April 20, 2006

New Zealand's fish farmers protest restrictive expansion laws

Calls for an overhaul of current legislations are getting louder as New Zealand's fish farmers, beset with the twin burdens of restrictive expansion laws and multiple charges, become disillusioned in what was once a fast-growing export industry.

Industry leaders say a law enacted in Jan 1, 2005 putting the approval of new farms in the hands of local councils makes applying for new farms or extensions of farm space expensive, long-winded and uncertain.

New marine farms, or extensions, must be in designated Aquaculture Management Areas, or AMAs, and tendered on the market by local councils. No new AMAs have been created since the new law was enacted, effectively cutting off the establishment of new marine farms since Jan 1, 2005.

Graeme Coates, executive officer of the Marine Farming Association, believes there is a lack of confidence among councils about the process for allocating new aquaculture space. This lack of confidence stems from uncertainty on costs and the length of the process, the lack of certainty of outcome and limits on species to be grown, said Coates

Paul Steere, chief executive of New Zealand King Salmon, said New Zealand was well placed to meet growing demand for seafood as consumers increase their protein intake. Furthermore, the aquaculture industry is poised to grow at a time when traditional fishing activities are winding down.

It is important for the industry to be able to expand farm space and business owners need to gain a clear understanding of their obligations to the central and local government to move forward, Steere said.

Fisheries Minister Jim Anderton said he was aware of the problems, but was not yet willing to review legislation which councils were still working through. Anderton said the Government had offered local councils help to deal with the new legislation, but these measures need to be given time to work.

Mussel Industry Council chairman Peter Vitasovich, who owns Greenshell New Zealand, described the law as "a mess". He has already spent about US$1 million on an application started nine years ago to expand, with no results so far.

Vitasovich said marine farmers were also straining under the multitude of charges that threaten to overwhelm the industry. The industry has overcome various barriers over the years but the aquaculture laws would be the straw breaking the camel's back, he added.

Anderton agreed that councils had to be careful not to price marine farming out of existence, adding that the industry had strong economic potential through its ability to create jobs. Three out of 10 people in New Zealand's seafood industry is involved in aquaculture.