Quota brokers slow to start
By
RICHARD CRESSWELL
First came sharebrokers, then there were futures brokers. Now there are fishing quota brokers who deal in Individual Transferable Quotas (I.T.Q.s) for the fishing industry. But in the South Island the quota, brokers game has not been as active as they had hoped, according to one Christchurch quota broking agency. The South Island manager of Quality Equipment, Mr Michael Hill, who is the company’s southern agent for their Auckland broking service, said fishermen and companies were dealing in quotas between themselves and not using the quota exchange. "It has been a lot quieter in the South Island than in the North,” he said. He said there were a lot more small companies in the south who were able to control the market and deal among themselves. The company is linked to the quota exchange for New Zealand, which is based in Auckland, and has been involved in quota broking for three months. The Auckland exchange had been running for
about six months. Mr Hill said there were three or four brokers in the South Island, but the company would remain in the quota broking business for the foreseeable future. Quality Equipment runs its service as a sideline in Christchurch and Mr Hill said quota broking would not be viable as a single commercial business in the South Island. There had been a lot of inquiries about quota prices at the end of the fishing season two weeks ago, but no sales, said Mr Hill. “Fishermen also have had inquiries for their quotas from companies and sales have been far in excess of the exchange price in some Instances,” he said. He predicted crayfish quotas could increase market activity on the exchange if and when they were introduced. “There will likely be less demand for crayfish quotas by big companies because it requires specialised work by a handful of fishermen.” An I.T.Q. gives a fisherman the right to harvest a specific amount of fish and can be used as collateral, deposited In the bank or sold.
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Press, 20 October 1987, Page 17
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343Quota brokers slow to start Press, 20 October 1987, Page 17
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