BEYOND SUSTAINABILITY - Looking Forward and Lessons Learned. The New Zealand Experience
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1 BEYOND SUSTAINABILITY - Looking Forward and Lessons Learned The New Zealand Experience
2 Management of Rock Lobster Fisheries In New Zealand * QMS operates on quota shares and ACE Annual Catch Entitlement * 100 million shares are allocated for each quota management area * Quota holdings are expressed in shares * Quota shares have a weight equivalent * Quota shares generate ACE - which is expressed in kilograms * When quota changes it is the weight equivalent that changes * It is ACE that is required to go fishing
3 Minister s Responsibility * Directed by the Fisheries Act 1986: - Utilisation of fisheries resources while ensuring sustainability * The Minister must: - Maintain a fishery at or above a sustainable level; or - Put in place steps to restore a fishery to a sustainable level over a reasonable time
4 New Zealand Organisation * 9 commercial Quota Management Areas * All have an autonomous organisation that holds the mandate to represent the industry in that QMA * Collectively comprise the New Zealand Rock Lobster Industry Council Ltd * NZ RLIC acts as the umbrella organisation - primarily involved in generic and national issues * Establishes pathways at local and national levels for interaction between industry and government
5 The NZ Situation * QMS has been used as the tool to provide industry with management options * Management Procedures containing harvest control rules in place for almost all quota management areas * Tailored to each QMA * But commonality between all: - Accepted by Minister - Operated annually - Driven by CPUE
6 NZ Industry Participants * Quota Share Owners - Fishing - Non Fishing - Investors - Ex Fishermen * ACE Fishermen - Supported - Unsupported * Processors/Exporters
7 Quota Share Owners - Fishing * Hold a largely secure capital base * Almost all purchase additional ACE annually * Commonly enter into tonne for tonne deals with processors * Have negotiating power * Potential to influence ACE prices * Ability to seek and sell at best prices
8 Quota Share Owners - Non Fishing Investors * Aiming for best Return On Investment (ROI) ~ 6-8% * Capital gain possible through: - Increase in TACC (weight value of shares) - Increase in ACE trading price - Increase in share trading price
9 Quota Share Owners - Non Fishing Ex Fishermen * Some look for maximum ROI * Others take a benevolent approach: - discounted ACE price to new entrants * Great majority of quota shares held by family company or trust - likely to support next generation of family through cheaper ACE deals
10 ACE Fishermen Supported * Assured access to ACE from year to year * More benevolent ACE deals Unsupported * Reliant on access to ACE on an annual basis to remain in the fishery * Subject to market rates for ACE * Limited capital base * Little negotiating power * The most economically exposed sector * However, they can and do have a profitable and secure future through attaining long- term agreements with ACE owners
11 Processors/Exporters * Most own quota shares directly or through shareholding companies * Have large capital base * Financial ability to secure ACE from non fishing quota share owners * Potential for large influence on ACE prices * Ability to substantially increase throughput via tonne for tonne deals * Ability to finance private ACE transactions for fishermen * Payment/repayment of ACE recovered from beach price
12 Opportunity To Determine Direction * Once Minister s responsibility is achieved the opportunity to determine the direction of the industry is present: * Focus on Money fish * New generation management strategies * MEY? * Advocacy for removal of unnecessary restrictions
13 Example of Changes In Behaviour * Targeting of specific grades * Movement of effort * Targeting specific times of the year to coincide with market demands * Increased stewardship * Intolerance of non- compliance * Reduction in costs of fishing * Improved profitability * Increased confidence - re- investment in quota shares, new vessels etc * Increase in asset values
14 Effect On Industry of Increased Asset Values * Does this lead to more unity in the industry? * Certainly should lead to more involvement * Value of assets means a change in approach by the industry * Who should have the most say over the asset? * Who should be leading? Govt, scientists or industry?
15 But Achieving Sustainability Should Work In Your Favour. Yes/No Unfortunately that is not always the case * Provides an opportunity for increased non- commercial catch if this is not constrained * Removes the imperative for the government to actively manage non- commercial fishing * Provides an opportunity for the introduction of marine protected areas without affecting sustainability
16 Risks Cont. * Potential to become too risk adverse and backward- looking * Results in low exploitation rate * Under utilisation * Increase in biomass of undesirable sizes in competition with desirable sizes
17 Risks Cont. Can too much confidence be a bad thing? * Confidence in the state of the fishery can result in: * Competition for ACE payment of high prices * Expectation that there is no price ceiling in the market that beach prices will continue to rise * Expectation of being able to land when prices are at their peak * Challenges for exporters continuity to market ability to handle influxes maintenance of price expectations
18 Compliance * Increased abundance and value results in less non - compliance from the commercial sector * Simply, they have too much to lose and little to gain * High value product can encourage illegal non- commercial activity * This comes at a cost to all legitimate users
19 Ministry for Primary Industries Point of View * The government will always be involved where they see a risk to sustainability * Sustainability provides for overall social, economic and cultural benefits in the long term What Next? * Reducing uncertainty of non- commercial data that can put sustainability at risk, but also allow for better management * Improving the process for allocation between sectors * Gaining better understanding of localised abundance concerns * Fine- scale data collection development
20 The Case for Professional Representation Fishermen Want to Fish * There is more to do now than before sustainability was achieved * The context in which fishing occurs is always changing * There is a whole bureaucracy around fishing * Maintenance and improvement of the commercial share
21 It is what you can do to contribute to the future that makes the difference. THANK YOU
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