Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Re-flagging foreign fishing vessels threat to quota value

Re-flagging foreign fishing vessels threat to quota value: govt report

By Paul McBeth

May 22 (BusinessDesk) - The value of New Zealand fishing quota could drop because of the government's decision to require foreign-flagged fishing vessels to register under the New Zealand flag within four years.

The new policy was announced today in response to the mistreatment and underpayment of crews working on some boats, which has also sparked an investigation by the Korean government of Korean-owned vessels.

Primary Industries Minister David Carter and Labour Minister Kate Wilkinson jointly said foreign-flagged vessels won't be able to operate legally after a four-year transition period in a move to put the ships under New Zealand labour and maritime law. That means a foreign-owned charter vessel will operate under local law and will need a responsible New Zealand operator to hire crew.

The decision goes beyond the recommendation of a ministerial inquiry headed by former Cabinet Minister Paul Swain, which advised restricting registration to vessels on demise charter. A demise charter is a ship leasing arrangement where the use of the entire vessel and all associated expenses pass from the owner to the lessee.

The report said reflagging was seen as the "cleanest and most comprehensive way of addressing the issue of flag and coastal State jurisdiction," by government officials, but held "uncertainties and risks" for the future of the foreign-owned fleet and the fishing industry in general.

"A number of firms and regional economies that depend heavily on the business generated by the FCV fleet could be adversely affected by the requirement to reflag," the report said. "Reflagging could also reduce the value of quota and the price of ACE (annual catch entitlement) if it resulted in a significant downsizing of the FCV fleet."

The inquiry was launched after 32 Indonesian crew aboard the Oyang 75 walked off the vessel, alleging abuse by the ship's Korean crew.

Carter said the reflagging will "further strengthen compliance with New Zealand laws" and improve transparency of foreign-owned vessels.

"The government continues to welcome foreign charter fishing vessels operating in New Zealand waters, but they must meet our requirements and our standards," he said.

Local fishing company Sanford said it was too early to assess the impact of the government's decision, which will also have to be considered by "current vessel owners to determine the effect and their willingness to allow the vessels to be reflagged."

The Swain-led panel's report said it would be difficult to predict the response to reflagging by foreign owners, or how quickly the local fleet would be able to fill any gap left by those who quit New Zealand.

"Many companies would regard a requirement to reflag to New Zealand as a disproportionate response to the problems and would clearly prefer that any decision to reflag be made by them on commercial grounds," the report said.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Insurers Up For More Payouts: Chch Property Investor Wins Policy Appeal In Supreme Court

Ridgecrest NZ, a property investor, has won an appeal in the Supreme Court over insurance cover provided by IAG New Zealand for a Christchurch building damaged in four successive earthquakes. More>>

ALSO:

Other Cases:

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news