Speech to Aquaculture New Zealand annual meeting

Kia ora koutou

Thank you for the opportunity to address your conference at what may well prove to be one of the most significant points in the history of the aquaculture industry in New Zealand.

I'd like to acknowledge Aquaculture New Zealand's role in hosting this important conference and the Cawthron Institute for your continuing support for the industry in general and this conference in particular.

I'd especially like to acknowledge and thank the aquaculture sector as a whole for the positive and constructive approach it has brought and continues to bring to solving the not inconsiderable issues of aquaculture management.

By working together, I am confident we will get a regime in place that enables the development of the industry towards achieving its $1 billion goal while protecting the environment and recognising the interests of other users of our coastal areas.

Today I am very pleased to announce the release of the report of the Aquaculture Technical Advisory Group for consultation.

I would like to particularly acknowledge the sterling work of the group under the astute chairmanship of Sir Doug Kidd.

You will see that they have done a comprehensive job in a very tight timeframe.

It was only in August that the group began developing independent proposals for Ministers on aquaculture reform.

The government took this step because it was concerned that the complexity, cost and uncertainty of the current regime, along with poor incentives for development, were impeding aquaculture growth.

No new space has been created under the 2004 reforms and it was unlikely that any new space would be created for several more years.

The ability to research and innovate was being stifled by inflexible rules that limited the ability to advance new technologies and higher-value species.

Because aquaculture is such a complex area with divergent views, the government was keen to get detailed advice from a range of practitioners and industry representatives.

The advisory group's key recommendation is to remove regulatory barriers to aquaculture by lifting the prohibition on aquaculture outside Aquaculture Management Areas.

This means new applications for new aquaculture consents could be received from "day one" of the new regime, and gives central government a strengthened role.

It includes a lead Minister and lead agency for aquaculture, and central government interventions. 

Cabinet has not yet considered the report or made any final decisions on aquaculture reform. 

However, my colleagues Gerry Brownlee and Nick Smith and I believe the report's proposals set a good foundation for moving forward.  

Aquaculture has suffered from the lack of a lead Minister and agency - the advisory group says there are too many cooks and no recipe. 

The group proposes appointment of a Minister responsible for Aquaculture and establishment of an Aquaculture Agency within the Ministry of Fisheries to provide policy direction through an Aquaculture Development Strategy; to develop national standards; and to support implementation. 

The recommended approach would see aquaculture planning continue to take place under the RMA coastal planning framework, in order to ensure effective integration with other uses, activities and values.

Ministers support in principle the suggested return to a more flexible approach to planning by: 

• Removing the "prohibition" on aquaculture and use flexible zoning
• Providing resources to support planning through an Aquaculture Fund
• Simplifying and streamlining the planning process.

The group proposes to enhance coastal permits for aquaculture by:

• Increasing certainty to encourage investment
• Simplifying and streamlining the consenting process, including consent renewal

I am particularly interested in your feedback on whether these proposals will support investment in the industry.

Mindful of the need to ensure effective allocation of space for aquaculture, the report recommends the full set of RMA planning tools be used to allocate space. 

This includes providing alternatives to "first in, first served" for managing high demand. 

The advisory group proposes increasing the resources available for enabling aquaculture development by establishing an aquaculture fund. 

It suggests the fund be maintained through an aquaculture levy payable by marine farmers. 

There is also a recommended redesign of the Undue Adverse Effects test on fishing to:

• Run the test parallel with the RMA
• Allow early agreements between marine farm applicants and fishers, and
• Allow early sharing of fisheries information to support aquaculture planning

Ministers were very clear in the terms of reference for the technical advisory group that the Maori Commercial Aquaculture Settlement must be upheld. 

The group supports this and its proposals ensure the settlement - which provides for 20% of all new aquaculture space to be allocated to Maori - will be delivered under the new regime. 

We are also interested in wider views and further ideas on how the regime could or should be amended. 

In particular, we would like to see proposals on how to deliver the settlement through the revised model proposed by the advisory group. 

We also want your ideas on how to ensure the undue adverse effects test appropriately recognises fishing rights, but does not act as a roadblock to progress or lead to ‘rent seeking' behaviour. 

Improved catch effort reporting may also better support consideration of the effect of aquaculture on fishing.

If we know accurately where fishers fish, we can better manage the impact on them. 

The Government now seeks your feedback on the future aquaculture regime.

Your input will be given serious consideration in settling the parameters we need to help the industry succeed for New Zealand.

Submissions close on 16 December. 

You can find more information on the Ministry of Fisheries' website. 

Tomorrow Wayne McNee will talk with you about Fisheries 2030, the Government's goal and plan of action for our fisheries and aquaculture.

In the foreword to that document I say this:

"The government has an overall goal to grow the New Zealand economy so we can all enjoy greater prosperity, security and opportunity.  I believe the fisheries sector can make a valuable contribution to that goal.  This can be achieved through improving the value of our seafood, whether cultured or captured wild, and through innovation and efficiency improvements."

That's where your industry comes in.

It's very encouraging that recently Ernst & Young estimated that the growth potential of aquaculture is somewhere between $1.7 billion and $2.2 billion a year by 2025 if:

• some basic business practices are followed;
• further water space is made available; and
• there's flexibility for farm conversions in some existing space.

You guys do the first thing - which I know the vast majority of you already do - and we'll support the other two.

Then we'll be up there with the strongest performers in terms of economic benefit for New Zealand Inc.

Last month the Ministry of Fisheries gave the final nod of approval for the 1783 hectare Wilson's Bay aquaculture area in the Firth of Thames.

I said publicly at the time that while this was welcome news, the problem was that it had taken nine years to get there, and there are still more hoops to jump through yet.

There is now more than 19,000 hectares of approved aquaculture space nation-wide, of which more than 8,000 is productive.

That's a start, but there's so much more potential.

Stakeholder Ministers intend to seek Cabinet approval for proposed aquaculture reforms early next year and to introduce a Bill in 2010.

So the time for your substantive say on what we do is now, and your final say will be at select committee.

I am confident that the outcomes of the process I have outlined to you today will be a much more effective aquaculture regime. 

It will recognise the need to expand opportunities without sacrificing the environmental and public character of our marine areas, and it will acknowledge the rights of all users of our coastal regions.

I believe this will be an exciting and prosperous journey for us all.

Thank you.