Victorian Rock Lobster Association Inc. PO Box 133 Apollo Bay Vic, 3233 ABN: 83 100 473 602 23 May 2014 Mr Ross McGowan Executive Director Fisheries Victoria Dear Mr McGowan, RE: Draft Quota Order 2014/15 – Rock Lobster West and East Zones Thank you for your correspondence dated 29 April 2014 and the opportunity to provide a response regarding the draft 2014/15 Further Quota Order for the Rock Lobster Fishery. As the facts available (and as presented at the Eastern Zone (EZ) TACC Forum on 7 April 2014) regarding Rock Lobster (RL) resource sustainability indicate that the current Draft Quota recommendation for the EZ TACC delivers outcomes that satisfy the overarching Vision and Objectives of the Victorian Rock Lobster Fishery Management Plan 2009 (hereafter referred to as the ‘Plan’), VRLA supports the proposed EZ TACC increase to 59t. VRLA can also confirm that this position is supported by the majority (83% of VRLA EZ members and 53% of the overall EZ license base) of EZ RL license holders (see Table 1: 2014/15 RL TACC Poll Results below). However, for the Western Zone (WZ), while the available science (as presented at the WZ TACC Forum on 8 April 2014) indicates that RL stocks are ‘safe’ and ‘rebuilding’ (thereby satisfying the resource sustainability objectives of the Plan), it is the (modified) decision criteria (including the arbitrary use of a hard rebuild ‘target’ by 2021 and use of questionable ‘standardisation’ of CPUE figures) that has resulted in a Draft Quota recommendation being a decrease of TACC from 260t to 230t in 2014/15. VRLA appreciates that the basis for Fisheries Victoria (FV) to endorse this outcome is that this is in accordance with use of these methodologies and decision rules that were allegedly ‘supported1’ by Industry (despite this being challenged by several Industry participants on numerous occasions at both RL RAG and TACC Forums ever since their inception). While these concerns were again raised by Industry participants at the WZ TACC Forum on 8 April 2014, only a sub-set of WZ RL license holders were present at the Forum. While the majority of those WZ RL license holders who were present rejected the proposed TACC reduction, FV was not able to fairly test these challenges as to the veracity of the claims that the Plan (and the TACC recommendation derived from it) has the ‘support’ of Industry with only the 1 It is also important to note that this claim by FV is actually based on the notion that Industry ‘had the opportunity’ to provide comment on the Plan and subsequent changes made to it and either didn’t or didn’t do so in sufficient numbers at the time to warrant a ‘rejection’ of what was proposed. So, it is actually the claimed ‘absence of rejection’, rather than a qualified indication of support from Industry that has seen the Plan evolve into its present form. This approach is indicative of a systemic problem in FV when it comes to Industry ‘consultation’ (ie, silence is consent); something that VRLA will be seeking to remedy with FV in future engagement with Industry stakeholders. Page 1 of 3 views of those present being expressed. In the absence of a qualified ‘whole of Industry’ position, FV will understandably default to the status quo, regardless of how that might have come to be. So, in order to provide FV with visibility of a qualified position on the view of WZ RL license holders with regard to levels of support for the Plan and the proposed Draft Quota Order resulting from application of the (modified) decision criteria, VRLA conducted a TACC Poll amongst its membership base in both the EZ and the WZ. As detailed below in Table 1: 2014/15 RL TACC Poll Results, FV can now see that the vast majority of WZ RL License holders (84% of VRLA WZ members and 73% of the overall WZ license base) reject the proposed reduction in the WZ TACC from 260t to 230t and want the TACC for 2014/15 to remain at 260t (a level acknowledged by the available science to be ‘sustainable’ and still rebuilding the biomass). Table 1: 2014/15 RL TACC Poll Results Poll Options East Zone West Zone 59t 51t Other No response Total 260t 230t Other No response Total Of VRLA Membership Count 24 0 0 5 29 52 7 3 (240t) 0 62 % 83% 0% 0% 17% 100% 84% 11% 5% 0% 100% Of Total DEPI RL License Base Count 24 131 0 82 45 52 133 3 (240t) 34 71 % 53% 29% 0% 18% 100% 73% 18% 4% 4% 100% Notes: 1. Includes 13 licenses outside of the VRLA membership but where the view (although not expressed through the Poll) was known to be 51t. 2. Includes the 5 ‘no responses’ from the VRLA Poll plus an additional 3 licenses (license ownership unknown) to account for all 45 of the total number of DEPI licenses (as published in the recent RIS). 3. Includes the 7 Poll responses plus the view of 6 licenses outside of the VRLA membership but where the view (although not expressed through the Poll) was known to be 230t. 4. 3 additional licenses included here (license ownership unknown) to account for all 71 of the total number of DEPI licenses (as published in the recent RIS). As can be seen from the Poll results, there is no longer any ambiguity or uncertainty around the level of support amongst WZ RL license holders for the Plan in its current form and the recommendations that result from the use of the questionable decision criteria and CPUE ‘standardisation’ within it. VRLA trusts that FV, now (for the first time) fully informed of the majority view of RL license holders, will act in good faith and, in keeping with the Vision2 stated in the Plan, “…[manage the RL resource] in a socially equitable manner in partnership with stakeholders”. In considering its final recommendations on the Draft Quota Orders, VRLA would also urge FV to recognise that in 2014/15, Fishers will also be burdened with the first tranche of what is planned to become the highest fees and levies ever imposed on Industry through the implementation of the new FV 2 Victorian Rock lobster Fishery Management Plan 2009, p7 Page 2 of 3 Cost Recovery regime. (Also noting that this impost is on top of the arbitrary 30% increase in fees and levies last year.) It should also be understood that most RL license holders don’t have the luxury of electing to reduce the TACC (in either the East Zone or the West Zone) in order to speed biomass rebuild rates. In addition, most license holders don’t see it as a ‘better return on investment’ if further constrained quota availability increases quota leasing costs. Conversely, any increased leasing cost merely reduces net income for fishing businesses relying on leased quota as Fishermen are price takers not price setters and have no ability to pass on these additional operating costs to the Marketplace. As such, any suggestion of reducing the TACC in either the East Zone or the West Zone (and therefore limit, through Government bureaucracy and ideology, the ability of Rock Lobster Fishermen to earn a living) at this point in time when there is no threat to stock levels seems to defy common sense. Serious concerns have also been raised by Industry regards the timeliness and effectiveness of the process of ‘consultation’ with Industry through the RL RAG and TACC Forums. When the stock assessment (and TACC recommendation) is first presented at the RL RAG it seems to be a fait accompli. Questions regarding clarification and explanation of dubious (and inexplicable) ‘standardised’ CPUE figures and previous misreporting in interpretations of fishing effort remain unanswered. Industry is told that it would take “too long” to investigate or re-work figures in “this TACC setting cycle” and that “perhaps this could be looked at in the coming year”?! The fact that the (‘Final Draft’) minutes for the RL RAG meeting (held on 26 February 2014) prior to the TACC Forums in April were only distributed on Monday, 19 May 2014 (ie over a month after the TACC Forums) clearly indicates that the current process of Industry ‘consultation’ in the stock assessment and TACC setting process is broken. VRLA would welcome the opportunity to work constructively with FV and the Minister to remedy the shortcomings in RL Industry consultation and the apparent breakdown in due process in the stock assessment and TACC setting process. It is recommended, therefore, that FV; • • • Endorse a rise in TACC to 59t in the East Zone and leave the West Zone at 260t for 2014/15. This is in keeping with the views of the majority of RL license holders in both the East Zone and West Zone. This position is also still consistent the overarching Vision and Objectives of the Victorian Rock Lobster Fishery Management Plan 2009 Immediately establish a RL MAC (this has been an outstanding action in the RL Management Plan since 2009) and commence a review of the Plan with an expectation that a revised Plan (genuinely supported by Industry) will be in place for 2015/16. Develop an annual timetable, and supporting processes, that allows for meaningful and timely consultation with Industry for stock assessments and setting of the TACC in the future (including time for investigation of queries raised by Industry at RL RAG meetings once initial stock assessment results are made available). VRLA respectfully requests that FV and the Minister carefully consider the serious matters and concerns raised in this submission and demonstrate that the voices of Industry stakeholders are now going to be listened to, and not ignored. Yours sincerely, Markus Nolle President, VRLA Page 3 of 3