REVIEW OF FISHERIES COST RECOVERY

The government has decided to review parts of the fisheries cost recovery framework.

The Fisheries Act 1996 enables the Crown to recover some of the costs of fisheries services and associated conservation services, and lists a set of principles that underpin the setting of cost recovery levies. The government has agreed that these principles are sound, but that other parts of the framework should be reviewed to improve its effectiveness.

Accordingly, the scope of the review is limited to: 

• The Fisheries (Cost Recovery) Rules 2001, which set out the proportions of the costs of services to be recovered from the fishing industry and how they are to be allocated amongst industry players; and
• How these Rules are applied to the setting of levies, including the way in which services are specified are the under-recovery and over-recovery of costs.

To advise the government on improvements that could be made to the cost recovery framework, a joint government/industry working group is being established, made up of officials from government agencies responsible for cost recovery and representatives nominated by the fishing industry. The joint working group is to develop options for changes to cost recovery and prepare a report by the end of March 2007. The terms of reference for the joint working group will be finalised shortly and will then be published on this website.

After considering the joint working group’s report, Ministers may agree that some changes to the Rules are desirable. If so, fisheries stakeholders will be consulted on the proposed changes. MFish intends to consult widely on any proposed changes, as stakeholders may have an interest in the potential impacts of cost recovery on fisheries management outcomes. Consultation would probably take place around mid-2007, to enable final decisions and changes to administrative systems to be made in time for new cost recovery levies to be in place for the 2008/09 year.

Further information on the review may be found in the Cabinet paper:

 Download Cabinet Paper (PDF 58kb)