Government Fast Tracks Cost Recovery Working Group

Fisheries Minister John Luxton and Finance Minister Bill English today announced the early establishment of a working party to consider the revamp of the Fisheries Cost Recovery regime.

The working group is in response to a Select Committee Inquiry in 1996, an independent review of the Fisheries Act in 1998 and a Treasury review of cost recovery in the private sector completed in December last year.

"There have been problems with the cost recovery regime since its inception in 1994. The Government is committed to putting in place a regime that is considered fair and equitable by all parties," said Mr English.

"I understand the frustrations of the industry and I am confident the framework which has been designed in consultation with the industry will lead to a satisfactory conclusion," said Mr Luxton.

Treasury, industry representatives and Ministry of Fisheries staff will work together in the next few months to put in place a workable solution.

"The fishing industry is an important part of the New Zealand economy. It is therefore important that every effort is made to ensure that the industrys' progress is not hindered. Fast tracking the working party is the first step in putting better regulations in place," the Ministers said

The first meeting to establish terms of reference is scheduled for later this week. The working party will report back to Government in time to allow the new regime to take effect before 1 October 1999.