Ministry of Fisheries

Transcription

1 C20 Ministry of Fisheries Annual Report for the year ended 30 June 2002 Presented to the House of Representatives pursuant to Section 39 of the Public Finance Act,

2 Contents Letter to Minister 1 Our Vision 1 Chief Executive s Overview 2 Strategic Context 2001/04 4 Key Achievements: 6 delivering ongoing fisheries management responsibilities 6 implementing the Fisheries Act delivering biosecurity responsibilities 10 contributing to integrated oceans policy 11 progressing fisheries plans 12 improving management of aquaculture 12 improving recreational fisheries management 13 improving management of species outside of the QMS 13 fostering international fisheries opportunities 14 developing an updated Treaty strategy 16 developing an environmental management strategy 16 improving organisational capability 16 Fisheries Research 19 Ministry Performance For The Year Ended 30 June 2002: 20 Key Statistics 21 Statement of Responsibility 22 Report of the Auditor-General 23 Financial Statements 25 Output Class Performance 43 Statement of Resources 62 Terms and Definitions Used 64 Legislation Administered by the Ministry of Fisheries at 30 June Ministry Directory 68

3 Minister of Fisheries Pursuant to Section 39 of the Public Finance Act 1989, I have the honour to present my Annual Report on the operations of the Ministry of Fisheries for the year ended 30 June W.R.Tuck Chief Executive Ministry of Fisheries Our Vision The Ministry s vision for fisheries is: the Crown working with Maori to achieve sustainable fisheries a healthy aquatic ecosystem in which fishing contributes to the social, economic and cultural well-being of New Zealanders and their communities, without limiting options for future generations and, in particular: - customary Maori fisheries contributing to the cultural health and well-being of iwi and hapu - high-quality recreational fisheries contributing to the social and economic well being of the nation - an internationally competitive fishing industry making a significant contribution to our economy people with rights to harvest fisheries having responsibility, and being held accountable, for the management of those rights, within environmental limits and standards set by government fisheries stakeholders recognising and respecting each other s rights, responsibilities and interests, and constructively resolving issues among themselves public support for the way fisheries are managed voluntary compliance with the fisheries laws that underpin sustainable fisheries. This vision is being reviewed as part of work during the year on updating the Ministry s strategic plan to 2008 which will be finalised towards the end of the 2002 calendar year. 1

4 Chief Executive's Overview The last financial year was another busy and successful one for the Ministry of Fisheries in both the fisheries management and marine biosecurity areas. First, the Ministry largely delivered its outputs, albeit with some slippages in the policy area, and kept within appropriations for both of the Votes and each of the seven output classes. Total departmental operating expenditure was $6.957 million (excluding GST) below the Supplementary Estimates budget at 30 June This underexpenditure was due principally to changes in the timing of the tendering and contracting of fisheries research and biodiversity activities. The Ministry has received approval in principle to carry forward $5 million of the underspend into the 2002/03 financial year for those activities where commitments were entered into in the 2001/02 financial year. Second, the implementation of the 1996 Fisheries Act and amendments from 1 October 2001 was extremely successful and we realised excellent results in our efforts to strengthen the Ministry s capability. Our achievements in both of these areas are covered in more detail in the Key Achievements section of the report. Work was commenced during the year and is ongoing on the updated strategic plan and Treaty strategy. Together with the Ministry s contribution to the biosecurity strategy this work is significant in laying solid foundations for the future. The Ministry continued to make a large contribution during the year to the development of an oceans policy for New Zealand. This work is strategically important for the Ministry, as the only agency all of whose activities fall under the ambit of oceans policy. Policy work recognises the need to manage human impacts on the oceans more effectively and the wish to ensure that New Zealand receives the best possible value from its oceans. In relation to the Minister of Fisheries priority and related strategies, all of our work is consistent with a greater environmental focus and/or creating opportunities for more tangata whenua and stakeholder involvement. Our greater environmental focus can be seen through: the Ministry s contributions to the biodiversity strategy implementation, including biosecurity; increased environmental research; the development of our environmental management strategy; the development of a marine protected areas strategy; our contributions to aquaculture and marine reserves policy papers; and our policy delivery work relating to marine reserves and protecting New Zealand sealions and Hector s dolphins. Our greater involvement of tangata whenua and stakeholders can be seen through our Treaty strategy work; our recreational fisheries and aquaculture policy work; our work with industry in implementing the registry and other 2

5 Ministry of Fisheries Chief Executive, Warwick Tuck provisions of the 1996 Act and amendments; and our approach to updating the existing strategic plan. These activities are over and above our inclusive ongoing fisheries management and marine biosecurity processes. My thanks go to all Ministry staff for their hard work and contributions to a successful 2001/02 financial year. I also thank the Ministers of Fisheries and Biosecurity and the two Associate Ministers for your support during the year. W.R. Tuck Chief Executive 3

6 Strategic Context 2001/2004 The Minister of Fisheries priority is to enhance the value and enjoyment of New Zealand s fisheries for all New Zealanders. The Minister proposes to do this through strategies to: achieve a greater environmental focus for fisheries management create greater opportunities for stakeholder involvement in fisheries management, and improve the organisational capability of the Ministry. These strategies are consistent with the government s commitment to sustainable development and to fulfilling the Crown s Treaty of Waitangi obligations. They are also consistent with recent improvements in the fisheries management legal framework and with the Ministry s existing strategic intent of sustainable fisheries in a healthy aquatic ecosystem. The Ministry has a number of environmental obligations that impact on all aspects of fisheries management. This means fisheries management must assume a stronger environmental focus, which recognises and manages the direct and indirect adverse effects of fishing on biological diversity, aquatic habitat and associated or dependent species. Our environmental obligations should guide proactive fisheries management and research. Achieving sustainable fisheries in a healthy aquatic ecosystem relies on appropriate sharing of responsibility between the Ministry and stakeholders. To encourage stakeholder awareness and participation, the Ministry will continue to provide information on fisheries and the aquatic environment. It will also continue initiatives to: empower customary, recreational and commercial fishers and environmental groups to participate effectively in fisheries management, and take a more flexible approach to fisheries management. The Ministry recognises that, to improve our ability to deliver good fisheries management outcomes, it needs to operate in different ways and develop new skills and systems. In the first half of the previous financial year, the Ministry completed a review of how it operates and identified ways to position the Ministry to improve delivery on its strategic direction. During the 2001/02 financial year, the Ministry continued the implemention of that review to improve people capability, process integration, decision-making and business planning. 4

7 Honorary Fishery Officer, Ron Toy provides an information pamphlet for a recreational fisher at Tauranga. 5

8 Key Achievements The Ministry s key achievements during the 2001/02 year focused on the following areas: Delivering ongoing fisheries management responsibilities The Ministry s day-to-day fisheries management activities form the majority of its business. These activities include managing the process of monitoring, and where necessary adjusting, the total allowable commercial catch as part of ensuring sustainable fisheries; working to minimise the impact of fishing on protected species; and fulfiling our compliance-related functions. Sustainable fisheries The Ministry managed two sustainability rounds during the year as part of the process of ensuring the sustainability of New Zealand s fisheries and their supporting ecosystems. The first round related to the 1 October fishing year and the second to the 1 April fishing year. As a result of these rounds, the Minister made a number of changes, the more significant of which were announced in September These included an increased total allowable commercial catch limit in the upper North Island orange roughy management area and a decreased catch limit in the mid West Coast area; a reduction in the total hoki catch limit, and catch limit reductions for oreos in the east coast of the South Island and Chatham Island/Chatham Rise areas. The catch limit for gemfish was reduced around most of the North Island, and there was a reduction for the Marlborough Sounds/Nelson commercial paua fishery, combined with a voluntary catch reduction. Catch limits for alfonsino, bluenose, elephant fish and sea perch were increased in certain areas, and some areas were opened to commercial hand-gathering of beach cast seaweed. Minimising fishing impacts on protected species Managing the adverse effects of fishing to minimise the impact on protected species has been an important focus during the year. Our efforts have centred on working with stakeholders to reduce fishing-related deaths of Hector s dolphins, sealions and seabirds, particularly petrels and albatross. The Ministry continues to work on a regional basis and in consultation with fishers, environmental groups and the Minister of Conservation to put in place measures to reduce Hector s dolphin mortalities. In Canterbury, a limit has been set of three Hector s dolphin deaths per year attributable to fishing for the area between the Waiau and Waitaki rivers. Regulatory measures for recreational fishers have been introduced to support this limit. In March 2002, a judicial review relating to measures to mitigate Hector s dolphin mortalities in the North Island put aside the Minister s decision. In April, the Ministry released, for consultation, a review of information available to support 6

9 Senior scientist, Neville Smith discusses stock assessment research on board the NIWA vessel, Kaharoa. 7

10 management options and proposed two coastal management options. In July, the Ministry provided the Minister with an analysis of the submissions and final recommendations for management of the impact of fishing on Hector s dolphins. Measures to reduce fishing-related deaths of sealions in the southern squid fishery are now in place. A Sealion Operational Plan for the area was approved on 31 January The plan imposed a maximum allowable fishing related mortality limit (MALFiRM) of 79 sealions for the 2001/02 fishing year. The fishery was closed on 13 April 2002 in response to advice that the MALFiRM had been reached. It is believed 84 sealions were caught in total. The overrun was due to a higher than expected number of sealions being caught in the last week of the fishery being open. The Seabird National Plan of Action (NPOA) is a long-term strategy for reducing the level of incidental bycatch of albatross and petrels in New Zealand fisheries. The Ministry and the Department of Conservation developed the first draft in conjunction with key commercial and environmental groups. It was consulted on with a wide range of stakeholders. The Minister of Fisheries and Minister of Conservation considered the draft in January While both Ministers saw it as a good first step, they considered it did not go far enough or move fast enough to reduce the capture of seabirds. They wanted to take steps to bring about a more certain reduction to capture rates and provide much better information on the extent of the interaction between commercial fishing and seabirds. As a result, stakeholders have been consulted on proposals to increase the level of Ministry observer coverage. This would enable better information on the interaction between seabirds and commercial fishing operations in key fisheries to be collected. If approved, the increased observer coverage will take effect in the 2002/03 fishing year. The Ministry is working with the Department of Conservation to produce a revised NPOA for the Ministers further consideration. It will then be circulated to stakeholders for final consultation. Enforcement operations During the year, the Ministry conducted significant fisheries enforcement operations in both inshore and deepwater commercial fisheries. Enforcement in the poaching and black-market area involved a major undercover operation - Operation Pacman. The operation ended in March 2002 with considerable assistance from the New Zealand Police and the New Zealand Defence Force. Extensive contact with industry helped ensure a clear understanding of the Ministry s expectations for the timely filing of monthly harvest and catch returns necessary for the new catch balancing regime. The introduction of infringement notices has had a dramatic effect on the timing of the filing of fishing returns within statutory deadlines, rising from 8

11 An RNZAF Orion aircraft checks out a fishing vessel during a routine surveillance flight off the East Coast of the North Island. Photo courtesy Dave Hansford/Origin Natural History Media 9

12 approximately 50% to 90%, an important aspect of ensuring integrity of information within the Fisheries Act 1996 which became fully operational from 1 October Infringement notices have been used for recreational fisheries offences as well as in the commercial fishery. The Ministry has continued to participate in the development of improved maritime patrol capability and to provide input into the government s review of defence capabilities. The Ministry also contributed to establishing the Maritime Intelligence Co-ordination Centre and the Maritime Co-ordination Centre. The section, Output Class Performance Information, contains more detailed information on the Ministry s achievements in these areas during the year. Implementing the Fisheries Act 1996 The implementation of the Fisheries Act 1996 and its amendments from 1 October 2001 was the culmination of extensive work across the Ministry over the previous two years. The 1996 Act simplified the previous statutory regime and provided for greater service delivery flexibility. The implementation of the Act and its amendments included four major elements: new registry services, the transfer of a range of duties and powers to industry, a new catch balancing regime and the development of internal systems to support the new penalties regime. New registry services to support the Act were developed jointly between industry and the Ministry. These were mainly funded through and managed by the Seafood Industry Council (SeaFIC). The new services commenced operation on time and within budget and are delivering on standards and specifications agreed by the Ministers. Planned additional systems and process changes as a consequence of the 1 October 2001 implementation have continued throughout the year and all final deliverables for this joint project have been achieved. The implementation process also saw the transfer of a range of duties and powers under the 1996 Act and its amendments to Commercial Fisheries Services Ltd, which uses the trading name of FishServe and is a SeaFIC subsidiary. The services associated with certain other duties and powers were contracted for successfully. A new catch-balancing regime began on 1 October This civil compliance regime, developed in conjunction with industry, provides for the payment of deemed values for over-fishing. A criminal system is in place if the civil regime fails to change behaviour. The Ministry developed the various internal systems required to support the new graduated penalties regime, which includes infringement notices and imprisonment for more serious criminal offences, in time for 1 October Delivering biosecurity responsibilities A risk management framework for marine biosecurity was developed and largely completed during the year. This will enable biosecurity risks to be prioritised and resources deployed where most effective. The Ministry also contributed to work in developing a national biosecurity strategy. 10

13 The Ministry actively participated in the work programme of the Maritime Protection Committee of the International Maritime Organisation, which is working to develop and adopt an international protocol for managing ballast water exchange and treatment. Regulatory proposals were developed to control fouling material cleaned from vessel hulls. This is nearing completion following wide consultation and analysis of feedback from stakeholders. Improvements to ballast water clearance procedures were initiated, with pre-arrival clearance operational for in-coming vessels from March MAF Quarantine Service provides enforcement of the ballast water import health standard under contract. Surveys of marine flora and fauna were undertaken in seven main ports of entry for overseas shipping, and further ports will be surveyed in 2002/03. The main ports, where ballast water is discharged to take onboard export cargo, are the most likely places where new organisms will arrive in New Zealand waters and first become established. A contract has been let for regular surveillance in these ports, to begin in 2002/03. Work is nearing completion on developing risk profiles for the six species identified as posing the greatest threat to New Zealand s marine environment and marine-based industries. This work will provide a basis for informed risk assessment of the pathways by which these species could arrive in our waters, and prioritising further policy, regulatory, and research work. by exotic organisms. Action plans have been completed for six high-risk species of marine pests. A vector management programme to reduce the spread of the seaweed undaria was initiated in January 2002, and the wreck of Seafresh 1 (which sank off the Chatham Islands in March 2000 with undaria on its hull) continued to be monitored with no undaria being found since March Biodiversity Strategy The Ministry is managing a number of projects funded through the New Zealand Biodiversity Strategy. These projects will provide additional information and management and risk evaluation tools in support of the ecosystem-based management approach to fisheries. During the year, the Ministry developed detailed proposals and coordinated research activity in a number of scientific and management related areas. Results from some of the shorter-term research are now being received. Contributing to an integrated oceans policy The Ministry has continued its active contribution to the Oceans Policy project. A senior manager was seconded to the Office of the Hon Pete Hodgson to coordinate the completion of phase one and planning for phase two of the project. The Ministry also provided the project with financial and administrative support. The Ministry will continue to contribute to this project during the next financial year. The Ministry s Chief Technical Officer responded to several reports of incursions 11

14 Progressing fisheries plans The fisheries plan initiative is a positive step in improving stakeholder participation in fisheries management and providing opportunities to take on responsibility within government standards. The plans are expected to provide for more flexible and efficient management approaches and support improved fishery management outcomes. The Ministry of Fisheries intends to release a revised Fisheries Plan Framework in September This document reflects submissions made by stakeholder groups in response to the consultation draft released last year. A stakeholder developed fisheries plan for cockles in the Otago Peninsula area was submitted to the Minister during the year for formal approval. A number of commercial and non-commercial stakeholder groups have started work on developing fisheries plans of their own, and the Ministry is providing technical support for pilot plans in four other areas. Improving management of aquaculture The Ministry has been active in developing the legislative framework that will allow the aquaculture industry to further increase its contribution to the economy. In November, the Government announced a programme of reforms to achieve this in a planned and cohesive manner. In March 2002, the Resource Management (Aquaculture Moratorium) Act came into force to address the race for coastal space and provide for an orderly transition to a new regime. The introduction of a Bill relating to the substantive reforms is planned for the second quarter of 2002/03. The reforms are intended to put in place a coastal management regime that can deliver better planning and enable better value to be gained from the sustainable use of coastal space. For aquaculture, this means more certainty about how new developments can be integrated with competing uses for example recreational fishing, pleasure boating and tourism. A core feature of the reforms will be removing the current case-by-case approach to approving new marine farms. This approach makes it difficult to adequately assess and manage the cumulative effects of the rapid expansion of aquaculture. Case-by-case consideration also leads to uncertainty and added costs for the aquaculture industry and submission fatigue for fishers and other interested parties in the community. The new approach will call for aquaculture management areas, established under the Resource Management Act coastal plans. They will be used for the specific purpose of providing water space for aquaculture development and all new development will take place within them. 12

15 The process to establish aquaculture management areas will require Regional Councils to consider all environmental effects and fisheries matters. However, two important constraints have been placed on this process. First, it should not place the 1992 settlement of Maori customary and commercial fisheries claims at risk. Second, it should not undermine the management regime government has established for fisheries, which is based on a system of individual fishing rights. For these reasons, the Ministry will retain a key role in the process. Improving recreational fisheries management The year saw the completion of the Soundings public consultation on recreational fishing with a report back to Cabinet on the outcomes in November Cabinet decided not to make immediate changes to legislation. Instead it agreed on a set of objectives to guide the further development of policy. Cabinet also noted the constraints the policy must work within. These include the Treaty of Waitangi (Fisheries Claims) Settlement Act 1992, respect for other rights holders and the environmental and fiscal objectives of government. Cabinet directed the Ministry to develop a single recommended option for reform following a period of further consultation and policy development. The Ministry is working towards taking a single option proposal to Cabinet for public consultation early in Improving management of species outside of the QMS The Quota Management System (QMS) has undergone significant changes since its implementation in 1986, and remains one of the most successful fisheries management frameworks in the world. When the QMS was first implemented, the overall intent was to manage all commercial fisheries within the QMS. This objective is also consistent with meeting the Crown s obligations under the Treaty of Waitangi (Fisheries Claims) Settlement Act 1992 which outlines the Crown s commitment to allocate to Te Ohu Kai Moana (TOKM) 20% of all species brought within the quota management system. More commercial fisheries were introduced into the QMS in 1998 and 2000, but various constraints have meant the introduction process has been slower than was first expected. However, the implementation of the Fisheries Act 1996 and the development of the new registry computer system removed the last major constraints to further QMS introductions. Both were fully operational on 1 October The Ministry initially decided to embark on the introduction of commercially valuable species into the QMS following a review which evaluated the implications of developing non-qms management mechanisms. The species managed within the QMS make up approximately 86% of the value and volume of commercial activity, but there remains a substantial number 13

16 of species - more than managed outside the QMS. In March 2001, the Ministry released a consultation document outlining its intention to undertake further QMS introductions. After considering the submissions received in response to the March 2001 document, and reviewing fisheries management priorities following consultation on the 2001/04 Business Plan, the Ministry decided in July 2001 to set a target of 50 species introduced into the QMS by Batches of new species and stocks are to be introduced at the start of the new fishing years. In April 2002, Coromandel scallops became part of the QMS. Anchovy, butterfish, garfish, kina, paddle crab, sprats, blue mackerel, cockles, queen scallops and pilchards will be added on 1 October The actual number of species introduced may vary depending on a number of factors. These include considering sustainability concerns for particular species and the level of resources required for QMS introductions while, at the same time, meeting other Ministry obligations. Fostering international fisheries opportunities The New Zealand seafood industry functions in a global context. The industry is overwhelmingly dependant on export returns over 90 percent of production is exported. In recent years the industry s resource base has expanded. Our fishers are now increasingly looking for catch opportunities outside New Zealand waters. During the year we have continued to work to facilitate these activities. At the same time, we have sought to uphold New Zealand s international commitments to sound conservation and management of fish stocks and the aquatic ecosystem. We have worked closely and constructively with the Ministry of Foreign Affairs and Trade in achieving these objectives. Highlights during the year include implementing a new high seas fishing permit regime for New Zealand fishers and developing a regional conservation and management regime for highly migratory stocks in the Western and Central Pacific Ocean a fishery of increasing interest to our industry. The year has also seen exploratory fishing for toothfish in the Ross Sea by New Zealand vessels, significant cooperation in the regional management of southern bluefin tuna and the operation of product certification schemes for both these fish stocks. The schemes support international conservation and management measures and protect the interests of New Zealand fishers who comply with them. The Ministry continues to promote responsible fisheries management both within New Zealand and internationally. During the year, Ministry scientists participated in a conference on Responsible Fisheries in the Marine Ecosystem sponsored by the Food and Agriculture Organisation (FAO). 14

17 Hoki are New Zealand s largest commercial fishery. Here a school of hoki are pictured at a depth of 458 metres in Cook Strait. Photo courtesy of NIWA. 15

18 Developing an updated Treaty strategy The Ministry s proposed Treaty strategy looks at how the Ministry delivers on its obligations under the Treaty of Waitangi (Fisheries Claims) Settlement Act 1992 and the principles of the Treaty. The nature of the relationship between the Ministry and tangata whenua is central to the Ministry s initial thinking. Strong relationships based on partnership are a necessary first step to achieving our respective goals for sustainable management of fisheries resources. During the year, the Ministry has talked with iwi and hapu with a view to strengthening the relationships necessary to develop and implement a robust and successful strategy. The Ministry has also worked with Te Ohu Kai Moana to ensure the Treaty strategy framework takes into account the future allocation of commercial fisheries assets. During the year, ten consultation hui were held across Northland, Bay of Plenty, Waikato, Nelson/Marlborough and East Coast and further hui are being organised throughout the rest of the country. Developing an environmental management strategy The Environmental Management Strategy (EMS) is a high level framework that will set out the approach the Ministry will take to implementing the environmental obligations in the Fisheries Act and related legislation. This includes the roles of government and stakeholders in setting environmental standards and managing fisheries to meet these standards. It will also set out the likely changes required in the Ministry s organisation and processes to implement the strategy and improve the management of the adverse effects of fishing on the aquatic environment. During the year the Ministry completed a first round of consultation to discuss approaches to developing the EMS and held discussions with stakeholder groups. A draft EMS is nearly complete and external consultation on this will be undertaken in the first quarter of 2002/03. Improving organisational capability The need to meet the requirements of the Fisheries Act 1996 prompted a realignment of the Ministry s Fisheries Management business unit aimed at increasing the focus on outcomes and improving accountability. This realignment has resulted in a more structured risk management approach, an enhanced central standard-setting process, more dispersed responsibilities for managing fisheries, and improved central co-ordination. The position of National Manager has been established, with two key teams. The standards team administers the environmental and process standards applied to fisheries management. The operations team provides advice on specified fisheries and the allocation of harvest authorisations. Six teams located in Auckland, Nelson and Dunedin have been set up with accountability for providing this advice. Three of these teams cover inshore fisheries; one team covers pelagic fisheries; one team covers deepwater fisheries and one team covers aquaculture. 16

19 Senior policy analyst, Raymond Necklen with representatives of Te Tau Ihu o te Waka a Maui at the establishment of a new taiapure local fishery at Nelson s Delaware Bay. Photo courtesy Nelson Mail. 17

20 During the year, the Ministry delivered a comprehensive training programme for all compliance staff on the full implementation of provisions of the 1996 Fisheries Act. These include clarified enforcement powers, new offences and penalties, infringement notices, and the new catch balancing and reporting regime. A year-long management development programme was implemented with the aim of improving the people management skills of all Ministry managers. Two induction courses were run during the year to familiarise new staff with the Ministry s strategies, roles and organisation. The new position of Chief Adviser, Treaty Relationships was established. Reporting to the Chief Executive, the responsibilities of this position include developing an iwi/hapu relationship management strategy. This embraces organisational standards, training programmes for staff, advice to the Executive Team and the Minister of Fisheries as well as being the focal point for Maori staff and Maori-led initiatives within the Ministry. meaning of the data now collected by FishServe has changed and this has resulted in the need to change all Ministry computer systems. This work is expected to be completed in the 2002/03 financial year. The Ministry s main Fisheries Information System has been significantly enhanced to allow Ministry staff to access and report on data from FishServe. New systems tracking fisheries offences and the system to support infringement notices have also been developed and implemented. A new website, ST*Rfish ( was launched as a free educational resource for secondary school students and teachers. A major review was conducted in the use of Geographic Information Systems and the management of spatial data within the Ministry. The results have defined the requirements for future infrastructure to support some major new ministry projects such as National Aquatic Biodiversity Information System. Information technology investment for the year supported a number of significant development projects, the upgrade and replacement of key infrastructure, and supported the E-Government strategy. A new formal data exchange mechanism to allow data to be transferred between the industry registry services and the Ministry has been implemented. The type, format and in some cases 18

21 Fisheries Research Medium-term research programmes are in place for all major fisheries. Information is collected according to those plans through contracted research, as well as catch and effort data supplied by commercial fishers. During the year, the Ministry managed about 150 research projects at a total cost of more than $17 million. Major acoustic and trawl surveys were carried out on hoki, orange roughy, oreos, and southern blue whiting. Increased effort was directed at investigating the impacts of fishing on the aquatic environment, research into customary Maori fisheries, and socioeconomic research. We also received preliminary results from a major nationwide survey on recreational fishing that indicated possibly higher participation rates and higher total catch than in past surveys. The Ministry completed major stock assessments on hoki, the orange roughy fishery along the east coast of the North Island, black oreos on the western end of the Chatham Rise, the main paua fisheries on the southern tip of the South Island and the rock lobster fishery in the Gisborne area. Based on the 2002 stock assessment results, estimates of stock status and sustainable yields are available for about half the stocks in the QMS. However, estimates are available for all the main fisheries that comprise about two-thirds of New Zealand s fisheries by weight and value. Of these major fisheries, 80% are at or above sustainable target levels and rebuilding strategies are in place for the remainder. Each year the Ministry engages overseas experts to review and comment on major research programmes. In 2001/02 the orange roughy acoustics and Auckland intertidal shellfish programmes were reviewed. The reviewers were generally supportive of the work, while identifying some areas for improvement. The Ministry continues to increase the amount of research on marine biodiversity within the New Zealand EEZ. Seamounts, New Zealand algae (including crustose coralline algae), deep-sea biodiversity, and soft-sediment communities have been the subject of focused studies or proposals during the past year. In addition, a substantive programme investigating the ecology and biodiversity of coastal benthic communities in the Ross Sea, Antarctica has commenced. During the 2001/02 Antarctic research season, NIWA divers clocked up 180 dives at two different sites in McMurdo Sound (New Harbour and Cape Evans). While findings are still preliminary, results suggest that those two locations are very different in both habitat structure and biodiversity. Also apparent is that coastal benthic biodiversity in the Ross Sea is high. 19

22 Ministry Performance for the year ended 30 June

23 Key Statistics for the Year Ended 30 June Actual Actual Main Supp Estimates Estimates Revenue analysis ($000) 60,469 Crown 68,705 62,699 68,705 2,439 Other 1,959 1,656 3, Interest Working capital management (233) Net current assets ($000) (66) (1,200) (1,279) 1.26:1 Liquid ratio 1.68:1 1.06:1 1.07:1 0.99:1 Current ratio 1.00:1 0.92:1 0.91:1 Resource utilisation Physical assets: 9,626 - Total physical assets at end of period ($000) 9,402 10,282 10,426 40% - Additions as % of fixed assets 33% 28% 36% 35% - Physical assets as % of total assets 32% 44% 44% 7,847 Taxpayers Funds at end of period ($000) 7,650 7,682 7,747 Net cash flows ($000) 5,463 Inflow/(outflow) from operating activities 5,125 3,087 5,817 (3,247) Inflow/(outflow) from investing activities (2,818) (2,664) (3,234) (2,521) Inflow/(outflow) from financing activities (2,638) (3,486) (2,538) The statement of accounting policies and notes should be read in conjunction with these financial statements 21

24 Statement of responsibility In terms of sections 35 and 37 of the Public Finance Act 1989, I am responsible, as the Chief Executive of the Ministry of Fisheries, for the preparation of the Ministry s financial statements and the judgements made in the process of producing those statements. I have the responsibility of establishing and maintaining, and I have established and maintained, a system of internal control procedures that provide reasonable assurance as to the integrity and reliability of financial reporting. In my opinion these financial statements fairly reflect the financial position and operations of the Ministry for the year ended 30 June W.R. Tuck Chief Executive Peter Boon Manager Corporate Planning and Services 22

25 Report of the Auditor-General To the Readers of Financial Statements of the Ministry of Fisheries For the Year Ended 30 June 2002 We have audited the financial statements on pages 25 to 61. The financial statements provide information about the past financial and service performance of the Ministry of Fisheries and its financial position as at 30 June This information is stated in accordance with the accounting policies set out on pages 25 to 28. Responsibilities of the Chief Executive The Public Finance Act 1989 requires the Chief Executive to prepare financial statements in accordance with generally accepted accounting practice in New Zealand that fairly reflect the financial position of the Ministry of Fisheries as at 30 June 2002, the results of its operations and cash flows and service performance achievements for the year ended on that date. Auditor s Responsibilities Section 15 of the Public Audit Act 2001 and section 38(1) of the Public Finance Act 1989 require the Auditor-General to audit the financial statements presented by the Chief Executive. It is the responsibility of the Auditor-General to express an independent opinion on the financial statements and report that opinion to you. The Auditor-General has appointed Denis J Foy, of Ernst & Young, to undertake the audit. Basis of Opinion An audit includes examining, on a test basis, evidence relevant to the amounts and disclosures in the financial statements. It also includes assessing: the significant estimates and judgements made by the Chief Executive in the preparation of the financial statements; and whether the accounting policies are appropriate to the Ministry of Fisheries circumstances, consistently applied and adequately disclosed. We conducted our audit in accordance with the Auditing standards, published by the Auditor-General, which incorporate the Auditing Standards issued by the Institute of Chartered Accountants of New Zealand. We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatements, whether caused by fraud or error. In forming our opinion, we also evaluated the overall adequacy of the presentation of information in the financial statements. Ernst & Young has undertaken consulting assignments of an assurance nature for the Ministry of Fisheries. Other than these assignments and in our capacity as auditor acting on behalf of the Auditor-General, we have no relationship with or interests in the Ministry of Fisheries. 23

26 Unqualified Opinion We have obtained all the information and explanations we have required. In our opinion the financial statements of the Ministry of Fisheries on pages 25 to 61: comply with generally accepted accounting practice in New Zealand; and fairly reflect: - the Ministry of Fisheries s financial position as at 30 June 2002; - the results of its operations and cash flows for the year ended on that date; and - its service performance achievements in relation to the performance targets and other measures set out in the forecast financial statements for the year ended on that date. Our audit was completed on 30 August 2002 and our unqualified opinion is expressed as at that date. D J Foy Ernst & Young On behalf of the Auditor-General Wellington, New Zealand 24

27 Statement of Accounting Policies Reporting Entity The Ministry of Fisheries is a Government Department as defined by section 2 of the Public Finance Act These are the financial statements of the Ministry of Fisheries prepared pursuant to section 35 of the Public Finance Act In addition, the Ministry has reported trust monies which it administers. Measurement Basis The general accounting principles recognised as appropriate for the measurement and reporting of financial performance and financial position on an historical cost basis, modified by the revaluation of certain fixed assets, have been followed. Specific Accounting Policies Budget Figures The Budget figures are those presented in the Budget Night Estimates (Main Estimates) and those amended by the Supplementary Estimates and any transfers made by Order-in-Council under section 5 of the Public Finance Act Revenue The Ministry derives revenue through the provision of outputs to the Crown, and for services to third parties. Such revenue is recognised when earned and is reported in the financial period to which it relates. Cost Allocation Direct costs assigned to outputs Costs directly attributable to an output are charged directly to the output on the following basis: Cost Depreciation and capital charge Personnel Property and other premises costs Allocation basis Asset utilisation Weighted actual staff time Floor area and staff time For the year ended 30 June 2002, direct costs accounted for 80% of the Ministry s costs (2001: 81%). Basis for assigning indirect and corporate costs to outputs Those costs that cannot be identified to an output in an economically feasible manner are assigned on the proportion of staff time spent on that output. For the year ended 30 June 2002 indirect costs accounted for 20% of the Ministry s costs (June 2001: 19%). 25

28 Debtors and Receivables Receivables are recorded at estimated realisable value, after providing for doubtful and uncollectable debts. Operating Leases Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased items are classified as operating leases. Operating lease expenses are recognised on a systematic basis over the period of the lease. Fixed Assets Land, buildings and vessels are stated at net current value, as established by an independent valuation for the Ministry of Fisheries, with subsequent additions at cost less depreciation. For the purpose of these financial statements, land and buildings, although owned by the Crown, are deemed to be owned by the Ministry as principal occupier or user. Land, buildings and vessels are revalued on a cyclical basis. All assets within these classes are revalued, as a minimum, every five years. All other fixed assets are stated at net book value (NBV) - i.e. cost less depreciation. Only fixed assets with a cost in excess of $5,000 are capitalised. Depreciation Depreciation of fixed assets, other than freehold land and work in progress, is provided on a straight line basis so as to allocate the cost (or valuation) of assets over their estimated useful lives. The estimated economic useful lives are: Buildings Motor vehicles Vessels Plant and equipment Leasehold improvements years up to 10 years 4-25 years up to 10 years up to 10 years The cost of leasehold improvements is capitalised and depreciated over the unexpired period of the lease or the estimated remaining useful lives of the improvements whichever is shorter. Items under construction are not depreciated. The total cost of a capital project is transferred to the appropriate asset class on its completion and then depreciated. Inventories Inventories acquired for use in the provision of goods and services are expensed, except for bulk stocks which are capitalised and expensed when used. Inventories are valued at cost. Full provision is made for obsolescence where applicable. 26

29 Employee Entitlements Provision is made in respect of the Ministry s liability for annual leave, long service leave and retirement leave. Annual leave has been calculated on an actual entitlement basis at current rates of pay. Employee entitlements to long service leave and retiring leave are recognised for all employees on the basis of an annual actuarial valuation based on the present value of expected future entitlements. Foreign Currency Foreign currency transactions are converted into New Zealand dollars at the exchange rate at the date of the transaction. Statement of Cash Flows Cash means cash balances on hand and held in bank accounts. Operating activities include cash received from all income sources of the Ministry and record the cash payments made for the supply of goods and services. Investing activities are those activities relating to the acquisition and disposal of non-current assets. Financing activities comprise capital injections by, or repayment of capital to, the Crown. Financial Instruments The Ministry is party to financial instruments as part of its normal operations. These financial instruments include bank accounts, debtors and creditors. All financial instruments are recognised in the Statement of Financial Position and all revenues and expenses in relation to financial instruments are recognised in the Statement of Financial Performance. Goods and Services Tax (GST) All financial information in this document is expressed exclusive of GST except for: 1. The items, Debtors and Receivables and Creditors and Payables, which are inclusive of GST in the: Statement of Financial Position; and Statement of Cash Flows. 2. The following schedules, in which the GST on revenue earned is included where applicable: Statement of Departmental and Non-Departmental Expenditure and Appropriations; and Statement of Unappropriated Expenditure. The amount of GST owing to or from the Department of Inland Revenue at balance date is included in Creditors and Payables or Debtors and Receivables as appropriate. 27

30 Taxation Government Departments are exempt from the payment of Income Tax in terms of the Income Tax Act Accordingly, no charge for income tax has been provided for. Commitments Future expenses and liabilities to be incurred on non-cancellable operating leases, fisheries and biodiversity research contracts and registry services contracts that are entered into at balance date are disclosed as commitments to the extent that they are equally unperformed obligations. Contingent Liabilities Contingent liabilities are disclosed at the point at which the contingency is evident. Taxpayers Funds This is the Crown s net investment in the Ministry. Changes in Accounting Policies There have been no changes in accounting policies since the date of the last audited financial statements. All policies have been applied on a basis consistent with previous years. 28

31 Statement of Financial Performance for the Year Ended 30 June 2001 Notes Actual Actual Main Supp Estimates Estimates $000 $000 $000 $000 Revenue: 60,469 Crown 1 68,705 62,699 68,705 2,439 Other 2 1,959 1,656 3, Interest ,919 Total revenue 70,664 64,370 71,911 Expenditure: 20,695 Personnel costs 4 22,881 20,389 24,327 36,537 Operating costs 5 38,074 40,421 44,144 2,296 Depreciation 3,150 2,804 2, Capital charge Other expenses ,441 Total expenditure 17 65,004 64,555 71,961 2,478 Net surplus/(deficit) 5,660 (185) (50) Statement of Movements in Taxpayers Funds as at 30 June Actual Actual Main Supp Estimates Estimates $000 $000 $000 $000 7,995 Taxpayers funds at start of period 7,847 7,782 7,847 2,478 Net surplus/(deficit) 5,660 (185) (50) 2 Increase in revaluation reserves Total recognised revenues 2,480 and expenses for the period 5,660 (185) (50) (2,638) Provision for repayment (5,857) (15) (150) of surplus to the Crown 10 Capital contribution ,847 Taxpayers funds at end of period 7,650 7,682 7,747 The statement of accounting policies and notes should be read in conjunction with these financial statements 29

32 Statement of Financial Position as at 30 June 2001 Notes Actual Actual Main Supp Estimates Estimates $000 $000 $000 $000 Taxpayers funds 7,395 General funds 8a 7,198 7,157 7, Revaluation reserves 8b ,847 Total taxpayers funds 7,650 7,682 7,747 Represented by: Current assets 2,214 Cash 1,883 1,103 2, Prepayments Inventory ,486 Debtors and receivables 9 17,341 11,956 10,856 17,838 Total current assets 19,577 13,201 13,257 Non-current assets 9,626 Fixed assets 10 9,402 10,282 10,426 27,464 Total assets 28,979 23,483 23,683 Current liabilities 13,153 Creditors and payables 11 11,152 11,556 11,556 2,638 Provision for repayment of 12 5, surplus to the Crown 1,961 Provision for employee entitlements 13 2,240 2,500 2, Unearned revenue ,071 Total current liabilities 19,643 14,401 14,536 Term liabilities 1,546 Provision for employee entitlements 13 1,686 1,400 1,400 19,617 Total term liabilities 21,329 15,801 15,936 7,847 Net assets 7,650 7,682 7,747 The statement of accounting policies and notes should be read in conjunction with these financial statements 30

33 Statement of Cash Flows for the Year Ended 30 June Actual Actual Main Supp Estimates Estimates $000 $000 $000 $000 Cash flows from operating activities Cash provided from: Supply of outputs to: 59,431 - Crown 66,168 62,888 72,936 2,373 - Other parties 2,608 1,842 3, Interest ,815 68,776 64,745 76,358 Cash disbursed to: Cost of producing outputs: 55,439 - Output expenses 62,949 60,717 69, Capital charge Other expenses ,352 63,651 61,658 70,541 Net cash inflow/(outflow) 5,463 from operating activities 5,125 3,087 5,817 Cash flows from investing activities Cash provided from: Sale of fixed assets Cash disbursed to: 3,830 - Purchase of physical assets 3,115 2,900 3,764 Net cash inflow/(outflow) (3,247) from investing activities (2,818) (2,664) (3,234) Cash flows from financing activities Cash provided from: 10 - Capital contribution from the Crown Cash disbursed for: 2,531 - Payment of surplus to the Crown 2,638 3,586 2,638 Net cash inflow/(outflow) (2,521) from financing activities (2,638) (3,486) (2,538) (305) Net increase/(decrease) in cash balance (331) (3,063) 45 2,519 Add opening cash balance 2,214 4,166 2,214 2,214 Closing cash balance 1,883 1,103 2,259 The statement of accounting policies and notes should be read in conjunction with these financial statements 31

34 Reconciliation of Net Surplus to Net Cash Flows from Operating Activities for the Year Ended 30 June Actual Actual Main Supp Estimates Estimates $000 $000 $000 $000 2,478 Net surplus/(deficit) 5,660 (185) (50) Add non-cash items: 2,296 Depreciation 3,150 2,804 2, Write downs ,389 Total non-cash items 3,150 2,804 2,584 Movements in working capital items: (1,018) (Increase)/Decrease in debtors and receivables (1,855) 189 4, (Increase)/Decrease in prepayments (212) ,488 Increase/(Decrease) creditors and payables (2,223) 0 (1,597) 234 Increase/(Decrease) in employee entitlements (Increase)/Decrease in inventories (3) (32) (34) 55 Increase/(Decrease) in unearned revenue (43) Increase/(Decrease) in other provisions Net increase/(decrease) in 737 working capital movements (3,577) 468 3,433 Add/(less) investing activity items: (141) Net (gain) on sale of fixed assets (108) 0 (150) (141) Total investing activity items (108) 0 (150) Net cash inflow/(outflow) 5,463 from operating activities 5,125 3,087 5,817 The statement of accounting policies and notes should be read in conjunction with these financial statements 32

35 Statement of Commitments as at 30 June The Ministry has short to long term leases on its premises. The annual lease payments are subject to two to ten yearly reviews. The amounts disclosed below as future commitments are based on current rental rates. In addition, there are fisheries and biodiversity research projects and registry services contracts entered into in 2001/02 for which the service will be performed after 30 June Actual Actual $000 $000 Operating commitments 12,291 - Less than one year 11,919 2,736 - One to two years 4,443 3,021 - Two to five years 1, More than five years ,805 Total operating commitments 18,210 1,000 Capital commitments 33 19,805 Total commitments 18,243 Statement of Contingent Liabilities as at 30 June Actual Actual $000 $000 1,995 Legal proceedings and disputes 680 1,995 Total contingent liabilities 680 These contingent liabilities relate to public liability claims. Statement of Unappropriated Expenditure for the Year Ended 30 June 2002 The Ministry has not incurred any unappropriated expenditure during the 2001/02 financial year (30 June 2001: Nil). The statement of accounting policies and notes should be read in conjunction with these financial statements 33

36 Statement of Departmental and Non-Departmental Expenditure and Appropriations for the Year Ended 30 June Actual Actual Appropriation* $000 $000 $000 Vote Fisheries Appropriations for classes of outputs 6,874 D1 Policy framework 6,195 7,976 21,676 D2 Fisheries information and monitoring 22,621 24,869 6,200 D3 Regulatory management 7,061 7,705 10,708 D4 Fisheries access and administration 10,664 11,256 18,386 D5 Enforcement of fisheries policies 20,878 21,111 2,796 D6 Prosecution of offences 4,083 4,267 Total Departmental Output 66,640 Class Appropriations 71,502 77,184 Appropriation for other expenses to be incurred by the department 160 Organisational review ,800 Total Departmental Appropriations 71,724 77,409 Appropriations for other expenses to be incurred by the Crown 2,077 Bad debt write-off 1,140 1,600 0 Trust account distribution Compensation for quota reductions Crown-owned quota levy Transfer of quota 0 0 3,375 Total Non-Departmental Appropriations 1,560 2,254 Appropriations for capital contribution 10 Purchase of capital assets Total Capital Contributions Vote Biosecurity - Fisheries Appropriations for classes of outputs 1,487 D11 Marine biosecurity advice 2,124 3,153 1,487 Total Departmental Appropriations 2,124 3,153 * Includes adjustments made in Supplementary Estimates and transfers under section 5 of the Public Finance Act. The statement of accounting policies and notes should be read in conjunction with these financial statements 34

37 Statement of Trust Monies for the Year Ended 30 June Declared Forfeit Total Overfishing Property Trust Account 1 Account 2 ($000) ($000) ($000) Balance at start of period , ,972 Plus: - Contribution 10,992 4,173 15,165 - Revenue Sub-total 11,328 4,272 15,600 Less: - Distribution 10,420 2,427 12,847 Balance at end of period ,782 1,943 8,725 1 Funds held in relation to the deemed value of fish taken in excess of quota under the Quota Management System. 2 Proceeds received from the sale of forfeited property which is disposed of in accordance with Ministerial/Court direction. Notes to the Financial Statements for the Year Ended 30 June Actual Actual Main Supp Estimates Estimates $000 $000 $000 $000 Note 1: Revenue Crown Vote Fisheries 6,252 Policy framework 7,090 8,773 7,090 18,496 Fisheries information and monitoring 20,444 16,128 20,444 5,575 Regulatory management 6,849 7,257 6,849 8,673 Fisheries access and administration 8,897 8,348 8,897 16,570 Enforcement of fisheries policies 18,479 16,570 18,479 2,651 Prosecution of offences 3,793 3,001 3,793 Vote Biosecurity - Fisheries 2,252 Marine biosecurity advice 3,153 2,622 3,153 60,469 Total - revenue Crown 68,705 62,699 68,705 The statement of accounting policies and notes should be read in conjunction with these financial statements 35

38 Actual Actual Main Supp Estimates Estimates $000 $000 $000 $000 Note 2: Other Revenue 1,129 Transhipment and observer charges 1, , Transfer and lease fees Boat registration and permit fees Marine farming licence fees Gain on sale of fixed assets (Note 3) Miscellaneous ,439 Total other revenue 1,959 1,656 3,206 Note 3: Gain on Sale of Fixed Assets 87 Motor vehicles Vessels Net gain on sale of fixed assets Note 4: Personnel Costs 18,625 Salaries and wages 19,378 18,972 20,263 2,070 Other 3,503 1,417 4,064 20,695 Total personnel costs 22,881 20,389 24,327 Note 5: Operating Costs 2,556 Asset operating costs 2,517 2,281 2, Asset write-offs Bad debts written-off ,374 Communications 1,330 1,542 1, Computer consumables ,665 Contract for services 23,700 28,022 28, Fees for audit of the financial statements Fees to auditors for other services Legal 1,341 1,448 1,998 1,663 Operating lease rentals 1,466 1,497 1,497 1,470 Printed materials 1,360 1,580 1,592 2,330 Travel 2,277 2,299 2,339 3,920 Other operating costs 3,293 1,204 4,303 36,537 Total operating costs 38,074 40,421 44,144 Note 6: Capital Charge The Ministry pays a capital charge to the Crown on its net taxpayers funds as at 30 June and 31 December each year. The capital charge rate for the year ended 30 June 2002 was 9.0% (30 June 2001 = 9.4%) 36

39 Actual Actual Main Supp Estimates Estimates $000 $000 $000 $000 Note 7: Other Expenses 160 Organisational review Total other expenses Note 8: Taxpayers Funds Taxpayers funds comprises two components: a) General Funds 7,472 General funds at start of period 7,395 7,257 7,395 2,478 Net surplus/(deficit) 5,660 (185) (50) 10 Capital contribution Provision for repayment (2,638) of surplus to the Crown (5,857) (15) (150) 73 Other adjustments ,395 General funds at end of period 7,198 7,157 7,295 b) Revaluation Reserves Land Building Vessels Total Land Building Vessels Total $000 $000 $000 $000 $000 $000 $000 $000 (3) Balance at start of period (1) (73) (71) Movements Balance at end of period Actual Actual $000 $000 Note 9: Debtors and Receivables 730 Trade debtors 452 (58) Less: provision for doubtful debts (57) 672 Net trade debtors Receivables 88 14,321 Debtor: Crown funding 16,858 15,486 Total debtors and receivables 17,341 37

40 Actual Actual $000 $000 Note 10: Fixed Assets 51 Land at cost 51 Buildings 1,126 At cost 1,126 (47) Accumulated depreciation (67) 1,079 Net book value 1,059 Leasehold improvements 2,893 At cost 2,118 (1,779) Accumulated depreciation (1,354) 1,114 Net book value 764 Plant and equipment 14,286 At cost 16,949 (11,379) Accumulated depreciation (12,793) 2,907 Net book value 4,156 2,100 Capital work in progress at cost 922 Vessels 1,091 At cost 1,049 (246) Accumulated depreciation (339) 845 Net book value 710 Motor vehicles 2,139 At cost 2,435 (609) Accumulated depreciation (695) 1,530 Net book value 1,740 Total fixed assets 23,686 At cost 24,650 (14,060) Accumulated depreciation (15,248) 9,626 Total net book value 9,402 Valuation information Land, buildings and vessels were revalued during the 1999/2000 financial year at net current value ( existing use basis) as established by Darroch Limited, an independent registered valuer, with subsequent additions at cost less depreciation. Reassessment of useful lives, and residual values During 2002, the Ministry conducted a review of the useful lives, residual values and depreciation methods used to depreciate fixed assets to ensure they continued to be appropriate. As a consequence of the review, the useful lives of certain items of plant and equipment and leasehold improvements were reassessed and, as a result, a net increase in the depreciation charge of $583,000 ( nil) has been recognised in the Statement of Financial Performance. 38

41 Actual Actual $000 $000 Note 11: Creditors and Payables 4,315 Trade creditors 558 7,632 Accrued expenses 8,699 1,206 GST payable 1,895 13,153 Total creditors and payables 11,152 Note 12: Provision for Repayment of Surplus to the Crown 2,478 Net surplus 5,660 Add other expenses: Organisational review 197 2,638 Total provision for repayment of surplus 5,857 Note 13: Employee Entitlements Annual Other Total Leave Personnel Costs ($000) ($000) ($000) Current liabilities Balance at start of period , ,961 Expenditure during the period (1,169) (823) (1,992) Increase in provision 1,258 1,013 2,271 Balance at end of period ,227 1,013 2,240 Retiring Long Total Leave Service Leave ($000) ($000) ($000) Term liabilities Balance at start of period , ,546 Expenditure during the period 0 (38) (38) Increase in provision Balance at end of period , ,686 Retiring Leave Employees are entitled to retiring leave or approved early retirement, providing they have completed 10 or more years of service and the retirement is the permanent cessation of regular paid employment. The timing of outflows for retiring leave is dependent on the actual retirement date of employees. Long Service Leave Employees who have completed 10 year s continuous service may be granted, only once, two weeks long service leave. A further ten working days are available after completion of 20 years continuous service. Long service leave must be taken within five years of qualification. As at 30 June 2002, employee entitlements to long service leave and retiring leave were valued on an actuarial basis by Mr Bernie Higgins of Aon Consulting New Zealand Limited, an independent consulting actuary. The discount rate used to assess the net present value of retiring leave and long service leave was 5.75% (2001 = 5.75%). 39

42 Note 14: Financial Instruments The Ministry is party to financial instrument arrangements as part of its everyday operations. These include instruments such as bank balances, accounts receivable and trade creditors. Credit Risk Credit risk is the risk that a third party will default on its obligations to the Ministry, causing the Ministry to incur a loss. In the normal course of its business, the Ministry incurs credit risk from trade debtors, and transactions with financial institutions. The Ministry does not require any collateral or security to support financial instruments with financial institutions that the Ministry deals with, as these entities have high credit ratings. For its other financial instruments, the Ministry does not have significant concentrations of credit risk. Maximum Credit Risk at 30 June Actual Actual $000 $000 2,214 Cash 1,883 15,486 Debtors and Receivables 17,341 17,700 Maximum credit risk 19,224 Fair Value The fair value of all financial instruments is equivalent to the carrying amount disclosed in the Statement of Financial Position. Currency Risk and Interest Rate Risk Currency risk is the risk that debtors and creditors due in foreign currency will fluctuate because of changes in foreign exchange rates. Interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates. Under sections 46 and 47 of the Public Finance Act, the Ministry cannot raise a loan without Minister of Finance approval and no such loans have been raised. Accordingly there is no interest rate exposure for funds borrowed. The Ministry has no significant exposure to currency risk or interest rate risk on its financial instruments. Note 15: Contingencies The Ministry does not have any contingent assets as at 30 June 2002 (30 June 2001: Nil). Contingent liabilities are separately disclosed in the Statement of Contingent Liabilities. Note 16: Related Party Information The Ministry is a wholly owned entity of the Crown. The Government significantly influences the roles of the Ministry as well as being its major source of revenue. The Ministry enters into numerous transactions with other government departments, Crown agencies and state-owned enterprises on an arms-length basis. Where those parties are acting in the course of their normal dealings with the department, related party disclosures have not been made for transactions of this nature. Apart from those transactions described above, the Ministry has not entered into any related party transactions. 40

43 Note 17: Major Budget Variations Statement of Financial Performance The variations from the initial 2001/02 Budget Night (Main) Estimates to Supplementary Estimates are due to: $000 (i) finalisation of fisheries research services to be provided in the 2001/02 financial year, following consultation with fisheries stakeholders 3,997 (ii) an increase in observer coverage 1,200 (iii) an increase in prosecution costs 800 (iv) an increase in debt recovery costs 150 (v) introduction of the Infringement Notice System 188 (vi) increased activity costs in relation to Operation Pacman 200 (vii) funding transfers between the 2000/01 and 2001/02 financial years for - marine biosecurity research input and participation into fisheries management processes 340 (viii) a funding transfer from the Ministry of Fisheries to the Ministry of Agriculture and Forestry under the biodiversity package (40) Total 7,406 Note 18: Segment Information The Ministry undertakes fisheries management activities throughout New Zealand. 41

44 Statements of Service Performance for the Year Ended 30 June Statements of Service Performance for each Output Class, together with the actual and budgeted costs for each Output Class and contributing Outputs are detailed in the following pages. Achievements during the year should be read in conjunction with the performance standards set out in the Departmental Forecast Report signed by the Minister of Fisheries and the Chief Executive of the Ministry of Fisheries on 23 April Consolidated Output Classes Statement of Financial Performance Actual Actual Supp Actual as Estimates % of Supp Estimates $000 $000 $000 $000 Revenue: 60,469 Crown 68,705 68, ,298 Other 1,851 3, ,767 Total revenue 70,556 71, Expenses: Vote Fisheries: 6,092 Policy framework 5,309 7, ,230 Fisheries information and monitoring 19,937 22, ,503 Regulatory management 6,205 6, ,479 Fisheries access and administration 9,463 10, ,307 Enforcement of fisheries policies 18,554 18, ,465 Prosecution of offences 3,609 3, Vote Biosecurity - Fisheries: 1,205 Marine biosecurity advice 1,730 3, ,281 Total expenses 64,807 71, ,486 Surplus 5,

45 Output Class Service Performance Policy Advice Criteria All policy advice from the Ministry will be delivered in accordance with the following standards: Purpose Reports clearly state their purpose and address any questions that have been set. Logic Assumptions behind the advice are explicit, the argument logical and supported by facts. Accuracy The facts in the papers are accurate and all material facts have been included. Options An adequate range of options has been presented and assessed for benefits, costs and consequences to fisheries management. Consultation Evidence exists of adequate consultation with interested parties where applicable and possible objections to the proposals have been identified. Practicality Problems of implementation, technical feasibility, compliance costs, enforcement implications, timing and consistency with other policies have been considered. Presentation Material presented meets Cabinet Office requirements. Review The Minister s views on the quality of advice will be sought through appropriate means on a six-monthly basis. Output Class Information Output Class D1 Policy Framework Description: This class of outputs provides policy advice to underpin the legal and conceptual framework for the sustainable utilisation of fisheries. Objectives: The objectives of this output class are to: Provide and improve a conceptual and legal framework for the sustainable utilisation of the fisheries resource. Participate in the development and review of international frameworks and implement the decisions in a domestic context. Provide services to the Minister of Fisheries. Scope: The outputs in this output class are: Evaluating sustainability outcomes: Monitoring the performance of existing fisheries policy against the purpose and principles of the Fisheries Act. Rights based framework: Work associated with the better definition of rights for fisheries rights holders. It covers commercial, aquaculture, Maori and recreational fishing rights. Ecosystems management framework: Development of fisheries management frameworks that are consistent with an holistic ecosystem management approach to oceans resource management. International frameworks: New Zealand fisheries management interests protected and promoted through the development and review of international frameworks and ratification of international arrangements. Input into other related government frameworks: Represent the perspective of the Ministry of Fisheries on related government agencies policy framework reviews. Ministeral servicing: Providing services to the Ministers responsible for Vote Fisheries and Vote Biosecurity - Fisheries. Biodiversity strategy: Implementing the biodiversity package approved in the 2000 Budget. 43

46 Achievements during the year Evaluating Sustainability Outcomes The Ministry has continued its work on developing a reporting system, and subsequently providing a report to the Minister on the state of fisheries within the aquatic environment using environmental performance indicators for fisheries and marine biodiversity. A series of draft performance indicators have been developed and released for internal review. This work was not completed by the target date of 30 June and will continue into the 2002/03 financial year to confirm outcomes and to develop suitable monitoring frameworks consistent with the revised strategic plan due for release in September Rights-Based Framework Non-QMS fisheries The non-qms working group concluded its role in assisting the Ministry to work through issues relating to non-qms management in The project has subsequently contributed to the prioritisation and cost benefit work supporting the introduction of new species to the QMS and identified areas for further policy development. Although it did not meet the target of 30 December 2001, a draft paper reporting on the progress of the non-qms review has been prepared. In June a discussion paper on management options for highly migratory species was developed for internal review. A paper on management options for highly migratory species will be released for external consultation. Maori rights framework The Ministry s internal work on the objectives, vision and obligations of the Treaty Strategy has been finalised. Review has been undertaken internally, and by independent experts. Hui with tangata whenua to discuss the strategy started in April (10 have been completed to 30 June 2002). Hui will be continued into 2002/03. Work has also started on identification of implementation steps. The Ministry reported to Cabinet on the level of allocation progress made by Te Ohu Kai Moana (TOKM) in April. TOKM has completed formal consultation on its initial proposal and has developed a preferred model. The Ministry commissioned an audit of TOKM s lease rounds and an independent analysis of submissions and the consultation process undertaken by TOKM. Advice to Government on assessment, approval and implementation of the proposal was provided in June. A joint application to lift existing legal restraints has been filed and will be heard on 30 July. Risk management Progress had been made in defining the risk categories and assumptions in fisheries management models, as well as processes for setting fisheries management objectives. A decision paper is being drafted to realign the risk project to take into account work undertaken on mapping fisheries management processes. Progress has been limited because of diversion of resources to the aquaculture project and the target of 30 June to finalise the framework was not met. The framework will now be completed in the 2002/03 financial year. Fisheries plans A further draft of the framework document was released prior to the SeaFIC Conference in May. Subsequently a stakeholder workshop was convened to obtain further input. A further revised framework is being peer reviewed internally this will be completed 30 September, slightly after the target date of 30 June Recreational fisheries Following a further consultation process convened by the Minister, Government deferred steps to develop legislation. Instead, on 24 November 2001, Cabinet approved a set of objectives and constraints to guide the development of a public consultation option prior to February Thus, while the target date of 30 December 2001 for providing policy advice to Government was met, development of the Bill did not proceed. A series of occasional papers dealing with the issues raised by stakeholders in the previous consultation process and the constraints determined by Cabinet have been drafted and will be distributed for external peer review. 44

47 Aquaculture The Ministry has worked intensively during the year on the process to improve aquaculture management in New Zealand. During the quarter ended 31 December 2001, the Ministry, working in conjunction with the Ministry for the Environment (MfE), supported the progress of six aquaculture reform papers through the Cabinet Committee process and Cabinet. Government decisions on the reforms were subsequently announced on 28 November. These decisions included the imposition of a moratorium on new resource consents for marine farms. The Ministry has since been working with stakeholders to explain the nature and impact of the moratorium and main reform proposals. By 30 June 2002, the Ministry working in conjunction with MfE and DoC, provided advice and support for the development of policy and drafting instructions for the Resource Management Act (Aquaculture) Amendment Bill. This involved obtaining approval from Cabinet for the Ministers of Fisheries and Minister for the Environment to jointly resolve all residual policy issues that arise during the development of the bill. Ministers made decisions on a substantial number of policy issues based on departmental advice. Officials noted that work was continuing on a number of additional policy matters including: Treaty of Waitangi issues; Resource Management Act coastal occupation charges; application of the fisheries undue adverse effects test; and controls on the transfer and release of freshwater fish. Work has been undertaken between departments and with local government to identify the steps to be taken to ensure the new legislation is implemented in a timely manner. Work during the first quarter of the 2002/03 financial year will focus on resolution of outstanding policy issues and supporting the introduction of the Resource Management Act (Aquaculture) Amendment Bill in September Ecosystem-Based Management Framework The Ministry has continued its work on developing a draft environmental strategy. A preliminary draft was circulated to key experts and stakeholders for review in late June. Informal discussions with key stakeholders continued over the quarter ended 30 June. International Frameworks Negotiations on the renewal of the US/Pacific states tuna treaty were successfully concluded in March Work required to complete ratification of the renewed Treaty will take place during the 2002/03 year. In August 2001, the first set of negotiations were held in Sydney to establish a Trans-Tasman Fisheries Arrangement to manage demersal stocks in the high seas. The second inter-governmental consultation on the South West Indian Ocean Fisheries Commission was held in Madagascar. The Ministry led the New Zealand delegation and promoted our objectives of sustainable fisheries management and providing access for New Zealand fishers. Ministry officials attended the OECD Fisheries Committee and progressed the key work area addressing trade measures and subsidies. A new project was developed to analyse the use of measures within International Fisheries Arrangements to combat illegal, unregulated and unreported fishing. 45

48 Input into Other Related Government Frameworks During the year, the Ministry continued its work with DoC and other agencies on the review of the Marine Reserves Act. Cabinet took policy decisions in November. Comprehensive comments on the paper were provided, together with briefings to the Minister. The Ministry has also provided a briefing to explain how customary fishing rights are recognised in the new Marine Reserves Bill. The Department of Conservation provided input into the briefing. The Marine Reserves Bill was introduced into the House in May Comment on the Oceans Policy is provided under the Biodiversity Strategy. Ministerial Servicing Of the 586 replies to correspondence prepared for the Minister of Fisheries, only 518 (88%) were completed within the timeframe (the requirement is 95% within 15 days). Twenty three of the replies required redrafting. This is an achievement of 96% - slightly below the standard of 97%. The Ministry received 116 Parliamentary Questions during the year, of which 106 (91%) were delivered on time. The standard requirement is for all responses to be delivered on time. No formal speeches were prepared, but requests for speech notes were completed within the required deadline. All urgent letters were responded to within the required 5 day timeframe. Select Committees were provided with advice as required and within the timeframes specified. The Ministry acknowledges that, although this was a better result than the previous year, there is still room for further improvement in the delivery of these services. Biodiversity Strategy The Ministry has continued its participation in the inter-departmental working group supporting the development of an oceans policy. During the year the Ministry: Contributed to a workshop debriefing stage one and planning for stage 2. Provided input to a Cabinet paper identifying a vision for oceans together with key areas for policy development in stage 2. Provided input into discussion on goals, principles, values and options for the scope of stage 2, along with associated governance arrangements. These discussions fed into two report back papers to Joint Ministers. In progress towards developing the standards and specifications required for the National Aquatic Biodiversity Information System (NABIS), the Ministry has: Completed the rescoping of the project and the development of a new vision. Reviewed existing documentation to identify databases containing potential information for layers to be set up in NABIS. Established an Environmental Information Officials Group to ensure co-ordination across information system projects (e.g. Terrestrial & Freshwater Biodiversity Information Systems, Environmental Performance Indicator Programme, the Coastal Resource Atlas and the National Aquatic Baseline Information System). Funded a biological testing programme provided to MfE as part of the MfE Marine Classification System. Worked on the development of a business plan for Geospatial Data Management and the Ministry s use of GIS. Developed a communications strategy. Distributed publicity material to a wide range of user groups. 46

49 The Ministry has also been actively engaged in progressing the Government s Biodiversity Strategy through: participation in regular Biodiversity Chief Executives meetings and biodiversity officials meetings; development of a draft marine protected areas strategy, which was subsequently approved by the Ministers of Fisheries and Conservation for release to stakeholders; development jointly with DOC, MfE and MAF of a biodiversity website; completion of draft medium term research plans to provide baseline information on the biodiversity of marine communities and biodiversity of the Ross sea; and meeting with Ngai Tahu to scope a project and to review marine biodiversity goals at the regional level and agreeing that the project will proceed as a case study of the Waitaki catchment. Financial Performance Actual Actual Supp Actual as a Estimates % of Supp Estimates $000 $000 $000 $000 Revenue: 6,252 Crown 7,090 7, Other 1 0-6,254 Total revenue 7,091 7, Expenses: 1,118 Evaluating fisheries management outcomes ,124 Rights based framework 1,699 1, Ecosystem based framework International frameworks Input into other related government frameworks Ministerial servicing ,267 Biodiversity strategy 1,907 4, ,092 Total expenses 5,309 7, Surplus 1,

50 Output Class D2: Fisheries Information and Monitoring Description: Under this class of outputs the Minister of Fisheries purchases information provided through research and other services relating to the gathering and analysis of data about New Zealand s fisheries to support decisions about sustainable utilisation. Research costs represent: Existing projects which have been consulted on in past years. Proposed new projects. Objectives: The objectives of this output class are to: Provide the information required to ensure the sustainable utilisation of New Zealand s fisheries resources. Manage fisheries to produce the goal of sustainable utilisation by scientifically evaluating: - sustainable yields from fisheries resources; - the effects of fishing on the aquatic environment, including the viability of associated or dependent species; - the effects of fishing on the biological diversity of the aquatic environment; - alternative strategies for achieving the desired level of yield while avoiding, remedying or mitigating adverse effects of fishing on the aquatic environment; - analysis of relevant cultural factors that may need to be included in the management decision process; and - the specific measures needed to implement the appropriate management strategy. Scope: The outputs in this output class are: Planning and assessment processes: Covers the research planning process and the stock assessment process. The research planning process discusses, evaluates and prioritises research activity within specified research areas. The stock assessment process is concerned with updating the assessment of fish stocks through the application of information from databases and research. Fisheries resource research: Research to determine the size, age, growth, mortality and recruitment of particular fish species and the distribution and abundance of the fisheries resource in order to determine sustainable yields and assess risks. Ministry observer monitoring: The collection of biological data required for input into the stock assessment process in accord with the standards set by the Ministry s Science Team. Industry requested observer monitoring: Observer services provided at the request of the commercial fishing sector. Achievements during the year Planning and Assessment Processes The research programme for 2002/03 was approved by the Minister of Fisheries on 20 May 2002, inside the original date of 30 June The Fishery Assessment Plenary for fish stocks with a fishing year beginning on 1 April 2002 was published on 30 November, thus meeting the target date. The Fishery Assessment Plenary report for fish stocks with a fishing year beginning 1 October 2002 was published on 30 May 2002, inside the target date of 31 May

51 Fisheries Resource Research This covers fisheries research under the following outputs: Fisheries resource research Harvest level research Aquatic environment (commercial fishing effects) Aquatic environment (habitats/trends) People aspect research Monitoring harvest levels All fisheries research contracts were monitored and audited on an ongoing basis throughout the year in accordance with the specifications and standards. Ministry Observer Monitoring Independent catch effort and biological data is needed to verify the returns provided by fishers. In respect of services required by the Ministry, the observers collect information to standards required by the Ministry science policy group. Information is also collected by the observers for the Department of Conservation (particularly in relation to seabird mortality). A total of 3,037 observer sea days were provided for the year. Industry Requested Observer Monitoring In this output, the Ministry provides observers following specific requests from industry. A total of 2,486 sea days were provided for the year. Financial Performance Actual Actual Supp Actual as a Estimates % of Supp Estimates $000 $000 $000 $000 Revenue: 18,496 Crown 20,444 20, ,074 Other 1,024 1, ,570 Total revenue 21,468 22, Expenses: 766* Research planning and stock assessment processes 13,467 Fisheries resource research 14,680 15, ,067 Harvest level research 1,200 1, Aquatic environment (commercial fishing) Aquatic environment (habitats/trends) People aspect research Monitoring harvest levels ,354 Ministry observer monitoring 1,151 1, Industry requested observer days 992 1, ,230 Total expenses 19,937 22, Surplus 1, * Includes $93,000 for Education and information services previously shown separately. 49

52 Output Class D3 Regulatory Management Description: Services to develop guidelines, regulations and processes, which make the fisheries policy framework operational. Objectives: The objectives of this output class are to: Provide advice to support sustainable fisheries. Assess special fisheries access requests. Provide support for international fisheries arrangements. Advise on legislative and government regulatory processes. Manage the cost recovery process. Scope: The outputs in this output class are: Sustainability and utilisation measures: Reviewing sustainability and utilisation measures. It includes the process of preparing advice papers and consulting with stakeholders on the proposed changes to sustainability measures and controls. Management of impacts of fishing: Providing the capacity in the Ministry of Fisheries to undertake projects aimed at avoiding, mitigating and remedying the impacts of fishing on protected and other species. Assessment of management proposals: providing advice to the minister on access disputes between stakeholder groups where the two parties cannot agree on a solution. Supporting international arrangements: Participating in international fisheries arrangements. Particular areas of input include the South Tasman Rise, US/Pacific states fora, CCSBT, CCAMLR. Legislative implementation: Development of the processes required to put into effect changes in fisheries legislation. Customary Maori fisheries: Analysis of customary harvesting data. Mechanisms to manage the access rights for customary fishing and exercise guardianship over local fisheries. Processing notifications for the appointment of Kaitiaki. Processing applications to establish Taiapure and Mataitai areas. Setting standards and specifications: Developing fisheries management service standards and specifications for those fisheries management services that will be outsourced. Monitoring and auditing the service provider s performance against those standards and specifications. Cost recovery: A consultation process to determine how fisheries management costs are recovered from the commercial fishing industry. Achievements during the year Sustainability and Utilisation Measures In this activity, the Ministry utilises the information provided through the fisheries research projects to assist it in developing the advice papers to the Minister of Fisheries on sustainability measures required for the forthcoming fishing year. The Ministry s work culminates in two specific advice papers, one for the October fishing year and the other for the fisheries with an April season (eg rock lobster). These papers seek the Minister s approval for setting the total allowable catch and total allowable commercial catch for the relevant fishing years. 1 October 2001 measures: The necessary TAC, and TACC changes for the 2001/02 fishing year beginning 1 October 2001 were published in the NZ Gazette on 20 September The Ministry consulted with stakeholders on proposed regulatory amendments during the sustainability measures and management controls process. There were no regulatory amendments for the October measures. 50

53 1 April 2002 measures: No TAC/TACC changes were required to be gazetted for the fishing year commencing 1 April The following regulatory amendments were implemented on time for the fishing year commencing 1 April 2002: Fisheries (Reporting) Amendment Regulations 2002; Fisheries (Southern Bluefin Tuna Quota) Amendment Regulations 2002; Fisheries (Schedules 2, 5A and 6) Order 2002; Fisheries (Transfer of Functions, Duties and Powers to the New Zealand Seafood Industry Council Limited) Amendment Order 2002; Fisheries (Foreign Fishing Vessel) Amendment Regulations 2002; Fisheries (Commercial Fishing) Amendment Regulations 2002; Fisheries (Southland and Sub-Antarctic Areas Commercial Fishing) Amendment Regulations 2002; Fisheries (Challenger Area Commercial Fishing) Amendment Regulations 2002; Fisheries (Central Area Commercial Fishing) Amendment Regulations 2002; Fisheries (Amateur Fishing) Amendment Regulations 2002; Fisheries (Challenger Area Amateur Fishing) Amendment Regulations 2002; Fisheries (Auckland and Kermadec Areas Amateur Fishing) Amendment Regulations 2002; Fisheries (Central Area Amateur Fishing) Amendment Regulations 2002; Fisheries (Infringement Offences) Amendment Regulations 2002; Fisheries (Transitional Provisions) (No.2) 2001 Amendment Regulations 2002; Fisheries Act Commencement Order /02 Fishing year: An advice paper on Quota Management Areas, and other policy issues related to species to be introduced into Quota Management System on 1 October 2002 was submitted to the Minister on 4 October The Gazette Notice for 2002 introductions was issued on 19 October An initial position paper (IPP) on TAC/TACC and other policy issues related to species to be introduced into the QMS on 1 October 2002 was released on 24 May Management of Impacts of Fishing One of the aims of fisheries management is to avoid, mitigate and remedy the impacts of fishing on protected and other species. This output is about providing capacity within the Ministry of Fisheries to undertake projects and review regulations with the objective of achieving this aim. Advice was provided to the Minister on options to mitigate the effects of fishing on South Island populations of Hector s dolphins. After undertaking public consultation on these options, a final advice paper was provided to the Minister in late November 2001, outside the target date of 1 October. A revised draft of the Seabird National Plan of Action relating to increased observer coverage on seabird bycatch was completed on 12 September 2001 and circulated to stakeholders for comment. The Minister was provided with two briefing papers on seabird bycatch by fishing vessel SonRisa. It is expected that a final decision on the extent of increased coverage will be made in the first quarter of the new financial year. Although this is outside the target date, extended consultation was undertaken with stakeholders because of the possible significant economic impacts on commercial fishers the increased coverage could bring. A final operational plan for managing Hooker sealion trawl interaction in the SQU6T fishery was approved by the Minister and modified following further consideration of issues raised by sector groups. The plan was implemented during the third quarter of the financial year outside the target date of 1 December

54 Assessment of Management Proposals This output relates to the assessment of proposals for specific fisheries purposes under the Fisheries legislation. No new fisheries proposals arose during the year. Supporting International Arrangements New Zealand is party to various international agreements relating to fishing and fishing interests. This output is about the activities required to maintain those agreements. During the year, the Ministry was involved in: negotiating revised catch limits and management measures for the South Tasman Rise orange roughy fishery, an arrangement implemented via Ministerial exchange of letters and Gazette notice; contributing to development of NZ position on science, compliance, and organisational structure issues considered by the 2nd preparatory meeting for the Western and Central Pacific Fisheries Convention; and monitoring operations of NZ vessels fishing in Ross Sea under CCAMLR Conservation Measures. A requirement of the Ministry is that it monitors the legislation associated with the implementation of the United Nations Implementing Agreement (UNIA) for the conservation and management of straddling stocks and highly migratory fish species. During the year, the conditions to be imposed on high seas fishing permits for the fishing year commencing 1 May 2002 were completed. A total of 52 high seas fishing permits and 12 approvals under high seas permit conditions were processed. In addition, the Ministry was also involved in the preparation of advice papers for the NZ delegation attending the Forum Fisheries Committee meeting in April/May and then subsequent attendance at the meeting. Input was also provided into the Department of Conservation response to an Australian consultation paper on a possible proposal to list toothfish with the Commission on International Trade on Endangered Species (CITES). Legislative and Regulatory Processes This output relates to the provision of input into the statutory processes managed by other government or regional agencies which could impact on fisheries matters within the Ministry s range of responsibilities. The Ministry reviewed a draft Paua 7 fisheries plan and provided technical assistance to the planning committee analysing submissions on fisheries proposals for the Kaipara Harbour. In addition, as part of its obligations under the Resource Management Act 1991, the Ministry: lodged a submission on a resource consent application within required time frames; prepared final advice on concurrence request concerning the establishment of proposed marine reserves at Northwest Nelson (Glenduan), and North Taranaki (Paraninihi) and submitted for Ministerial consideration; completed consultation process associated with a request for concurrence for the establishment of a marine reserve at Waiheke Island (Te Matuku); prepared steps and timeline for processing a concurrence request concerning the establishment of a proposed marine reserve on the Wellington South Coast (Taputeranga), and submitted for Ministerial consideration; completed four commodity levy applications during the year; and made progress on developing a framework for documenting fishstock strategies. Work has begun on drafting the fishstock strategies. 52

55 Customary Maori Fisheries This output covers particular aspects of Maori fisheries and includes analysis of customary harvesting data and mechanisms to manage the access rights for customary fishing and exercise guardianship over local fisheries. During the year the Ministry: completed 2 applications under s186a of the Fisheries Act 1996; processed 17 Kaitiaki appointments; processed 8 requests for cancellation of Kaitiaki appointments; prepared a final decision paper for the Minister on the establishment of a taiapure-local fishery in Delaware Bay. This was subsequently approved and gazetted; and submitted an advice paper to the Minister regarding a Rapaki Bay Mataitai by-law. Setting Standards and Specifications This output is about developing fisheries management service standards and specifications for those fisheries management services that will be contracted. It also includes monitoring and auditing the external service providers' performance against these standards and specifications. During the year the Ministry negotiated and signed the four data management contracts with NIWA. These were signed on 13 September The Ministry had a target to publish database documentation for all formal research databases on the Ministry s external web site. During the year the research documentation for the 29 active research databases managed by NIWA was published on the website. In managing the catch effort database, the Ministry implemented stage 3 of the strategic plan for management of catch and effort information. This included: the introduction of new paua and eel forms into the reporting regulations; writing a debriefing document on lessons learnt during the design of the new forms; improving the explanatory notes for Catch Effort Landing Return (CELR) forms; changing the Fisheries (Reporting) Regulations to require reporting of non-itq discards; changing the Fisheries (Reporting) Regulations to clarify the definition of a landing for eel fishing; producing a CD of reference material useful for interpreting Catch Effort information; and improving access to pre 1989 trawling, lining and rock lobster potting data. As part of the process for managing the scientific observer data, the Ministry was required to negotiate and sign a new contract for the processing of biological data and samples from the Scientific Observer programme. This was completed in October Additionally, there was a requirement to audit the provision of data processing services for scientific observer data supplied by the external agency that is managing this data. The audit was carried out in the final quarter of the 2001/02 financial year and was largely satisfactory. Minor improvements were suggested for 8 areas and these were implemented before 30 June Cost Recovery The cost recovery levy order for 2001/02 was approved by the Governor-General on 17 September 2001 and the Gazette Notice was issued on 20 September This was outside the target date of 30 August A revised levy order was issued on 30 November 2001 correcting a calculation error in the original order. An amended levy order for 1 April 2002, incorporating the changes in TACs and TACCs approved by the Minister in September 2001 and changes in prices following award of fisheries research contracts, was approved by Cabinet on 25 February 2002 and Gazetted on 28 February. Indicative cost recovery levies for the 2002/03 year were distributed to stakeholders along with the draft business plan for 2002/03. The cost recovery plenary for the 2002/03 proposed levies was held on 31 May

56 Financial Performance Actual Actual Supp Actual as a Estimates % of Supp Estimates $000 $000 $000 $000 Revenue: 5,575 Crown 6,849 6, Other 2 0-5,576 Total revenue 6,851 6, Expenses: 1,526* Sustainability and utilisation measures 2,562 2, Management of impacts of fishing Assessment of management proposals Maintenance of existing international arrangements 720 Legislative and regulatory processes ,237 Customary Maori fisheries 1,087 1, Setting standards and specifications Cost recovery ,503 Total expenses 6,205 6, Surplus * Includes $63,000 for Education and information services previously shown separately. Output Class D4 Fisheries Access and Administration Description: Services associated with fisheries access including the: Issue of fishing permits and licences. Management of registry and recording systems. Objectives: The objectives of this output class are to: Issue permits, licences and leases for access to New Zealand s fisheries. Maintain the quota register. Manage the statutory reporting functions associated with approved access to fisheries. Implement the devolution of registry based and related services. Manage the Ministry s 0800 information service. Scope: The outputs in this output class are Management of access for fishing activities: Delivery and contracting of services that provide access to fisheries. Management of commercial property rights: The services under this output contribute to the management of commercial property rights. Devolution of services: Implementing the devolution of non-core government services. Delivery of registry services: The management of external contracts with registry delivery agencies to ensure statutory compliance and minimisation of risks to the Crown. 54

57 Achievements during the year Management of Access for Fishing Activities This output concerns the management of the processes relating to granting of access to fisheries rights. Special permits authorisations During the year: 27 special permit applications/variations were processed in accordance with the procedures set out in the Special Permit Manual. A national special permit database was established. Commercial authorisations During the year: A total of 2,008 permits were issued, with 75 (3.73%) issued outside time. The majority of the permits issued outside standard were issued in November as a result of staff being diverted to new monthly balancing processes, and in March as a result of a printing problem. These have been addressed and corrected. However, there was an error in a condition on 268 quota permits issued in September 2001 because of the introduction of the Fisheries Act This was identified in February 2002 and resulted in a reissue of those permits with the correct conditions in the same month. Tighter internal controls were implemented to prevent a reoccurrence of this error. 64 High Seas permits were issued in the year, with 4 (6.25%) outside standards. 141 ALC permits were issued, with none outside standards. In addition: 10 LFR licences were issued during September quarter with none outside standards. 515 vessel registrations were issued during September quarter with 5 (0.97%) outside standard. Both of these functions were devolved from 1 October Management of Commercial Property Rights This output covers the management of the fisheries property rights information databases. It should be noted that, following the introduction of the balance of the Fisheries Act 1996 from 1 October 2001, certain services previously performed under contract to the Ministry were fully devolved. For the period from 1 July 2001 to 30 September 2001: 1,220 quota trades were processed during the September quarter. There were no identified cases of a quota trade being processed and recorded on the register incorrectly. 44 quota trades (3.6%) were processed outside the one-day turn-around time. While this is slightly outside the 3% standard imposed, all were processed within 2 days. 4,783 Quota Management Returns were received and entered during the September quarter. Of the 3,021 returns received by the 15th of the month, 14 (0.46%) were not included in the next monthly balance report. Operation of the above functions was transferred to the Approved Service Delivery Organisation (SeaFIC) from 1 October For the period 1 July to 31 December 2001, monthly balance reports were required to be issued to quota holders within 6 weeks of the end of the month to which they pertain. This standard was met in each of the months. No monthly balance requests for review resulted from delivery agency error. From 1 January 2002, this service has been transferred to SeaFIC. Certain services continue to be performed by the Ministry as part of its operating functions. Each year the Ministry undertakes specific quota allocation processes for stocks which are to be added to the quota management system. There is a prescribed stock allocation policy for each of these stocks. 55

58 During the 2001/02 year, for the ten species approved to be introduced into the Quota Management System from 1 October 2002, the Ministry: signed off the stock allocation policy for 1 October 2002 and 1 April 2003 allocations; completed the validation of these allocations; completed the processing of objections to eligible catch; allocated catch based on provisional catch history for these species; and commenced the Catch History Review appeal period. Coromandel Scallops were entered into the QMS on 2 April A specific function is recovery of debts in accordance with the standards and specifications approved by the Chief Executive. For 2001/02, 69 debts (totalling $815,695) were passed to debt collectors. Forty-seven of these debts were resolved by way of full payment or arrangement. A further target is for all data on catch effort returns to be captured correctly in accordance with the standards and specifications approved by the Chief Executive. A total of 176,023 catch effort returns were captured in the year to 30 June Devolution of Services SeaFIC was appointed as ASDO in the first quarter of the 2001/02 financial year and was operational by 1 October Phase 2 of the new registry programme was begun during the year and progress is being made to have LFR, High Seas Permits, Special approvals and Mortgages (transitional mortgage registration in place) implemented by 1 October Delivery of Registry Services This output deals with the management of external contracts with delivery agencies and its purpose is to ensure statutory compliance with the terms and conditions of the contracts and that any risk to the Crown is minimised. The auditing and monitoring programme is complete and has been implemented. Any issues that have arisen as part of the contractual arrangements have been addressed by the relationship managers. Financial Performance Actual Actual Supp Actual as a Estimates % of Supp Estimates $000 $000 $000 $000 Revenue: 8,673 Crown 8,897 8, ,157 Other 707 1, ,830 Total revenue 9,604 10, Expenses: 999* Management of access for fishing activities 1,406 1, Management of commercial property rights ,353 Devolution of services 1,660 1, ,913 Delivery of registry services 6,114 7, ,479 Total expenses 9,463 10, Surplus * Includes $34,000 for Education and information services previously shown separately. 56

59 Output Class D5 Enforcement of Fisheries Policies Description: Services and processes that promote compliance with fisheries laws and lead to detection of those involved in illegal fisheries activities. Objectives: The objectives of this output class are to: Achieve the highest level of voluntary compliance with fisheries laws. Deter non-compliance. Scope: The outputs in the Enforcement output class are: Commercial - Monitoring and offence detection in all areas of commercial fishing activity. Customary Maori - Compliance activities in relation to people fishing for customary purposes. Recreational - Compliance activities of recreational fishers. International - Compliance activities relating to NZ fishing vessels operating in international fisheries areas and foreign vessels operating in areas of NZ interest. Poaching and blackmarket - Covers all poaching and blackmarket activity. Enforcement processes and systems - Training of Ministry staff to deliver on the new processes and systems required by the Fisheries Act Fisheries Officers Manual The targets in this output class refer to the operations being conducted in accordance with the provisions of the Fisheries Officers Manual. In fact the Ministry operates on a series of approved policy statements which are not formally incorporated into a single document. These approved polices form the basis of all fisheries enforcement operations. Achievements during the year Commercial Operational teams undertake on-going monitoring of the full range of commercial activity. Enforcement actions are taken on offences detected. Serious area misreporting detected in deepwater fisheries resulted in prosecution action. Compliance priority was given to encouraging improvement to the timely furnishing of harvesting returns and the issue of infringement notices for late returns. Customary Maori Information and education is provided to iwi and hapu on an on-going basis and forms part of the overall customary fisheries compliance programme. The main support provided to iwi and hapu is focussed on assisting with the implementation of customary fishing regulations. Recreational An infringement notices system was introduced on 1 October This complements educational initiatives and the development of educational material. Levels of support to the Honorary Fishery Officer network were improved with some reduction of HFO numbers. International All New Zealand vessels operating under international agreements are monitored for compliance with conditions of their approvals. Poaching and blackmarket Major enforcement operations were conducted in the poaching and blackmarket area. The Ministry s first undercover operation (Operation Pacman) exposed serious and widespread offending and resulted in a large number of prosecutions. The undercover operation also provided information to assist the assessment of levels of illegal harvest. 57

60 Other activities During the year, the Ministry participated in the establishment of the Maritime Intelligence Co-ordination Centre and contributed to the establishment of a Maritime Co-ordination Centre. The Ministry also supported Ministry of Defence reviews of aerial surveillance capability and the Navy fleet review. Full implementation of the 1996 Fisheries Act required the retraining of fishery officers during the year. Financial Performance Actual Actual Supp Actual as a Estimates % of Supp Estimates $000 $000 $000 $000 Revenue: 16,570 Crown 18,479 18, Other ,634 Total revenue 18,595 18, Expenses 7,415 Commercial offences 7,790 8, ,511 Customary Maori offences 2,630 3, ,671* Recreational offences 3,125 3, International offences ,100 Poaching and blackmarket offences 4,425 3, ,307 Total expenses 18,554 18, Surplus * Includes $426,000 for Education and information services previously shown separately. Output Class D6 Prosecution of Offences Description: Services relating to the prosecution of offences detected against fisheries laws. Objectives: The objective of this output class is to prosecute successfully those who have offended against fisheries laws. Scope: Case management is the sole output within this output class. It covers all activities relating to the management of specific cases including advocacy of internal and external providers. It also includes managing technical support for cases. Achievements during the year Management of Prosecutions All cases were initiated within the statutory timeframes (target 100%). 0.76% of cases presented to the Courts were dismissed due to a lack of prima facie evidence (the target requires that less than 5% are dismissed). There was a 94.15% success rate for cases prosecuted under the Fisheries Act (the target is a 90% success rate). There was a 88.5% success rate for cases brought under fisheries regulations (the target is a 60% success rate). 58

61 Financial Performance Actual Actual Supp Actual as a Estimates % of Supp Estimates $000 $000 $000 $000 Revenue: 2,651 Crown 3,793 3, Other 1 0-2,651 Total revenue 3,794 3, Expenses: 2,465 Management of prosecutions 3,609 3, ,465 Total expenses 3,609 3, Surplus Vote Biosecurity - Fisheries Output Class D11 Marine Biosecurity Advice Description: Services related to the management of risks to the marine environment. Objectives: The objectives of this output class are to: Provide policy advice on building a marine biosecurity system and contribute to achieving the Biodiversity strategy. This will include measures to prevent organisms arriving, detect organisms if they do arrive, respond to those incursions and manage pest species. Monitor compliance with New Zealand biosecurity requirements. Provide advice on regulatory measures for marine biosecurity. Scope: The outputs in this output class are: Policy Advice: the provision of policy advice to support the development of a biosecurity framework. Regulatory Advice: the provision of advice on regulatory matters to support the development of a biosecurity framework. Compliance: development and implementation of measures to ensure compliance with New Zealand s biosecurity requirements. Achievements during the year Policy Advice To promote the development and adoption of an international protocol for the management of ballast water discharge, officials from the Ministry of Fisheries attended the International Maritime Organisation Maritime Protection Committee meeting in London in March New Zealand s negotiating mandate was presented at the meeting. Input was provided into the inter-sessional work of Maritime Protection Committee on the treatment standards and ballast water exchange areas sections of the draft protocol, prior to the March meeting and the next meeting that is scheduled for September The Ministry has received positive feedback received from the Associate Minister for Biosecurity on advice relating to the values to be protected by marine biosecurity risk management. The values provide a context for the risk management framework for marine biosecurity. Draft risk assessment criteria have been developed. 59

62 To enable risks to marine biosecurity to be prioritised and resources deployed where most effective, the Ministry initiated the development of a Risk Management Framework for marine biosecurity. A contract to establish the framework was let, and by the close of the year a draft of the final report on Risk Management Framework had been received. As part of its requirements to undertake ongoing reviews of existing marine biosecurity arrangements (eg the Import Health Standard), to ensure these reflect current knowledge and risks to New Zealand, the Ministry has updated its pre-arrival ballast water procedures and held preliminary discussions with the Quarantine Service of the Ministry of Agriculture and Forestry on development of a training module for inspectors. Since its introduction to New Zealand in the mid to late 80's, Undaria has spread around the coast by natural dispersal and by human-mediated vectors. Given the high costs of attempting to eradicate Undaria, a vector management programme was initiated in January 2002 to slow its spread around the mainland and reduce the chances of it reaching remote locations. The programme focuses on vessels and marine farming vectors, and consists of: Dive surveys of vectors in a number of locations around New Zealand Distribution of educational material to vector owners and operators Collection of information on vector movements Development of vector management plans for the Chatham and sub-antarctic Islands. Work on developing risk profiles for marine species that may arrive in New Zealand is nearing completion. This work will provide a basis for informed risk assessment of the pathways by which these species could arrive in our waters, and prioritising further policy, regulatory, and research work. By the close of the year, work on the programme was well advanced, with draft codes of practice developed under vector management programme for Chatham and sub-antarctic Islands. The Ministry actively contributed to the development of a National Biosecurity Strategy, which was in a draft form at the end of the year. Regulatory Advice Fouling on vessel hulls is regarded as the most likely pathway for marine pest organisms to enter our waters. The likelihood of pests being introduced and spread in our waters are considered greatest whilst vessels are berthed and/or undergoing hull cleaning. The Ministry undertook public consultation on measures to control the cleaning of vessels, imposed by way of regulations made under the Biosecurity Act, to prevent the discharge of fouling material back into the sea. A discussion document was widely distributed and 73 submissions were received. By the end of the year the Ministry had completed an analysis of submissions, with a view to reporting the outcome of the consultation process to the Minister for Biosecurity and providing advice on measures to mitigate the risks associated with hull cleaning in the first quarter of the 2002/03 year. An Import Health Standard is in place requiring vessels to exchange foreign ballast water with high seas water before discharging ballast water in our ports. Ballast water clearance procedures were streamlined from March 2002 when a pre-arrival clearance procedure became operational for in-coming vessels. A review of ballast water reporting forms was undertaken, and new forms and instruction booklets were distributed to shipping agents and Quarantine Service offices of the Ministry of Agriculture and Forestry. A tender for the entry of data from reporting forms into a ballast water database was conducted, and will be concluded in the first quarter of the 2002/03 year. 60

63 Compliance Advice Ballast water related research was undertaken into the feasibility of contingency ballast water discharge areas within the territorial sea, and identifying worldwide areas for exchange outside areas of coastal influence. This research confirmed the high probability of discharged ballast being returned to the coast or retained in coastal gyres if discharged anywhere within the territorial sea, and that ballast water should be exchanged 85 to 200 nautical miles (nm) offshore and preferably beyond the 200nm as adopted by the IMO. Compliance with the ballast water import health standard was enforced by the Quarantine Service of the Ministry of Agriculture and Forestry, under contract to the Ministry. Preliminary discussions were held with the contractor on developing a training module for its inspectors. Biodiversity Strategy Detailed reporting on the implementation of biosecurity projects developed as part of the Government s Biodiversity Strategy has been undertaken through the Biodiversity process, with monthly updates to the Biodiversity Chief Executive s Group on progress against milestones. In addition, regular consultation occurred with other Biodiversity agencies. The main ports where ballast water is discharged to take onboard export cargo are the most likely places where new organisms will arrive in New Zealand waters, and first become established. Baseline surveys of marine flora and fauna in 7 main ports of entry for overseas shipping were undertaken, with further ports to be surveyed in 2002/03. A contract has been let for regular surveillance to commence in 2002/03 of the likely sites where new organisms will first become established. Work was completed on guidelines for acceptable hull cleaning facilities, including standards for the collection and disposal of the solid matter from vessel hull cleaning. Contingency plans have been drafted that will be activated in the event of a high-risk pest species in New Zealand waters. The wreck of the Seafresh 1 (which sank off the Chatham Islands in March 2000 with Undaria on it s hull) was monitored to confirm that the Undaria has been successfully eradicated. A treatment plan was put in place and Undaria has not been found since heat treatment was undertaken in June The monitoring and eradication programme will continue until the Ministry is satisfied that there is no further threat from this marine pest at this site. The Chief Technical Officer responded to a number of incursions of exotic and native organisms, including the discovery of Caulerpa taxifolia (a highly invasive weed) in Auckland Zoo aquarium. Financial Performance Actual Actual Supp Actual as a Estimates % of Supp Estimates $000 $000 $000 $000 Revenue: 2,252 Crown 3,153 3, ,252 Total revenue 3,153 3, Expenses: 711 Policy advice Regulatory advice Compliance advice Biodiversity Strategy 1,208 2, ,205 Total expenses 1,730 3, ,047 Surplus 1,

64 Statement of Resources For the Year Ended 30 June 2002 Human Resources Number Full time equivalents Female 101 Male 213 Total 314 Honourary Fisheries Officers 303 These officers operate in an educational role and provide active surveillance of recreational fishing activities to ensure recreational fishers comply with fisheries legislation Wage workers and seasonal staff are also employed Land and buildings owned Area (m 2 ) Number Commercial - Offices 1, Storage Land 7,384 4 Residential - House on separately saleable residential section Land and buildings leased Area (m 2 ) Number Commercial - Office 12, Storage 4, Land 2,835 Motor vehicles owned Number Sedan/Hatch/Station Wagon 46 Utilities/Vans 12 4 Wheel drive Vessels Number Patrol vessels used to protect, manage and enhance New Zealand s fisheries resource 20 62

65 Information Resources Research The Ministry owns a set of approximately 30 fisheries research databases. They are derived primarily from the information collected as a result of fisheries research projects and used essentially for stock assessment, environmental performance management, and policy evaluation. Examples are: A database of fish caught during trawl surveys by research vessels; A database of fish abundance detected by sonar during studies by research vessels; and Several databases of subsets of Catch Effort and Observer Trawl Catch Effort data that have been further groomed to improve their accuracy for stock assessment purposes. Specimen Collections Fisheries research specimen collections. An example is a collection of otoliths (fish ear bones) used for determining the age of fish. Catch Effort Derived from information supplied by commercial fishers describing what they caught, when, where and how. Theoretically has 100% coverage of commercial fishing in New Zealand. Time series extends back to Used for stock assessment, environmental performance management, policy evaluation, evidence of misreporting of catch effort and monitoring overall integrity of the fisheries management regime. FishServe is contracted to enter and groom the data. The Ministry operates the Catch Effort computer system and sets specifications and standards for the services provided by FishServe. Observer Trawl Catch Effort Derived from information supplied by Ministry observers stationed aboard commercial trawlers. The data describes what the vessels caught, when, where and how. This is theoretically more accurate than Catch Effort data but with a much lower percentage coverage. The time series extends back to It is used for stock assessment, environmental performance management, policy evaluation, evidence of misreporting of catch effort and monitoring overall integrity of the fisheries management regime. The Ministry carries out all aspects of the operation of this database. Quota Management Systems Fisheries utilisation management system comprising quota holdings, transfers, deemed values, vessel registration and permitting. FishServe owns these systems with data transferred daily to the Ministry. Compliance and Enforcement Information Information systems, including the Vessel Monitoring System and the Fisheries Intelligence Network to monitor fishing activity and assist in the detection of offences. Reference Files Reference files common to fisheries management systems, including species codes, client identification and vessel identification. Documents Fisheries management policy and decision making documents comprising word processing documents, spreadsheets and presentations. Accounting Financial information systems comprising general ledger, accounts payable and accounts receivable, bank reconciliations, fixed assets, report writing modules and time management systems. Human Resources Human Resources information database, payroll systems and report writer modules. 63

66 Terms and Definitions Used ACE Annual Catch Entitlement CCSBT Commission for the Conservation of Southern Bluefin Tuna. CCAMLR Convention for the Conservation of Antarctic Marine Living Resources. Cost Recovery The recovery from the commercial fishing industry of the costs incurred by the Crown to manage New Zealand s fisheries resources as a result of the existence or activities of the commercial fishing industry. Customary Fishing Either the Fisheries (Kaimoana Customary Fishing) Regulations 1998 Regulations or the Fisheries (South Island Customary Fishing) Regulations Deemed Values Charges for fish caught in excess of quota holding. EEZ Exclusive Economic Zone IMO International Maritime Organisation ITQ Individual Transferable Quota a property right within the Quota Management System giving the holder the perpetual right, which can be traded and transferred, to fish for a particular species. LFR Licensed Fish Receiver. Mahinga kai Places where customary food gathering is undertaken. Mätaitai Reserve An identified traditional fishing ground established as a reserve under either the Fisheries (Kaimoana Customary Fishing) Regulations 1998 or the Fisheries (South Island Customary Fishing) Regulations A mätaitai reserve may be managed by tangata whenua for non-commercial purposes, through bylaws approved by the Minister. Monthly Balances The difference between the amount of each species of fish caught by the quota holder and the total quota by species available to that fisher during the fishing year. OECD Organisation for Economic Co-operation and Development. Quota Management System (QMS) The means by which the Ministry of Fisheries manages the property right held by the fisher. Stakeholders Persons and organisations who have a shared interest in the utilisation of fisheries resources and the sustainability of those resources. These include: agencies and groups with interests in marine ecosystems and the fisheries environment recreational fishers commercial fishers and other members of the seafood industry. The nature of the special relationship between the Crown and Maori based on the Treaty of Waitangi acknowledges the particular interest the Maori have in the utilisation of fisheries resources and their sustainability. Sustainability The capacity of fisheries resources to meet the reasonably foreseeable needs of future generations. TAC Total Allowable Catch. The amount of fish able to be taken in any one year without impairing the future sustainable yields of the resources. TACC Total Allowable Commercial Catch. The amount of fish able to be taken in any one year by the commercial fisheries sector. Taiapure Taiapure/Local fisheries are areas established under Part IX of the Fisheries Act 1996, where a committee nominated by the local Mäori community may recommend the making of regulations to manage all types of fishing. Tangata kaitiaki/tangata Tiaki/Kaitiaki Means any person or persons appointed under the customary fishing regulations to manage customary food gathering or a mätaitai reserve. UNIA United Nations Implementing Agreement. Utilisation Conserving, using, enhancing and developing fisheries resources to enable people to provide for their social, economic and cultural well-being. Quota A tradeable property right to harvest the particular species for which quota is held by the fisher. 64

67 Legislation administered by the Ministry of Fisheries As at 30 June 2002 Public Acts Driftnet Prohibition Act 1991 Fisheries Act 1983 Fisheries Act 1996 Fisheries (Quota Operations Validation) Act 1997 Fishing Industry Board Act 1963 Fishing Industry Board Repeal Act 2001 Maori Fisheries Act 1989 Marine Farming Act 1971 Ministry of Agriculture and Fisheries (Restructuring) Act 1995 Treaty of Waitangi (Fisheries Claims) Settlement Act 1992 Subordinate Legislation Regulations Fish Export Licensing Regulations 1982 Fish Export Processing Regulations 1995 Fish Levy Regulations 1976 Fishing Industry Board (Dissolution) Regulations 2002 Fisheries ( Jack Mackerel Quota) Regulations (No. 2) 1995 Fisheries (1997 Foveaux Strait Dredge Oyster Quota) Regulations 1997 Fisheries (Allocation of Individual Catch Entitlement) Regulations 1999 Fisheries (Amateur Fishing) Regulations 1986 Fisheries (Auckland and Kermadec Areas Amateur Fishing) Regulations 1986 Fisheries (Auckland and Kermadec Areas Commercial Fishing) Regulations 1986 Fisheries (Catch Against Quota) Regulations 1993 Fisheries (Central Area Amateur Fishing) Regulations 1986 Fisheries (Central Area Commercial Fishing) Regulations 1986 Fisheries (Challenger Area Amateur Fishing) Regulations 1986 Fisheries (Challenger Area Commercial Fishing) Regulations 1986 Fisheries (Commercial Fishing) Regulations 2001 Fisheries (Demerit Points and Civil Penalties) Regulations 2001 Fisheries (Foreign Fishing Vessels) Regulations 2001 Fisheries (Form of Transfer or Lease of Quota) Regulations 1993 Fisheries (Form of Transfer or Lease of Quota) Regulations 1997 Fisheries (Infringement Offences) Regulations 2001 Fisheries (Kaimoana Customary Fishing) Regulations 1998 Fisheries (Lake Ellesmere Eel Fishery) Regulations 1997 Fisheries (Licensed Fish Receivers) Regulations 1997 Fisheries (Order of Transactions) Regulations 2001 Fisheries (Record Keeping) Regulations 1990 Fisheries (Registers) Regulations 2001 Fisheries (Reporting) Regulations 2001 Fisheries (Satellite Vessel Monitoring) Regulations 1993 Fisheries (South-East Area Amateur Fishing) Regulations 1986 Fisheries (South-East Area Commercial Fishing) Regulations 1986 Fisheries (Southern Bluefin Tuna Quota) Regulations 2000 Fisheries (South Island Customary Fishing) Regulations 1998 Fisheries (Southland and Sub-Antarctic Areas Amateur Fishing) Regulations 1991 Fisheries (Southland and Sub-Antarctic Areas Commercial Fishing) Regulations 1986 Fisheries (South Tasman Rise Orange Roughy Fishery) Regulations 1998 Fisheries (Transitional Provisions) Regulations 1996 Fisheries (Transitional Provisions) Regulations 1997 Fisheries (Transitional Provisions) Regulations 1998 Fisheries (Transitional Provisions) Regulations 2001 Fisheries (Transitional Provisions) Regulations (No 2)2001 Amendment Regulations 2002 Freshwater Fisheries Regulations 1983 Freshwater Fish Farming Regulations 1983 Fisheries (Deemed Value and Notification of Balances) Regulations 2001 Marine Farming (Fees) Regulations 1997 Fisheries (South Island Customary Fishing) 65

68 Regulations 1999 Fisheries (South Tasman Rise Orange Roughy Fishery) Regulations 1999 Fisheries (South Tasman Rise Orange Roughy Fishery) Regulations 2000 Fisheries (Toothfish Catch Documentation Scheme) Regulations 2000 Notices Fisheries ( Commercial Quotas Allocation) Notice 1986 Fisheries ( Jack Mackerel Quota Allocation) Notice 1987 Fisheries ( Jack Mackerel Quota Allocation) Notice 1996 Fisheries (1997 Foveaux Strait Dredge Oyster Quota Allocation) Notice 1997 Fisheries (Appointment of Commercial Fisheries Services Limited as Place for Receipt of Returns) Notice 2002 Fisheries (Auckland Islands Squid Fishery Prohibition on Trawling for Squid) Notice 2002 Fisheries (Beach Cast Seaweed Area Prohibition) Notice 2002 Fisheries (Bluenose 3 Bycatch Trade-off) Notice 2001 Fisheries (Conversion Factors) Notice 2001 Fisheries (Cost Recovery Rules) Amendment Order 2002 Fisheries (Declaration of New Stock Subject to Quota Management System) Notice 1997 Fisheries (Declaration of New Stock Subject to Quota Management System) Notice 2001 Fisheries (Declaration of New Stocks Subject to Quota Management System) Notice 2002 Fisheries (Dunedin Commercial Fishing Restrictions) Notice 1983 Fisheries (Eastern Beach Temporary Closure) Notice 2001 Fisheries (Hastings Commercial Fishing Restrictions) Notice 1983 Fisheries (High Seas Fishing Notifications) Notice 2001 Fisheries (Interim and Annual Deemed Values) Notice 2001 Fisheries (Interim and Annual Deemed Values) Amendment Notice 2002 Fisheries (Jack Mackerel Quota Management Areas, Total Allowable Catches, and Catch Histories) Notice (No. 2) 1987 Fisheries (Lake Ellesmere Eel Quota Allocation) Notice 1997 Fisheries (Mount Maunganui Temporary Closure Green-lipped Mussels) Notice 2002 Fisheries (Nelson/Marlborough Dredge Oyster Fishery Season) Notice 1999 Fisheries (Northland Scallop Fishery Season) Notice 1998 Fisheries (Northland Scallop Total Allowable Commercial Catch) Notice 1998 Fisheries (Notification of Proposal to Establish Akaroa Taiapure-Local Fishery) Notice 2002 Fisheries (Quota Management Areas, Total Allowable Catches and Catch Histories) Notice 1986 Fisheries (Southern Scallop Fishery Season) Notice 1999 Fisheries (Squid Quota Management Areas, Total Allowable Catches and Catch Histories) Notice 1987 Fisheries (Total Allowable Catch) Notice (No. 2) 1997 Fisheries (Total Allowable Catches) Notice 1998 Fisheries (Total Allowable Catches) Notice (No. 2) 1998 Fisheries (Conversion Factors) Notice 1999 Fisheries (Foveaux Strait Dredge Oyster Fishery) Notice 2001 Fisheries (Nelson/Marlborough Dredge Oyster Fishery Season) Notice (No. 2) 1999 Fisheries (Notification of Proposal to Establish Whakapuaka Taiapure - Local Fishery) Notice 1999 Fisheries (Rock Lobster Total Allowable Catches) Notice 1999 Fisheries (Rock Lobster Total Allowable Commercial Catches) Notice 1999 Fisheries (Receipt of Mortgage Applications) Notice 2002 Fisheries (Southern Blue Whiting Total Allowable Catch) Notice 2000 Fisheries (Southern Scallop Fishery Season) Notice (No. 2) 1999 Fisheries (Total Allowable Catches) Notice 1999 Fisheries (Jack Mackerel Quota Management Areas, Total Allowable Catches, and Catch Histories) Notice

69 Orders Commodity Levies (Fish) Order 2002 Commodity Levies (Green-lipped Mussels) Order 2001 Commodity Levies (Nelson-Marlborough Dredge Oysters) Order 2001 Commodity Levies (Southern Scallops) Order 1996 Fisheries Act Commencement Order 1996 Fisheries Act Commencement Order (No. 2) 1996 Fisheries Act Commencement Order 1997 Fisheries Act Commencement Order (No. 2) 1997 Fisheries Act Commencement Order 1998 Fisheries Amendment Act Commencement Order 1990 Fisheries (Southern Scallop Fishery Annual Allowable Catch) Order 1995 Fisheries (Southern Scallop Season Variation) Notice 2001 Fisheries (Transfer of Functions, Duties and Powers to the New Zealand Seafood Industry Council Limited) Order 2001 Fisheries (Waikare Inlet Taiapure) Order 1997 Treaty of Waitangi (Fisheries Claims) Settlement Act Commencement Order 1992 Fisheries (Whakapuaka (Delaware Bay) Taiapure) Order 2002 Fisheries Act 1996 Commencement Order 1999 Fisheries Act Commencement Order 2001 Fisheries Act Commencement Order (No 2) 2001 Fisheries Act Commencement Order 2002 Fisheries (Cost Recovery Levies) Order 2001 Fisheries (Cost Recovery Levies) Amendment Order 2002 Fisheries (Cost Recovery Levies for Fisheries Services) Order 2002 Fisheries (Crown Contribution) Order 1999 Fisheries (Expiry of Southern Scallop Levy Provisions) Order 1996 Fisheries (East Otago Taiapure) Order 1999 Fisheries (Fishing Year for Freshwater Eel in Quota Management Area ANG13) Order 2001 Fisheries (Foveaux Strait Dredge Oyster Fishery) Decontrolling Order 1997 Fisheries (Hauraki Gulf Wetfish Controlled Fishery) Cancellation Order 1986 Fisheries (Lake Ellesmere Eel Fishery) Decontrolling Order 1997 Fisheries (Maketu Taiapure) Order 1996 Fisheries (Over-fishing Thresholds for Quota Management Stocks) Order 2001 Fisheries (Palliser Bay Taiapure) Order 1995 Fisheries (Porangahou Taiapure) Order 1996 Fisheries (Quota Operations Validation Appointment Date) Order 1997 Fisheries (Rock Lobster Total Allowable Commercial Catch) Order 1996 Fisheries (Schedule 5A) Order 2001 Fisheries (Schedules 2, 5A and 6) Order

70 Ministry Directory 2002 Head Office P O Box 1020, ASB Bank House, The Terrace, Wellington Phone: (04) Fax: (04) GBL House, 256 Lambton Quay, Wellington Phone: (04) Fax: (04) Feltex House, 156 Victoria Street, Wellington Phone: (04) Fax: (04) Kaitaia Office P O Box 143, Braidwood House, 5 Allen Bell Drive, Kaitaia Phone: (09) Fax: (09) Whangarei Office Private Bag 9013, 32 Herekino Street, Whangarei Phone: (09) Fax: (09) Auckland Office P O Box 3437, 4 Bond Street, Grey Lynn, Auckland Phone: (09) Fax: (09) Tauranga Office Private Bag 12031, 11 Nikau Crescent, Mt Maunganui Phone: (07) Fax: (07) Whitianga Office Private Box 267, 1 Monk Street, Whitianga Phone: (07) Fax: (07) Opotiki Office PO Box 65, 23 Church Street, Opotiki Phone: (07) Fax: (07) Hamilton Office P O Box 1408, Waikato Mail Centre 26 Devon Street, Frankton, Hamilton Phone: (07) Fax: (07) Gisborne Office P O Box 646, 142 Peel Street, Gisborne Phone: (06) Fax: (06) Napier Office P O Box 12034, Waghorne Street, Ahuriri, Napier Phone: (06) Fax: (06) New Plymouth Office P O Box 344, Police Station 31 Wynyard Street, Bell Block, New Plymouth Phone: (06) Fax: (06) Wairarapa Office P O Box 146, Public Trust Building, Chapel Street, Masterton Phone: (06) Fax: (06) Wellington District Compliance Office P O Box , 16 Armidale Street, Petone Phone: (04) Fax: (04) Nelson Office Private Bag 14, 118 Vickerman Street, Port Nelson, Nelson Phone: (03) Fax: (03) Christchurch Office P O Box 8324, 585 Wairakei Road, Christchurch Phone: (03) Fax: (03) Dunedin Office Private Bag 1926, 1st Floor, 45 Filleul Street, Dunedin Phone: (03) Fax: (03) Invercargill Office P O Box 1065, 1st Floor, 137 Spey Street, Invercargill Phone: (03) Fax: (03) Chatham Islands Office P O Box 72, Waitangi, Chatham Islands Phone: (03) Fax: (03) Internet homepage: Internet comms@fish.govt.nz Auditor Ernst & Young - On behalf of the Auditor-General PO Box 490, Wellington Phone: (04) Fax: (04) Banker WestpacTrust Banking Corporation New Zealand Government Branch PO Box 691, Wellington Phone: (04) Fax: (04)

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