1. OVERVIEW

• Overview
• Introduction
• Ministry of Fisheries
• Recent Changes
• Where we are now
• Looking Forward
• Strategic Framework
• Current Issues
• MFish Organisation and External Relationships
  

1.1 Introduction

This briefing provides an overview of the fisheries and marine biosecurity sectors and the key issues likely to come before Ministers over the next three years. It also details the contribution of the Ministry of Fisheries to the Government's role in these sectors.

Fisheries Management

The Minister of Fisheries, along with the Ministry of Fisheries (MFish), is accountable for the sustainable utilisation and cost-effective administration of New Zealand's fisheries resources in accordance with domestic and international legal obligations.

In summary, fisheries management in New Zealand deals with a resource that is ecologically, socially, culturally and economically important to the country as a whole; acknowledges the customary use and management rights of tangata whenua; reflects the fact that, as an island nation and signatory to the United Nations Law of the Sea Conventions, we have international obligations relating to fisheries in New Zealand waters and in the high seas; deals with the underlying tensions between groups interested in fishing and those groups concerned primarily with conservation of resources.

Fisheries management relates to the relationship New Zealanders have with the ocean and their environment, and their aspirations for the future of that environment. It is a sector characterised by conflict between various participants who have competing values and objectives. The contentious nature of the issues is demonstrated by the level of litigation with over 30 cases, mostly by way of judicial reviews, currently on the books. Historically, the sector has also been at the forefront of innovation and change, and considerable ongoing legislative amendment and new regulations.

The operating environment for the Minister of Fisheries and MFish can be very difficult. Our fisheries and their management are under ongoing public scrutiny. Five particular factors impact on the operating environment:

• lack of consensus on the long-term direction of fisheries management
• conflict between recreational, customary and commercial fishers over access to fisheries
• those in the sector having firm views on fisheries management and not being reluctant to make those views known, including through the courts and the political system
• lack of public awareness and understanding of fisheries management and the management framework, resulting in ill-informed debate and absence of public support
• Ministry and stakeholder capability, capacity and information to make the best use out of existing legal frameworks.

On the other hand the sector has a very well developed legal and strategic framework against which complex issues in the sector can be managed. The Minister is central to the way in which fisheries management issues are addressed and reconciled and is in a position to provide leadership and direction within the fisheries sector.

Domestically, the Fisheries portfolio has links with the Agriculture, Biosecurity, Conservation, Economic Development, Environment, Food Safety, Mäori Affairs, New Zealand Defence Forces, Police and Treaty Settlements portfolios. The portfolio also has an international focus resulting in links with the Foreign Affairs and Trade and Trade Negotiations portfolios.

Marine Biosecurity

In relation to marine biosecurity, New Zealand's marine environment is unique, relatively pristine, and vulnerable to invasion by exotic organisms. New organisms in the sea can compete with native species, upset ecosystem balance, and reduce biodiversity. They can also provide valuable harvest species, such as Pacific oysters. The effects of exotic marine species on New Zealand's environment and economy are, to date, poorly understood. However, overseas examples show that the impacts can be substantial.

Since the establishment of the Biosecurity portfolio, Ministerial responsibility for marine biosecurity has been separate from the Fisheries portfolio.

1.2 Ministry of Fisheries

MFish is the principal adviser to the Minister of Fisheries. We are also the principal adviser to the Minister for Biosecurity, in relation to marine biosecurity. Our core roles are:

• advising the government on the policy and legal frameworks for the efficient and sustainable use of fisheries, the protection of the aquatic environment and the management of marine biosecurity risks
• maintaining relationships with tangata whenua and ensuring services are delivered that support the Crown's obligations to Mäori in respect of fisheries
• ensuring delivery of services that support the effective operation and integrity of the policy and legal frameworks.

MFish has played a large role over the last two to three years in the development of an oceans policy for New Zealand. This work is ongoing, with the Ministry for Environment as the lead department supported by other departments including MFish. Key drivers for the development of an oceans policy include the need to manage human impacts on the oceans more effectively and the wish to ensure that New Zealand receives the best possible value from its oceans.

MFish was established on 1 July 1995 and at 30 June 2002 employed 306 permanent staff, 21 temporary staff and 16 staff on casual contracts. Its output class budgets for 2002/2003 in the approved business plan total $68.4 million, excluding GST. This comprises $65.9 million in Vote Fisheries and $2.5 million in Vote Biosecurity (Fisheries). Cost recovery levies and transaction charges for Vote Fisheries applied to the commercial fisheries sector amount to $33.7 million or 51% of Vote: Fisheries. Approximately $30 million of the total budget (40%) is represented by registry and research services, which are delivered under contract to MFish.

The capability of MFish has become quite stretched in recent times. This is in terms of the sheer workload and the limited resources available to us. Our strategic thrust towards a greater environmental focus and creating greater opportunities for tangata and stakeholders' involvement have contributed to this and will continue to do so particularly in the science, policy, and fisheries management areas of our work. As is mentioned later, benchmarked against other OECD countries, New Zealand has a relatively low level of government investment in fisheries management.

MFish stakeholders include customary, recreational, commercial, and environmental interests. The main organisations representing these interests are iwi, New Zealand SeaFood Industry Council (SeaFIC), Te Ohu Kaimoana (Treaty of Waitangi Fisheries Commission, TOKM), New Zealand Recreational Fishing Council, Environment and Conservation Organisations, and the Royal Forest and Bird Protection Society.

The main service provider organisations are FishServe for registry services and NIWA for research services.

1.3 Recent changes

The last three years have seen substantial changes in both the sector and in MFish. In the fisheries area we have fully commenced the Fisheries Act 1996 and amendments, implemented major organisational changes, and increased our operational focus on environmental issues and stakeholder participation. MFish has also, over this period, become the lead agency for marine biosecurity.

Commencement of Fisheries Act 1996

The Fisheries Act 1996 and its amendments were fully commenced on 1 October 2001. This resulted in:

• implementation of a new catch balancing regime for commercial fisheries
• ability to introduce new species into the quota management system (QMS)
• transfer of responsibility for delivering some registry services to SeaFIC while contracting out the balance
• graduated offences and penalties
• use of infringement notices for low level offending in commercial and recreational fisheries
• implementation of a high seas permitting regime (introduced in May 2001).

The legal framework for fisheries management is now more flexible and responsive than it has been in the past. Change will be ongoing. The new balancing regime may drive significant changes in the fishing industry as it adapts to requirements to match catch with entitlements across fisheries. Fisheries plans provide opportunities for stakeholders to develop and implement long-term management plans to better meet their needs, provided they do not cause adverse effects to the environment or to other users. The cost recovery regime continues to drive change as industry looks to get more efficient and transparent delivery of services from the Crown, and take on functions within standards set by Government.

With full commencement of the Fisheries Act 1996 MFish is in the process of moving from a focus on implementation to cost-effective administration of the Act and its amendments.

Organisational changes

In the past two years, in response to the changing external environment, MFish implemented a new organisational structure will enable us to achieve better focus on fisheries management outcomes. A key feature is the establishment of a new Fisheries Management business group, with dispersed responsibilities for managing fisheries and an increased focus on standards setting and evaluation.

We are currently in the process of creating a new position of Chief Adviser Treaty Relationships, and establishing up to eight new Treaty Relationship Facilitator positions with the intent of improving relationships with tangata whenua and better providing for their input and participation into fisheries management.

Focus on environmental issues

The purpose of the Fisheries Act 1996 is to provide for utilisation of fisheries resources while ensuring sustainability. The Act increased the environmental focus of the legal framework, notably by introducing environmental and information principles, which require decisions to be based on the best available information and to take account of the wider ecosystem in which fisheries exist. While the setting of sustainable catch limits, based on scientific research, continues to underpin sustainable stock management, we have increasingly expanded our efforts to deliver ecosystem-based management. Recent initiatives include increased research on the environmental effects of fishing, regulatory measures to address fishing mortality of seabirds and Hector's dolphins, closure of 19 seamounts to trawling, preparation of discussion papers on strategies for environmental management and marine protected areas, and collaborative work with the Department of Conservation to improve the process for establishing marine reserves. The environmental management strategy, under development, recognises these initiatives, but looks for further improvement in a coordinated and proactive strategy to meet all environmental obligations in an efficient and consistent manner.

Stakeholder participation

MFish is also undertaking a review of its strategy to deliver on its obligations to Mäori arising from the Treaty of Waitangi (Fisheries Claims) Settlement Act 1992 and the principles of the Treaty of Waitangi. The final strategy will address strategic and operational aspects of our obligations and implement mechanisms to achieve an improved working relationship with Mäori. The strategy will complement the implementation of customary regulations and other provisions to recognise the role of Mäori in fisheries management.

Participation will also be enhanced through the ongoing development of fisheries plans by stakeholders, and improvements to the MFish business planning process. Consultations on the annual business plan have been extended to provide improved opportunities for discussion and review as a result of stakeholder participation.

Marine biosecurity

While not a major part of our operations, the biosecurity role of MFish has expanded significantly as we have assumed the role of lead agency for marine biosecurity. This was enabled by increased resourcing through Biodiversity Strategy funding and increased organisational capacity for marine biosecurity. Recent initiatives include the development of a risk management framework for marine biosecurity, incursion response plans, baseline surveys of ports, and vector monitoring for Undaria.

1.4 Where we are now

New Zealand's fisheries management regime has given rise to:

• An internationally competitive fishing industry
  
  The fisheries sector is New Zealand's fourth largest export earner. In 2001, the fisheries sector produced $1.5 billion in export revenue, of which about 15% comprised aquaculture production. The industry operates under the pioneering and highly successful quota management system without subsidies and contributes to the cost of fisheries management via both cost recovery and direct delivery. The sector employs 26,000 people (10,000 directly) and makes an important contribution to regional economies. For example, the fishing industry in the Nelson region generates a $383 million contribution to GDP and employs 5,440 people.
• A high quality and popular marine recreational fishery
  
  Up to 20% of New Zealanders participate in recreational fishing every year. Recreational fishing also attracts foreign tourists. Free access to a healthy fishery by world standards is available to all recreational fishers. Both the northern snapper fishery and the Nelson scallop fishery are examples of world class recreational fisheries.
• Resolution of customary fishing claims
  
  New Zealand is one of the first countries to comprehensively address resolution of aboriginal claims to fishing. The 1992 Deed of Settlement gave Mäori a substantial stake in commercial fishing and provided for the non-commercial customary fishing and management rights of tangata whenua.
• Sustainable harvests
  
  The majority of our commercial fisheries are harvested at a sustainable level. Recovery strategies are in place for all stocks known to be depleted. Work is continuing to develop new frameworks and standards consistent with our environmental focus, and to improve our knowledge about the state of stocks and environmental impacts of fishing.

These outcomes have not occurred by chance. Since 1986, New Zealand has successfully used market instruments and science-based advice to manage the use of our fisheries resources. This includes the quota management system for the commercial sector. The regime is innovative and we are the focus of considerable international attention as other nations seek to resolve the difficult issues of sustainable fisheries utilisation. Under the quota management system, the sector has evolved from one focused on a 'race to fish' to one increasingly focused on investment in market developments and the resource, commensurate with the ability to assume collective accountability for fisheries management.

Benchmarked against other OECD nations, we have a very efficient management regime, but also a relatively low level of government investment in fisheries management. For example, the ratio of net government expenditure on fisheries management to the annual landed value of the fishery resource averaged 17 percent in OECD countries in 1997. The New Zealand ratio was 4 percent. The corresponding percentages for other OECD countries with credible management regimes include: Australia - 9 percent (before taking into account expenditure by State Governments); Canada - 25 percent; the United Kingdom - 13 percent; Iceland - 4 percent; Japan - 21 percent; Norway - 12 percent; the United States - 24 percent.

The management regime has laid a useful foundation, but challenges remain to ensure that we can achieve the goal of maximising the value New Zealanders obtain through sustainable use of fisheries resources. In particular we need to improve the environmental performance of the fisheries sector, improve collective accountability for fisheries management, and invest in capability within the sector including in MFish. Progress in these areas will take time. Progress relies on new information, altered fishing practices and values, development of mutual trust, and consensus building skills. Underpinning this will be legislative changes to enable new institutional frameworks to evolve.

1.5 Looking forward

Next three years

Key priorities and policy issues in the fisheries and marine biosecurity portfolios over the next three years are:

• supporting completion of the oceans policy
• increasing environmental focus in fisheries management, including improving the environmental performance of the fishing sector
• addressing expectations by Mäori for the Crown to deliver upon the Deed of Settlement responsibilities relating to customary fisheries management, including input and participation
• improving policy to deliver on cost recovery principles in the Fisheries Act
• facilitating collective accountability by fisheries stakeholders
• introduction of new species into the quota management system
• reforms to aquaculture
• recreational fisheries reform
• implementation of the biodiversity strategy
• development and approval of fisheries plans
• completing and implementing the biosecurity strategy and an associated risk management framework in the marine area
• international fisheries issues, including regional agreements and fisheries trade liberalisation
• enhancing capability in both MFish and the wider sector to enable effective participation and collective accountability
• monitoring the effectiveness of the legislative framework and our services and operating procedures.

MFish is looking for the legislative framework to be amended over the next 18 months to allow for:

• allocation of pre-settlement assets
• aquaculture reforms to the Fisheries Act and Resource Management Act
• future management of highly migratory species, such as tuna
• possible amendments to improve management of recreational fishing
• technical amendments following the operation of the new quota management system (QMS) over the last year
• review of the long term management regime for non-QMS fisheries, following the introduction of further species into the QMS.

Immediate issues

Matters to be addressed in August and September include:

• Consideration of the updated MFish 2003-2008 strategic plan
• consideration of MFish advice on three marine reserve proposals
• decisions on sustainability and other management measures for the October 2002/03 fishing year
• decisions on cost recovery levies for conservation services for the fishing year commencing 1 October 2002
• measures to avoid, remedy or mitigate the effects of fishing on North Island Hector's dolphins
• public discussion documents on marine protected areas, seabirds, environmental management strategy, and management of highly migratory species
• introduction of the Resource Management (Aquaculture) Amendment Bill to Parliament
• continued introduction of further species into the QMS
• consideration of temporary closures and Napier mätaitai reserve applications
• implications of the possible Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) listing for Patagonian toothfish
• consideration of a report on trans-Tasman fisheries issues
• recommended measures to mitigate risks associated with hull fouling and cleaning.

Issues over next 6 months

Key matters to be addressed over the next 6 months include:

• consideration of an expected allocation proposal by Te Ohu Kai Moana
• consideration of the MFish Treaty Strategy
• appointments of kaitiaki/tangata kaitiaki
• consideration of sealion plan
• decisions on sustainability measures for the 1 April 2003 fishing year
• consideration of negotiating briefs for the Commission for the Conservation of Southern Bluefin Tuna (CCSBT) and the Convention for the Conservation of Antarctic Marine Living Resources (CCAMLR) meetings in October 2002
• making permitting decisions regarding Antarctic fishing during the 2002/03 season.
• ratification of the Western and Central Pacific Fisheries Convention (WCPFC)
• approval of an international fisheries strategy
• consideration of the mätaitai reserve application for Waitutu
• consideration of the ballast water negotiating position for International Maritime Organisation (IMO) meetings
• consideration of the draft biosecurity strategy
• consideration of the final of the MFish updated strategic plan following stakeholder consultation
• consideration of the joint working party report on cost recovery

consideration of the draft 2003/08 Statement of Intent for stakeholder consultation.