Annual Report for the Year Ended 30 June 2000

• Our Vision
• Chief Executive's Overview
• Key Achievements
• 1999/2000 Financial Performance
• References

Annual Report for the Year Ended 30 June 2000

Output Class Service Performance

Output Class D3 Regulatory Management

Description

Under this class of outputs, the Minister of Fisheries purchases services to develop guidelines, regulations and processes, which make the fisheries policy framework operational.

Objectives

The objectives of this output class are to:

• provide advice to support sustainable fisheries
• assess special fisheries access requests
• provide support for international fisheries arrangements
• advise on legislative and government regulatory processes
• manage the cost recovery process.

Scope

The outputs in this output class are

• Sustainability and utilisation measures: The process of preparing advice papers and consulting with stakeholders on the proposed changes to sustainability measures and controls.
• Management of impacts of fishing: Providing the capacity in the Ministry of Fisheries to undertake projects aimed at avoiding, mitigating and remedying the impacts of fishing on protected and other species.
• Assessment of management proposals: Assessing specific fisheries management proposals under the fisheries legislation, including proposals to manage local customary fisheries, and proposals to implement dispute resolution outcomes.
• Supporting international arrangements: Representing New Zealand in the maintenance on international arrangements.
• Legislative implementation: Guidelines and regulations to operationalise amendments to the Fisheries Act 1996.
• Advice on related government regulatory processes: Input into statutory processes managed by other government or regional agencies which could impact on fisheries.
• Education and information services: Management of enquiries and information relating to New Zealand's fisheries.
• Cost recovery: The process through which the Crown recovers costs from the commercial sector of the fishing industry.

Achievements during the year

Sustainability and Utilisation Measures

In this activity, the Ministry utilises the information provided through the fisheries research projects to assist it in developing the advice papers to the Minister of Fisheries on sustainability measures required for the forthcoming fishing year. The Ministry's work culminates in two specific advice papers, one in August for the October fishing year and the other in March for the fisheries with an April season (eg rock lobster). These papers seek the Minister's approval for setting the total allowable catch and total allowable commercial catch for the relevant fishing years.

1 October 1999 measures

The final advice paper on the review of sustainability measures for the fishing year commencing 1 October 1999 was completed on 13 August 1999.

MFish consulted with stakeholders on proposed regulatory amendments during the sustainability measures and management controls process. Four amendments to fisheries regulations were approved by Cabinet - amendments to the Fisheries (Reporting) Amendment Regulations (No.2) 1999, the South Island Customary Fishing Regulations 1999, the Fisheries (Auckland and Kermadec Areas Commercial Fishing) Regulations (No.3) 1999, and the Fisheries (Auckland and Kermadec Areas Amateur Fishing) Regulations (No.2) 1999. The amendments came into effect on 11 November 1999.

1 April 2000 measures

No sustainability decisions were required for the fishing year commencing 1 April 2000. Advice to this effect was given to the Minister on 4 April 2000. Five regulations relating to management controls were introduced. These were the Fisheries (Reporting) Amendment Regulations 2000, the Fisheries (Amateur Fishing) Amendment Regulations 2000, the Freshwater Fish Farming Amendment Regulations 2000, the Fisheries (Auckland and Kermadec Areas Commercial Fishing) Regulations 2000 and the Fisheries (Southern Bluefin Tuna Quota) Regulations 2000.

2000/2001 Fishing year

The Minister approved the processes to review the sustainability measures for the 2000/2001 fishing year on 22 May 2000. A preliminary evaluation and assessment of a set of proposals for possible inclusion in the review has been conducted. Proposals were assessed against a set of criteria determined by the Ministry and confirmed by the Minister. Stakeholders were informed on the criteria and the initial list of proposals.

It is not intended to review management controls for non-QMS fisheries as part of the process of developing a revised framework, and a transition regime, for non-QMS species.

Departmental draft of legislation containing the proposed QMS framework and allocation mechanism for Provisional Catch History for the South Island eel fishery was completed and circulated for comment. Legislation has been enacted to allow the introduction of the SI eel fishery into the QMS as from 1 October 2000.

On 6 June 2000, MFish released to stakeholders an initial position paper (IPP) for the review of sustainability measures for the fishing year commencing 1 October 2000. On 22 June 2000, the Minister sent to stakeholders a letter that outlined his preliminary views on the proposals in the IPP.

Catch data was used to review options for the fourth quarter 1999 and the first and second quarters of the 2000 calendar year. Following consultation, the appropriate Fisheries (Bycatch Trade-Off) Notices were gazetted.

The review of deemed values is being undertaken as part of 2000 sustainability review. Consultation on proposed changes has been initiated with stakeholders. Advice is expected to be tendered to the Chief Executive by late August with changes to take effect on 1 October 2000.

The review of conversion factors is being undertaken as part of 2000 sustainability review. A meeting of the Conversion Factors Working Group was held 15 June 2000 to discuss proposals. Advice to Minister of Fisheries on changes to conversion factors is to be included in Final Advice Paper and amended Gazette Notice implementing changes to take effect on 1 October 2000.

The review of the recordkeeping framework, which was intended to be reviewed by 1 October 1999, has been significantly changed - with a primary focus on the Ministry's needs associated with the electronic transmission of data to the Ministry/Approved Service Delivery Organisation (ASDO) rather than focus on the information requirements the Ministry needs on an ongoing basis. This project has now been subsumed within the devolution project.

Management of Impacts of Fishing

One of the aims of fisheries management is to avoid, mitigate and remedy the impacts of fishing on protected and other species. This output is about providing capacity within the Ministry of Fisheries to undertake projects and review regulations with the objective of achieving this aim.

Following consultation with stakeholders, the Minister of Fisheries and the Minister of Conservation, on 11 October 1999, approved an operational plan for the management of the squid fishery interaction with NZ sea lions. The squid fishery was closed once the limit set in the operational plan for sealion bycatches was reached.

By 30 June 2000, discussions had been commenced with industry on the operational plan for the 2000/2001 fishing year.

Assessment of Management Proposals

This output relates to the assessment of proposals for specific fisheries purposes under the Fisheries legislation. During the year a full review of all special permit purposes was undertaken, the Minister confirming or declining each purpose individually.

Particular special permits issued during the year included the collection of beach cast seaweed and the taking of fish for sale to the Seoul Aquarium for public display.

An application for Maori access to pilchard and tuna commercial fisheries was declined.

The timeframe for determining special access requests was not monitored on a consistent basis.

At the time of writing this report, a proposal for special permits for paua broodstock had been prepared for consideration by the Minister.

In respect of customary Maori fisheries, a proposal for temporary closures off the coast of Napier had been advertised and consultation was underway.

Consultation had commenced with Rapaki Tangata Tiaki/Kaitiaki on amending mätaitai bylaws.

During the year, the Ministry participated in the resolution of two voluntary settlements between stakeholder groups. In addition, advice was provided to the Minister pertaining to regulatory controls on netting practices in the Tauranga Harbour recommended by the Dispute Resolution Commissioner. The groups concerned were unable to agree with the recommendations from the Commissioner and the imposition of regulations was required.

In this latter dispute it was not possible to maintain the requirement to resolve the process within three months.

Supporting International Arrangements

New Zealand, along with Australia and Japan, is party to the Commission for the Conservation of Southern Bluefin Tuna (CCSBT). New Zealand's participation in CCSBT is an important contribution to our international efforts to secure sustainable management of this fishery with significant implications for the management of other high seas stocks. In 1997/98 and 1998/99 Japan undertook experimental fishing programmes to take a greater share of the SBT stocks than permitted by the Commission. New Zealand and Australia opposed this move and initiated legal proceedings against Japan.

In other international agreements, the Convention for the Conservation of Antarctic Marine Living Resources (CCAMLR) Catch Documentation Scheme was implemented in May 2000 by way of regulations. The CCSBT trade information scheme was implemented in June 2000.

New Zealand's negotiating positions have at all times been approved by the Minister prior to negotiations taking place.

Legislative Implementation

This output deals with issues relating to legislative amendments to the Fisheries Act 1996.

The project to develop operational policies relating to Parts II & III of the Fisheries Act 1996 has largely been completed. By 30 June 2000 all but one of the policy papers developed as part of this project had completed the external review process and feedback from external stakeholders had been or was about to be incorporated into policy definitions. The draft policy papers were presented at four stakeholder workshops.

A decision-guide software programme has been developed that provides a framework for definitions and other appropriate information of Parts II and III. It is designed to provide MFish staff and stakeholders with capability to understand obligations of these sections of the Fisheries Act 1996. Refinement of the decision guide will be undertaken in 2000/2001.

The Minister of Fisheries has agreed to extend the deadline for completion of framework for fisheries plans to 30 June.

Advice on Related Government Regulatory Processes

This output relates to the provision of input into the statutory processes managed by other government or regional agencies which could impact on fisheries matters within the Ministry's range of responsibilities

During the year the Ministry undertook a joint programme with the Department of Conservation on conservation and management measures for the North Island population of Hector's Dolphins. This included attendance/participation at/in multi-disciplinary workshops; stakeholder meetings; preparation of internet-based public information document.

In accordance with the provisions and timeframes in the Resource Management Act, the Ministry also provided submissions on

• marine dumping permit applications;
• the Pine Harbour Marina dredging proposal;
• the Southland Coastal Plan;
• coastal resource consent applications; and
• development of a management plan for marine dumping sites in North region.

Education and Information Services

This output covers the management of enquiries and information relating to New Zealand fisheries.

A total of 20 meetings of Fisheries Liaison Committees were held to provide information to stakeholders throughout the country.

In addition, briefings were provided to foreign visitors on NZ fisheries management systems.

Cost Recovery

The initial cost recovery levies for the 1999/2000 year were completed and gazetted on 26 August 1999 (for the fisheries services components) and 6 September 1999 (for the conservation services components). These levies were effective from 1 October 1999.

A further Gazette Notice establishing revised cost recovery levies was issued in November 1999. This second Notice gave effect to the decisions arising from the recommendations of the cost recovery working group which were promulgated in the Crown Contribution Order 1999. These decisions included the full costs of output class 3 Regulatory Management and the costs of poaching and blackmarket activities in output class 5 Enforcement being met fully by the Crown.

The revised levies came into effect on 1 December 1999.

The Fisheries Services Plan plenary was held in early April 2000. Final decisions on services to be provided in 2000/2001 were made by the Minister of Fisheries on 12 June.

Preliminary work was undertaken on the cost recovery model, preparatory to holding the cost recovery plenary, scheduled for July 2000.

Financial Performance

Table of Financial Performance.

	30/06/00 Actual $000	30/06/00 Budget $000	30/06/00 Actual as % of Budget

Revenue:
Crown	4,332	4,332	100
Other	0	0	-

Total revenue

4,332

4,332

100

Expenses:
Sustainability and utilisation measures
Review of sustainability measures	1,543	1,245	124
Allocation of access	253	294	86
Regulation reviews	110	13	846
Management of QMS processes	215	181	119
Review reporting and recordkeeping framework	76	136	56
Management of impacts of fishing	293	286	103
Assessment of management proposals
Special access requests	28	148	19
Implementing outcomes of disputes processes	150	215	70
Supporting international arrangements	377	397	95
Legislative implementation	529	822	64
Advice on related government processes
Input into other regulatory processes	100	103	97
Assessment of proposals under Resource Management Act	46	58	79
Education and information services	180	152	118
Cost recovery	284	282	101

Total expenses

4,184

4,332

97

Surplus

148

0

-

Output Class D4 Fisheries Access and Administration

Description

Under this class of outputs the Minister of Fisheries purchases services associated with fisheries access including the:

• issue of fishing permits and licences
• management of registry and recording systems.

Objectives

The objectives of this output class are to:

• issue permits, licences and leases for access to New Zealand's fisheries
• maintain the quota register
• manage the statutory reporting functions associated with approved access to fisheries
• implement the devolution of registry based and related services
• manage the Ministry 0800 information service

Scope

The outputs in this output class are

• Management of access for fishing activities: Management of the processes relating to the granting of fisheries access rights.
• Management of property rights: Management of the fisheries property rights information bases.
• General fisheries access and administration services: Services to assist fisheries access and administration.
• Education and information services: Management of enquiries and information relating to New Zealand's fisheries

Achievements for the year

Management of Access for Fishing Activities

This output concerns the management of the processes relating to granting of access to fisheries rights.

A total of 52 special permits were issued in accordance with the requirements of the special permit manual instructions.

32 Kaitiaki received appointments through the Minister this year. All appointments were in accordance with legislative requirements.

A Maori Land Court hearing for Deleware Bay taiapure application was held.

Mataitai reserve applications were received for areas off D'Urville Island and Napier.

The Minister approved the Kawhia/Aotea Taiapure and a Gazette Notice was issued.

A committee of management was appointed to process the Waikare Inlet taiapure application.

There is a three day standard for the issue of fishing permits. Some permits were not issued within 3 days at the end of September due to the backlog which built up during the annual repermitting process. However, all applications which were received by the September date notified to fishers, were processed and permits were issued.

During the year:

• 142 aquaculture authorisations were issued.
• 95 freshwater fish transfers were authorised.
• 4 applications to vary permits were processed in accordance with the provisions of s63(4) the Fisheries Act.
• 3 reviews were competed in accordance with the provisions of s63(11) of the Fisheries Act.
• Four provisional and one final decision(s) were made on reviews lodged under s329 of the Fisheries Act 1996.

The requirement that a minimum of 90% of licensed fish receiver licence applications be issued within 15 working days of receipt of correct information was not met.

Management of Property Rights

This output covers the management of the fisheries property rights information databases.

During the year, the Ministry instituted a formal mechanism for reporting on the number of quota trades processed without error. In the period April to June 2000, a total of 1266 trades were processed with only 27 errors - an error rate of 2.1 percent. All quota trades were processed and recorded within one day of receipt.

The quota trades register is maintained in an up to date condition.

The requirement that at least 97% of data will be captured correctly from statutory reports has also been met within the year. A monthly follow-up cycle is now operative for quota management returns in preparation for the provisions of the 1996 Act.

All monthly balancing performance expectations were met. These include a 100% check on validating returns to ensure the data entered on the registers is completely accurate, providing monthly balance reports of catch effort by individual fishers against the amount of quota they hold within six weeks after the end of each month and ensuring that less than 15% of the errors found in monthly balance reports are due to Ministry fault.

General Fisheries Access and Administration Services

This output consists of services to assist fisheries access and administration.

During the year the Ministry:

• provided information to recreational fishers concerning a dispute in Marlborough Sounds over flatfish access;
• provided advice to Minister on the resolution of an Eastern Bay of Plenty dispute;
• provided information to recreational fishers/community concerning a possible dispute about the effect of trawling off Hokianga harbour;
• responded to 100% of industry requests for observer services within 24 hours
• maintained membership of authorities and boards and provided them with appropriate support;
• maintained on-going monitoring of competitive catch limits in kahawai, scampi, southern bluefin tuna, anchovy, garfish, pilchards, sea cucumber, sprats, kina, scallops, butterfish, and cockle fisheries, closing fisheries when limits were reached;
• closed the bluefin tuna fishery for 1999-2000 fishing year by notifying, by letter, all tuna permit holders on 30 June 2000, with effect from 4 July 2000;
• processed all request for information in line with the requirements of the Official Information Act and the Privacy Act.

A Management Contract for the external delivery of fisheries registry services became effective from 1 August 1999. This secured delivery arrangements which were legally robust and at the same time minimised the risks in the delivery of registry and associated services.

Following completion of the Management Contract work has begun on the development of standards and specifications for devolved and contestable services. High level principles have been completed to guide this development. Initial work has also been completed on the regulations required for devolved and contestable services.

Work has also begun to establish the information technology and management infrastructure to support the capture, exchange and analysis of information in a devolved environment. This is a two-year project scheduled for completion by 1 October 2001.

The project scope has been revised to accelerate the introduction of Electronic Data Transfer (EDT) for the 1996 Act. Work has also been undertaken to consider whether the EDT framework should also apply to the 1983 Act. The implications of these changes are still being considered. As such, the focus of much of the work and planning has been to establish and agree the information technology and management infrastructures required to support the capture, exchange and analysis of information in a devolved environment.

Drafts of policies relating to the devolution project were released on 8 June 2000 covering:

• Commencement framework
• Crown intervention principles
• Fees and charges
• Performance monitoring (includes Service delivery reporting and record keeping)
• Litigation support
• Commodity levies
• ASDO governance (includes reversions)
• Sanctions

Work has commenced on a Governance structure for the overall programme resulting in a draft Charter being developed. Work commenced in March 2000 on policy definitions, and business process analysis and design work commenced late March for service delivery requirements/systems design build and test. Systems requirement definition development began late April

SeaFIC directors and shareholders have made the necessary commitment to fund the proposed new systems development essential for the likely Approved Service Delivery Organisation (ASDO) application.

Education and Information Services

This activity covers the management and handling of Fisheries Services related enquiries and information. This includes the referral of callers to other business units within the Ministry for information relevant to them.

All documents and reports were provided or published within specified deadlines after approval.

More than 95 percent of calls to the 0800 service continue to be handled by the Ministry without reference to the Answer Service. Responses to fisheries services calls are provided within three days of the initial call.

Financial Performance

Table of Financial Performance.

	30/06/00 Actual $000	30/06/00 Budget $000	30/06/00 Actual as % of Budget

Revenue:
Crown	9,656	9,656	100
Other	1,474	1,260	117

Total revenue

11,130

10,916

102

Expenses:
Management of access for fishing activities
Issuing special permits	201	151	133
Issue of commercial permits/fish receiver licences	315	71	444
Issue of aquaculture permits/leases/licences	556	362	154
Management of property rights
Management of quota register	327	517	63
Management of statutory reporting	122	170	72
Activities to support management of fishing activities	53	123	43
General fisheries access and administration services
Administration services	85	260	33
Industry requested observer services	444	532	83
Devolution of registry and related services	1,973	1,852	107
Customary Maori fisheries
Customary access applications/harvesting	618	714	87
Appointing kaitiaki	585	449	130
Delivery of registry services	5,288	5,432	97
Education and information services	27	283	10

Total expenses

10,594

10,916

97

Surplus

536

0

-