Fishermen ‘shocked’ by proposed new resource rentals

Press, 20 May 1987, Page 2

Fishermen ‘shocked’ by proposed new resource rentals

The general manager of the Fishing Industry Board, Mr Nick Jarman, said yesterday the industry was “shocked” at new proposed rentals. The increases would ruin industry profitability by increasing the annual rental bill from $l3 million this year to more than $5O million next year, he said. ;. This 280 per cent rise was devastating and could well sink the industry which had developed so successfully over the last five years, and which held so much promise. "Those taking the risk, showing the initiative and making the investment have to receive an adequate return. The proposed new levels totally ignore this,” said Mr Jarman. The Minister of Fisheries, Mr Moyle, met representatives of the fishing industry yesterday to discuss proposed increases in fisheries resource rentals which are renewed annually. Resource rentals represent royalties charged on each tonne of fish allo-

cated by the quota system. Fishermen must pay the rental even if, they do not catch their full quota. The new proposed rentals, paid by both New Zealand-owned and foreign-chartered vessels in return for access to-the commercial fishery, range from $5.50 a tonne for barracouta (now $3) to $450 a tonne for orange roughy ($100). “Fishermen are trading quotas among themselves at prices very much higher than the resource rentals,” Mr Moyle said. “In the recent tender of deep-water species, the price set for hoki and orange roughy was $406 and $1771 a tonne respectively.” This was for quotas which would be leased at a fixed rental for five years and then held in perpetuity, and indicates the value the industry itself places on the resource. “While an increase in rentals is clearly indicated, the Government has no intention of raising them to a point where

they would impair the profitability and development of the industry,” Mr Moyle said. Further negotiations would be held with the industry before any increases were fixed, Mr Moyle said. Mr Jarman said the figures proposed by Mr Moyle had been derived from the value of quotas which had been traded since the introduction of the new system of I.T.Q.S. six months ago. These figures were completely unrepresentative of the industry’s economics because such trading was being done for reasons of restructuring and did not reflect the actual profitability of individual species.” He said one of the most damaging aspects of the proposals was the suggestion the present act should be changed to allow rentals for some species to be increased more than 20 per cent. “This is directly contrary to the provisions of the act passed only nine months ago,” Mr Jarman said.