IIFET 2000 Proceedings IIFET 2000 Cost Recovery and Fisheries Management in New Zealand Nick Wyatt Ministry of Fisheries New Zealand IIFET 2000 Proceedings Topics • Fisheries management measures • Fisheries services • Costs to be recovered from industry 2 IIFET 2000 Proceedings Purpose of Fisheries Act To provide for the utilisation of fisheries resources while ensuring sustainability 3 IIFET 2000 Proceedings Fisheries management in NZ • Commercial fishing under ITQ • Quota entitles holder to share of TACC • TAC and TACC set annually and generate ACE • TAC set with respect to Bmsy 4 IIFET 2000 Proceedings Fisheries services • Research • Compliance ➭monitoring ➭enforcement ➭education • Administration • Quota registry 5 IIFET 2000 Proceedings Delivery of fisheries services • Research Competitive tenders • Compliance ➭monitoring MFish ➭enforcement MFish ➭education MFish and industry • Administration MFish • Quota registry Industry 6 IIFET 2000 Proceedings Cost recovery • Resource rentals up to 1994 • Cost recovery from 1995 • Based on “avoidable cost” • Fiscal constraints 7 IIFET 2000 Proceedings Cost recovery s i c s n io e d y t r t n • Resource rentals up to 1994 s e u m d e n i g a1995m • Cost recovery from n o a r f m d n e r cost” e • Based on “avoidable e e v w o t c e e b r • Fiscal constraints k s t il n s o e l c t t d Li n a 8 IIFET 2000 Proceedings Catch value 1600 NZ $US million 1400 N'fld 1200 Norway 1000 Iceland 800 600 400 200 0 93 94 95 96 97 98 99 9 IIFET 2000 Proceedings Management costs 120 NZ $US million 100 N'fld 80 Norway 60 Iceland 40 20 0 93 94 95 96 97 98 99 10 IIFET 2000 Proceedings Cost as % of catch value 30% NZ 25% N'fld Norway 20% Iceland 15% 10% 5% 0% 93 94 95 96 97 98 99 11 IIFET 2000 Proceedings Management costs New Zealand 13% R esearch 33% C om p lian ce Ad m in 21% Q MS 33% 7% Iceland, Norw ay, New foundland 34% 59% 12 IIFET 2000 Proceedings NZ Management costs $US thousands 1 40 00 R e se arch 1 20 00 C o m p lian ce 1 00 00 A d m in 8 00 0 QM S 6 00 0 4 00 0 2 00 0 0 93 94 95 96 97 98 99 13 IIFET 2000 Proceedings Sum paid by industry $US thousands 25000 20000 15000 10000 5000 0 93 94 95 96 97 98 99 14 IIFET 2000 Proceedings Problems Ministry of Fisheries • High transaction and administration costs • Poor incentives to deliver services efficiently Industry • Compulsion to pay price unrelated to benefit • Monopoly nature of the provider (the Govt) 15 IIFET 2000 Proceedings Principles • Crown pays for public interest services • Beneficiaries pay for services to manage harvesting • People posing threat to the environment pay to remedy the threat 16 IIFET 2000 Proceedings Reforming cost recovery Change the processes under which services are determined and delivered 17 IIFET 2000 Proceedings Reforming cost recovery Change the processes under which services are determined and delivered Change the rules for charging levies • government delivers on its core role • rights holders can judge how non-core services may be best provided 18 IIFET 2000 Proceedings Management outcomes • Sustainability • Utilisation • What next? 19 IIFET 2000 Proceedings Management outcomes • Sustainability • Utilisation • What next? ➱Fisheries plans 20 IIFET 2000 Proceedings Management outcomes • Sustainability • Utilisation • What next? ➱Fisheries plans ➱Evaluation 21 IIFET 2000 Proceedings IIFET 2000 Cost Recovery and Fisheries Management in New Zealand Nick Wyatt Ministry of Fisheries New Zealand 22