Address to the Aquaculture Strategic Development Forum

"Aquaculture Under a Reformed Legislative Framework"

Renouf Foyer, Michael Fowler Centre, Wellington.

Kia ora tätou

Let me first join with my colleague the Honourable Jim Anderton and our host John Glaister in welcoming you all here today for this important gathering.

Without doubt, all of you at this table are key players in realising the potential for aquaculture development in New Zealand.

This forum, in response to the Aquaculture Council’s initiative to develop a sector strategy, signals a new mode of involvement for the government in this sector, flowing from the broader approach taken by the government and promoted by Minister Anderton, Trade and Enterprise New Zealand, and the Ministry of Economic Development.

These moves from both industry and government have been sparked and enabled by the completion of the reform of the regulatory environment for aquaculture.

The reforms have put in place a new framework that provides a platform for the future growth and development of this industry, and it is this significant achievement that I will focus on in my remarks here today.

New Zealand aquaculture is entering a new era. The passing of the aquaculture legislation at the end of 2004 brought to a close a long and difficult process of reform.

When this government came to power, aquaculture was in a state of crisis. We listened to your concerns. We have all worked hard to achieve an outcome that has addressed the major issues. The environment for aquaculture development today is more certain and predictable, and the stage is set for a period of growth and development in the sector.

The drivers behind the reforms are well known to this group. The rapid expansion of demand for coastal space suitable for aquaculture in the late 1990s produced an avalanche of applications for resource consents and marine farming permits.

The sheer volume of proposals – for ten times the area of the existing aquaculture estate – overwhelmed existing administrative systems, and highlighted serious issues with the allocation of coastal space for aquaculture.

The dual permit regime was time consuming, costly, and uncertain for applicants, the authorities, and the general public with concerns about coastal development.

The individual consideration of proposals and first-come-first-served basis for allocation did not promote efficiency, or a long-term view of the development of aquaculture or the use of coastal space in general.

Applicants were having their plans frustrated, and regional authorities, coastal communities, other users of coastal space, and the Ministry of Fisheries, were all under pressure.

The new regime promotes a longer-term approach to aquaculture development planning. It provides for the designation of areas of coastal space as aquaculture management areas in advance of development proposals, through the regional council planning process.

As in land use planning, value conflicts and disagreements over the appropriate use of coastal space can be sorted out in a consultative process that looks at the overall distribution of development and its impacts.

This type of process can be time consuming, but under the new regime it can be carried out through the regular cyclical preparation and review of regional coastal plans, and thereby avoid tying up each development proposal in a public process.

Once the AMAs have been planned, development can proceed in those areas as of right, providing an environment of much greater certainty for investors. With pre-planned AMAs, allocation of space can proceed in a rational manner to those who are able to utilise it most efficiently.

The old requirement for both a resource consent and a marine farm permit is now a thing of the past, acknowledging of course that we still have around two hundred applications being processed under the old rules.

Under the new regime the regional authorities alone will be responsible for permitting of aquaculture.

Coastal permits will be more secure under the new regime, with a right for existing permit holders to have their applications for renewal considered before competing interests.

The Ministry of Fisheries will still have a role in the assessment of undue adverse effects of AMA proposals on existing fisheries rights holders, but this takes place early in the planning process.

The Ministry no longer has a role in individual aquaculture permit decisions. This reduces the complexity and uncertainty faced by applicants.

Of course we cannot clearly see the future or be expected to plan perfectly for it. The private plan change process provided for under the reforms allows flexibility for developer initiated AMAs, and this may be particularly relevant in areas of low demand for space, or where aquaculture is new.

But reliance on this mechanism alone would soon negate many of the advantages of the new regime in terms of planning costs, case by case public processes, and trips to the Environment Court.

On the other hand, there is little point in regional authorities proposing lots of new AMAs if there is no interest from marine farmers in those areas. Whichever route is taken to AMA establishment, dialogue between councils and industry is vital.

I am very pleased to see the major regional authorities for aquaculture represented here today. This meeting is providing a key opportunity to forge some of these essential links, and to begin this new phase of aquaculture development in New Zealand with our eyes open.

So, we have provided the framework and the tools for more rational and effective allocation and management of aquaculture on a regional basis, but how those tools are used by you will determine whether the potential advantages are attained.

I certainly expect that, in those regions that can support aquaculture expansion, new AMAs will be established over the next few years, and the framework will be tested.

A further major achievement of the reforms was the settlement of contemporary Maori claims to commercial aquaculture space. This settlement covers all existing and potential claims arising from the allocation of coastal space for aquaculture since September 1992, as well as providing mechanisms to allocate a share of any new AMA space to coastal iwi.

This settlement addresses a gap in the 1992 Fisheries Settlement, and uses the same 20% share of newly allocated resources. Aquaculture was rightly described as the unfinished business of the 1992 Settlement.

The Claims Settlement Act commits the government to providing coastal iwi with the equivalent – in either coastal space allocations or financial compensation – of twenty per cent of aquaculture space in the coastal marine area permitted since 21 September 1992.

It sets a 10 year time frame for the government to achieve this for the period from that date to the present, and provides for 20% of all new space allocated from now on, to flow to iwi.

This new space will be provided as authorisations to apply for coastal permits, and all the standard rules relating to permit conditions will apply to iwi in the same way as to any other permit holder.

The settlement removes the uncertainty that resulted from the existence of unresolved grievances, and allows the industry to move into the future secure from any threat of litigation or unexpected government action to address claims issues.

It also implies that Maori will, collectively, become major stakeholders in aquaculture, as they have done in the wider fisheries industry.

This offers new potential for both competition and cooperation in the industry, more possibilities for innovation, and for regional development.

Maori participation also offers unique marketing opportunities that are proving successful in the wider seafood sector. In his address to you later this morning, Shane Jones will likely offer his perspective on the possible futures for Maori in the sector.

Together we have achieved significant progress with the reforms, with stakeholder participation in the discussion leading to many improvements.

We have done the hard work, key uncertainties have been resolved, and new mechanisms in place for a more efficient administration and development of aquaculture.

We now need to work together to make that development happen. Now is the time to start on this new phase.

Jim Anderton has said a key driver for long-term economic growth is innovation.

The aquaculture industry has proved to be able innovators in the past, with the development of the mussel and oyster sectors being entirely industry led.

New Zealanders are able innovators, but New Zealand is a small player in world markets. What others achieve through scale economies and proximity to markets, we must do through innovation and creativity, collaborating locally and in global markets.
Rather than concentrating on growth in volumes of commodities, our industries need increasingly to focus on value adding to meet known consumer preferences, and the creation of new niche products that match international trends in taste and value.

To achieve sustainable growth through such strategies will require cooperation.

You have proved you can work together effectively on issues such as shellfish sanitation and the generic marketing of mussels.

We have proven capability for collaboration in this sector, but this needs to be developed further. It needs to extend across all stakeholders here today to move effectively into an innovative and prosperous future for aquaculture.

We have a fantastic environment for growing healthy seafood that must be protected, and we have a renewed statutory framework. Now we need to pull all these elements together to drive the sector into a new era of growth and prosperity.

Of course we need to acknowledge the current difficult economic climate for exporters as a factor that will impact on growth in the sector. But this won’t last forever and signs are that these conditions may ease in the relatively short term.

However, these conditions have meant that some aquaculture development has not gone ahead at the pace it might have. Large areas of new space have been made available recently from applications lodged before the moratorium.

We are looking at two to three times the area of the pre-moratorium estate in new space. So there is plenty to be going on with even before new AMAs are created.

I am here to assure you that, as a government, we are still listening to your concerns, and we are still committed to removing obstacles and providing opportunities for development and growth.

What we are not here to do, is to talk about what might have been in relation to the aquaculture reforms. We must all move forward with an acceptance of the new framework as a given.

No process of change ever gives everyone everything they might want, and seldom gives any one party that. But what we have, vastly improves on what has gone before, and I believe it will provide a solid basis for a prosperous future for aquaculture in New Zealand.

I am most encouraged by this forum. It is good to see the broad representation here, and I am particularly pleased that the representatives from the regional authorities were able to come today.

It is vitally important for industry and the councils to understand each other’s views and needs, and for both to acknowledge and work with iwi interests in their areas.

Aquaculture could generate new jobs in many regional areas, and growth in the industry may provide an important economic driver in rural coastal areas where opportunities are needed most.

This forum is fine example of how the government can facilitate the process of pulling together the threads, and forging the links between the individuals and organisations that can make aquaculture a continuing success story for the New Zealand economy.

I am sure today will set a precedent and a benchmark for future cooperation among all the parties here.

I commend your efforts here today and wish you well in them. I regret I am unable to stay for the whole forum due to other pressing commitments, but you have the answers between you, and you are in capable hands.

Thank you.