Growfish News Article - Restrictive net closing on fish farming says New Zealand paper - New Zealand - Apr 2, 2003
 

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NEW ZEALAND - Apr 2, 2003
Source: SEAFOOD.COM
Restrictive net closing on fish farming says New Zealand paper

SEAFOOD.COM NEWS [Copyright 2003 The New Zealand Herald. All Rights Reserved.] EDITORIAL COMMENT BY The New Zealand Herald - April 2, 2003
Marine Farming is a growing industry with Government regulators hot on its tail. Not far behind them, naturally, are Maori tribal interests determined to claim a high proportion of coastal areas designated for new aquaculture. They might also be given a share of existing marine farms if the present lease-holders are given no automatic right of renewal.

The denial of renewal rights to those who have pioneered aquaculture in this country is quite the most reprehensible of the Government's regulatory proposals. It would mean that those who have invested money and effort in developing a marine farm would see their property put up for tender at the end of each lease period. They would have to bid for the right to retain the fruit of their own work. As one fishing industry leader has said, 'If this was farmland there would be riots'.

Fisheries Minister Pete Hodgson explains that the Government does not want to privatise marine farming space with indeterminate leases. Why not? Marine farms are private enterprises and private enterprise does not happen unless the law recognises the property rights created by the investment. Setting up a marine farm can cost $500,000 and preparing the produce for market can cost as much again. To confiscate the property after a term of perhaps 10 or 20 years will not encourage the utmost maintenance of marine farms or the constant improvement of their stocks and output.


New Zealand's marine jurisdiction now awards tradeable property rights in the form of fishing quotas. What would be the harm in creating a tradeable licence to an area designated for fish farming? Existing licences, awarded under the Marine Act or the Resource Management Act, have been renewable fairly automatically so long as the operation continued to meet various public requirements. That arrangement has encouraged the industry to grow at such a rate that a year ago the Government imposed a moratorium on further licences until it could get a regulatory grip.

Surprisingly, the Government's proposed regime seems not to have considered the likelihood of Maori claims to the latest use of coastal fishing grounds. The Waitangi Tribunal has heard and backed those claims, finding the Crown has breached four treaty principles in developing its proposals. Now the Waitangi Fisheries Commission is talking of claiming as much as 20 per cent of the new aquaculture zones that will be designated by regional councils. One or two iwi are contemplating a claim also to 10 per cent of existing areas which could be bought by the Crown once licences expire.

The percentage figures are copied from the 1992 fisheries settlement, the 'Sealord deal', which presaged 10 years of litigation between Maori with different ideas about a fair distribution of the wealth. The commission seems on the verge of an agreement at last, but the long dispute does not augur well for marine farming.

The commission says there is no co-ordinated Maori claim to the aquaculture assets yet. Chairman Shane Jones suggests the Maori interest could be satisfied either by 20 per cent of the revenue from licence tenders or reserving for Maori 20 per cent of the available space.

The Government plans to consult Maori at a series of hui this month and Mr Hodgson believes the exercise will delay the regulatory legislation only briefly. Let us hope so. The two-year moratorium is now half gone and the growth of a much-needed new industry remains suspended. Councils have yet to publish the designated areas and the regulatory regime remains vague. Let's hope, since it is taking this long, that the regulators have had time to at least revise their restrictive leasing plans. We already face the danger of strangling an infant industry.

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