Policy issues

International

CCSBT

The Commission for the Conservation of Southern Bluefin Tuna (CCSBT) manages southern bluefin tuna (SBT) in the South Pacific and Indian oceans. New Zealand has been a member of CCSBT since it was established in 1994. Despite significant difficulties in the late 1990s the Commission has now returned to a reasonable level of effectiveness and functionality (including agreement in 2003 and 2004 on a TAC and national allocations for the first time since 1997). The Commission is likely to face some considerable challenges in the year ahead. Recent advice from the Scientific Committee has further highlighted the seriously depleted status of the stock and the urgent need for a significant reduction to the TAC in the near future. It is also feared that illegal, unreported and unregulated (IUU) fishing continues to impact on the stock. Recent work on a management procedure to provide a new scientific process for recommending TACs has further highlighted concerns about the status of the stock. The management procedure is a major area of work for the Commission with a decision on a new procedure is expected at CCSBT12.

Significantly for New Zealand, the Commission has agreed at its last two meetings that there is an outstanding issue in respect of adjustment to national allocations as set out in an understanding reached at the first CCSBT meeting. New Zealand has been working hard to secure agreement on how this issue can be accommodated within the decision rules for allocating the TAC, particularly within an environment of declining TACs. The CCSBT is meeting for the twelfth time in October 2005 in Taiwan.

Actions:

• CCSBT 12 is taking place as this briefing document is being prepared. There may be a requirement for Ministerial decisions arising from outcomes of CCSBT 12.

International Fisheries Strategy

Recent changes in international fisheries law, the continued expansion of New Zealand fishing interests beyond the Exclusive Economic Zone (EEZ) and the increased pressure on international fish stocks and ecosystems, including through illegal, unreported and unregulated fishing (IUU fishing), has created a new and challenging environment for international fisheries management. Transparent frameworks and policies are needed to manage New Zealand's international fishing interests. The Ministry is developing an initial paper that outlines proposed components of an international fisheries strategy for New Zealand. Guidance on this paper will be sought from the Minister. We will then consult closely with other departments, in particular the Ministry of Foreign Affairs and Trade, in the development of a draft strategy for the Minister's consideration before initiating a consultation process with stakeholders.

Actions:

• before November 2005, consider a paper on key components of an international fisheries strategy for New Zealand
• before March 2006 approve, for consultation with stakeholders, a draft international fisheries strategy for New Zealand.

CCAMLR and Antarctic Fishing

The Convention for the Conservation of Antarctic Marine Living Resources (CCAMLR) has the aim of conservation, including rational use, of Antarctic marine living resources. New Zealand is party to CCAMLR. New Zealand vessels have undertaken exploratory fishing for toothfish in the Ross Sea area of Antarctic for the past eight seasons. In 2004/05, the Ross Sea toothfish fishery is estimated to have been worth NZ$20 million to New Zealand in export earnings. Applications to fish in CCAMLR waters in the 2005/06 season have been received from three companies in respect of five vessels. In July, New Zealand submitted its notification to CCAMLR on fishing and research activities in the 2005/06 season, seeking access to five CCAMLR fisheries for New Zealand-flagged vessels. In May 2002, Cabinet agreed on a framework for New Zealand participation in CCAMLR fisheries. In October 2005 officials will report back to Cabinet on progress against the 2002 Cabinet decision and will request further refinement of that decision.

In October 2005, Ministry (and MFAT) officials will attend the annual CCAMLR meeting during which conservation and management measures will be agreed on for the following year. The Minister of Fisheries will be required to approve New Zealand's negotiating position for that meeting. In addition, the Minister of Fisheries will be required to make permitting decisions under the Antarctic Marine Living Resources Act 1981 in late November to determine which New Zealand vessels will fish in Antarctica during the 2005/06 season.

Actions:

• in October 2005 approve (in conjunction with the Minister of Foreign Affairs and Trade) New Zealand's negotiating position for the annual Commission meeting of CCAMLR 
• in October 2005 consider a paper reporting to Cabinet on progress made against the 2002 Ross Sea and Southern Ocean Review Cabinet decisions 
• in October 2005 approve a paper requesting Cabinet decision on future New Zealand fishing activities and marine protection in the Ross Sea 
• by November 2005 decide on Antarctic Marine Living Resources Act fishing permits.

WCPFC and associated meetings

The Western and Central Pacific Fisheries Convention (WCPFC) entered into force on 19 June 2004 and the inaugural meeting of the Commission was held from 9-10 December 2004 at Pohnpei, Federated States of Micronesia (FSM), where the Commission's headquarters are to be located.  With the Convention in force and the Commission established, work is now beginning in earnest on the consideration of management options for the region's valuable tuna resources. Delays in the appointment of an Executive Director, due to the preferred candidate declining to take up the job, should be resolved prior to December with the second preferred candidate having now agreed to take up the position, enabling Secretariat arrangements to be put in place.

The first proper meeting of the Scientific Committee of the Western and Central Pacific Fisheries Commission was held in Noumea from 8 – 18 August 2005. At its first meeting, the Commission requested that specific scientific analyses be undertaken by the Scientific Committee to inform its decisions on management options. Ministry officials actively participated in this meeting, which also conducted or updated stock assessments of the four main tuna species (skipjack, South Pacific albacore, bigeye and yellowfin).

The Commission has resolved that it will adopt conservation and management measures necessary to address any sustainability concerns at its second meeting to be held in Pohnpei, FSM in December 2005. New Zealand will be seeking to play an influential role, working with Pacific Island countries and within the wider Commission, to promote a strategic approach to the management of these fisheries to ensure that resource sustainability and economic and social objectives are realised to the greatest extent possible.

Action:

• approve New Zealand positions prior to the December 2005 Commission meeting.

New Zealand fisheries

Allocation policy

Section 21 of the Fisheries Act 1996 sets out the steps required to be taken by the Minister of Fisheries in setting or adjusting the Total Allowable Commercial Catch (TACC) for a QMS stock. The section instructs that the Minister must have regard for the TAC and shall allow for noncommercial fishing interests and all other mortality caused by fishing. This broad discretion can, when exercised in fisheries that are shared significantly between commercial and recreational interests, result in dissatisfaction on the part of both parties. The current provisions allow the Minister scope to vary the relative shares allocated to commercial and recreational interests as circumstance or available information changes. However, the uncertainty faced by industry in respect of their ongoing quota rights is exacerbated by this discretion, affecting quota values and incentives to invest in productivity improvements. Similarly, the non-commercial sector has serious concerns in some circumstances about how their interests are recognised in allocation decisions. In order to avoid undermining the incentives that individuals have to protect and enhance the resource and its value, we need to develop a fair framework that can provide for reallocation from commercial to non-commercial fisheries, or vice versa.

The Ministry has recently initiated a policy project to review the current provisions relating to intersectoral access and allocation and explore reform options to provide the Minister and stakeholders with a more satisfactory framework for intersectoral allocation. This work will encompass a review of section 21. The policy project is planned for completion by September 2006, with enactment of any legislative reforms in the following 12 months.

Action:

• in October 2005, consider a brief on proposed process and scope for reform.

Recreational Fishing Ministerial Advisory Committee

This is a new committee established in July 2005. The committee's purpose is to provide advice directly to the Minister of Fisheries on strategic matters facing the recreational fishing sector. The first meeting of the committee was held in August 2005 and it is expected to meet up to four times per year. The Committee is a non-statutory body and will not be used as part of any statutory consultation or decision-making processes. The Chief Executive of the Ministry of Fisheries or the Minister will chair the committee's meetings. The Committee members shall conclude their role at the discretion of the Minister.

It is intended that the establishment of a Recreational Fishing Ministerial Advisory Committee will build important links with the recreational fishing sector. It is estimated that up to one in every four New Zealanders go recreational fishing every year, but recreational fishers do not participate very effectively in fisheries management. The focus of the committee's discussions will be to improve outcomes for the recreational fishing sector, such as allocation, examining options to improve information generation and management, and capacity building. The establishment and operation of the committee will improve the government's links with this sector and, longer term, assist with the building of the capacity and capability of the sector to participate effectively in fisheries management.

The committee has seven members who have been appointed on the basis of expert knowledge of recreational fishing and the issues affecting the recreational fishing sector (rather than as representatives of particular recreational fishing interests). Members of the committee are listed in Annex 3. The committee's appointment is at the discretion of the Minister of Fisheries, so a new Minister can confirm continuation of the committee or otherwise.

Action:

• in October 2005, consider whether to continue with the Committee and confirm timing of, and agenda for, the next meeting, which is tentatively planned for November 2005.

Cost Recovery – Review of the Framework

Cost recovery is the mechanism by which the public costs of managing fisheries are reduced, and is a key element of the incentive structure that underpins New Zealand fisheries management. Under the Fisheries Act, the Crown recovers a proportion of its total costs from the commercial fishing industry. The cost recovery principles and rules together determine whether and to what extent the Ministry costs can be recovered from the commercial industry. The principles set out beneficiariespays and risk-creator pays approaches to guide the recovery of departmental (Ministry and Department of Conservation) costs. The principles are established in statute (section 262) and describe the approach to cost recovery; the cost recovery rules interpret and give effect to these principles; these give rise to levies, which specify costs to be recovered from identified groups. Cost recovery rules are altered as the characteristics of government-provided services change. The rules were last changed in 2001, while levies are issued annually.

The Statement of Intent notes that a review of the cost recovery framework will proceed in 2005/06. The scope of such a review has not been determined. It could mean a 'principled review' that could comprehensively overhaul the rules or alternatively, a more modest scope could be adopted, to modify those rules that most require amendment. Industry has a general expectation that a joint Cost Recovery Working Group would be formed to undertake a comprehensive, principled review of the cost recovery rules.

Any review of cost recovery is contentious and changes to the regulations and/or the Act must go through both internal and external consultation as well as through Cabinet. The Ministry is currently analysing the various options for a cost recovery review, and will provide you with advice on its possible scope.

Action:

• in October 2005, consider advice on the scope of the review.

Deemed value entitlements

A joint Crown-Industry working group (JWG) was established to consider the proposition that quota rights holders should be entitled to a proportion of revenues paid as deemed values.

The findings of the JWG were reported to the Minister of Fisheries in May 2005. The report presents recommendations on a broader set of issues than just the return of revenues, representing the JWG's agreement that other problems with the deemed value system required attention. The Steering Group for the JWG has sought to meet with the Minister to discuss the report. If approved, the recommendations will be progressed through a process of wider consultation with fisheries stakeholders.

The JWG was mandated by the Minister, and arose from the considerations of an earlier Joint Crown and Industry Working Group on Under and Over Recovery of Cost Recovery Levies, which reported to the Minister of Fisheries in February 2003.

Action:

• determine whether to progress the recommendations of the joint working group.

Freshwater fisheries jurisdiction

The Ministry is intending to examine the options for reviewing the jurisdictional boundaries for freshwater fisheries (see earlier section in this document). Work on this issue will require the involvement of other agencies, in particular the Department of Conservation and the New Zealand Fish and Game Council. Potentially input from other agencies, for example Biosecurity NZ, will also be required.

The Ministry (jointly with DoC) will be providing you and the Minister of Conservation, with a brief on the proposed process for the review to be undertaken. Following approval of the process, the outcomes and principles, management requirements and options for role definitions would be developed.

Action:

• by November 2005 consider advice on process for a review of the jurisdiction for freshwater fisheries management.

Establishing fisheries outcomes

As part of the "Managing for Outcomes" approach within the Government sector, the Ministry is increasing its focus on establishing, and re-enforcing, the links between the outputs it produces, and the achievement of Government outcomes. The 2005/08 Statement of Intent outlines an overall fishery outcome, and four contributing outcomes to provide an indication of the long-term societal goals that fisheries resources are being managed towards. The Statement of Intent provides some detail on the links between Ministry services and activities and these goals, but there is scope for improvement.

The Ministry has already signalled its intention to use objective-based management as the basis for determining appropriate fisheries management interventions, and to use fisheries plans as the principle method of establishing objectives. This approach needs to be supported by an outcomes framework that enables the consistent and principled linking of management objectives, via standards, to fisheries outcomes. Such a framework, and the intervention logic that shows why management measures have been adopted, will enable stakeholders to both understand more clearly, and better participate in, the management decisions which affect their interests. Stakeholder acceptance of this framework, and the processes used to set, and modify, outcomes and standards, is seen as very important. Accordingly the Ministry intends to undertake a Project, commencing later this year, to develop specific fisheries outcomes, and to fully develop an outcomes framework to better support management planning processes.

It is intended to gain your approval of these outcomes and the framework, both prior to release for public consultation, and in their final form.

Action:

• in October 2005, consider a brief to confirm nature and extent of project.

Oceans Policy

In July 2005, Cabinet directed officials to report by 15 December 2005 on a draft discussion document setting out the options for the Oceans Policy (see discussion on Oceans Policy earlier in this document). Work is progressing on defining requirements for the institutions, processes and mechanisims to give effect to the draft Oceans Policy framework, and on specific issues associated with Oceans Policy (this is a key aspect of the cabinet directive). Ministry staff have been particularly involved with work on the fundamental issue of how to reconcile competing uses for the oceans.

The approach to be taken to the development of the Oceans Policy is somewhat unclear and needs to be clarified before a Cabinet paper is prepared.

Action:

• in November 2005, consider advice from officials on timing and approach to the development of the Oceans Policy.