Undue Adverse Effects Test
The purpose of the undue adverse effects (UAE) on fishing test is to assess whether a proposed marine farm will unduly affect recreational, customary or commercial fishing for specific fish stocks.
The aquaculture legislative reforms include provisions to streamline processes and integrate the UAE test within the Resource Management Act 1991 (RMA) consenting process.
Changes have also been made to balance the interests of commercial quota holders with those of aquaculture. Greater emphasis will be placed on agreements being reached between aquaculture applicants and quota holders, where a ‘reservation’ has been made for commercial fishing (that is, where the Chief Executive of the Ministry of Fisheries has found that the proposed aquaculture activity would have an undue adverse effect on fishing for quota management system (QMS) fish stocks). The changes only affect commercial quota holders. The changes will not affect how the UAE test is used for recreational or customary fishing for specific fish stocks or for commercial fishing for fish stocks not in the QMS.
As a safeguard in the event that the parties cannot reach an agreement, the reforms include:
- the option of independent arbitration; and
- requires the independent arbitrator to:
- determine whether the aquaculture activity will deliver materially greater value to New Zealand than the commercial fishing that would be unduly affected, and
- if it is determined that the aquaculture activity will deliver materially greater value determine the compensation payable to affected quota owners.
- provides for a methodology to be established in regulations to determine the value of the proposed aquaculture activity, the affected commercial fishing, and the compensation payable.
Consultation on arbitration methodology and determining compensation
The Ministry recently consulted on:
- developing an arbitration methodology to determine whether a proposed aquaculture activity would generate materially greater value to New Zealand than the commercial fishing activity it impacts; and
- determining the compensation payable to quota owners if adverse effects are undue.
Learn more about the consultation and review submissions received.
Download Cabinet Paper (PDF 601KB)
Download Cabinet Minute Undue Adverse Effects Test – Rescind Threshold (PDF 65KB)
Download EGI Minute of Decision Undue Adverse Effects Test – Further options to provide a better balance between fishing and aquaculture (PDF 279KB)
Download NZIER QA for UAE Valuation Formula (PDF 3.87MB)
Download Regulatory Impact Statement UAE Test (PDF 149KB)
Below is background information on the UAE test through the Aquaculture Legislation Amendment Bill (No 3) as it was introduced into Parliament on 9 November 2010.
Download Information sheet 3: Undue adverse effects on fishing test (PDF 108KB)
Download the joint industry proposal (PDF 340KB)
Download policy analysis on joint industry proposal (PDF 132KB)