries Research,106, Bull B., Francis R.I.C.C., Dunn A., McKenzie A., Gilbert D.J., Smith M.H., Bian R., Fu D. (2012) CASAL (C++ algorithmic stock assessment laboratory): CASAL user manual v /03/21. NIWA Technical Report 135, 280 pp. CCAMLR, Report of the thirty-third meeting of the commission. Hobart, Australia. Collins MA, Brickle P, Brown J & Belchier M, The Patagonian toothfish: Biology, ecology and fishery. Advances in Marine Biology 58, FIG Sustainability measures Patagonian toothfish (Dissostichus eleginoides). Fisheries Department, Directorate of Natural Resources, Falkland Islands Government, 15 pp. Laptikhovsky V, Arkhipkin A, Brickle P Distribution and reproduction of the Patagonian toothfish 11 A tagging programme was established in There is some work planned to address this in

23 Dissostichus eleginoides Smitt around the Falkland Islands. Journal of Fish Biology, 68, Parker, S.J Stock discrimination tools for Falkland Islands toothfish. NIWA Client Report NEL , 28p. Phillips RA, Ridley C, Reid K, Pugh PJA, Tuck GN, Harrison N, Ingestion of fishing gear and entanglements of seabirds: Monitoring and implications for management. Biological Conservation 143, Winter, A Stock assessment for Patagonian toothfish in the Falkland Islands Technical Document, Falkland Islands Fisheries Department. 17 p. 23

24 The Falkland Islands calamari (Doryteuthis gahi) fishery Gear: Bottom trawl 2015 catch: 29,492 tonnes 1. Target species The Falkland calamari or Patagonian long-fin squid, Doryteuthis gahi, was only recently moved from the genus Loligo and is still colloquially referred to as Loligo. The Falkland calamari is a slender, demersal, loliginid squid that inhabits the shelf regions of South America from southern Peru in the Pacific to the Patagonian Shelf in the Atlantic. In common with other squid, D. gahi has a short life cycle of approximately one-year with a single terminal spawning event (semelparity). The life-cycle is complex and each year has two distinct seasonal cohorts that use the same feeding and spawning grounds at different times of the year (Patterson, 1988). The autumn-spawning cohort feeds offshore in February April and spawns inshore in May June, whereas the spring-spawning cohort feeds in May September and spawns inshore in October-November (Arkhipkin et al., 2013). Eggs are laid in shallow water and there is an ontogenetic downslope migration, with larger adults inhabiting deeper (max. 300 m) water. Adults migrate back to shallow water to spawn, with males growing larger than females. 2. The Fishery The fishery for Falkland calamari operates in a restricted area to the south and east of the islands called the Loligo Box (Figure FI-D1) and is open in two distinct seasons. The first season runs from February 24 th until April 28 th (64/65 days) whilst the second season is open from July 29 th until September 30 th (64 days). 50 Patagonian Shelf 200m 51 Inshore spawning grounds Loligo Box m Juvenile Mature adults Offshore feeding grounds 54 FICZ Figure FI-D1. A section of the FICZ showing the Loligo Box and the migration patterns of Doryteuthis gahi (reproduced from Arkhipkin et al., 2013). 24

25 The fishery is prosecuted by 16 demersal trawlers ranging in size from 950 to 2849 GRT. There is no mesh size restriction in the fishery. Effort in the fishery is controlled through Vessel Units (VU), which are based on the GRT and catching capacity of the vessels. Table FI-D1. Catches, days fished, CPUE, escapement, risk of the escapement being less than 10,000 and observer coverage in the Falklands long-fin squid fishery st 2 nd 1 st 2 nd 1 st 2 nd 1 st 2 nd 1 st Catch 34,767 35,026 19,908 19,614 28,119 19,630 19,383 10,190 22,616 Days fished Vessel days CPUE (tonne/day) Escapement 19,912 28,336 13,500 25,000 30,500 17,250 10,194 10,703 24,868 Risk Observer coverage (%) In general catch rates (tonnes/vessel/day) and catches are better in the first season, with vessels typically catching over 20 tonnes per day in the first season and tonnes per day in the second (Table FI-D1). The 2015 season was an unusual one, with the larger short-fin squid (Illex argentinus) particularly abundant and this impacted on the Doryteuthis fishery (FIFD, 2016). Abundant short-fin squid, which normally remain in the NW of the FOCZ, entered the fishing grounds of the long-fin squid, dispersing adult squid in the first season and predating on the small squid of the second cohort. As a consequence of this, both seasons of the D. gahi fishery were ended early, and the total catch was just short of 30,000 tonnes. 3. Brief history of the fishery The directed fishery for the Patagonian long-fin squid began in the early 1980s, with Spanish and Polish vessels fishing on the Patagonian Shelf (Agnew et al., 1998). With the establishment of the FICZ in 1987, FIG took responsibility for managing the resource. From the FICZ was separated into two areas, north and south of 51 o 20 S, and licences were issued for the period February to June for Squid North and Squid South. The Squid North licence was predominantly for short-fin squid (Illex argentinus), whilst the Squid South licence was primarily for vessels targeting long-fin squid (Hatfield & des Clers, 1988). From 1990 the structure changed, with the long-fin squid having two seasons and the spatial restrictions refined. Since then the fishery has remained in two seasons, although the duration of the seasons has changed on a number of occasions. The most recent change in season was in 2014, when the season dates were adjusted, with the first season extended by a week and the second season reduced by a week. This was intended to equalise fishing effort on the two cohorts. The ITQ system was introduced in 2006 and, since then, the fishery has been operated by 16 trawlers, most of which are on the Falkland Islands registry. Whilst the long-fin squid fishery is currently undertaken by bottom trawling, in the past some vessels used pelagic trawls fished close to the seafloor. 25

26 The highest catch in the fishery came in 1989, when 119,000 tonnes were caught. Since 2000 annual catches have averaged 45,000 tonnes. Inter-annual variability is probably related to the influence of the environment on recruitment. D. gahi is caught outside of the FICZ, but around 90% of the catches are taken in Falkland Island waters (from FAO figures). Figure FI-D2. Doryteuthis gahi catches in the FICZ since Sustainability of the target species 4.1 Stock discrimination Although Doryteuthis gahi is caught elsewhere off the coast of South America, the stock harvested by the Falkland Islands fishery occurs entirely within the FICZ and so the stock is considered a domestic resource for management purposes (Arkhipkin et al., 2013). There has been some speculation that there may be exchanges with D. gahi in the Argentine zone (Wysokinski, 1996), but there is little evidence to support this. The stock assessment purposes (depletion events) the fishery is divided into northern and southern components, separated at the latitude of 52 o S. 4.2 Harvest strategy The harvest strategy is based on a minimum mean estimated escapement of 10,000 tonnes for each season. The stock is monitored in-season using depletion models and, if the models project that the escapement will drop below 10,000 tonnes, the fishery may be suspended or stopped in advance of the scheduled closure date. Management is complicated by immigration events within the season, so the escapement is determined from depletion following each in-season immigration event. The 10,000 tonne escapement requirement is modified from a previous management requirement to allow 40% escapement, which was based on experience with the Illex argentinus fishery (Agnew et al., 1998). 4.3 Stock assessment Assessing stocks of short-lived species, such as squid, is not possible using standard production models, as they are highly volatile with a very weak stock recruitment 26

27 relationship. In the Falkland Island squid fisheries, the stock is assessed and managed using in-season depletion projections (Roa-Ureta & Arkhipkin, 2007). The models, which include catchability, natural mortality and fishing mortality parameters, project the stock to the end of the season to estimate escapement. In its basic form the depletion model assumes a closed population in a fixed area for the duration of the assessment (DeLury, 1947). However, the assumption of a closed population is not met in the Falkland Islands fishery, where stock analyses have often shown that calamari groups arrive in successive waves after the start of the season (Winter & Arkhipkin, 2015). Fishing on a single, closed cohort would be expected to yield gradually decreasing CPUE, but gradually increasing average individual sizes, as the squid grow. Arrivals of successive groups are inferred from discontinuities in the catch data. Depletion projections are started each time there is evidence of a pulse of recruitment into the area (Figure FI-D3). Recruitment events are principally identified by increases in CPUE, but changes in mean squid size and maturity are also used. The depletion models rely on daily catch reporting at high resolution, coupled with the collection of biological data (mantle length, sex and maturity) by observers (Arkhipkin et al., 2013; Winter, 2016). Daily catch reporting includes data on the commercial size categories, which gives a coarse indication of size. The stock assessment deals with northern and southern components of the stock separately (north or south of latitude of 52 o S) and separate depletions are run for each area. The depletion models are updated on a daily basis to project the stock to the end of the season. Depletion projections in the northern and the southern areas are combined to estimate total escapement. If the projections indicate that the escapement biomass will be less than 10,000 tonnes by the end of the season, the season may be closed early. If the season is to be closed early, vessel operators are given 7-10 days notice to cease operations. The Falkland calamari stock assessment is calculated in a Bayesian framework, whereby results of the season depletion model are conditioned by prior information on the stock - in this case with information from the pre-season survey. The pre-season trawl survey is undertaken on one of the licensed vessels and this generates an estimate of the standing stock, which gives an indication of the abundance of squid and prospects for the season. 27

28 Figure FI-D3. Depletion model of the southern stock of D. gahi in the first season in The grey lines represent immigration events. Day 122 is the last day of the fishery, with escapement estimated at 19,861 tonnes (from Winter 2016). 5. By- catch and non- target impacts 5.1 Fish and squid by- catch Despite being a bottom trawl fishery with no mesh size restrictions, the fishery has relatively little by-catch. The by-catch is generally higher in the second season (6-20%) than the first (3-10%), presumably due to migration into the area of blue whiting and other migratory species. The principal by-catch species are rock-cod, blue whiting (during the second season) and, occasionally in the first season, Illex argentinus. The 2015 seasons were unusual, with large catches of Illex argentinus in the Loligo box during the first season. Table 2. By-catch in the long-fin squid (Doryteuthis gahi) fishery st 2 nd 1 st 2 nd 1 st 2 nd 1 st 2 nd 1 st Doryteuthis catch 34,767 35,026 19,908 19,614 28,119 19,630 19,383 10,190 22,616 Rock cod 1,112 1, , ,817 1, Blue whiting , , Illex argentinus , Red cod Ray Other Total 1,222 2, , ,796 13, % by-catch Seabird interactions Seabird mortality in the fishery is estimated by extrapolating observed mortality. The observed period is low (1-3 %), so extrapolations may not accurately reflect total mortality. In general, mortality rates are lower in in the long-fin squid fishery than in the finfish fishery, which is probably due to lower discard rates (FIG, 2015). Most mortalities are due to warpstrikes. The amount of mortality varies between years, with none observed in 2012 or

29 Table FI-F 3. Observed seabird mortality, observation rate and estimated total seabird mortality in the Doryteuthis gahi fishery Fishing days Observed mortality % Observed days?? Estimated total Rate bird/trawl day Source FIG, 2013 FIG, 2014 FIG, 2015 FIG, 2016 In addition to observed mortalities, there are likely to be other seabird losses as a consequence of heavy impacts on the trawl warps (see general section). Some new mitigation methods have recently been tested by vessels in the fishery. 5.3 Benthic impacts The fishery currently uses bottom trawls, although semi-pelagic trawling has been used in the past. The benthic impacts of bottom trawling are well established (Jennings and Kaiser, 1998; Kaiser et al., 2016). There has been little or no assessment of the impacts of bottom trawling on the benthic communities in the Loligo Box. Given that most of the prime fishing grounds have been trawled, it is not possible to determine the state of the natural benthic habitat. One option would be to implement some closed areas to investigate the recovery of habitats in the absence of trawling. In the longterm, a move from bottom trawling to pelagic trawling may be beneficial to the recovery and sustainability of benthic habitats. The best approach is generally seen as one that achieves a sustainable level of production of the target species, whilst minimizing or limiting the wider ecological effects of the fishing gear (Kaiser et al., 2016). 5.4 Ecosystem effects Doryteuthis gahi is an important prey species for many predators on the southern Patagonian Shelf. Important predators include fish, seabirds and marine mammals. The fishery has the potential to impact on populations of such dependent species. The requirement to ensure 10,000 tonnes escapement from the fishery, will ensure some squid are available to predators, but there has been no assessment to determine predator demand or the trophic effects of the fishery. 6. Management system The management system is highly responsive to the in-season monitoring of the stock. The season can be closed early if the depletion models indicate that the escapement will fall below the target level. Within season spatial closures (e.g first season) have also been implemented to conserve small squid. 13 FIG did not extrapolate the mortality of 3 sooty shearwaters as they are not considered to be at high risk, so extrapolated mortality was

30 6.1 Licensing and licence fees Since 2006, the long-fin squid fishery has been managed in the ITQ system. The fishery is managed by effort control, with the operators of sixteen vessels (26.2 vessel units) currently holding ITQ. Effort is calculated on the basis of vessel units, which take account of the size of the vessel and their catching and processing capacity. Replacement vessels are allowed, but if a larger vessel replaces a smaller one, the number of fishing days permitted will be reduced to ensure consistency of effort. Ownership of the total quota, however, is limited to 30% by any one company. Seven companies currently hold ITQ with their share ranging from 4.4 to 27.5%. Almost all trawlers operate through Falkland Island joint venture companies, with the Falkland shareholding varying from 25.1 to 50.0%, and the balance of the shareholding owned by Spanish fishing companies. The revenue from the first season is 1,129,012 and for the second season is 4,242,082, giving an annual revenue from the fishery of 5,371,094. The reason for the higher revenue from the second season is a historical anomaly and there is a case for the fees for the seasons being approximately the same. The local fishing companies that hold Doryteuthis ITQ are amongst the largest and most profitable enterprises (Arkhipkin et al., 2013). 6.2 Monitoring All licensed vessels are required to report catch and position on a daily basis. Licensed vessels are also monitored using VMS and AIS. Vessels may be subject to catch verification. Each trawler transmits a daily catch report to FIFD using the electronic logbook. Submitted data includes positions and catches for every trawl, and also records the product market-size categories (by mantle length) of D. gahi. This information is essential for the stock assessment depletion models. Typically two observers are deployed in the fishery at any time, with a target of 10% coverage. The observer coverage is rather low, given the importance of the data for stock assessment and the need to monitor seabird mortality. 6.3 Surveillance Vessels are subject to inspection at sea (3 in 2015) to determine compliance with licence conditions. See also general section. 7. Consultation, Review and Certification Within FIFCA there is a Loligo Producers Group (LPG). The LPG liaises closely with the DNR-F and plays an active role in the management of the fishery, which often requires decisions to be made at short notice. LPG members also supply commercial vessels, selected on a lottery basis, to undertake recruitment biomass surveys before each D. gahi fishing season. 30

31 There is currently no MSC certification of the fishery and no external review of stock assessments or management. Stock assessments are available on the DNR-F website. There is currently no published fishery management plan or Sustainability Measures for the fishery. 8. Summary The current management system appears to ensure the long-term sustainability of the target stock, but there is no biological justification for the level of escapement from the fishery. Whilst the target stock appears to be in good condition, there is limited understanding of the ecosystem effects of the harvest level. The development of an ecosystem model to investigate the effects of different harvest strategies would be beneficial. The fishery is exclusively bottom-trawl, although pelagic trawls have been used in the past. In the long-term it would be prudent to develop a strategy to mitigate the impacts of bottom trawling on benthic habitats. Such a strategy could include a move to pelagic trawling, the implementation of some areas closed to bottom trawling or the development of less damaging bottom trawling technology. As with other Falkland fisheries, a regular programme of external review of fisheries management should be implemented. Strengths The stock appears to be in good condition. The in-season adaptive management and depletion projections work well for a short-lived species. There is a considerable amount of information available on-line including stock assessments for each season and statistical bulletin. By-catch is relatively small (for a bottom trawl fishery). Seabird mortality associated with the fishery is very low. Weaknesses The 10,000 tonne escapement does not have any biological justification (but does seem to work). The fishery is a bottom trawl fishery and impact to benthic habitats are not quantified. Lack of regular external review of stock assessment. There is no information on the trophic effects of the fishery, particularly any impact on dependent predators, which include fish, seabirds and marine mammals. 9. Recommendations 1. Develop and publish a fishery management plan that includes targets and objectives for the sustainable management of the fishery. 2. Develop a long-term strategy to mitigate the impacts of bottom trawling on benthic habitats. 3. Develop an ecosystem model to evaluate the trophic impacts of the fishery, particularly any impact on dependent predators. Such information could be used to test the efficacy of the escapement rule. 31

32 4. Commission an external peer review of stock assessment and fishery management. 5. Increase observer coverage for seabird mortality and stock monitoring. 10. References Agnew DJ, Baranowski R, Beddington JR, des Clers, S, & Nolan CP Approaches to assessing stocks of Loligo gahi around the Falkland Islands. Fisheries Research, 35, Arkhipkin AI, Barton J, Wallace S & Winter A Close cooperation between science, management and industry benefits sustainable exploitation of the Falkland Islands squid fisheries. Journal of Fish Biology, 83, DeLury DB On the estimation of biological populations. Biometrics 3, Hatfield EMC & De Clers S, Fisheries management and research for Loligo gahi in the Falkland Islands. CalCOFI Reports 39: Jennings, S & Kaiser, MJ The effects of fishing on marine ecosystems. Advances in Marine Biology, 34, Kaiser et al., Prioritization of knowledge-needs to achieve best practices for bottom trawling in relation to seabed habitats. Fish and Fisheries, 17, Patterson KR Life history of Patagonian squid Loligo gahi and growth parameter estimates using least-squares fits to linear and von Bertalanffy models. Marine Ecology Progress Series 47: Roa-Ureta R & Arkhipkin AI Short-term stock assessment of Loligo gahi at the Falkland Islands: sequential use of stochastic biomass projection and stock depletion models. ICES Journal of Marine Science 64, Winter Falkland calamari. First season stock assessment. Technical Document, Falkland Islands Fisheries Department. 27pp. Winter Falkland calamari. Second season stock assessment. FIFD Report. Winter Falkland calamari. First season stock assessment. FIFD Report. Winter, A. 2014a. Loligo stock assessment, first season Technical Document, Falkland Islands Fisheries Department. 28 pp. Winter, A. 2014b. Loligo stock assessment, second season Technical Document, Falkland Islands Fisheries Department. 30 pp. Winter, A Loligo gahi stock assessment, first season Technical Document, Falkland Islands Fisheries Department. 27 pp. Winter, A Loligo stock assessment, first season Technical Document, Falkland Islands Fisheries Department. 23 pp. Winter, A., Arkhipkin, A Environmental impacts on recruitment migrations of Patagonian longfin squid (Doryteuthis gahi) in the Falkland Islands with reference to stock assessment. Fisheries Research 172: Wysokinski A. Biology and catches of the squid Loligo gahi in the Falkland region Polish research results Polish Fisheries Res. Inst. Papers, Series B, Number 68, 71 pp. 32

33 The Falklands mixed finfish fishery Gear: Bottom trawl (A, G, W Licences); pelagic trawl (S licence). 1. Target species The mixed finfish fishery (Licences Classes A, G, S & W) targets a range of finfish species including hakes (Merluccius hubsi and M. australis), kingclip (Genypterus blacodes), red cod (Salilota australis), hoki (Macruronus magellanicus), southern blue whiting (Micromesistius australis) and rock cod (Patagonotothen ramsayi). Of the two species of hake (Merluccius hubbsi and M. australis) caught in the FICZ, M. hubbsi is the more abundant, although catch data have not always distinguished the two species 14. Merluccius australis is found in depths of m off the South American coast, and in deeper water off the south coast of New Zealand. M. hubbsi is only found on the east coast of South America from 30 o S to 55 o S. Both species grow to over a metre in length and are piscivorous predators. M. hubbsi is the more common of the two hake species on the Falkland shelf, but is not present throughout the year. M. hubbsi migrates from Argentine waters to feeding grounds in Falkland waters in autumn and leaves in spring to spawn outside Falkland waters The wide distribution of both species mean they are also taken in the Argentine and Uruguayan EEZs. Hoki or whiptail hake is a gadiform fish of the family Merlucciidae. Hoki is a migratory species that is distributed around the southern Pacific and Atlantic coasts of South America, where it is concentrated on the outer parts of the continental shelf. Falkland waters are at the edge of the hoki range, with hoki most abundant in the west of FICZ in spring summer. The spawning grounds are outside Falkland waters. The hoki fishery in the Argentine EEZ, which is part of the same stock, received MSC certification in May Southern blue whiting is a benthopelagic gadiform fish that is found off the southern coast of South America and south of New Zealand, although the two populations are considered separate subspecies. Southern blue whiting was one of the most abundant species on the Patagonian Shelf, where it played a key ecological role, but the stock has declined dramatically since the 1990s. The southern blue whiting stock spawns to the south of the Falklands in September and October and that area is closed to any fishing activity at that time to avoid any disturbance of spawning. Red-cod is a demersal gadiform fish of the family Moridae and is caught off the South American coast at latitudes south of 40 o S. It grows to around 55 cm in length and is found at depths from 40 to 1000 m, with peak abundance around 250 m. Red cod spawns in Falkland waters and is generally a by-catch in the trawl fishery. Kingclip is a cusk-eel belonging to the family Ophididae and grows to sizes of close to 2m, with longevity of up to 30 years. It is a demersal species found at depths from 50 to 500 m, with peak abundance between 150 and 300 m. Rock cod is a notothenioid fish that inhabits the Patagonian Shelf from 35 to 55 S. Its distribution extends as far west as the Straits of Magellan but it is not found in the Pacific. It is a relatively small, slow growing species that plays a key role in the trophic ecology of the Patagonian Shelf as both predator (opportunistically feeding on gelatinous plankton, and benthos) and prey (hake, toothfish, kingclip, red cod, skates and penguins). Rock cod spawn in Falkland waters during winter. Rock 14 Since July 2015 vessel captains have been asked to distinguish the species in catch reports. 33

34 cod was considered as a by-catch in the Falkland fishery for years and the targeted fishery only started in Many of the species concerned are straddling stocks that are shared with the Argentine EEZ and, in some species, there appear to have been changes in distribution, with decreased catches of hake in the Argentine EEZ coincident with increases in the FOCZ. Such changes may be related to changes in foraging following the decline of the blue whiting stock. The hakes, kingclip and red cod are the more valuable species. 2. The Fisheries The fisheries for finfish are undertaken by trawlers operating under one of four categories of licence (Table FI-F1). The licences allow vessels to fish in the west and north-west of the FICZ and in the northern area of the FOCZ (Figure FI-F1 & FI-F2), which avoids the main fishing grounds for Doryteuthis gahi. Table FI-F1. The different categories of finfish licences and the gear, area and season restrictions associated with each. Category Description Target species Gear Area Mesh Season A G S W Unrestricted finfish Illex argentinus & restricted finfish Blue whiting & hoki Restricted finfish All finfish. Illex squid, hoki, blue whiting and rock cod. Blue whiting & hoki. Main target species are hoki, blue whiting and rock cod. Bottom trawl Bottom trawl Pelagic trawl Bottom trawl North and west of FICZ and FOCZ, with additional closed areas in Sep Oct. North and west of FICZ and FOCZ. The FICZ and North of FOCZ. North and west of FICZ and FOCZ st Jan 31 st Aug; 1 st Sep 31 st Dec st Mar 31 st May st Jan 30 th June; 16 th Nov 31 st Dec st Jan 31 st Aug; 1 st Nov 31 st Dec Some vessels have multiple licence types and can switch, but must inform DNR-F by noon the day prior to a change of licence type. Fishing effort is split between the three licence types (Table FI- F2), with around 26 % of the effort (days) fished under Category A, 28% under Category G and 46% under Category W. On average ( ) licensed vessels fished for 28 days a year under Category A; 38 days under Category G and 54 days under Category W. Table FI-F2. Days fished under A, G & W licences from Days Vessel Mean Days Vessel Mean Days Vessel Mean Days Vessel Mean A G W

35 Under the unrestricted finfish licence (A) the main catches are hake and rock cod (Table FI-F3). Under G licences the main catches are of rock cod, Illex argentinus and hoki. The restricted finfish catches (W) are 59 % rock-cod, with hake and hoki the other species caught. Catches taken with pelagic trawls under S licences are almost exclusively blue whiting and hoki. Table FI-F3. Average annual catches (tonnes) for each licence type for the period The % refers to the percent of the total catch under that licence type. A G S W Mean % Mean % Mean % Mean % Blue whiting Hake 7, , Hoki 2, Illex Kingclip Loligo Others Red cod Rock cod 7, , , Skate/Ray Toothfish Catches in the Falklands fisheries are a part of the wider fishery for these species on the Patagonian Shelf (Table FI-F4). In the case of the hake species, catches in the FICZ represent just 3-5 % of the total catch in the SW Atlantic (FAO Data) in the period Catches of rock-cod however represent % of the total catch in the SW Atlantic. Table FI-F4. Catches of finfish species in the FICZ and in the SW Atlantic (SWA) and the % of the total SWA catch that is caught in the FICZ FI SWA % FI SWA % FI SWA % FI SWA % Hakes 9, , , , , , , , Kingclip 3,942 21, ,508 14, ,977 10, ,881 11, Red cod 4,206 9, ,630 8, ,164 9, ,467 6, Hoki 22,864 95, ,869 75, ,849 73, ,392 66, Blue whiting 3,974 7, ,611 10, ,698 10, ,612 12, Rock cod 55,648 71, ,510 80, ,436 43, ,686 86,

36 Figure FI-F1. Sections of the FICZ showing the areas that can be fished finfish licence holders. A: Open area for A & W licences for the periods 1 st Jan 31 st August and 1 st November 31 st December and for G licence from 1 st March 31 st May. B: Open areas for A & W licences for 1 st September 30 th September. C: Open areas for A & W licences for 1 st October 16 th October. D: Open areas for A & W licences for 17 th October 31 st October. 36

37 Figure FI-F2. Section of the FICZ showing the areas that can be fished under a pelagic (S) licence during the periods 1 st Jan 30 th June and 16 th November 31 st December (left) and during the period 1 st July to 15 th October (right). 3. Brief history of the fishery Fisheries for finfish on the southern Patagonian shelf date back to the late 1970s, when distant-water fleets from Argentina, Japan and Poland began fishing for squid and finfish. These vessels were soon joined by a large number of Spanish trawlers. Following the creation of the FOCZ in 1986, the finfish fishery was dominated by Spanish and Polish vessels, with the Polish vessels largely targeting southern blue-whiting to the SW of the islands. In the early years of the finfish fishery, catches were dominated by southern blue whiting, but that stock has been dramatically reduced. The reduction in the abundance of blue-whiting was coincident with an increase in rock cod populations (Laptikovsky et al., 2013), which have, since 2008, made up the majority of the finfish catch. Prior to 2006, rock-cod had limited value and was not retained. In contrast to other species, the rock cod catch in the FICZ is the major component of the total catch in the SW Atlantic (Table FI-F4). Catches of hoki have averaged 18,000 tonnes over the past 20 years, but have decreased in recent years (Figure FI-F2). That decrease may be due to the targeting of other species. The hoki catch in the FICZ represents % of the catch in the SW Atlantic (Table FI-F4). Catches of hake, which averaged less than 5,000 tonnes a year from the mid-1990s to the mid-2000s have recently increased and 2015 saw the highest recorded catch in the FICZ. Despite this increase, the catch of hake in the FICZ represents a small proportion of the total catch in the SW Atlantic, which is around 350,000 tonnes per annum (FAO Data). 37

38 Figure FI-F3. Catches of blue whiting, rock cod and hoki the FICZ since Figure FI-F4. Catches of hakes, red cod and kingclip the FICZ since

39 4. Sustainability of the target species 4.1 Stock discrimination All the stocks are migratory and are shared with the Argentinean EEZ and, in some cases, extend to the Pacific coast of South America. In the absence of any international co-operation on fisheries management it is extremely difficult to ensure these stocks are managed sustainably. 4.2 Harvest strategy The finfish fishery of the Falkland Islands is regulated using a combination of a total allowable catch (TAC) and a total allowable effort (TAE). The TAC/TAE method was initially based on the southern blue whiting stock, as this was the biomass dominant species in catches taken by the trawlers. However, the decrease in blue whiting abundance from (Laptikhovsky et al., 2013) caused the DNR-F to switch to using rock cod as the basis for limiting catch and effort. The assessment of rock cod is used to calculate the fishing effort (vessel units and fishing time in the fishery), with that effort divided between the three licence types (A, G & W) in proportion to historical effort. There are no target or limit reference points for any of the species. For 2017, a TAC of 30,000 t has been established for rock cod to take account of the reduction of its biomass, but this is not a target or limit reference point. 4.3 Stock assessment of rock- cod The status of the rock-cod stock is assessed using fishery-dependent (CPUE) and fishery independent (trawl survey) methods. The most recent trawl survey was conducted in February 2016 and included 90 one-hour trawls in the north and west of the FICZ and north of the FOCZ (Figure FI-F5). Similar surveys were undertaken in 2010, 2011, 2014 and 2015 and provide the best source of data on rockcod biomass. Figure FI- F5. Trawl survey for rock- cod in Dots indicate stations and colours represent density of rock- cod (from FIFD, 2016). 39

40 CPUE can give a fishery dependent indication of abundance, but needs to be standardised to take account of differences between vessels, years, seasons and, in the case of rock cod, which species was being targeted (assumed to be the most prevalent species in the catch). The standardised CPUE rose from when rock cod were first targeted (2007) until 2010, but then declined until CPUE rose again in 2014, but dropped dramatically in 2015 (Figure FI-F3). Standardised CPUE is used in a Schaefer biomass dynamic model (a form of surplus production model; Hilborn & Walters, 1992) to assess the stock status. The model estimates the biomass at time t+1 from the biomass at time t using the population growth rate (r) and taking account of the carrying capacity (K) and catch. The model suggests that the biomass remains stable despite the drop in CPUE in 2015 (Figure FI-F6). Figure FI-F6. Dynamic biomass model output for the rock-cod stock (solid line) with nonparametric confidence intervals. Standardised CPUE shown as dots. From FIDF, In this instance using CPUE as an indicator of the stock status is probably not valid as rock-cod is not always the main target species and is patchily distributed in the fished area. Rock-cod is probably the least valuable of the target species in the mixed trawl catch, so vessels may often target the more valuable species such as hake and kingclip. Recent years have seen an increase in the catches of hake. The recent DNR-F assessment (FIFD, 2016) also examined life-history parameters to determine if the targeted trawl fishery, which started in 2007, has had any impact on rock cod life history. Whilst this is a useful exercise, it is unlikely that in a relatively long-lived species, such as rock-cod, any detectable changes would occur within 10 years. 4.4 Stock status According to the trawl survey estimates the rock-cod stock is now less than 30% of the first survey estimate in 2010 and less than 25% of the estimate in 2011 (Figure FI-F7). Trends in the standardised CPUE have not shown such a distinct decline, although if the 2014 data point is excluded there is a clear decline from 2012 to 2015 (Figure FI-F6). However CPUE may be biased by vessels targeting different species in different years, seasons and areas. 40

41 Biomass'(tonnes)' 900,000" 800,000" 700,000" 600,000" 500,000" 400,000" 300,000" 200,000" 100,000" Rock6cod'biomass' 0" 01/02/10" 01/02/11" 01/02/12" 01/02/13" 01/02/14" 01/02/15" 01/02/16" Survey'Date' Figure FI-F7. Biomass estimates of rock-cod from trawl surveys in the NW of the FICZ and FOCZ. Reported(Catches( 90,000" 80,000" 70,000" 60,000" 50,000" 40,000" 30,000" 20,000" 10,000" 0" Rock(cod(catches( 2006" 2007" 2008" 2009" 2010" 2011" 2012" 2013" 2014" 2015" Year( Figure FI-F8. Catches of rock cod from 2006 to In an earlier (2010) assessment, which was based on rather limited data, the MSY was estimated at 72,000 tonnes. This was exceeded in 2010, when the reported catch was 76,000 tonnes. However, there was uncertainty regarding the discard of rock-cod, so that actual catch may have been higher. In 2011, the reported catch was 55,000 tonnes, with 64,000 tonnes in 2012 (Figure FI-F8). 4.5 Effort limitation Effort is limited by vessel units (VU) and fishing time (FT), which are calculated from catchability of rock-cod, fishing effort and the survey estimate of biomass. Vessel unit months (VUM) are calculated from the product of the most recent biomass estimate and the average catchability coefficient and fishing effort over the previous five years. The VUM value declines if the biomass estimate is reduced or the catchability is reduced and this could lead to an increase in effort (see below). Fishing time (FT) is calculated from vessel units divided by VUM. Thus if the VUM declines (for instance due to lower catchability or lower biomass estimate), the FT increases. In practice, if the biomass estimate decreases, the catch entitlement used as a basis to calculate the fishing time (VU) may be adjusted to take into account the reduction of biomass and avoid an increase of fishing time. However if the catchability declines, for instance when vessels target other species, this will lead to an artificial decrease in VUM. This seems flawed, as it can lead to increased effort when the reference stock has declined or when other (often more valuable) species are targeted. In the recent assessment the VUs available to G and W licences have been reduced by 10% (to reduce effort) and a catch limit of 30,000 tonnes applied to rock cod. The 10% reduction in VU seems small given that 41

42 the stock of rock cod is now 30% of initial estimates (2010), however it is assumed that when rock cod is not abundant vessels will target other species. 5. By- catch and non- target impacts 5.1 Fish and squid by- catch With the exception of the pelagic trawl fishery for blue whiting and hoki, the catches in the finfish fisheries are very mixed (Table FI-F2), with a range of species caught and retained. The target species will vary spatially and temporally making it difficult to ascribe particular species as being bycatch. The by-catch in the pelagic trawl fishery, which targets hoki and blue whiting is very small. There is a by-catch move on rule in Part 3 of the licence, which states The total by-catch of species for which the vessel is not authorised to fish must not exceed 10% of the vessel s daily aggregate catch. If the by-catch exceeds 10%, the vessel must change fishing area, but does not indicate how far the vessel must move or how long it must wait before returning to the area 15. It is clear from Table FI-F3 that the average by-catch under both G and W licences is considerably more than 10%, which suggests that the move-one rule may not be working. The catch of hake alone under a W licence averaged 9.1% of the total for the period and exceeded 20% in Seabird interactions Seabird mitigation measures are required with all finfish licences and include: (i) (ii) No discard of offal or unwanted fish when the trawl warps are in the water; Two bird scaring lines must be deployed during fishing operations, one on the outboard side of each trawl warp; the design of the bird scaring devices is specified in licence conditions. Despite the seabird mitigation there is still mortality associated with the fisheries (Table FI-F5), with considerable inter-annual variability. The most susceptible species is the black-browed albatross. In addition to the observed mortalities, observers record incidence of heavy contacts. Between July 2014 and June 2015, 1710 heavy contacts with high-risk species were observed, which extrapolates to 52,277. Of these around half were contacts with the bird-scaring lines and resulted in no injury. Of the other contacts, an estimated 12,676 resulted in some form of injury to high risk species. Table FI-F5. Observed seabird mortality, observation rate and estimated total seabird mortality in the finfish fisheries. 2011/ / / /15 Trawling days Observed mortality % Observed days Estimated total Rate bird/trawl day Source FIG, 2012 FIG, 2013 FIG, 2014 FIG, In practice this is managed by monitoring daily catch reports and vessels are required to move out of the grid square if the move on rule is triggered (John Barton, pers. Comm.) 42

43 5.3 Benthic impacts With the exception of the blue whiting fishery, the finfish fisheries use bottom trawls. The benthic impacts of bottom trawling are well established (Jennings & Kaiser, 1998; Kaiser et al., 2016), but there has been little or no work undertaken to determine the impacts of bottom trawling in the FICZ. Given that most of the prime fishing grounds have been trawled, it is probably not possible to determine the state of the natural benthic habitat. One option would be to implement some closed areas to investigate the recovery of habitats in the absence of trawling. In the long-term, a move from bottom trawling to more selective fishing gears (e.g. semi-pelagic trawls for hoki & rock-cod; longlines for kingclip) would be beneficial both to the assessment of stocks and would reduce the impact on the benthic fauna. 5.4 Ecosystem effects Rock-cod is a key species in the ecology of the Patagonian Shelf and is a significant prey of most of the medium to large sized fish predators including hake, Patagonian toothfish, kingclip, redcod and rajids (Brickle et al. 2006; Nyegaard et al. 2004). In turn, it is an important consumer of a variety of benthic and supra-benthic crustaceans (Laptikhovsky & Arkhipkin 2003). The role of rock cod (or other target fish species) in the Patagonian Shelf system is not fully understood, but the reduction of biomass by 70% is likely to have an impact on dependent predators including seabirds and marine mammals. It is possible that the biomass of rock-cod was unusually high at the time of the first surveys (2010, 2011), but it will be difficult to determine if that was the case. The development of an ecosystem model for the Patagonian Shelf would help understand the trophic relations between species and gauge the impacts of depleting stocks of key forage species. In a management context, the stock status targets should, ideally, be higher for important prey species Management system 6.1 Licensing and licence fees The finfish fisheries are part of the ITQ system that was established in 2006 (see General Section 2.2). For unrestricted finfish (A licence) there are 10 ITQ holders, for squid and restricted finfish (G) there are 9 ITQ holders and for restricted finfish (W) there are 10 ITQ holders. The ITQ for S licences (pelagic finfish) are 30% owned by Fortuna Limited, and 70% owned by FIG, but leased to Fortuna. The ITQ gives each owner a Catch Entitlement (CE), which comes in the form of vessel units (VU) and fishing days. Table FI-F6. Vessel units (VU) and nominal allocated tonnage of rock-cod in each of the finfish fisheries for Licence Type VU Nominal allocated tonnage A ,200 G 18 18,000 W ,100 By-catch 4.9 4,900 Total , CCAMLR uses different long- term targets for key prey species (0.75) than for toothfish (0.5). 43

44 The CE itself does not entitle a vessel to fish as vessels still need to be issued with a licence, which is subject to the relevant conditions. Some vessels have Catch Entitlements under different licence categories and are able to switch between licences. Taken together the revenue from A, G, S & W licences accounts, on average over the last five years, for 16% of the total fisheries revenue. Restricted finfish (W) and unrestricted finfish (A) licences are the most valuable. Table FI-F7. Licences and revenue from the finfish fisheries from (from FIG, 2016). Type No. Revenue No. Revenue No. Revenue No. Revenue No. Revenue A 29 1,129, ,129, ,129, ,129, ,129,012 G , , , , ,900 S 1 181, , , , ,419 W 27 1,341, ,341, ,341, ,341, ,341, Monitoring As with the other fisheries all licensed vessels are required to regularly report catch (daily) and position (every 12 hours). Licensed vessels are also monitored using VMS and AIS. Vessels may be subject to catch verification. Observer coverage in the fishery has averaged 6.7% over the last four years (Table FI-F8) for the A, G & W licences and was 100% for the pelagic hoki and blue-whiting fishery in three of the last four years. Table FI-F8. Observer coverage in Falkland Islands finfish fisheries A, G, W S A, G, W S A, G, W S A, G, W S Vessel days Observed days % Observed Within the fishery there have been two recent prosecutions for misreporting of catch. In both cases, vessels under-reported their catch of hake and over-reported the catch of rock-cod (Faulds, 2016a, b). Such misreporting could have impacts on the stocks and on the stock assessment. Over reporting of rock-cod would indicate a higher CPUE (and catchability) of rock-cod, which could lead to higher 17 effort in the fishery in subsequent years. 17 In practice DNR- F are unlikely to allow significant increases in effort. 44

45 6.3 Surveillance See general Falkland Islands section. Finfish vessels are subject to at-sea inspections to verify compliance with licence conditions. In 2015 there were 34 inspections of finfish vessels. 7. Consultation, Review and Certification FIFCA membership is open to all ITQ holders and provides a forum for the operators in the fishery and, through FIFCA, representation on the Fisheries Committee. There is currently no MSC certification of any of the finfish trawl fisheries and no external review of stock assessments or management regime. Details of the stock assessment are available from the Fisheries Department website. 8. Summary There are a number of concerns regarding the approach taken to managing the mixed finfish stocks in the Falklands Islands management zone. The first, and most fundamental, is that the target species are all migratory / straddling stocks that are shared with the Argentine EEZ. Without regional cooperation and data sharing, it is impossible to accurately assess the stocks and set sustainable catch limits. That said, the majority of the catch of rock cod is in the FICZ, so for that species at least, the Falklands should have reasonable ability to manage the stock. The management approach taken, which assesses the most abundant (reference) species (currently rock cod) and uses that assessment to limit effort is flawed. This approach might work if the reference species was evenly distributed or was the main target species, but neither of these requirements is met with rock-cod. Rock cod is not evenly distributed (see Figure FI-F5) and higher value species, such as hake and kingclip are more likely to be targeted than rock-cod (as noted in the recent assessment, other species were targeted in 2013 and 2015). In this instance using CPUE-based methods to assess the stock and to subsequently limit effort will not work (which is apparent from the most recent assessment). The recent misreporting of finfish catches is also of concern. If such practices were widespread in the fishery, it would undermine the stock assessment. Over-reporting would give a higher CPUE and indicate the stock to be in a better state than reality and it is evident that the CPUE-based assessment does indicate a healthier stock than the survey suggests. Eliminating misreporting is essential and the recent court cases should discourage such practices. Misreporting can also be addressed through catch verification and a higher level of observer coverage. The current status of the rock-cod stock, with biomass estimated to be less than 25% of the biomass in 2011, is of concern. Rock-cod is an important ecological species (Brickle et al., 2006; Nyegaard et al., 2004) and the depletion of the stock to this level is likely to impact on dependent species. Furthermore, rock cod are relatively slow growing and hence the stock is unlikely to recover quickly. In the long-term an ecosystem-based approach (Rindorf et al. 2013) to managing these fisheries is probably the best solution. In the short term, assessments should be developed for the individual species, particularly those in which the Falklands fisheries take a significant proportion of the catch. It may also be possible to refine the spatio-temporal restrictions on the fishery to exert greater control over the species composition of catches. 45

46 Alternately, more species specific, catching methods could be considered. For instance kingclip is caught with longlines in other parts of the world; hoki and possibly rock-cod could be caught with semi-pelagic trawls. The move-on rule, which is intended to limit by-catch, is poorly defined and should be revised. Strengths Weaknesses Spawning areas of red-cod and southern blue whiting are closed to any fishing activity during the spawning season. A TAC was established for rock cod when DNR- F had evidence of a reduction in biomass. The lack of co-operation with Argentina over straddling / migratory stocks undermines attempts to sustainably manage stocks. The current status of the rock cod stock at 30% of its 2010 biomass is of great concern. The method of limiting effort with reference to the rock cod stock is flawed and needs to be replaced. Lack of regular external review of stock assessment. The fishery is a bottom trawl fishery and impact to benthic habitats are not quantified. There is limited information on the trophic effects of the fishery, particularly any impact on dependent fish, seabird and sea mammal predators. The by-catch move-on rule is poorly defined and should be revised. 9. Recommendations 1. Seek (with UK Government) the re-establishment of the South Atlantic Fisheries Commission to enable regional management of stocks. 2. Seek an external peer review of stock assessment and management for the finfish fisheries. 3. Develop scientifically based catch limits for each of the main target species Consider developing a multi-species approach to fisheries management. 5. Develop a long-term strategy to mitigate the impacts of bottom trawling on benthic habitats, which could include evaluation of alternate capture methods and greater spatial and temporal regulation. 6. Develop ecosystem model to evaluate the trophic impacts of the fishery, particularly any impact on dependent predators and to help inform a multi-species management approach. 7. Provide a more detailed explanation of the move-on rule in the licence conditions to ensure it is legally enforceable. 18 Will require regional co- operation. 46

47 10. References Brickle P, Arkhipkin A and Shcherbich Z Age and growth of a sub-antarctic notothenioid, Patagonotothen ramsayi (Regan 1913), from the Falkland Islands. Polar Biology, 29, Faulds C Regina vs Freirmar, Sulivan Shipping Ltd and Francisco Perez Bason. Sentencing Decision with Reasons. Falkland Islands Magistrate s Court, July Faulds C Regina vs Pesquerias Marinensis, FIBOW Ltd, Joachin Lopez Chousa, Samual Acuna Recaman & Jose Rodriguez Gomez. Sentencing Decision with Reasons. Falkland Islands Magistrate s Court, March 3 rd FIFD, Vessel units, allowable effort and allowable catch 2017: Part 2 Stock assessments. Hilborn R & Walters CJ, Quantitative Fisheries Stock Assessment: Choice, dynamics and uncertainty. Chapman & Hall, London. Jennings, S & Kaiser, MJ The effects of fishing on marine ecosystems. Advances in Marine Biology, 34, Kaiser et al., Prioritization of knowledge-needs to achieve best practices for bottom trawling in relation to seabed habitats. Fish and Fisheries, 17, Laptikhovsky V, Arkhipkin A, Brickle P From small bycatch to main commercial species: Explosion of stocks of rock cod Patagonotothen ramsayi (Regan) in the Southwest Atlantic. Fisheries Research, 147, Nyegaard M, Arkhipkin A, Brickle P (2004) An alternating discard scavenger: variation in the diet of kingclip, Genypterus blacodes (Ophidiidae) around the Falkland Islands. Journal of Fish Biology, 65, Laptikhovsky V & Arkhipkin A An impact of seasonal squid migrations and fishing on the feeding spectra of subantarctic notothenioids Patagonotothen ramsayi and Cottoperca gobio around the Falkland Islands. Journal of Applied Ichthyology 19, Rindorf A, Schmidt J, Bogstad B, Reeves S & Walther Y A Framework for Multispecies Assessment and Management. An ICES/NCM Background Document, 43pp. 47

48 The Falklands short-fin squid (Illex argentinus) fishery Gear: Jigging 1. Target species Catch in 2015: 357,730 tonnes Catch in 2016: 2,000 tonnes The Patagonian short-fin squid (Illex argentinus) is an oceanic squid of the family Ommastrephidae and is abundant in temperate and subtropical waters between 22 o and 54 o S in the SW Atlantic Ocean (Arkhipkin et al., 2013). The species consists of several distinct populations and cohorts, all of which have annual life cycles (see Arkhipkin et al., 2013 for summary). The main populations are winter spawners, which are divided into Northern and Southern Patagonian stocks. It is the Southern Patagonian Stock (SPS), that migrates into Falkland waters between February and June to feed on abundant macro-zooplankton, that is the target of the Falklands fishery. The SPS spawn over the continental shelf of southern Brazil and Uruguay and the larvae hatch in the warm waters of the Brazil Current. Juvenile squid migrate south to the Patagonian Shelf to feed and grow, before returning north with the Falkland Current (see Figure FI-I1). In cold years, such as 2002, the squid may not migrate as far south as Falkland waters. Illex argentinus is an opportunistic predator, feeding on macrozooplankton and, with increasing size, fish and squid (Mouat et al., 2001). Figure FI-I1. The SW Atlantic, showing the FICZ and FOCZ and migratory pattern of the Southern Patagonian Stock of Illex argentinus (reproduced from Arkhipkin et al., 2013). 2. The Fishery The fishery for the Southern Patagonian Stock of Illex operates in the Argentine EEZ, the Falklands zones and on the high seas to the north. In Falkland waters it is open from mid-february until June 15 th, with the majority of fishing effort coming between March and May. Around 100 jiggers (approx. 70 Taiwanese and 30 Korean) participate in the fishery each year, with catches of up to 30 tonnes per night. In recent years the Taiwanese vessels have been licensed to fish until 15 th May, 48

49 whilst the Korean vessels have had licences until June 15 th. The fishery tracks the southerly migration of Illex, with jiggers usually fishing on the high seas to the north of the FOCZ prior to entering the zone. In the past the Falklands have operated a Voluntary Restraint agreement with some of the jigging companies to discourage high seas fishing. Table FI-I1. Details of the Illex argentinus jigging fishery ( ) Jiggers Season open 15-Feb 15-Feb 15-Feb 15-Feb Season close 4-Jun 14-Jun 15-Jun 15-Jun Fishing days 8,491 7,638 7,041 8,278 Catch (tonnes) 87, , , ,730 Observer days Observer % The fishery varies from year to year, depending on the abundance of Illex in the zone, but there are typically over 100 licensed jiggers. Some trawlers also target Illex (Licence G), but over 90% of the catch is taken by jiggers under Category B licences. The catches of 306,147 in 2014 and of 357,730 tonnes in 2015 were the two highest recorded in Falkland waters since the licensed fishery began. However, 2016 has been one of the poorest years with just over 2000 tonnes caught. The catch in the Argentine EEZ in 2016 has also been low. The poor catches were attributed to environmental conditions, with negative water temperature anomalies spread all across the Southwest Atlantic. Near-bottom temperatures especially on the shelf were as cold as 5.5ºC, about 1-1.5ºC less than the norm. 3. Brief history of the fishery The fishery on the Patagonian Shelf began in the early 1980s, when the decline in other fisheries (e.g. the Illex illecebrosus fishery in the NW Atlantic) led the international jigging fleet to search for new opportunities. The fishery rapidly expanded, reaching over 500,000 tonnes by 1987 and peaking at over 1 million tonnes in The stock collapsed in 2004 and 2005, due to the combined effects of overfishing and environmental conditions. Stock abundance is linked to sea-surface temperature (SST), with the highest catches occurring with SSTs of o C. In 2004, the SST in the region was unusually low at around 10 o C. The stock again collapsed in , with only 44 tonnes of Illex caught in the Falklands in 2009, which was linked to low SST. The Falklands Islands licensed fishery began in 1987, when 156 vessels from five nations fished in the newly declared FICZ (Beddington et al., 1990), with the fishery open from February 1 st until June 30 th. The number of licensed vessels averaged 150 in the period to 1995, with Japanese vessels initially the most numerous. Japanese participation in the fishery reduced in the mid-1990s, when they moved to fish in the Argentine EEZ. Prior to 1993 catches of Illex in the Argentine zone were relatively low (46,000 tonnes in 1991), but in 1993 Argentina started allowing foreign flagged vessels into her zone to catch Illex. Catches increased to a record 260,000 tonnes in the Argentine zone in Lower licence fees in Argentina together with generous export subsidies, made Argentine licensees more attractive. In the Falklands fishery the number of licensed vessels dropped to around 50 in the mid-2000s, when the stock collapsed. In 2009 only 21 licences were issued, but catches were so poor that the licence fees were refunded. Since 2011 there have been around 100 licensed vessels, with Korea and Taiwan the main fishing nations. 49

50 " " " All" Falklands" Outside"Falklands" Tonnes& " " " " 0" 1980" 1985" 1990" 1995" 2000" 2005" 2010" Year&. Figure FI-I2. Illex argentinus catches in the SW Atlantic since the fishery began in the 1980s (FAO data). The catch in the FICZ and FOCZ accounts for, on average, 20% of the total catch of Illex in the SW Atlantic, but varies between 0 % (2009) and 40% (1989, 2011) (Figure FI-12). Whilst the majority of Illex is caught by jiggers, some is also caught by trawlers under G category licences or as by-catch. In the early years of the fishery some eastern European vessels had the capacity to trawl and jig (combo on Figure FI-I3), but most of this was from 1989 to 1994, when the data is not separated by gear type. Tonnes& 400,000" 350,000" 300,000" 250,000" 200,000" 150,000" Combo" TR" JI" All" 100,000" 50,000" 0" 1989" 1994" 1999" 2004" 2009" 2014" Year& Figure FI-I3. Illex argentinus catches with different gears in the FICZ since The data from 1989 to 1994 is not separated by gear. 50