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Fisheries Adjustment Assistance Package for
new Commonwealth Marine Reserves
Discussion Paper
© Commonwealth of Australia 2012
This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Commonwealth. Requests and enquiries concerning reproduction and rights should be addressed to Department of Sustainability, Environment, Water, Population and Communities, Public Affairs, GPO Box 787 Canberra ACT 2601 or email [email protected]
Disclaimer
The views and opinions expressed in this publication are those of the authors and do not necessarily reflect those of the Australian Government or the Minister for Sustainability, Environment, Water, Population and Communities.
The contents of this document have been compiled using a range of source materials and while reasonable care has been taken in its compilation, the Australian Government does not accept responsibility for the accuracy or completeness of the contents of this document and shall not be liable for any loss or damage that may be occasioned directly or indirectly through the use of or reliance on the contents of the document.
Image credits
Fishing boat off Shark Bay, WA - Department of Fisheries, Boat on Derwent River, TAS - Alicia Mosbauer, Fishing boat , Eden, NSW - Steve Wray, Fishing boat , Eden, NSW - Steve Wray, Fishing boat , Eden, NSW - Steve Wray.
Fisheries Adjustment Assistance
Package for new Commonwealth
Marine Reserves
Discussion Paper
September 2012
1
Overview
This discussion paper has been prepared by the Department of Sustainability, Environment, Water,
Population and Communities (DSEWPaC) as a basis for consultation with the commercial fishing industry
and fisheries management agencies ahead of decisions on the design of a fisheries adjustment
assistance package to support the implementation of the new Commonwealth marine reserve networks.
This paper is presented without prejudice for discussion purposes. The proposals outlined in this paper
have not received government approval. Input from consultations on this paper will inform advice to
government. However, this paper does not limit what the government may decide, or any other
government action that may affect fisheries.
The paper outlines the proposed features of an adjustment assistance package and raises issues and
questions on which industry and fisheries management input is sought. This input will be taken into
account, along with submissions already received and other information held by the DSEWPaC, in
finalising the package, eligibility criteria and program guidelines. Government consideration of the
proposed package, the associated components and their implementation arrangements is anticipated
by the end of 2012.
Providing feedback
Stakeholders, in particular the commercial fishing industry and fisheries management agencies, are
invited to provide feedback on any or all of the proposals and design questions identified in this paper.
A list of questions is provided at the end of the paper. Comments are sought by 2 October 2012.
Comments can be sent to either:
Adjustment Assistance Program Section
Marine Division
Department of Sustainability, Environment, Water, Population and Communities
Reply Paid 787
Canberra ACT 2601 Or via e‐‐‐mail to the Adjustment Assistance Program Section:
2
Privacy and Confidentiality
Information (including personal information) contained in any comments may be used by the
Department for the purposes of designing, consulting further on, establishing, implementing and / or
and administering the Fisheries Adjustment and Assistance Package (the Package) for new
Commonwealth Marine Reserves and any other incidental or related purpose (the Purposes). The
Department will store and use the personal information collected by it in compliance with its
obligations under the Privacy Act 1988 (Cth).
Those persons or organisations submitting a comment should be aware that all comments will be
treated as public documents and may be published (along with your name / organisation) on the
Department’s website (subject to any confidentiality or privacy obligations).
If you wish your comments to remain confidential, you must clearly mark the relevant part(s) of your
comments as ‘confidential’, providing reasons why the Department should consider your request for
confidentiality. Please note that public comments are not normally confidential and a request for
confidentiality will not make comments automatically exempt from release.
Notwithstanding any obligations of confidentiality, the Department may have obligations to disclose,
or allow disclosure of, any information contained in or relating to any comments (including personal
and/or confidential information), including in response to a request by a House or a Committee of the
Parliament of the Commonwealth or under the Freedom of Information Act 1982 (Cth).
3
1. Introduction
Protecting the economic and environmental sustainability of our oceans is one of the Australian
Government’s major priorities. On 14 June 2012, the government announced its final proposal to
establish a network of marine reserves in five regions in Commonwealth waters around Australia. This
will help ensure that examples of Australia’s different marine ecosystems and habitats, and the life
they support, are included in protected areas.
A key aim in developing the reserves network has been to minimise social and economic impacts while
ensuring sound conservation outcomes. The final proposal was informed by comprehensive analyses
conducted by the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) of
the direct and indirect impacts of the reserves networks on individual fisheries and regions. They
identify the anticipated scale of impact and point to those fisheries with the greatest potential to be
affected by the introduction of the reserves. The ABARES assessments were undertaken with
substantive input from the commercial fishing industry and fisheries management agencies and are
available on the Department of Sustainability, Environment, Water, Population and Communities
website at www.environment.gov.au/coasts/mbp/reserves/assessments.html
The government is committed to developing a fisheries adjustment assistance package that ensures
measures are in place to support fishers directly impacted by the proposed reserves.
The release of this discussion paper coincides with a series of national and regional meetings with the
commercial fishing industry and fisheries management agencies. The purpose of these meetings is to
gain views on the design of the package, seek feedback on the design of individual package
components, and to discuss the processes and timelines for finalising the package.
The Government has indicated that the assistance measures will be in place and flowing before fishers
are displaced from the new marine reserves. The timing for the proposed marine reserves taking effect
will be determined as part of the process of developing statutory management plans for the reserves.
This process cannot commence until the reserves have been proclaimed.
Due to the confidentiality of information about where fishers operate and the value of their
operations, determining the direct impacts of the Commonwealth marine reserves on a fisher in order
to provide financial assistance is dependent on the support and participation of state and Northern
Territory governments and fisheries management agencies. In addition, the expertise of fisheries
managers will be critical in developing and delivering the most appropriate assistance for impacted
fisheries to adjust to the implementation of the reserves.
The value of ongoing industry and fishery management agency input into the implementation of the
package is recognised. While initial discussions will necessarily focus on design issues, industry input
will also be sought on implementation issues over the life of the package. Comprehensive
communications products and activities to engage and inform those associated with fisheries displaced
by the reserves network will be developed following finalisation of the program guidelines and made
available in advance of the commencement of the package.
4
2. Fisheries Adjustment Assistance Package objectives and design principles
The 2011 Fisheries Adjustment Policy states that any decision on whether adjustment assistance will
be provided to fishers or fishing‐‐‐dependent communities as a result of a marine reserve declaration (or
rezoning) will be made on a case‐‐‐by‐‐‐case basis. A full copy of the Policy can be found at Appendix I.
While recognising that circumstances will vary from case to case, the Policy outlines three key factors
that typically may be considered:
Whether there are significant and demonstrable negative impacts on particular fishers and their
flexibility to respond;
Whether there are significant and demonstrable negative impacts on local communities where
those impacts cannot readily be absorbed; and
Whether the marine reserves will have a significant impact on the economic returns or
sustainability of the fishery resulting in the relevant fisheries management agency needing to vary
management controls for fisheries and marine environment sustainability.
Noting the key factors above, the proposed package objectives are to:
assist commercial fishers to adjust to changes brought about by the displacement of commercial
fishing from the new reserves, taking into account their ability to absorb impacts; and
assist commercial fisheries with displaced fishing effort arising from the Commonwealth marine
reserves networks adjust to impacts.
Consistent with these objectives of the Package and Australia’s international trade obligations the
Package will be designed so that it does not lead to overcapacity and over‐‐‐fishing.
In accordance with the Policy, the Government will seek to provide assistance through existing
programs where possible and appropriate. Measures under the package could be integrated with
other relevant adjustment assistance being delivered by jurisdictions. For fishing dependent
communities assistance may be provided through existing Government programs and services
including in relation to infrastructure, skills and employment services.
Assistance for businesses upstream and downstream of directly impacted fishing businesses are not
within the scope of the package. Such businesses have a demonstrated capacity to adjust to changing
market conditions without government intervention.
5
The proposed design principles to guide the development of the Package are:
Proportionality Assistance provided to any particular business or sector should be proportional
to the estimated direct financial impacts on the business or sector.
Cost effectiveness The package should present value for money for the Australian public and
transaction costs should be minimised for all parties.
Equity The package should be equitable, transparent in its administration and simple
in its delivery.
Relevance Decisions on assistance measures should be informed by industry and fisheries
management arrangements.
Targeted Assistance should be focused on addressing the direct impacts of the proposed
reserves.
Assistance should be focussed on those who are directly displaced and should
consider their flexibility to adapt to displacement.
Efficiency All elements of the package should be delivered through existing mechanisms
where possible.
Managed The package should be evidence based and designed to minimise risks,
including any potential for fraud.
In addition to the Policy and design principles the Package will be guided by broader government
frameworks and priorities, such as fiscal objectives, structural adjustment principles and reducing
regulatory and administrative burden.
Some questions for consideration:
1. Noting the Fisheries Adjustment Policy are there any alternative or
additional objectives that should be considered for the Fisheries
Adjustment Assistance Package? Please provide a rationale.
2. Are there alternatives or additions to the proposed design principles which
should be considered?
6
3. Package components under consideration
The following are proposed components of the package subject to consideration:
Transitional business assistance to support changes to fishing operations displaced by reserves The effective delivery of the components of the package as composed below is reliant upon the
support and cooperation of state and Northern Territory fisheries management agencies. As fishery
agencies maintain official catch records and are responsible for determining management responses to
displacement at a fishery level their involvement is critical to deliver tailored adjustment assistance
that meets the needs of impacted fishers and fisheries.
Noting the need for fisheries management agencies participation, the following sections discuss the
proposed approach to the design of each component and present issues and questions on key design
features.
The key policy factors, objectives and design principles outlined above raise a number of first order
threshold questions in relation to both the fishery and fisher level effects of the creation of the new
marine reserves. These particularly relate to the questions of:
the ability of a particular business and a fishery to absorb the effect of the displacement and adapt
to the new operating environment; and
how to define a significant direct impact to enable funding to be best targeted.
7
3.1 Transitional business assistance
Summary: Transitional business assistance could be a formula‐‐‐based payment made on the basis of
foregone profit for fishing businesses active in the past five years. It is proposed that assistance
would be provided where the formula, when applied, determines a payment of more than $5,000. The transitional business assistance component of the package is aimed at assisting directly displaced
commercial fishers to adjust to a new operating environment.
Transitional business assistance could be provided as a direct payment to displaced commercial fishers
on a formula basis (that is, as a certain proportion of the displaced value of fishing production that has
historically occurred in areas that will be subject to future commercial fishing restrictions). It could be
paid up front, before any fishing restrictions take effect, to allow adjustment to take place more
smoothly.
All commercial fishing businesses that have operated in reserve areas in the five years before
1 January 2012 and which will be displaced could qualify for a transitional business assistance
payment. Contemporary official catch records held by the relevant fisheries management agency
would determine whether particular businesses qualify for an allocation of transitional business
assistance and the amount of assistance. It is proposed that impacted fishers would be eligible for
transitional business assistance where the applied formula determines a payment that is above a
minimum threshold of $5,000. This would ensure the bulk of the package funds can be directed
towards those commercial fishers and fisheries most affected by the new reserves and to keep
administrative costs to a minimum.
Payments could be calculated on assumed profit forgone in the new reserves over a period identified as
reasonable to transition to the new zoning requirements/management arrangements. Under this
proposal transitional business assistance payments could be based on the following formula applied to
individual fishing businesses catch records:
three times assumed profit on average annual forgone catch.
Where:
three years may be seen as a reasonable period for fishers to adjust to a new operating
environment;
20% could be the assumed profit on forgone catch from reserve areas. An assumed 20% profit
margin on the gross value of production may be considered a relatively high estimate, but might
be adopted to ensure adequate adjustment assistance and to allow for simplicity in
administration;
the base period for the calculation of average annual forgone catch could be set at the average of
“best three years in five” (i.e the average catch value for the three years between 2005/06 and
2010/11 in which the business reported the highest catch value, adjusted for recent beach prices).
8
Under these possible arrangements transitional business assistance would be provided as a GST‐‐‐
inclusive payment. It would not prescribe what actions individual businesses need to take in order to
make adjustments. Receiving transitional business assistance would not necessarily disqualify
recipients from participating in other components of the package. Indeed, for businesses that are
facing larger adjustment costs because they will lose access to part or all of their fishing entitlements,
the up front transitional assistance could form part of an integrated package together with the
purchase of entitlements held by these fishers (see section 3.2, Removal of Effort, below).
In the event that fisheries reporting grids do not align with marine reserve boundaries (i.e. where reserves
cover parts of reporting grids), there will need to be an agreed method to allocate logged catch between
the open and closed parts of the grid. The default used by ABARES in the assessment of the draft and final
marine reserves networks was to proportionally allocate catches in a reporting grid where a marine
reserve existed unless there was verifiable information to do otherwise.
Potentially, the administration of the transitional business assistance component, once the parameters
were agreed for each fishery, could be simplified to:
The allocation of transitional business assistance through this process would have the benefit of being
administratively efficient. The arrangements for this component should be designed to minimise the
risk of fraud.
9
Some questions for consideration:
3. Should a uniform reference period (2005/06‐‐‐2010/11 is proposed for
consultation) be used for all fisheries or should the reference period be tailored
to the individual circumstances of each fishery? If so, on what basis?
4. Should the years under consideration be calendar or financial years?
5. Should the qualifying years for the ‘best three in five’ calculation be
determined at the fishery or operator level?
What processes should be used to:
6a. Notionally allocate catches where data is held in the form of transects or grids; and
6b. Determine which years should be included for fisheries where
material management changes have occurred?
3.2. Removal of commercial fishing effort Summary: Removal of commercial fishing effort may be appropriate in eligible fisheries where
displaced fishing effort from the creation of the new marine reserves would have unsustainable
ecological or economic impacts and the fisheries management arrangements are able to effectively
constrain the level of effort. Government assistance could be provided through payments to fishers
for removing entitlements (e.g. by transfer or surrender) from affected fisheries and could be
delivered through the use of tender processes, brokers or direct negotiation/offer. An effort removal component of the overall assistance package would be aimed at supporting those
fisheries where effort reductions will be introduced as result of the creation of the reserves.
In a fishery, the creation of new marine reserves might displace fishing activity. If all of this activity were
to shift to other locations, there may be the resultant effect of unsustainable ecological or economic
impacts. It is envisaged that any significant effects of this kind would be addressed by the removal of
effort from that fishery by the relevant fisheries managers. It is expected that only a small number of
fisheries may require such action (fewer than ten across all of Australia) and thus be eligible for
assistance under this component.
10
The determination of whether an entitlement buyout is appropriate in a given fishery will largely be
informed by consideration of the effectiveness of fisheries management arrangements. It will be
particularly important to consider potential activation of latent or new effort in the fishery including
whether: Management arrangements provide for ongoing/long term licence or other entitlements (e.g. the
fishery is not developmental);
The fishery is managed under quota or other similar units such that the exact amount of effort removal
can be determined in those units; and
That the relevant fisheries management agency has the capacity and authority to make any necessary
revisions to fisheries management settings (e.g. reduce total allowable catches).
Such decisions could be informed by a Technical Advisory Committee/s which could include
representatives from fisheries management agencies, fishing industry representatives and
departmental/government representatives.
The removal of commercial effort (e.g. licences, permits and entitlement units such as quota) could be
achieved through a range of mechanisms. These include the use of tender processes, brokers or direct
negotiation/offer. The Fisheries Adjustment Policy indicates that any adjustment scheme should be
designed and implemented such as to avoid the distortion of the orderly operation of the market for
fishing access entitlements. In recent adjustment assistance programs involving the removal of
commercial fishing catch/effort displaced by the creation of marine reserves, effort removal has been
achieved through the use of market‐‐‐based entitlement buyout processes.
11
From the perspective of a fishing business that is displaced by the creation of the new reserves, and
the fishery is eligible for effort removal through entitlement buy‐‐‐out and the fishing business decides
to retire some or all of its entitlements the overall assistance package could comprise:
• up front transitional business assistance (as outlined at section 3.1 above), if eligible; and
• assistance, if successful, through the government purchase of entitlement (as outlined in this
section), with this to occur preferably through an open market transaction; and
• business advice assistance (as outlined at section 3.4 below); and
• if relevant, assistance for displaced employees (as outlined at section 3.5 below).
Some questions for consideration:
7. Does extent of displacement (in dollar or percentage terms) indicate
priority for consideration of effort removal?
8. What role could a Technical Advisory Committee play in supporting decisions
regarding effort removal at the fishery level?
3.3 Sectoral measures Summary: Sectoral measures could provide funding for displaced fisheries to plan for and deliver
sustainable fishing and conservation outcomes within the fishery. There may be capacity to provide funding for projects to help a fishery adjust to the altered operating
environment created by the Commonwealth reserves.
The funding would be provided to deliver improved fisheries management. The types of sectoral
measures supported through the package would be expected to demonstrate that they would enhance
the ability of fisheries management agencies and industry to plan for and continue to deliver
sustainable fishing and conservation outcomes within the fishery. Supported projects would be likely
to result in both private and public benefit and deliver real benefits for fisheries and reserves
management. Another example of such investment would be the development and trialling of
electronic monitoring systems.
Assistance could be made available by way of competitive grants from a capped funding pool. Funding
could be delivered in full or on a co‐‐‐contribution basis to projects targeting a specific fishery. The
sectoral measure could potentially be led by fisheries management agencies, research organisations or
representative industry bodies, depending on the type of measure. Funding agreements could be
established consistent with Commonwealth accountability policies and requirements (such as the
Commonwealth Grant Guidelines).
12
Some questions for consideration:
9. Were this component to have a funding allocation rather than be solely an
alternative to other components what would be a reasonable allocation and
why?
10. What criteria should be considered to determine which fisheries are
eligible for sectoral measures?
11. What criteria should be considered to ensure that the greatest funding is
available for those fisheries facing the greater needs or which have developed
expenditure proposals with the greatest merit for public funding (or both)?
3.4 Business advice assistance
It is proposed that business advice assistance could be available to those businesses eligible for the
effort removal component of the package. It could be provided as a capped rebate (i.e. reimbursement)
to eligible entities to help them seek professional legal, business or financial advice to
support their participation in the package. Proof of expenditure would be required.
Question for consideration:
12. What benefit would there be in extending the provision of business
advice to directly impacted fishers ineligible for the effort removal
component of the package?
3.5 Assistance for employees
This element would be provided to fishing vessel workers (skippers and crew) who work on vessels
that are removed from the fleet through the effort removal or that otherwise cease to operate
because of the creation of the new Commonwealth marine reserves.
The employees could receive a one‐‐‐off payment to offset the costs they incur in finding new
employment (for example retraining, transport costs). This payment would be in addition to assistance
to individuals through programs available through government agencies such as Centrelink.
Commensurate with the previous Commonwealth commercial fishing structural adjustment programs
capped payments of approximately $3,000 could be provided to skippers and crew or other workers.
Payments could be made on application which was supported by the provision of a PAYG payment
summary from the business and statutory declarations by the employee and employer that
employment has permanently ceased as a direct result of the marine reserves.
13
4. Appeals
An appeals process established for the package must be cost‐‐‐effective and undertaken in a timely
manner to reduce costs for appellants, the government and other fishers.
Depending on the decision‐‐‐making rules it is envisaged that appeals should be limited to matters
where there is a possible misapplication of formula or data (for example within the transitional
business assistance assessment).
There would be limited grounds for appeal. The ‘rules’ themselves would not be contestable, only the
actual calculation, the use of particular data records and non‐‐‐receipt of the calculation. A single,
simple recalculation appeal would ensure fairness in the determination of allocations and eligibility.
14
CONSOLIDATED LIST OF THE QUESTIONS IN THE PAPER – They are not intended to limit the
scope of input, any additional comments will be equally welcomed.
Objectives and Design Principles 1. Noting the Fisheries Adjustment Policy are there any alternative or additional objectives that
should be considered for the Fisheries Adjustment Assistance Package? Please provide a
rationale.
2. Are there alternatives or additions to the proposed design principles which should be considered?
Transitional Business Assistance
3. Should a uniform reference period (2005/06‐‐‐2010/11 is proposed) be used for all fisheries or
should the reference period be tailored to the individual circumstances of each fishery? If so,
on what basis?
4. Should the years under consideration be calendar or financial years?
5. Should the qualifying years for the ‘best three in five’ calculation be determined at the fishery or
operator level?
What processes should be used to:
6a. Notionally allocate catches where data is held in the form of transects or grids; and
6b. Determine which years should be included for fisheries where material management
changes have occurred?
Removal of commercial fishing effort
7. Does extent of displacement (in dollar or percentage terms) indicate priority for consideration of
effort removal?
8. What role could a Technical Advisory Committee play in supporting decisions regarding effort
removal at the fishery level?
Sectoral measures
9. Were this component to have a funding allocation rather than be solely an alternative to other
components what would be a reasonable allocation and why?
10. What criteria should be considered to ensure determine which fisheries are eligible for
sectoral measures?
11. What criteria should be considered to ensure that the greatest funding is available for those
fisheries facing the greater needs or which have developed expenditure proposals with the
greatest merit for public funding (or both)?
Business advice assistance
12. What benefit would there be in extending the provision of business advice assistance to fishers
and entitlement holders who operate in fisheries where there is displacement arising from the
new reserves?
15
Appendix I
Fisheries Adjustment Policy
Supporting the creation of Commonwealth marine reserves
© Commonwealth of Australia 2011
Disclaimer
The views and opinions expressed in this publication are those of the authors and do not necessarily reflect those of the
Australian Government or the Minister for Sustainability, Environment, Water, Population and Communities. The contents of
this document have been compiled using a range of source materials and while reasonable care has been taken in its
compilation, the Australian Government does not accept responsibility for the accuracy or completeness of the contents of this
document and shall not be liable for any loss or damage that may be occasioned directly or indirectly through the use of or
reliance on the contents of the document.
Contents
A Policy Statement
1. A commitment to marine biodiversity conservation .................................................. I
2. A commitment to secure fisheries access ................................................................... I
3. Minimising impacts of MPAs on existing fishing activities .......................................... I
4. Interactions between MPAs and fisheries management ............................................ I
5. Assessment of, and assistance for, adjustment .......................................................... II
Policy Considerations for Displaced Fishing
1. Interaction between marine reserves and fisheries management ............................. IV
2. Fisheries Structural Adjustment and marine reserves ................................................ IV
A POLICY STATEMENT The Australian Government recognises that it has a responsibility to provide a policy framework that
has regard to the impacts on fishers and fishing‐‐‐dependent communities of decisions to establish
marine protected areas (MPAs). This policy updates the policy first set out by the Commonwealth in
2004.
1. A commitment to marine biodiversity conservation
The Australian Government has been working for more than a decade to establish a system of MPAs
that protects representative areas of our marine bioregions. The primary, although not only outcome of
establishing a representative system of MPAs, is the protection of marine biodiversity. This long‐‐‐ term
conservation goal is being pursued in cooperation with the states and Northern Territory through the
development of the National Representative System of Marine Protected Areas.
2. A commitment to secure fisheries access
The Australian Government is committed to the implementation of a system of secure and tradable
fisheries access entitlements. Such an approach encourages capital investment to maximise value
from, and conserve, fisheries resources. It is important that secure access entitlements are designed to
allow the fishing industry to adjust autonomously in response to environmental or market forces,
while maximising resource stewardship through improved tenure.
Improved fisheries security has been achieved since 2004 through fisheries restructuring, the allocation
of statutory fishing rights by the Australian Fisheries Management Authority (AFMA) and by the
promulgation of the Commonwealth fisheries Harvest Strategy Policy. Working together with the
fisheries assessment provisions of the Environment Protection and Biodiversity Conservation Act 1999
(EPBC Act), these initiatives are instilling ecosystem‐‐‐based management principles in fisheries
management. Similar advances are being made in state fisheries management systems as fisheries
managers and fishers together strive to continuously improve the economic and ecological
sustainability of Australia’s diverse and valuable wild catch fisheries.
3. Minimising impacts of MPAs on existing fishing activities
When MPAs are declared for public good reasons such as biodiversity conservation, the Government
has committed to a process that minimises impacts on existing fishing activities while still maintaining
scientific credibility and achieving conservation objectives.
Careful design of MPAs incorporating stakeholder input will ensure that MPAs have the least possible
impact on existing fishing operations. This can be achieved by utilising the knowledge and expertise of
stakeholders with genuine engagement. This will be the starting point for all MPA declaration or re‐‐‐
zoning negotiations undertaken on behalf of the Government.
4. Interactions between MPAs and fisheries management
Notwithstanding efforts to minimise impacts on fishing activities of new or re‐‐‐zoned MPAs, there will,
at times, be unavoidable impacts. This is because the declaration of an MPA is a resource allocation
process whereby marine resources are effectively reallocated from generating a private benefit such
as fishing, to a broader public good of biodiversity conservation.
I
The fact that private benefit activities – such as commercial fishing – often can, and do, continue in
MPAs does not alter the fact that a resource reallocation may have occurred. Where fishing continues
in MPAs, it does so under a revised management framework where the emphasis is on biodiversity
conservation as the primary objective.
Impacts on fisheries may vary greatly depending on the nature of the constraints within the MPAs and
the nature of the fishery. For example, an MPA that closes an area of a fishery that harvests migratory
or pelagic fish – such as tuna – through highly mobile fishing operations will have a different impact to
an MPA that closes an area where fishers catch sedentary (immobile) species such as abalone.
Restrictions on fishing activities from the declaration, zoning or management of MPAs should be
identified and accounted for in the process of developing MPAs. This should be done separately from
the restrictions placed on fishing by the normal management actions of fisheries management
authorities aimed at economic efficiency objectives or constraining the ecological impacts of the
fisheries within the context of an ecosystem‐‐‐based fisheries management framework. Separating
these will assist to ensure the maintenance of business confidence in the system of fisheries access
entitlements.
If the declaration or zoning of an MPA has a fisheries impact, the responsible fisheries management
agencies will make any necessary revisions to the fisheries management settings (eg reduce total
allowable catches, restrict fishing days etc).
Separating the attribution of costs and benefits of the impacts of MPAs from the costs and benefits of
impacts of normal fisheries management actions will assist the successful implementation of a
displaced fishing policy response. However, once these have been quantified and MPA impacts
determined, there is merit in aiming for co‐‐‐ordination with other initiatives if and when an adjustment
assistance program is required. Where possible, MPAs, fisheries management arrangements, and
regional community assistance programs should be managed through a whole of government
approach.
5. Assessment of, and assistance for, adjustment
While there is no constitutional or legal requirement for the Australian Government to provide
compensation to commercial fishers impacted by new or re‐‐‐zoned MPAs, the policy recognises that the
public good benefits flow to all Australians from MPAs. The costs of MPAs are likely to be borne in the
short‐‐‐term by a small group of private individuals and communities in marine‐‐‐related industry sectors.
However, it is expected that some marine resource use sectors may, in the longer term, receive private
benefits.
This policy framework is intended to address concerns about fairness and equity regarding the impacts
on individual fishers and those reliant on the fishing industry. Restrictions on fishing activities from the
declaration, zoning or management of MPAs will be identified and accounted for before MPA
declaration or re‐‐‐zoning.
Any decision on whether adjustment assistance will be provided to fishers or fishing dependent
communities as a result of an MPA declaration or re‐‐‐zoning will be made on a case‐‐‐by‐‐‐case basis. The
decision will be made only after an assessment of all the impacts is undertaken, including positive
impacts such as increased tourism opportunities.
A socio‐‐‐economic assessment will be prepared in consultation with fishing industry and local
community stakeholders and experts, to guide decision‐‐‐making and to ensure the implications of MPA
proposals are known to the Government before any decision for adjustment assistance is made.
II
The factors taken into account in making case‐‐‐by‐‐‐case decisions on adjustment assistance will vary
depending on the nature of the marine reserves and their impacts on different users. However,
typically, the following issues may be considered:
1. Are there significant and demonstrable negative impacts on individual fishers who have reduced
flexibility to respond? For example, due to:
(a) dependence on that element of the fisheries income that will be lost
(b) regional constraints on alternative investment/employment opportunities
(c) lack of financial resources, including loss of capital value due to the constraints on fishery activities,
and
(d) inefficiencies and/or increased costs to fishers due to a change in access arrangements for the area
of the fishery.
2. Are there significant and demonstrable negative impacts on local communities where those impacts
cannot readily be absorbed? For example, due to:
(a) having little diversification in their economies
(b) being within regions that are recognised as having reduced socio‐‐‐economic opportunities
(c) social profiles – such as age, skills, capacity for retraining etc, and
(d) no short‐‐‐term offsetting of impacts through benefits that may arise from marine reserves/zones
such as immediate tourism benefits/opportunities.
3. Will the MPA have a significant impact on the economic returns or the sustainability of the fishery,
including the extent to which the MPA may add to the need for adjustment of the fishery, resulting in
the relevant fisheries management agency needing to vary management controls for fisheries and
marine environment sustainability.
4. Additionally:
(a) Any structural adjustment scheme should be designed and implemented such as to avoid the
distortion of the orderly operation of the market for fishing access entitlements
(b) Any adjustment assistance scheme associated with MPAs should, where practicable, be integrated
with other relevant adjustment efforts either regionally or on a fishery or fishery sector basis, and
(c) Relevant fisheries management agencies and regional communities and stakeholders should have
the opportunity to participate in the design and implementation of any adjustment assistance
package.
III
POLICY CONSIDERATIONS FOR
DISPLACED FISHING 1. Interaction between marine reserves and fisheries management
Where practical, synergies between fisheries area management outcomes and MPA outcomes
can, and will be, developed, both in design and management.
Fishing effort displaced from an area by a MPA/zone declaration is likely to add to the effort in the
remainder of the fishery.
Fisheries managers will assess whether that additional fishing effort in the remaining fishery
creates an economic or ecological need to change fisheries management settings. Any such
validated and direct change would reasonably be attributable to the declaration of the MPA/zone.
Where fishing effort is being, or will be, reduced in a fishery to achieve fisheries management
outcomes, the impact of a MPA/zone that interacts with the fishery should be considered
separately to the fishery adjustment. This will ensure that MPAs/zones declared for non‐‐‐fisheries
purposes are not used to seek adjustment support for existing or future fisheries management
actions.
2. Fisheries Structural Adjustment and marine reserves
The Australian Government policy is that fisheries management regimes are designed to facilitate
market‐‐‐ based autonomous adjustment to changes in fisheries management arrangements.
Where fishing effort has been, or should be, removed from a fishery through normal management
action to meet fisheries objectives, adjustment assistance is not preferred, and has only been used
to facilitate the introduction of new fisheries management arrangements.
Where MPAs/zones create additional requirements for fishing effort reduction beyond that
required to achieve fisheries management objectives, Australian Government‐‐‐funded adjustment
assistance may be considered to support the additional adjustment to fishing effort.
Just terms compensation under the Constitution is not triggered by the declaration or modification
of MPAs/zones. However, where native title issues arise, just terms compensation may be payable
under the Native Title Act 1993. There is no existing statutory requirement for the Australian
Government to fund adjustment assistance for commercial fishers arising from marine
reserves/zones.
In certain circumstances, some additional adjustment assistance to offset foregone profit or
impacts on local communities may be considered.
Socio‐‐‐economic assessment of impacts of MPAs on fishers and communities will be used to inform
decision‐‐‐making by the Australian Government. Industry and community will be consulted in
preparing these assessments. In the event of a decision to provide adjustment assistance,
management agencies, industry and the community will be involved in program design. IV
