DRAFT Road Map to 100 per cent Ownership of the Torres Strait Commercial Fisheries by Torres Strait Communities <Image to be inserted> Introduction The Torres Strait comprises hundreds of islands and reefs, with 18 islands currently inhabited and two communities located on the Mainland. The area produces seafood for local consumption and for sale in Australia and overseas. Marine resources are a staple component of the diet of Torres Strait Islanders and Aboriginal people in the region, as well as being central to traditional island culture and a primary source of income. Traditionally, Torres Strait Communities have always taken a wide range of marine species for subsistence and cultural uses, and their consumption of seafood remains one of the highest in the world. The people of the Torres Strait are a sea-faring people, travelling long distances in search of marine resources and trading with other islands and villages on the Papuan coast. The sustainable commercial exploitation of marine resources is considered crucial to employment and economic development in the region. The Torres Strait Protected Zone Joint Authority (PZJA) established by the Torres Strait Fisheries Act 1984 (TSF Act) is responsible for the management of all fisheries in the Torres Strait Protected Zone (TSPZ). The principal purpose in establishing the TSPZ and the Torres Strait Treaty (1985) is to acknowledge and protect the traditional way of life and livelihood of the Indigenous inhabitants of the area including their traditional (subsistence) fishing and their right of free movement. Fisheries are managed according to the objectives set out in the TSF Act: a) to acknowledge and protect the traditional way of life and livelihood of traditional inhabitants, including their rights in relation to traditional fishing; b) to protect and preserve the marine environment and indigenous fauna and flora in and in the vicinity of the Protected Zone; c) to adopt conservation measures necessary for the conservation of a species in such a way as to minimise any restrictive effects of the measures on traditional fishing; d) to administer the provisions of Part 5 of the Torres Strait Treaty (relating to commercial fisheries) so as not to prejudice the achievement of the purposes of Part 4 of the Torres Strait Treaty in regard to traditional fishing; e) to manage commercial fisheries for optimum utilisation; f) to share the allowable catch of relevant Protected Zone commercial fisheries with Papua New Guinea in accordance with the Torres Strait Treaty; g) to have regard, in developing and implementing licensing policy, to the desirability of promoting economic development in the Torres Strait area and employment opportunities for traditional inhabitants. Managing the Torres Strait’s marine resources in accordance with these objectives is critical to realising the full potential of Marine Resource sin the Torres Strait. Commercial fishing is one of the most economically important activities in the Torres Strait Protected Zone (TSPZ) and provides a 1 significant opportunity for financial independence for Torres Strait Island and Aboriginal people of the region. The Vision Economically efficient and sustainable Commercial Fisheries in the Torres Strait, 100 per cent owned and operated by Torres Strait Communities by <date>1. “Long ago there was a man, his wife, and their daughter living at Kagar (an area at the eastern end of Saibai). Every day the man went to the reef and shot fish. His wife and daughter used to search for crabs.” From Kasakuik a Saibai story This extract from the story of Kasakuik is representative of the significance of Marine Resources to Torres Strait Communities. It is a theme repeated many times in the stories told throughout the region. Marine Resources have and continue to play a critical role in the subsistence lifestyle of Torres Strait Communities as well as having important cultural significance. <Image to be inserted> Marine resources, and in particular commercial fisheries, provide key opportunities for economic development in the Torres Strait and as such they will be crucial to improving the wealth of Torres Strait Communities In recognition of the cultural and economic significance of the marine resources to Torres Strait Communities, there is a shared aspiration for all Torres Strait Commercial Fisheries to be 100 per cent owned and operated by Torres Strait Communities. The Road Map On 20 December 2011 the then Chair of the Protected Zone Joint Authority (PZJA) Senator the Hon. Joe Ludwig, stated that “The PZJA acknowledge the aspirations of the Traditional Inhabitants to increase their ownership in the Tropical Rock Lobster fishery”. This aspiration extends to all commercial Fisheries in the Torres Strait. This Road Map, agreed to by the PZJA, sets out the priorities and strategies that will ensure Commercial Fisheries in the Torres Strait progress to 100 per cent ownership by Torres Strait Communities by <date>. The Government has committed to Closing the Gap targets to remove disadvantage in Indigenous Communities. Despite the concerted efforts of successive Commonwealth, State and Territory governments to address Indigenous disadvantage, there have been only modest improvements in outcomes in some areas, with other areas either remaining static or worsening. The 2014 Closing the Gap Prime Ministers Report states that, no progress has been made against the target to halve the employment gap within a decade. 1 The date for achieving the Vision set out in this Road Map is for discussion by the PZJA 2 Economic Development, one of the key building blocks in Closing the Gap will enhance the region's wealth, by creating sustainable industries and increasing employment opportunities for Torres Strait Islander and Aboriginal people equivalent to the wider Australian community. As the Torres Strait’s most significant industry, Commercial Fisheries will make a significant contribution to the economic development of the region. It’s likely that enhancing the capacity of the Traditional Inhabitant Boat licenced (TIB) Sector will lead to some direct benefits for the regional and local Torres Strait economy. The resulting improved wealth will directly contribute to not only closing the gap in employment outcomes but also the gap in life expectancy in the region. Figure x: The number of Fishers participating in the TIB Sector will need to increase if the Closing the Gap targets are met. Torres Strait Islander and Aboriginal people first achieved recognition of their Native Title Rights in 1992, following the High Court of Australia’s landmark Mabo decision. Two decades later the High Court handed down its decision relating to Akiba on behalf of the Torres Strait Regional Seas Claim Group v Commonwealth of Australia. This decision provides legal recognition of the historic and cultural significance of marine resources to Torres Strait Islander and Aboriginal People and recognises a native title right to take fish and other marine resources for commercial purposes. Ailan Kastom is the body of customs, traditions, observances and beliefs of some or all of the Torres Strait Islanders living in the Torres Strait area, and includes customs, traditions, observances and beliefs relating to persons, areas, objects or relationships (Aboriginal and Torres Strait Islander Act 2005). Ailan Kastom is a central part of life in the region strongly intertwined around traditional, ancestral ties and respect for waterways, land, sea and the resources these provide. <Image to be inserted> Transitioning Torres Strait Fisheries to 100 per cent Torres Strait Community ownership will help work towards Closing the Gap targets in the Torres Strait while also acknowledge the cultural and Native Title significance of Commercial fisheries and the economic opportunities they provide. 3 Closing the Gap Economic Development Native Title The Vision: Ownership Economic independence Ailan Kastom This Road Map confirms the shared intent and goals of the PZJA for Torres Strait Commercial Fisheries. Achieving the Vision set out in this Road Map will require cooperation between government, Torres Strait Communities and the Commercial Fishing Industry. Future action to achieve the Vision will be guided by the Priorities and Strategies contained within this Road Map. Fisheries Allocation The Fisheries Research and Development Corporation (FRDC) Report Principles and Guidelines in Support of Fisheries inter-Sectoral Access and Allocation Decisions (2012) provides a useful summary of the issues associated with fisheries resource allocation. The report has now been adopted by the Australian Fisheries Managers Forum as a reference paper in the consideration of Fisheries Allocation issues. This Road Map does not attempt to duplicate the information contained in that Report. The challenge in allocating fisheries resources is to determine how access to an "un-owned" common property is shared among Stakeholders. The challenge is to balance the objectives and needs of different stakeholders while ensuring that the fishery remains ecologically and biologically sustainable. Stakeholders sharing fisheries resources often have different (and sometimes competing) objectives and needs, and in balancing the needs of stakeholders, it is important to also work towards maximising the flow of benefits to the overall community. It is important to note that allocation of fisheries resources is not associated solely with stock conservation but also the socio economic and cultural issues. FRDC 2012 states that fundamentally, the types of models [for allocating resources between sectors] fall into two overarching models: government/administrative models or market/economic valuation models. In the government/administrative model the government sets the objectives for allocation and drives the outcome (e.g. government buyouts). In the market/economic valuation models an established market is the driver for the transfer or trading of shares in the fishery between or within stakeholder groups (Individual Transferable Quota markets). These models are not mutually exclusive and may be used in combination at different times. 4 This Road Map contains a combination of priorities and strategies that cross the two models. This Road Map aims to increase Torres Strait Islander and Aboriginal people’s access to a market/economic model of allocation but has been developed with the understanding that the gap between the economic powers of each sector is such that some government or administrative measures will also be needed. 5 The Torres Strait Tropical Rock Lobster (Kaiar) Fishery The fishery is based on a single species, the ornate or tropical rock lobster (Panulirus ornatus). The Torres Strait Kaiar Fishery is currently the largest, in terms of take, value and participation in the Torres Strait. Tropical Rock Lobsters (TRL) are taken by hand or a short hand spear by divers working from dinghies. Most divers’ free dive on shallow reef tops but others use hookah (surface supplied air) to dive the large areas of open bottom in Torres Strait. Most fishing occurs during neap tides when currents ease and underwater visibility improves. The commercial fishing season is from 1 December to 30 September the following year (inclusive), with a peak in fishing occurring during March to August. The fishery is closed to Hookah Fishing between 1 December and 1 March. Current management arrangements in the Torres Strait Kaiar Fishery include a number of input controls aimed at limiting the total effort expended in the fishery. These arrangements include, limited entry for TVH operations, limits on the size of boats (20m)and boat replacement (see below), a minimum tail size of 115 mm or minimum carapace length of 90 mm for all commercially caught lobsters, tender limits on TIB sector operations, closed seasons (see above), and gear restrictions. The fishery comprises approximately 317 TIB licensed endorsed to operate in the Kaiar Fishery and 12 TVH primary vessel licenses with a total of 33 associated tenders. Australian Share of TAC TVH 55.53% 44.47% <Image to be inserted> TIB Figure X: current allocations of the Australian share of the TAC for Australian waters. As an article 22 Fishery under the Torres Strait Treaty, 25% of the TAC for Australian waters is set aside for fishers from Papua New Guinea. The remaining 75% allocated to the Australian fishing sectors are currently distributed at 55.53% for the TIB Sector and 44.47% for the TVH sector. In 2007 a voluntary buyout of licenses resulted in the removal of 13 TVH licenses and 29 associated TVH tenders from the fishery. In 2012 a voluntary buyout of licenses resulted in the further removal of one TVH license and one associated TVH tender from the fishery. Vessel replacement in this fishery is subject to the following conditions: Current Vessel 6m or less 6-10m 10-14m >14m Replacement Vessel 6m or less 10m or less 14m or less Same size or less than current vessel 6 The Torres Strait Prawn Fishery The Torres Strait Prawn Fishery (TSPF) is a multi-species fishery that operates in the eastern part of the Torres Strait. This is one of the most valuable commercial fisheries in the Torres Strait with just over 532 tonnes of product valued around $7 million taken in the 2012 fishing season (ABARES 2012). Brown tiger prawn (penaeus esculentus) and blue endeavour prawn (metapenaeus endeavouri) are the two key target species taken in the fishery, with red spot king prawn (melicertus longistylus) being a key byproduct species. The TSPF is managed under the Torres Strait Prawn Fisheries Management Plan 2008 and in accordance with the fishery’s Harvest Strategy. The TSPF has restrictions on the type of gear and boat that can be used and fishing is permitted from 1 March to 1 December each year with the number of days fished is limited through a total allowable effort cap. Current management arrangements in the fishery also include spatial and temporal closures in place for many reasons, including the protection of undersized tiger prawns to the protection of pearl shell beds and breeding populations of marine turtles. From December 2005 to February 2006, the Australian Government ran a tender process to fund payments for the voluntary surrender or reduction of fishing days in order to fully meet its obligations to PNG under the Torres Strait Treaty. The tender had the primary objective of surrendering 25 percent of the 9,197 days allocated in the fishery at the time. The days surrendered were to be held in trust to allow for PNG’s catch sharing entitlements under the Torres Strait Treaty. The tender process resulted in the removal of sixteen licenses from the fishery and the surrender of approximately 25 percent (2333 allocated fishing days) of total fishing effort. As part of this tender process, three licences that were held on behalf of Torres Strait communities were also surrendered and the revenue raised was kept in trust on behalf of communities (this revenue was later used in the restructure of Torres Strait Finfish Fishery and purchase of nonTraditional Inhabitant licences in that fishery).The Australian share of the Torres Strait Prawn Fishery is now 100 per cent allocated to, and operated by, TVH operators. Since the restructure of the TSPF, the PZJA decided to round up the overall effort cap to 9200 fishing days, allocating 6867 fishing days to Australian operators, 2070 fishing days to PNG operators and setting 263 days to be held in trust by the Australian Government. In accordance with the fishery’s Harvest Strategy, effort in the fishery is allocated for a maximum of three years and is currently set at 9200 days. Between the 2006 restructure and the 2011 fishing season, effort in the fishery had been decreasing, largely as a result of economic conditions. From 2011 to 2012 the total catch from the fishery increased by approximately 82 per cent (ABARES 2012). 7 The Torres Strait Beche-de-mer Fishery The Torres Strait Bêche-de-mer Fishery is an important commercial fishery to Torres Strait Islander and Aboriginal communities. In the Torres Strait Bêche-de-mer Fishery, participation is limited to Traditional Inhabitants with the exception of one long-term non-Islander operator who was active in the fishery prior to the introduction of licence limitation in the fishery in April 1999. Fishing for bêche-de-mer in Torres Strait is mainly by free diving from dinghies crewed by 2-3 fishers or by hand collection along reefs at low tide. Once collected, the animal is gutted, graded, cleaned, boiled, smoked and dried. This is a labour intensive process usually carried out on processing vessels or at shore based facilities. Bêche-de-mer are especially susceptible to overfishing because they are large, easily seen and collected and do not require sophisticated fishing techniques. As a result the Torres Strait Bêche-demer Fishery is subject to a suite of input and output controls aimed at preventing overfishing but also allowing Islanders to benefit from the use of bêche-de-mer stocks. Historically the fishery was based primarily on sandfish (Holothuria scabra), however its high market value, occurrence in relatively shallow waters made this species vulnerable to overharvesting. Consequently, sandfish were subject to excessive levels of fishing effort during the 1990′s and harvesting of this species has since been prohibited since early 1998. Prior to 2003, fishing focused on surf redfish (Actinopyga mauritiana), black teatfish (Holothuria whitmaei), white teatfish (Holothuria fuscogilva) and to a lesser extent, a couple of lower value species. In January 2003, following concerns of the sustainability of the high value stock, the quota for surf redfish and black teatfish was set at zero tonnes for both species, effectively closing the fishery for these two species. Management arrangements for the fishery include gear restriction, limits on boat sizes, limited entry to one TVH license, no take species and conservative TACs for some species 8 The Torres Strait Finfish Fishery (Spanish mackerel and Reef Line) The Torres Strait Finfish Fishery encompasses both the Spanish mackerel and Reef Line fisheries. The Finfish Fishery is already 100 per cent allocated to the TIB sector and it is included in this document for completion. The Torres Strait Spanish mackerel Fishery operates predominantly in the eastern Torres Strait, targeting the narrow-barred Spanish mackerel (Scomberomorus commerson) the main target species. Spanish Mackerel are fished by trolling, generally from dories/dinghies operating either to a primary vessel or by themselves. The majority of the catch is taken by a small number of commercial operators. The Torres Strait Reef Line Fishery is a multi-species fishery with a range of reef fish being targeted. The fishery focuses primarily on the highly valued coral trout (Plectropomus spp.), and mixed reef fish (Lutjanus spp. and Lethrinus spp.), and numerous species of rock cods (Epinephelus spp.). Finfish are generally taken by hand lines and since December 2005 the use of nets for commercial fishing has been banned throughout the Torres Strait Protected Zone (TSPZ) and the outside but near area. During 2007-2008 a voluntary buy-back of all TVH licenses was undertaken in the Torres Strait Reef Line and Spanish mackerel fisheries. This buy-back transferred all catch entitlements to the TIB sector. The Australian share of Finfish fishing entitlements is now 100 per cent allocated to the TIB sector. These entitlements are held in trust by the Torres Strait Regional Authority (TSRA) on behalf of Torres Strait Islander and Aboriginal TIB fishers. Entry into the fishery is limited to TIB fishers so as to maximise their economic development and employment opportunities, however non-TIB fishers can still participate in the fishery through leasing of annual catch entitlements and administered by the TSRA. Leasing arrangements include agreed conditions for fishing in the fishery including a Total Allowable Catch (TAC) and area closures. Finfish leasing revenue is re-invested into initiatives that provide a fisheries benefit to Torres Strait Communities and is distributed through the Finfish Quota Trust Revenue Grant. Currently, organisations from the four eastern communities of Erub, Masig, Mer and Ugar can apply for Finfish Quota Trust funding in accordance with TSRA’s Finfish Trust Account Policy. Re-allocation of the Australian share of finfish fisheries to the TIB sector has generated around $830,000 in revenue for investment in the local fishing industry. To date, the TSRA Board has issued seven grants from Finfish Quota Trust Revenue totalling around $530 000. The grants have provided funding to re-establish freezer operations and purchase equipment to increase participation in commercial fishing activities. 9 Progressing towards the Vision The PZJA has identified and committed to the implementation of seven Priorities to achieve the Vision for Torres Strait Fisheries. Priority 1: Work with and seek views of Torres Strait Communities in the implementation of this Road Map Strategy 1: Work with the Sea PBC, once established, and Native Title Holders for the Torres Strait Sea Claim Area for the implementation of this Road Map Strategy 2: Work with other TIB Sector and Torres Strait Community organisations for the implementation of this Road Map Lead Agency TSRA Completion date Ongoing TSRA Ongoing Priority 2: Develop and implement mechanisms that reallocate or support reallocation of resources within Torres Strait Commercial Fisheries to Torres Strait Communities. Strategy 1: Establish a Torres Strait Fishery Reallocation Working Group to work with industry and Torres Strait Communities to achieve the Vision of this Road Map. Strategy 2: Develop and implement a reallocation plan for each Torres Strait Commercial Fishery to meet the Vision of this Road Map. Strategy 3: Seek expert advice regarding reallocation mechanisms and how they may be incorporated into the management framework for Torres Strait Commercial Fisheries. Strategy 4: Ensure the management framework for the Torres Strait Commercial Fisheries includes mechanisms that reallocate resources to Torres Strait Communities. Strategy 5: Conduct an assessment of Management regime for the Torres Strait Prawn Fishery including an analysis of market mechanisms to promote trade in effort units. Strategy 6: implement a management regime/regulatory arrangements that promote trade in effort units to improve economic viability of the fishery as well as opportunities for Torres Strait Communities to participate in the trade. TSRA 01 July 2014 Working Group 01 July 2015 Working Group 01 July 2014 All PZJA Agencies Ongoing AFMA 01 July 2015 AFMA/TSRA 01 July 2016 Priority 3: Implement a regulatory environment that encourages participation by Torres Strait Islander and Aboriginal people in Torres Strait Commercial Fisheries. Strategy 1: Conduct an assessment of management regimes relating to the TIB Sector including an analysis of identified impediments and whether they can be amended or removed from the respective Torres Strait Commercial Fisheries. Strategy 2: Remove regulatory impediments to Torres Strait Islander and Aboriginal participation in the Torres Strait Commercial Fisheries. TSRA 01 July 2015 DAFF 01 July 2016 Priority 4: Maintain the supply from Torres Strait Commercial Fisheries of product to established domestic and international markets. Strategy 1: Support the continued participation of TVH fishers, if required, during and after the reallocation process. Strategy 2: Develop the capacity of the TIB Sector and Torres Strait Communities to meet market demands. AFMA Ongoing TSRA Ongoing 10 Priority 5: Monitor progress towards 100 per cent ownership of Torres Strait Commercial Fisheries by Torres Strait Communities Strategy 1: The Torres Strait Fishery Reallocation Working Group to report back to the PZJA Standing Committee twice a year on progress towards the reallocation target of 100 per cent resource allocation of Torres Strait Commercial Fisheries to Torres Strait Communities by <date>. Working Group Ongoing Priority 6: Ensure the Torres Strait Commercial Fisheries are managed sustainably for future generations of Torres Strait Islander and Aboriginal people. Strategy 1: Continue to monitor the status of Commercial Fisheries in the Torres Strait to ensure sustainable exploitation levels are not exceeded. Strategy 2: implement management arrangements that ensure sustainability of marine resources that are consistent with the reallocation processes of Torres Strait Commercial Fisheries. AFMA Ongoing AFMA Ongoing Priority 7: Establish a framework for the effective Community management of the Torres Strait Commercial Fisheries including the fishing entitlements owned by Torres Strait Communities Strategy 1: Conduct a feasibility assessment of frameworks for Communities to hold and administer fishing entitlements and allow communities to participate in market mechanisms created to promote trade in fishing entitlements. Strategy 2: Implement a legal framework to allow communities to participate in the market of fishing entitlements. TSRA 01 July 2015 TSRA 01 July 2016 11