Speech to Federation of Commercial Fishermen

Dunedin, 30 April 2009

 

Good morning and thank you for this opportunity to address you.

I hope you have an interesting and productive conference and annual meeting; it certainly looks like you have a full programme lined up.

I know that the fishing industry, and in fact all of New Zealand's productive sectors, are facing some very difficult and challenging times.

The global economic downturn arrived quickly and is being felt everywhere.

I know this is posing challenges for your industry, as one of New Zealand's most important export earners, and for your individual businesses.

Issues like difficulty in getting credit at reasonable terms, instability on foreign exchange markets affecting international trade and weak consumer demand in important export markets.

I would like to assure you that the Government supports you; we support your industry and we want to do what we can to create a positive and supportive environment for your businesses.

Your businesses and the industry you make up are important; you earn hundreds of millions of dollars every year in exports - foreign exchange that our economy relies on to pay for the imports we all enjoy.

You employ tens of thousands of people, on the water fishing, processing catch and in the many onshore support industries that provide services and supplies.  This is a vital part of the local economy in many regions.

Our fishing industry is in better shape than many around the world. Our quota management system combined with our careful fisheries management and environmental stewardship means our fish stocks are healthy.

We are going to make sure they stay that way.

Just this week the globally followed and respected business journal The Economist wrote that the fishing industries of EU countries "should learn from countries like New Zealand, where fishermen hold individual fishing rights that can be sold or leased to others.  The trading of rights has led to the creation of smaller, more efficient fleets.  Giving fishermen an asset with long-term value has also created peer pressure to fish sustainably."

Both on business and environmental levels this is a fine endorsement.

The countries The Economist was preaching to face some serious issues.  As they put it, "When fishermen want to catch more than scientists recommend they are seeking the right to cut their fingers off, one by one."

These countries have been managing their fisheries for economic benefit now and ignoring the future, not the least by encouraging over capacity in their fleets.

It gives me great pleasure to say that in the years to come we will still have healthy fisheries that can support a successful fishing industry supplying the world with top quality seafood.

Allowing for fishing now while ensuring there will be fisheries in years to come is the key responsibility of the Ministry of Fisheries and my main responsibility as Minister, but that is certainly not all we are doing.

Reducing costs for fishers

The Government is strongly focused on reducing costs for businesses and removing impediments to development in all of New Zealand's productive sectors.

As I have said you are one of the country's most important productive sectors. As your Minister I am working hard to help you as much as I can.

You're probably aware that every government department has met with Ministers for a line-by-line review as the first step in bringing government spending under control and responding to the downturn.

The Ministry of Fisheries has taken a full part in the review. They have fronted up and we have found some savings.  With the cost recovery regime in the fisheries sector, some of those savings will flow through to reduced cost recovery levies on quota owners in the near future.

Although the final cost recovery levies for next financial year have not yet been set, the estimated amount to be cost recovered from industry for 2009 - 2010 should be reduced by over $1 million.

This is not the end of the story.

It has been made abundantly clear throughout the budget process that government has to cut its cloth to fit the economic situation the country is in.

There is no money for large and costly new initiatives.  In fact we are in a position of having to find money to meet current commitments, trimming budgets and searching for greater efficiency.

What this means is that government departments are having to refocus on delivering core services and government priorities in the most efficient and effective way possible.  Departments need to do more with what they already receive and can no longer expect year-on-year funding increases.

Across government we need to find better ways of working with our productive industries; working together to get better outcomes and better management for less money.

Collaborative management - crayfish case study

There are good examples in the seafood sector where close collaboration is producing good outcomes and making progress on difficult issues.

The management of our rock lobster fisheries, in particular here in the southern Quota Management Areas, is an outstanding of local fishers coming together with government to deliver the best long term management possible.

Crayfishers here felt the pain of low crayfish population and decided to do something about it.  They worked with government to developing a plan and a management tool to guide the setting of catch limits over the long term. 

This meant more crays in the water and the certainty of more available for years to come.  Initially they took the pain of big catch reductions, but are now reaping the rewards of high abundance and catch increases.

The rock lobster industry in the Wellington and Wairarapa areas are now following suit.  They have developed a long-term plan and management tool for their areas, hoping to see the same sort of success in the lower North Island.

The first step in implementing the new management tool was voluntary catch reductions followed by a substantial TACC cut that was fully supported by industry.  This was a very responsible step and I congratulate everyone in CRAMAC 4 and the CRA 4 industry for taking it.

While it will make business tough in the short term, in the long run I'm sure it will deliver long term gains.

Despite some local challenges, the Gisborne crayfish industry is also working closely with Maori towards a similar long term management framework.

Catch limits

One of hardest parts of my job as Minister of Fisheries is adjusting catch limits.

We often don't have precise information on how many fish are in the water and can't tell for sure what will happen when catch limits are adjusted.  There can be strongly competing interests all wanting different things.

As Minister it makes my job that much easier when I can see that the best decision is laid out for me and when I can be sure my decision will be supported.

This sort of collaboration and planning isn't easy and there are a range of challenges that can come up.

But working through these challenges, working collaboratively with government and other groups who use and value our coastline and our fisheries, is certainly worth it.

Fishery plans

I have been cynical about the fisheries plans process in some areas; endless meetings to not impress me.

However, I acknowledge several very successful fishery plans are nearing their final stages, including a number of plans for inshore fisheries.

Foveaux oysters, north-west fin fish, Coromandel scallops, southern shellfish, orange roughy 3b and hoki and are all approaching completion and I am looking forward to seeing the final drafts.

There have been a range interested groups involved in developing these plans.  All have legitimate interests and concerns that the fishery planning forum has had to work through.

Developing these plans is an excellent achievement and I would like to thank and congratulate the people here today who have played a part in their development.

But it isn't just about doing more work together, it is vital that we work smarter and more efficiently together.

We will soon see a new approach to fisheries plans that takes into account the lessons we have learnt from the plans that have been formulated so far.

The new approach will see faster results and make fewer demands on stakeholders.

We want an "outcome," not just "activity." I have told officials that being busy with paperwork and meetings just doesn't cut it.

But the fundamentals of objectives-based fisheries planning will stay the same; planning for the future management of our fisheries is important and will continue.

Working smarter - less engagement, more results

I know in a number of areas the Ministry of Fisheries requires a huge amount of you in terms of time taken and the level of engagement required. 

This level of commitment can be disproportionate to outcomes and has led to some cumbersome and inefficient processes.

I want to see more efficient and effective processes and I am confident we will see them.

This does mean that there will be less consultation.

You will still be asked for input and that input is valued.  But, when you are asked for input you need to come prepared and make your input count.  I know you don't want to miss out.

Collaborative projects

When I first took up the fisheries portfolio five years ago, and again as Minister, I was approached by industry leaders who were concerned about the costs being imposed on the industry, by government and from other sources. They wanted to start work on doing something about it.

In response to these concerns I have supported the Ministry of Fisheries taking part in a series of collaborative projects to review current government programmes that industry has identified as imposing particularly high costs.

The aim of these projects is to identify opportunities to reduce costs, improve efficiency of the Ministry's delivery of services to the industry, review the effectiveness of some processes, and identify opportunities to further assist the industry's economic development.

There will be three collaborative projects initially.

These projects fit well with the Ministry of Fisheries' 2030 project which is about supporting the economic development of the industry, including improving the performance of the QMS.

The first project will look at observer services.  It will look to address what the observer programme needs to achieve, how it can decrease costs, and how these services can best be delivered.

The second will look at scientific research services.  It will address the process for how research projects are agreed, how research can be most effectively and efficiently undertaken and how it can be best finalised and taken through to implementation.

The third will look at the regime governing discarding at sea, addressing how the current regime operates and exploring options for improving practicality and effectiveness.

Meetings started this week and I am hopeful of seeing progress on these projects soon.

Inshore summer observer programme

Over the last summer, especially here in the South, the first ever summer observer programme in our inshore fisheries took place.

Overall the programme ran smoothly, with 963 sea days of observer coverage providing information that government has never had before.

While not everyone was happy about it we had a good level of support and cooperation, and I would like to thank everyone who took part.

Importantly, no Hector's dolphins were observed to have been caught by trawlers or set netters.

I realise that many of you will be saying of course not, we told you so.

Well, at least now we have verified, independent information to that affect.

The summer observer programme will be reviewed and fishers will be asked for their views as part of that.  I want to see what lessons can be learned before I make any decisions on whether or not to run a similar programme again.

There were a number of accidental deaths of protected seabirds and marine mammals observed during the programme.

This issue needs to be managed and I am looking to industry to be part of the solution.

You have not been given enough credit for the progress you have made over the last decade but I acknowledge it here and now.

I ask that fishers continue working with government and environmental NGOs to give the benefit of your expertise to develop solutions that are effective and practical on the water.

Court cases - dolphin TMP and kahawai

I know that the dolphin threat management plan and the closures that have been put in place are a source of great interest and concern to you.

Unfortunately there is not much I can say by way of an update today.  These issues will be examined by the Courts in the upcoming judicial review of the previous Minister's decisions and we will all have to wait and see what the outcome of this process is before we go any further.

We are also waiting for the Supreme Court's ruling on the management of kahawai fisheries.  This will be an important ruling; fundamental parts of how New Zealand manages inshore fisheries are being examined by the highest court in the land.

It is impossible to say what the outcome of this case will be; but we will examine the ruling closely and apply it as required.

Treaty Strategy

The Ministry of Fisheries has been holding hui with iwi and hapu around the country on the development of a strategy for the Crown to better meet its obligations under the Fisheries Deed of Settlement.

These settlement obligations cover a wide range of areas, providing input and participation in fisheries management, non-commercial customary fishing, commercial fishing, aquaculture, foreshore and seabed agreements and so on.

Many of the obligations do not currently sit well together and there is no overarching strategy to bring them together.  In fact in some areas there is real tension. 

A high profile example is the tensions between inshore commercial fishing, including Mäori owned fishing operations, and the establishment of mätaitai reserves.

I am aware that you have concerns about the potential of mätaitai reserves to impact on our inshore fisheries, especially the paua and rock lobster industries - two of our most valuable and important parts of New Zealand's regional economies. 

These concerns can become elevated when large applications are made over areas that include important fishing grounds.

However, there is a difference between applications and approved mataitai reserves.  The customary fishing regulations contain a number of criteria that must be met before I can approve a mätaitai reserve. 

Of importance to you commercially is that I must be satisfied that an application will not prevent people with a commercial interest in a species taking their quota entitlement or annual catch entitlement within the quota management area for that species.

These conditions ensure that customary rights can be expressed without preventing the continued operation of the commercial fishery, which after all now has a significant Maori presence at all levels.

Given Maori sit on all sides of the table as customary, recreational and commercial fishers, and those concerned for the environment, I have asked them to help with the tension.

Aquaculture

We are also working to improve the regime for aquaculture.  The aquaculture sector is currently saddled with a regulatory regime that is not working and is holding back growth and development.

The Government supports the aquaculture industry and its goal of becoming a $1 billion a year business.

We are going to make aggressive changes.

However, be assured the Government also supports our inshore fishing industry.

I recognise that in some areas new aquaculture space would have a real impact on the ability of local fishers to operate. 

Regulation review

Government is working to reduce the number of regulations placed on New Zealand businesses and I am strongly focused on reducing the regulatory burden in the fisheries sector.  There are currently a huge number of regulations, as I'm sure you are all only too well aware.

We want to make the regulatory framework more streamlined, user friendly and easier to understand.  We can't however compromise environmental protection and the gathering of information that is vital to the sustainable management if fisheries.

We also need to be aware that there is often someone who opposes the removal of regulations, especially area and method restrictions.  Often different parts of the seafood industry cannot agree on this sort of issue.

These differing perspectives and interests will be a challenge for any regulatory overhaul process, and it is a challenge that I am looking to industry to help overcome.  I don't want an overhaul to become mired in conflict.  After all, "we're from the Government and we're trying to help."

In conclusion

There are certainly a number of challenges, but I want you to know the government is supportive of your industry; we want to support you by creating an environment that will enable your businesses to prosper.

We know that our fisheries are well managed and sustainable and that they will be available for years to come.  This gives some certainty for the future.

Despite the ups and downs of the global economy we know there will be fish to catch and sell.  It isn't easy being a commercial fisherman; you need a lot of skill, knowledge and an aptitude for hard work.

By working together on management, by you providing the benefit of your knowledge and experience, and by government working with you to draw on both, we can arrive at management regimes that work for everyone.

Thank you for the invitation today, I hope you have a productive annual meeting, and I would like to wish you all the best out on the water for the remainder of the year.