Fixed quota allocations formally came into operation in January 1999. They are the mechanism by which the UK’s quotas are divided annually between producer organisations, the non-sector and the under 10 metre fleet. Quotas are allocated in proportion to the number of FQA units held by the vessels in membership of each group on 1 January of each quota year. These units, with one or two exceptions, reflect the catches made by fishing vessels during the reference period 1994 to 1996. For vessels over 10 metres the units are linked to individual vessel licences and normally move with the licence when it is transferred or aggregated onto another vessel. For vessels under 10 metres there is a single block of units based on the aggregated activity of that part of the fleet during the 1994 to 1996 reference period. In announcing the introduction of FQAs in June 1998 Ministers advised that under the new arrangements no facility was being made for the separate disposal of all or part of the units associated with fishing vessel licences and that the operation of FQAs would be reviewed after 3 years.