Ministers will provide up to 400,000 to support an expanded catch quota scheme for 2011.
Unlike traditional quota systems, where boats have a set limit for the amount of fish they are allowed to land, forcing them to throw any excess into the sea, the catch quota system allows for all fish that are caught to be landed.
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Hide AdThe Scottish Government funding will cover the cost of buying and installing monitoring equipment for fishing boats, to ensure the scheme is being adhered to.
Fishermen had to throw back 28,000 tonnes of fish, worth 33 million, in 2009.