The Price of Fish
In 1986, the New Zealand government introduced the QMS (Quota Management System) to regulate fishing in the country's coastal waters, which extend 200nm offshore and are divided into 10 Fisheries Management Areas (FMAs). Under the QMS, most fish species are subject to catch quotas within the Total Allowable Catch (TAC) and the Total Allowable Commercial Catch (TACC). The TACCs are reviewed annually by MPI (Ministry for Primary Industries), and based on fish populations, the appropriate TACCs are allocated to the FMAs. These TACCs are further divided into Individual Tradeable Quotas (ITQs), which are permanently given to commercial fisheries for free. This reflects the neoliberal policy decisions of that era, where public assets were divided among private interests as a means to generate wealth for the elite. Neoliberal economics assumes that wealth will trickle down from the wealthy to working-class citizens. However, this approach has led to fisheries feudalism, with a few quota owners (referred to as quota lords) controlling a significant portion of the fishing industry, as cited in Bhana's work in 2020. Currently, 78% of NZ fishing quota is owned by just 10 commercial entities who collect rent from those engaging in fishing activities.
The QMS was implemented to address dwindling fish populations, but it has resulted in reduced tax revenue from fishing and a decline in job opportunities, particularly in the regions. Inshore small-scale fishermen are facing declining fish populations and increasing conflicts with other fisherfolk. Many of these small-scale fishermen find fishing unsustainable under the QMS, which appears to favor large-scale operations (Bhana, 2020). This has had detrimental effects on small communities that once relied on fishing for their livelihoods. Large companies operate from large ports with massive factory vessels and onshore processing plants, making it challenging for local communities to access abundant fish at reasonable prices. Fish is often sold at local markets at export prices, making it unaffordable for low-income earners.
There are alternative ways to manage fisheries, as seen in the Faroe Islands: All fisheries must be biologically, economically, and socially sustainable. All living marine resources remain the property of the people and cannot be owned by private companies or individuals or sold abroad. New legislation prohibits private sales of licenses and fishing rights. Fishing rights are granted based on market-based principles, and catches are processed locally for added value. Only Faroese-owned companies registered in the Faroe Islands, paying taxes in the Faroes, are allowed to participate in Faroese fisheries. The government plans to remove all foreign ownership from the industry before 2022. Remarkably, the Faroe Islands' government resource rental system for fisheries generates income to fund their healthcare system (as cited in Bhana, 2020).
According to marine biologist Dr. Dan Pauly, if fish populations are reduced to 50%, it signifies the Maximum Sustainable Yield, and harvesting beyond this level is not sustainable. In the Hauraki Gulf, crayfish populations have declined to around 1%, classifying them as "functionally extinct." Many fisherfolk and researchers believe that the ITQ system primarily benefits large businesses, making it challenging for small fisher companies to compete under the QMS/ITQ system. MPI surveillance operations have revealed that inshore fishing trawlers were discarding a significant portion of their catches, with some quota fish being discarded between 20% to 100% of the haul (MPI, n.d.). Furthermore, evidence indicates that fishers have captured and killed endangered Hector's dolphins.
The practice of high-grading involves fishing boats discarding lower-grade fish to make room for more valuable species, leading to increased profits for fishers. MPI acknowledged the issue of dumping and discarding fish but expressed challenges in addressing the matter (as cited in Bhana, 2020). Non-reporting of Hector's dolphins also poses a significant concern. The Sea Around Us Report estimated that between 1950 and 2013, unreported dumped commercial catch was over 14 million tons, enough to feed New Zealanders for approximately 125 years at current consumption rates (Sea Around Us, 2016).
Commercial fishing has had a devastating impact on Hector's and Maui dolphins, with the Maui dolphin population now reduced to around 30 adults. To reduce the risk of dolphins getting caught in nets, fishing methods need to be modified (cited in Bhana, 2020). Additionally, over 80% of New Zealand seabirds are being caught in commercial fishing practices, with around 15,000 estimated to be caught and killed by the fishing industry each year (Forest & Bird, as cited in Bhana, 2020). However, no assessments have been conducted for 56% of NZ fish populations as of 2020 (Bhana, 2020).
The QMS sets fishing method standards within the industry itself rather than relying on external marine scientists. The system incentivizes fish dumping, and companies caught doing this are often not prosecuted (Bhana, 2020). Tradable shares within the TACC further complicate matters, creating a market-based system where fish are treated as tradable commodities instead of essential components within the ecosystem. Scientists' suggestions for fisheries management improvements are often disregarded by the industry.
Fisheries researcher Barry Torkington points out that poor management has led to the collapse of fisheries. To address this, Torkington proposes a shift towards putting ecosystems and fish populations at the forefront of laws and policies (as cited in Bhana, 2020). According to Torkington, implementing the following measures will make improvements to fisheries management in New Zealand.
1. Public education on fisheries management.
2. To gain buy-in from Māori on new ways to manage fisheries.
3. Encourage political action for fisheries management improvements.
4. Develop ecological based principles to manage fish populations.
5. Develop a new fisheries Act.
6. Implement what the Faroese Islands have developed to manage fisheries.
7. Incorporate aspects and principles within the Treaty of Waitangi.
8. Collaboration and commitment for continued improvements for fisheries management (Torkington, as cited in Bhana, 2020).
References:
Bhana, M. (2020). The Price of Fish. Retrieved from https://www.youtube.com/watch?v=dIQNDYoymMU
Sea Around Us. (2016). NEW ZEALAND FISHERY CATCH ESTIMATED AT 2.7 TIMES MORE THAN REPORTED: STUDY. Retrieved from https://www.seaaroundus.org/new-zealand-fishery-catch-estimated-at-2-7-times-more-than-reported-study/
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