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

Key Achievements

The Ministry’s key achievements during the 2001/02 year focused on the following areas:

Delivering ongoing fisheries management responsibilities

The Ministry’s day-to-day fisheries management activities form the majority of its business. These activities include managing the process of monitoring, and where necessary adjusting, the total allowable commercial catch as part of ensuring sustainable fisheries; working to minimise the impact of fishing on protected species; and fulfiling our compliance-related functions.

Sustainable fisheries

The Ministry managed two sustainability rounds during the year as part of the process of ensuring the sustainability of New Zealand’s fisheries and their supporting ecosystems. The first round related to the 1 October fishing year and the second to the 1 April fishing year.

As a result of these rounds, the Minister made a number of changes, the more significant of which were announced in September 2001. These included an increased total allowable commercial catch limit in the upper North Island orange roughy management area and a decreased catch limit in the mid West Coast area; a reduction in the total hoki catch limit, and catch limit reductions for oreos in the east coast of the South Island and Chatham Island/Chatham Rise areas. The catch limit for gemfish was reduced around most of the North Island, and there was a reduction for the Marlborough Sounds/Nelson commercial paua fishery, combined with a voluntary catch reduction. Catch limits for alfonsino, bluenose, elephant fish and sea perch were increased in certain areas, and some areas were opened to commercial hand-gathering of beach cast seaweed.

Minimising fishing impacts on protected species

Managing the adverse effects of fishing to minimise the impact on protected species has been an important focus during the year. Our efforts have centred on working with stakeholders to reduce fishing-related deaths of Hector’s dolphins, sealions and seabirds, particularly petrels and albatross.

The Ministry continues to work on a regional basis and in consultation with fishers, environmental groups and the Minister of Conservation to put in place measures to reduce Hector’s dolphin mortalities.

In Canterbury, a limit has been set of three Hector’s dolphin deaths per year attributable to fishing for the area between the Waiau and Waitaki rivers. Regulatory measures for recreational fishers have been introduced to support this limit.

In March 2002, a judicial review relating to measures to mitigate Hector’s dolphin mortalities in the North Island put aside the Minister’s decision. In April, the Ministry released, for consultation, a review of information available to support management options and proposed two coastal management options. In July, the Ministry provided the Minister with an analysis of the submissions and final recommendations for management of the impact of fishing on Hector’s dolphins.

Measures to reduce fishing-related deaths of sealions in the southern squid fishery are now in place. A Sealion Operational Plan for the area was approved on 31 January 2002. The plan imposed a maximum allowable fishing related mortality limit (MALFiRM) of 79 sealions for the 2001/02 fishing year. The fishery was closed on 13 April 2002 in response to advice that the MALFiRM had been reached. It is believed 84 sealions were caught in total. The overrun was due to a higher than expected number of sealions being caught in the last week of the fishery being open.

The Seabird National Plan of Action (NPOA) is a long-term strategy for reducing the level of incidental bycatch of albatross and petrels in New Zealand fisheries. The Ministry and the Department of Conservation developed the first draft in conjunction with key commercial and environmental groups. It was consulted on with a wide range of stakeholders.

The Minister of Fisheries and Minister of Conservation considered the draft in January 2002. While both Ministers saw it as a good first step, they considered it did not go far enough or move fast enough to reduce the capture of seabirds. They wanted to take steps to bring about a more certain reduction to capture rates and provide much better information on the extent of the interaction between commercial fishing and seabirds.

As a result, stakeholders have been consulted on proposals to increase the level of Ministry observer coverage. This would enable better information on the interaction between seabirds and commercial fishing operations in key fisheries to be collected. If approved, the increased observer coverage will take effect in the 2002/03 fishing year.

The Ministry is working with the Department of Conservation to produce a revised NPOA for the Ministers’ further consideration. It will then be circulated to stakeholders for final consultation.

Enforcement operations

During the year, the Ministry conducted significant fisheries enforcement operations in both inshore and deepwater commercial fisheries. Enforcement in the poaching and black-market area involved a major undercover operation - Operation Pacman. The operation ended in March 2002 with considerable assistance from the New Zealand Police and the New Zealand Defence Force.

Extensive contact with industry helped ensure a clear understanding of the Ministry’s expectations for the timely filing of monthly harvest and catch returns necessary for the new catch balancing regime. The introduction of infringement notices has had a dramatic effect on the timing of the filing of fishing returns within statutory deadlines, rising from approximately 50% to 90%, an important aspect of ensuring integrity of information within the Fisheries Act 1996 which became fully operational from 1 October 2001. Infringement notices have been used for recreational fisheries offences as well as in the commercial fishery.

The Ministry has continued to participate in the development of improved maritime patrol capability and to provide input into the government’s review of defence capabilities. The Ministry also contributed to establishing the Maritime Intelligence Co-ordination Centre and the Maritime Co-ordination Centre.

The section, “Output Class Performance Information”, contains more detailed information on the Ministry’s achievements in these areas during the year.

Implementing the Fisheries Act 1996

The implementation of the Fisheries Act 1996 and its amendments from 1 October 2001 was the culmination of extensive work across the Ministry over the previous two years. The 1996 Act simplified the previous statutory regime and provided for greater service delivery flexibility. The implementation of the Act and its amendments included four major elements: new registry services, the transfer of a range of duties and powers to industry, a new catch balancing regime and the development of internal systems to support the new penalties regime.

New registry services to support the Act were developed jointly between industry and the Ministry. These were mainly funded through and managed by the Seafood Industry Council (SeaFIC).

The new services commenced operation on time and within budget and are delivering on standards and specifications agreed by the Ministers. Planned additional systems and process changes as a consequence of the 1 October 2001 implementation have continued throughout the year and all final deliverables for this joint project have been achieved.

The implementation process also saw the transfer of a range of duties and powers under the 1996 Act and its amendments to Commercial Fisheries Services Ltd, which uses the trading name of FishServe and is a SeaFIC subsidiary. The services associated with certain other duties and powers were contracted for successfully.

A new catch-balancing regime began on 1 October 2001. This civil compliance regime, developed in conjunction with industry, provides for the payment of deemed values for over-fishing. A criminal system is in place if the civil regime fails to change behaviour.

The Ministry developed the various internal systems required to support the new graduated penalties regime, which includes infringement notices and imprisonment for more serious criminal offences, in time for 1 October 2001.

Delivering biosecurity responsibilities

A risk management framework for marine biosecurity was developed and largely completed during the year. This will enable biosecurity risks to be prioritised and resources deployed where most effective. The Ministry also contributed to work in developing a national biosecurity strategy.

The Ministry actively participated in the work programme of the Maritime Protection Committee of the International Maritime Organisation, which is working to develop and adopt an international protocol for managing ballast water exchange and treatment.

Regulatory proposals were developed to control fouling material cleaned from vessel hulls. This is nearing completion following wide consultation and analysis of feedback from stakeholders. Improvements to ballast water clearance procedures were initiated, with pre-arrival clearance operational for in-coming vessels from March 2002. MAF Quarantine Service provides enforcement of the ballast water import health standard under contract.

Surveys of marine flora and fauna were undertaken in seven main ports of entry for overseas shipping, and further ports will be surveyed in 2002/03. The main ports, where ballast water is discharged to take onboard export cargo, are the most likely places where new organisms will arrive in New Zealand waters and first become established. A contract has been let for regular surveillance in these ports, to begin in 2002/03.

Work is nearing completion on developing risk profiles for the six species identified as posing the greatest threat to New Zealand’s marine environment and marine-based industries. This work will provide a basis for informed risk assessment of the pathways by which these species could arrive in our waters, and prioritising further policy, regulatory, and research work.

The Ministry’s Chief Technical Officer responded to several reports of incursions by exotic organisms. Action plans have been completed for six ’high-risk‘ species of marine pests. A vector management programme to reduce the spread of the seaweed undaria was initiated in January 2002, and the wreck of Seafresh 1 (which sank off the Chatham Islands in March 2000 with undaria on its hull) continued to be monitored with no undaria being found since March 2001.

Biodiversity Strategy

The Ministry is managing a number of projects funded through the New Zealand Biodiversity Strategy. These projects will provide additional information and management and risk evaluation tools in support of the ecosystem-based management approach to fisheries. During the year, the Ministry developed detailed proposals and coordinated research activity in a number of scientific and management related areas. Results from some of the shorter-term research are now being received.

Contributing to an integrated oceans policy

The Ministry has continued its active contribution to the Oceans Policy project. A senior manager was seconded to the Office of the Hon Pete Hodgson to coordinate the completion of phase one and planning for phase two of the project. The Ministry also provided the project with financial and administrative support.

The Ministry will continue to contribute to this project during the next financial year.

Progressing fisheries plans

The fisheries plan initiative is a positive step in improving stakeholder participation in fisheries management and providing opportunities to take on responsibility within government standards. The plans are expected to provide for more flexible and efficient management approaches and support improved fishery management outcomes.

The Ministry of Fisheries intends to release a revised Fisheries Plan Framework in September 2002. This document reflects submissions made by stakeholder groups in response to the consultation draft released last year.

A stakeholder developed fisheries plan for cockles in the Otago Peninsula area was submitted to the Minister during the year for formal approval. A number of commercial and non-commercial stakeholder groups have started work on developing fisheries plans of their own, and the Ministry is providing technical support for pilot plans in four other areas.

Improving management of aquaculture

The Ministry has been active in developing the legislative framework that will allow the aquaculture industry to further increase its contribution to the economy.

In November, the Government announced a programme of reforms to achieve this in a planned and cohesive manner. In March 2002, the Resource Management (Aquaculture Moratorium) Act came into force to address the race for coastal space and provide for an orderly transition to a new regime. The introduction of a Bill relating to the substantive reforms is planned for the second quarter of 2002/03.

The reforms are intended to put in place a coastal management regime that can deliver better planning and enable better value to be gained from the sustainable use of coastal space. For aquaculture, this means more certainty about how new developments can be integrated with competing uses – for example recreational fishing, pleasure boating and tourism.

A core feature of the reforms will be removing the current case-by-case approach to approving new marine farms. This approach makes it difficult to adequately assess and manage the cumulative effects of the rapid expansion of aquaculture. Case-by-case consideration also leads to uncertainty and added costs for the aquaculture industry and ‘submission fatigue’ for fishers and other interested parties in the community.

The new approach will call for aquaculture management areas, established under the Resource Management Act coastal plans. They will be used for the specific purpose of providing water space for aquaculture development and all new development will take place within them.

The process to establish aquaculture management areas will require Regional Councils to consider all environmental effects and fisheries matters. However, two important constraints have been placed on this process. First, it should not place the 1992 settlement of Maori customary and commercial fisheries claims at risk. Second, it should not undermine the management regime government has established for fisheries, which is based on a system of individual fishing rights. For these reasons, the Ministry will retain a key role in the process.

Improving recreational fisheries management

The year saw the completion of the “Soundings” public consultation on recreational fishing with a report back to Cabinet on the outcomes in November 2001. Cabinet decided not to make immediate changes to legislation. Instead it agreed on a set of objectives to guide the further development of policy. Cabinet also noted the constraints the policy must work within. These include the Treaty of Waitangi (Fisheries Claims) Settlement Act 1992, respect for other rights holders and the environmental and fiscal objectives of government.

Cabinet directed the Ministry to develop a single recommended option for reform following a period of further consultation and policy development. The Ministry is working towards taking a single option proposal to Cabinet for public consultation early in 2003.