New Zealand: Background

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1 Overview New Zealand; backgrund New Zealand fisheries: key features Quta Management System Catch balancing system Cmmercial stakehlder rganisatins Future directins Lessn learned Resurces 1

2 New Zealand: Backgrund 2

3 Perspective! 3

4 New Zealand Fisheries; Key features Species cmmercially fished: 130 Current status infrmatin available n 65% f stcks 85% f these at r near target size Recreatinal fisheries: Estimated participatin: 31% f ppulatin Estimated annual take: 25,000 tnnes Managed by effrt cntrls Mari invlvement in fishing: Nn-cmmercial custmary fisheries management devlved t hapu Custmary take prvided fr: 4,800 t Iwi wn apprx 30% f cmmercial quta 4

5 Cmmercial Fisheries Ttal Catches: 441,000 tnnes Ttal quta value: $3.97 billin Fish Exprts: Apprx 90% f ttal prductin 2007 Value: NZ$ 1.3 billin Hki has MSC envirnmental certificatin; thers fisheries being assessed 1,316 fishing vessels 1,592 quta wners 229 fish prcessrs & traders 7,155 directly emplyed: Aquaculture species: mussels; ysters; salmn Direct subsidies: Nil 5

6 Fisheries issues (early 1980s) 6

7 Develpment f Quta Management System Part time fishers excluded Deepwater transferable enterprise allcatins QMS Implemented Initially 26 species; 156 stcks Initial Gvt buy-back f inshre catching rights (15,800 tnnes; NZ $42.5M) 7

8 Key Develpments since ITQs changed: kgs t shares Settlement f Mari fisheries claims Cst recvery implemented Strnger envirnmental prtectin prvisins Fisheries Amendment Act Prvisin fr devlutin f fisheries services Lng-term and within-year rights separated; Annual Catch Entitlement (ACE) New mechanism fr managing fish bycatch in multi-species fisheries Majr increase in # species in QMS species; 632 stcks in QMS 8

9 Key features: Quta Management System Quta Management Areas fr species based n cmbinatin f Fishery Management Areas ITQs in perpetuity ITQ allcatin based n catch histry (with cmprehensive appeal prvisins) Appeal prvisins later reduced Quta cnslidatin limits: 10 35% 2009: Nearly all majr cmmercial fisheries in QMS 9

10 Hw it wrks TAC set fr each species in each QMA (i.e. 632 TACs) based n maintaining stcks at B MSY A Ttal Allwable Cmmercial Catch (TACC) set after allwing fr recreatinal and nn-cmmercial custmary fishers, and ther surces f fisheries related mrtality ITQ allcated as a share f the TACC (100 millin shares in each fish stck) Industry-wned cmpany perates quta registry ( ) ITQ generates annual catch entitlement (ACE) (in kgs) Open ITQ and ACE markets Gvernment guarantee Cnfidence f bankers ITQ wners pay gvernment management csts (apprx NZ$30M per year) 10

11 Hw it wrks (2) Cmmercial fishers must have fishing permit and registered fishing vessel Cmmercial fishers must recrd & reprt catch & land fish t licensed fish receiver (dcumentary prduce flw cntrl system) Catch must be cvered by ACE r pay a deemed value Fishers pay refundable deemed value t gvernment fr ver-catch; prvides incentive t cver catch with ACE Failure t recrd/reprt catch r pay deemed value is majr ffence with dracnian penalties Input cntrls t deal with envirnmental and allcatin externalities 11

12 Example f Deemed Values 12

13 Catch Shares Encurage Cperatin Cmmn lng-term interest Develpment f Cmmercial Stakehlder Organisatins (CSOs) CSOs undertake variety f activities: Represent quta wners Cntract scientists, Research surveys Fisheries management Manage vluntary agreements e.g.: Envirnmental cdes f practice; Area management f TACCs Develping mitigatin measures Establishing benthic prtectin areas ver 30% f EEZ Applying fr envirnmental certificatin Sme cmpanies nw catching ACE n behalf f thers Imprved cperatin between CSOs and Gvernment 13

14 Future Directins Changing rles f gvernment and rights hlders Gvernment gvernance Rights hlders management Cllective management arrangements Enabling rights hlders t manage and be held accuntable Increasing envirnmental standards / perfrmance changing scietal values market requirements Enhanced transparency and accuntability Market driven catch dcumentatin and independent mnitring systems 14

15 Lessns learned 15

16 And if we culd d it all again: 16

17 Resurces and Bjrn Hersug 2002, Unfinished business; New Zealand s experience with rights-based fisheries management Lck, Kelly and Stefan Leslie "New Zealand's Quta Management System: A Histry f the First 20 Years," Mtu Wrking Paper new_zealands_quta_management_system_a_histry_f_the_first_20_years Kerr, Suzi; Richard Newell and James Sanchiric "Evaluating the New Zealand Individual Transferable Quta Market fr Fisheries Management" in Tradeable Permits: plicy evaluatin, design and refrm, OECD, Ed. Paris. Paper prepared fr OECD wrkshp Ex pst evaluatin f tradable permit regimes, Paris, January Newell, Richard G "Maximising Value in Multi-species Fisheries," Resurces fr the Future, Washingtn DC and New Zealand Ministry fr Fisheries, Wellingtn. Cnnr, R Initial allcatin f Individual Transferable Quta in New Zealand Fisheries, In Shttn, R. (ed) Case studies n the allcatin f transferable quta rights in fisheries. FAO Fisheries Technical Paper N FAO, Rme. Cnnr R, Changes in fleet capacity and wnership f harvesting rights in New Zealand fisheries, in Shttn, R. (ed). Case studies n the effects f transferable fishing rights n fleet capacity and cncentratin f quta wnership. FAO Technical Paper N FAO Rme. 17

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