PAUAMAC2 - Industry Proposal to SubdividePAU2 into 6 new Quota Management Areas

Overview

• Background Information

• The Industry Proposal

• Working Groups Initial Response

• Recommendations

• Where to Next?

Maori Paua Quota Ownership

Stock status  PAU2 Total 

QMAs(T)Settlement 9.9 98.5AFL 53.6 318.3Normal quota shares  4.6 54.1Totals 63.6 470.39TACC 121.1 1057.4Maori % of TACC 56 44

The Paua2 Fishery

• 2nd largest PAU QMA 1300km

• Commercial Management (CSO) PAUAMAC2

• TACC 121t

• ACE Value kg $25

• Total ACE Value $3m

• Asset Value $42.3m

• Iwi having settlement interests23

• Non commercial allowances Nil

• Area Harvested Wairarapa

PAU2 Quota Management Area

Fine scale reporting areas

Which iwi have an interest in the 8.2% PAU2 settlement shares?Iwi shareholdings in 8.2% entitlement quota shares Share of 8.2% Tonnage ACE Values $

Te Ohu Kai Moana holding shares on behalf of: Te Atiawa ki PonekeTe Runanga o Toa Rangatira IncorporatedTe Runanga o Ngati Raukawa IncorporatedNgati Mutunga Iwi Authority IncoprporatedTe Runanga o Ati Awa ki Whakarongotai IncorporatedTe Runanga o Ngati PorouNgati TamaRongowhakaata Charitable TrustTe Runanga o Ngati Apa Society IncorporatedMuaupoko Tribal Authority IncorporatedTe Aitanga a Mahaki TrustTe Whanau Apanui ManiapotoTe Atihaunui a Paparangi

3.2 4.016 100,400 

Ngati Kahungunu 2.9 3.512 87,800Rangitane O Te Ika A Maui Ltd 0.6 0.702 17,550Taranaki Iwi Fisheries Ltd 0.4 0.501 12,525Te Pataka o Tangaroa 0.3 0.320 8,000Ngati Ruanui Fishing Ltd 0.2 0.239 5,975Ngai Tamanuhiri Asset Holding Company 0.2 0.236 5,900Te Atiawa (Taranaki) Holdings Ltd 0.2 0.233 5,825Ngaruahine Fisheries Ltd 0.2 0.230 5,750Maruehi Fisheries (N Mutunga) 0.001 25.00

Totals 8.2% 9.989t 249,750

• Go to page p13• 8.2% = 9.9t • 23 iwi have an interest• 9 iwi already have entitlements• 14 iwi to agree on 3.2% quota share splits

– quota held by Te Ohu pending resolution• Existing allocations in packages between 230kg to 4t• Majority packages likely to be below 200kg• Generates roughly $250k in ACE value per annum

Industry proposal

• 6 new QMAs• 100 million shares in each new QMA split on the same

basis as the current distribution• TACCs in new areas set at zero other than PAU2D• Good Will

– New QMAs aligned to iwi groupings– Iwi trade in and out of QMAs– 10% incentive - except PAU2D

• Support for localised Management

Proposed Industry Boudaries

Legal Position• Any subdivision or amalgamation under Fisheries Act requires

Minister’s approval• Proposal cannot unduly prejudice any quota owner who owns

shares and opposes• Can make recommendation to subdivide if

– greater than 75% support; or– necessary for sustainability

• Proposal must include – Boundaries proposed– Manner in which quota shares apportioned– Interests of any aggrieved quota owner

• Proposal allows you to suspend normal allocation rules for Settlement quota if all iwi in QMA agree

Working Group Views

• Support the subdivision proposal in principle subject to issues in each proposed QMA being resolved

• The PAU2 QMA is too big to manage as one paddock

• The opportunity is there for iwi to better protect and grow their commercial and non-commercial interests in the paua fishery

• Opportunity for Iwi to further invest in the commercial paua fishery, inside and outside their respective areas

Current and Future StatesCurrent State:•Customary fishing is constrained•No or little recognition of important mahinga kai•Lacking systems and processes to support effective fisheries management decision making•Poor compliance•MPAs still to come•No $$ resourcing

Future State:•Kaitiaki trust•Important mahinga kai and non-commercial areas are recognised and managed appropriately•Improving fishery officer and HFO networks to support fisheries management•Hapu involvement in commercial development•Catch information sharing/systems are in place for recreation•Kaitiaki are adequately supported•Kaitiaki and Iwi Fish Managers influencing the effective and efficient management of the paua fishery

Anticipating Two Steps?

1. Request Minister to subdivide PAU2 QMA

2. Staged removal of constraining regulations where it is appropriate and implementation of management strategies (opportunity to realign management to new desired state)

Pre and Post Subdivision Shareholdings if 10% Incentive Accepted

Pre and Post Subdivision “Quota Shareholdings”  Tairawhiti Te Matau a 

MauiWairarapa Whanganui a 

TaraKapiti Taranaki

  PAU2A PAU2D Only “quota shares” are transferred, not

quota ACE

Settlement shares 8.2% 8.2%

10% incentive 10% 0

AFL Holdings 44.0% 39.6%

Iwi normal shares 3.51% 3.9%

Others 38.69% 43.90%

All Totals 100% 100%

Total iwi Interests 61.31% 61.31 56.10% 61.31% 61.31% 61.31%

Expected TACC 0 0 121 0 0 0

Short to Long Term ProspectsHoldings PAU2D – Wairarapa PAU2E  – Wellington  (based upon 

a 10t TACC)All other Areas 

Settlement shares @ 8.2%

10t 820kg Medium to long term development

10% Incentive(normal shares)

Nil 1 t

Normal shares owned by MIO or AHCs

4.6t 351kg Requires investment and incentives – need to scope the potential of each area

AFL Holdings  53.6 3.96t

Other non-iwi normal quota share holdings

53.11 3.87t Develop rebuild and maintenance strategies

Total iwi and Te Ohu Group (AFL) interests

63.6tACE Value = $1,590,000Capital Value = $22,260,000

6.13tACE Value =$153,250Capital Value =$2,145,500

All totals 121tACE Value = $3,025,000Capital = $42,350,000

10tACE Value = $250,000Capital = $3,500,000

Producing customary & commercial currencies

The Tool Box

• MLS variations • Paua reseeding• Catch spreading/

zones• Data loggers• Harvest standards• Shelving• Spatial management

Proposed Boundaries

Relevant considerations•Iwi rohe moana•Regional boundaries•Coastal agreements•Existing FMA boundaries

• Minor boundary changes• Changes in the number of iwi in each new QMA not large

PAU2A: Lottin Point to Paritu

• 5 Iwi• Beds are spread out• 125mm Paua• Closed to commercial• Marine Reverse• Hapu association with

beds are strong• No customary data

PAU2B: Paritu to Poroporo

• 2 iwi• Beds are scattered• Hapu associations with

beds are strong• Dirty water• Currently closed• Marine reserve• Ngati Kahungunu Plan• Mataitai

PAU2D: Poroporo to Turakirae

• 2 iwi• Good fishery• Encompasses the

commercial area• Ngati Kahungunu Plan• Ngati Hinewaka• Hapu associations with

paua beds are strong

PAU2E: Turakirae to Titahi Bay

• 2 iwi• Good beds• Industry advocate opening

with 10t TACC • Marine Reserve• Iwi associations with beds are

strong• Concerns have been raised by

iwi re customary access• Currently closed commercial• Illegal activity

PAU2F: Titahi Bay to Kai Iwi

• 7 Iwi • Very few reefs

identified• Mainly surf beaches• Paua stocks at Pukerua

Bay and Kapiti Island• Marine Reserve• Illegal activity

PAU2G: Kai Iwi to Tirau Point

• 10 iwi• Beds are known to exist

north of Patea• Paua reefs are not shown

on marine charts – can be googled

• Marine Reserves• 85mm MLS for recs• Illegal harvest• Hapu associations with beds

are strong

The Working Group Recommendations

1. Iwi/Industry Agreement– Develop overarching principles– Develop specific QMA Agreements where supported by iwi– Clarify commercial arrangements

2. Iwi agreements required– Quota Shareholders agreement – who gets what?

– Internal swaps and trades possible

– Boundaries

Iwi/Industry Generic Agreement

Examples of overarching principles:•No sectors should be worse off •High level agreements regarding management•Stock assessments used to inform TAC settings•Protection of important mahinga kai•Collaborative management strategy – looking after local communities•Customary non-commercial fishing interests are managed as a priority •Kaitiaki Trust

Specific Agreements

Arrangements in each QMA that can be agreed prior to a proposal being submitted to Minister•Mataitai•Taiapure•Areas managed under different strategies i.e customary, commercial, recreation, integrated

Commercial Interests

• 10% settlement quota shares in each new QMA, up from 8.2%

• 10% additional quota shares in each new QMA to be allocated to iwi

• 10% quota shares set aside for Kaitiaki Trust, partnership between iwi and stakeholders

• Local iwi have rights of first refusal on all “normal quota shares” held in each new QMA. Other iwi have second rights and Te Ohu Group have third right

Allocation Scenario – Settlement Shares

• Scenario 1 (the default): current settlement shares mirrored in each new QMA (As per MFA):– No practical change on “day one”: no-one worse off– Opportunity consolidate shares within different QMAs by

trading, if desired– Te Ohu allocate shares it holds as though no subdivision– Any subsequent changes would need to follow Maori

Fisheries Act procedures to carry out sales or exchanges.

• Scenario 2: Allocate only to those iwi whose coastline is in each new QMA:– Agreement to change current proportions made up-front

(part of Quota Owner Agreement under Fisheries Act) – Avoid need to trade later in order to consolidate shares

in “your own back yard” – But: iwi with no coastline interest in PAU2D receive no

income from current commercial harvest– Te Ohu allocates shares it holds as per agreement

between MIOs– If not agreed by all iwi, revert to Scenario 1.

Allocation Scenario – Settlement Shares

Allocation Scenario

• Scenario 3: Allocate only to those iwi in each new QMA (except retain current proportions in PAU2D):– Iwi continue to hold shares in PAU2D and therefore

receive income as now– Allocation for other 5 new QMAs agreed up-front

(as for Scenario 3)– Te Ohu allocates shares in PAU2D as though no

subdivision; Te Ohu allocates in other QMAs according to iwi agreement

– Any changes to PAU2D can be made through sales or exchange provisions of Maori Fisheries Act

– If not agreed by all iwi, revert to Scenario 1

Recommend Allocation Methodology

• Based on feedback from iwi• 10% settlement quota - allocation based

on current arrangements• 10% commercial incentive – allocated only

to those iwi in each QMA

Quota share sales and swaps anticipated• Consolidate• Swap with PAU 2D• MFA rules suspended in the transition

Iwi Doing Their Own Research?

• What are the iwi aspirations in each proposed new QMA?

• Need to do a stock take – how big are the reefs and what is the potential?

• What areas (within QMAs) have potential to be opened for commercial development?

• What are the needs of non-customary fishers?

• Illegal harvest – how big a problem is it?

• Where are the important customary fishing areas and how can they best be managed?

The Process Moving Forward

• Feedback to representatives or Te Ohu by Nov 9th

• Working group will review recommendations• Hui a iwi with MIO and AHCs – 6 December –

final recommendations• If the proposal is not supported? • If the proposal is supported:

– Negotiations with industry– Further report back to iwi

PAUAMAC2 - Industry Proposal to SubdividePAU2 into 6 new Quota Management Areas