ANNEX D - EXAMPLE OF HOW QUOTA INCENTIVE ARRANGEMENTS MIGHT WORK
ANNUAL REMOVAL OF QUOTAS
Example:
- Average end-year uptake of Scottish quota over rolling 3 year period - 90%
- Assume a 10% "tolerance" level (90% uptake less 10% = 80%)
- Average end-year uptake of Group A over period - 70%
Result - -10% of Group A's initial holdings ( i.e. at 1 January) converted to quota tonnage (based on allocation calculations) for relevant quota stock.
- -Quota so derived distributed at provisional allocations to groups (pro-rata to initial allocations) with average end-year uptake over assessment period of 90% or more.
Process repeated annually.