2006/07 Financial review of the Ministry of Fisheries

Transcription

1 2006/07 Financial review of the Ministry of Fisheries Report of the Primary Production Committee Contents Recommendation 2 Introduction 2 Relationships with stakeholders 2 Environmental best practice 3 Fisheries allocation 3 Fisheries research 4 Aquaculture 4 Scampi settlements 5 Staffing 5 Conclusion 6 Appendix 7

2 Ministry of Fisheries Recommendation The Primary Production Committee has conducted the financial review of the 2006/07 performance and current operations of the Ministry of Fisheries and recommends that the House take note of its report. Introduction The ministry aims to ensure that New Zealand obtains economic value from the sustainable use of its fisheries resources, and to protect the aquatic environment. In 2006/07 the ministry continued to implement its fisheries management strategy, which involves strengthening the leadership role of the ministry, enhancing participation in fisheries management by stakeholders and Māori, improving the environmental performance of the fisheries sector, and promoting objective-based fisheries management. Objective-based management The ministry continues to develop objective-based management plans for significant New Zealand fisheries. These plans will set out the objectives for specific fisheries, and allow a transparent assessment of how well the existing management framework is working. The ministry and stakeholders may propose management options for these fisheries, which must meet the standards set by the Government. We understand that the first stages of these plans are nearly complete. Cost recovery review In 2006 the Government announced a review of the cost recovery rules and we were interested in its progress to date. We understand that a joint working group has been established and is drafting a report on options for new regulations for the calculation of cost recovery levies. The working group was planning to report to the Minister in late Relationships with stakeholders We welcome the ministry s frankness when it described its relationship with fishing interests as at one of its lowest points. The industry is operating in adverse economic circumstances, including reduced quotas, a rigorous cost-recovery regime, high interest rates, and a high New Zealand dollar. These factors, compounded with the contentious shared fisheries and precautionary approach initiatives, have contributed to difficult relationships with the ministry. Despite these difficulties the ministry tells us that it consults widely with the sector on a wide range of policy matters. It also consults the sector on the ministry s statement of corporate intent and operating plans. We are concerned that relationships are poor since good communications and relationships with fishers commercial, customary, and recreational are essential in helping gauge the 2

3 health of the fishery, managing the marine environment, and in combating illegal behaviour at sea. We trust that the ministry will work hard over the next 12 months to rebuild industry relationships. Environmental best practice We were told that the fisheries quota management system is accepted internationally as best practice for managing fish stocks efficiently. However, the ministry claims that New Zealand s environmental management system does not represent best practice by international standards. We asked whether best practice in effect meant raising environmental thresholds so high that it could threaten the existing quota management system. The ministry explained that best practice environmental standards do not necessarily equate with the lowest limit possible or the most stringent controls, but rather to limits based on the best available information and confidently managing the impacts of the fishing sector on the marine ecosystem. We are aware of the difficult of balancing environmental considerations against the integrity of the quota management system. We understand that the ministry is working closely with the sector to develop standards for sea lion and sea bird by-catch. The ministry believes that technology and smart fishing can reduce the number of sea mammals and sea birds caught in fishing activities. We welcome all efforts made by the ministry and the industry to reduce sea mammal and sea bird by-catch. Maui and Hector dolphins The ministry and the Department of Conservation, each under their respective legislation, are considering public submissions to a draft threat management plan regarding Hector s dolphins and Maui s dolphins. We understand that sparse data has been collected on the mortality among these dolphins particularly resulting from disease, set-netting, and trawling. However, we heard that data is not available to determine what mortality rate will maintain these species. We are concerned with the accuracy of the data and decisions that may be made based on this information. We are aware that 2,500 submissions have been made on the draft discussion document, and we sought an assurance from the ministry that they would be considered carefully. The ministry told us that it will report to the Minister on the volume of submissions received, and it is reconsidering its timetable. Fisheries allocation We were told that the Minister has received advice from the Crown Law Office and the Ministry of Foreign Affairs and Trade that the current fisheries legislation does not meet the international standard that would allow a precautionary approach to the allocation of fisheries quotas, and that the ministry may be exposed to legal challenge for decisions made on the basis of the precautionary approach. The Government had submitted a bill amending section 10 of the Fisheries Act 1996, which is intended to reflect the precautionary approach and remove the current ambiguity in the Act. We recently considered the Fisheries Act 1996 Amendment Bill and we note that the Minister has recently made allocation decisions under section 10 of the Fisheries Act 1996 on the basis of a precautionary approach. In the light of this, we are interested to see if the Minister still sees it necessary to continue to pursue a legislative change in this area. 3

4 Shared fisheries In October 2006 the ministry released a public consultation document, Shared Fisheries, to address perceived uncertainty about the framework for allocating annual catch allowances of popular recreational fish species between the amateur, customary, and commercial sectors. We understand that no consensus was reached on the proposals, and that the ministry has now deferred consideration of further policy reforms on shared fisheries. It is expected that the ministry will report to Cabinet again in July 2008 with recommendations for advancing shared fisheries policy reforms, and another round of consultation may commence after that. The ministry is considering expanding its research to better estimate the extent of the amateur fishing catch to support any recommendations to Cabinet. It is also examining ways to formally encourage catch reporting by charter boat operators. We look forward to the results of this process with interest. Fisheries research The ministry acknowledged that approximately $3 million worth of research money has been consistently carried over from financial year to financial year over recent times. We were told that this is in part due to research taking more than one year to complete even though it may be allocated within a particular financial year. To ensure that in future research money is used appropriately and in a timely manner, the ministry has established a two-tier allocation system. Tier one research projects have the highest funding priority and decisions about their programmes are made quickly, while tier two projects are funded from remaining resources. The ministry also told us that fisheries research is expensive to conduct, and the ministry, even with research levies, does not have the capability to conduct as extensive fisheries research as it would like. Furthermore, even if this were possible, there will always be a high degree of uncertainty in measuring fish stock health. We appreciate this but emphasise that without an increasing commitment to credible and consistent research the ministry cannot expect to manage this important resource in a sustainable manner. Aquaculture The aquaculture industry has been identified by the Government as a priority industry for growth, with a goal of it becoming a sustainable billion-dollar industry by We were surprised when the ministry told us that, despite this priority, the potential for the industry to reach this goal could very well be constrained unless a number of issues were resolved. Over the past year the ministry has led a cross-government team which has been working with regional authorities and stakeholders to support sustainable aquaculture development. In this way the ministry believes it is developing better relationships with the industry. The ministry has also employed additional staff to help clear the backlog of aquaculture permits, and to provide advice to the sector. At 1 November 2007 there were 31 outstanding applications covering 6,262 hectares of sea space. The ministry aim to complete all but one of these applications this financial year. We acknowledge the progress made in reducing the backlog of outstanding applications. 4

5 Legislation 2006/07 FINANCIAL REVIEW MINISTRY OF FISHERIES We asked when the promised legislation amending the aquaculture reforms was to be introduced into Parliament. The ministry told us that the bill is currently being drafted and that though it was originally intended to be only technical in nature, it may also address impediments to experimental and research aquaculture and difficulties marine farmers are experiencing with private plan changes. Māori aquaculture settlement Under the aquaculture reforms, the equivalent of 20 percent of existing space and 20 percent of future space was granted to Māori as a fisheries treaty settlement. However, there have been no new aquaculture management areas created since the reforms came into effect on 1 January 2005; to date Māori have not received any of their current or future space entitlement. The ministry have developed a valuation methodology and mechanisms to allow for the allocation of new aquaculture developments to Māori. Furthermore, from 1 January 2008 the Crown will be able to purchase aquaculture permits on a willing-buyer, willing-seller basis as an option to address this settlement. We were also assured that existing aquaculture permits will not be reallocated in order to meet Māori claims without the support of existing permit holders. We remain concerned about the pace of the development of the aquaculture industry, particularly in the light of the vision to create a billion dollar industry by 2025 and the importance of meeting settlement obligations. Scampi settlements Litigation arising from the scampi inquiry has continued. A High Court judgement in one case cleared the ministry of allegations of misfeasance and negligence, but found against the ministry in respect of a claim for breach of statutory duty. The judgment is under appeal. A second case has been settled. One final settlement with a remaining party has yet to be reached. We will continue to monitor the outcome of the scampi settlements. Staffing Some of us expressed concern that the number of staff within the ministry has increased significantly over the past five years. The ministry confirmed that it has increased its staffing levels from 327 to 452, largely due to the introduction of new initiatives in the ministry, such as research, compliance, and the development of fisheries plans. However, the staffing allocation schedules provided to us do not entirely support this claim as most increases in staff numbers have occurred in Wellington rather than in front line roles, such as those undertaken by fishery officers within the district offices. Fisheries observers The ministry employs approximately 55 fisheries observers on vessels to collect independent information on catch, biological samples, and other information for fisheries management, research, and compliance purposes. 5

6 The ministry trains two intakes per year to bolster the number of observers. Staff are employed on contract and spend about 55 to 60 days at sea. The fishing industry is levied to pay for the observers. We are pleased to see the build-up of a strong observer team as we are aware this has historically been difficult to achieve. Conclusion We note that at the time of our hearing of evidence the ministry was operating with an acting chief executive, and that the State Services Commissioner has now appointed Simon (Wayne) McNee as the chief executive officer from early

7 Appendix Approach to this financial review We met on 8 November and 6 December 2007, and 14 February 2008 to consider the financial review of the Ministry of Fisheries. Evidence was heard from the Ministry of Fisheries and advice was received from the Office of the Auditor-General. Committee members Hon David Carter (Chairperson) Dr Ashraf Choudhary (Deputy Chairperson) Nathan Guy Phil Heatley Hon Steve Maharey Hon Mita Ririnui Eric Roy Hon Dover Samuels Evidence and advice received Ministry of Fisheries, Annual Report, Ministry of Fisheries, Statement of Corporate Intent Office of the Auditor-General, Briefing on the Ministry of Fisheries, 8 November Response to written questions, 8 November Response to supplementary written questions, 27 November