rig(spo) 7

Executive Summary

1. The rig (SPO) 7 Adaptive Management Programme (AMP) – including the current 403 tonne Total Allowable Catch (TAC) and 350 tonne Total Allowable Commercial Catch (TACC) – are not appropriate management tools for the fishery¹. Fishery dependent and fishery independent information suggests current catches are not sustainable and stock biomass is almost certainly below the level that produces the maximum sustainable yield (B_msy).
2. MFish intends to remove SPO 7 from the AMP and proposes the Minister of Fisheries (the Minister) set a TAC that restores SPO 7 to B_msy.
3. MFish does not have reliable stock projections necessary to derive an assessment based TAC. Instead, the four management options in this Initial Position Paper (IPP) reflect varying degrees of likelihood that a chosen TAC will restore SPO 7 to Bmsy.
4. Information on the status of SPO 7 and the biology of rig supports a TAC at the lower end of the range presented. However, a smaller TAC will have a bigger short term economic impact on the commercial fishery. The Minister should consider these factors when determining the rate at which SPO 7should be restored to B_msy and the likelihood a chosen TAC will restore SPO 7 to B_msy.
5. The Minister recently approved a fisheries plan for SPO 7 under s 11A of the Fisheries Act 1996 (the Act). With the plan operating properly, the more conservative management options are probably not warranted.
6. All management options, aside from the status quo, recommend a decrease in the TACC and the customary allowance.
7. Industry and MFish have spent significant resources investigating the status of SPO 7 over the past six years. MFish considers it necessary to maintain this momentum, particularly to develop on the new stock assessment to produce biomass projections in 2008.

Summary of Options

Table1: SPO 7 management options (tonnes).

8. MFish considers that management option one is not viable for the Minister to consider because it reflects the current management arrangement for the fishery. Current commercial catches under this arrangement are about 276 tonnes per year². The best available information indicates current catches will push SPO 7 further below B_msy.
9. Management option two reflects a 20% reduction in current commercial catch; management option three reflects a 33% (one third) reduction in current commercial catch; and management option four reflects a 40% reduction in current commercial catch.
10. The preliminary MFish recommendation is management option three. However, if the fisheries plan operates as approved – i.e. commercial fishers refrain from fishing for rig around Farewell Spit – MFish would give further consideration to management option two as a preferred recommendation in anticipation of a complete stock assessment in 2008.

Rationale for Management Intervention

Fishery characteristics

11. Stock status information and the preliminary results from an SPO 7 stock assessment suggest SPO 7 biomass is almost certainly below B_msy and current catches will continue to deplete the stock. The Act requires the Minister to set a TAC that will enable SPO 7 biomass to be restored to a level at or above B_msy.
12. The set net catch per unit effort (CPUE) index for the Tasman and Golden Bays portion of SPO 7 (approximately half the fishery) has declined by 70% since 198990. The West Coast South Island trawl survey also suggests that SPO 7 biomass has declined, and there is possibly recruitment over fishing. Appendix 2 provides further information on these two indicators.
13. MFish is concerned about fishing effort on rigin general statistical areas 038 and 037 around Farewell Spit. Pupping females migrate inshore to this area to give birth, at which time they are particularly susceptible to the target set net fishery. General statistical area 038 is an active part of the fishery – over half the target set net catch and a third of the bottom trawl catch comes from this area³.
14. Removing pupping females – and a large portion of the next cohort – from the fishery is likely to impact the overall productivity of the stock⁴. Rig are particularly susceptible to the effects of over fishing. Although they grow relatively quickly and mature at a relatively young age, they are long lived and have low fecundity.

Adaptive management programme

15. The current SPO 7 AMP concludes on 30 September 2006⁵. The level of monitoring of the fishery within this current AMP term has been satisfactory but the performance of the fishery has not. The TACC has been consistently under caught and trends in the accepted abundance indices for the fishery suggest current catches are not sustainable and biomass is below B_msy – see Appendix 2.
16. MFish considers it is not appropriate to manage a fishery with these characteristics in the AMP. MFish intends to terminate the AMP on 30 September 2006.

Assessment of Management Options

17. A preliminary stock assessment was presented to the AMP Fisheries Assessment Working Group as part of the full term review of the SPO 7 AMP. MFish does not propose to base TACs on biomass projections until the model is updated with additional data in 2008. MFish acknowledges the model indicated that SPO 7 was almost certainly below B_msy. However, there is uncertainty as to where the stock is in relation to B₀ (unfished biomass). It is therefore not possible to produce reliable stock projections necessary to derive an assessment-based TAC. MFish expects that some of the model assumptions will be tested in the next iteration of the stock assessment to confirm some of the model outputs.

TAC

18. SPO 7 is almost certainly below B_msy. Section 13(2)(b) of the Act requires the Minister to set a TAC that restores SPO 7 at or above B_msy in a period appropriate to SPO 7, having regard to the biological characteristics of SPO 7 and any environmental factors affecting SPO 7. In considering the way and rate at which a new TAC moves SPO 7 towards B_msy the Minister must have regard to interdependence of stocks and relevant social, economic and cultural factors⁶.
19. MFish proposes four different TACs, each of which has a different likelihood of restoring the stock to Bmsy and each of which will have different impacts on fishery users. MFish recommends the Minister consider the following issues when determining which management option to choose:
    • SPO 7 Fisheries Plan;
    • SPO 7 stock status information and biology;
    • Social, cultural and economic factors; and
    • Other statutory considerations (discussed in Appendix 1).

SPO7 fisheries plan

20. The Minister recently approved a fisheries plan for SPO 7 under s 11A of the Act. The Challenger Fin fisheries Management Company Ltd (CFMC) is the fisheries plan proponent.
21. Although s 11(2A)(b) of the Act requires the Minister to take the fisheries plan into account prior to setting a TAC for SPO 7, the fisheries plan does not remove the Minister’s primary responsibility to set a TAC that will restore SPO 7 biomass to or above B_msy.
22. The fisheries plan contains two major initiatives the Minister should take into account before setting a TAC.

Farewell Spit fishing closure

23. Industry has voluntarily refrained from fishing in a closed area around Farewell Spit since the 2004 - 05 fishing year in order to increase survival of pupping females. CFMC incorporated this area closure into the fisheries plan.
24. MFish believes this closure will mitigate some of the risk that fishing around Farewell Spit poses for stock productivity and considers that it warrants a higher TAC than would otherwise be appropriate. This assumes a priori that industry continues to support the closed area through the fisheries plan under a TACC lower than the current one. MFish will confirm this with CFMC before the Minister makes his final decision on a TAC and allocations.
25. The preliminary stock assessment did not model the impact of this management measure on stock status. In addition, MFish does not have fine scale data to determine the quantity of fish historically taken from the closed area. In setting the TAC, the Minister should balance the potential but unqualified of the closure on stock productivity against other factors relevant to his decision. MFish considers that management options three and four might represent an excessive TAC reduction if fishers are also excluded from the area around Farewell Spit.

ACE shelving

26. In order to accelerate the SPO 7 stock rebuild the fisheries plan provides for an Annual Catch Entitlement (ACE) shelving arrangement to limit the commercial harvest below the TACC. The fisheries plan is committed to ACE shelving “provided the TACC remains at a level that provides for this process”. Shelving ACE is addressed in the Statutory Obligations and Policy Guidelines section at the front of this IPP.
27. The Minister must set the TAC at a level that will result in a stock being restored to B_msy. Shelving can be used to increase the rate at which the stock is restored, and the Minister may take this into account under s13(3) when setting the TAC. Shelving may therefore be used as a mechanism to assist the way or rate the stock is restored to B_msy,not as an alternative to setting the TAC at the appropriate level.
28. The SPO 7 rate of rebuild should increase if industry agrees to shelve ACE under any of the management options identified by MFish except management option one. However,it is not clear from the fisheries plan if CFMC is prepared to shelve below the other management options proposed by MFish in order to accelerate stock rebuild.

SPO7 stock status information, biology and interdependence of stocks

29. Rig are typically susceptible to the effects of over fishing. Although rig grow relatively quickly and mature at four to five years they have low fecundity and are relatively long lived (perhaps over 20 years). This suggests a cautious approach and a more conservative (lower) TAC.
30. The fisheries plan, if operating properly, manages some of this risk by closing an area around Farewell Spit to commercial fishing. The impact of this action on the management options is discussed above.
31. There is no evidence of interdependence of stocks of significant magnitude to impact on the setting of the TAC. School shark and dogfish are occasional by catch in the SPO 7 target fishery but are both managed with output controls (i.e. catch limits) in the QMS.

Social,cultural and economic factors

Potential economic losses

32. MFish has little information to assess the economic impact of the options it proposes. Under the assumption that the entire 350 tonne TACC is available the potential value of the fishery based on the 200506 port price is $917 000⁷. At 276 tonnes – current catches – the value would be $723 120.
33. Based on the port price information, the potential loss to industry is significant under management options two, three and four. The fishery would return $579 020 under management option two, $476 840 under management option three and$434 920 under management option four.
34. MFish acknowledges that the port price is probably not stable over the range of potential commercial catches available at the current TACC, i.e. the port price might be different if supply was greater. The port price also represents an average of landed values and therefore does not necessarily represent the value to any one individual fisher. MFish considers this coarse analysis illustrates the potential for significant losses to industry in the short term under the management options MFish proposes.
35. MFish considers that in its current state SPO 7 is not capable of sustainably delivering more than 279 tonnes. When assessing potential economic loss under different management options, it would be unwarranted to assume losses from a 350 TACC rather than from current catches.
36. This is the best information available to MFish at this time – MFish invites submitters to submit additional information on the economic impacts associated with the proposed management options.

Potential impact on by catch fisheries

37. The lower TAC options could affect the way commercial fishers operate in fisheries where SPO 7 is taken as by catch Although SPO 7 is largely a target set net fishery, about 62% of the catch is caught in the flat fish and barracouta target trawl fisheries.
38. The extent of the catch level reductions proposed in the management options will limit the supply of ACE. It is possible that the by catch fishery could be constrained if commercial fishers determine they get better value from the SPO 7 target fishery. There is some scope for flatfish and barracouta trawl fisheries to pay deemed values if they are unable to cover their SPO 7 by catch with ACE. This provides some measure of relief for unintended by catch in small quantities in other target fisheries.
39. Alternatively, there could be rationalisation in the target set net fishery if commercial fishers decide to use limited ACE to cover SPO 7 by catch MFish considers the Minister needs to be aware of these potential effects if considering a management option with a lower TAC but with a greater chance of rebuilding the fishery and at a faster rate.

Other social and cultural factors

40. The fishery will continue to decline under current commercial catches and will most likely impact other fishery users. Compared to the commercial fishery, non-commercial catches are not substantial. Nevertheless, recreational and customary fishers do target and catch SPO 7 and there is evidence to indicate that rig was historically of special value to Maori. The value of the fishery to non-commercial users will decline if the stock continues to remain below B_msy.
41. MFish considers the Ministers TAC choice needs to reflect a rebuild strategy to provide for all aspects of value –economic, social and cultural – in the medium to long term. Current management arrangements will not provide for this.

Preferred management option

42. MFish considers that management options two and four reflect the limits within which the Minister can exercise his discretion in determining the TAC and allocations. The range of potential choices between these two management options reflect different likelihoods of restoring SPO 7 to or above B_msy. The rate of biomass increase and the impacts on fishery users will also be different within the range of management options (Table 2).

Table2 Potential effects of SPO 7 management options.

43. SPO 7 biomass will almost certainly continue to decline under management option one. Although this management option will have the least immediate impact on commercial users of the fishery it is not a viable choice due to the sustainability risk.
44. Management options three and four give MFish more confidence that SPO 7 biomass will rebuild. Catches have never been as low as those reflected in management options three and four and MFish believes this type of intervention might be necessary based on stock status information. MFish considers the Minister needs to set a TAC that reflects the susceptibility of SPO 7 to over fishing. by providing for a relatively faster rate of biomass increase.
45. Management options three and four will have larger short term impacts on the commercial fishery, and represent a significant utilisation reduction. They also do not recognise the likely contribution of the Farewell Spit closure. MFish considers this action mitigates some of the sustainability risk and increases the likelihood that, under management option two, SPO 7 biomass will increase in a way and rate appropriate to the stock. MFish would only be comfortable recommending management option two if industry do not fish in the closed area. Otherwise management option three remains the preferred choice.
46. MFish and CFMC will discuss a Memorandum of Understanding (MOU) over the operation of the fisheries plan before the Minister makes his final decision on a TAC and allowances for SPO 7. MFish expects CFMC to confirm whether or not the closed area will remain in place under management option two.

TACC and allowances

47. Although non-commercial catch occurs and therefore affects the rate of rebuild, MFish does not consider non-commercial extraction levels to be significant in comparison to the commercial harvest. Under the AMP framework, the commercial sector benefited by a high TACC, and therefore gained a disproportionate benefit from the fishery during times of greater abundance. For these two reasons, MFish is proposing to depart from the default proportional response to declining TACs and leave the current recreational allowance in all the management options.
48. The current and proposed recreational allowance – 29 tonnes – falls within the recreational harvest estimate range from the latest recreational harvest survey (the 199900 survey). MFish still considers this allowance reflects the recreational SPO 7 harvest even though the 199900 estimate ranged from 21 tonnes to 46 tonnes. The variance associated with this range estimate (38%) does not support a different allowance at this time.
49. MFish proposes a 15 tonne customary allowance in management options two, three and four. The current allowance is 24 tonnes. The allowance for customary use is not set to constrain catch, but to reflect levels of current utilisation. MFish acknowledges that customary fishers harvest rig and that rig was historically of importance to Maori. However, MFish has no information to suggest customary fishing permits are issued for SPO 7 in quantities equivalent to high use customary fisheries like paua, rock lobster and snapper. MFish guidelines for species known to be taken by customary fishers but not of current importance is to set the customary allowance at half the recreational allowance.
50. MFish considers the proposed 15 tonne allowance for customary fishing should fully satisfy customary interests.
51. MFish proposes a five tonne allowance for other sources of fishing related mortality in all five management options. This allowance is nominal – MFish has no quantitative information on the level of illegal removals and other sources of fishing related mortality. However, unknown quantities of juvenile rig are caught by set nets placed in harbours and shallow bays and some dead rig are likely to fall out of the net when it is being hauled. In addition, because of the nature of this fishery dumping was historically prevalent in the trawl fishery and probably still occurs on a smaller scale.
52. MFish proposes four different TACCs within the context of the TAC (Table 3). Only three of these are viable options for reasons discussed above. The preferred TACC option is linked to the preferred TAC option in management option three.

Table3 TACC options associated with each management option.

Other management controls

53. MFish considers the current annual deemed value (which is higher than the 200506 port price) is a sufficient deterrent for commercial fishers without SPO 7 ACE to continue fishing.
54. As rebuilding occurs in the future, MFish will assess if changes to non-commercial controls are required to ensure that catch is limited to allowances.

Other management Issues

Research

55. Industry and MFish have invested significant resources investigating the status of SPO 7 over the past six years. MFish considers it necessary to maintain this momentum, particularly to build on the stock assessment to develop biomass projections.
56. MFish considers the stock assessment should be repeated once the results of the 2007 West Coast South Island trawl survey become available. The results should be available by March2008 in order to review SPO 7 sustainability measures again if necessary for the 200809fishing year.
57. There are two ways this research can be conducted. MFish can purchase research and recover the cost from industry or, more ideally, industry and MFish can build on the research programme used in the AMP to ensure that the data required for a robust stock assessment in 2008, as recommended by the AMP FAWG in May 2006, are collected. MFish intends to investigate these possibilities in developing a MOU with the CFMC over the operation of the fisheries plan.

Compliance

58. MFish recognises the potential for additional compliance problems in SPO 7 under the TACC options presented. ACE will be limited in supply and potentially unavailable to cover by catch Key compliance concerns in these types of fisheries relate to misreporting (weights, area and species) and dumping. In part, MFish relies on the integrity of the QMS and the incentives that allocated fishing rights (ITQ) provide to manage sustainably. Outside of this MFish will rely on at sea surveillance, in particular the aerial surveillance, to detect dumping. This is a significant compliance cost.

Preliminary Consultation

59. MFish has engaged with the CFMC over the main issues involved in this SPO 7 review but, at this time, CFMC has opted to retain its position in anticipation of the statutory consultation period.