MANAGING FOR OUTCOMES

Since 2003 the Ministry of Fisheries has focussed on the following overall fisheries outcome:

"The value New Zealanders obtain from the sustainable use of fisheries resources and protection of the aquatic environment is maximised."

The relationship between the Government's goals and strategies, and the overall fisheries outcome, contributing outcomes, and departmental output expenses is shown in Figure 1. The outcomes and outputs are described in more detail below.

The Ministry does not have responsibility for all the contributions required to achieve the fishery outcome and must rely on contributions from others—government agencies, iwi and hapü, stakeholders and the public.

To achieve the overall fisheries outcome, the Ministry has identified four contributing outcomes:

• the health of the aquatic environment is protected
  
• people are able to realise the best value from the sustainable and efficient use of fisheries
  
• Crown obligations to Maori with respect to fisheries are delivered
  
• credible fisheries management

Health of the Aquatic Environment Protected

Protecting the health of the aquatic environment means that government, in consultation with stakeholders, should determine the limits of acceptable human-induced change, and ensure that these limits are not exceeded.

The government has an obligation to ensure that use of fisheries resources does not compromise the sustainability of fisheries resources or the wider aquatic environment. Most uses of fisheries resources—and other uses of the aquatic environment—affect the aquatic environment in some way. Some of those effects pose no significant risk because they are minor in intensity or scale, or because the effect occurs only for a short period. But other effects pose greater risk because they are high in intensity, broad in scale, last for a long period, or occur in a particularly sensitive environment.

Best Value Able to be Realised

Fisheries are valued for a wide range of uses, including customary, recreational and commercial harvesting as well as non-extractive uses. Within limits set to ensure sustainability, best value can be realised by ensuring access, to fisheries resources, is distributed between users in a manner that allows the resources to be used by those who obtain the most value from them.

Where practical, distribution of access to achieve best value will be carried out by market mechanisms. Under the Quota Management System (QMS), commercial rights to harvest fish can be traded and it is assumed that those who value commercial fishing rights most will be able to buy them. The government's role in allocating fisheries resources within the commercial sector is now minimal. However, there is currently no mechanism, such as a market, for stakeholders to adjust levels of access to fisheries resources between sectors, or between individuals within noncommercial fisheries sectors. In the absence of such a mechanism, the Government is required to determine allocations. Over the longer term we should be working toward enabling tangata whenua and stakeholder representatives to reach agreements themselves on the best way to manage shared fisheries to meet their respective interests.

Over the medium term, the Ministry's primary role in allocation is to help tangata whenua and stakeholders work together to identify how they want to maximise value from a fishery—including through allocations between sectors. Where consensus cannot be achieved, the Ministry's role is to convey tangata whenua and stakeholder views to the Minister, provide advice on the implications of different options, and implement the Minister's decision.

The Ministry also contributes to maximising value by ensuring that management of fisheries focuses on achieving clear objectives, and that a process of assessment of risks and opportunities, in relation to objectives, is used to prioritise the resultant management measures and services.

The Ministry will facilitate and encourage initiatives to increase the value that customary, recreational, and commercial fishers obtain from the fishery. These include tangata whenua-led and stakeholder-led approaches to add value to fisheries and government-led approaches to ensure fair allocation of resources.

The Ministry recognises that fisheries are valued for non-extractive as well as extractive uses.
Under the current legislative framework, certain non-extractive uses (such as existence values) can be met through sustainability requirements; however, non-extractive uses such as fish-viewing, which may require restrictions on fishing in a particular area, cannot be provided for directly. To maximise the value of fisheries resources we need to explore options to provide for non-extractive uses, in a manner that fairly addresses the interests of non-extractive users, as well as the interests of existing extractive users.

Obligations to Maori Delivered

The Ministry recognises the status of Maori as tangata whenua. The 1992 Fisheries Deed of Settlement addressed Maori fishing claims under the Treaty of Waitangi. Under the Deed of Settlement the Crown has specific ongoing obligations to consult with tangata whenua about, and develop policies to help recognise, use and management practices of Maori in the exercise of noncommercial fishing rights. The Crown must also recognise and provide for customary noncommercial fishing and allocate to Maori 20% of the quota of all new species entering the QMS.  The Ministry will deliver on its obligations to Maori with respect to fishing by implementing our Deed of Settlement obligations, as set out in the Treaty of Waitangi (Fisheries Claims) Settlement Act 1992 and the customary fishing regulations, and by acting consistently with Treaty principles. The Ministry will work to establish and maintain effective relationships with tangata whenua.

Under recent aquaculture legislation, the Crown has a responsibility to implement the aquaculture settlement. This requires that iwi are provided with equivalent to 20% of marine farming space approved since September 1992 and 20% of all new space identified in Aquaculture Management Areas.

The Crown also has specific fisheries-related obligations arising from settlements with individual iwi.

Credible Fisheries Management

Credibility of management frameworks, and the Ministry responsible for operating them, is important for effective management of fisheries, especially in respect of voluntary compliance with fisheries rules. Credibility of fisheries management, which also contributes to respect for laws in general and other management institutions, is affected by a range of factors.

Tangata whenua and stakeholders need to know that the scientific and other information on which decisions are made is robust, that decision-making processes are effective and fair, and that decisions are properly implemented. Critical information includes research on the status of fish stocks and impacts on the aquatic environment, ownership of quota shares and annual catch entitlements (ACE), and the amount of each fish stock harvested by each fisher and in total.  Critical decision-making processes include setting the Total Allowable Catch (TAC) and the Total Allowable Commercial Catch (TACC), determining other fisheries management controls, and setting cost recovery charges. Effective compliance—achieved through both appropriate incentives for voluntary compliance and strong deterrence—is critical to ensure effective implementation of fisheries policies.

Another important contributor to credibility is effective engagement with tangata whenua, stakeholders, other government organisations, and the public in management of fisheries.
Constructive engagement requires the Ministry to focus on relationship management, communication, and building tangata whenua and stakeholder capacity to participate effectively in management processes. The Ministry will engage with different fisheries sectors both separately and together. Engaging separately with each sector, including engagement with tangata whenua, will enable Ministry staff and sector group representatives to discuss issues of concern and options for constructive resolution. Engagement with different sectors in multi-sector forums will focus on the development of standards and obtaining consensus on fisheries plan objectives.

Outputs

To achieve the contributing outcomes, and overall fisheries outcome, the Ministry provides a range of outputs, grouped into five departmental output expenses: fisheries policy, fisheries information, fisheries operations, fisheries compliance, and aquaculture settlement.

The first four outputs contribute to achieving all the contributing outcomes.

Policy analysis is required to help ensure existing management frameworks operate appropriately and, where necessary, to develop new frameworks to meet the outcomes.

Information is vital to maintaining the integrity of all management frameworks. Appropriate information on the state of fish stocks and the effects of fishing on the aquatic environment is required to ensure sustainability. Information is also required to ensure the level of access granted to particular groups and individuals is appropriate, and that use levels remain within the access granted.

Management of fisheries is complex and can have major effects on the value of fisheries through its impact on fish stocks, the aquatic environment and users' access. To ensure cost-effective management, and contribute to maximising value, processes and systems must be well designed and well operated.

The temptation to exceed fisheries access rights is often strong, and effective deterrents are required. Therefore effective enforcement is important, along with education and other contributors to voluntary compliance.

The aquaculture settlement output contributes primarily to meeting Crown obligations to Maori.

Output – Fisheries Policy

This output covers the development and review of policy and legal frameworks required for the sustainable and efficient utilisation of fisheries. This includes providing advice on fisheries outcomes and standards, monitoring, international fisheries issues, and participation in wider marine management initiatives such as the development of an Oceans Policy. Advice is also provided on the impact and implementation of Treaty of Waitangi settlements. Government requests for other policy advice are also covered by this output.

Output – Fisheries Information

This output covers the gathering and analysis of data about New Zealand's fisheries and marine biodiversity. This information supports the scientific evaluation of the status of fisheries resources, the effects of fishing on the aquatic environment, alternative strategies and measures to give effect to the desired management strategy, and analysis of cultural, social and economic factors relevant to management decisions.

Output – Fisheries Operations

This output covers the provision of a series of baseline fisheries management services, including development of fisheries plans, advice on sustainability and utilisation decisions, determining marine farming applications, and advice on marine reserve concurrence. This output also covers processing and advice on customary applications; managing and disseminating fisheries management information; and creating, maintaining, and reviewing service delivery standards.

Output – Fisheries Compliance

This output covers activities aimed at maximising voluntary compliance with fisheries rules and creating effective deterrence. This includes providing education services to fishers about their responsibilities, the rules, and the rationale for those rules; collecting compliance information for use when reviewing rules and targeting enforcement resources; and activities to monitor, detect and prosecute fisheries offences.

Output – Aquaculture Settlement

This output covers activities required to meet the Crown's obligations under the Maori Aquaculture Claims Settlement Act 2004. These include determining how much existing and new marine farming space in each region is to be transferred to the trustee; establishing and maintaining an aquaculture settlement register; and monitoring the funding and delivery of outputs by Te Ohu Kai Moana Trustee Limited (TOKMTL) for its role as trustee in relation to settlement assets.

Improving Ministry performance

Earlier this year steps were taken to enhance the Ministry's capacity to deliver fisheries management priorities and achieve greater value from the Government's investment in fisheries management. This work led on from the appointment of the new Chief Executive, Dr John Glaister, and has resulted in changes being made to the organisational structure and governance arrangements. The changes have resulted in there being more integration between the senior management team and business groups. In addition clear lines of accountability have been provided for the delivery of a wide range of Ministry services.

Key aspects of the changes are:

• the establishment of a new senior management structure. A flatter reporting structure has been created at the senior level of the Ministry. A senior managers' team has been established to advise the Chief Executive on critical fisheries issues and organisational decisions, enabling effective leadership on major issues facing the fisheries sector
  
• the Ministry has moved to integrate processes and build a cross-business group approach to fisheries management issues. A systems approach is also being developed to deliver Ministry outputs, ensuring business groups and staff are able to work outside current boundaries in an integrated, constructive and collaborative manner
  
• the Ministry is aligning its fisheries management functions with its strategic direction. Fisheries operations, fisheries science and fisheries compliance are being aligned to better support the Ministry's strategic policy direction and fisheries outcomes. Part of this involves service delivery being driven off fisheries plans and other policy.

Work has also commenced and will continue in the 2006/07 year, on development of the core infrastructure of the Ministry. Investments in systems, information and development of staff are required to ensure Ministry personnel can work in the way envisaged by the Statement of Intent.

Delivery of relevant information to stakeholders and Ministry staff is critical. During 2004/05 the strategy for information was developed and initial projects are now underway to enhance the performance of the Ministry. In future years, increased focus on information on fisheries will be achieved. Initiatives include:

• new records and document management systems and procedures to maintain historical records, and access new information • new core financial systems to replace those originally installed in 1995
  
• tangata whenua and stakeholder relationship management system to ensure we have accurate and nationally consistent information to support Ministry engagement with tangata whenua and stakeholders.

Initiatives are also underway to address workplace improvements. These include:

• handling of feedback and complaints will follow a new, nationally monitored, complaints policy and process
• implementation of workforce planning in the Ministry • improved management capability, building on work in 2001/02 with a skill development programme
• upgraded and efficient office accommodation for fisheries operations and compliance services at Nelson
• re-alignment work on compliance services • ongoing focus on culture and working in a constructive way
• implementation of efficient office accommodation for Wellington CBD-based staff
• improved integration of Ministry work processes to support the objectives-based approach to fisheries management.