34EFlow through TAC adjustments—significant changes in TAC

34E Flow through TAC adjustments—significant changes in TAC

34E Flow through TAC adjustments—significant changes in TAC

(1) If there is a significant change in TAC in a fishing period, an adjustment (referred to in this Part as a flow through TAC adjustment), calculated as provided by this clause, is required to be made to the CPI adjusted price in each subsequent fishing period until no further adjustment is required under this clause as a consequence of that significant change in TAC.

(2) For the purposes of this clause, a significant change in TAC is a percentage change in TAC of 20% or more (whether that change reflects an increase or decrease in TAC).

(3) If the significant change in TAC was a decrease of 20% or more, the adjustment required is a decrease to the CPI adjusted price in each subsequent fishing period of half the dollar amount (before rounding) of the relevant adjustment in the previous fishing period, until the amount of the decrease (after rounding) first reaches $1. No further adjustment is required as a consequence of the significant change in TAC after the amount of the decrease first reaches $1.

Note—

For example, if the percentage change in TAC in a fishing period (fishing period 1) is a decrease of 40%, the CPI adjusted price must be decreased by $4 in the year in which the decrease occurs as a result of the immediate TAC adjustment. Under this subclause, the CPI adjusted price would also be decreased in the next fishing period (fishing period 2) by $2 (half of the relevant adjustment in the previous fishing period), and by $1 in the fishing period after that (fishing period 3). A flow through TAC adjustment would not be required in fishing period 4.

(4) If the significant change in TAC was an increase of 20% or more, the adjustment required is an increase to the CPI adjusted price in each subsequent fishing period of half the dollar amount (before rounding) of the relevant adjustment in the previous fishing period, until the amount of the increase (after rounding) first reaches $1. No further adjustment is required as a consequence of the significant change in TAC after the amount of the increase first reaches $1.

Note—

For example, if the percentage change in TAC in a fishing period (fishing period 1) is an increase of 30%, the CPI adjusted price must be increased by $3 as a result of the immediate TAC adjustment. Under this subclause, the CPI adjusted price in the next fishing period (fishing period 2) would also be increased by $1.50 (rounded up to $2) and by 75 cents (rounded up to $1) in the fishing period after that (fishing period 3). A flow through TAC adjustment would not be required in fishing period 4.