Strategic Direction and Framework

Strategic Direction

Framework

Since its establishment in 1995, the Ministry has given considerable thought to the future direction of fisheries management in New Zealand and the core responsibilities of the Crown, the various rights-holders in the fishery and other stakeholders.

The following key principles form the basis for the Ministry's strategic framework for fisheries management:

• Sustainable utilisation of fisheries resources in the aquatic ecosystem.
• Treaty issues and our obligations to Maori.
• Efficient allocation of resources.
• Participation.

Sustainable utilisation of fisheries resources in the aquatic ecosystem

Fisheries resources should be available for harvesting, to facilitate the long-term social, economic and cultural well being of all New Zealanders. Harvesting should occur within constraints that ensure the use of the resource is sustainable.

In determining sustainability, account should be taken of the direct and indirect effects of fishing on the stock and its associated ecosystem. This includes consideration of the effects of fishing on associated or dependent species, biological diversity, and habitat. The goal is to ensure fishing does not cause, or exacerbate, unacceptable long term adverse effects on the integrity and productivity of the aquatic ecosystem. In particular, biological diversity should be maintained and the long term viability of associated or dependent species ensured. Adverse effects of fishing on protected species, such as marine mammals and albatross, should be minimised.

All management decisions should be based on the best available information and reflect a precautionary approach where information about the effects of fishing on the environment are uncertain. We should ensure that the activities of New Zealand fishers do not adversely affect fisheries resources and the aquatic ecosystem beyond our Exclusive Economic Zone.

Treaty issues and our obligations to Maori

Fisheries should be managed in a manner which delivers on the Crown's obligations to Maori under the Treaty of Waitangi and statutory obligations to Maori in terms of the Treaty of Waitangi (Fisheries Claims) Settlement Act 1992 and the Fisheries Act 1996.

This includes obligations to tangata whenua to recognise non-commercial fishing rights and management practices, and obligations to allocate 20 per cent of new quota to Maori when further species are brought into the quota management system.

Efficient allocation of resources

Efficient resource allocation - ie ensuring the best value from the use of our fisheries - is encouraged through the following strategies:

• Rights-based management

Secure rights provide incentives for users to take a long term interest in the viability of the resources and invest in fisheries enhancement. To improve the allocation of resources within the fisheries sector, rights and responsibilities of all users should be properly specified and integrated with other users.

• Devolution of fisheries management

Rights-holders should be given increased responsibility collectively to manage fisheries within appropriate sustainability parameters. Strategies to enhance the participation of rights holders in fisheries management requires the development of effective associations of users, including non-commercial users.

• Internalisation of costs

Fishers should face the full costs of their fishing activities, with procedures and policies aimed at internalising management and environmental costs. This contributes to efficiency in resource allocation by creating incentives for stakeholders to modify their behaviour to lower their overall costs.

• Cost effective delivery of fisheries management services

Fisheries management services conducted by or on behalf of the Ministry should be cost-effective. This reduces the burden of management costs to both the fishing industry and taxpayers. Structures and processes should ensure services are produced to the required standards and specifications.

Participation

Stakeholders should be given the opportunity to participate in Government decision making processes for fisheries management. Maximum stakeholder participation will result in greater awareness of fisheries management issues and increase stakeholder ownership of management decisions.

To encourage stakeholder awareness and participation, the Ministry will continue to develop processes to disseminate information on fisheries and the aquatic environment. It is also important for stakeholders to have appropriate access to information concerning fisheries and the aquatic environment, which is held by the Ministry or its agents.

Ministry role

The Ministry's role is to provide for the utilisation of fisheries resources while ensuring sustainability. As the principal government agency in fisheries management, the Ministry collaborates with other government agencies in advising on and implementing government policy in the following core areas of responsibility:

Ensuring ecological sustainability by:

• specifying environmental goals and standards related to the use of fisheries and the impact of fishing on the aquatic ecosystem
• approving fisheries plans
• setting sustainability measures, such as total allowable catches, and area closures
• monitoring the health of fisheries and the aquatic ecosystem.

Meeting Treaty of Waitangi and international obligations by:

• involving Maori in fisheries management decision making
• delivering 20 per cent of new quota to Maori
• providing for and protecting customary fishing rights
• recognising use and management practices of Maori
• promoting and protecting New Zealand's fishing interests during the development of international arrangements
• ensuring management frameworks are consistent with international arrangements ratified by New Zealand.

Enabling efficient resource use by:

• defining and allocating harvesting rights
• providing the frameworks to allow owners of harvesting rights to manage those rights.

Ensuring the integrity of management systems by:

• setting standards and specifications for services such as research and administration
• monitoring and auditing the delivery of services
• managing fisheries and aquatic ecosystem information
• delivering criminal law enforcement and prosecution services.

As is mentioned in the accompanying Strategic Plan, while there will always be a role for the Government in the fisheries sector, the Ministry's role will continue to change in response to external changes, particularly as rights-holders increasingly exercise the management responsibilities arising from their rights. Such changes will allow the Ministry to concentrate on the above core responsibilities.

In line with its core responsibilities, the Ministry has established three fisheries goals (key result areas) to 2003 as follows:

• To develop a framework and processes that ensure that when providing for the utilisation of fisheries resources while ensuring sustainability, the Crown delivers on its obligations to:

- maintain the biological diversity of the aquatic environment
- protect habitats of particular significance for fisheries management
- maintain associated or dependent species at levels that ensure their long-term viability.

• To develop a framework and manage processes that ensure the Crown delivers on its Article 2 fisheries obligations to Maori.
• To develop a framework and manage processes that lead to the efficient use of resources including reducing business compliance costs within the New Zealand fisheries sector.

Our biosecurity goal is:

• To contribute to the development of a framework and manage processes for minimising risks to the marine environment from unwanted organisms.

Implementation

Recent amendments to the Fisheries Act 1996 mean that the legal framework for fisheries management is now simpler and more flexible than it has been in the past. At this stage in the Ministry's life, there is a need for us to focus upon the implementation of the changes of recent years, as opposed to further changes. The two exceptions, however, are improvements to aquaculture and recreational fishing rights.

Consistent with this approach the Ministry has identified five priority implementation projects for the current financial year:

• Implementing the Fisheries Act 1996, particularly Parts II and III relating to the "new" purposes and principles and sustainability measures.
• Progressing changes to the aquaculture management regime.
• Redesigning the compliance systems and processes to support the more decentralised fisheries management arrangements under the Fisheries Act 1996.
• Progressively changing the Ministry's processes and ways of working (that is, organisational design) to ensure that we can discharge our responsibilities to the Minister.
• Progressing work on the devolution of registry services as provided for in the recent amendments to the Fisheries Act 1996.

Other issues related to the above priorities are:

• Facilitating the development of fisheries plans.
• Facilitating the direct purchase of research.
• Improving recreational fisheries management.

Implementing the Fisheries Act 1996, particularly Parts II and III relating to the "new" purposes and principles and sustainability measures.

Part II of the Fisheries Act 1996 sets out the Act's underlying purpose and principles. In particular, it sets out the obligations to ensure sustainability, maintain biological diversity and protect habitats of particular significance.

The obligations, and their definitions, are new additions to fisheries legislation that indicate a wider, more integrated approach to fisheries management than in the past, and there are few precedents in other parts of the world.

MFish is making a concentrated effort in this initiative, which, because of competing resources, has taken longer than planned. We will need to allocate more resources if progress is to be sustained. There are likely to be resource implications in carrying out this work, since, as well as developing policy, a more comprehensive research and management strategy may be required to manage environmental risks. This may require existing resources to be diverted to this work, or possibly the addition of extra resources. The redirection of existing resources or the use of additional resources would have fiscal impacts for the Crown or cost recovery implications for the fishing industry.

Progressing changes to the aquaculture management regime.

Legislation regulating aquaculture is outdated, with two potentially conflicting regimes in place. This has resulted in uncertainty over the extent of the aquaculture right, poor integration between aquaculture and other fishing rights in a common area, and high costs to existing and potential marine farmers. This has led, in turn, to litigation in the Environment Court. These issues need to be resolved in order for the aquaculture sector to realise its optimum potential.

MFish is in the process of developing options for better defining the rights of marine farmers and clarifying the regulatory regime applying to them. Preliminary work has highlighted some significant new issues in terms of the interface between the Fisheries Act and the Resource Management Act, particularly the need to provide for a framework that enables optimal use of coastal space.

MFish is currently re-scoping this reform to encompass the Resource Management Act, and an interdepartmental group, comprising officials from MFish, the Ministry for the Environment and the Department of Conservation, is undertaking the policy review. It will also be necessary to build support for the reforms from regional councils and the fisheries and aquaculture sectors.

It is proposed that, after consideration by the Minister, proposals for aquaculture reform will be released for public consultation around the middle of 2000.

Redesigning the compliance systems and processes to support the more decentralised fisheries management arrangements under the Fisheries Act 1996.

The MFish compliance framework for commercial fisheries is designed to support the centralised management regime of the Fisheries Act 1983. In addition to supporting the commercial fisheries management regime of the QMS, a new compliance regime, under the amended Fisheries Act 1996, needs to also support more decentralised and flexible arrangements for fisheries management and administration, focusing on encouraging voluntary compliance.

Commercial fishers and quota owners have few incentives to comply with rules put in place by government, other than the risk of penalties, and MFish compliance services have centred on enforcement and prosecution.

In a regime in which stakeholders play a greater part in developing the rules for their fishery, stakeholder organisations will be expected to take more responsibility for managing the behaviour of their members. While maintaining an effective enforcement and prosecution deterrent, MFish compliance focus will include the auditing and monitoring of the effectiveness of distributed stakeholder controls and responsibilities, as well as criminal enforcement.

Progressively changing the Ministry's processes and ways of working (that is, organisational design) to be consistent with the new flexibility and simplicity in the amendments to the Fisheries Act 1996.

Fisheries management changes in recent years will require MFish to focus on delivering the Crown's core responsibilities and respond to stakeholder expectations for involvement and participation in fisheries management decisions and service delivery.

This has not been the traditional role of MFish. Centralisation of fisheries management within government has led to an organisational structure centred on specialised planning skills and a mindset focussed on carrying out well-defined statutory processes, a structure and mindset which are not best suited to MFish's future roles.

In addressing this limitation, we have already put some changes in place. Last year, the Senior Management Team, which centralised Ministry decision-making along functional lines, was replaced by a smaller Executive Team to concentrate on strategic leadership and strategic management of the Ministry.

We are currently considering organisational design options for re-aligning the processes and internal structures for MFish, as well as the necessary people skills, to ensure that we are able, to carry out functions which are critical to the Crown's role in fisheries management. The design phase, which will include the involvement of all staff, is planned to be completed by March 2000.

Progressing work on the devolution of registry services as provided for in the recent amendments to the Fisheries Act 1996.

As required under the Fisheries Act 1983, MFish provided registry services until it contracted out the services out earlier this year.

The Fisheries Act 1996, and its subsequent amendments, makes substantial changes to the administration of the Quota Management System (QMS). These changes cannot be implemented until new registry IT systems have been developed.

Development of new registry systems, especially the computer systems, must commence soon. Because the old QMS systems are fast approaching their limit, it is becoming increasingly difficult and expensive to introduce new species into the QMS and impossible in some cases.

The 1999 amendments to the 1996 Act enable the Minister and the Minister for the Environment to devolve responsibility for providing registry services to the fishing industry. However, this cannot occur until appropriate standards and specifications have been developed and an effective monitoring and auditing regime established to ensure that the Crown can continue to discharge its statutory responsibilities.

Devolving responsibility for the building of new systems and their ongoing provision of registry services to the fishing industry is consistent with:

• rights-holders being given increased responsibility to collectively manage their rights within appropriate parameters set by the Crown as well as the associated risks;
• the Ministry focussing upon its core responsibilities as indicated earlier.

Progress on devolution is now to some extent dependent upon the industry making progress on development of the new systems referred to above.

One critical feature to note is that the devolution project relates only to operating the registry services functions previously administered by MFish. The information contained in the data bases (eg catch and effort) is owned by the Ministry and its integrity will remain firmly a Ministry responsibility.

Facilitating the development of Fisheries Plans

The 1999 amendments to the Fisheries Act 1996 provide for the Minister to approve fisheries plans. Fisheries plans allow for a strategic approach to managing specific fisheries through determination of management objectives and corresponding implementation strategies to ensure sustainability.

The plans are to be used to identify the government objectives with respect to sustainability. The legislation also provides for fisheries plans to contain performance criteria to measure the achievement of the objectives and strategies and contingency strategies to deal with foreseeable variations in circumstances.

Fisheries plans provide an opportunity to be more responsive to stakeholder initiatives while retaining confidence that fisheries will be managed to achieve ecological sustainability. Stakeholders are able to assume accountability to customise fisheries management within the boundaries of the plan.

A policy framework for fisheries plans will be completed during 2000 and submitted to the Minister for approval. Development and approval of specific fisheries plans, and any associated measures to facilitate stakeholder initiatives, will be ongoing. The Ministry intends to work with stakeholders in only one or two fisheries during 2000 to develop working examples of a fisheries plan.

Facilitating the direct purchase of non-core services

Recent changes to the new cost recovery regime have provided opportunities for stakeholders to directly purchase non-core services. When determining the cost recovery rules related to the imposition of levies, the Minister can now take into account the extent to which stakeholders purchase non-core services directly.

Direct purchase of research services is an area that the fishing industry has indicated an interest in pursuing.

MFish will work with stakeholder groups over the next year to consider the policies and procedures needed for direct purchase of research. This will include the development of standards and specifications, and establishment of a monitoring and auditing regime. As part of the consultation process, MFish plans to trial direct purchase with a few selected stakeholder groups for contracts beginning 1 October 2000. Wider implementation of direct purchase is planned for contracts beginning 1 October 2001.

Improving recreational fisheries management

The rights of recreational fishers are poorly defined relative to commercial and customary fishers. The lack of clear rights has made it difficult for recreational fishers to play an active part in managing fisheries or to enhance the quality of their fishing.

The current incentives for both commercial and recreational fishers centre on efforts aimed at gaining Ministerial agreement to increase their respective share of the total allowable catch rather than working co-operatively to improve fishing.

MFish and the New Zealand Recreational Fishing Council are working together to develop options for defining the recreational fishing right. It is proposed that, after consideration by Ministers, a joint discussion paper currently being prepared will be released for public consultation towards the middle of 2000.

The following issues will need attention in the next six months:

Oceans Policy

Officials have begun work on developing a framework for the integrated management of New Zealand's marine interests.

This work, which is being done in conjunction with other departments with an interest in the marine environment, will require the Minister responsible for fisheries to be involved in a collaborative way with his or her colleagues. Officials are required to report to the appropriate Cabinet Committee by the end of March 2000.

Allocation of pre-settlement assets

The Maori Fisheries Act 1989 requires the Treaty of Waitangi Fisheries Commission to allocate the assets it held prior to the signing of the Fisheries Deed of Settlement. You are required to consider any scheme of allocation proposed by the Commission to allocate those assets. You have 30 days from the receipt of a proposal to consider its content. Within that time you may request the Commission to reconsider all or part of its proposal. The Commission must make the appropriate amendments and return it to you.

The Commission has been attempting to develop an allocation model that will achieve support from at least 60 per cent of iwi. The proposals that have been put to Maori have resulted in litigation by iwi to prevent the Commission from allocating assets. Principal issues in litigation have been whether assets should be allocated to iwi or whether organisations representing urban Maori should also be allocated.

The High Court considered two questions remitted by the Privy Council. These were:

• should allocation be made only to iwi; and, if allocation was only to iwi,
• could urban Maori authorities be considered to be iwi.

The High Court found that allocation had to be to iwi, although the benefits of the assets must be available to all Maori. The Court also found that urban Maori authorities did not constitute iwi. The Court of Appeal has since confirmed these findings. A further approach to have the matter referred to the Privy Council cannot be discounted at this stage.

Further proceedings have sought to determine whether the Commission management of pre-settlement assets has favoured certain iwi; and which should be redressed in the Commission allocation model.

No proposal can be submitted before the completion of these further proceedings, which is unlikely before April 2000.