Annual Report for the year ended 30 June 2002

Presented to the House of Representatives pursuant to Section 39 of the Public Finance Act, 1989

Contents

• Letter to Minister
• Our Vision
• Chief Executive’s Overview
• Strategic Context 2001/04
• Key Achievements
• Fisheries Research
• Ministry Performance For The Year Ended 30 June 2002
• Statement of Resources
• Terms and Definitions Used
• Legislation Administered by the Ministry of Fisheries at 30 June 2002
• Ministry Directory

Statements of Service Performance

for the Year Ended 30 June

Statements of Service Performance for each Output Class, together with the actual and budgeted costs for each Output Class and contributing Outputs are detailed in the following pages. Achievements during the year should be read in conjunction with the performance standards set out in the Departmental Forecast Report signed by the Minister of Fisheries and the Chief Executive of the Ministry of Fisheries on 23 April 2001.

Consolidated Output Classes – Statement of Financial Performance

Output Class Service Performance

Policy Advice Criteria

All policy advice from the Ministry will be delivered in accordance with the following standards:

Purpose Reports clearly state their purpose and address any questions that have been set.

Logic Assumptions behind the advice are explicit, the argument logical and supported by facts.

Accuracy The facts in the papers are accurate and all material facts have been included.

Options An adequate range of options has been presented and assessed for benefits, costs and consequences to fisheries management.

Consultation Evidence exists of adequate consultation with interested parties where applicable and possible objections to the proposals have been identified.

Practicality Problems of implementation, technical feasibility, compliance costs, enforcement implications, timing and consistency with other policies have been considered.

Presentation Material presented meets Cabinet Office requirements.

Review The Minister’s views on the quality of advice will be sought through appropriate means on a six-monthly basis.

Output Class Information

Output Class D1 – Policy Framework

Description: This class of outputs provides policy advice to underpin the legal and conceptual framework for the sustainable utilisation of fisheries.

Objectives: The objectives of this output class are to:

• Provide and improve a conceptual and legal framework for the sustainable utilisation of the fisheries resource.
• Participate in the development and review of international frameworks and implement the decisions in a domestic context.
• Provide services to the Minister of Fisheries.

Scope: The outputs in this output class are:

• Evaluating sustainability outcomes: Monitoring the performance of existing fisheries policy against the purpose and principles of the Fisheries Act.
• Rights based framework: Work associated with the better definition of rights for fisheries rights holders. It covers commercial, aquaculture, Maori and recreational fishing rights.
• Ecosystems management framework: Development of fisheries management frameworks that are consistent with an holistic ecosystem management approach to oceans resource management.
• International frameworks: New Zealand fisheries management interests protected and promoted through the development and review of international frameworks and ratification of international arrangements.
• Input into other related government frameworks: Represent the perspective of the Ministry of Fisheries on related government agencies’ policy framework reviews.
• Ministeral servicing: Providing services to the Ministers responsible for Vote Fisheries and Vote Biosecurity - Fisheries.
• Biodiversity strategy: Implementing the biodiversity package approved in the 2000 Budget.

Achievements during the year

Evaluating Sustainability Outcomes

The Ministry has continued its work on developing a reporting system, and subsequently providing a report to the Minister on the state of fisheries within the aquatic environment using environmental performance indicators for fisheries and marine biodiversity. A series of draft performance indicators have been developed and released for internal review. This work was not completed by the target date of 30 June and will continue into the 2002/03 financial year to confirm outcomes and to develop suitable monitoring frameworks consistent with the revised strategic plan due for release in September 2002.

Rights-Based Framework

Non-QMS fisheries The non-QMS working group concluded its role in assisting the Ministry to work through issues relating to non-QMS management in 2001. The project has subsequently contributed to the prioritisation and cost benefit work supporting the introduction of new species to the QMS and identified areas for further policy development. Although it did not meet the target of 30 December 2001, a draft paper reporting on the progress of the non-QMS review has been prepared. In June a discussion paper on management options for highly migratory species was developed for internal review.

A paper on management options for highly migratory species will be released for external consultation.

Maori rights framework The Ministry’s internal work on the objectives, vision and obligations of the Treaty Strategy has been finalised. Review has been undertaken internally, and by independent experts. Hui with tangata whenua to discuss the strategy started in April (10 have been completed to 30 June 2002). Hui will be continued into 2002/03. Work has also started on identification of implementation steps.

The Ministry reported to Cabinet on the level of allocation progress made by Te Ohu Kai Moana (TOKM) in April. TOKM has completed formal consultation on its initial proposal and has developed a preferred model. The Ministry commissioned an audit of TOKM’s lease rounds and an independent analysis of submissions and the consultation process undertaken by TOKM. Advice to Government on assessment, approval and implementation of the proposal was provided in June. A joint application to lift existing legal restraints has been filed and will be heard on 30 July.

Risk management Progress had been made in defining the risk categories and assumptions in fisheries management models, as well as processes for setting fisheries management objectives. A decision paper is being drafted to realign the risk project to take into account work undertaken on mapping fisheries management processes. Progress has been limited because of diversion of resources to the aquaculture project and the target of 30 June to finalise the framework was not met. The framework will now be completed in the 2002/03 financial year.

Fisheries plans A further draft of the framework document was released prior to the SeaFIC Conference in May. Subsequently a stakeholder workshop was convened to obtain further input. A further revised framework is being peer reviewed internally – this will be completed 30 September, slightly after the target date of 30 June 2002.

Recreational fisheries Following a further consultation process convened by the Minister, Government deferred steps to develop legislation. Instead, on 24 November 2001, Cabinet approved a set of objectives and constraints to guide the development of a public consultation option prior to February 2002. Thus, while the target date of 30 December 2001 for providing policy advice to Government was met, development of the Bill did not proceed. A series of occasional papers dealing with the issues raised by stakeholders in the previous consultation process and the constraints determined by Cabinet have been drafted and will be distributed for external peer review.

Aquaculture The Ministry has worked intensively during the year on the process to improve aquaculture management in New Zealand.

During the quarter ended 31 December 2001, the Ministry, working in conjunction with the Ministry for the Environment (MfE), supported the progress of six aquaculture reform papers through the Cabinet Committee process and Cabinet. Government decisions on the reforms were subsequently announced on 28 November. These decisions included the imposition of a moratorium on new resource consents for marine farms. The Ministry has since been working with stakeholders to explain the nature and impact of the moratorium and main reform proposals. By 30 June 2002, the Ministry working in conjunction with MfE and DoC, provided advice and support for the development of policy and drafting instructions for the Resource Management Act (Aquaculture) Amendment Bill.

This involved obtaining approval from Cabinet for the Ministers of Fisheries and Minister for the Environment to jointly resolve all residual policy issues that arise during the development of the bill. Ministers made decisions on a substantial number of policy issues based on departmental advice. Officials noted that work was continuing on a number of additional policy matters including: Treaty of Waitangi issues; Resource Management Act coastal occupation charges; application of the fisheries undue adverse effects test; and controls on the transfer and release of freshwater fish. Work has been undertaken between departments and with local government to identify the steps to be taken to ensure the new legislation is implemented in a timely manner.

Work during the first quarter of the 2002/03 financial year will focus on resolution of outstanding policy issues and supporting the introduction of the Resource Management Act (Aquaculture) Amendment Bill in September 2002.

Ecosystem-Based Management Framework

The Ministry has continued its work on developing a draft environmental strategy. A preliminary draft was circulated to key experts and stakeholders for review in late June. Informal discussions with key stakeholders continued over the quarter ended 30 June.

International Frameworks

Negotiations on the renewal of the US/Pacific states tuna treaty were successfully concluded in March 2002. Work required to complete ratification of the renewed Treaty will take place during the 2002/03 year.

In August 2001, the first set of negotiations were held in Sydney to establish a Trans-Tasman Fisheries Arrangement to manage demersal stocks in the high seas.

The second inter-governmental consultation on the South West Indian Ocean Fisheries Commission was held in Madagascar. The Ministry led the New Zealand delegation and promoted our objectives of sustainable fisheries management and providing access for New Zealand fishers.

Ministry officials attended the OECD Fisheries Committee and progressed the key work area addressing trade measures and subsidies. A new project was developed to analyse the use of measures within International Fisheries Arrangements to combat illegal, unregulated and unreported fishing.

Input into Other Related Government Frameworks

During the year, the Ministry continued its work with DoC and other agencies on the review of the Marine Reserves Act. Cabinet took policy decisions in November. Comprehensive comments on the paper were provided, together with briefings to the Minister. The Ministry has also provided a briefing to explain how customary fishing rights are recognised in the new Marine Reserves Bill. The Department of Conservation provided input into the briefing. The Marine Reserves Bill was introduced into the House in May 2002. Comment on the Oceans Policy is provided under the Biodiversity Strategy.

Ministerial Servicing

Of the 586 replies to correspondence prepared for the Minister of Fisheries, only 518 (88%) were completed within the timeframe (the requirement is 95% within 15 days). Twenty three of the replies required redrafting. This is an achievement of 96% - slightly below the standard of 97%. The Ministry received 116 Parliamentary Questions during the year, of which 106 (91%) were delivered on time. The standard requirement is for all responses to be delivered on time. No formal speeches were prepared, but requests for speech notes were completed within the required deadline.

All urgent letters were responded to within the required 5 day timeframe.

Select Committees were provided with advice as required and within the timeframes specified. The Ministry acknowledges that, although this was a better result than the previous year, there is still room for further improvement in the delivery of these services. Biodiversity Strategy

The Ministry has continued its participation in the inter-departmental working group supporting the development of an oceans policy. During the year the Ministry:

• Contributed to a workshop debriefing stage one and planning for stage 2.
• Provided input to a Cabinet paper identifying a vision for oceans together with key areas for policy development in stage 2.
• Provided input into discussion on goals, principles, values and options for the scope of stage 2, along with associated governance arrangements. These discussions fed into two report back papers to Joint Ministers.

In progress towards developing the standards and specifications required for the National Aquatic Biodiversity Information System (NABIS), the Ministry has:

• Completed the rescoping of the project and the development of a new vision.
• Reviewed existing documentation to identify databases containing potential information for layers to be set up in NABIS.
• Established an Environmental Information Officials Group to ensure co-ordination across information system projects (e.g. Terrestrial & Freshwater Biodiversity Information Systems, Environmental Performance Indicator Programme, the Coastal Resource Atlas and the National Aquatic Baseline Information System).
• Funded a biological testing programme provided to MfE as part of the MfE Marine Classification System.
• Worked on the development of a business plan for Geospatial Data Management and the Ministry’s use of GIS.
• Developed a communications strategy.
• Distributed publicity material to a wide range of user groups.

The Ministry has also been actively engaged in progressing the Government’s Biodiversity Strategy through:

• participation in regular Biodiversity Chief Executives’ meetings and biodiversity officials’ meetings;
• development of a draft marine protected areas strategy, which was subsequently approved by the Ministers of Fisheries and Conservation for release to stakeholders;
• development jointly with DOC, MfE and MAF of a biodiversity website;
• completion of draft medium term research plans to provide baseline information on the biodiversity of marine communities and biodiversity of the Ross sea; and
• meeting with Ngai Tahu to scope a project and to review marine biodiversity goals at the regional level and agreeing that the project will proceed as a case study of the Waitaki catchment.