34FAggregate TAC adjustments

#### 34F Aggregate TAC adjustments 34F Aggregate TAC adjustments > > (1) This clause applies if (but for this clause)— > > > > > (a) both an immediate TAC adjustment and one or more flow through TAC adjustments are required to be made to the CPI adjusted price for a fishing period, or > > > > > (b) more than one flow through TAC adjustment is required to be made to the CPI adjusted price for a fishing period. > > > (2) If (but for this clause) all adjustments would result in the CPI adjusted price being decreased, or all those adjustments would result in the CPI adjusted price being increased, the adjusted beach price for the fishing period is the CPI adjusted price adjusted by the aggregate of all those adjustments. > > > > Note— > > > > **Example 1.** The TAC in fishing period 1 is 100. In fishing period 2 the TAC is 130 (an increase of 30%). In the next fishing period (fishing period 3) the TAC is 143 (a further increase in TAC of 10%). Consequently, in fishing period 3 an increase in the CPI adjusted price of $2 is required because of the flow through TAC adjustment and an increase in the CPI adjusted price of $1 is required because of the immediate TAC adjustment. In such a case, the CPI adjusted price for fishing period 3 is to be adjusted on the basis of the aggregate of the 2 adjustments, in total an increase of $3. > > > > **Example 2.** The TAC for fishing period 1 is 100. The TAC for fishing period 2 is 80 (a decrease of 20%). In the next fishing period (fishing period 3) the TAC is 72 (a further decrease in TAC of 10%). Consequently, in fishing period 3 a decrease in the CPI adjusted price of $1 is required because of the flow through TAC adjustment and a decrease in the CPI adjusted price of $1 is required because of the immediate TAC adjustment. In such a case, the CPI adjusted price for fishing period 3 is to be adjusted on the basis of the aggregate of the 2 adjustments, in total a decrease of $2. > > > (3) If (but for this clause), any adjustment required to be made to the CPI adjusted price for the fishing period would be in the opposite direction from any other adjustment required to be made to the CPI adjusted price for the fishing period (that is, one adjustment increases the CPI adjusted price and another decreases it), the following provisions apply— > > > > > (a) the percentage change in TAC for the fishing period is to be recalculated using the TAC figure for the base fishing period in place of the TAC figure for the previous fishing period, > > > > > (b) the CPI adjusted price for the fishing period is to be adjusted on the basis of the immediate TAC adjustment that would be required (if any) if the figure calculated under paragraph (a) were the percentage change in TAC for the fishing period, > > > > > (c) the adjusted beach price for the fishing period is the CPI adjusted price for the fishing period as so adjusted, and no flow through TAC adjustment is required in the fishing period. > > > (4) For the purposes of subclause (3), the base fishing period means the fishing period immediately before the fishing period in which there was a significant change in TAC (within the meaning of clause 34E) as a consequence of which a flow through TAC adjustment would be required (but for this clause) in the current fishing period. > > > (5) If more than one fishing period would qualify as the base fishing period (because more than one flow through TAC adjustment would be required, but for this clause, in the current fishing period), the base fishing period is the earliest of them. > > Note— > > **Example 3.** The TAC in fishing period 1 is 100. In fishing period 2 it is 160, representing an increase of 60%. In fishing period 3 the TAC decreases to 128 (a decrease of 20%). In fishing period 4, the TAC decreases to 115 (a decrease of 10%). > > In fishing period 2 an increase of $6 to the CPI adjusted price must be made because of the immediate TAC adjustment. > > In fishing period 3 an increase to the CPI adjusted price of $3 is required because of the flow through TAC adjustment from fishing period 2 and a decrease to the CPI adjusted price of $2 is required because of the immediate TAC adjustment. For fishing period 3, the base fishing period is fishing period 1, because that is the fishing period immediately before the fishing period in which there was a significant change in TAC as a consequence of which a flow through TAC adjustment is required in the current fishing period. Accordingly, the adjusted beach price is calculated on the basis of the difference in TAC between fishing period 1 and 3 (100 to 128). This is an increase of 28%. Accordingly, the CPI adjusted price must be increased by $2. > > In fishing period 4, both a flow through TAC adjustment from fishing period 2 (an increase of $2, which is half the flow through TAC adjustment for the previous period) and an immediate TAC adjustment is required (a decrease of $1). The base fishing period is still fishing period 1, so the adjusted beach price is calculated on the basis of the difference in TAC between fishing period 1 and 4 (100 to 115). This is an increase of 15%. Accordingly, the CPI adjusted price must be increased by $1.