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Kahawai Final Advice Paper - Statutory Obligations
Ministry
of Fisheries
29
June 2004
Statutory
Obligations and Policy Guidelines
Allocation
of TAC
- The Minister is required to make allowances for different fishing
interests under the Act. The Minister must have regard to the
TAC and allow for:
- Customary Mäori;
- Recreational fishers;
- All other sources of mortality to the stock caused by fishing;
and
- The TACC.
- In the absence of other information TACs may be set at levels
based on consideration of known or estimated levels of recreational,
Mäori customary, and commercial catch and all other sources
of fishing related mortality. The information about the catch
of each sector group also acts as a guide to the subsequent allocation
of the TAC but that, in itself, will not be determinative of that
exercise. The Minister makes a separate decision about allocation
after setting the TAC.
- The allocation of the TAC is an important element of the introduction
process. The amount allocated to the respective interest occurs
(except for Fourth Schedule stocks) without any compensation of
current interests in the fishery. For example, 20% of the commercial
allocation to the Treaty of Waitangi Fisheries Commission occurs
by pro-rating downwards the total provisional catches if they
exceed more than 80% of the TACC. The introduction process allocates
ITQ to commercial fishers as a property right. Any subsequent
redistribution of the commercial allocation of the fishery to
another sector may be subject to payment of compensation. (No
compensation is payable where measures are taken to ensure sustainability.)
MFish considers there is benefit in considering the initial allocation
of catch in light of both current and reasonable future needs
or interests in the resource. Decisions at the point of introduction
to the QMS may resolve some of the problems about allocation that
may occur in the short to medium term at no or minimal cost to
any sector where a TAC is able to set, in accordance with the
provisions of the Act, at a level above the extent of current
catch.
- Generic factors relevant to the determination of allocation
of the TAC include:
- Population trends;
- Existing catch levels (including popularity and importance of
the resource to each sector);
- Current fishing practices (including overfishing, voluntary
shelving, or closures by a stakeholder);
- Economic impact of allocative decisions; and
- Social and cultural impact of decisions.
- Population trends are reflected in the level of recreational
fishing undertaken, both on a national and regional context. The
growth of urban centres, in particular Auckland, has a significant
impact on particular fisheries. An allowance for the recreational
interest and the corresponding management controls for a stock
should take into account existing population distribution and
growth.
- Certain fisheries are considered to be of particular importance
to a particular sector. The value attributed to a resource is
not limited solely to economic value but may also include the
non-market value. The abundance of a species and the availability
of particular size fish for a specific stakeholder group may also
be factors relevant to the allocation decision.
- The consistent overfishing of the TACC or an allowance, which
results in the reduction of the TAC, as a general principle, ought
to be attributed to the stakeholder group responsible for the
overfishing. Equally stakeholders may elect to exercise their
fishing rights in a manner which results in their allocation in
a fishery being undercaught. Voluntary closures and temporary
shelving of allocation may be undertaken as a means of improving
the abundance of a species and the availability of certain sized
fish. Current catch by customary Mäori may not reflect the
extent of customary interests in a species. Decisions may be made
not to fish a species due to non-availability. The allocation
process should endeavour to take account of customary needs and
not simply reflect the current level of catch, which may have
been constrained by a lack of abundance.
- The setting of a TAC and allocative decisions in a general context
may impact on economic investment in terms of upgrading of plant
and fleet structure. Downstream impacts may result as a consequence
of allocative decisions made in respect of both recreational and
commercial stakeholders. In addition to the commercial harvesting
and processing sector a significant number of service industries
are linked to the fishing industry, including charter operators,
sale of fishing gear, repair, and transport related services.
Decisions may also impact on particular communities where the
fishing and fishing related services provide a significant contribution
to a local economy. Information on these matters, if available,
is to be taken into account.
Recreational Allowance
- In some cases estimates of recreational catches of the new
species are available from recreational surveys. Where available,
these estimates have been included and used as the basis for setting
the recreational allowance. Where estimates are not available
but there is known to be recreational catch, a nominal allowance
has been made. For species and stocks where there is no or negligible
recreational catch, no allowance is proposed. In all instances
the allowance proposed also takes into account the factors identified
above. MFish also notes that recreational fishers are not accorded
a priority in the allocation of the TAC. The recreational allowance
does not need to fully satisfy estimated recreational requirements.
- Where appropriate, bag limits may need to be set for the stocks
introduced to the QMS. The purpose of a bag limit is to ensure
that the recreational allowance is not exceeded. The bag limit
may also act as a means by which the sustainability of the fishery
is ensured. For a number of stocks introduced under this process
there is no current bag limit. The need to set a bag limit may
be averted in the short term where the recreational allowance
is based not on current catch but takes into future recreational
interests in the resource. In the immediate term it may be unlikely
that the recreational allowance for some stocks will be exceeded
even in the absence of a bag limit.
Mäori Customary Non-Commercial Allowance
- There are no quantitative estimates of the size of Mäori
customary non-commercial catch for any of the stocks. Where estimates
of customary catch of the new species is available from permits
or authorisations under customary fishing regulations that information
has been taken in to account. However, as noted above, the current
level of catch may not entirely reflect the importance of the
resource to customary fishers. Where estimates are not available
but there is known to be customary catch, a nominal allowance
has been made. In some instances the customary interest is considered
to be greater than the level of recreational catch and that is
reflected in the respective allowances. For stocks of importance
to customary Mäori the allowance is based on the level of
the recreational catch. For species and stocks where there is
some catch but the stock is not considered of importance to customary
Mäori then the allowance is based on half the recreational
catch. Where there is no catch and negligible if any interest
in the stock, such as for deepwater species, no explicit allowance
is proposed. In all instances the allowance proposed also takes
into account the factors identified above. MFish notes that the
allowance made for customary fishers is not intended to act as
a constraint of the level of catch taken.
All
Other Fishing Related Mortality
- No quantitative information is available to assess the level
of all other fishing related mortality applicable to the new species
or to attribute such mortality to a particular sector group. However,
some level of mortality may occur as a result of the particular
method use to exploit a stock. Where appropriate MFish proposes
to make an allowance for all other mortality to a stock caused
by fishing. In addition MFish proposes that the allowance for
other fishing related mortality be deducted from the allowance
for a particular sector that is primarily responsible for the
mortality.
TOP
Total
Allowable Commercial Catch
- The TACC for the new species has been proposed on the basis
of the criteria used to determine the TAC in the absence of stock
assessment information. The criteria applied are:
- Existing CLs or CCLs; or
- Average catch based on a stable or developing fishery classification;
or
- Potential development opportunity.
- Where sustainability concerns exist as to the level of total
landings, the TACC has been modified appropriately. In all instances
the TACC proposed also takes into account the generic factors
identified above.
- The Act provides that under specific circumstances foreign licensed
access to a stock is to be provided within the TACC set for a
stock. Foreign access is to be provided to that portion of the
TACC held by the Crown where the quota is not tendered off and
the ACE remains unsold after the Crown has offered the ACE for
sale to persons entitled to own quota. MFish intends to undertake
formal tenders for any quota and ACE allocated to it post introduction
of these species into the QMS. Where a TACC is set in excess of
the current commercial catch there is the potential in some stocks
for some ACE to remain unsold as from 1 October 2003. Technically
this could be made available to foreign vessels through the Minster
establishing a foreign allowable catch under s 81 of the Act.
Practically, there may be limited interest in fishing small quantities
of fish available to foreign vessels. Other Management Controls.
- The TAC is invariably supported by a number of management controls
that collectively ensure the sustainability of the stock and provide
for utilisation within accepted limits. The Act explicitly provides
for the setting of sustainability measures relating to size limits,
biological state, fishing seasons, methods restrictions, closed
areas, plus measures such as overfishing thresholds and bag limits.
- The species-specific papers set out those measures that currently
apply which are being retained as part of the management framework
for the stock under the QMS. The general intent is for the species-specific
papers not to undertake a widescale review of all existing measures
or potential measures that could be adopted. The ideal opportunity
to discuss such issues will arise when quota is taken up by fishers
and potentially within the context of development of a fisheries
plan. However, where necessary, consideration of appropriate measures,
such as method restrictions, is outlined.
Setting
of Deemed Values and Overfishing Thresholds
- A separate section in this document outlines the general principles
relating to the setting of interim and annual deemed values for
QMS stocks. The section contains information from a port price
survey and sets out the interim and annual deemed values proposed
for each of the species to be introduced in the current process.
- The section also contains information about the setting of overfishing
thresholds and tolerance levels for the stocks to be introduced
to the QMS on 1 October 2004.
Cost
Recovery
- The Act provides a framework where certain costs of the Crown
in delivering fisheries services or conservation services may
be recovered from the commercial fishing industry. In summary
these costs arise from research activities, administration of
the QMS, enforcement activities delivered by (or through) MFish
or in respect of conservation services delivered by the Department
of Conservation. The services to be delivered in each of these
areas are subject to annual consultation with stakeholders.
- Having determined that some of the Crown’s costs can be
recovered the allocation of these costs is determined by the Fisheries
(Cost Recovery) Rules 2001. In general the costs of research are
targeted towards the fishery (or group of fisheries) to which
specific research programmes relate. The costs of QMS administration
and enforcement are generally targeted to quota holders. Therefore,
upon introduction into the QMS, commercial quota owners will face
some proportionate costs in these areas.
- In a more general sense, cost recovery is a key fisheries management
tool. The intent of commercial fishers meeting the full costs
associated with access and property rights is to encourage rational
business decisions that provide for the good husbandry of the
resource. Following introduction to the QMS, fishers will have
the opportunity to consider future management options including
potential trade-offs that may be available between further research
(with associated costs) and increased catch levels.
Regulatory
Framework
- The intent of the quota management system is to provide a broad
management framework that provides the opportunity to maximise
efficient utilisation of fishing resources while ensuring sustainability.
The introduction of a species into the QMS requires that a TAC
and other management controls are set in order to ensure overall
sustainability of the species. Certain controls in place for these
species will no longer be required following implementation of
QMS management measures. The review of regulations prior to introduction
will ensure that regulations inconsistent with the QMS management
regime are removed.
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