Annual Report for the Year Ended 30 June 2001

• Our Vision
• Chief Executive's Overview
• Key Achievements
• Fisheries Management
• Implementation of the Fisheries Act 1996
• Policy Initiatives
• Building Organisation Capability
• State of Fisheries
• 2000/2001 Financial Performance
• References

Ministry of Fisheries
Annual Report for the year ended 30 June 2001

Key Achievements

The Ministry’s key achievements during the 2000/01 year were focused on the following areas:

• Fisheries Management
• Implementation of the Fisheries Act 1996
• Policy Initiatives
• Building Organisational Capability.

Fisheries Management

Sustainability Round Ensuring the sustainability of New Zealand’s fisheries and their supporting ecosystems is the key to successful fisheries management. We work towards this goal by basing fisheries management decisions on robust scientific opinion and evidence formulated within an open, consultative process.

As part of this process the Ministry undertook two consultative sustainability rounds during the year. These reviewed the management of a number of fisheries and considered amendments to various fisheries regulations. There was also a separate independent review into the management of several orange roughy fisheries, outlined later in this report. A decision by the Minister to close a number of underwater seamounts (mountains under the sea) to all trawling was announced in September. The 19 seamounts selected for closure are distributed around New Zealand’s Exclusive Economic Zone, including the Chatham Rise, sub-Antarctic waters, the east and west coasts of the northern part of the North Island, and are representative of the types of seamounts found in New Zealand waters. More than five years hard work by iwi and key stakeholders working with staff from the Ministry, resulted in the South Island freshwater eel fishery being introduced into the quota management system (QMS) during the year. The commitment to bring the eel fishery under quota by 1 October 2000 was part of the Crown’s Deed of Settlement with Nga-i Tahu.

A new Ministry objective decided on during the year is to introduce further species into the QMS to improve the management of those species. Our target is to introduce 50 more species by 2004 and in the medium to long-term to have all species fished commercially managed by way of the QMS.

Compliance The Ministry’s compliance achievements are reflected in the results of enforcement and prosecution activities in the Output Class statements in this report. The Ministry actively participated in the maritime patrol review, which contributed to Government’s review of defence capabilities. This is the first time such a wide range of agencies with responsibilities in the marine environment has been involved in the specification of maritime patrol requirements. Decisions on the focus and direction of the New Zealand Defence Force are already showing an increased support for fisheries surveillance and enforcement.

The Ministry has focused significant effort on preparing for the full implementation of provisions of the 1996 Fisheries Act from 1 October 2001. A number of systems have been developed to support the introduction of an infringement notice system and to assist the monitoring of commercial catch reporting and compliance risk assessment. We have developed comprehensive training programmes to ensure that compliance staff understand the new systems, processes and enforcement powers.

In order to increase public awareness of recreational and customary fishing responsibilities, we have produced new educational material and have started placing highquality signage in areas of particular fishing interest. This awareness programme precedes the use of infringement notices, which will be issued for minor offences.

High Seas Regime New Zealand’s fishing industry development is increasingly focused on the high seas beyond the 200 nautical mile economic zone. During the year the Ministry developed and implemented an authorisation-based framework for managing fishing activities on the high seas. This applies to both New Zealand flagged vessels and New Zealand nationals on vessels flagged by other countries.

The Ministry and the Ministry for Foreign Affairs and Trade collaborated in working through the implications of the regime in an industry/Government group.

Biodiversity Knowledge of the aquatic environment is very limited. This is particularly so for the impacts of fishing and aquaculture on that environment. Our limited knowledge was clearly signalled in the reports from the Controller and Auditor General and the Office of the Parliamentary Commissioner for the Environment produced in late 1999 and early 2000. This was also clearly acknowledged in the publication The New Zealand Biodiversity Strategy which defines biodiversity as “the variety of all biological life – plants, animals, fungi, micro-organisms – the genes they contain and the ecosystems on land or in water where they live”. Accordingly, the Ministry is developing an environmental management strategy to underpin an ecosystem-based management approach to fisheries. This is consistent with our obligations under the Fisheries Act 1996 and the Government’s desired outcomes under the biodiversity strategy.

To make this ecosystem-based management approach work, we have to increase research on the aquatic environment, particularly in understanding the ecosystems in which fishing takes place and the impacts of fishing on the environment. To this end, the Government has substantially increased the funding for marine biodiversity research in Vote: Fisheries beginning in 2000/01.

Marine Biosecurity Biosecurity may be defined as the management of exotic biological risks that could harm New Zealand’s economic, environmental and social interests. The Ministry of Fisheries, as the lead agency for marine biosecurity, aims to minimise the risks to New Zealand’s marine environment from biosecurity threats.

Additional funding for biosecurity has allowed the Ministry to build marine biosecurity systems that cover a number of core processes, including:

• border/vector control
• surveillance of the marine environment
• an incursion response capability.

During the past year the Ministry has concentrated on building capability and developing a risk management framework, incorporating customised risk assessment.

Implementation of the Fisheries Act 1996

The Fisheries Act 1996 is the principal statute within which we must operate. The Act was subject to a formal and comprehensive review in 1999 when it was amended significantly. At present, only parts of the 1996 Act are fully commenced including provisions related to:

• the purposes and principles
• sustainability measures
• cost recovery
• customary fishing provisions.

The Ministry has been required to manage its current statutory obligations under a mix of the 1996 Act and the 1983 Act.

While the two Acts are not totally inconsistent with each other, operating under both Acts at the same time has caused some operational difficulties. Over the past year we have been working to fully commence the 1996 Act on 1 October 2001 and repeal the majority of the 1983 Act (excluding provisions relating to aquaculture management) on the same date. This is a significant endeavour for the Ministry as it involves:

• revising regulations
• revising processes (particularly registry and compliance services)
• working co-operatively with industry who are developing new registry systems
• significant new internal computer systems to support the new Act’s provisions, and
• developing management arrangements with industry to deliver services.

To support our goals, we have established a number of internal project teams to develop appropriate regulations, processes and systems. Early in 2000, the Ministry and the

NZ Seafood Industry Council (SeaFIC) agreed to establish a joint programme to develop new computer systems and processes supporting the new registry provisions. This systems development is being funded largely by the industry itself and is consistent with the Ministry’s and Government’s vision of involving stakeholders in the management and delivery of services in which they have a primary interest. The joint programme has very challenging deadlines and can succeed only through the co-operation of all participants.

The delivery of such services must be within the statutory environment and, to ensure that Crown risks are minimised, within standards and specifications approved by the Minister or Chief Executive. The Minister has agreed to transfer a range of registry-based services to SeaFIC from 1 October 2001. This joint programme is an example of the Government and industry working together co-operatively towards a common goal. At this stage we are confident that the 1 October 2001 target date for commencement of the balance of the Fisheries Act 1996 will be achieved. As noted earlier, this goal is challenging and its likely achievement is due to significant commitment from Ministry, SeaFIC and FishServe staff.

Policy Initiatives

Fisheries Plans Fisheries plans are a tool to specify the medium to long-term management objectives for a fishery and to bring stakeholders together to explore options for mutually beneficial outcomes. A draft framework for developing fisheries plans was developed during the year and distributed for consultation.

Through the draft framework, and where capacity exists, we seek to encourage a mix of arrangements that best suits those involved in the fisheries. Our target is to complete the framework by 30 September 2001.

Recreational Fishing In July 2000 a joint working party of the NZ Recreational Fishing Council and the Ministry of Fisheries launched a public consultation document aimed at better defining recreational fishers’ rights in law. The public was asked either to comment on three options for future management, or to propose other solutions for the future management of recreational fishing. The consultation process showed wide-spread support for change to the administration of marine recreational fishing, but diverse and conflicting views on what that change should be.

In a report released in March, the Joint Working Group ruled out licensing and recommended further policy development to:

• better define the public share of and access to fisheries
• improve the management of recreational fishing
• improve education and information on fisheries management
• improve measurement of the recreational catch
• seek more input and participation of iwi in future policy development.

This work is continuing into the 2001/02 financial year.

Aquaculture In August 2000 the Ministry released a public discussion paper on the future management of aquaculture in New Zealand. We received a number of submissions on the paper, some of which expressed a range of alternative ideas for improving the management of aquaculture. Working closely with the Ministry for the Environment and other departments, we then met with key groups to help work through the issues and policy options identified in submissions. These groups included tangata whenua, the Treaty of Waitangi Fisheries Commission, the New Zealand Aquaculture Council, the New Zealand Seafood Industry Council, and regional councils.

In June 2001 the Ministry reported back to Ministers on the results of the analysis of submissions, with further policy development, and a recommendation for a preferred course of action. Government is expected to make decisions later in 2001 on the measures to be taken to improve the future management of aquaculture.

Oceans Policy There are currently 18 pieces of legislation related to the use of the oceans around New Zealand.

The legal framework is complicated, piecemeal and contradictory, with most laws developed in isolation. Government has embarked on a process of developing a comprehensive Oceans Policy, to better integrate the sustainable use of our oceans. The Ministry of Fisheries is taking a leading role in providing resources and expertise for this work.

Building Organisation Capability

Organisational Changes The project to prepare the Ministry for the future was completed in the early part of the year and decisions were taken to improve the Ministry’s organisation design. A number of changes have now been implemented and there will continue to be further improvements over the next two years to prepare the Ministry for its future role.

The design of the Ministry is centred around an increased focus on fisheries management outcomes, and our role in facilitating the development of fisheries plans. A number of other changes have also been implemented or signalled. These include:

• setting people-related goals to move the organisation to a more constructive internal culture; creating opportunities for staff to excel; retaining and developing the necessary skills; and ensuring a healthy workplace environment • improved decision making with clear accountabilities
• better business planning and process integration through management fora and process reviews
• better identification and use of information
• a focus on external relationships and communications
• moving resources over time to higher risk areas from those with lower risks, and closer to tangata whenua and stakeholders
• evaluation of our performance and increased focus on monitoring our strategies, policies and services over the medium term.

The design decisions have a short, medium and longer-term focus. Much progress has been made in some areas, including consultation on fisheries plans framework and updating our Treaty strategy, establishing new people goals with programmes developed to an advanced stage for delivery of manager training and development in 3rd quarter 2001, and an enhanced performance management system for all staff in the 2001/2002 year.

A new decision-making forum is operational and new internal communication tools have been implemented. Structural changes to streamline the Executive Team and establish 10 internal business units were successfully implemented in December 2000.

These improvements continue to proceed together with other initiatives, and will evolve during the rest of 2001 and into 2002. Ministry capability build is a targeted outcome from these decisions and good progress is being made. An update of the Ministry’s Treaty Strategy, taking into account existing Treaty-related responsibilities and initiatives, has started. Consultation with tangata whenua and others is planned to take place in the coming year. During the year, work was undertaken in establishing a Maori network, Te Roopu Awatea, as a means of valuing the special contribution our Maori staff make to the Ministry.

The terms of reference for Te Roopu Awatea, which includes the Chief Executive as the Toa Rangatira, were finalised after the end of the financial year.

Investment in Resources The Ministry continued to invest during the year in people, technology, facilities and vessels. Eleven staff recruited as Fishery Officers by the Ministry completed a three-month training course. Most of the new staff were recruited for positions in Gisborne, Auckland and the far north. Four Customary Liaison Officers also attended the first half of the course. Six of the course members were recruited in partnership with local iwi.

This course was in addition to induction courses held for staff joining the Ministry during the year. Information technology investment for the 2000/2001 year supported the 1996 Act implementation, and the compliance and science businesses as well as infrastructure. The investment included the following major projects:

• the Information Repository and Analysis project to enhance and establish the infrastructure to support new industry-developed registry systems and services
• a comprehensive re-write of the Secure Intelligence Database (now renamed Fisheries Intelligence Network)
• enhancements to the Catch Effort data quality with new standards and specifications.

During the year we introduced an intranet, RockPool, to enhance internal communications within the Ministry, and developed a new educational website, ST*Rfish. The Ministry was recognised with two awards at the Government Information Systems 2001 Conference – one as the Department making the biggest contribution to E-Government and the other for the development of the Vessel Monitoring System.

The last financial year saw the Ministry move into new leased premises in Whangarei, Mount Maunganui, and Auckland. A contract for nine new inshore patrol boats for the Ministry’s Compliance operation was let to the Southland boatbuilding firm, Stabi-Craft. The boats will be distributed to offices around the country.

State of Fisheries

Some of the world’s best fisheries science is available to the Ministry, which uses highly transparent, accessible and rigorous research planning and scientific review processes.

Research Programmes Medium-term research programmes are in place for all major fisheries. Information is collected according to those plans through contracted research, as well as catch and effort data supplied by commercial fishers. During the year we updated stock assessments for oreo and ling and completed major stock assessments on:

• hoki
• the major orange roughy fisheries in the Chatham Islands
• key paua fisheries
• the main rock lobster fisheries.

Regular stock assessment information is available for fisheries representing between two-thirds and three-quarters of New Zealand’s catch by weight and value. Over 150 finfish and shellfish species are taken commercially in New Zealand, and 44 are managed within the QMS. By weight and value, species managed under the QMS, such as rock lobster, hoki, orange roughy and snapper, make up about two-thirds of commercial fisheries, and 80 per cent of these fish stocks are above, at, or near, the size that will support the maximum sustainable yield. Rebuilding strategies are in place for the remaining 20 per cent. There are also information gaps for many inshore finfish and shellfish species outside the QMS, but their small size means it will be difficult to obtain sufficient information to determine their sustainability status.

Quality Assurance Each year we engage overseas experts to review and comment on major research programmes. In 2000/01 the rock lobster, jack mackerel and blue cod programmes were reviewed. Generally reviewers were supportive of the work, while identifying some areas for improvement.

A report released in November 2000 stated New Zealand’s management of orange roughy and other deepwater fisheries was among the best in the world. The report, from Dr Robert Kearney, Professor of Environmental Sciences at the University of Canberra, followed his review of the Ministry’s analysis of the management history of three depleted orange roughy fisheries (made at our request). Dr Kearney said the depletion was unfortunate but understandable, due to the extreme difficulty and great uncertainty in assessing orange roughy stocks. His report stated that the performance of New Zealand fisheries scientists was recognised worldwide, and that our orange roughy research, which was the world’s first major deepwater fisheries research programme, was “at the cutting edge.”