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Following the technical assessment of three proposed amendments to the UK fishing vessel licensing system, undertaken by Seafish at the request of MAFF and reported in TR 344, a further scheme for control of fleet capacity through restrictive licensing has been studied. The three amendments originally proposed by the Fisheries departments did not reduce capacity to the MAGP targets. The purpose of the further scheme was to see if a measure could be introduced to reduce capacity still more at the time an owner changes from one vessel to another. This scheme is based on the premise that, in order to introduce a new vessel into the fleet, licences of greater vessel capacity must be surrendered. Capacity is measured in terms of a Vessel Capacity Unit (VCU) formulation (VCU = L*B+0.45Kw), and derogation would be given for the direct replacement of a lost vessel. This report has been produced from a scanned original and may therefore contain some formatting and other inaccuracies. In cases where this affects the technical content, a paper copy of the original report can still be obtained from Seafish.