An Economic Analysis of FRDC Investment in Theme 2: Habitat And Ecosystem Protection (Part A) 7 September 2012 Peter Chudleigh, Buyani Thomy and Jessica Lai Agtrans Research Project Number: 2011/504 Background The FRDC currently has five programs: 1. Environment 2. Industry 3. Communities 4. People development 5. Extension and adoption The Environment program (Program 1) in the FRDC’s RD&E Plan (FRDC, 2010) has four themes: Theme 1: Biosecurity and animal health Theme 2: Habitat and ecosystem protection Theme 3: Climate change Theme 4: Ecologically sustainable development The objective of Theme 2 is to minimise the effects of fishing, aquaculture, pollution, habitat destruction and land based activities and non-fishing occurrences on fish, aquatic habitats and ecosystems. Theme 2 of the Environment program is concerned with the effects of fishing and non-fishing activities on fish and their aquatic habitats. Changes in the broader environment directly affect the sustainability of regional habitats and ecosystems for aquatic species. The effects of degradation and destruction of habitat, sediment runoff and urban development affect aquatic ecosystems and the fishing and aquaculture operations they support. The outputs of these projects are aimed at assisting end-users to mitigate the adverse impacts of activities, developing and adapting technologies to reduce bycatch, reducing the impacts on threatened, endangered and protected species as well as the effects of fishing on aquatic habitats. The projects also provided information to the community to demonstrate improvements in the fishing and aquaculture industry’s performance. The first part of Theme 2 in the following evaluation focuses on habitat and water quality. Summary of Projects There are 19 projects in Theme 2 Habitat and Ecosystem Protection (Part A) included in this analysis. Table 1 lists the projects and Table 2 provides a summary of each project. Table 1: Projects Included in Theme 2 (Habitat and Ecosystem Protection Part A) FRDC Page 2 FRDC Project Title Project Number 1999/230 Inventory and assessment of Australian estuaries The toxicity and sub-lethal effects of persistent pesticides on juvenile prawns and a 2000/163 common inter-tidal seagrass species Analytical techniques for assessment of water quality, contamination and quality 2000/257 assurance in farmed Pacific oysters in SA Environmental flows for subtropical estuaries: understanding the freshwater needs of 2001/022 estuaries for sustainable fisheries production and assessing the impacts of water regulation Spatial arrangement of estuarine and coastal habitats and the implications for fisheries 2001/023 production and diversity Assessment of the importance of different near-shore marine habitats to important 2001/036 fishery species in Victoria using standardised survey methods, and in temperate and sub-tropical Australia using stable isotope analysis 2001/060 Characterising the fish habitats in the Recherche Archipelago, Western Australia Aquafin CRC - Atlantic Salmon Aquaculture Subprogram: system-wide environmental 2001/097 issues for sustainable salmonid aquaculture Aquafin CRC - SBT Aquaculture Subprogram: tuna environment - development of 2001/102 novel methodologies for cost effective assessment of the environmental impact of aquaculture Aquafin CRC - SBT Aquaculture Subprogram: tuna environment subproject 2001/103 evaluation of waste composition and waste mitigation Aquafin CRC - SBT Aquaculture Subprogram: tuna environment - development of 2001/104 regional environmental sustainability 2003/050 Linking habitat mapping with fisheries assessment in key commercial fishing grounds Relationships between fish faunas and habitat type in south-western Australian 2004/045 estuaries Understanding shelf-break habitat for sustainable management of fisheries with spatial 2004/066 overlap Aquafin CRC - Atlantic Salmon Aquaculture Subprogram: a whole-of-ecosystem 2004/074 assessment of environmental issues for salmonid aquaculture Aquafin CRC - SBT Aquaculture Subprogram: risk and response - understanding the 2005/059 tuna farming environment 2005/072 Water use across a catchment and effects on estuarine health and productivity 2005/081 Assessment of information needs for freshwater flows into Australian estuaries Tactical Research Fund: A review of the ecological impacts of selected antibiotics and 2007/246 antifoulants currently used in the Tasmanian salmonid farming industry and development of a research programme to evaluate the environmental impact of selected treatments FRDC Page 3 Table 2: Description of Each of the Projects Project 1999/230: Inventory and Assessment of Australian Estuaries Project details Rationale Objectives Outputs Organisation: CSIRO Land and Water Period: June 2000 to June 2005 Principal Investigator: Lynne Turner Most of the impacts on estuaries have resulted from the land use patterns of their contributing catchments. Understanding the trend and condition of Australia’s estuaries could provide a report card of the aggregate impact of land use activities across catchments on the natural environment as well as provide a framework for more strategic estuary management. Given the widespread nature of the problem, there was a need to take a national overview of the state of estuaries and identify mechanisms for restoring their health. 1. Determine, using readily available data, the state of ecological health of Australia’s estuaries. 2. Bring together in an accessible and comparable format across Australia, readily available data on estuarine health, diversity, impacts and management practices. 3. Develop and apply models that describe the processes driving particular estuary types and providing a specification for the nature of data to be collected on each estuary type. 4. Identify management regimes required for estuary types, assess current management and recommend improved management. 5. Develop a series of monitoring and assessment activities and protocols that will result in high quality information on the health of Australian estuaries, informs and evaluates management, and identifies research and development priorities. 6. Assist in the establishment of an Australia wide network of researchers, managers and policy makers that facilitates a greater understanding of estuarine natural resources. There were two major output categories for the project. 1. National Land and Water Resources Audit Report A classification of 979 Australian estuaries by the extent to which River, Wave and Tidal energy dominate the processes that drive estuary function and an outline of the implications for estuary management. An assessment of the condition and use of Australian estuaries within a pressure-state-response framework. Engagement of state and territory agencies and key community groups in assessing the health of their estuaries and the establishment of a framework to incorporate additional information on-line. Contributions to an information base to support estuary management through the development of the Oz Estuaries database, the Australian Natural Resources Atlas and the Simple Estuarine Response Model FRDC Page 4 (SERM). Outcomes Benefits 2. Where River Meets Sea (WRMS) Over 800 copies of the book have been sold The major outcomes of the Audit Report were as follows: Availability of data sets, defining Australia’s natural resources and trends in their use and conditions that facilitate effective policy decisions on the allocation and management of natural resources. Audit products that effectively demonstrate the linkages between land, vegetation, surface water and groundwater and the linkages between these natural resource issues and economic, social and environmental factors. Availability of a framework that uses compatible and readily accessible natural resource data in an integrated manner and widely used and accepted by natural resource management decision-makers. The major outcomes of the book, Where River meets the Sea: exploring Australia’s Estuaries were as follows: An increase in the awareness of estuaries, their processes and function, condition and management needs. The profile of estuaries as an important ecosystem has been raised both through the presence of the book in the general market-place and through the contribution it has made to outcomes such as the shortlisting of the National Estuary Package for a 2004 Eureka Prize. The book has penetrated the environmental management sector as indicated by a review in the high profile environmental management periodical Waste Management and Environment. The book has served as a publicity tool for those organisations involved in producing it as well as a public good exercise. Many useful networks were formed during the production process. As WRMS was a cooperative effort involving many participants, the process strengthened links between stakeholders and encouraged further cooperation. The book has served as a case-study for further projects which lend themselves to this type of treatment. The Audit report engaged agencies and groups from within Australia and catalysed a number of estuarine specific initiatives. These initiatives assisted capturing efficiencies in applying research findings, improved understanding of management imperatives, produced publicly available information on estuaries and encouraged effective involvement of community groups. The book played a role in capacity building through education and improved the status of fisheries in the eyes of the community. FRDC Page 5 Project 2000/163: The toxicity and sub-lethal effects of persistent pesticides on juvenile prawns and common inter-tidal seagrass species Project details Rationale Objectives Outputs FRDC Research Organisation: University of Adelaide Period: September 2000 to November 2006 Principal Investigator: Brian Williams A number of fishing industry sectors had identified pollution as one of the priorities for improvement. The toxic effects arising from exposure to chemical pollutants are frequently reported and contamination by these chemicals can lead to discrimination and/or rejection of the product in the marketplace. The need was for a properly funded study that examined the quality of inshore seawater in a defined area and from which links could be established between cause and effect. For the reasons set out below, the study proposed was seen as the first stage of a multi-stage process which was to enable the fishing Industry to understand where it stands currently as far as water pollution by organic chemicals is concerned and the impacts these chemicals might have on specific ecosystem components. 1. To determine the identity and concentration of insecticides in water samples taken seasonally from inshore nursery areas in Spencer Gulf, and also downstream from point sources such as creeks. 2. To determine the levels of adsorbed residual insecticides and herbicides adsorbed onto the <200 mesh fraction of top-soil, sampled from selected farms adjacent to recognised marine nursery areas. 3. To develop a GIS database identifying the land units adjoining Spencer Gulf likely to contribute wind borne soil to Gulf waters, together with point sources such as creeks and other discharge points that have the potential to contribute pollutants into recognised nursery habitats. 4. To determine the toxic and sub-lethal effects on juvenile prawns of the common persistent insecticides used in broad-scale agriculture and in local government pest-control programs. Other juveniles, such as blue crabs and an indicator scalefish, may be tested if time and availability of test organisms allows. 5. To determine the toxic and sublethal effects of a major persistent herbicide used in broad-scale agriculture on Zostera, a common intertidal seagrass species. 6. Having determined what organic pesticide pollutants are in the seawater and in conjunction with the toxicology data and the residue levels in soil, to then establish the probable mechanisms for their appearance in seawater and to recommend ways of mitigating the impacts. The objective here was to prepare and implement an extension program which communicates effectively the results and recommendations of the project to local coastcare groups, local government and appropriate agricultural industry groups and other stakeholders. A report highlighting: o The impact of urbanisation on seagrasses and their habitat Page 6 Various interactions in the intertidal zone o Photosynthesis in aquatic plants o Stress factors that can act upon Zostera o Herbicide usage, modes of action and half-lives o Spatial and temporal attributes of pesticide usage and transport mechanisms The report also made recommendations on how certain impacts could be mitigated. It was found that juvenile prawns and whiting are effective indicators of the potential impact of organophosphorus insecticides, but their effectiveness is limited by their availability for testing. The entry of chlorpyrifos into inshore marine environments may pose a threat to both Western King Prawn and King George Whiting juvenile populations in South Australia. More research is needed to fully ascertain the effects of organophosphorus pesticides on marine organisms in southern Australia. There were found to be significant concentrations of 2,4D-likeherbicides in most of the soil samples surveyed in this study; however conclusions regarding their impact on seagrasses are not conclusive. The proposed development of a database of sources of pollutants was not progressed due to the sensitivity of property owners over responsibility for persistent herbicides. The primary beneficiaries of this research were the Spencer Gulf prawn fishers with benefits flowing to other fishing industries in the Spencer Gulf, notably the blue crab and marine scale fisheries. The results could directly enhance management of the fisheries concerned. This project has taken the first step towards addressing the management of pollution in Spencer Gulf and provided a model for other areas and other pollutants in the future. The project: o Identified what organic pollutants are present in the water and adjacent terrestrial substrates o Suggested processes/mechanisms by which the pollutants entered the water o Identified what effects they cause in the marine environment by looking at the impacts on prawns and seagrass Fishers in the Spencer Gulf (including whiting, prawn and blue crab fishers) may potentially benefit from this research through further research that might identify methods for mitigating impacts of agricultural chemicals on the fisheries. However, no further research has been conducted at this stage and there are no other outcomes from the study. There have been no benefits from this research at this stage; however there may be some potential future benefit to fishery health if further research on mitigating impacts of agricultural chemicals on fisheries is conducted in the future. o Outcomes Benefits FRDC Page 7 Project 2000/257: Analytical techniques for assessment of water quality, contamination and quality assurance in farmed Pacific oysters in South Australia Project details Rationale Objectives FRDC Research Organisation: Flinders University Period: October 2000 to May 2005 Principal Investigator: Richard Bentham The second highest priority (environment) of Aquaculture industry sector in SAFRAB’s five-year R&D Strategy was the development of analytical methods to enhance shellfish quality assurance. The sixth highest priority (quality assurance) of the Aquaculture industry sector in SAFRAB’s five-year R&D Strategy was the assessment of suitable sites for coastal aquaculture. 1. To develop sensitive tests using polymerase chain reaction (PCR) to detect a range of viruses of direct significance to human health directly from shellfish. The range would include hepatitis A virus, Norwalk virus, Astrovirus, and Adenovirus. 2. Assessment of coliphage concentrations, and indicator microorganisms as reliable tools for assessment of faecal contamination 3. (Clostridium spp., Bacteroides spp. coliforms) in oyster tissues, and harvest water. 4. Assessment of faecal origin and contamination of oysters and harvest water by Gas-Chromatography/Mass Spectrometry analysis for steroid profiles. 5. To adapt developed biochemical markers in blue mussel (M.edulis) to oysters as indicators of stress from adverse environmental conditions of microbial and chemical origin. 6. Combination and correlation of the above analytical techniques to provide a comprehensive assessment of the extent of contamination of oysters and their harvest waters by pathogens of faecal origin. These techniques would be more reliable than current faecal indicator techniques and allow accurate determination of closure safety zones. 7. Identification and validation of reliable, cost effective monitoring tools for quality assurance of farmed oysters, leases and closure safety zones applicable to South Australian waters. 8. To develop methodologies for quality assurance with national applicability to the oyster farming industry. 9. Assessment of the correlation between the presence of enteric virus nucleic acid with coliphage determinations from shellfish tissue and harvest water. Page 8 Outputs Outcomes FRDC A report highlighting that the project successfully developed a suite of analytical techniques for the detection of faecal contamination in farmed pacific oysters. Novel detection methods for faecal sterols and a range of enteric viruses were major outputs from this research. The project focused on methods of assessing the contamination of oysters by human faecal contamination as current methods of using tests for coliform bacteria have been demonstrated to be unreliable indicators of enteric virus contamination. New techniques applied were Polymerase Chain Reaction (PCR) methods for enteric viruses, coliphage plaque assays and determinations of faecal sterols. A new and more rapid method for faecal sterol analysis was developed that was as sensitive as the current method. The method reduced sample processing time from 5 days to 24hrs. This new technique was able to detect reproducibly faecal sterols in oysters at concentrations of less than 1µg g-1 of tissue. Reproducible PCR methods were developed for Hepatitis A, Norovirus (G2), Enterovirus, Adenovirus and Astrovirus. Statistical interpretation of the comparison of results using different methods was limited due to a lack of supply of naturally contaminated oysters. Results indicated that positive coliform estimations are reliable indicators of faecal contamination, and that presence of coliphage in determinations is a reliable indicator of the presence of enteric viruses. It was also clear that negative test results for either coliforms of coliphage were not reliable predictors of the absence of enteric viruses. Ultimately analysis for specific viral contamination would be necessary to guarantee shellfish quality for export markets. The project was hampered by lack of access to positive contaminated shellfish especially from sources of human effluent so that there was some doubt as to whether negative coliform test results are strong predictors of the absence of enteric viruses. An important outcome of the project was the ability to detect virus particles at the levels indicated using real time PCR for all of the “of interest” enteric viruses without inhibition. The project was not able to come to definitive answers about any of the techniques, except that if E. coli are absent in samples then it will be highly likely that enteric viruses will be absent. As of 2010, to the knowledge of the Principal Investigator the tests had not been adopted by industry. The emphasis on depuration for oysters in the Eastern States had some influence on this. The oysters used in the study and field samples taken from oyster leases in South Australia had no evidence of viral contamination. A problem in the study was obtaining ‘naturally contaminated’ shellfish Page 9 Benefits from oceanic leases. The study demonstrated that viral and bacterial pathogens in SA oyster leases were of little public health significance. The study also demonstrated that it was possible if required to detect a single viral particle in a contaminated oyster (Richard Bentham, pers.comm., 2009). A collaboration was considered by the SeaFood CRC for an honours project in collaboration with SARDI. The project looks at detection of Norovirus in cattle and catchments as potential sources of contamination of estuarine oyster leases. The techniques used to detect viruses have been used in other health related projects, and in clinical diagnostic laboratories. The norovirus detection method was also used to assist in a disease outbreak investigation conducted by the Victorian Health Department. The study demonstrated that viral and bacterial pathogens in SA oyster leases were of little public health significance. Scientific contribution to techniques for detecting viruses in other projects and diagnostic laboratories. Project 2001/022: Environmental flows for subtropical estuaries: understanding the freshwater needs of estuaries for sustainable fisheries production and assessing the impacts of water regulation Project details Rationale Objectives Outputs FRDC Research Organisation: Department of Employment, Economic Development and Innovation, Queensland Period: July 2001 to July 2007 Principal Investigator: Ian Halliday Water reforms and state legislation were increasingly requiring water to be allocated to maintain downstream ecosystem health, one aspect of which was estuarine and coastal fisheries production. However, information on the role of freshwater in maintaining the productivity of commercial and recreational fisheries to assist with such decision making was lacking. 1. To develop a logical framework for investigating (i) the role of freshwater flow, and (ii) the effects of modified flows, on estuarine fisheries production. 2. To review the current knowledge of the relationship between freshwater flows and estuarine fisheries production. 3. To correlate historical flow and fisheries production data of subtropical Queensland estuaries. 4. To develop procedures for assessing the changes in estuarine fisheries production that result from water abstraction and regulation. 5. To develop and communicate guidelines on environmental flows for estuarine fisheries to water managers, water users, the fishing industry and the general community. Conceptual models of the life-cycle of selected fishery species were developed and how and when freshwater flows might affect these species life-cycles was super-imposed on to the life-cycles. A generic Page 10 Outcomes FRDC framework that could be applied to any Australian estuary was formalised. Commercial catches of fishery species in the Fitzroy River and Port Curtis estuaries of central Queensland were analysed as a case study. It was found that Barramundi and banana prawns were significantly influenced by summer flow and rainfall, and that barramundi catches were also significantly and positively correlated to flows lagged by three and four years, suggesting a recruitment effect. Recreational catches of summer whiting in central Queensland were positively influenced by summer freshwater flows two years previous. The age-structure of a number of species were analysed to determine if strong and weak year-classes persisted through time and were correlated with freshwater flow. It was found that year-class strength of barramundi and king threadfin was positively correlated with freshwater flow in spring and summer. It was found that barramundi growth rates varied significantly with freshwater flow, being faster at higher flow rates, which may be due to increased food available when flows deliver nutrients to the estuary. It was also found that freshwater flows significantly increase the growth rates of juvenile banana prawns. The information generated has had implications for water and fisheries management. For example, during extended low flow decades the size of estuarine fish populations are probably reduced as a consequence of successive years of low recruitment, and the populations would therefore be at greater risk from fishing pressure, water abstraction and other anthropogenic impacts. The findings have been of use in developing monitoring programs for water resource plans with respect to measuring estuarine health and also providing a framework for assessing the need for freshwater to flow to estuaries in areas outside the present study region. The protocol developed in 2001/022 for sampling the age-structure of the commercial sector of the barramundi fishery has been adopted by the Long Term Monitoring Program of Queensland Fisheries as the standard sampling protocol for barramundi on the east coast of Queensland. This allows more samples to be collected for a smaller cost than fishery independent netting (the previous protocol). While there was some previous knowledge on the influence of freshwater flows on estuaries, this had mostly been based on assumptions and little data was available. This project developed novel techniques to back date recruitment and compare it with flow events (included age pulses and signatures). The project results can be used for ecosystem based fisheries management that considers links and life cycles from the estuary to marine environments. Improved information can also be provided therefore on the economic value of environmental flows for fisheries. Page 11 Benefits The information has been used by Queensland water resource managers to assess the downstream risks of proposed upstream water development scenarios. This results in estuarine fisheries values being explicitly considered by water resource managers. At this stage this has only been undertaken for the Fitzroy River (which was the first water resource plan to be reviewed in Queensland). However, it has set a new benchmark for water resource planning and assessment and is likely to be used in other catchments. Similar studies have been undertaken in the Gulf of Carpentaria to support estuarine finfish fisheries, using the techniques developed in this study. Follow up projects provided estuarine fisheries-flow models to a national “Ecological Response Model” and used to develop a fisheries stock based model for barramundi Provided a conceptual framework for addressing the role of freshwater in estuarine fisheries production. This has been used by other scientists to develop research projects on the role of freshwater for fisheries production in temperate Australian estuaries and by climatologists reviewing the potential impacts of climate change. Demonstrated that annual monitoring of barramundi can be achieved by sampling fish at commercial seafood processes and provided evidence that barramundi populations are influenced by regional environmental factors. Both the sampling standard and the stock assessment have been adopted by the Department of Primary Industries and Fisheries. Project 2001/023: Spatial arrangement of estuarine and coastal habitats and the implications for fisheries production and diversity Project details Rationale Research Organisation: University of Queensland Period: January 2002 to March 2008 Principal Investigator: Gregory Skilleter Estuarine and coastal habitats, such as seagrass and mangroves, provide critical habitat for many species of juvenile fish and crustaceans. Past projects that mapped the extent of habitats such as seagrass and mangroves have not provided any clear understanding of how the changes in these habitats affect fisheries production. It was identified that an approach was needed that recognised that estuarine habitats are inter-connected and most fish and prawns use a combination of habitats during their life or even during a day. The EPA had also requested information on the patterns of distribution and abundance of nekton (fish, crabs and prawns) in different regions of Moreton Bay as part of their planning. FRDC Page 12 Objectives Outputs FRDC 1. Develop appropriate methods for determining relationships between the spatial arrangement of estuarine habitats (habitat mosaics) and their biota including fish, crustaceans and molluscs and more sedentary epibenthos (e.g. comparing the fauna of isolated seagrass with that of seagrass close to mangroves). 2. Document patterns of abundance and diversity of fish and decapods in different habitat mosaics from degraded and relatively undisturbed areas of estuarine embayments, in two latitudinally separated areas (Moreton Bay) and taking into account position within an embayment (e.g. western side versus eastern side versus southern side). 3. Increase understanding of fisheries-habitat links using a combination of standardised survey methods in Queensland and make comparisons with the results obtained in Victoria using the same methods and gear types. 4. Identify the relative importance of different nearshore habitats for key fish and decapod species from recruitment to older life-history stages and compare these results with those obtained for similar species and trophic groups in Victoria. Detailed surveys of the numbers and types of fish and crustaceans using different habitats were undertaken in Moreton Bay (southeast Queensland) over a 12 month period. The survey techniques used were consistent with a separate study being undertaken in Victoria at the same time (Project 2001/036 also funded by FRDC). There was also an investigation of whether the spatial arrangement of different habitats affected their value to nekton in Moreton Bay, including issues such as whether the proximity between seagrass and mangroves affected the value of the seagrass and whether the type of habitat linking mangroves to subtidal areas changed the values of the mangroves to nekton. It was found that Moreton Bay supports a rich and abundant assemblage of nekton using the shallow water habitats, and that similar numbers of species and individuals were sampled in western Moreton Bay and eastern Moreton Bay. These numbers were far greater than those recorded in Victoria. It was found that different communities of nekton used the mangroves and nearly intertidal seagrass with little overlap between the two habitats on either side of Moreton Bay. The first accurate maps showing the position of each of the major estuarine habitats across the gradient from shallow subtidal to terrestrial zones were developed. The distance and connectivity between seagrass and mangroves was an important factor in determining catches in a number of species, and also had a marked effect on the numbers and types of fish and shrimp using the seagrass. The presence or absence of mangroves in the intertidal zone may be a critical feature in maintaining patterns of increased biodiversity and Page 13 Outcomes Benefits biomass of fish assemblages in other near-shore habitats. Outputs of the project were provided to the Queensland State Government EPA at a time when there was a statutory review of Moreton Bay Zoning occurring. The fishers argued to keep some areas open, however they were unsuccessful in having the zones changed. Discussion on the results of this work with members of the Burnett Mary Regional Group for Natural Resource Management has led to development of plans for implantation of the methods and approaches for the assessment of fisheries resources in the Hervey Bay region. Overall, while the information provided was of ecological interest, it has had little management application at this stage as the scale was too small. To date there have been no significant benefits captured as a result of the study. However, potential benefits may be an improved likelihood of sustainable fishing in a region, without compromising environmental impact. Project 2001/036: Assessment of the importance of different near-shore marine habitats to important fisheries species in Victoria using standardised survey methods, and in temperate and sub-tropical Australia using isotope analysis Project details Rationale Objectives Outputs FRDC Research Organisation: Department of Primary Industries, Victoria Period: November 2001 to August 2005 Principal Investigator: Gregory Jenkins The role of habitats such as mangroves, seagrasses, and saltmarshes are recognised as critically important nursery habitats for a number of commercial and recreational fish species. However, the way species move between such habitats and times at which they use them was less well understood. 1. To increase understanding of fisheries/habitat links using a combination of standardised survey methods in Victoria and Queensland, and isotope analyses across southern Australia and Queensland. 2. To identify the importance of different near shore habitats for important fish species from recruitment to older-life stages, for individual habitats at broad scales and habitat mosaics at finer scales. 3. To improve the quality of data derived from isotope analyses by including a greater range of potential sources of primary production. 4. To understand the transfer of primary production from important habitats to food chains of fish that occurs outside that habitat, and also the sources of primary production for fish inhabiting habitat mosaics. 5. To integrate existing near shore habitat data-sets with detailed descriptions of fish/habitat associations in a spatial information system (GIS) that can be accessed by a variety of user groups. A basic survey of fish use of intertidal habitats was undertaken. It was found that mangrove habitats in temperate Australian waters support a Page 14 Outcomes Benefits richer juvenile fish assemblage than adjacent mudflats. A combination of experimental and survey methods was used to determine whether fish use of mangrove habitat varied between the mudflats, the edge of the forest and the interior of the forest. It was determined that differences in the number and types of fish among these zones suggest that the number of fish species may increase where habitat becomes patchy, as this creates relatively more habitat ‘edge’ however this could also have a negative effect on abundances and number of species of resident mangrove fishes. It was found that the numbers and variety of fish in seagrasses and mangroves went up or down with the distance between these habitats. Stable isotope studies were undertaken to better understand the structure of the coastal food webs, and the source of production through the food chain. It was found that across southern Australia the base for nutritional support of a fishery species depends strongly on the regions from which the fish was caught, and sulphur isotopes are a useful method of elucidating the most important source from a pool. The outputs from the study can be used to set a baseline of data against which disturbance effects can be assessed in the future. The data and information can be used when decisions are being made regarding the preservation of nursery habitats. The data and information may also be used in marine park designs. Future biodiversity and industry benefits related to appropriate identification of preservation areas and marine park zones. Project 2001/060: Characterising the fish habitats in the Recherche Archipelago, Western Australia Project details Rationale Objectives FRDC Research Organisation: University of Western Australia Period: December 2001 to December 2005 Principal Investigator: Gary Kendrick Fisheries WA identified that one of the major factors slowing development in WA aquaculture was a lack of accurate spatially explicit data on the distributions of benthic habitats and the influence of currents and windgenerated waves. This information was required to aid the selection of suitable offshore aquaculture facilities in the development of multiple use management plans. This investment was to fulfil the bio-physical requirements for that planning process. 1. To identify, classify and map the distribution of different benthic habitats in the Recherche Archipelago and link their distributions to bottom type and exposure to swells and currents. 2. To provide detailed ecological information to contribute to the responsible management of aquaculture fisheries in the region. 3. To increase community awareness of fish habitats through community involvement in the development of the planned biophysical surveys and through community and stakeholder consultation and presentations. Page 15 Outputs Outcomes Benefits An electronic GIS database accompanied by a series of hard copies of maps detailing the distribution and composition of benthic habitats in relation to the geology, topography and wave climate and oceanographic conditions. Interactive CDs, containing both video imagery and written descriptions that will facilitate easy understanding of the data by people without scientific training. Electronic databases and maps were supported by a written report that describes the habitats assessed, their distribution and the likely effects of oceanographic and geological features on the formation of those habitats. Results have been published in a series of peer reviewed scientific papers. The research will result in better knowledge of marine habitats, across a range of spatial scales from 100s of metres to 100s of kilometres. The database will be useful to government agencies, industry and community in locating areas for aquaculture and conservation to avoid conflicts from competing activities and set acceptable environmental impacts. From these data a spatially-explicit predictive model was developed where the type, density and diversity of the marine fauna could be predicted from the broader-scale knowledge of the distribution of seafloor types, habitats and currents. The database is available publically and has been used by the Department of Environment and Conservation and the WA Department of Fisheries (Gary Kendrick, pers. comm., 2012). The project led to a series of other projects (e.g. Coastal CRC, Geoscience Australia, Natural Heritage Trust) where information has been produced that has been used to address multiple use management issues (Gary Kendrick, pers. comm., 2012). Improved planning of multiple uses of offshore ocean resources including aquaculture. Project 2001/097: Aquafin CRC – Atlantic Salmon Aquaculture Subprogram: system-wide environmental issues for sustainable salmonid aquaculture Project details Rationale FRDC Project details Research Organisation: CSIRO Marine and Atmospheric Research Period: January 2002 to June 2006 Principal Investigator: John Volkman Atlantic salmon were introduced to Australia in the 1800s for the purpose of populating the rivers of Tasmania and New South Wales. The subprogram was developed to address a number of biological constraints and socioeconomic issues through a coordinated research effort to ensure economic and ecological sustainability and to develop the industry to its full potential. Page 16 Objectives Outputs 1. To acquire the necessary system understanding and knowledge, and apply it, in collaboration with industry and regulators, in order to support development of an adaptive management program which addresses system-wide impacts and production capacity for, and allows sustainable development of, salmon farms in the Huon Estuary and D'Entrecasteaux Channel. 2. To develop and implement 3-D hydrodynamic and ecological models of the Huon Estuary and D'Entrecasteaux Channel, and use these to assess and predict the environmental impacts of salmon farm nutrient loads in relation to other nutrient sources (especially catchments and marine boundaries), and to assess the level of connectivity and exchange between Huon Estuary and D'Entrecasteaux Channel, and among subsystems within the D'Entrecasteaux Channel. 3. To determine the role of sediments in estuaries and nearby channels as a source of nutrient release and oxygen consumption as an input for the modes and for comparison and processes occurring in sediments under fish cages. 4. To identify and quantify the key processes that link nutrient cycles with phytoplankton abundance and composition and determine the fate of the nutrients produced in finfish cage farms in waters of the Huon Estuary and D'Entrecasteaux Channel. The project measured ecological and physical indicators, including measurements of nutrients, to determine the effects of increased nutrients being released into the Huon and D’Entrecasteaux Channel. A process for system-wide monitoring of phytoplankton in a region was developed to ensure the collection, identification and quantification of phytoplankton was consistent between researchers and all industry collaborators. The project also focused on further developing and refining fully coupled 3-D physical and biogeochemical models of the Huon estuary and D’Entrecasteaux Channel that can be used to predict environmental effects of salmonid aquaculture on water and sediment quality, and to assess these effects in the context of other impacts (e.g. catchment loads, marine nutrient sources, natural variability). This earlier model had predicted that the estuary could assimilate a doubling of production, but that a fourfold increase ran a high risk of exceeding the carrying capacity of the system. The industry voluntarily introduced a moratorium on the amount of fish feed added to the estuary because of the predictions from the earlier modelling. However, it was determined that there could be further expansion in the nearby D’Entrecasteaux Channel. Project 2001/097 has continued to confirm and provide further complexity to these findings. The specific outputs of the project were: Development of a new cost-effective monitoring program. Adoption of agreed environmental objectives and standards by the FRDC Page 17 Outcomes FRDC salmon industry and Tasmanian regulator (DPIW). Fully coupled 3D physical and biogeochemical model of the Huon estuary and D’Entrecasteaux Channel that can be used to predict environmental effects of salmonid aquaculture on water and sediment quality, and to assess these effects in the context of other impacts. Baseline environmental data for subregions of the D’Entrecasteaux Channel. The model can be adapted and applied to other regions where salmon and tuna are grown. New knowledge and understanding of how phytoplankton and zooplankton in these areas respond to increases or changes in nutrient concentrations and other environmental conditions. The model allows industry and managers to identify the oceanic and terrestrial nutrient loads as distinct from those from aquaculture. Development of new laboratory-techniques to study biogeochemical processes involved with benthic-pelagic coupling such as oxygen consumption in, and nutrient release from, sediments. Mechanism for regular meetings of industry, regulator and research providers. Prior to the funding of this project, DPIW and the salmonid farming industry had agreed to adopt an adaptive management approach to regulation and management of system-wide environmental effects of salmon farms in the Huon Estuary and D’Entrecasteaux Channel. The model, monitoring techniques and baseline data developed have been adopted as a significant part of this adaptive management approach. The outputs have also helped to underpin decisions relating to industry expansion and to improve the knowledge of salmonid farmers with regard to the marine environment and interactions with farming. Before the project, the only compliance requirement in the regulations associated with monitoring were on sediment redox potential and organic matter content and were quite crude. The new model and monitoring data is important for decisions regarding the future size and location of the industry within the Huon Estuary and D’Entrecasteaux Channel. The project has instigated a mindset change in salmonid farms throughout Tasmania with respect to nutrient management and nutrient levels through raising awareness of the issues. Most other salmonid farming regions throughout Tasmania are interested in having such a model developed for their systems. However, significant additional data collection is required for these regions in order to apply the model effectively. In addition, such models are in demand for other systems not associated with salmon farming. For example, the framework for the Huon Estuary Page 18 Benefits and D’Entrecasteaux Channel is being expanded to the Derwent where it is being used with respect to other non-fishing industries. The information and processes developed could allow salmonid farmers to be more selective about their farm sites, promoting a higher level of sustainability of the industry. Project 2001/102: Aquafin CRC - SBT Aquaculture Subprogram: tuna environment – development of novel methodologies for cost effective assessment of the environmental impact of aquaculture Project details Rationale Objectives Outputs FRDC Research Organisation: South Australian Research and Development Institute Period: January 2002 to March 2007 Principal Investigator: Maylene Loo The Southern Bluefin tuna Aquaculture Industry has undergone rapid expansion since it commenced in 1990. In 2002/2003 the industry was Australia’s largest export fishing industry but in recent years production had levelled off and was affected by rising competition on the Japanese market. 1. To identify a range of benthic infaunal species and possibly ecosystem processes (sulphur reduction/methanogenesis) which are variously characteristic of sites ranging from heavily impacted (organically polluted) tuna sea-cages through to non-impacted (pristine) environments. 2. To develop a system for the rapid detection of selected taxa in sediment samples using PCR techniques. 3. To evaluate the extent to which rapid detection systems can be routinely applied to provide quantitative estimates of the relative abundance of indicator taxa or processes in sediments (and therefore of the health of seabed systems). 4. To assess the generality of the technique to other forms of aquaculture (particularly salmon). 5. To improve the sensitivity of the assays to levels comparable with terrestrial systems. 6. To develop PCR assays for 3 additional taxa. 7. To quantitatively calibrate all 5 assays (existing and new assays). 8. To demonstrate the "proof of application" of this methodology in comparison with traditional, manual enumeration methods. 9. To further clarify the phylogentic relationship in spionidae and evaluate the need for multiple spionidae assays. The project developed a system of rapidly assessing the environmental health of the seabed in the vicinity of SBT sea cages. The method involved extraction of DNA from sediments followed by quantification of key indicator taxa; an environmental compliance scorecard was also developed. The system provides an improved understanding of the interaction Page 19 Outcomes Benefits between aquaculture and its environment and allows greater confidence in meeting of regulatory requirements as well as optimising the productivity of SBT aquaculture. The system developed in this project is being used by the regulatory authorities in South Australia for routine environmental compliance monitoring. The system is rapid and cost effective and is the first DNA based technology used for routine marine environmental monitoring in the world. The method has application to other finfish aquaculture environmental monitoring requirements. The system reduced costs and improved reporting time as compared to the prior environmental monitoring program. The system was extended to the Yellowtail Kingfish (YTK) industry through project 2006/078. The system is still being used for both SBT and YTK industries as of June 2012 (Maylene Loo, pers. comm., 2012). Costs have been reduced further since the YTK extension due to the higher number of samples for both industries. The main benefit of this project is the application of both the DNA assay system together with the Environmental Compliance Scorecard system to the Tuna Environmental Monitoring Program, which is a compliance-based environmental monitoring program required as a licensing condition in South Australia. This DNA based system allows rapid assessment of environmental performance of individual farms at a reduced cost. Project 2001/103: Aquafin CRC – SBT Aquaculture Subprogram: tuna environment subproject – evaluation of waste composition and waste mitigation Project details Rationale Objectives FRDC Research Organisation: South Australian Research and Development Institute Period: January 2002 to July 2007 Principal Investigator: Milena Fernandes This project investigated the dynamics of waste production within southern bluefin tuna (SBT) pens in waters off Port Lincoln in the lower Spencer Gulf, South Australia, as well as the impacts associated with the release of these waters into the environment. While coastal aquaculture operations are known to be input sources of nutrients into the marine environment (e.g. uneaten feed, faecal matter, metabolic products), little was known about the composition or quantity of wastes released by SBT farms or the appropriate measures for managing or minimising environmental impacts. This project was necessary to promote environmental conditions that are optimum for both production and the health of the aquatic environment, ensuring access to sites and security of tenure for finfish farmers within an environmentally sustainable framework. 1. To determine the type and quantity of waste produced by sea-cage Page 20 2. 3. 4. 5. 6. Outputs Outcomes Benefits operations across a range of management and environmental regimes. To develop and validate a model or modify an existing model (e.g. DEPOMOD) of the waste dynamics of sea-cage operations incorporating information on stocking density, feed type and a number of environmental and management parameters to quantify the extent and intensity of localised impacts. To obtain information on the composition of the fouling community on and adjacent to tuna cages with reference to potential polyculture species with an assessment of their potential biological and economic viability. To develop a sampling program for benthic assemblages exposed to waste from tuna farming operations with reference to the efficacy of fallowing as a waste remediation process. This will form the basis for consideration of alternative waste mitigation strategies and for recommending improvements to environmental monitoring regimes. To test the potential of integrated farming in mitigation studies. This involves the use of benthic filter feeders (e.g. blue mussels), benthic surface feeders (holothurids and crabs) and bioturbators (e.g. stingrays, fish or native oysters). To evaluate potential applications of technological approaches (e.g. diapor systems) to waste mitigation. A final report and journal articles. Models for nutrient (phosphorous and nitrogen) inputs and outputs within tuna farms, including processes for recycling and transport. Information to quantitatively assess the impact from SBT farming that will provide greater certainty in planning and thereby secure tenure and access to sits for aquaculture industries in marine environments. An ability to model changes in waste under various management strategies that will allow predictions about the ecological consequences (and through this the risk to stock) of the application of new technologies or mitigation solutions. A better understanding of environmental issues associated with SBT farming, necessary to refine monitoring program, licensing and regulatory frameworks. Government bodies use this information to facilitate the development of a strategic approach to adaptive management, essential to warrant public support to coastal aquaculture developments. Improved monitoring of the environmental performance of cage aquaculture operations. The potential widespread adoption of sustainable aquaculture practices. Project 2001/104: Aquafin CRC – SBT Aquaculture Subprogram: tuna environment subproject – development of regional environmental sustainability Project details FRDC Research Organisation: South Australian Research and Development Institute Page 21 Rationale Objectives Outputs Outcomes FRDC Period: January 2002 to February 2008 Principal Investigator: Jason Tanner Southern bluefin tuna sea-cages are known to be sources of both particulate and dissolved waste and as with other finish farming operation, these have a potential risk to both farmed stock and supporting environments. A number of studies have been undertaken in an attempt to characterise the nature of impacts associated with tuna farming yet research tended to focus largely on impacts near cages, primarily dealing with fallout from cages. More mobile waste such as dissolved carbon, nutrients, fats and oils have the potential to disperse over a large area of affect highly mobile organisms such as sea birds and marine predators. Thus, there was a need to develop assessment strategies aimed at expanding understanding of the environmental implications of tuna aquaculture at regional scales. This would ensure the ecological sustainability of the industry as well as ensure reduced health risks to stock and allow for longer term industry planning and security of tenure. 1. Establish a steering committee of stakeholders and hold a SCFA-ESD reporting workshop to develop a set of operational parameters for regional scale ESD assessment. 2. Develop a set of methodologies for measuring and evaluating each of the parameters in order to provide an ESD assessment. 3. Using knowledge gained through this process and in consultation with stakeholders develop target levels for key parameters as a basis for effecting management responses. 4. In collaboration with researchers involved in the development of ecosystem scale models for salmon farming identify the key information/data required to parameterise and validate these models for the tuna industry. 5. Integrate the field and remote data collection systems, necessary to provide the data required for the parameterisation of these ecosystem scale models, into the regional ESD assessments. Report on the applicability of remote sensing for environmental monitoring in the region. Several recommendations on how this relatively new technology could be used. The project has developed a telemetred environmental monitoring system. A model of waste deposition on the sea floor. Provided the tuna industry, regulators and researchers with a suite of information on the environment around Port Lincoln at a regional scale and how this interacts with tuna farming as well as characterising environmental conditions. The telemetred environmental monitoring system is used on a regular basis by some industry members to help understand conditions on their leases. The model of waste deposition was made available to industry so that Page 22 Benefits they can examine likely waste deposition patterns on their individual leases, allowing them to place pontoons in an arrangement that minimises the interaction between adjacent pontoons. This waste deposition model, along with the nutrient model, have been further refined as part of FRDC project 2003/222 and they are now used by PIRSA (Department of Primary Industries and Resources SA) Aquaculture to help establish initial maximum stocking rates for aquaculture zones. The project has also generated the first quantitative data on how seabirds respond to tuna farms, and has shown that an economically important fraction of feed can be consumed primarily by seagulls if no measures are taken to reduce scavenging. The perceptions of a range of stakeholders as to the environmental risks associated with tuna acquaculture have been assessed and addressed by way of literature review. The immediate benefit of the creation of the modelling system is the ability to make estimates of the environmental carrying capacity of the Port Lincoln tuna farming zone that will enhance sustainability of the industry and its environment. The waste deposition model has also been made available to industry in a user-friendly form to allow operators to examine the potential consequences of pen locations resulting in more effective and efficient resource deployment. Project 2003/050: Linking habitat mapping with fisheries assessment in key commercial fishing grounds Project details Rationale Objectives FRDC Research Organisation: University of Tasmania Period: July 2003 to December 2006 Principal Investigator: Alan Jordan This project was to provide spatial information on abalone habitats in several key fishing blocks relevant to both site specific fishery independent abundance surveys and stock assessments at the block scale. These surveys and assessment were high priority issues in the Tasmanian Abalone Strategic Research Plan and a review of abalone research needs, reflected in the abalone FRDC project (2001/074) and ongoing abalone abundance surveys. This project will significantly contribute to this research by providing fine-scale maps of the biological and physical structure of abalone habitats which will help to optimise abalone abundance and population studies by having better criteria on which to select survey sites. 1. To map the fine-scale (1:5,000) biological and physical structure of rocky reef habitats in south-east and north-east Tasmania abalone fishing blocks. 2. To contribute to the survey design and outcomes of the FRDC abalone project (2001/074) and ongoing abalone assessment by linking information on reef and macroalgal extent and structure to abundance Page 23 Outputs Outcomes Benefits and population parameter assessments. 3. To further develop cost-effective techniques for fine-scale habitat mapping and classification. The primary output is detailed maps outlining the rocky reef habitat in key fishing blocks. Provision of spatial information on reef structure at a range of spatial scales. Information on the distribution and extent of urchin barrens. Progression of R&D in effective mapping techniques using singlebeam acoustic methodology. Provision of around 344 square kilometres of additional spatial information on seabed habitats. Development of cost-effective techniques for fine-scale habitat mapping and classification. An improvement to stock assessments by providing estimates of reef distributions and structure in both productive and currently ‘unproductive’ abalone fishing blocks, improved criteria on which to select survey sites and an enhanced ability to include information on physical and biological community structure as environmental variables in abalone stock assessments. Increased use of information in assessments relating abalone landings and biology (e.g. growth rates, size at maturity) with habitat structure at a range of spatial scales. Contribution towards a framework for a national habitat classification scheme. Improved access to fundamental information on habitat distributions for use in other fisheries (e.g. rock lobster, scalefish) and other programs (e.g. State of Environment reporting, coastal and oil spill planning, introduced marine pest surveys). Improvements in knowledge of the spatial extent of rocky reef habitats in several key abalone fishing grounds, which provides a better understanding of the fact that the structure and distribution of rocky reef habitat varies considerably. A significant increase in the usefulness of the Tasmanian node of the Australian Coastal Atlas and Oil Spill Response Atlas, both of which currently lack any significant subtidal habitat information. The wider community has access to better information on the link between the health of coastal habitats and fisheries production. Project 2004/045: Relationships between fish faunas and habitat type in southwestern Australian estuaries Project details FRDC Organisation: Murdoch University Period: June 2004 to January 2009 Principal Investigator: Fiona Valesini Page 24 Rationale Objectives Outputs Outcomes Benefits Since estuaries constitute such an important environment for many recreational and commercial fish species, plans for their management must be based on reliable data if they are to be useful in protecting and, if necessary, restoring crucial estuarine fish habitats. This project was necessary to underpin conservation programs. 1. Determine the suite of environmental criteria that are most useful for readily and quantitatively assigning any site in a particular estuary in south-western Australia to its appropriate habitat type. 2. Determine statistically how the compositions of the fish and benthic invertebrate assemblages in particular south-western Australian estuaries are related to habitat type. 3. Formulate a readily usable and reliable method for predicting which fish species are likely to be abundant at any particular site in an estuary. Succinct and quantitative details of the main physico-chemical characteristics of each of the habitat types found in selected southwestern Australian estuaries, and an inventory of the distribution of the different habitat types and their main fish faunas within and amongst those estuaries. A readily usable and quantitative method by which managers can identify quantitatively the habitat type to which any site in the selected estuaries belongs, and thus the likely composition of the fish and benthic invertebrate faunas at that site. An understanding of the ways in which the fish and invertebrate faunas are related to different habitat types and to each other. Details of the ways in which the distribution of the faunas change with respect to habitat type between seasonal extremes in estuary conditions. Ability to identify parts of estuaries that are most important spatially and seasonally for conservation purposes. A framework for ecologists to investigate the extent to which ecological inter-relationships differ among habitat types in estuaries. Potentially improved management strategies for conserving fish faunas and their key habitats in select estuaries in south-western Australia. Fisheries managers can interpret the information and take it into account in fisheries management. The WA Department of Environment and Conservation are interested in the knowledge for habitat type audits and are in the process of considering the method in developing marine reserve areas in the south coast of WA (Fiona Velesini, pers. comm., 2012). Enhanced conservation of fish habitats in WA estuaries as quantitative inventories of species will be available. More sustainable fish resources and protection of biodiversity. Project 2004/066: Understanding shelf-break habitat for sustainable management of fisheries with spatial overlap Project FRDC Research Organisation: University of Tasmania Page 25 details Rationale Objectives Outputs Outcomes FRDC Period: October 2003 to August 2007 Principal Investigator: Caleb Gardner This project addresses high priority strategic research areas identified by both state and national fisheries organisations. It is research that targets a high priority need across Australian fisheries for greater understanding of the effects of fishing activities on fish and their ecosystems. The necessity for research is compounded in shelf-break habitats due to the scarcity of information, the slow growth of many species in Tasmania implying less resilience to impacts and the interaction effects between different sectors that may compound impacts. 1. Define and map key habitats on the shelf edge (~80-180 fm) at key locations around Tasmania where fisheries using different gear types interact. 2. Evaluate their resistance and resilience to impact from fishing gears based using the semi-quantitative 'Ecological Risk Assessment' framework. 3. Detail the distribution of exploited shelf-edge species in relation to habitat features. 4. Evaluate ecosystem links within habitats based on trophic, temperature and current-flow data. 5. Evaluate using video to obtain stock assessment information such as abundance, sex ratio, condition and size of target species, primarily the giant crab. Key habitats were defined and mapped. An ecological risk assessment process was applied. It was a scoring process for potential risk or vulnerability against a series of attributes. The information collected on habitat distribution enabled a comparison between habitat types and the distribution of commercial species. A variety of target species were observed in videos and potential applications of the video data were highlighted, including quantification of gear selectivity and variation of model-based estimates of crab abundance. Habitat and bathymetry maps defining areas of special value to different sectors, while video were used to quantify the benthos in different regions. Additional information about species assemblages and environmental parameters (current profiles, sediments, temperature) was collected to assist in interpreting habitat maps in relation to exploited species. The principal outcome for this project was a shift in the management of shelf-edge based fisheries towards informed decision-making for spatial management based on benthic habitat and related ecosystem. This project provided information to assist in resolving conflict between crab fishers and trawlers competing over the same resource, and future issues involving interaction between different shelf-break fisheries. This resource formed the basis of management that both minimises Page 26 Benefits impact of fishing on habitat and reduces interaction with other sectors. Risk analysis showed that the bryozoan thicket was potentially at risk from trawling but not crab trapping. Improved fisheries management and reduced conflicts due to habitat and related ecosystem issues being taken into account in decision making. Project 2004/074: Aquafin CRC – SBT Aquaculture Subprogram: a whole-ofecosystem assessment of environmental issues for salmonid aquaculture Project details Rationale Objectives Outputs FRDC Research Organisation: CSIRO Marine and Atmospheric Research Period: June 2004 to July 2008 Principal Investigator: John Volkman The salmonid aquaculture industry depends on healthy and suitable marine environments to maintain production and profitability. Over recent years, the industry has faced a number of environmental challenges (e.g. algal blooms, jellyfish swarms, warm waters and high salinities). Salmon farms remain a significant point source of nutrients entering the marine environment. While stocking densities in Tasmania are generally lower than overseas, and expansion of the industry is currently curtailed, it is still important to establish a carrying capacity which fosters a healthy and productive industry and protects marine environmental values. DPIWE has expressed a particular need to understand nutrient budgets in salmon-growing areas to assess how many fish can be grown. Salmon farmers have expressed a specific industry need for early warning of the advent of a phytoplankton bloom, and early warning of the likely level of threat of the bloom. 1. Identification, characterisation and modelling of the key oceanographic and ecological features of the Huon Estuary and D'Entrecasteaux Channel and how these may affect or limit salmon cage farming, together with an assessment of possible industry responses. 2. Inventory of the sources of nutrients in this region, including those from salmon farms, their spatial and temporal variation, nutrient cycling, and impacts on pelagic and benthic production. 3. Definition of the factors driving the phytoplankton ecology of this region, especially interactions among phytoplankton and zooplankton (including jellyfish). 4. Determination of the role of carbon remineralisation in sediments with nutrient release into the water column in relation to the varying spatial and temporal environmental conditions. 5. Design of a new monitoring system and adaptive management strategy for use by industry and DPIWE together with definition of associated indicators and standards. A report outlining a whole of ecosystem assessment of environmental issues for salmonid aquaculture. Page 27 Outcomes Benefits The project established a detailed set of data that provides a clear picture of the environmental conditions in the Huon Estuary and D’Entrecasteaux Channel. The project established that the environmental conditions were generally good with occasional periods of high phytoplankton abundance and low dissolved oxygen. A 3D hydrodynamic, sediment and bio-chemical model to evaluate the environmental impact of salmonid fish farms. The major outcome of this project was a scientifically rigorous assessment of environmental issues associated with salmon farming in southern Tasmania. This information was made available to all stakeholders and provided the basis for ensuring the long-term sustainability of the industry as well as being an underpinning resource for decisions relating to industry expansion. This project provided salmonid farmers greater knowledge and understanding of the marine environment in which they have farms, with an emphasis on key aspects of the environment including phytoplankton and jellyfish blooms, and water quality attributes such as dissolved oxygen and nutrient status. A long term monitoring strategy was developed to ensure the sustainability of the salmonid industry. The proposed monitoring program is designed to provide knowledge of how well the ecosystem is function with an increased nutrient load and to detect significant trends in ecological indicators. Improved environmental management and monitoring that is lower in cost and more effective than that used hitherto. Project 2005/059: Aquafin CRC – SBT Aquaculture Subprogram: risk and response – understanding the tuna farming environment Project details Rationale FRDC Research Organisation: South Australian Research and Development Institute Period: June 2005 to September 2008 Principal Investigator: Jason Tanner Representatives of the tuna industry have expressed a clear need to understand the oceanography of the Port Lincoln tuna farming region in order to predict likely trajectories and effects of phytoplankton blooms and any instances of dirty water on tuna farming, enabling them to develop emergency management protocols for such events. They also need to identify the range of variation in environmental conditions in both the water column and sediments within the farming zone and how this might impact on farming practices, particularly if fish are to be kept for longer periods and if stocking numbers increase. In the event of an emergency (e.g. algal bloom, oil spill, disease outbreak), the industry needs to identify areas likely to be impacted and safer areas where pontoons might be relocated. Industry would also benefit from real-time weather and Page 28 Objectives Outputs FRDC oceanographic information being available at the farm site to optimize visits to the farms for feeding, maintenance etc. 1. Characterisation of the main oceanographic features of the tuna growout region at Port Lincoln through field studies and calibration of the three dimensional hydrodynamic model previously developed for salmonid farming in Tasmania. 2. Identification and description of dynamics of phytoplankton and benthic microalgal species, the factors causing algal blooms and the role, if any, of nutrients released from tuna farming. 3. Integration of phytoplankton and nutrient data into a 3D biogeochemical model for the Port Lincoln farming area that will allow movement of blooms etc to be predicted. 4. Refine description of variations in sediment type and assimilative capacity for organic matter including an assessment of the role of microbial and faunal communities in carbon remineralisation and nutrient release. 5. Application of sediment models to identify likelihood of sediments being resuspended and identification of factors affecting this together with an assessment of their role in algal blooms. Further development of the near real-time telemetered environmental observation system with web access. 6. To develop an integrated hydrodynamic and biogeochemical model of the Port Lincoln tuna farming area, that will assist managers and farmers to assess how external and internal disturbances are likely to move through the area, and thus allow them to make informed decisions on how to best mitigate the risks associated with any given disturbance, and to develop pre-prepared emergency management protocols for particular events. The primary output from this project was an integrated hydrodynamic and biogeochemical model of the Port Lincoln tuna farming area, which allows farmers and managers to assess how disturbances are likely to spread throughout the area. These disturbances include external factors, such as phytoplankton blooms originating outside the tuna farming area, oil spills, pollution events in Boston Bay, and sediment resuspension, as well as factors internal to tuna farming, such as nutrients from farming operations, and any potential disease outbreaks. Key outputs produced that underlie this model include: A hydrodynamic model for Spencer Gulf nested within a broader regional model. This will capture local currents and mass and energy transports as well as identifying the influence of off-shore upwelling and hypersaline plugs from the upper Gulf on local water movements. This has been used to examine the connectivity between farm sites, dispersion of nutrients, and the advection of pollutants and phytoplankton blooms. A 3D biogeochemical model for the region capturing the role of light, nutrients and other factors on phytoplankton abundances in southern Page 29 Outcomes Benefits Spencer Gulf. The outputs can quantify any contribution from tuna farming to phytoplankton blooms and help establish the carrying capacity for tuna farming in different sub-regions. Improved knowledge of phytoplankton blooms in the region and the factors (such as offshore upwellings, local events or nutrient release from sediments) that influence their development and advection within the region. A budget of nutrient flows from tuna farming in relation to overall nutrient flows in the region together with an assessment of their ecological significance. A model of sediment dynamics offshore from Boston Island which can be used to estimate the currents needed to resuspend sediments in different sub-regions of the tuna farming region. Environmental database (web based) for collation of environmental data to facilitate industry access. The model can be used to inform a mitigation strategy for any of these events should they occur – for example by allowing farmers and managers to determine where pontoons should be moved to in order to avoid the disturbance, and how they should be arranged spatially to minimize interactions between them. The model was discussed at a workshop with industry representatives to define the disturbance scenarios of most interest, and to then model these scenarios and produce an industry report outlining potential emergency management protocols related to moving pontoons that will allow farmers and managers to be prepared for these events in advance. Both SARDI & CSIRO will have the expertise to conduct more comprehensive scenario analyses in the future if required, especially in the event of an unforeseen emergency situation that threatens the industry. The model has not been used to date for any specific emergency purposes (Jason Tanner, pers. comm., 2012). Provides both the tuna industry and government agencies a comprehensive assessment of the likely impacts of tuna farming as well as a tool that can be used to examine the consequences of environmental disturbances. The ability to design a comprehensive regional environmental monitoring program. Project 2005/072: Water use across a catchment and effects on estuarine health and productivity Project details Rationale FRDC Research Organisation: University of Tasmania Period: June 2005 to July 2008 Principal Investigator: Christine Crawford The importance of quantifying the impacts of land-based anthropogenic activities on freshwater flows and consequential effects on downstream Page 30 estuarine and coastal water environments has been increasingly recognised in recent years. Nevertheless, extraction of freshwater for agriculture, town water supplies etc is increasing in many rivers across Australia. The ecological effects on estuaries and estuarine aquaculture and fishing industries of changing flow regimes is largely unknown in Tasmania, and Australia generally, and there is an urgent need to quantify the freshwater flow requirements essential to estuarine health and aquaculture production. Objectives Outputs Outcomes FRDC Similarly, there is limited information on the economic value of freshwater flows into estuaries. Consequently, there was a need to compare the economic efficiency of allocation of freshwater to land-based agricultural production with estuarine based shellfish farming and ecosystem goods and services. 1. To complete an investigation of environmental flow regimes required to maintain the health and production of oysters from the Little Swanport estuary through continued collection of environmental data under different flows and by the development of an estuarine model to predict the effects of different flow regimes. 2. To develop a set of economic accounts and an economic water evaluation framework and associated tools, using the Little Swanport catchment as a case study, to assess the value of freshwater to the various users across the catchment, including upstream agriculture, estuarine shellfish farmers and fishers and for non-market goods and services. A report detailing the ecological assessment of the estuary and the importance of environmental flows. Although a report on estuarine ecological data and freshwater flows was produced on data collected before the commencement of the FRDC project, a large quantity of relevant new data on estuarine ecology was collected during this project. This project produced a set of economic accounts for the value of water for different users across the catchment. A book, The value of water in a drying climate. The project provided data on environmental flows which informed the five-year review of the Water Management Plan for the Little Swanport estuary. The final plan was released in June 2006, with review commencing in 2011. The economic water evaluation framework methodology is of value to water resource managers across southern Australia who face similar issues of allocation of scarce water resources. Results from the project were communicated to key stakeholders through committee meetings, at annual meetings of the LWA Environmental Water Allocation Program, at annual TAFI research reviews, at public meetings and scientific conferences. Progress reports have been provided to the Little Swanport Catchment Management Committee and an article written for the LAW Rip Rap Page 31 Benefits magazine. The book, The value of water in a drying climate, will provide results to stakeholders and to a much wider audience than originally planned. The outputs also supported another outcome of increased stakeholder and community awareness of the environmental and economic benefits and costs of providing freshwater flows to the Little Swanport River, to primary production and to the estuary. This information will inform sustainable management practices within Little Swanport and other catchments in south-eastern Australia. Information on water use, water storage and extraction for agriculture across the catchment as well as knowledge of environmental flows has informed decision-making regarding water management. Better understanding of how the catchment functions economically and socially. Project 2005/081: Assessment of information needs for freshwater flows into Australian estuaries Project details Rationale Objectives Outputs FRDC Research Organisation: CRC for Coastal Zone Estuary and Waterway Management Period: November 2005 to July 2006 Principal Investigator: David Scheltinga Even though there was already a significant body of research on the effects of flows on freshwater ecosystems and estuaries, many of these did not focus on estuarine production. FRDC together with Land and Water Australia requested an assessment of the priority research topics on the effects of freshwater flows into Australian estuaries. 1. Create a logical framework showing the potential links between freshwater inflows and ecological responses. 2. Assess current knowledge about each of these links in Australian estuaries. 3. Identify the critical links where further R&D would provide maximum benefit. 4. Collate available information on current decision-making processes/frameworks for environmental flow management. A literature review and some interviews were undertaken, and resulted in a proposed conceptual framework comprising the sequential effects of freshwater inflows on the estuarine abiotic environment, the biotic environment and estuarine environmental values. Prior to the workshop a wide range of knowledge needs were identified, and at the workshop these were reduced to 52 knowledge needs (19 of high priority, 14 of medium priority and 19 of low priority). The high priority needs were then further prioritised by examining their benefit to the needs of managers, as well as their scientific or technical merit and benefit. Page 32 Outcomes Benefits The priorities were endorsed by a wide diversity of researchers, managers and policy analysts at the workshop. A report was produced that outlined general issues surrounding flows and estuaries, and included the prioritised knowledge needs. Initial agreement among key stakeholders in the research community on research priorities relevant to environmental flows and estuaries. Potentially improved coordination of research agendas of relevant bodies and research groups for each state and territory. Enhanced informal networks within the research and management communities and also across these two groups. An improved strategic position for Australian research into estuarine flows resulting in greater likelihood that future research will benefit both the fishing industry and Australian community. The project was followed by the funding by the National Land and Water Resources Audit of an Audit report on Estuaries. Benefits include more informed priority setting and coordination of research agendas, potentially resulting in more efficient use of research resources. Project 2007/246: Tactical Research Fund: A review of the ecological impacts of selected antibiotics and antifoulants currently used in the Tasmanian salmonid farming industry and development of a research programme to evaluate the environmental impact of selected treatment Project details Rationale Objectives FRDC Organisation: University of Tasmania Period: September 2007 to January 2009 Principal Investigator: Catriona MacLeod The Tasmanian salmonid industry was faced with several significant production issues necessitating increased use of antibiotics and antifoulants. The effects of these chemicals on the local ecology and ecosystem function are currently poorly understood and without evidence to the contrary, it is difficult for the industry to refute the perception that such chemicals have a detrimental effect on the environment. 1. Undertake a review of the international literature and current research to identify the existing state of knowledge regarding the environmental effects of antibiotics and antifoulants currently used or likely to be used in the Tasmanian salmonid farming industry. 2. Analyse local datasets on currently used antibiotics and antifoulants, collected in compliance with current licensing requirements, to determine what additional information is needed (if any) to appropriately evaluate the environmental impact of current management practices 3. Develop an appropriate and cost effective research proposal to obtain the necessary information to evaluate the impact of current management strategies and design an appropriate ongoing monitoring programme. Page 33 Outputs Outcomes Benefits FRDC This project provided a review of the currently available information on the antibiotics and antifoulants currently employed in the Tasmanian salmonid industry to determine the environmental risks associated with current management practices. It provided an evaluation of the existing monitoring data collected by the salmonid industry and government regulators as part of current licensing requirements. Finally, the project made recommendations regarding the need for additional research to evaluate the risks and impacts of antibiotics and antifoulants currently used in the Tasmanian aquaculture industry and outlined a proposal to undertake that research. Through review of the literature and assessment of the available data this project determined that there was a need for further research to evaluate the risks and impacts of antibiotics and antifoulants currently used in the Tasmanian aquaculture industry. The results from the current industry based monitoring focused on the detection of major effects where several areas of environmental concern were not covered and some results were inconclusive, consequently highlighting a need for additional research to better understand the local situation. This project has resulted in a more informed industry which is better able to engage with public concerns regarding their use of chemicals to manage health and production issues. An improved understanding of the environmental issues and risks associated with chemical use in aquaculture enables a better assessment of the appropriateness of selected chemicals and the ability to identify potential risks ensures that appropriate environmental safeguards and monitoring are established. Although the Tasmanian salmonid aquaculture industry will be the principal and most immediate beneficiary of this study, the findings will have a much broader application. Use of antibiotics and antifoulants already occurs at low levels in other aquaculture sectors; consequently the synthesis of existing knowledge and collection of benchmark information proposed in this study will be important in many other areas of Australia. Page 34 Project Investment The following tables show the annual investment by project for both the FRDC (Table 2) and for researchers and other investors (Table 3). Table 4 provides the total investment by year from both sources. Table 2: Investment by FRDC by Project for Years Ending 1999 to 2010 (nominal $) Project 1999 2000 1999/230 0 250,000 2000/257 0 0 2001/022 0 0 2001/023 0 0 2001/036 0 0 2001/060 0 0 2001/097 0 0 2001/102 0 0 2001/103 0 0 2001/104 0 0 2003/050 0 0 2004/045 0 0 2004/066 0 0 2004/074 0 0 2005/059 0 0 2005/072 0 0 2005/081 0 0 2007/246 0 0 0 250,000 Total Source: FRDC project management database FRDC 2001 0 71,322 0 109,094 179,137 183,021 0 0 0 0 0 0 0 0 0 0 0 0 542,574 2002 245,000 71,322 166,835 78,612 133,325 177,755 189,155 73,555 121,454 65,216 0 0 0 0 0 0 0 0 1,322,229 2003 2004 2005 0 174,433 80,934 143,855 130,489 62,362 153,972 -22,168 -25,821 120 81,877 0 0 0 0 0 0 0 780,054 0 0 86,026 0 55,369 32,517 308,561 108,249 124,737 -21,569 20,470 187,383 -180,000 0 0 0 0 0 721,743 0 70,787 86,732 0 55,369 48,517 0 1,656 -15,051 68,533 -4,165 42,962 212,826 238,405 0 -120,744 0 0 685,828 2006 0 -2,473 26,035 41,445 0 0 162,922 65,287 235,336 -22,729 0 101,994 63,468 89,266 251,881 126,121 20,000 0 1,158,553 2007 0 0 80,489 41,445 0 0 0 -42,252 31,457 0 0 89,911 105,902 92,991 192,974 173,700 0 0 766,617 2008 2009 0 0 0 0 0 0 0 38,715 4,164 0 43,028 51,524 -24,003 29,276 0 0 9,536 152,240 0 0 8,538 0 0 0 0 0 0 0 0 150,000 50,407 44,074 -3,644 0 0 15,768 265,143 2010 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 74,955 0 5,256 80,211 Total 495,000 385,391 535,589 414,451 553,689 504,172 814,610 184,327 510,828 93,735 98,182 615,278 304,127 440,733 470,486 254,032 20,000 30,560 6,725,191 Page 35 Table 3: Investment by Researchers and Others by Project for Years Ending 1999 to 2010 (nominal $) Project 1999 2000 2001 2002 2003 2004 2005 2006 1999/230 1,430,000 475,000 100,000 0 0 0 0 0 2000/257 0 0 228,408 53,047 54,200 0 0 0 2001/022 0 0 0 511,966 248,362 263,988 266,154 79,894 2001/023 0 0 105,919 105,809 104,163 0 0 0 2001/036 0 0 144,854 143,094 147,457 0 0 0 2001/060 0 0 416,498 230,223 234,107 0 0 0 2001/097 0 0 303,352 246,928 494,846 0 261,281 0 2001/102 0 0 0 168,593 84,656 0 0 0 2001/103 0 0 0 136,695 205,030 282,012 185,799 0 2001/104 0 0 0 585,738 653,116 687,616 712,457 0 2003/050 0 0 0 0 357,022 0 0 0 2004/045 0 0 0 0 0 264,535 171,542 176,687 2004/066 0 0 0 0 0 147,875 214,344 0 2004/074 0 0 0 0 0 0 505,641 529,072 2005/059 0 0 0 0 0 0 0 1,042,135 2005/072 0 0 0 0 0 0 0 210,897 2005/081 0 0 0 0 0 0 0 0 2007/246 0 0 0 0 0 0 0 0 1,430,000 475,000 1,299,031 2,182,093 2,582,959 1,646,026 2,317,218 2,038,685 Total Source: FRDC project management database; applicant and other investment based on project proposals. FRDC 2007 0 0 246,996 0 0 0 0 0 0 0 0 71,076 0 552,536 1,070,326 112,209 0 0 2,053,143 2008 0 0 0 0 0 0 0 0 0 0 0 0 561,893 936,664 0 0 90110 1,588,667 2009 0 0 26,199 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 26,199 Total 2,005,000 335,655 1,643,559 315,891 435,405 880,828 1,306,407 253,249 809,536 2,638,927 357,022 683,840 362,219 2,149,142 3,049,125 323,106 0 90,110 17,639,021 Page 36 Table 4: Annual Investment in Cluster (nominal $) Year ending June FRDC 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Total 0 250,000 542,574 1,322,229 780,054 721,743 685,828 1,158,553 766,617 152,240 265,143 80,211 6,725,191 Researchers and Others 1,430,000 475,000 1,299,031 2,182,093 2,582,959 1,646,026 2,317,218 2,038,685 2,053,143 1,588,667 26,199 0 17,639,021 Total 1,430,000 725,000 1,841,605 3,504,322 3,363,012 2,367,769 3,003,046 3,197,238 2,819,760 1,740,907 291,342 80,211 24,364,211 Benefits The investment in generating knowledge about fish habitats, estuaries and water quality has increased aquaculture and wild catch fisheries management capacity as well as research capacity. Improved fisheries management will improve environmental sustainability in turn leading to the maintenance of long-term commercial viability. Table 5 summarises the major benefits by category delivered by each of the projects. Table 5: Category of Benefit Delivered by Projects Project Potential contribution to sustainability of the estuarine and coastal water environment Scientific knowledge and capacity regarding fish habitats and stock assessment Project 1999/230: Inventory and Assessment of Australian Estuaries Project 2000/163: Pesticide impact on prawns and seagrass Project 2000/257: Water quality, contamination and quality assurance in oysters Project 2001/022: Environmental flows for subtropical estuaries Project 2001/023: Spatial arrangement of estuarine and coastal habitats Project 2001/036: Importance of different nearshore marine habitats Project 2001/060: Fish habitats in the Recherche Archipelago Project 2001/097: System-wide environmental issues for sustainable salmonid aquaculture Project 2001/102: Tuna environment – development of novel methodologies for cost effective assessment of the environmental impact of aquaculture ✔ ✔ ✔ ✔ Project 2001/103: Tuna environment subproject – Maintenance of commercial viability of wild catch fisheries associated with estuaries Contribution to cost reductions for, and development of, the tuna and salmon aquaculture industries ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ evaluation of waste composition and waste mitigation Project 2001/104: Tuna environment subproject – development of regional environmental sustainability Project 2003/050: Linking habitat mapping with fisheries assessment in key commercial fishing grounds Project 2004/045: Relationships between fish faunas and habitat type in south-western Australian estuaries Project 2004/066: Understanding shelf-break habitat for sustainable management of fisheries Project 2004/074: A whole-of-ecosystem assessment of environmental issues for salmonid aquaculture Project 2005/059: Risk and response – understanding the tuna farming environment Project 2005/072: Water use across a catchment and effects on estuarine health and productivity Project 2005/081: Assessment of information needs for freshwater flows into Australian estuaries Project 2007/246: Review of the ecological impacts of selected antibiotics and antifoulants used in the Tasmanian salmonid farming industry ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ Summary of Benefits Table 6 provides in a triple bottom line framework a summary of the principal types of benefits associated with the outcomes of the investment. Table 6: Summary of Benefits in a Triple Bottom Line Framework Economic 1. Maintenance of commercial viability of wild catch fisheries associated with estuaries Environmental 3. Potential contribution to sustainability of the estuarine and coastal water environment Social 4. Scientific knowledge and capacity regarding fish habitats and stock assessment 2. Contribution to cost reductions for, and development of, the tuna and salmon aquaculture industries The benefits identified above have been classified into subjective beneficiary categories and a subjective estimate of their magnitudes in Table 7. Table 7: Categories of Benefits from the Investment Industry Spillovers Other industries Economic Public 1. *** 2. *** Environmental Social *** Major contribution 3.*** 4.** ** Some contribution * Minor contribution Public versus Private Benefits FRDC Page 38 Both private and public benefits will arise from the investment. On the basis of the distribution of the four benefits listed in Table 7, and equal weighting for each benefit, it could be concluded that public benefits to Australia could make up 50% of the total benefits. If the subjective weightings are taken into account, the public benefits would still make up nearly 50% of the total benefits. Distribution of Benefits Along the Supply Chain The private benefits and costs from expanded aquaculture industries and the continued commercial viability of commercial fisheries would be shared along the supply chains. Benefits to Other Industries It is likely that industry benefits will be confined to the fishing industry. Benefits Overseas There may be some scientific knowledge spillovers to overseas fishing industries. Additionality and Marginality The investment in the projects in this cluster has recognised the critical importance of the linkage between commercial and environmental sustainability and hence is a high priority for FRDC and industry. Despite the importance, if FRDC had not received funding from government, many of the wild catch investment may not have been made or made at lower funding levels. On the other hand, most of the larger investments were in the salmon and tuna industries and much of this investment may have continued without funding from government. A majority of the public benefits identified therefore would still have been delivered. Further detail is provided in Table 8. Table 8: Potential Response to Reduced Public Funding to FRDC 1. What priority were the projects in this High cluster when funded? 2. Would FRDC have funded this cluster if only half of public funding of FRDC had been available? 3. Would the cluster have been funded if no public funding for FRDC had been available? Yes, but with a lesser total investment (75% 100%) of actual total investment. Yes, but with a lesser total investment (50%75%) of actual total investment. Match with National Priorities The Australian Government’s national and rural R&D priorities are reproduced in Table (updated in May 2007 and still current). http://www.daff.gov.au/_media/documents/ag-food/innovation2/Priorities_Booklet_FINAL.pdf Table 9: National and Rural R&D Research Priorities Australian Government National Research Priorities Rural Research Priorities 1. An environmentally 1. Productivity and adding value sustainable Australia 2. Supply chain and markets 2. Promoting and maintaining 3. Natural resource management good health 4. Climate variability and climate change 3. Frontier technologies for building and transforming FRDC Page 39 Australian industries 5. 4. Safeguarding Australia Biosecurity Supporting the priorities: 1. Innovation skills 2. Technology The cluster contributes directly to National Research Priority 1 (environmentally sustainable Australia) and Priority 3. The investment was strongly associated with Rural Research Priorities 1 and 3. Both supporting priorities were addressed. Quantification of Benefits Benefits valued Four benefits are valued in this cluster of projects: Maintenance of commercial viability of wild catch fisheries associated with estuaries Contribution to maintenance of biodiversity of the estuarine and coastal water environment Contribution to economic development of the Atlantic salmon aquaculture industry Contribution to economic development of the SBT (farmed tuna) aquaculture industry Benefits not valued The benefit identified but not valued was scientific knowledge and capacity. In some cases this benefit was included with the biodiversity and commercial viability benefits and in the other cases it was considered too difficult to value. Maintenance of commercial viability of wild catch fisheries associated with estuaries Robinson (2001) estimated the value of Australia’s estuaries from commercial fisheries dependent or partly dependent on estuaries, from the value of recreational fisheries and from the value of port infrastructure. The estuary ecosystems of interest to this research investment provide ecosystem services such as habitat, spawning and nursery areas for fish, habitat and breeding areas for birds and native animals, nutrient cycling and water filtration. The value of estuarine dependent commercial fisheries was estimated by Robinson as $52 million from oysters, $327 million from prawns, $10.5 million from barramundi, and $42 million from crabs, a total of over $430 million per annum (see Table 10). Table 10: Estimated Value of Estuarine Dependent Commercial Fisheries 1999-2000 ($ million) Fishery Oysters Prawns Barramundi Crabs Total QLD 0.65 75.0 6.0 19.5 101.15 NSW 28.8 24.0 0 3.4 56.2 WA 0 76.0 0 4.0 80.0 NT 0 0 4.5 12.0 16.5 TAS 13.0 0 0 0 13.0 SA 9.3 43.7 0 3.4 56.4 VIC COMM Total 0 0 51.75 1.3 107.0 327.0 0 0 10.5 0 0 42.3 1.3 107.0 431.55 Source: Robinson (2001) FRDC Page 40 Robinson estimated also that estuarine opportunist commercial fisheries added another $40 million to the annual commercial value of fish contributed by estuaries, giving a total value of $470 million. Further surveys have shown that 60% of recreational fish caught in Queensland was from estuaries, and the contribution to the Queensland economy could be as much as $528 million per annum from fish caught in estuaries. As the recreational fishing industry in Australia is worth over $2.9 billion per annum, and about 60% of fish caught are from estuaries, it is likely that the value of fish caught from estuaries in all States is in the vicinity of $1.7 billion per annum. However, Robinson makes the point that information by state is incomplete and that the more reliable estimates for Queensland, Western Australia and the Northern Territory would give an estimate of $1.06 billion. A conservative estimate of the value of estuarine ecosystems for commercial and recreational fisheries is therefore $1.53 billion per annum expressed in 1999/00 $ terms. Assuming activity has remained the same, this would be equivalent to $2.16 billion in 2010/11 $ terms. For the purposes of this analysis it is assumed that the knowledge produced on habitats and impacts of external factors on estuaries has, through improved management, reduced the probability of stock decline over the ten years commencing 2010/11. Specific assumptions are summarised in Table 11. Maintenance of biodiversity The improved knowledge of species and habitats within estuaries and the factors that affect them is expected to lead to improved management practices that in turn lead to environmental sustainability and the protection of biodiversity. The environmental value of rivers and estuaries is important to communities and has been the subject of a number of willingness to pay studies e.g. Brouwer (2009), Liu and Stern (2008), Rolfe and Brouwer (2010), and Rolfe et al (2005). While various components of environmental sustainability associated with estuaries have been identified and/or valued (e.g. amenity, cultural heritage, recreational values), care was required in ensuring any environmental attribute valued did not duplicate what was included in the commercial benefit already valued, such as the value of recreational fishing. The impact of the investment on species biodiversity via benefit transfer from willingness to pay studies was therefore valued. Details are summarised in Table 11. Industry development benefit – salmon Three projects (2001/097, 2004/074 and 2007/246) contributed specifically to the benefits associated with understanding aquaculture interactions with the environment and monitoring to improve environmental management in sustaining the industry and in guiding potential expansion of the salmon industry in Tasmania. The benefit estimated was for the reduced risk in the industry occurring production losses. The health of productivity of farmed salmon can be highly dependent on the water quality in which they are being farmed. For example, an algal bloom outbreak throughout a significant part of the estuary may result in salmon production being shut down for limited periods of time. It is assumed that if the impact described above were to occur, that the industry could lose the equivalent of six weeks production each year. The net profit before income tax for the largest salmon farmer in the Huon Valley averages about $30 million in the past few years (includes farming and added value operations). This producer makes up about 65% of the Valley’s salmon production, and therefore it is assumed that profits from salmon farming and processing for the entire valley are estimated at approximately $46.2 million. Therefore, the lost production would equate to $5.3 million per annum in lost profits. It is assumed that this loss would have started in the year 2010/11, and would have continued indefinitely. The ‘without research’ probability of this magnitude of loss is 80%. With the research, this probability is assumed to be reduced to 50%. Industry development benefit – tuna Four projects (2001/102, 2001/103, 2001/104 and 2005/059) contributed specifically to the benefits associated with understanding aquaculture interactions with the environment. These benefits included FRDC Page 41 (through modelling and monitoring) benefits of improved environmental management in sustaining the industry and in guiding compliance and preparedness, as well as potential expansion of the farmed SBT industry in Spencer Gulf, South Australia. Three categories of industry development benefits were valued: 1. Improved risk management 2. Sustainable expansion 3. Increased profitability Improved risk management The availability of data and models has improved the risk management capabilities of the industry and government, resulting in a decreased impact from a major event through, for example, the ability to predict the speed and direction of spread of algal blooms and disease outbreaks, and the implications of major storms that are likely to trigger re-suspension. For example, in 1996, 75% of industry stock in the Port Lincoln area was lost due to a large storm that triggered a re-suspension event. Since this time, the industry has moved further off-shore, making such an impact less likely. However the modelling has shown that such a possibility does still exist in certain conditions. Being able to predict when and where such an event is likely to occur allows the industry to develop emergency contingency plans for where and how to move pontoons to avoid such stock losses during such an event. For the purposes of this analysis, it is assumed that the probability of such an event occurring is 5% per annum (once in 20 years), and that the likely stock losses from such events without the research having taken place would be 25% (conservatively lower than 75% as in the 1996 incident to allow for movement of industry off-shore). With the research, the impact of such an event occurring is assumed to be reduced through stock losses of only 10%. It is assumed that the value of the SBT aquaculture industry is $150 m per annum. Taking into account the SBT growth cycle, seasonal considerations and feed saved, the value of the stock loss is assumed to be one third of the annual value of production. The first year of benefit (reduced likely impact) is assumed to be 2009/10. Sustainable expansion The data, monitoring and models will allow appropriate decisions to be made regarding the sustainable level of expansion of the industry in the Spencer Gulf area. Without the research, it is possible the size of the industry could have been capped either artificially small, or grown to be overly large, due to the absence of appropriate scientific data and reasoning. If the size of the industry was kept too low, there would be significant lost income, while if the industry was allowed to grow too large, there would possibly be environmental, as well as long-term industry impacts due to poor water quality. For the purposes of this analysis, it is assumed that the decision would have been made to expand the industry by only 3,000 tonnes, rather than 3,500 tonnes as was assumed sustainable. It is assumed the expansion occurs (in both with and without scenarios) over 10 years from the year 2009/10 to 2018/19. The value lost is assumed equal to the profit foregone by not allowing the additional 500 tonnes to be farmed. The value of the tuna is assumed to be $15,000 per tonne, with the profit assumed to be 15% of this value. It is further assumed that the capital required to allow such expansion is 40% of the annual value of the additional tuna produced. The capital investment required is assumed to be evenly distributed over the ten years of growth. It is assumed there is a 50% probability of this expansion occurring, both in the ‘with’ and ‘without’ scenarios. Increased industry profits Improved industry profitability can result from improved management recommendations emanating from the research and the models developed. For example, such recommendations might lead to a more efficient feeding regime, or less likelihood of poor animal health due to dissolved and undissolved contaminants in the water. The proposal for one of the four projects calculated that a 2% improvement in productivity for the industry resulting from the availability of more sites enabling greater separation of farms and improved local conditions through optimised fallowing and/or polyculture, equates to $2 million per annum in economic value. It is assumed that there is a 25% probability of such benefits being realised, and that the benefits are net benefits, with no further FRDC Page 42 adoption costs considered. The first year of benefits is assumed to be in 2009/10, the full 2% benefit being realised after four years. Attribution There are other projects funded that would have contributed to these industry benefits. Overall 50% of the benefits calculated above are assigned to the tuna-relevant projects in this cluster. Summary of Assumptions A summary of the key assumptions made is shown in Table 11. Table 11: Summary of Assumptions Variable Assumption Source Benefit 1 Maintenance of commercial viability of wild catch fisheries associated with estuaries Estimate of value of commercial fishers $470 million per annum Robinson (2001) associated with estuaries (1999/00 $ terms) Estimate of value of estuary dependent $1.06 billion per annum Robinson (2001) recreational fishing (1999/00 $ terms) Total value of estuarine fisheries $1.53 billion per annum Calculated from above Total value of estuaries in 2010/11 $ 1.53 x 1.413 = $2.162 Consumer price index terms billion per annum Potential decline in value 5% Agtrans Research Probability of usage of information by 0.80 Agtrans Research catchment and estuary managers Probability of a 5% decline in value 0.60 Agtrans Research without investment Probability of a 5% decline in value 0.50 Agtrans Research with investment First year of benefits 2010/11 Agtrans Research Longevity of benefits Ten years Agtrans Research Benefit 2 Biodiversity maintenance in estuaries $0.89 per household per Agtrans Research based Willingness to pay per Australian annum on van Bueren and household for preventing one species Bennett (2004) and Lai extinction (2011) Number of households in 2013 8,000,000 ABS Total value per species saved $7,120,000 per annum $8,000,000 x 0.89 Probability of usage of information 0.50 Agtrans Research 0.50 Agtrans Research Probability of species lost without investment 0.40 Agtrans Research Probability of species lost with investment Number of species at risk 5 Agtrans Research Year of first benefit 2010/11 Agtrans Research Benefit 3 Industry development benefit – salmon Annual profit for salmon farming and $30 million for major Tassall Pty Ltd Annual processing enterprises in Huon Valley company Reports 2009-2011 Proportion of total production for major 65% Agtrans Research company Number of weeks per annum for which 6 weeks per annum Agtrans Research profits lost due to environmental degradation Loss of profit per annum $5.32 million Derived from above FRDC Page 43 Probability of above impacts occurring 80% without research Probability of above impacts occurring 50% with research Year of first benefits 2010/11 Benefit 4 Industry development benefit – tuna Improved risk management Value of farmed tuna $150 m Net value of stock that are lost Probability of adverse event occurring per annum Proportion of stock lost due to adverse event without research 33.3% of annual value of product sales (allows for saved feed, transport and marketing costs etc) 5% 25% ($30m x 100/65 x 6/52 =$5.32 m) Agtrans Research Agtrans Research Agtrans Research ABARE (2011) (three year average) Agtrans Research Agtrans Research Proportion of stock lost due to adverse event with research Year of first benefit Sustainable expansion Expansion of industry without research Expansion of industry with research 10% Agtrans Research estimate (based on 75% loss during 1996 storm event when industry was located closer to shore) Agtrans Research 2009/10 Agtrans Research 3,000 tonnes 3,500 tonnes Year in which expansion starts Period over which expansion occurs Value of tuna per tonne 2009/10 10 years $15,000 Agtrans Research Agtrans Research estimate, based on project results Agtrans Research Agtrans Research Agtrans Research estimate after discussion with Brian Jeffries Agtrans Research Agtrans Research Proportion of value that is profit Additional capital investment required 15% $3 m (spread over 10 years); based on 40% of 500 t @ $15,000 per tonne = $3m or $300,000 per annum Increased Industry Profitability (without expansion) Increase in productivity from model 2% results Increase in economic return $2 million per annum Probability of assumed increase Year of first benefit Years to maximum benefit Overall attribution to tuna projects Attribution of tuna benefits to tuna projects FRDC 25% 2009/10 4 Project 2001/103 application Project 2001/103 application Agtrans Research Agtrans Research Agtrans Research 50% Agtrans Research Page 44 Results All past costs and benefits were expressed in 2010/11 dollar terms using the CPI. All benefits after 2010/11 were expressed in 2010/11 dollar terms. All costs and benefits were discounted to 2010/11 using a discount rate of 5%. The base run used the best estimates of each variable, notwithstanding a high level of uncertainty for many of the estimates. Investment criteria were estimated for both total investment and for the FRDC investment alone. All analyses ran for the length of the investment period plus 30 years from the last year of investment (2009/10) to the final year of benefits assumed. Tables 12 and 13 show the investment criteria for the different periods of benefits for both the total investment and the FRDC investment. FRDC Page 45 Table 12: Investment Criteria for Total Investment (discount rate 5%) Investment criteria 0 Present value of benefits ($m) Present value of costs ($m) Net present value ($m) Benefit–cost ratio Internal rate of return (%) 0.16 42.91 -42.74 0.00 Negative 5 56.94 42.91 14.03 1.33 8.2 Years since last year of investment 10 15 20 102.54 114.33 123.57 42.91 42.91 42.91 59.63 71.42 80.66 2.39 2.66 2.88 13.2 13.8 14.1 25 130.81 42.91 87.91 3.05 14.2 30 136.48 42.91 93.58 3.18 14.2 25 35.82 11.59 24.23 3.09 14.6 30 37.37 11.59 25.78 3.22 14.7 Table 13: Investment Criteria for FRDC Investment (discount rate 5%) Investment criteria 0 Present value of benefits ($m) Present value of costs ($m) Net present value ($m) Benefit–cost ratio Internal rate of return (%) 0.04 11.59 -11.55 0.00 Negative 5 15.59 11.59 4.00 1.35 8.5 Years since last year of investment 10 15 20 28.07 31.30 33.83 11.59 11.59 11.59 16.48 19.71 22.24 2.42 2.70 2.92 13.6 14.2 14.5 The annual cash flow of undiscounted benefits is shown in Figure 1 for both the total investment and for the FRDC investment. 14.00 Annual Benefit ($) 12.00 10.00 8.00 Total 6.00 FRDC 4.00 2.00 0.00 Years Figure 1: Annual Cash Flow of Benefits The present value of benefits (PVB) from each source of benefits was estimated separately and then summed to provide an estimate of the total value of benefits. Table 14 shows the sources of benefits, expressed as the PVB and the percentage of total benefits. Table 14: Source of Benefits (total investment, discount rate 5%, 30 year period) Benefit FRDC PVB ($m) % Total Page 46 Maintenance of commercial viability of wild catch fisheries associated with estuaries Biodiversity maintenance in estuaries Industry development benefit – salmon Industry development benefit – tuna Total 70.11 28.73 25.79 11.85 136.48 51.4 21.0 18.9 8.7 100.0 Table 15 shows a subjective assessment of the different benefits against the rural research priorities. Bear in mind that this assessment refers only to those benefits that were valued. Table 15: Benefits Valued and Rural Research Priorities Benefit PVB ($m) Wild catch commercial Biodiversity maintenance Salmon development Tuna development Total ($m) Total (%) 70.11 28.73 25.79 11.85 136.48 100.0 Producti vity and Adding Value 100 0 50 50 88.93 65.2 Supply Chain and Markets Natural Resource Manage ment Climate Biosecurity Variability and Climate Change % subjective allocation to each priority 0 0 0 0 0 100 0 0 0 50 0 0 0 50 0 0 0 47.55 0 0 0 34.8 0 0 Sensitivity Analyses Sensitivity analyses were carried out on some variables and results for the total investment are reported in Tables 16 to 17. All sensitivity analyses were performed with benefits taken over the life of the investment plus 30 years from the year of last investment. All other parameters were held at their base values. The sensitivity analysis on the discount rate (Table 16) demonstrates that the investment criteria are still positive at a 10% discount rate. Table 16: Sensitivity to Discount Rate (Total investment, 30 years) Criterion 0% Present value of benefits ($m) Present value of costs ($m) Net present value ($m) Benefit-cost ratio 211.19 30.00 181.19 7.04 Discount Rate 5% (base) 10% 136.48 42.91 93.58 3.18 100.61 61.24 39.37 1.64 The sensitivity analysis of the size of value decline in estuaries fisheries shows that even if this benefit was reduced to zero (Table 17), the remaining three benefits combined would still produce a benefit cost ratio of greater than one. If the proportion at risk of decline was far greater (20%), then the benefit cost ratio rises to 8 to 1. Each of the other three benefits on their own would not cover the investment costs. Table 17: Sensitivity to Size of Potential Decline in Value of Fisheries (Total investment, 30 years, discount rate 5%) Criterion FRDC Size of Potential Decline in Value 0% 5% (base) 20% Page 47 Present value of benefits ($m) Present value of costs ($m) Net present value ($m) Benefit-cost ratio Internal rate of return (%) 66.37 42.91 23.46 1.55 7.6 136.48 42.91 93.58 3.18 14.2 346.82 42.91 303.92 8.08 24.9 Confidence Rating The results produced are highly dependent on the assumptions made, many of which are uncertain. There are two factors that warrant recognition. The first factor is the coverage of benefits. Where there are multiple types of benefits it is often not possible to quantify all the benefits that may be linked to the investment. The second factor involves uncertainty regarding the assumptions made, including the linkage between the research and the assumed outcomes. A confidence rating based on these two factors has been given to the results of the investment analysis (Table 18). The rating categories used are High, Medium and Low, where: High: denotes a good coverage of benefits or reasonable confidence in the assumptions made Medium: denotes only a reasonable coverage of benefits or some uncertainties in assumptions made Low: denotes a poor coverage of benefits or many uncertainties in assumptions made Table 18: Confidence in Analysis of Theme 2 (Habitat and Ecosystem Protection Part A) Cluster Coverage of Benefits High Confidence in Assumptions Medium Observations for Future Investment Observations for future investment and evaluation include: The ratio of FRDC funding to total funding for projects funded by FRDC in this cluster was 27 (FRDC) to 100 (total) or 27%, well below the average percentage of 40% found for 18 clusters in 2009. This result was driven largely by the high leverage exerted by FRDC in the salmon and tuna aquaculture projects. These percentages are worth summarising as they may be important in assessing the FRDC current and prospective roles in different R&D areas and where public benefits are manifest but external funding is difficult to attract. It would be useful to summarise willingness to pay studies associated with environmental attributes of estuaries and inshore fisheries. Benefit transfer approaches are difficult to apply meaningfully due to the way in which studies are carried out and results reported. Choice modelling specialists should be engaged to address this task. Key Performance Indicators The two Theme 2 key performance indicators (KPIs) are described in Table 19. While the investments covered in the evaluation were funded well before the current strategic plan and therefore before the KPIs in Table 19 were developed, some commentary may be useful. Table 19: Key Performance Indicators for Theme 2 (Habitat and Ecosystem Protection Part A) KPI 1 FRDC Description Demonstrated improved sustainability performance Number of projects contributing 11 Page 48 2 from the use of RD&E outputs Development of innovative technologies to reduce fishery take and interaction with by catch and with threatened, endangered and protected species. 16 Ten of the 19 projects were considered to have contributed to both KPIs. It was considered that one project contributed to only KPI 1, and 6 to only KPI 2. Two projects were assessed as not contributing to either KPI. The first KPI required demonstration of improved performance but this could not be pursued in detail within the time constraints of the current evaluation. Furthermore, sustainability performance is difficult to assess as it covers many dimensions and drivers. If this KPI is to be reported on with regard to the investments in this plan in future, greater attention than is currently given to monitoring outcomes after the completion of projects will be required. The second KPI addressed innovative technologies. Many of the projects were innovative but produced knowledge rather than technologies. Also, it was not clear what was meant by “reduce fishery take”. The remainder of the second KPI appears to directly address other parts of Theme 2 and is only indirectly relevant to water (quality) and habitat. Conclusions Investment was made in a total of 19 projects within the cluster with the FRDC contribution approximating 27% of the total costs of investment. On the basis of the distribution of the four benefits listed in Table 7, and equal weighting for each benefit, it could be concluded that public benefits to Australia could make up 50% of the total benefits. If the subjective weightings are taken into account, the public benefits would still make up nearly 50% of the total benefits. Of the benefits valued, the productivity benefits made up some 65% of total benefits with environmental benefits contributing 35%. Seven of the 19 projects were associated with environmental aspects of two major aquaculture industries, salmon and tuna. Together, these seven projects contributed 27% of the total benefits valued. Overall, the investment criteria estimated for the total investment of $43 million (present value of costs) in the cluster were positive with a present value of benefits of $136 million, a net present value estimated at $93 million, and a benefit-cost ratio of 3.2 to 1, all estimated using a discount rate of 5% (benefits estimated over 30 years from the final year of investment). Acknowledgments Gary Kendrick, UWA Oceans Institute, University of Western Australia Jason Tanner, South Australian Research and Development Institute Fiona Valesini, Murdoch University Maylene Loo, South Australian Research and Development Institute FRDC Page 49 References Brouwer R (2009) “”Multi-attribute choice modelling of Australia’s Rivers and Wetlands: A meta analysis of ten years of research”, Socio Economics and the Environment in Discussion, CSIRO Working Paper Series www.csiro.au/~/Media/.../SEEDPaper30_CSE_PDF%20Standard.pdf FRDC (2010) “Investing for tomorrow’s fish: the FRDC’s Research, Development and Extension Plan 2010–2015”, FRDChttp://www.frdc.com.au/research/current-plan Lai J (2011) “Willingness to pay to prevent the extinction of vertebrate species in Australia and New Zealand”, Paper prepared by Agtrans Research for Australian Biodiversity CRC bid. 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