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 (Cont...)

Improving management of species outside of the QMS

The Quota Management System (QMS) has undergone significant changes since its implementation in 1986, and remains one of the most successful fisheries management frameworks in the world. When the QMS was first implemented, the overall intent was to manage all commercial fisheries within the QMS. This objective is also consistent with meeting the Crown’s obligations under the Treaty of Waitangi (Fisheries Claims) Settlement Act 1992 which outlines the Crown’s commitment to allocate to Te Ohu Kai Moana (TOKM) 20% of all species brought within the quota management system.

More commercial fisheries were introduced into the QMS in 1998 and 2000, but various constraints have meant the introduction process has been slower than was first expected. However, the implementation of the Fisheries Act 1996 and the development of the new registry computer system removed the last major constraints to further QMS introductions. Both were fully operational on 1 October 2001. The Ministry initially decided to embark on the introduction of commercially valuable species into the QMS following a review which evaluated the implications of developing non-QMS management mechanisms.

The species managed within the QMS make up approximately 86% of the value and volume of commercial activity, but there remains a substantial number of species - more than 100 - managed outside the QMS. In March 2001, the Ministry released a consultation document outlining its intention to undertake further QMS introductions.

After considering the submissions received in response to the March 2001 document, and reviewing fisheries management priorities following consultation on the 2001/04 Business Plan, the Ministry decided in July 2001 to set a target of 50 species introduced into the QMS by 2004. Batches of new species and stocks are to be introduced at the start of the new fishing years. In April 2002, Coromandel scallops became part of the QMS. Anchovy, butterfish, garfish, kina, paddle crab, sprats, blue mackerel, cockles, queen scallops and pilchards will be added on 1 October 2002.

The actual number of species introduced may vary depending on a number of factors. These include considering sustainability concerns for particular species and the level of resources required for QMS introductions while, at the same time, meeting other Ministry obligations.

Fostering international fisheries opportunities

The New Zealand seafood industry functions in a global context. The industry is overwhelmingly dependant on export returns – over 90 percent of production is exported. In recent years the industry’s resource base has expanded. Our fishers are now increasingly looking for catch opportunities outside New Zealand waters. During the year we have continued to work to facilitate these activities. At the same time, we have sought to uphold New Zealand’s international commitments to sound conservation and management of fish stocks and the aquatic ecosystem. We have worked closely and constructively with the Ministry of Foreign Affairs and Trade in achieving these objectives.

Highlights during the year include implementing a new high seas fishing permit regime for New Zealand fishers and developing a regional conservation and management regime for highly migratory stocks in the Western and Central Pacific Ocean – a fishery of increasing interest to our industry.

The year has also seen exploratory fishing for toothfish in the Ross Sea by New Zealand vessels, significant cooperation in the regional management of southern bluefin tuna and the operation of product certification schemes for both these fish stocks. The schemes support international conservation and management measures and protect the interests of New Zealand fishers who comply with them.

The Ministry continues to promote responsible fisheries management both within New Zealand and internationally. During the year, Ministry scientists participated in a conference on Responsible Fisheries in the Marine Ecosystem sponsored by the Food and Agriculture Organisation (FAO).

Developing an updated Treaty strategy

The Ministry’s proposed Treaty strategy looks at how the Ministry delivers on its obligations under the Treaty of Waitangi (Fisheries Claims) Settlement Act 1992 and the principles of the Treaty.

The nature of the relationship between the Ministry and tangata whenua is central to the Ministry’s initial thinking. Strong relationships based on partnership are a necessary first step to achieving our respective goals for sustainable management of fisheries resources. During the year, the Ministry has talked with iwi and hapu with a view to strengthening the relationships necessary to develop and implement a robust and successful strategy.

The Ministry has also worked with Te Ohu Kai Moana to ensure the Treaty strategy framework takes into account the future allocation of commercial fisheries assets. During the year, ten consultation hui were held across Northland, Bay of Plenty, Waikato, Nelson/Marlborough and East Coast and further hui are being organised throughout the rest of the country.

Developing an environmental management strategy

The Environmental Management Strategy (EMS) is a high level framework that will set out the approach the Ministry will take to implementing the environmental obligations in the Fisheries Act and related legislation.

This includes the roles of government and stakeholders in setting environmental standards and managing fisheries to meet these standards. It will also set out the likely changes required in the Ministry’s organisation and processes to implement the strategy and improve the management of the adverse effects of fishing on the aquatic environment.

During the year the Ministry completed a first round of consultation to discuss approaches to developing the EMS and held discussions with stakeholder groups. A draft EMS is nearly complete and external consultation on this will be undertaken in the first quarter of 2002/03.

Improving organisational capability

The need to meet the requirements of the Fisheries Act 1996 prompted a realignment of the Ministry’s Fisheries Management business unit aimed at increasing the focus on outcomes and improving accountability.

This realignment has resulted in a more structured risk management approach, an enhanced central standard-setting process, more dispersed responsibilities for managing fisheries, and improved central co-ordination.

The position of National Manager has been established, with two key teams. The standards team administers the environmental and process standards applied to fisheries management. The operations team provides advice on specified fisheries and the allocation of harvest authorisations. Six teams located in Auckland, Nelson and Dunedin have been set up with accountability for providing this advice. Three of these teams cover inshore fisheries; one team covers pelagic fisheries; one team covers deepwater fisheries and one team covers aquaculture.

During the year, the Ministry delivered a comprehensive training programme for all compliance staff on the full implementation of provisions of the 1996 Fisheries Act. These include clarified enforcement powers, new offences and penalties, infringement notices, and the new catch balancing and reporting regime.

A year-long management development programme was implemented with the aim of improving the people management skills of all Ministry managers. Two induction courses were run during the year to familiarise new staff with the Ministry’s strategies, roles and organisation.

The new position of Chief Adviser, Treaty Relationships was established. Reporting to the Chief Executive, the responsibilities of this position include developing an iwi/hapu relationship management strategy. This embraces organisational standards, training programmes for staff, advice to the Executive Team and the Minister of Fisheries as well as being the focal point for Maori staff and Maori-led initiatives within the Ministry.

Information technology investment for the year supported a number of significant development projects, the upgrade and replacement of key infrastructure, and supported the E-Government strategy.

A new formal data exchange mechanism to allow data to be transferred between the industry registry services and the Ministry has been implemented. The type, format and in some cases meaning of the data now collected by FishServe has changed and this has resulted in the need to change all Ministry computer systems. This work is expected to be completed in the 2002/03 financial year. The Ministry’s main Fisheries Information System has been significantly enhanced to allow Ministry staff to access and report on data from FishServe.

New systems tracking fisheries offences and the system to support infringement notices have also been developed and implemented.

A new website, ST*Rfish (www.starfish.govt.nz) was launched as a free educational resource for secondary school students and teachers.

A major review was conducted in the use of Geographic Information Systems and the management of spatial data within the Ministry. The results have defined the requirements for future infrastructure to support some major new ministry projects such as National Aquatic Biodiversity Information System.

Fisheries Research

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, the Ministry managed about 150 research projects at a total cost of more than $17 million. Major acoustic and trawl surveys were carried out on hoki, orange roughy, oreos, and southern blue whiting. Increased effort was directed at investigating the impacts of fishing on the aquatic environment, research into customary Maori fisheries, and socioeconomic research. We also received preliminary results from a major nationwide survey on recreational fishing that indicated possibly higher participation rates and higher total catch than in past surveys.

The Ministry completed major stock assessments on hoki, the orange roughy fishery along the east coast of the North Island, black oreos on the western end of the Chatham Rise, the main paua fisheries on the southern tip of the South Island and the rock lobster fishery in the Gisborne area.

Based on the 2002 stock assessment results, estimates of stock status and sustainable yields are available for about half the stocks in the QMS. However, estimates are available for all the main fisheries that comprise about two-thirds of New Zealand’s fisheries by weight and value. Of these major fisheries, 80% are at or above sustainable target levels and rebuilding strategies are in place for the remainder. Each year the Ministry engages overseas experts to review and comment on major research programmes. In 2001/02 the orange roughy acoustics and Auckland intertidal shellfish programmes were reviewed. The reviewers were generally supportive of the work, while identifying some areas for improvement.

The Ministry continues to increase the amount of research on marine biodiversity within the New Zealand EEZ. Seamounts, New Zealand algae (including crustose coralline algae), deep-sea biodiversity, and soft-sediment communities have been the subject of focused studies or proposals during the past year.

In addition, a substantive programme investigating the ecology and biodiversity of coastal benthic communities in the Ross Sea, Antarctica has commenced. During the 2001/02 Antarctic research season, NIWA divers clocked up 180 dives at two different sites in McMurdo Sound (New Harbour and Cape Evans). While findings are still preliminary, results suggest that those two locations are very different in both habitat structure and biodiversity. Also apparent is that coastal benthic biodiversity in the Ross Sea is high.