Deemed Value Rates
Deemed value rates
Management review 2016
Commercial fishers who do not balance catch with Annual Catch Entitlement (ACE) must pay a financial penalty, a deemed value payment. Deemed values are charged for each kilo of overcatch not covered by ACE. The per kilo cost may ramp up, on a sliding scale, depending on the species.
Deemed value rates are reviewed according to the Ministry for Primary Industries' (MPI's) Deemed Value Guidelines. Application of these Guidelines has identified six stocks for review in 2016. MPI has proposed to retain the status in three of these six stocks - Giant spider crab 5 (GSC5), Southern blue whiting 1 (SBW1) and Coromandel scallops (SCA CS).
MPI proposes changes in the deemed value rates for three other stocks: Sea cucumber 3 (SCC3), Triangle shell 7 (SAE7) and Deepwater tuatua 7 (PDO7).
The New Zealand Sport Fishing Council and New Zealand Angling and Casting Association (NZACA) submitted in response to the proposals for Coromandel scallops (SCA CS), Triangle shell 7 (SAE7) and Deepwater tuatua 7 (PDO7). The Council has made substantive submissions on the deemed value regime for a decade. Our 2012 deemed value submission is here.
The joint submitters believe the deemed value regime needs to be acknowledged as a failure to constrain commercial catch to the statutory limits sets in some fish stocks. A more flexible mechanism is required to remove the incentive for fishers to overcatch the Total Allowable Commercial Catch (TACC).
The current review demonstrates the earlier concerns are still valid because the deemed value system continues to incentivise either overfishing or dumping, depending on the landed and export price of that species.
Click on the right-hand image to read or download the document. Most recent activity is at the top of the list.
Nathan Guy, the Minister for Primary Industries, has increased the deemed value rates applying to three species, including two surf clam species that were being overfished. The new rates of $5.00 per kilo for Triangle shell 7 (SAE7) and Deepwater tuatua 7 (PDO7) are still below the reported export price of $8.00 per kilo so there is still an incentive to excessively harvest these stocks and make a healthy profit.
The New Zealand Sport Fishing Council and New Zealand Angling and Casting Association recommend that the deemed value regime is acknowledged as a failure so a more flexible mechanism can be developed so that the incentive to overcatch the TACC and receive future ACE increases is removed. The failure to control excess catch and the profitable rewards from landing overcatch are likely contributing factors to the proposals to increase the TACC in Triangle shell 7 (SAE7) and Deepwater tuatua 7 (PDO7), by 110% and 385% respectively.
The New Zealand Sport Fishing Council summarises the available information before a submission was developed in response to the deemed value review. This summary document highlights concerns and recommends that there needs to be a mechanism to provide for small amounts of unanticipated non-target catch. However, in a target fishery such as Triangle shell and Deepwater tuatua, excessive overcatch is cynical and unacceptable.
The Ministry for Primary Industries (MPI) propose new deemed value rates for two fish stocks whose TACCs have been regularly overcaught: Triangle shell 7 (SAE7) and Deepwater tuatua 7 (PDO7). MPI also propose to increase the deemed value rate for Sea Cucumber 3 (SSC3).