Annual Report for the Year Ended 30 June 1999

• Our Vision
• Principal Functions
• Chief Executive's Overview
• The Way Forward
• Key Achievements
• Environmental
• Biosecurity
• Treaty
• South Island Eel Fishery
• Fisheries Reform
• United Nations Fish Stocks Agreement (UNFSA)
• Management Contract
• Enforcement of Fisheries Policies
• The Ministry
• 1998/99 Financial Performance
• References

Annual Report for the Year Ended 30 June 1999

Key Achievements

Environmental

Environmental Measures

During the 1998/99 year, MFish had major input into the work carried out by the Ministry for the Environment (MfE) to develop environmental performance indicators for the marine environment. In particular, MFish took a leading role in developing an initial set of indicators for fishing and the impacts of fishing.

In December 1998, MfE released a draft discussion document, "Environmental Performance Indicators - Proposals for the Marine Environment", for public and stakeholder consultation. The Minister for Food, Fibre, Biosecurity and Border Control subsequently approved the first set of environmental performance indicators for the marine environment.

Ecosystem environmental indicators will provide an indication of how fisheries management measures impact on the ecosystem, and ensure that fisheries management practices are consistent with building a healthy ecosystem. In 1999/2000, monitoring and reporting frameworks will be developed for fishing and impacts of fishing environmental indicators. Indicators relatingto other aspects of the marine environment, particularly marine biosecurity, will also be developed.

The Ministry has continued its work on certain parts of the Fisheries Act 1996, including the environmental and other principles and international obligations and as detailed in the Chief Executive's Overview.

During the latter part of the financial year the Ministry worked with other departments and in particular the Ministry for the Environment and the Department of Conservation in reviewing the need for an integrated marine management strategy for New Zealand. At the end of the year the work was still in progress.

Biosecurity

The Ministry of Fisheries made some significant steps in marine biosecurity in 1998/99.

As well as our ongoing work administering and improving ballast water management, in November 1998 the Ministry took on the responsibility for exotic organism incursion response and surveillance in the marine environment. The Ministry then developed an incursion response protocol to provide a framework for incursion response. Further work related to the "creation" of a general surveillance network.

Pamphlets and posters were printed to help those using the marine environment identify some of our most feared potential marine pests. This network represents development of a collaborative approach to marine biosecurity with science providers, Ministry of Fisheries regional staff, head office staff, iwi and the public all contributing to better biosecurity.

In 1998/99 the Ministry let a contract for a National Pest Management Strategy (NPMS) for Undaria to be developed. This is another first - the first NPMS for a marine species and the first NPMS for the Ministry of Fisheries.

Focusing beyond our shores, the Ministry continued to work at the International Maritime Organisation to develop international measures for ballast water management, and with Australian agencies to promote information sharing and support on marine biosecurity issues between our two countries.

Treaty of Waitangi

Addressing the Crown's obligations in relation to fisheries, pursuant to Article 2 of the Treaty of Waitangi, is an important obligation for the Ministry. Making regulations to recognise and provide for customary food gathering by Maori, and the special relationship between tangata whenua and places of customary food gathering importance, is a significant component of the settlement of fisheries claims in relation to non-commercial fishing and an important contribution to addressing the obligations of Article 2.

In April 1998, customary fishing regulations covering the South Island were promulgated. These were followed by the Fisheries (Kaimoana Customary Fishing) Regulations 1999 covering the North Island and Chatham Islands.

Policy work proceeded during 1998/99 to define the obligations imposed on the Crown by the Treaty of Waitangi to ensure they are given full account in fisheries management decision making. Preliminary discussions began with iwi on options and processes for tangata whenua to have direct input and participate in fisheries management decision making.

By 30 June 1999, some 98 Tangata Tiaki/Kaitiaki had been appointed in the South Island, covering all areas where there is no dispute in respect of proposed customary food gathering rohe moana. In addition, the first maøtaitai reserve was established at Rapaki in Akaroa harbour. Ministry customary fisheries personnel provided input and support into training programmes for appointed Tangata Tiaki/Kaitiaki, as well as advice and information to tangata whenua on the application of customary fishing regulations. By the end of the year, an annual review of the South Island customary regulations was underway, as provided in the Ngai Tahu Deed of Settlement.

In the North Island, the first nominations for Tangata Tiaki/Kaitiaki entered the statutory appointments process prescribed in the Kaimoana regulations. In addition, a compliance contract was signed with Ngati Kahungunu and processes are underway for further contracts to be signed. A further 21 Fisheries Officers to support compliance with the Customary Regulations in the North Island were in the process of being appointed, in many cases at new locations.

South Island Eel Fishery

The eel fishery is of key importance to Maori as a mahinga kai and is central to a number of claims before the Waitangi Tribunal in respect of its position as a customary fishery.

The fishery was central to the resolution of the mahinga kai and ancillary claims sections of the Ngai Tahu claim. The fishery has a number of characteristics that would enable it to be enhanced and expanded for the benefit of both customary and commercial users.

To resolve the issues of Treaty rights and quota allocation and management, a joint Maori/industry group was established in 1996/97 to develop an eel management plan for the South Island. The objectives of the South Island eel management programme were:

• the sustainable utilisation of the fishery over the whole of the South Island;
• the resolution of Treaty grievances through adequate recognition of customary harvest and through appropriate local management and advice; and
• the introduction of the fishery into the Quota Management System with appropriate regulatory measures.

In June 1999, detailed management plans for the six management areas within the fishery were completed and presented to the Minister for Food, Fibre, Biosecurity and Border Control. These plans provide the basis for introduction of the fishery into the QMS.

The Deed of Settlement negotiated between Ngai Tahu and the Crown includes an obligation on the Crown to introduce the South Island eel fishery into the Quota Management System by 1 October 2000. Certain changes to fisheries legislation will be required if this obligation is to be met.

Fisheries Reforms

In early 1998, following concerns about the costs of implementing the Fisheries Act, the Minister for Food, Fibre, Biosecurity and Border Control commissioned an independent review of the Fisheries Act 1996. This review related to the operation of the fisheries quota management system under the Act. It included cost recovery, but excluded the purposes and principles, sustainability measures and the provisions relating to the Crown delivering upon its Treaty obligations.

The independent reviewer's report was submitted to the Minister in September 1998 and in November 1998, Cabinet decided to proceed with a series of reforms broadly along the lines recommended by the reviewer. Certain other reforms relating to aquaculture, improving the recreational right and fisheries co-management, were deferred in the meantime.

These reforms were subsequently incorporated into the Fisheries Amendment Bill (No. 1).

The Bill included reforms designed to:

• provide for the development of fisheries plans to manage fish stocks;
• amend the 1983 and 1996 Fisheries Acts, to allow the Minister to devolve the responsibility to provide registry and related functions to quota based organisations;
• simplify the Quota Management System catch balancing regime in the Fisheries Act 1996 and define criteria which will allow for some by-catch stocks to be managed at sustainable levels below that which produces the maximum sustainable yield;
• improve the offences and penalties provisions of the Fisheries Act 1996 to better reflect the nature of offences and ensure more efficient enforcement by amending the provisions of the Act relating to forfeiture, strict liability and the system for dealing with minor offences;
• improve the operation of the 1996 Act through a series of amendments to streamline or simplify the Quota Management System. The Fisheries Amendment Bill No. 1 was still to be reported back to the House by the Primary Production Select Committee as at 30 June 1999. Enactment of the Bill's provisions will require significant redesign of core Ministry operational processes, such as research planning, and setting sustainability measures. This implementation work has commenced with the passage of the legislation.

A second Fisheries Amendment Bill has also been considered by the Primary Production Select Committee this year. This Bill contains provisions:

• to provide for the introduction of eels to the quota management system;
• to provide for amendments to the scampi declaration; and
• to promote the ratification of the United Nations Fish Stocks Agreement related to Fourth Schedule issues.

The two Amendment Bills have subsequently been enacted after the end of the financial year. During the course of the year, Ministry staff were extensively involved in providing support to the independent reviewer, providing advice to the Minister and providing advice and support to the Primary Production Select Committee.

United Nations Fish Stocks Agreement

Previously there was no legislative framework to control or constrain the activities of New Zealand vessels or nationals fishing beyond our Exclusive Economic Zone.

The Fisheries Amendment Bill, since enacted, provides such a framework.

New Zealand is a signatory to the United Nations Implementing Agreement for Straddling Stocks and Highly Migratory Stocks. Ratification of the Agreement requires New Zealand to operate a regime to authorise the fishing by New Zealand vessels and nationals on the high seas. A number of reforms to current fisheries' enforcement and compliance regimes will also be required to enable New Zealand to meet obligations specified in the Agreement where a New Zealand flagged vessel violates the terms of a regional conservation and management regime.

The Government has agreed to ratify the United Nations Implementing Agreement for Straddling Stocks and Highly Migratory Stocks. The Fisheries Amendment Bill No. 3 provides the legislative basis for ratification of the Agreement. The Bill, now enacted, enables New Zealand to implement conservation and management measures contained in any regional fisheries arrangements to which it is a party or agrees to apply.

Management Contract

In March 1998 the Cabinet approved the outsourcing of registry based fisheries services to the fishing industry. This decision was subject to the findings of the independent Ministerial review of the Fisheries Act 1996, and would require legislative amendment to proceed.

Recognising the time constraints posed by the review and subsequent legislative amendment required, the Government directed the Ministry to explore with industry options for the interim provision of existing registry based fisheries services. The option considered most practical was a management contract between the Chief Executive and an industry-based organisation. The contract envisaged all the assets used by the Fisheries Services business group of MFish would continue to be owned by the Crown with the new provider of the services having full use of them. This option was favoured, as it kept the costs of transition to a minimum, and created as little disruption to services as possible.

During the second half of the year the Chief Executive worked with Commercial Fisheries Services Ltd, a wholly owned subsidiary of SeaFIC, and its preferred supplier, Datacom Employer Services Ltd, to implement the management contract.

By 30 June 1999, the three organisations had signed a Heads of Agreement outlining the common intent of the parties and the principles by which such an arrangement would operate. Staff would be employed by Datacom Employer Services Ltd, and would transfer to the new organisation on the basis of the agreed staff transition process. It was envisaged that the majority of staff would gain employment with Datacom, or residual positions within MFish.

The final contract was signed by mid July 1999 and the transition occurred at the start of August 1999.

Enforcement of Fisheries Policies

Compliance with Customary Fishing Regulations

Extensive consultation with iwi throughout the North Island has established in many areas the nature and extent of fisheries compliance services needed to support the implementation of the customary fishing regulations. A variety of arrangements with different iwi will result in the recruitment of staff to facilitate communication and working relationships between MFish and iwi in the development and implementation of compliance plans, to provide advice and support to Tangata Kaitiaki/Tiaki, to develop and implement educational programmes relating to customary fishing, and to assist with the recruitment, training and support of Honorary Fisheries Officers.

A number of new MFish offices will be opened in 1999/2000 to support the community based compliance programmes, and representatives of the local tangata whenua will be involved in the recruitment of officers. These new and existing offices will provide MFish with a good platform to support Maori customary fishing rights.

Licensed Fish Receiver Audit Programme

The first cycle of the annual licensed fish receiver audit reports was completed. The regulations resulted from an initiative to significantly improve compliance with the recordkeeping regulations. The initiative was a significant devolution of responsibility to a sector of the fishing industry.

The majority of audit reports identified deficiencies in respect of the recordkeeping regulations.

The most significant impediment to the completion of the audit reports was the lack of knowledge and expertise that the auditors had in fishing industry practice.

To overcome part of this constraint, an audit questionnaire was developed for use by smaller fish receiving operations. The questionnaire was designed to provide a simple guide for the smaller fish receiving operations and their auditors to the requirements of the audit and recordkeeping regulations.

It is expected that the use of the questionnaire and the experience of the first year of systems audits will result in a significant improvement in the quality of audits in subsequent years.