A group of Scottish fishermen have been order to pay back 1.1 pounds for large scale illegal fishing between 2002-2005 in Scotland’s Shetland islands.


Scottish Fish Fraud Pays Off

Yet, it is estimated that the around 47.5 million pounds of illegally caught fish was landed and this netted the companies 10′s of millions.


Did No-One Notice

What is hard to understand is how so large scale fraud could have gone on unnoticedd by other fishermen, players in the market or enforcement agencies.

What Would Happen With Self Rule
This is a close community in a country demanding self determination.

The SNP are close to their fishing industry. They hold their fishing industry up as the model for Europe. The challenge is that this is an industry who at the time said they had ended the old ways. This was a time when blackfish landings were not meant to be happening.

Strangely, for an industry who are so keen to embrace the press, there is no press release from the Scottish Fishermen’s Federation on their site.

A european fisheries model?
This pitiful penalty sets a dangerous precedent. It shows crime pays. It shows that even in a country who claim to have the highest standards that rampant illegal fishing went unchecked. And, this is from an industry who have demanded self governance backed by a government who demands self governance.


Is this the tip of the iceberg?

It would be interesting to know what would be found if a simple audit of the industry happened today. And, perhaps the Scottish enforcement agencies could copy thorough enforcement measures that the Norwegian coast guard use the Scottish fleet when they enter Norway’s waters to discard fish.

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Fishing Reform Passess First Key Vote

CFP Reform’s First Hurdle

The Environment Committee this morning considered 550 amendments concerning the Commission’s proposals for Common Fisheries Policy reform.

MEPs voted 50 – 0 (with 8 abstentions) in favour of an Opinion that supports the Commission’s key proposals and called for the measures listed below.

Summary

MEPs endorsed the Commission’s main proposals for reform of the Common Fisheries Policy – without any votes against – and called for:

- setting a target of achieving above maximum sustainable yield in all fisheries by 2015 (no overfishing)

- long term management plans to be agreed for all fisheries, based on best scientific evidence or the precautionary principle

- restrictions on the degree to which Fisheries Ministers can set quotas that ignore scientific evidence

- requiring all fish caught to be landed and ending discards, to promote the use of more selective fishing gear

- transferable fishing concessions to be established only on a voluntary basis by Member States

- an assessment of overcapacity in the fishing fleet (too many boats chasing too few fish), and measures to reduce it

- full transparency regarding the allocation of fishing rights
- a fairer allocation of fishing rights to benefit small-scale fishermen
- the establishment of fisheries reserves
- ambitious long-term goals to restore stocks to levels that can produce the maximum economic yield for fishermen
- support for regionalised decision-making by encouraging MS to cooperate together when they are part of the same sea-basin
- strict sanctions against Member States that fail to comply with the requirements of the Regulation

Where Next
Attention now turns to the Fisheries Committee.

Mrs Rodust, the German Social Democrat, has tabled a pragmatic report.

It remains in doubt if the MEPs on the fishing committee will vote in the interests of the few or the many. The last time the fisheries committee ignored the views of the majority, the full parliament voted against the fisheries committee.

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Ronald Coase – Still Destroying Sacred Cows

Ronald Coase writes very well, he is one of only a handful of economists who I know who can actually writes well. David Friedman and Hazllitt are superb. Hayek is a cure for insomnia.

Ronald Case – Stupid Ideas Highlighter
Ronald Coase has a a great talent for destroying stupid ideas. Stupid ideas can be very dangerous. Stupid ideas that have been repeated so often, usually by supposedly very clever people, can lead to the public to believing in them.

Stupid Ideas – Some Examples
He explained that for a very long time in his great book, “The Firm, The Market and the Law” that lighthouses were provided not by the state but by private firms. Not such a big deal you’d think. But, given that most economic textbooks contend that the service of lighthouse provision is a public good, that only the state can provide, and everyone else should pay for, you start to see that this nice englishman has some very dangerous ideas.

Stupid Ideas Today – Chinese Communist Party Believes in Capitalism
Well, he’s still going strong at 100 years. The Economist’s 100th birthday piece on his output is excellent. He is still overthrowing some very stupid ideas. The idea that the Chinese Communist Party embraced capitalism in all but name is widely promoted. It probably makes things easier when you are dealing with a country led by a vicious regime. A dictatorship openlinly embracing capitalism surely can’t be that bad. He destroys that idea in “How China Became Capitalist“.

But, would you change your mind if that did not happen?

Well, to find out what really happened, you may enjoy watching Ronald Coase.

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Can the CFP Make Sense – Yes.

A nice piece from Ronny Patx on the up-coming Fisheries Council on 27 April.

Well worth reading. Ronny makes the CFP make sense.

 

 

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Why Exxon Mobil Keeps Winning in Politics and in Business

 

Lessons from A Titan

I have just read  April 9th The New Yorker’s excellent article ‘ Gusher: The power of Exxon Mobil‘.

Ever since reading  ’Titan – The Life of John D. Rockeffeller‘  I have been intrigued how far a well run organization, tracking results, and following and implementing a plan can go.

Governments Come and Governments Go

Exxon Mobil are a creation of the State. Standard Oil was broken up by the US State. Being broken up did little to stop the company. At the the time, Standard Oil It was the largest and richest oil firm in the US. Today, it is the largest and most profitable privately owned oil firm in the world. In US Politics, it has been on the winning side of major bills, often supported by the White House, like Climate Change.

 

Where is Your Operating Manual?

How did ExxonMobil manage this?

It seems to come down to a very simple idea that in practice is very hard to deliver – they are very (very) well organized. They deliver on what they said they will do.

 

With the Help of A Little Black Binder

How many firms or NGOs can emulate this level of preparedness?

The author, Steve Coll, writes  about Kenneth P.Cohen, ExxonMobil’s vice president for public and government affairs:

“His operating manual for political strategy is a dark binder that is kept on a shelf in his second-floor office at the Irving headquarters. The first page carries the title “Public Policy Issues”. A list of about two dozen subjects follows, from climate change to government subsidies for gasoline alternatives such as ethanol. For each policy area, the notebook contains a summary of ExxonMobil’s lobbying position; which the corporation’s public-affairs teams support worldwide, often using common man gauge and PowerPoint slides. The notebook also provides a guide for judging American politicians”.

 

The Farley file and the issue binder are staples for serious political professionals. Every Presidential hopeful has one. Tony Blair imposed it on his UK Labour Party.

It Works in Business, So Why Not Try it in Politics?

 In Titan,  you learn of J.D. Rockefeller as a young man thought up a plan to take a ramshackle and chaotic US oil industry and dominate it in 10 years. He had a plan and he stuck to it.  It worked. He delivered early – it took 5 years.  He tracked the actions and measured the results.

It’s a useful lesson. It gets Exxon Mobil what they want. Others could copy them. Few do. Why? It is a lot of work to be as prepared and thorough as them.But, hardest of all is developing a plan and sticking to it. A lesson that works well in business and politics.

 

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Is there Something Worse Than Smoking?

Smoking – No 1 Pariah?

I have just finished reading Charles Murray’s latest book about the state of white America.
An interesting observation is that smoking has a pariah like status for America’s upper middle class. I suspect that similar views are held by Europe’s upper middle class. His central premise is  that America’s upper middle class dominate the political and economic life of America, but they have very little understanding about the values and lives of the vast majority of America.

The book is interesting as it identifies the reading and value lifestyle habits of certain influential groups in America. Many of the observations made are also relevant of the officials in the Commission and Council – the tax home salary puts them in the upper percentiles of any country.  The take home package of many Heads of Unit  are likely to put them in the top 2% percentile of earners in their home countries. Long serving desk officers may have packages more generous than a senior minister back home. Directors certainly do.

 

Is There Something Worse Than Smoking

I was struck by the central message behind the UK Government’s advertising campaign against second hand smoking. The UK’s Chief Medical Officer, Professor Davies put’s it “ contains 4500 chemicals, and 60 of these are toxic and cause cancer”(see 40 seconds into to interview).

http://www.bbc.co.uk/news/health-17551568

It is remarkable that the impact of  smoking is now targeted because of the ‘chemicals they contain’.

Can this Tide Be Turned Back?

I’d be curious to know if the chemical industry want to reverse the trend that the Achilles heel of smoking is seen to be “the 60 or so cancer causing chemicals that cigarettes contain”

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Pascal Lamy – The President of the Commission We Need Now

I have just read Pascal Lamy ‘s March 2012 talk at Oxford University.

It is a powerful case on the benefits of globalization. It should be read.

It reads as the manifesto of the President of the European Commission. He should have been. Weaker men were afraid of his energy and brilliance and choose a weak man. We live with the results.

Pascal Lamy  is the leader the  European Commission deserves. Perhaps his frugality, knowledge, courtesy to colleagues, disdain for fools (in and outside the Commission) are qualities weak leaders fear.  They should be.

Charles Grant’s book on Jacques Delors portrayed Pascal Lamy, his chief of staff, as a man who turned around a loose and weak Commission into one that showed leadership and promoted free trade. It seems a good time to bring that man back to turn around Europe again.

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A powerful case against allowing poverty

A powerful TED talk on the dangers of inequality.

Great line ‘If you want the American dream, move to Denmark.’

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How To Help Europe’s Fisheries – have lots of fish in the sea

Unsustainable Confusion

The reform of the Common Fisheries Policy (CFP) brings up some very strange debates. One getting a lot of people excited is about fish eco labels.  There are a lot of them and not many people seem to know what they mean.

There are a lot of labels around that say that fish is sustainable and fine to eat.

Here is a link to some of them.

NGOs also have their own ranking. The MCS, WWF Sweden, and Greenpeace.   A long list is here.

And, often they disagree with the designation by the companies doing the labeling. Greenpeace recently raised their concerns about the MSC.

This is all likely to confuse fish processors, fishermen, and retailers. And, for sure, it will confuse the majority of consumers.

 

How Could We Solve the Confusion?

Now, there is a very simple way to get around this problem. People want to know that their fish is sustainable to eat. Often this is because there is so little good and local stuff to eat. This is especially the case in Europe were fishermen have caught so many of them that today we now import over 60% of the fish we eat.

Big fish buyers are finding a hard time to buy sustainably caught fish. They are entering into long term contracts to corner the market for the remaining few stocks, which are well managed. The demand is there, the supply is not.

 

Designed in the Baltic 

The answer is amazingly simple. We just to have to look to the Baltic. A few years ago, Baltic cod was in perilous state. After years of mismanagement, fishing ministers decided to do their job properly. It is rarer than you’d hope. They listened to the scientists (and not fishing industry lobbyists) and followed the scientific advice on how much cod should be caught. They followed that rule for one year and then another. After following the best advice for a few years the stocks are in a very healthy way. And, if they keep going stocks will continue to grow.


Deep Simplicity

There is an easy way to get rid of all the eco labels and any confusion.  It’s so simple I am not sure why no-one has tried it before. Fishermen and fishing ministers can make sure that fish stocks are in a very healthy place. They can continue following some amazingly simple rules, like not harvesting more from the sea, than the sea can manage, year on year, and keeping doing that.

 

If they choose to follow the Baltic example, fish stocks and fish profits will prosper. If we did it in all of Europe, we’d have all the fish we’d want to eat. And, it would all be sustainable.  We would not need lots of competing labels to tell us a fish was sustainably sourced because they’d all be.

It’s such a simple idea, perhaps it will catch on.


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What do you want to be ?

A great piece from fast company on identifying what you want to be

Read it here.

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