South East M a n a g e m e n t Ad vi s o r y C o m m i t t e e ( S o u t h E a s t M AC ) MAC CHAIR’S SUMMARY MEETING 9 24 - 25 MAY 2012 SOUTH EAST MAC (SEMAC) CHAIR: Steve McCormack Dates 24 and 25 May 2012 South East MAC met in Canberra on the 24th and 25th of May and the meeting focused on: Financial matters Consideration of the draft fishery budgets (cost recovered components - SESSF, SPF and SSJF) Update on the review of the SESSF levy allocation model Options to facilitate the conduct of the winter component of the Fishery Independent Survey (FIS) in light of research funding constraints for 2012/13 financial year. Management issues Additional refinements to the Upper Slope Dogfish Management Strategy to better align it with biological rebuild targets adopted for the Harrison’s and Southern Dogfish. The monitoring and evaluation plan for the industry trial of longer gillnets (6,000m). The MAC was pleased to note that the grant of Statutory Fishing Rights (SFRs) had been made in the Small Pelagic Fishery (SPF) and that the fishery was now operating under Individual Transferable Quota (ITQs) for the 2012/13 season. The MAC welcomed an update on industry plans to introduce a freezer trawler into the fishery to produce high quality frozen product for export to west-African markets for human consumption. The MAC regarded industry’s plans to consult directly with recreational bodies and conservation NGOs as a positive development given concerns expressed about the introduction of larger vessels. The Committee noted the resignation of Mr Anthony Ciconte (invited industry participant) and welcomed new appointees, Ms Frances Seaborn (invited state participant) and Mr Brian Bailey (invited industry participant). The MAC appreciated the participation of Dr James Findlay (Chief Executive Officer) for key agenda items. The MAC Chair noted apologies from Mr Les Scott (industry member), Dr Ian Knuckey (invited scientific participant) and Mr Jeff Moore (GAB invited participant). Mr Louis Hatzimihilas, the newly appointed invited squid industry participant, was unable to attend due to his involvement in the upcoming Bass Strait Scallop pre-season survey. The MAC appreciated Mr Michael Tudman (industry observer) travelling up to Canberra to provide expertise from the auto-longline sector at short notice. Ms Beth Gibson (AFMA member) advised she would be stepping down from the MAC and her position as Senior Manager Demersal and Midwater Trawl Fisheries to take up another position within AFMA. The Committee thanked Ms Gibson for her service to the fishery both as Senior Manager and as a MAC member for the last five years and wished her well in her new appointment. Monitoring and evaluation plan for extended maximum gillnet length The MAC reviewed the report Preliminary power analysis of AFMA gillnet observer data for selected species (Power Analysis) prepared by the Western Australian Department of Fisheries. The MAC noted that the AFMA Commission had agreed, after extensive consultation, to increase the maximum gillnet length to 6,000 metres for a trial period. AFMA then commissioned the Power Analysis to identify the amount of data to be collected and the potential analyses that could be conducted. Members recalled that distinguishing differences statistically between 4,200m nets and 6,000m nets would be quite difficult and that large sample sizes would be needed. The scientific member considered that the 5% effect size modelled in the report was quite small and accordingly would difficult to detect. The MAC asked AFMA to liaise with SharkRAG to get their views on the suitability of a 5% effect size. South East MAC Meeting 9 24 and 25 May 2012 2 of 12 The MAC noted that Figure 2 in the report suggested there was a non-linear relationship between sample size and probability of detecting a 5% change in dolphin bycatch rate. The Committee asked AFMA to raise this with the authors. The MAC noted that the report makes it clear that not all questions about effects could be answered after ‘x’ number of shots and that for rare events the analysis showed it could take hundreds of shots before statistical power was available to examine if for example dolphin bycatch occurred at a different rate in 6,000m net operations than in 4,200m operations. The Committee, faced with uncertainty about when enough observations would be achieved to answer questions about differences (or not) in catch rates for various species, recommended that a review be conducted 1 year after the trial commences. The MAC also supported a suggestion from the GHaT Manager, made in response to concerns raised about quality and lice damage, that soak time be recorded by observers noting this was a factor considered to be important and may also be a factor for other catch attributes. The shark invited participant indicated that about 90% of the operators opposed changes to the maximum net length based on all the work done to rationalise the fishery over the years. The MAC noted many in the sector were concerned over the potential for longer nets to increase the proportion of ‘green fish’ on the market. The shark invited participant observed that the fishery relied heavily on the Victorian market and poor quality fish could have impacts on all operators. The Committee understood industry concern on this issue but were mindful that AFMA’s objectives did not support intervention in relation to fish handling practices. The shark industry member supported the trial and advised that those boats that took up the option to use more net could manage their operations effectively to maintain quality. The member considered that the observer coverage would demonstrate if concerns held by a number of Victorian and Tasmanian operators are occurring. The MAC acknowledged the contribution made by the Department of Fisheries – Western Australia by way of in-kind support in undertaking the Power Analysis for SharkRAG without charge. Actions That: AFMA consult with SharkRAG regarding their views on the suitability of a 5% effect size for the simulations. AFMA check with the authors regarding Figure 2 in the Power analysis (apparent non-linear relationship). Observer protocols and e-monitoring be structured so that net soak time can be recorded. AFMA review the dataset after one year of the trial and report back to South East MAC. Upper Slope Dogfish Management Strategy The MAC noted that recent principles agreed by the AFMA Commission had clarified and confirmed that the core objective of the Upper-Slope Dogfish Management Strategy (the Strategy), was to rebuild Harrisson’s Dogfish and Southern Dogfish above a limit reference point of 25% of unfished biomass (B25) derived from an MSY estimate of B50. Members understood that an MSY and limit reference point higher than the general setting in the Commonwealth Harvest Strategy Policy (HSP) (B40) was chosen because these sharks were long lived and were characterised by low biological productivity. The MAC noted that the Scientific Working Group had, for largely similar biological reasons, advised that a significantly longer recovery period than the default setting in the HSP would be required and recommended that 3 mean generation times would be appropriate for these species. The MAC noted that this would translate to approximately 60 and 85 years for Southern Dogfish and Harrisson’s Dogfish respectively. South East MAC Meeting 9 24 and 25 May 2012 3 of 12 The Committee noted that there had been a very significant commitment both in terms of research and management actions for relevant Commonwealth sectors to survey grounds, better understand the biology and behaviour of these dogfish and identify and evaluate measures and strategies to protect remaining populations and important habitat. In this context the MAC was pleased to note that scientific advice and independent review appeared to indicate that depletion of Harrisson’s Dogfish and Southern Dogfish had been stopped. The MAC noted that the Minister for the Environment is required to make a listing decision on Harrisson’s Dogfish and Southern Dogfish by the 31st July 2012. The Committee also recognised that unless the Minister is confident that Strategy will ensure rebuilding of these species, then these dogfish could be listed as vulnerable or threatened which would result in industry being subject to direct management oversight under terms of the EPBC Act. The MAC noted that there was emerging confidence that further refinements to the Strategy could align the measures with the agreed biological targets however, after being briefed on recent initiatives, considered that there was insufficient time available to consolidate the breadth of scientific information and analyses (some projects are still underway) and translate this into management measures. The MAC was mindful that its role was not one of advocacy in regard to Departmental matters but supported (with one reservation) AFMA’s decision to seek a four month extension to the listing process on the basis that the Strategy’s effectiveness would be enhanced against AFMA’s legislative objectives if there was more time available. The MAC considered that a four month extension would allow AFMA to adjust the Strategy to reflect the new targets with more certainty, by: responding to CSIRO’s current scientific projects; consulting with stakeholders on the translation of the latest scientific advice into management measures; and reducing impacts on industry by ensuring management actions are considered in the context of complementary measures by New South Wales and Western Australia and with regard to Commonwealth decisions on reserves in the East Bioregional Marine Plan. The Conservation member acknowledged that there was merit in seeking an extension but noted that the conservation sector was still waiting for a reply to its letter to the Minister for the Environment about the process and on this basis could not support a request for an extension. The MAC considered that the following projects and areas of work would generate positive inputs to the Upper-Slope Dogfish Management Strategy (refer to Table 1) if AFMA’s request for a four month extension is supported by the Minister for the Environment. South East MAC Meeting 9 24 and 25 May 2012 4 of 12 Table 1: South East MAC’s assessment of sources of pending refinements to AFMA’s Upper-Slope Dogfish Management Strategy Factor CSIRO Management Strategy Evaluation (MSE) Expectation Primary tool to assess the effectiveness of proposed measures against the Strategy’s new management objectives (rebuild above B25). CSIRO Depletion Analysis CSIRO/Industry survey Tasmantid seamounts Provides important inputs to the MSE work. Underway - identify areas where Gulper Shark stocks are largely intact. Demonstrates whether specific hook fishing methods can be conducted with low risk to these sharks. Note that the closures below 700m depth contour (Orange Roughy Conservation Program) provide some protection to Gulpers however recognise that imprecise placement of the 700m line in some areas has effectively protected shallower waters. Identify separate stocks of Upper Slope Dogfish. May add complexity to management (choice of closures) in the short to medium term. Identifies any operational or logistic issues with proposed management measures. The NSW Government is expected to provide further clarification on its intended course of action particularly with respect to closures. Examination of protection provided by the closure of waters below the 700m contour Genetic work Consultation with industry and other stakeholders Harmonisation with NSW management actions Marine Bioregional Planning Temperate East Marine Region While it is desirable to harmonise the marine planning process with AFMA’s processes for resolving gulper shark protection, this may not be possible. Industry is concerned about closures enacted under the FM Act (which are reviewable) compromising concession holder’s right to seek compensation for subsequent permanent closures implemented under Marine Bioregional Plans. AFMA’s legislative objectives Balancing ESD objective with the net economic return objective Strategy that meets its biological objectives having given consideration to moderating economic impacts on the fleet. Provides a mechanism by which habitat areas (proxies for biomass) can be summed towards the revised limit reference point (B25). ESD objective – improves certainty around closure options. ESD objective – better fit of closures to high value dogfish habitat. Net economic returns – maintain fishing access to more productive seamounts. Net economic returns provided this protection is formally accepted in the Strategy it may assist in reducing impacts on industry as they have already adjusted to being excluded from these waters. ESD objective – provides the evidence base for management measures in the Strategy to be tailored to provide commensurate protection for all sub-stocks. Sensible adjustments may improve net economic returns and provide more cost effective management outcomes with little change in the level of biological safeguard. Ensuring accountability to the fishing industry and Australian community – the burden of protection should not be borne disproportionately by one jurisdiction. Cost effective management – if Commonwealth and state closures can be harmonised particularly in cases where boundaries abut then their effectiveness can be enhanced. ESD objective - enables harmonised measures to enable the recovery of Harrisson’s Dogfish and Southern Dogfish Net economic returns - may be direct impacts on individual operators but AFMA required to consider net economic returns to the community as a whole Cost effective management –coordination should minimise duplication in regulation and better separate the processes in relation to fisheries adjustment provisions under SEWPaC’s marine planning process. South East MAC Meeting 9 24 and 25 May 2012 5 of 12 Recommendation South East MAC, with the reservation of the conservation member, supports AFMA’s decision to seek an extension to listing process for Harrisson’s Dogfish and Southern Dogfish on the basis that: • scientific advice indicates that the depletion of these dogfish stocks has been arrested; • scientific advice indicates that measures and practices now in place will also provide significant protection to other high risk species like Endeavour Dogfish and Greeneye Spurdog; and • a short extension will enable important scientific research currently underway time to better quantify the net protection provided by management options (closures, restrictions on night shots, strengthened codes of conduct etc) against the interim target B25 noting that B50 (MSY) is a very long term goal. The MAC noted that if an extension was not forthcoming then AFMA would have to run a very compressed process and that the MAC may need to convene an emergency meeting. The AFMA member indicated that AFMA would welcome out of session comments on the draft CSIRO MSE paper and other technical documents and would forward any comments onto CSIRO or the Scientific Working Group. Draft 2012/13 Fishery budgets (cost recovered components) The MAC appreciated Dr Findlay (AFMA CEO) briefing the Committee on the broader budgetary climate facing Commonwealth departments and agencies. The MAC noted that since last year the Government has required its agencies (with four exemptions) to meet a 4% efficiency dividend in their budgets. Dr Findlay explained that this meant budgets would be cut by 4% with the expectation that savings would come from internal efficiencies, advances in information technology, whole of government processes etc. The MAC noted that AFMA anticipated overall cost increases of 3% as a result of a new enterprise bargaining agreement and increases in rent and electricity prices which, in combination with the 4% efficiency dividend, effectively meant a 7% tightening against the government cost centres. The Committee also noted that AFMA had maintained its commitment to keep the cost recovered budgets at the 2005/06 level with any increases over time limited to within the consumer price index. The MAC agreed to adopt a generally strategic approach toward the draft fishery budgets. The Committee noted that observer costs accounted for 25% of AFMA’s cost recovered component and that all major SESSF sectors were subject to substantial levels of observer coverage. Industry members welcomed AFMA’s commitment to reducing costs associated with verification and biological sampling and identified outsourcing of observer services and use of electronic monitoring as paths to savings. Industry members and observers welcomed advice that AFMA was committed to market testing the observer program again and noted that, if an equivalent service could be provided, there were potentially significant savings if industry was able to enter into contracts with independent providers. AFMA however cautioned against expectations based on low per day costs quoted for observers in other jurisdictions and that previous reviews had found that AFMA was the most cost effective provider. Industry members recognised the potential of electronic monitoring to reduce observer costs however recognised that work to date suggested that breakeven costs for a switch to electronic monitoring were around an observer coverage rate of 10% of fishing effort. Industry and scientific members noted that coverage rates around 3.5 % of fishing effort had proved adequate for biological sampling and discard estimates, with higher levels needed to gather robust data on rare events like TEP species interactions. The MAC noted endorsement of AFMA’s e-monitoring systems from the South Australian gillnet sector and auto-longline sectors. The auto-longline observer advised that industry needed to know what level of observer coverage would still be required (for hands-on work) before the sector could provide full endorsement. South East MAC Meeting 9 24 and 25 May 2012 6 of 12 The shark invited participant indicated that gillnet operators outside South Australia held a range of views regarding cameras but, provided that cost savings were there, many were open to e-monitoring. AFMA’s CEO indicated that while AFMA had been able to secure one-off funds to assist with set-up costs in South Australia that there was no capacity to further assist operators financially with the purchase and installation of e-monitoring equipment. The shark industry member reminded the MAC that another benefit of e-monitoring was that it circumvented space and manning issues associated with taking an observer to sea for smaller vessels. The MAC was comfortable with the range of options for reducing ‘observer costs’ including adoption of e-monitoring where it is consistent with AFMA’s cost effective management objective. The MAC recognised that AFMA had used government funding made available as part of the Securing our Fishing Future package to develop its systems capacity to enable a shift to electronic transactions and processes. The AFMA member explained that increased take-up of e-logs and licensing transactions through business portals had the capacity to reduce industry’s costs and indicated that AFMA was now developing a policy for fee for service arrangements. Members noted that AFMA envisaged that traditional transactions would incur a fee for service (costs removed from the levybase) to enable concession holders prepared to adopt electronic transactions to realise costs savings. The MAC noted that AFMA would endeavour to contain costs for those operators who preferred to continue doing business using the telephone and paper records but advised that the aim was to reduce costs for those operators who chose electronic methods. The MAC also endorsed the important role of industry associations in working directly with AFMA on a range of matters which helped keep levy costs down. Members noted that both SETFIA and GABIA had been able to deliver strategic outcomes for their members on a number of research and management matters. The MAC recognised efforts being made in the shark sector and encouraged the two associations to maintain an open dialogue in regard to a possible future amalgamation. Strategic budget advice Support Market testing of AFMA’s Observer Program Adoption of e-monitoring where it is cost effective to do so AFMA providing advice on the level of physical observer coverage and/or port sampling needed in each sector to meet biological sampling requirements Endorse The aim of making electronic transactions the default setting for Commonwealth fisheries Support The development of a fee for service policy to facilitate an equitable transition to electronic transactions Recognised The ability of strong industry associations to develop, in conjunction with AFMA, more cost effective arrangements for research, assessment and consultation. Specific budget advice Small Pelagic Fishery The MAC noted that industry was pleased to see that the budget was now in line with expenses following a number of higher budgets in the lead-up to quota management. The Committee noted that research costs for a Daily Egg Production Method (DEPM) survey was exbudget for 2012/13 and would be met by Seafish Tasmania. The MAC recognised that a successful egg survey would underpin Tier 1 assessments (higher TACs) which would benefit all concession holders. The Committee considered that in the absence of a cohesive industry association that the funding of future DEPMs should be recovered through the levybase. The MAC recognised that, while a survey had South East MAC Meeting 9 24 and 25 May 2012 7 of 12 the potential to grow the fishery significantly, the incorporation of DEPM costs in next year’s budget was likely to create a similar squeeze up against the budget cap as the SESSF FIS was creating in the draft budget for 2012/13. The Committee noted that blunt measures (budget caps), while addressing a broad industry desire to keep management cost downs, had the potential to prevent a willing SPF industry sector from supporting research which was fundamental to the operation of the recently implemented ITQ management plan. The MAC acknowledged growing pressure on industry to administer these projects directly with research providers to minimise AFMA research overheads. Industry members however noted that in the case of SPF prospects of the sector establishing an association would be strongly enhanced by the setting of higher TACs which would require regular fishery independent egg surveys. The MAC agreed that this was potentially a perverse outcome and one ultimately inconsistent with a number of AFMA’s legislative objectives, notably: ecologically sustainable development, maximising net economic returns to the community and achieving optimum utilisation of the living resources of the AFZ. The MAC considered that AFMA should consult with the Commonwealth Fisheries Association (CFA) to investigate ways of exempting specific research expenditure from the agreed cap provided the relevant industry sector supports it. Action AFMA to raise the potential impact of the cap (cost recovered budgets) on research expenditure which has the potential to deliver more reliable estimates for Recommended Biological Catches (RBCs). Recommendation That, subject to negotiations with CFA and consultation with the SPF sector, AFMA recover costs for the 2013/14 DEPM from the SPF levybase. Trawl budget The trawl industry member, noting an increase in the current budget of 18% over last year, acknowledged an 8% reduction in the draft budget for 2012/13. The MAC noted that the trawl sector was concerned about the quantum of change in a number of cost centres. SETFIA reported that 10 of the 18 trawl cost centres changed by more than 10% and that the average change in those was 35% and accordingly the association had found it difficult to meaningfully review these components of the budgets for the trawl sector (CTS, ECDWT and VIT). The MAC noted AFMA’s willingness to engage with SETFIA to provide a detailed explanation including changes arising from a greater emphasis on the user pays principle and in regard to the application of overheads. Action AFMA to liaise with SETFIA to explain the basis behind change in the draft trawl budget costs centres. Gillnet, Hook and Trap Sector The MAC recognised concerns regarding the implications of surrenders of SFRs and permits on the levybase and noted AFMA’s would continue to try and find savings to offset the loss of revenue. The MAC also noted the desire of the auto-longline sector to not be exposed to direct costs associated with gillnet research and management costs. Southern Squid Jig Fishery The MAC noted that there had been a slight increase in the squid budget (2.24%) and noted there were no specific submissions from the sector. The MAC recognised industry’s desire to discuss options for improving net economic returns and confirmed that AFMA was committed to convening an industry workshop in conjunction with the next Squid RAG meeting. South East MAC Meeting 9 24 and 25 May 2012 8 of 12 Research The MAC noted that AFMA and SESSF RAG had recently agreed that the SESSF’s research and assessment framework needed to be reviewed to develop a more strategic and cost effective integration of the various monitoring, assessment and research components. The Committee noted that the SESSF research program currently accounted for almost 50% of AFMA’s research budget and agreed that this wasn’t sustainable under current budgetary conditions. The MAC recognised that improvements in the status of a number of stocks and general confidence in assessments meant there was scope to move a number of species off the full annual research and assessment cycle without significantly increasing risk. The Committee also noted that once the FIS and the ISMP were bedded down it was reasonable to consider adjusting the frequency of the FIS (biennial) or sampling intensity in the case of the ISMP. The MAC supported the development of a research and monitoring strategy for the SESSF to better integrate the fishery dependent data collection schemes (ISMP, logbooks, industry surveys), the fishery independent data streams (FIS and acoustic surveys), the stock assessment contract and associated RAG processes. The MAC noted that the SESSF data collection and assessment program had been built up over time to address uncertainties associated with data quality and to ensure the assessments for quota species were consistent with the harvest strategy framework. Members agreed that things had improved since then (particularly with respect to target stocks) and it would be timely to review the scale of the program and where savings and efficiencies could be found. Recommendation That AFMA establish, in consultation with stakeholders, a research and monitoring strategy for the SESSF. Research funding shortfall for the FIS The MAC noted that AFMA estimated that approximately $194,000 to $294,000 must be found to support the conduct of the winter FIS. The scientific member, in his capacity as SESSF RAG Chair, indicated that SESSF RAG placed a high priority on running the winter FIS noting that it would constitute the third successive year which was considered to be the minimum needed to establish the basis for an index of abundance. The scientific member indicated that SESSF RAG had provided clear advice that reductions to the stock assessment schedule and ISMP coverage were justified to generate savings to support the third leg of the winter FIS. The MAC noted that from a scientific perspective the third leg was essential but that once this core dataset was established there was a capacity to review the frequency of the FIS and whether a biennial timetable or an annual winter only survey would provide a more cost effective model. The MAC recognised that industry was generally supportive of the FIS and noted that a recent analysis had shown it had provided good indices of abundance for 83% of the species by value and 88% by catch. Members also noted it delivered useful indices for a number of species, including School Shark and Blue Warehou, for which current assessments had become less informative due to commercial CPUE data no longer tracking abundance reliably. The RAG Chair indicated that if changes to the current stock assessment contract could be negotiated then realising savings would require deferring Tier 1 assessments (Tier 3 and 4 assessments are largely automated). The MAC noted that following SESSF RAG’s March meeting and after further discussions the Pink Ling, School Shark and Tiger Flathead were identified as high priorities for assessments this year with Orange Roughy, School Whiting, Silver Warehou and Western Gemfish being tentatively identified as candidates for deferred assessments. South East MAC Meeting 9 24 and 25 May 2012 9 of 12 Recommendation The MAC endorsed AFMA negotiating a rationalisation in the 2012 SESSF stock assessment schedule and managing a temporary reduction in ISMP coverage to generate savings to support the conduct of the 2012 Winter FIS. In making this recommendation South East MAC notes that there still may be a shortfall that industry would have to pick up either by foregoing levy acquittal monies or through increases in levies. The Committee noted that industry members will need time to consult with their sectors regarding their capacity to support the proposed course of action. South Australian Shark sector The MAC recognised that South Australian based shark sector was very concerned about the future viability of their operations under closures enacted under the Australian Sea Lion (ASL) Management Strategy and to reduce interactions with Dolphins. The Committee noted that a core concern related to the appropriateness and evidence base for the performance criteria (triggers). Industry indicated they felt like they were on a downhill slope with regard to triggers with AFMA being boxed into adopting more precautionary settings every time there is a review. Industry considers this is due in part to the lack of coherent policy regarding acceptable minimum settings for sea lion and dolphin mortalities given that more workable ‘understandings’ seem to exist for fur seals, seabirds (TAP based on rates) and terrestrial situations. The MAC noted that operators also wanted to know if these triggers would eventually be applied to all methods. The MAC was pleased to note that AFMA had appointed an experienced officer to develop a strategic plan to help facilitate a more certain future for the shark sector based in South Australia. SESSF Levy allocation model The MAC appreciated a briefing from Mr Andy Bodsworth who had been appointed by AFMA to work with the Levy Allocation Working Group to revise the model used to allocate the recoverable component of the SESSF budget across the various concessions. Mr Bodsworth acknowledged the progress made by the Levy Allocation Working Group and noted that the approach he was working on reflected the principles identified by the Group. The MAC noted that the main challenge was establishing good estimate of the management costs for each sector of the SESSF fishery and how those management costs could be attributed fairly and transparently (user pays principle) through the levybase. The Committee noted that the existing model directed a proportion of management costs against Boat SFRs and permits with the remainder being split across the ITQ SFR pool on the basis of a rolling Gross Value of Production (GVP) average (valuable species are charged more). Mr Bodsworth noted that the revised approach proposed to collect less against the entry right (Boat SFRs and coastal waters permits) and assign more to the ITQ SFRs but noted that doing this in a manner which reflected costs of management either for a species or a gear sector added complexity. Mr Bodsworth indicated that the draft model being developed envisaged a levy schedule for Boat SFRs and coastal waters permits which more closely reflected the administrative costs of managing access to the fishery however recognised that some management costs are gear specific (bycatch) which tended to align best with Boat SFRs and permits as these were method specific. The MAC noted that currently some of the significant costs associated with TEP interactions are amortised across a broader range of SFRs which was not accurate or equitable. The MAC noted that the allocation of Tier 2 costs across ITQ SFRs was currently based on GVP and acknowledged Mr Bodsworth’s observation that this was not a robust proxy for management costs for all South East MAC Meeting 9 24 and 25 May 2012 10 of 12 species. The MAC noted, for example, that some high value species enjoyed stable stock status and did not require intensive management. The MAC was receptive to an alternative approach whereby the 34 quota species would be assigned to three (or five) management cost categories i.e. High, Medium and Low which would then determine the proportion of the Tier 2 costs which would be assigned to a species’ ITQ SFRs. The MAC was pleased with the direction of the review and noted that Mr Bodsworth would be working closely with the Levy Working Group and welcomed further input from the MAC, industry associations and concessions holders. The MAC, noting that Fisheries Management Paper No. 1 allowed the appointment of individuals outside the Committee to MAC sub-committees, supported extending the Levy Working Group membership to include representatives from the shark sector and the scalefish hook sector. Mr Bodsworth noted that the draft model would be subject to testing before going out for broader consultation and the key tests would be to examine if it was accurate, fair and cost effective to run. The MAC noted a number of suggestions on the approach so far: 1. That the review not extend to consideration of business structures (broadly supported). 2. That AFMA, as part of the review, investigate the system adopted by Fisheries Victoria to monitor staff workload and expenditure against cost centres (noted). 3. That AFMA consider aligning its SESSF management structures more closely with areas of expenditure. SESSF RAG Chair’s Meeting Mr Morison (scientific member), in his capacity as SESSF RAG Chair, briefed the Committee on the recent RAG Chair’s Meeting held in Melbourne on the 20-21 March 2012. The MAC noted that the RAG considered that the 2011/12 assessment and TAC recommendation process had worked well and that the streamlining of the RAG Chairs’ presentations to South East MAC had been well received. Mr Morison noted that SESSF RAG had reviewed a range of technical matters referred by the RAGs and South East MAC: Tier 4 assessments The RAG’s view was that these were generally being handled consistently but agreed that species specific flexibility was still needed and that the individual RAGs were best placed to make these sorts of judgements. SESSF RAG agreed to provide a summary of the Tier 4 assumptions for distribution to the RAGs to encourage more consistent reporting of the RAG’s confidence in their Tier 4 assessments. Tier 3 assessments The RAG acknowledged concerns that large RBCs produced by Tier 3s could undermine stakeholder confidence in the assessment method. The RAG agreed that the reporting of large RBCs did not add useful information to the RAG and MAC processes. The RAG has asked CSIRO to investigate if there are statistical approaches which might provide a less arbitrary moderation of Tier 3 outputs. The MAC noted that if there isn’t a satisfactory way to moderate outputs then the SESSF RAG’s secondary recommendation is that Tier 3 RBCs which trigger the 50% large change limiting meta-rule should be reported qualitatively i.e. RBC > Current TAC + 50%. Alternatives to current Tiers The MAC welcomed news that CSIRO would trial its average length method on a number of problematic Tier 4 species to facilitate consideration of the method at SESSF RAG’s Data Meeting in August 2012. Multiple Year TACs South East MAC Meeting 9 24 and 25 May 2012 11 of 12 The MAC noted that SESSF RAG was comfortable with the existing breakout rules (Tier 1s). The MAC noted that SESSF RAG had reaffirmed its general view there were limited benefits in implementing MYTACs for Tier 3 and 4 species from a scientific workload and efficiency point of view. Mr Morison noted that SESSF RAG recognised that MYTACs could however provide industry with more certainty and reduce management workload for those species where there no significant sustainability issues. Discount factors Mr Morison advised that SESSF RAG would need to review Dr Fay’s (CSIRO) final report (pending clearance) before formulating more specific advice on the application (or waiving) of discount factors for Tier 3 and 4 assessments. Research Mr Morison noted the RAGs were now responsible for setting research priorities and updating research plans and advised that SESSF RAG had established a schedule for individual RAGs to develop research priorities during the latter half of the year so that these could be considered collectively by SESSF RAG at its next Chair’s Meeting (late February 2013). The MAC observed that this would allow SESSF RAG to provide structured advice to both the AFMA Research Committee (ARC) and the Commonwealth Fisheries Research Advisory Body (ComFRAB) at the appropriate stage of their annual research cycles. Review of the Commonwealth Harvest Strategy Policy The RAG noted the pending review of the Commonwealth Harvest Strategy Policy by DAFF and agreed that this would necessitate a review of the SESSF Harvest Strategy Framework. The RAG also recognised the need for the framework to better reflect existing flexibility in the current policy. There was broad support for identifying economic benefits which could be realised by managing some byproduct species around MSY (B40) rather than trying to maintain the suite of quota species at MEY (B48). Specific issues The RAG Chair advised that SESSF RAG had provided formal advice in relation to funding constraints facing this year’s SESSF research program and in regard to AFMA’s Draft Quota Administration Policy and noted that copies of these letters had been included in the MAC papers. State concerns - Striped Trumpeter The MAC recognised concerns over gillnet impacts on state managed species and noted AFMA confirmed its commitment to the Tasmanian Department of Primary Industries, Parks, Water and Environment (DPIPWE) to examine Commonwealth impacts on Striped Trumpeter in the context of DPIPWE’s request that the Commonwealth implement a complimentary closure to the state spawning closure. Next meeting The MAC noted that its next full meeting normally would be scheduled for mid-September 2012 however members recognised that the Committee may need to meet in session or by teleconference prior to that depending on the Minister for the Environment’s decision on the listing process for Harrison’s Dogfish and Southern Dogfish. Mr Steve McCormack South East MAC Chair 13 June 2012 South East MAC Meeting 9 24 and 25 May 2012 12 of 12