New Zealand Federation of Commercial Fishermen Incorporated v The Minister of Fisheries HC WN CIV 2008-485-2016

Case

[2010] NZHC 54

23 February 2010

No judgment structure available for this case.

IN THE HIGH COURT OF NEW ZEALAND WELLINGTON REGISTRY

CIV-2008-485-2016

UNDER  Part 1 of the Judicature Amendment Act

1972

IN THE MATTER OF     an application for review and interim orders

BETWEEN  THE NEW ZEALAND FEDERATION OF COMMERCIAL FISHERMEN INCORPORATED

First Applicant

ANDCHALLENGER FIN FISHERIES MANAGMEENT COMPANY LIMITED Second Applicant

ANDSOUTH EAST FINFISH MANAGEMENT LIMITED

Third Applicant

ANDNORTHERN INSHORE FISHERIES COMPANY LIMITED

Fourth Applicant

ANDTHE MINISTER OF FISHERIES First Respondent

ANDTHE CHIEF EXECUTIVE OF MINISTRY OF FISHERIES

Second Respondent

Hearing:         15 - 17 June 2009

Appearances:  Mr Scott with Mr Carter for the first to fourth applicants

Mr McCarthy with Mr Ward for the first and second respondents

Judgment:      23 February 2010 at 11.30 am

JUDGMENT OF MALLON J

The New Zealand Federation Of Commercial Fishermen Incorporated And Ors V The Minister Of Fisheries And

Anor HC WN CIV-2008-485-2016 [23 February 2010]

Contents

Introduction ......................................................................................................................................... [1] Present position ................................................................................................................................... [4] The law................................................................................................................................................ [7] Legislation ................................................................................................................................. [7]

Case law................................................................................................................................... [18] General factual background .............................................................................................................. [42] The dolphins ............................................................................................................................ [42]

Fishing-related mortalities ....................................................................................................... [46] Overview of the process leading to the Minister‟s decision .................................................... [47] The overall approach of the Minister ....................................................................................... [56] Further information.................................................................................................................. [60]

The WCNI decision........................................................................................................................... [62] Background details ....................................................................................................................... [62] The population ......................................................................................................................... [62]

The fishers ............................................................................................................................... [63] Fishing-related mortalities ....................................................................................................... [65] Measures in place pre-Minister‟s decision .............................................................................. [66]

The decision ................................................................................................................................. [68] The aspects of the decision that are challenged ....................................................................... [69]

The interim relief .......................................................................................................................... [70] Extension of the offshore set net prohibition from 4 nm to 7 nm ................................................. [71] The grounds of challenge......................................................................................................... [71]

The circumstances leading to the 7 nm extension.................................................................... [72] The Minister‟s reasons........................................................................................................... [102] Other evidence ....................................................................................................................... [105] Affidavit evidence ................................................................................................................. [107] Best available information ..................................................................................................... [112] Prohibition a “necessary” measure ........................................................................................ [125] Consultation........................................................................................................................... [128]

Extension of the Manukau Harbour entrance closure ................................................................. [134] The grounds of challenge....................................................................................................... [134] Circumstances leading to extension....................................................................................... [135] The Minister‟s reasons........................................................................................................... [158] Best available information ..................................................................................................... [159] Prohibition a “necessary” measure ........................................................................................ [163] Consultation........................................................................................................................... [166]

Prohibition on ring netting.......................................................................................................... [169] The grounds of challenge....................................................................................................... [169] The regulations ...................................................................................................................... [170] The evidence .......................................................................................................................... [173] Discussion.............................................................................................................................. [174]

The WCSI decision ......................................................................................................................... [177] The dolphins .......................................................................................................................... [177] The fishers ............................................................................................................................. [178] Fishing-related mortalities ..................................................................................................... [179] Measures in place pre-Minister‟s decision ............................................................................ [180] The Minister‟s decision ......................................................................................................... [181] The aspect of the decision that is challenged ......................................................................... [182] The interim relief ................................................................................................................... [183] The grounds of challenge....................................................................................................... [184] The circumstances leading to the decision............................................................................. [185] The Minister‟s reasons........................................................................................................... [197] Best available information ..................................................................................................... [199] Prohibition a “necessary” measure ........................................................................................ [200] Decision “unreasonable” ....................................................................................................... [206]

The ECSI decision........................................................................................................................... [207]

The dolphins .......................................................................................................................... [207] The fishers ............................................................................................................................. [208] Fishing-related mortalities ..................................................................................................... [209] Measures pre-Minister‟s decision .......................................................................................... [210] The Minister‟s decision ......................................................................................................... [211] The aspect of the decision that is challenged ......................................................................... [212] Interim relief .......................................................................................................................... [213] The grounds of challenge....................................................................................................... [214] The advice to the Minister ..................................................................................................... [215] The Minister‟s reasons........................................................................................................... [225] Evidence about net size ......................................................................................................... [227] Evidence about where fishers fish for butterfish ................................................................... [229] Evidence about where dolphins found ................................................................................... [230] Evidence about fishing related mortality ............................................................................... [233] Best available information (nature and operation of butterfish operation) ............................ [237] Best available information (other measures) ......................................................................... [245] Prohibition a “necessary” measure ........................................................................................ [246]

The SCSI decision ........................................................................................................................... [248] The population ....................................................................................................................... [248] The fishers ............................................................................................................................. [249] Fishing-related mortalities ..................................................................................................... [250] Existing measures .................................................................................................................. [251] The Minister‟s decision ......................................................................................................... [252] The aspect of the decision that is challenged ......................................................................... [253] Interim relief .......................................................................................................................... [254] The grounds of challenge....................................................................................................... [255] The butterfish exemption ....................................................................................................... [256] The Minister‟s reasons........................................................................................................... [266]

Assessment of challenge not to exempt the butterfish fishery in the Bluff area ......................... [268] Best available information ..................................................................................................... [268] Prohibition a “necessary” measure ........................................................................................ [271] Assessment of challenge to 4 nm closure ................................................................................... [275] Best available information/prohibition not “necessary” ........................................................ [275]

Conclusion ...................................................................................................................................... [277]

Introduction

[1]      Extensive fishing prohibitions on set netting and trawling in various parts of New Zealand‟s  fishery  were  put  in  place  with  effect  from  1  October  2008.                  The Minister  of  Fisheries  viewed  the  prohibitions  as  necessary  to  avoid,  remedy  or mitigate  fishing-related  mortality  on  the  protected  Hector‟s  and  Maui‟s  dolphin populations.   The  dolphins  are  one  of  the  rarest  dolphin  species  in  the  world  and occur only in New Zealand.  The Minister‟s approach was a precautionary one.   He considered  there  was  good  evidence  that  where  the  dolphins  and  set  netting  and trawling overlapped, there was a risk to the dolphins of fishing mortality, although there was uncertainty as to the extent of the risk.   He sought to minimise that risk. Essentially  he  did  so  by  prohibiting  set  netting  and  trawling  in  areas  where  the information before him indicated the dolphins were present.

[2]      The impact of these prohibitions on commercial fishers is substantial, involving an estimated economic cost of up to $79 million over a 5 to 10 year period and job losses of 295 in the wider community. The applicants, who are organisations representing affected commercial fishers, view the Minister’s decision to  put  in  place  these  prohibitions  as  arbitrary  and  unfair.     They  challenge  the Minister‟s decision in this judicial review proceeding.  Initially the challenge was to the decision in its entirety.   However, recognising the limited role the Court has in judicial  review  proceedings,  they  refined  their  challenge.   Their  challenge  is  now made to:

a)        On  the  West  Coast  of  the  North  Island  (WCNI)  the  following three areas:

i)        the extension of an existing offshore set net prohibition from

4 nm to 7 nm;

ii)the  extension  of  an  existing  Manukau  Harbour  prohibition further into Manukau Harbour; and

iii)the  prohibition  on  ring  netting,  as  a  consequence  of  the prohibition on set netting in WCNI harbours.

b)On  the  West  Coast  of  the  South  Island  (WCSI),  in  respect  of  the seasonal 2 nm offshore set net prohibition.

c)        On the East Coast of the South Island (ECSI), the refusal to grant an exemption  to  the  4 nm  set  net  prohibition  to  allow  the  targeting  of butterfish in a designated area at the top of the ECSI.

d)       On the South Coast of the South Island (SCSI):

i)the 4 nm offshore set net closure outside Te Waewae Bay (ie from Old Man Point to Slope Point);

ii)the   refusal   to   grant   an   exemption   to   the   4 nm   set   net prohibition to allow the targeting of butterfish in a designated area around Bluff.

[3]      The grounds of challenge are that:

a)        the  Minister/the  Ministry  of  Fisheries  did  not  take  into  account  the best available information in accordance with a statutory requirement to do so;

b)        the Minister/the Ministry imposed measures that  were not necessary

to  avoid,  remedy or  mitigate  the  effect  of  fishing-related  mortalities on the population of Maui‟s and Hector‟s dolphin;

c)        the Minister/Ministry breached their consultation obligations; and

d)       the decision in respect of WCSI was unreasonable.

Present position

[4]           On 26 September 2008 the High Court granted interim relief in favour of the applicants (New Zealand Federation of Commercial Fishermen & Ors v Minister of Fisheries   &   Ors   HC   Wellington   CIV-2008-485-2016,   26   September   2008). Specifically it  ordered  that  the  respondents  ought  not  to take  any further  action  to give effect to the decisions, or to enforce the regulations put in place to give effect to the decisions, in respect of the fishing activities in areas and at times specified in the order.  This relief was granted pending the substantive hearing.

[5]      In the main the interim relief  was  granted  in  respect  of  the  parts  of  the

Minister‟s decision that are pursued by the applicants in their refined challenge that

is now before me.   That relief was to protect the position of fishers said to be most severely impacted  by the  Minister‟s  decision.   The  interim  relief  was  subject  to  a condition  that,  if  a  Hector‟s  or  Maui‟s  dolphin  mortality  occurred  as  a  result  of fishing activity permitted by the interim relief, the relief would terminate.

[6]      By  the  time  of  the  substantive  hearing  there  was  no  reported  Hector‟s  or Maui‟s  dolphin  mortality  as  a  result  of  fishing-related  activity  permitted  by  the interim relief.  The interim relief was then extended by consent orders to enable the specified  fishing  activity  to  continue  pending  the  delivery  of  this  judgment.   The Court has not been informed of any mortality from fishing activity permitted by the extended period of the interim relief.

The law

Legislation

[7]      The Minister‟s decision was made pursuant  to  s  15(2)  of  the  Fisheries  Act

1996  (the  Act).   Section  15  is  concerned  with  fishing-related  mortality  of  marine mammals  or  other  wildlife.   Section  15(1)  empowers  the  Minister  to  take  certain steps or measures where there is an approved population management plan in place. Section 15(2) provides:

In  the  absence  of  a  population  management  plan,  the  Minister  may,  after consultation with the Minister of Conservation, take such measures as he or she  considers  are  necessary  to  avoid,  remedy,  or  mitigate  the  effect  of fishing-related mortality on  any protected species, and  such  measures  may include setting a limit on fishing-related mortality.

[8]      Protected species,  as referred  to in this section,  is defined  as including any marine mammal as defined in s 2(1) of the Marine Mammals Protection Act 1978. Hector‟s and Maui‟s dolphin are within this definition.

[9]      Section  15(3)  empowers  the  Minister  to  obtain  information  about  fishing related mortality as follows:

The  Minister  may  require,  or  authorise  the  chief  executive  to  require,  any person  or  class  of  persons  listed  in  section  189  of  this  Act  to  give  to  the Minister  or the  chief  executive  such  information  relating to  fishing-related mortality as the Minister or chief executive, as the case may be, considers necessary, and may require, or authorise the chief executive to require, such information to be given in the approved manner and form.

[10]         To implement measures under s 15(1) to (3), the Minister may recommend the making of regulations (s 15(4))  The Minister may also, by notice in the Gazette, prohibit all or any fishing or fishing methods in an area for the purpose of ensuring

that any limit on fishing-related mortality is not exceeded (s 15(5)).

[11]     Before taking measures under s 15(2) the Minister is required, by s 12(1)(a), to:

[c]onsult  with  such  persons  or  organisations  as  the  Minister  considers  are representative of those classes of persons having an interest in the stock or the  effects  of  fishing  on  the  aquatic  environment  in  the  area  concerned, including Maori, environmental, commercial, and recreational interests;  ...

[12]     Further,  after  setting  or  varying  any  sustainability  measure  (defined  as including  measures  taken  under  s  15(2))  the  Minister  is  required,  as  soon  as practicable, to give to the parties consulted reasons in writing for his or her decision (s 12(2)).

[13]     The Act has a purpose provision as follows (s 8):

(1)      The purpose of this Act is to provide for the utilisation of fisheries resources while ensuring sustainability.

(2)      In this Act–

Ensuring sustainability means–

(a)      Maintaining the potential of fisheries resources to meet the reasonably foreseeable needs of future generations; and

(b)      Avoiding,  remedying,  or  mitigating  any  adverse  effects  of fishing on the aquatic environment:

Utilisation  means  conserving,  using,  enhancing,  and  developing fisheries  resources  to  enable  people  to  provide  for  their  social, economic, and cultural well-being.

[14]     It also has environmental principles as follows (s 9):

Environmental principles

All persons exercising or performing functions, duties, or powers under this Act,   in   relation   to   the   utilisation   of   fisheries   resources   or   ensuring sustainability, shall take into account the following environmental principles:

(a)       Associated or dependent species should be maintained above a level that ensures their long-term viability:

(b)      Biological diversity of the aquatic environment should be maintained:

(c)       Habitat  of  particular  significance  for  fisheries  management  should be protected.

[15]     And information principles as follows (s 10):

Information principles

All persons exercising or performing functions, duties, or powers under this Act,   in   relation   to   the   utilisation   of   fisheries   resources   or   ensuring sustainability, shall take into account the following information principles:

(a)       Decisions should be based on the best available information:

(b)      Decision makers should consider any uncertainty in the information available in any case:

(c)       Decision makers should be cautious when information is uncertain, unreliable, or inadequate:

(d)      The absence of, or any uncertainty in, any information should not be used  as  a  reason  for  postponing  or  failing  to  take  any  measure  to achieve the purpose of this Act.

[16]     The Act defines “best available information” in s 10(a) as meaning “the best information that, in the particular  circumstances,  is available without unreasonable cost, effort, or time” (s 2(1)).

[17]     As  well  as  information  obtained  pursuant  to  s 15(2),  information  about fisheries,  research,  management  and  enforcement  can  be  obtained  by an  “observer programme” under which observers appointed by the second respondent go onboard vessels to observe and collect information (s 223).   There is also provision for the costs of conservation and fisheries services to be recovened by levies (ss 262 to 264).

Case law

[18]     In  this  case  there  was  no  dispute  between  the  parties  as  to  the  purpose provision in s 8.  It involves a balance between two competing policies (Sanford Ltdv New Zealand Recreational Fishing Council  [2008] NZCA 160, [2008] BCL 739 (CA) at [47]; New Zealand Recreational Fishing Council Inc v Sanford Ltd [2008] NZSC 40, [2009] 3 NZLR 438 at [39]).

[19]     Nor  was  there  any  dispute  as  to  what  the  s 15(2)  test,  for  measures  to  be imposed,  entails. There  is  Court  of  Appeal  authority  on  point  (Squid  Fishery Management Ltd v Ministry of Fisheries & Anor  CA (Squid (No. 2) 39/04 13 July 2004 at [77] and [79]). Although s 15(2) involves a value judgement for the Minister, the Minister can only take measures he or she considers are necessary to avoid, remedy or mitigate adverse effects of fishing on protected species. Implicit in this is that the Minister must form a view as to the extent to which utilisation of a fishery threatens the sustainability of the protected species. But this does not mean that the Minister must adopt “a cusp rule”. Optimum utilisation of a fishery does not equate to maximum usage. There may be uncertainty as to the risks. A precautionary approach to the required balancing exercise is open to the Minister.

[20]     The  parties  did,  however,  have  competing  submissions  as  to  the  obligation imposed on the Minister under s 10(a).  This was in the context of two kinds of error that  the  applicants  contended  the  Minister  had  made.   The  first  kind  of  error  was where the Minister was said to have been given misleading or inaccurate advice from

the Ministry on which he based his decision.  The second kind of error was where it was  said  that  the  Ministry or  Minister  knew  there  was  other information  available but the Minister proceeded on the information that  was before  him  rather than obtaining the  further information. In both cases the applicants‟ submission is that s 10(a)  requires  the  Minister  to  have  the  best  available  information,  which  means both that the information the Minister has must be accurate and also that the Minister has a positive obligation to obtain information that is available.

[21]     The  appellants‟  argument  that  the  first  kind  of  error  (having  misleading  or inaccurate  information)  is  a  breach  of  the  s 10(a)  obligation  has  some  support  in High  Court  authority.  In  Squid  Fishery  Management  Company  v  Minister  of Fisheries  &  Anor  CP  20/03  HC  Wellington  11  April  2003  (Squid  (No.  1))  the High Court considered that the Minister had been given “inadequate and misleading advice” and without the accurate information “the Minister was not in a position to make an informed decision based on the statutory guides in s 10” (Squid (No. 1) at

[25]).  The High Court goes on to say that because the Minister did not have accurate information “he was unable to properly assess the statutory balance to be struck in breach of s 8 and s 15.  These are errors of law” (Squid (No. 1) at [35]).

[22]     I  read  this  as  saying  that  the  obligation  to  take  into  account  that  decisions should  be  based  on  best  available  information  requires  the  Minister  to  first  be informed accurately as to what is best available information.  If the information he is given  is  misleading  or  inaccurate  then  he  cannot,  and  therefore  does  not,  comply with s 10(a).  That in turn can lead to a breach of s 15 because the Minister does not have the information to be able to determine if a measure is necessary.

[23]         The conclusion that misleading information can lead to an error under s 15 is consistent with the approach the Court of Appeal took in  Squid (No. 2).   That too was  a  case  where  the  Minister  was  misled  by the  information  provided  to  him  by officials.   This  meant  that  the  Minister  had  not  formed  a  view  as  to  the extent to which  utilisation  of  the  squid  fishery  threatened  the  sustainability  of  the  sea  lion population.  The Court of Appeal considered this assessment had to be made before the  Minister  could  form  a  view  as  to  whether  measures  to  be  put  in  place  were “necessary” in terms of s 15(2).

[24]     In the alternative, the Court of Appeal considered that if the Minister had in fact  made  this  assessment  then  he  had  done  so  not  acting  on  the  best  available information.   That  was  because  he  had  in  substance  based  his  decision  on  one scientific  model,  when  intending to  base  it  on  another scientific  model,  which  the parties agreed was the best available information.  (Squid (No. 2) at [93] and [103].)

[25]     The Court of Appeal does not say, as I  read  it,  that  basing  a  decision  on misleading information gives rise to a breach of the s 10(a) obligation.   Nor does it discuss the relationship between the s 10(a) obligation and the judicial review ground of mistake of fact.  It does say that “there would appear to have been a fundamental flaw  in  [the  Minister‟s]  approach  to  the  issue  he  was  required  to determine”  and “[t]his could be ... an independent  ground for judicial review”.   The Court  viewed this  as  being  “intimately  tied  up  with  the  conclusions”  it  had  reached. It  was therefore  unnecessary  “to  explore  the  not  entirely  easy  jurisprudence  as  to  the circumstances  in  which  a  fundamental  mistake  of  facts  warrants  judicial  review”. (Squid (No. 2) at [104].)

[26]     The respondents‟ submissions did not directly address whether a s 10(a) breach would occur in this first  kind  of  way. On  this  topic  their  submissions focussed  on  why  the  information  before  the  Minister  was  accurate.   However  the respondents did accept that “[i]f there is an error in the advice that gives the Minister an   incorrect   understanding   of   the   factual   position   the   Minister‟s   decision   is vulnerable  to  being  set  aside”. The  submissions  did  not  articulate  the  ground  of review on which the Minister‟s decision might be set aside, although I agree that the submission is a correct statement of principle.

[27]     The ground for setting aside such a decision might be on the basis discussed above in relation to Squid (No. 1). It might be on the basis of a material mistake of fact (as flagged, but not decided, by the Court of Appeal in Squid (No. 2) above; and

as  per  the  discussion  of  “misdirection  or  mistake  of  material  fact”  as  a  ground  of review  in  Lord  Woolf  (ed) et al De  Smith’s Judicial  Review (6th   ed, Sweet & Maxwell, London, 2007) at 11-048 to 11-050). Or it might be a more traditional judicial review ground. For example, in Air Nelson Ltd v Minister  of  Transport [2008] NZAR 139 the Court of Appeal was concerned with judicial review of a

Minister‟s  decision  where  the  Minister  had  not  been  informed  of  material  facts relevant  to  his  decision. It  considered  that  a  decision  was  “flawed”  if  matters obviously  material  to  his  decision  were  omitted  from  his  direct  consideration.  It considered the particular ground of review was of secondary importance but said that it  was  probably  best  characterised  as  a  failure  to  take  into  account   relevant considerations. (Air  Nelson  at [35], [54] and [55].) (Air  Nelson  also  discusses Bushell v Secretary of State for the Environment [1981] AC 75 (HL); CREEDNZ Incv  Governor-General  [1981] 1 NZLR 172 (CA) and Daganayasi v Minister  of Immigration  [1980] 2 NZLR 130 (CA) on inaccurate advice from officials as a ground of review.)

[28]     Because the respondents accept that the Minister‟s decision may be set aside

where he has been given an incorrect understanding of the facts, it does not matter

for present purposes whether that is because s 10(a) or s 15 has not been complied with,  or  whether  that  is  on  other  judicial  review  grounds  (and  which  particular ground) although the latter has not been pleaded.

[29]     As to the second kind of alleged s 10(a) breach, the applicants contend that the  Minister  has  a  mandatory  obligation  (through  the  Ministry)  to  obtain  the  best available information.  The respondents submit that the Minister need only take into account  that  decisions  should  be  based  on  the  best  available  information. They submit  that  there  is  no  obligation  on  the  Minister  to  obtain  the  best  available information  if  he  does  not  have  it.   They submit  that  s  10(a)  is  met  providing the Minister is aware of the gaps in the information before him and the options available for filling that gap.

[30]     A  literal  reading  of  s  10(a)  supports  the  respondents‟  position.   It  requires only that the Minister “shall take into account” that decisions “should” be based on the best available information.

[31]     The  other  sub  paragraphs  of  s  10  are  similarly  worded.      They  require  the Minister   to   “take   into   account”   that   decision   makers   “should”   consider   any uncertainty  in  the  information  (10(b)),  “should”  be  cautious  when  information  is uncertain,   unreliable,   or   inadequate   (10(c)),   and   that   the   absence   of,   or   any

uncertainty in, any information “should” not be used as a reason for postponing or

failing to take any measure to achieve the purpose of the Act (10(d)).

[32]     The  environmental  principles  in  s  9  similarly have  the  “take  into  account” and “should” wording.  In relation to that section the Select Committee discussed the history of that wording. Initially the wording was “have   regard   to”   but environmental and recreational submitters considered this was not strong enough.  In response to this concern the wording was changed to “recognise and provide for” but on reflection the Select Committee considered this to place too strong an obligation on  the  decision  maker. It  said  “[t]he  words  „take  into  account‟  provide  more appropriate  discretion  to  the  decision  maker,  while  clearly  setting  out   his  or responsibility”.

[33]     In discussing s 10, the Select Committee‟s focus is on a concern that it might

be thought that, because decisions  are  to  be  based  on  best  available  information, decision makers could not act when information was inconclusive.  It recommended

a rewording to make it clear that the intent was that decisions should be based on best  available  information  but  that  inconclusive  information  should  not  prevent measures being implemented to achieve the Act‟s purpose.

[34]     I agree with the respondents that this history supports their submission that the Minister retains discretion as to the information he or she may take into account.

[35]         The applicants rely on a number of cases in support of their submission that, despite the words of s 10(a), the Minister “must” make his decision on the basis of the  best  available  information. One of  those cases  is  Northern  Inshore  Fisheries Management Co Ltd v Minister of  Fisheries  &  Anor  HC  Wellington  CP  235/01,

4 March 2002.  As it happens this case concerns a challenge to measures put in place

in 2001 to protect Hector‟s and Maui‟s dolphins.   The Minister‟s decision was set aside  on  two  grounds.  A  mistake  of  fact  made  by  the  Minister  resulted  in  the decision being set aside on the review ground of mistake of fact.   The decision was also set aside for failure to comply with s 10(a) because the advice to the Minister contained out-dated information and did not provide advice and  analysis on issues important to his decision.  The High Court (at [74]) viewed s 10(a) as “reinforc[ing]

any  common  law  obligation  to  discover  all  the  relevant  facts”  and  (at  [75])  as  “a clear  statement  about  the  quality  of  the  information  to  be  available  to  decision- makers”.   It said (at [82]) that “the Minister was entitled to know and should have had all the reasonably available facts and figures on which to base this decision”.

[36]     The applicants also refer to Squid (No. 1). As well as the Ministry giving the Minister inaccurate advice, the High Court considered (at [40]) that the Ministry had not given effective consideration to further available information, had “shut its eyes

to what was happening” and “[i]ts fixed position remained”.   The Minister was not

informed of the developments and this was viewed as a breach of s 10.

[37]     The applicants also rely on Antons Trawling Company & Ors v Minister of

Fisheries & Anor HC Wellington CIV 2007-485-2199, 22 February 2008 at [57] to

[61]. In that case the Ministry had not told the Minister that a topographical survey could be undertaken to obtain further information, apparently because the Ministry had taken the view that this would not produce conclusive information. The High Court considered (at [60]) that the future availability of information “was a relevant consideration” and an error of law had occurred because the decision “should begin by identifying the best available information” (at [61]).

[38]     In my view these cases do not support  the  contention  that  a  Minister‟s decision is in error if the Minister is aware of the availability of other information but does not  obtain  it  before  making  his  or  her  decision. They  do  support  the position  that  the  Minister  must  be  accurately  informed  of  what  information  is available before he or she makes the decision.  That makes sense, because in order to take into  account  that  decisions  should  be  based  on  best  available  information  the Minister would need to know what that information is.

[39]     I  consider  that  the  “take  into  account”  and  “should”  wording  in  s  10  was intended to achieve a balance.   As with s 9, the decision maker retains a discretion but is directed as to his or her responsibility.  In the usual course decisions are to be based on best available information (because they should be).  Before making his or her decision the Minister is required to consider this (because he or she is required to take this into account).  To consider this the Minister must know what information is

available and at what cost and in what timeframe.  If he or she decides not to base his decision on the best available information there would have to be a reason for not doing   so. Such   a   decision   might,   of   course,   be   open   to   review   as   being “unreasonable”.

[40]     This  does  not  mean  that  the  Minister  can  only  act  when  the  best  possible information  is  available  (eg   as  might  be  obtained  from  tagging  dolphins  or  from commissioning further aerial surveys).   Best available information means only that which, in the particular circumstances, is available without unreasonable cost, effort and  time.  There  may  be  different  but  reasonable  views  about  what  meets  that standard in any particular circumstance and the Minister is permitted this latitude by the statutory wording.

[41]     Nor does taking into account that decisions should be based on best available information mean that the Minister can only act when the information is certain and reliable.  This  follows  not  only  from  the  definition  of  best  available  information (obtaining certain information may require too much cost, time and effort) but also from subsections 10(b), (c) and (d).  To achieve the purposes of the Act the Minister may need to act on uncertain information.

General factual background

The dolphins

[42]         Hector‟s dolphins are endemic to the coastal waters of New Zealand.   They are an inshore coastal species and, in summer months at least, are most often seen in murky waters  close to shore.   They generally live in small  groups of  three to  five individuals but can be found in larger pods.  They travel relatively small distances up and down the coast: an individual dolphin has a “core range” of about 17 km but will

reasonably regularly travel within a range of about 50 km along the coast.

[43]     Since 2003 Hector‟s dolphins have  been  classified  by  the  Department  of

Conservation (DoC) into two subspecies – the Maui‟s dolphin (C. hectori maui) and

the  Hector‟s  dolphin  (C.  hectori  hectori)  –  although  research  supporting  this  pre- dates 2003.

[44]     Maui‟s dolphin is classified  as  “critically  endangered”  by  the  International

Union for the Conservation of Nature (IUCN) and as “nationally critical” by DoC.  It

is found in the inshore waters of the west coast of the North Island (WCNI) between North  Taranaki  and  Northland.  The  most  recent  abundance  estimate  puts  their population at around 111, with a core abundance area in the inshore waters between Manukau Harbour and Port Waikato.

[45]     The Hector‟s dolphin sub-species is classified as “endangered” by the IUCN

and “nationally endangered” by DoC.   It is found principally in the inshore waters

off the South Island and has a most recent abundance estimate of between 7,268 (say the respondents) and 7,720 (say the applicants).  There are three sub-populations: the West  Coast  of  the  South  Island  (WCSI)  population,  the  South  Coast  of  the  South Island (SCSI) population, and the East Coast of the South Island (ECSI) population. Within each of these three areas, there are areas where Hector‟s dolphins are found in  higher  densities. For example,  the  SCSI  population  of  Hector‟s  dolphin  is strongly concentrated in Te Waewae Bay.

Fishing-related mortalities

[46]     Historically fishing has occurred in the areas where the dolphins are present. DoC  maintains  an  incident  database  which  records  reported  mortalities  of  the dolphins and attributes the cause of the mortality where it can be identified.   This includes known, probable and possible fishing-related mortalities.

Overview of the process leading to the Minister’s decision

[47]     Prior to the decisions which are the subject of this proceeding, a number of measures – both regulatory and voluntary – existed for the purposes of mitigating the risk of fishing-related mortalities of Hector‟s and Maui‟s dolphins.

[48]     A public campaign in late 2004 by a coalition of environmental groups issued

a public “challenge” to the Government to produce a “recovery plan” for Hector‟s and Maui‟s dolphins and impose further prohibitions on fishing to address the risk of interaction with them.  In response to that campaign, in December 2005 an advisory group  and  a  working  group  were  established  to  advise  on  the  development  of  a Threat Management Plan (TMP).  An expert panel was also set up to identify threats.

[49]     On or around 19  October 2006 the Ministry consulted on  proposed interim measures  to  manage  the  impacts  of  fishing  on  Hector‟s  dolphins  pending  the completion of a TMP.  The Minister received final advice from the Ministry on those interim measures on or around 7 December 2006.

[50]     On  21  December  2006  the  Minister  made  decisions  on  interim  measures relating to commercial set netting.

[51]         In   April   2007   the   Ministry   and   DoC   released   a   Threat   Management Discussion  Document  for  consultation.     Following  consultation  a  draft  TMP  was released on 29 August 2007.  Amongst other things the draft included a summary of the threats to Hector‟s dolphins and options for measures by the Minister to mitigate the  effect  of  fishing  related  mortality.               Consultation  on  the  draft  TMP  occurred between 29 August and 24 October 2007.

[52]     The  Ministry  commissioned  an  independent  researcher  to  research  socio- economic aspects of  what was proposed  and  accordingly a socio-economic impact assessment  was  released  in  December  2007.  A  further  consultation  period  and review occurred.

[53]     On  or  around  20  March  2008  further  information  was  released,  namely  a Hector‟s  and  Maui‟s  dolphin  risk  analysis  (from  NIWA)  and  comments  on  that analysis,  as  well  as  DoC  sightings  and  survey  information  (together,  the  new information).  There was consultation on the new information until 20 April 2008.

[54]     The Ministry provided the Minister with its final advice on the draft TMP on

2 May 2008.   Supplementary advice was provided to the Minister on various dates throughout May 2008.

[55]     On  28  May  2008  the  Minister  made  his  decision  on  fisheries  measures  in relation to Maui‟s and Hector‟s dolphins.   This was announced by press release on 29 May 2008.  On 2 July 2008 the Minister provided written reasons for his decision. On or around 25 August 2008 Fisheries Amendment Regulations were promulgated to give effect to the Minister‟s decision.

The overall approach of the Minister

[56]     The Minister‟s overall approach to  his  decision  is  explained  in  the  written reasons given on 2 July 2008.   In this the Minister referred to the legislative test in

s 15.  He referred to considering the need for additional measures “by reviewing best available  information”  and  he  considered  his  approach  was  “consistent  with  [his] legal obligation under s 9 of the Act to maintain biological diversity”.   He said that he “sought to find an appropriate balance between utilisation (of fisheries resources) objectives and conservation values”.   He said that “[t]he point  of the exercise was not to arrive at the number of dolphins that could be harvested sustainably” which he viewed as inappropriate for a protected species (compared with a decision involving harvested stock).  He considered a precautionary approach was appropriate.

[57]     In discussing fishing related mortality of the dolphins the Minister noted that there  was  good  evidence  that  this  was  a  risk  where  dolphins  and  certain  fishing methods  overlapped. He  said  that  in  cases  where  the  cause  of  death  is  known, fishing  related  mortality  has  been  significant. He  considered  that  known  fishing related  mortalities  under-estimated  fishing  related  mortalities.     This  was  because clinical protocols required conclusive signs before fishing could be recorded as the cause  of  death,  historically  fishers  had  not  reported  all  mortalities,  and  there  had been limited monitoring of commercial fishing where dolphins were present and no monitoring of the by-catch of recreational fishing.

[58]     The Minister noted that fishers argued that there was insufficient information

to indicate fishing was having a significant impact on the dolphins and more research was  necessary before  action  was  taken.   The Minister  said  that  he  recognised  that there was uncertainty and that, as with all other areas of fishing management, further information  could  always  be sought  to  improve  the  basis  of  decision  making.   He noted the time and cost involved in gathering further information.  He considered he had sufficient information to make his decision.

[59]     The Minister then proceeded to set out his rationale in respect of each of the areas where prohibitions were put in place.  These are separately discussed below.

Further information

[60]     The 2 July 2008 reasons advised of a budget increase for an increased observer coverage on commercial fishing which would include, but not be limited to, monitoring Hector‟s and Maui‟s dolphin interaction with fishing. The costs were to

be recovered from the fishing industry through increased levies.  This was said to be

a signal that the new rules were not the end of the threat management process.

[61]     A  summer  observer  programme  on  inshore  vessels  was  implemented.   The programme achieved 963 observed sea days and covered areas in each of the WCNI, WCSI, ECSI, SCSI.  Hector‟s and Maui‟s dolphins were observed but there were no observed mortalities.

The WCNI decision

Background details

The population

[62]     As stated above, there are about 111 Maui‟s dolphin, with a core abundance

in the inshore waters between Manukau Harbour and Port Waikato.  With this small

sized population, it is considered that its “natural rebuild” would be affected by an

average of 0.2 human-induced deaths per year.

The fishers

[63]     There  are  approximately  119  commercial  set  net  fishers  fishing  on  the WCNI.  About 20 of them operate in the Manukau Harbour.  They operate about 136 vessels.  They primarily target rig, school shark, grey mullet and flatfish.

[64]     There  are  approximately  23  commercial  trawl  fishers  on  the  WCNI.   They operate  about 34 vehicles, which are under 46 m  in length.   They target primarily trevally, snapper, gurnard and tarakihi.

Fishing-related mortalities

[65]     Between  1921  and  2008  the  reported  fishing-related  mortalities  of  Maui‟s dolphin on the WCNI recorded on the DoC incident database consist of two known, one probable and two possible mortalities.   The Ministry believe one of the known mortalities to have been caught in a recreational set net and the other to have been caught in a drift net.

Measures in place pre-Minister’s decision

[66]     In  2003  regulatory  prohibitions  were  put  in  place  which  prohibited  all commercial and amateur set netting within 4 nm of the coast (excluding harbours) from  Maunganui  Bluff  to  Pariokawa  (this  was  the  subject  of  proceedings  in  the Northern  Inshore  Fisheries  decision  discussed  above);  and  from  the  Manukau Harbour  entrance  to  Kauri  Point.  Trawl  prohibitions  affecting  a  number  of  local areas in the WCNI were also put in place.

[67]     Since  these  prohibitions  have  been  in  place  no  reported  fishing-related mortalities of Maui‟s dolphins in the WCNI have been recorded on the DoC incident database.

The decision

[68]     The Minister‟s decision on 28 May 2008 in relation to the WCNI (the WCNI

decision):

a)        extended the commercial set  net  fishing  prohibition  from  4 nm  to

7 nm offshore from Maunganui Bluff to Pariokariwa;

b)prohibited   commercial   set   net   fishing   in   the   Kaipara   Harbour entrance,  in  the  lower  part  of  Port  Waikato,  in  the  Raglan  Harbour entrance and further into the Manukau Harbour; and

c)        extended  trawling  prohibitions  from  1nm  to  2 nm  offshore  from Maunganui  Bluff  to  Pariokariwa,  and  to  4 nm  between  Manukau Harbour and Port Waikato.

The aspects of the decision that are challenged

[69]     The applicants‟ challenge relates to  a).   It  also  relates  to  b)  in  so  far  as  it extended the set net ban further into the Manukau Harbour.  It also relates to all of b)

in so far as its effect is to ban ring netting in those harbours.

The interim relief

[70]     Interim relief has been in place in respect of part of the set net ban extension

to 7 nm (that area outside Manukau Harbour to Port Waikato), the extension of the

set  net  ban  further  into  the  Manukau  Harbour  and  the  ban  on  ring  netting  in  that same part of the Manukau Harbour.

Extension of the offshore set net prohibition from 4 nm to 7 nm

The grounds of challenge

[71]     There are three grounds  of challenge relating to this aspect of the decision. They all arise out of information about a DoC aerial sighting of a Maui‟s dolphin at

7 nm, on which the applicants say the Minister‟s decision to extend the prohibition to

7 nm was primarily based.  The applicants say that this sighting was unreliable and that, by relying on this sighting, the Minister/Ministry failed to base the decision on the best available information (s 10(a)), imposed a measure which was not necessary

to  avoid,  remedy  or  mitigate  the  effect  of  fishing  related  mortality  on  the  Maui‟s dolphin population (s 15(2)) and breached consultation obligations (s12(1)(a)).

The circumstances leading to the 7 nm extension

[72]     The relevant background in respect of the 7 nm extension is as follows.   In

2003 the view on the basis of the information at that time was that Maui‟s dolphin‟s

offshore range was 3-4 nm.  In the 2005 and 2006 period the information and advice

to  the  Minister  on  the  basis  of  that  information  was  that  the  4  nm  boundary  was sufficient. Consistent with this, draft proposals for the TMP as at mid June 2007 did not include an option to extend the 4 nm boundary.

[73]     Around  this  time  Ms  Scalia  was  carrying  out  research  towards  a  PhD  at Otago  University.              One  of  the  aims  of  the  research,  as  stated  in  a  draft  progress report  prepared  in  December  2006,  was  “[t]o  quantify  current  distribution  and investigate sightings [of Maui‟s dolphin] towards the extremes of the range through aerial  surveys”.   As  part  of  this  research,  Ms Scalia  reported  in  her  draft  progress report on a DoC aerial survey, in respect of which she acted as team leader, carried out in August-September 2006.

[74]     This  survey involved  a  plane flying over  the  area  with  four  observers,  two seated  in  the  front  and  two  in  the  back,  and  followed  a  survey  protocol  used previously.   Because of where the observers were seated and the type of  windows

they could  observe  from,  there  was  a  zone  of  between  60  degrees  and  40  degrees where dolphins could be seen by both teams (relevant when taking into account the potential for duplicate sightings).

[75]     Ms Scali‟s draft progress report said in respect of the results of this survey:

Unfortunately  the  relatively  high  number  of  Maui‟s  dolphin  sightings,  the fact that they were concentrated in one flight when the sea conditions were not perfect, and the fact that many of them happened further offshore than expected  made  us  reconsider  the  results.     A  high  inconsistency  between observers has been noted, with two of them performing relatively well, one making  a  very  small  number  of  sightings  and  another  one  making  a  very high  number  of  sighting  [sic]  and  having  trouble  identifying  the  species. The  fact  that  we  found  no  duplicates  [ie  sightings  also  made  by  another observer in the plane] made us even more concerned about the validity of the results.  Further analysis is therefore required.  The lack of consistency of the observers is most likely due mainly to the lack of an adequate [sic] training.

In the future both the observers and the pilot will go through a certain umber

[sic]  of  training  flights  before  they  will  be  involved  in  the  real  survey. Moreover,  for  every unidentified  sighting,  the  pilot will  be  asked  to  circle over it in order to be able to get a species id.  Another offshore aerial survey is planned for winter 2007.

[76]     The progress report attached three maps: one showing sightings of dolphins

by “the two observers who are considered reliable” and stating “[i]t‟s worth noticing that most of the Maui‟s dolphin sightings are closer to shore”; one showing sightings

of dolphins by “the observers considered unreliable” and stating “[m]ost of these Maui‟s dolphin sightings are too offshore to be reliable”; and a third map collecting all the sightings of Maui‟s dolphins made by the observers. In the first of these maps there was shown a sighting at 7 nm of Maui‟s dolphin (three of them) and  further sightings of unknown dolphins also beyond 4 nm. The maps of the sightings by the observers considered unreliable showed a number of sightings at around 10 nm.

[77]     It  seems  that  this  progress  report  was  not  provided  to  the  Ministry  at  this time.   However, in late June 2007 Ministry officials met with DoC who suggested that the proposals for consultation include extending the prohibition to further off- shore  based  on  recent  aerial  survey  results  (apparently  the  Aug-Sept  2006  results referred to above).   Internal Ministry emails include a suggestion that the option be included but “dismiss[ed]  due to lack of concrete information (ie no report, etc.)”. The response to a suggestion that it be put to the Minister for consideration was:

My  understanding  is  that  they  had  one  sighting  further  offshore  than  the closed area – something like 9km [4.86nm] offshore.  I didn‟t really want to mention  it  because  1  sighting  as  a  basis  for  extending  the  entire  set  net closed area so far out sure [sic] stretches the credibility of options we might propose.   I see no reason why it shouldn‟t be referred to somewhere, but I don‟t  think  we  should  develop  another  option  on  the  basis  of  such  flimsy information.

[78]     This continued to be discussed in email communications.   Mr Halley, from the Ministry, expressed the view that an option should be included based on the risk

of   the   dolphins   being   present   beyond   the   existing   4 nm   set   net   closure. Mr Fanselow,   also   from   the   Ministry,   replied   that   the   issue   was   “tricky”. Mr Fanselow said that he had spoken to DoC and they “weren‟t too happy with the expertise of the people” doing the survey and “didn‟t trust the results”.  Mr Fanselow said he had his doubts about the DoC person who arranged them.   He said it was complicated to call DoC work into question and he proposed that the option not be mentioned and to await to see if it was raised as an issue.  He noted that an extension would have some “fairly serious implications” for both trawling and set netting.

[79]     Following this discussion, the draft  TMP  for  public  consultation  dated

29 August 2007 included an option to extend the closure out to 12 nm.  It noted that recent DoC aerial surveys in 2006 “indicate that Maui‟s dolphins may move further offshore than the existing 4 nm set net prohibition” but also said “the findings of this work  are  not  yet  verified”  and  that  the  Ministry  was  “therefore  uncertain  of  the validity of the sightings”.   It also said that the extent to which this option provided additional  protection  over  other  options  could  not  be  quantified  because  of  “the limited and uncertain nature of new information”.  The closing date for submissions was 24 October 2007.

[80]     On 18 September 2007 the New Zealand Seafood Industry Council (SeaFIC) (representing the fishing industry) requested further information about this (and other aspects  of  the  draft  TMP). Specifically, it asked for the sighting data  for  Maui‟s dolphin (including when, where and by whom the dolphins were sighted), the design

of the 2006 aerial survey and papers or emails discussing the design and/or results of the 2006 aerial survey.  It asked for the information urgently so that it would have it

for the purposes of responding to the draft TMP by the 24 October 2007 deadline.  It

also said that if the Ministry did not have the data, could they advise who in DoC the information was obtained from because SeaFIC was following this up with DoC.

[81]         The request was considered because an internal Ministry email from Mr Fanselow noted that the data had come from a 2002 report, a 2005 report and a progress  report  from  Ms  Scali  (this  has  a  different  title  to  and  appears  to  be  the progress report on POD research referred to below at [137]). A response on some of the information that had been requested was provided on 8 October 2007 but this did not  include  the  information  requested  concerning  the  2006  sightings  and  data. (SeaFIC made other requests for various information relating to the draft TMP.)

[82]     By the time submissions closed SeaFIC had not received the information it had requested in relation to the  2006  aerial  survey  and  data. It provided  its submission without the information, noting that it had not received the information, that the 2005 information was that the offshore boundary of 4 nm was sufficient, that there was not verified information that the dolphins extended beyond the 3.3 nm and that “[s]uch unreviewed  and unpublished work should not be used as the basis for extending” the closure.

[83]     On  2  November  2007,  that  is  after  the  period  for  submissions  had  ended, DoC  provided  a  response  to  the  18  September  2007  request  from  SeaFIC  that included Ms Scali‟s December 2006 progress report.

[84]         An off-shore aerial survey was conducted in the latter part of 2007.  This had most  sightings  within  3  nm  and  the  furtherest  sighting  at  4.05  nm.   Mr  Fanselow from the Ministry attended a meeting with DoC in December 2007 at which this was discussed.  In internal Ministry email correspondence he reported on the 2007 results and said that the only basis for the extension out to 12 nm was the 2006 survey.  He said that DoC are “reluctant to verify these sightings for some reason which leaves this Option without foundation”. Mr Fanselow referred to what would happen if the Minister closed the area and this was challenged. He said it would surely then be for the  Ministry “to  show  that  any such  fisheries  management  measures  are  based  on accurate information” and that the Ministry could not just say that it was relying on

DoC to get it right.   He also said that, because  DoC was less sure about sightings beyond 4 nm, “there is no obvious basis” for extending the closure.

[85]     In subsequent communications he repeated DoC‟s uncertainty about the 2006 sightings.  A response from Mr Glassey, from the Ministry, in February 2008 noted the uncertainty and commented:

It  will  ultimately  be  the  Minister  who  determines  how  much  weight  he places on the „other‟ information given the uncertainty associated with it, in light  of  (i)  the  status  of  the  population  and  (ii)  the  impacts  on  fishers  of measures outside the population.  A tough balancing act I would suggest.  In any event, I still don‟t think the new information radically alters our analysis and the range of options we‟re putting to the Minister.

[86]     In January 2008 a report  on  the  “Distribution  of  Maui‟s  Dolphin  Sightings

2002-2007”  was  produced  for  DoC  by  Ms Russell  (referred  to  as  the  MDPSD report).   This report mainly focussed on public sightings that met specified criteria directed to their likely reliability.   The report concluded that the majority of Maui‟s dolphin sightings occur within 4 nm of the coast, but that they “occasionally range beyond  what  is  considered  their  normal  coastal  distribution  for  short  periods  of time”.

[87]     In  about  March  2008  DoC  released,  on  its  website,  information  about  its work on Maui‟s dolphin.  In respect of the 2007 aerial survey the website stated that most sightings were made within 3 nm and one sighting was recorded at 4.05 nm.  In respect of the 2006 offshore aerial sighting the website said:

The  2006  surveys  show  a  less  clear  pattern  in  terms  of  reliable offshore sightings.

Sightings  were  widely  distributed  between  Muriwai  and  Carter‟s

Beach, with possible sightings up to 10 nautical miles (nm) offshore.

The  most  reliable  sighting  offshore  during  the  survey  was  7  miles offshore from Muriwai Beach.

[88]     This information was the subject of further consultation. Internally, Mr Fanselow queried why the 2006 information was included when DoC had previously been reluctant to use it. Mr Glassey‟s response was that the information should be consulted upon. His view was  that,  as  DoC  had  determined  the

information was relevant, it could not be ignored because it had not been through the Ministry‟s  working  group.  His  view  was  that  the  Minister‟s  weighting  of  this information would be driven by the Ministry‟s final assessment and the comments of submitters.

[89]     Solicitors for SeaFIC wrote to the Ministry with various questions about the information  on  the  website.  SeaFIC  also  corresponded  with  DoC  with  further requests  for  information  about  the  sightings. In  a  letter  dated  7  April  2008  the Ministry  commented  to  SeaFIC‟s  solicitors  that  the  key  issue  for  SeaFIC  was  the weight that should be given by the Minister to the  information on the website and there was sufficient material on the website for SeaFIC to consider this.

[90]     On 20 April 2008 SeaFIC provided its response to the information.   In this SeaFIC noted that the 2006 survey results had been included without qualification yet  the  researchers  themselves  were  sceptical  of  them.  It  quoted  Ms Scali‟s comment that the absence of any duplicate sightings made her “even more concerned about the validity” of the results.

[91]     At around this time DoC instructed a Dr du Fresne (a scientist) to review the

information about distribution of Maui‟s dolphin.  Some form of draft was provided

to DoC because there is internal DoC correspondence which appears to be discussing

it.   In this, a DoC officer, who organised the 2006 survey, disagreed with the view that the offshore sightings were unreliable.  Essentially this was on the basis that the observers  had  sufficient  expertise  and  had  been  briefed  and  trained  in  sighting methods.

[92]     On 2 May 2008 the Ministry provided its final advice paper to the Minister. The advice referred to the view of industry submitters that there was no substantiated evidence  that  Maui‟s  dolphins  venture  further  offshore  than  the  existing  set  net prohibition and that information suggesting they may do was not peer-reviewed or published.   It  referred  to  the  view  of  some  environmental  submitters  that they did venture further offshore.

[93]     The Ministry expressed its view as being that Maui‟s dolphin is “normally” within  the  existing  set  net  prohibition  but  that  the  information  “provides  evidence that dolphins occasionally travel outside the prohibition”.  It said that it believed the “evidence  of  dolphins  outside  the  prohibition  area  is  critical  to  your  decision”  on whether additional protection was necessary.   It said that the Minister “should pay particular  attention  to  the  nature  of  the  evidence  of  Maui‟s  dolphins  outside  the prohibition  area  because  the  information   [was]   subject  to  varying  degrees  of certainty”.          It  said  that  anecdotal  information  (which  it  said  included  the  DoC sighting catalogue) should be given less weight than scientific information (which it said included research survey sightings).

[94]     The advice went on to say:

45       There  is  new  specific  evidence  to  indicate  Maui‟s  dolphins  may

occasionally travel further offshore than the 4nm set net prohibition.

46       Offshore aerial surveys on the WCNI by DOC in 2006 and Rayment

& Du Fresne in 2007 detected Maui‟s dolphins at 7 nm offshore and 4.05nm offshore respectively.   DOC‟s 2006 aerial survey also includes a „possible‟ sighting  at  10 nm  offshore  but  DOC  advise  that  there  is  no  assurance  this particular sighting is reliable.  Peer-review for both these surveys is pending so MFish cannot determine the accuracy of the results.

47       The  2008  MDPSD  report  includes  two  public  sightings  offshore from 4nm.  The farthest is 7.7nm from the Manukau Harbour entrance.  The DOC  catalogue  includes  at  least  three  sightings  offshore  from  4nm,  at 4.5nm,  8.5nm,  and  43nm. MFish  doubts  the  43nm  sighting  is  reliable because it is inconsistent with the offshore and depth range of Hector‟s and Maui‟s dolphins generally.

48       The number of survey and anecdotal sightings offshore from 4nm is

a  very  small  proportion  of  all  survey  and  anecdotal  sightings.   Nearly  all sightings   from  the   2006  and   2007   surveys   mentioned   above,   and   all sightings  from previous  surveys,  are  inside  4nm13.   Anecdotal  sightings  in the  MDPSD  and  the  DOC  sighting  catalogue  are  also  concentrated  inside 4nm. For  example,  only  two  out  of  173  sightings  in  the  2008  MDPSD Report  are  outside  4nm. This  pattern  is  consistent  with  comments  from many  industry  and  recreational  submitters  that  they  do  not  see  dolphins offshore from 4nm.

49       Based  on  the  survey  and  anecdotal  sighting  information,  MFish considers   that   dolphins   may   make   isolated   and   infrequent   excursions offshore  from  4nm,  but  also  that  the  dolphins  are  most  common  closer  to shore.

13  In  a  comprehensive  aerial  survey  by  Slooten  et  al  (2005)  most  summer  sightings  were inside 1nm but in winter dolphins tended to move further offshore.

[95]     It went on to make similar points later in the advice paper and then in respect

of an option to prohibit set nets somewhere between 4 nm and 12 nm it said:

Part I notes that dolphins have been seen occasionally out beyond 4nm.  This option  [to  prohibit  set  nets  somewhere  between  4 nm  and  12 nm]  would provide further protection to any dolphins that may be present in this area. There  is  limited  information  on  which  to  support  a  particular  distance offshore from the boundary.   Information on dolphin distribution discussed in the context of options to extend the offshore boundary of the existing set net  prohibition  area  outline  the  range  of  sightings.   In  general  the  further offshore  the  boundary  extends  the  more  the  risk  to  dolphins  is  reduced. However reliable sightings extend as far as 7nm offshore. (emphasis added)

[96]     There was further discussion on this topic in an appendix which summarised SeaFIC‟s  submission  and  the  Ministry‟s  response  to  the  points  made.   In  this  the Ministry  acknowledged  that  ideally  the  sightings/survey  information  would  have been  subject  to  verification  to  improve  its  certainty,  noted  that  the  aerial  surveys were  carried  out  by  DoC  scientists  and  stated  that  the  Minister  should  “exercise caution” in determining how much weight to give to this information when it had not been peer-reviewed.   The appendix contains a further discussion of the hierarchy in the quality of information available.

[97]     Meetings took place between  Ministry officials  and the Minister on 20 and

21 May 2008.  The affidavit evidence does not directly cover what was discussed at the meetings, but the meetings resulted in the Ministry providing the Minister with supplementary advice.  The supplementary advice provided on 21 May 2008 was as

to the range of options which the Ministry considered best met the range of risk the Minister  had  outlined.  The  only  option  provided  in  relation  to  the  offshore  net closure  was  to  extend  the  ban  to  7 nm. The  supplementary  advice  given  on 22 May 2008 advised the Minister of further issues the Ministry believed should be brought to the Minister‟s attention before he made a final decision on the appropriate measures  to  take. Amongst  that  advice  was  that  “[r]ecent  aerial  surveys  have detected dolphins further offshore than 4nm, and there is a small number of recent anecdotal sightings of dolphins further offshore than 4nm”.

[98]     The Minister advised Cabinet of his preliminary views by  Cabinet  paper dated  23  May 2008. In  that  paper  he  noted  that  extending the  set  net  prohibition

from 4 nm to 7 nm would protect Maui‟s dolphins “as far as they have been reliably sighted during research surveys”.

[99]     In supplementary advice on 27 May 2008, the Ministry advised the Minister that the rationale for extending the closure out to 7 nm (as compared with 12 nm as favoured by DoC) was that:

The  DoC  database  lists  a  confirmed  sighting  of  a  Maui‟s  dolphin  at  7nm. The DoC database lists a further sighting at 10nm but notes that this sighting is  of  unknown  reliability.   A  single  sighting  of  unknown  reliability  is  not considered sufficient rationale to restrict utilization unless a very risk averse approach is considered.

[100]   On 28 May 2008 the Minister made his decision (refer [68] above).

[101]   On 5 June 2008, in response to SeaFIC‟s requests for information made at the time of the of the consultation on the sighting information on DoC‟s website (refer

[87] and [89] above), SeaFIC received DoC maps depicting sightings and the source for those sightings.

The Minister’s reasons

[102]   The  Minister‟s  reasons  of  2  July  2008,  in  so  far  as  they  relate  to  the

applicants‟ challenge to the WCNI decision, were as follows:

…there  is  considerable  information  available  to  indicate  that  government should be concerned about the effect of any human-induced mortality.   We know that the population size is small and that it has probably declined over time.   We do not know for certain the cause of the decline.   However … I consider  only  a  very  low  level  of  risk  of  fishing-related  mortality  to  be acceptable to  avoid the  effect that  fishing-related  mortality would  have  on this  population.   This  means  implementing  measures  where  mortality  may not have occurred to date, but where I consider there is an unacceptable risk

– given the best available information – of mortality occurring in the future.

The   existing   set   net   ban   established   in   2003   has   probably   provided significant  protection  to  Maui's  dolphins  from  fishing. Indeed  the  final advice  that  the  Ministry  of  Fisheries  presented  to  me  indicates  that  the dolphins are primarily distributed inside the existing set net ban.  While this provided me some comfort, the critical issue that I had to consider was the level of residual risk that remains from some overlap of Maui's dolphins and fishing.

I am aware that fishers argue there are no dolphins outside the existing set net ban. However, the final advice included evidence that dolphins at least occasionally travel outside the existing set net ban into areas where they may

be exposed to set net entanglement. …   I reiterate that the critical issue for me to consider was whether the risk of future fishing-related mortality was

acceptable (regardless of whether a mortality has been reported from an area

or not) in light of the effect that human-induced mortality will have on this population.  I considered the reliability of the distribution information in the

final advice before making my decisions.

There is evidence that dolphins occasionally travel offshore more than four nautical  miles,  and  into  the  Kaipara  Harbour  entrance.  There  is  also evidence  that  dolphins  occasionally  travel  just  beyond  the  existing  set  net ban in the Manukau Harbour entrance.   There is no evidence that dolphins are  regularly in  these  areas,  so  I believe  the  likelihood  that  a  dolphin  will encounter  a  set  net  outside  the  existing  set  net  ban  is  low. However,  I consider that additional protection in these areas is necessary in light of the consequences of fishing-related mortality to the population.

…  Some  people  will  also  be  concerned  I  did  not  ban  nets  inside  all  west coast harbours.   I mentioned earlier, I considered the reliability of dolphin distribution information in the final  advice before I made  my decisions.   I saw no reliable information to support claims I have seen from some people via the media, and in some submissions, that dolphins range deep inside west coast  harbours,  nor  that  dolphins  use  the  harbours  for  extended  periods  of time.   I do not consider best available information supports measures deep inside  these  harbours  at  this  time.   However,  if  new  information  becomes available  that  indicates  dolphins  are  present  deep  inside  these  harbours,  I will obviously need to consider this issue again.

...

Evidence of dolphins south of the existing set net ban … is uncertain.  Aerial and boat surveys have failed to detect any dolphins south of the set net ban, but there are some anecdotal sightings made by members of the public.   In this  instance,  I  decided  that  there  was  too  much  uncertainty  about  if,  and how often, dolphins may travel south of the set net ban, to impose fishing restrictions  that  would  impact  the  local  fishing  industry  and  recreational fishers at this time.

[103]   It  can  be  seen  that  the  Minister‟s  reasons  do  not  specifically  refer  to  the information about a sighting at 7 nm.   The reasons acknowledged that the dolphins were primarily inside the existing set net ban but there was evidence that dolphins “occasionally travel offshore more than 4 nm”.

[104]   In his affidavit for this proceeding the Minister provided further information about his reasons.  He said:

... I was also conscious that New Zealand has committed internationally to protect biodiversity.

... I knew that the Ministry could not put precise numbers around things like abundance and trends and could not be certain that any specific sighting was not mistaken.

...  I  agreed  with  the  Ministry‟s  assessment,  as  evidenced  in  my  decision letter where I note that the likelihood a dolphin would encounter  a set  net outside the existing set net ban was low.

...  I  approached  my  decisions  on  the  basis  that  the  available  information could  not  tell  me  very  accurately  where  Maui‟s  dolphins  were,  but  that  it was  reasonably  likely  that  at  least  some  of  the  sightings  out  beyond  4 nautical miles were genuine sightings.

Since  Maui‟s  is  so  close  to  extinction,  I  considered  it  was  necessary  to protect that sub-species wherever it could reasonably be found, even if only infrequently.   I realised that  with so few dolphins remaining the odds of a dolphin being entangled in any given set net  would be very small, but the consequence of  just  a  few  entanglements  could  be  significant  precisely because so few dolphins remain.

... I relied on the advice that I received about what sightings there had been and the uncertainties around them.  The advice about a sighting at 7 nautical miles that Mr Clark focuses on was significant, but it was not determinative in the decision to extend the closed area.

Other evidence

[105]   Dr du Fresne‟s report was completed in September 2008. In this report Dr du Fresne discussed the 2006 survey, noting the lesser experience of that survey team and that the researcher “felt that some of the sightings were unreliable”. He said that if the unreliable sightings are discarded “the furthest offshore sighting was made at a distance of about 7 nm”.   He said that the 2005, 2006 and 2007 surveys indicate that  Maui‟s  dolphins  occasionally  use  waters  beyond  4  nm,  but  the  majority  of sightings  are  concentrated  within  4  nm. He  said  that  “though  there  are  some acknowledged  issues  with  the  reliability  of  some  of  the  data”  from  2006,  it  still provides a useful contribution.

[106]  On 27 November 2008 Ms Scali, together with Dr Dawson and Dr Slooten, (all from Otago University) completed their “Final Progress Report” on Maui‟s dolphin. The scope of this research report included verifying the offshore distribution of Maui‟s dolphin and in particular the aerial surveys “to determine whether Maui‟s dolphins are found further offshore than the offshore boundary of the protected area”. This report referred to surveys in 2000-2002, 2004, 2007 and 2008. The

report went on to discuss the results from the 2007 and 2008 surveys.   In respect of the 2007 survey it reported that one sighting was made at 4.05 nm with the rest being inside the 4 nm area.  In respect of the 2008 survey it reported that one sighting was

made at 4.03 nm and the rest were within the 4 nm area.  It concluded:

The results of these surveys confirmed that is already known about Maui‟s dolphin  distribution.              During  both  the  aerial  surveys  two  sightings  were made further offshore than the 4 n.mi. boundary of the 2001 protected area. Although these were a small percentage of the sightings made during these surveys,  they  highlight  the  fact  that  the  protected  area  that  was  in  place between  2001  and  2008  did  not  fully  encompass  the  offshore  range  of Maui‟s dolphin.

Affidavit evidence

[107]   The Minister‟s  affidavit explained  that he relied  on the advice he had been given and that the advice about a 7 nm sighting was significant.  The advice he had about the 7 nm sighting was that it came from a DoC 2006 aerial survey which had not been peer reviewed and so the Ministry could not determine the accuracy of the results.  The Minister was also told that there was a public sighting at 7.7 nm but that anecdotal evidence should be given less weight than scientific information.  He was also  advised  that  “reliable  sightings  extend  as  far  as  7 nm  offshore”  and  that  the sighting at 7 nm on the DoC database was a “confirmed sighting”.

This dolphin died.

[236]   For  the  applicants,  Mr  Clark  commented  that  these  records  showed  that Mr Halley  had  concluded  that  commercial  butterfish  set  netting  was  a  risk  to Hector‟s dolphin based on “a few mortalities arising from amateur fishers, in most cases fishing irresponsibly or lacking experience, and all targeting moki”.  Mr Clark said  that  in  relying  on  these  records  it  was  apparent  that  the  Ministry  had  not understood  the  difference  between  commercial  butterfish  set  netting  and  moki  set netting.

Best available information (nature and operation of butterfish operation)

[237]   The  applicants  submit  that  the  Minister  failed  to  make  his  decision  on  the best  available  information  because  he  was  misled  about  the  size  of  set  nets  for butterfish and the risk of entanglement in such nets from commercial fishers.  They say that the errors in the advice were significant because they help explain why in the  draft  advice  the  Ministry  discussed  an  exemption  for  flatfish  and  butterfish together, but by the time of the final advice they were seen as having differing risks.

[238]   The Minister‟s affidavit makes it clear that the Minister relied on the advice from the Ministry that the risk from fishing for flatfish was less than the risk from fishing for butterfish.   The reason the Ministry gave the Minister for this was that butterfish  effort  could  be  significant  (in  contrast  with  flatfish  which  was  not significant  and  potentially  commercially  unviable)  and  could  be  “in  open  waters” (whereas flatfish nets were said to be set in sheltered areas, set low in the water and when dolphins were set more out to sea).  The Ministry advised the Minister that set nets in butterfish areas had been known to catch dolphins where they had been set in “more open waters”.

[239]   This  advice  did  not  make  it  clear  that  commercial  targeting  of  butterfish occurred close to shore (in the kelp areas) and not in open waters, nor that the known entanglements were from amateur set netting. The advice therefore did not make it clear that one of the two reasons why butterfish was viewed as a higher  risk  than flatfish related to amateur methods. At the same time the advice identified the other of  the  two  reasons  for  the  higher  risk  as  being  that  the  butterfish  effort  could  be significant.  This reason appears to be directed to commercial targeting.  The advice therefore  combined  the  risks  associated  with  amateur butterfish  fishing (which  are not  necessarily  present  with  commercial butterfish fishing) with  the  amount  of fishing done by commercial fishers.

[240]   The advice about the size of the set nets for butterfish was discussed a page

on from the advice about the comparative risks of an exemption for flatfish and an exemption  for  butterfish.   It  is  not  known  what  the  Minister  made  of  that  advice because  his  affidavit  does  not  discuss  it.             However  it  must  be  assumed  that  the Minister  read  that  advice. That  advice  may  have  erroneously  reinforced  the identified risk to dolphins from fishing for butterfish where the effort is significant (if limits on size/number of nets were not adhered to).

[241]   I am left unclear from the Minister‟s affidavit about what he made of the risk arising from the overlap of butterfish nets and the presence of dolphins.  His affidavit said  that  he  did  not  recall  advice  in  the  final  advice  paper  or  the  supplementary advice  paper  about  that.  I  take  it  from  this,  that  the  Minister  did  not  take  into account that commercial fishers fish for butterfish in kelp beds (rather than in open

waters)  nor  did  he  consider  whether  this  meant  that  the  area  used  for  commercial fishing for butterfish overlapped with the presence of dolphins.   The failure of the advice to  address this issue is consistent  with the Ministry combining the amateur and commercial risks together indiscriminately.

[242]   The Minister referred to advice from his Ministry in relation to the request made by the Federation of Commercial Fishers for an exemption for the butterfish fishery at the top of the ECSI.   Specifically he referred to advice that there was no reason to distinguish between the risk in this area from other areas.   Again there is nothing  to  indicate  here  that  the  Ministry‟s  advice  considered  whether  the  risks associated with commercial targeting of butterfish in this fishery (because of method and location) differed from amateur fishing for butterfish and moki (likely to occur in  other  locations  and  with  different  methods)  or  commercial  set  netting  for  other species.   At least according to the evidence before me, it seems that rocky areas on the East Coast which may have kelp on them, are not all the same so far as the likely presence  of  butterfish  and  therefore  whether  they  will  be  targeted  by  commercial fishers.

[243]   The Minister was therefore given incomplete and potentially misleading advice about the risk that commercial butterfish set netting posed.  It is not clear that the size of the butterfish effort alone (regardless of the size of the net and where that effort  was  targeted)  would  have  been  seen  as  a  sufficient  reason  to  decline  an exemption for this. And it is not clear whether the Minister would have taken the same  view  about  the  risks  of  commercial  butterfish  fishing  had  he  been  advised about the differences between commercial targeting of butterfish and amateur fishing for butterfish (and/or moki).   He may have, but the fishers are entitled to have the risks accurately presented to the Minister before a decision adversely affecting them is made.

[244]   I   consider   that   issue   needs   to   be   referred   back   to   the   Minister   for reconsideration on the basis of accurate information (subject to the condition offered by the applicants – see below at [283]).

Best available information (other measures)

[245]   The applicants submit that s 10(a) was also  breached  because  the  Ministry did not obtain information from fishers or through independent monitoring and did not consider regulatory or other measures to address any concerns about the nature

of the butterfish set net fishery.   I do not think this adds to the former ground.  The error was not in failing to obtain more information (the Minister is not required to wait for an observer programme and was of the view in other areas that advice from fishers should not be entirely relied upon).   The error was in relying on advice that was incomplete and potentially misleading.

Prohibition a “necessary” measure

[246]   The applicants submit that, because the  Minister  did  not  act  on  the  best available information, he imposed a measure that was not necessary to avoid, remedy

or mitigate the effect of fishing related–mortality on the Hector‟s dolphin.  The point

is that the Minister is not able to assess whether the measure is necessary without an accurate assessment of the risks.   I agree with this submission.   This can be viewed

as a breach of the s 15(2) obligation.

[247]   The applicants  also  submit  that  the  Minister  failed  to  consider  whether  not providing the  exemption was necessary, when protection would be afforded to the Hector‟s dolphin from the set net prohibition out to 4 nm and the trawl prohibition out to 2 nm.   I do not agree.   The advice to the Minister was that he may wish to consider greater levels of utilisation than a closure of the areas to all set netting.   In that context the advice discussed the risks around an exemption for flatfish and the risks  around  an  exemption  for  butterfish.   The  latter  was  seen  as  “decreasing  the effectiveness” of the 4 nm closure.  The advice therefore specifically considered this point.  The Minister accepted the advice that an exemption for butterfish involved a higher  risk  to  Hector‟s  dolphins  than  not  providing  a  butterfish  exemption  and decided that this risk was unacceptable.

The SCSI decision

The population

[248]   Hector‟s dolphin in the SCSI are strongly concentrated in Te Waewae Bay. Two hundred and fifty nine (in autumn) and 403 (in summer) Hector‟s dolphin are estimated to use that area although the published abundance estimate for the SCSI is 89.

The fishers

[249]   There  are  about  11  commercial  set  net  fishers  in  the  SCSI fishery,  at  least four  to  five  of  which  operate  in  Te  Waewae  Bay.  They  target  a  range  of  fish including  butterfish.                   There  are  around  30  commercial  trawl  fishers  in  the  SCSI, targeting a range of fish.

Fishing-related mortalities

[250]   The DoC database for Hector‟s dolphin mortalities in the SCSI covers the period between 1973 and 2008.  It records 23 deaths.  Of these two are attributed to natural causes, one is attributed to a probable entanglement, and another is attributed to a possible entanglement.  The cause of death of the others is unknown.

Existing measures

[251]   In 2004 a Set Net Voluntary Code of Practice for the SCSI was put in place.

The Minister’s decision

[252]   The  Minister  prohibited  set  netting  in  the  whole  of  Te  Waewae  Bay  and outside of Te Waewae Bay to 4 nm offshore (from Slope Point to Sandhill Point).

He  also  prohibited  trawling  to  2  nm  offshore  (between  the  same  points). He provided an exemption for flatfish nets with low headline heights.

The aspect of the decision that is challenged

[253]   The challenge is to the prohibition on set netting outside of Te Waewae Bay out to 4 nm and the decision not to allow an exemption to that prohibition to target butterfish in the Bluff area.

Interim relief

[254]   Interim relief was  granted in respect of set netting between 1 nm and 4 nm outside Te Waewae Bay.

The grounds of challenge

[255]   The applicants  say that  the  Minister  breached  the  obligation  in  s  10(a)  and imposed a measure that was not necessary in terms of s 15(2) by failing to provide an exemption for butterfish in the Bluff area.  They say that the decision was reached on the incorrect basis that most of the butterfish fishing occurred around Stewart Island and without considering the Bluff area‟s likely increased importance because of the other prohibitions.   The applicants also say that the decision to impose a set netting restriction  out  to  4  nm  breached  s  10(a)  and  s  15(2)  because  it  was  made  for consistency  with  the  ECSI,  when  the  advice  was  that  a  2  nm  closure  outside Te Waewae Bay was a measure reducing the risk to the dolphins “to lowest possible levels”.

The butterfish exemption

[256]   The draft TMP for public consultation discussed an option of prohibiting all commercial  set  netting  out  to  either  2  nm  or  4  nm,  with  provisions  for  some butterfish  set  netting  in  designated  areas  at  certain  times  of  the  year. These

designated areas would be the main fishing grounds outside of Te Waewae Bay and included the Bluff area (Stirling Bay to Bombay Rock).

[257]   It said that available information (the DoC database and interviews with fishers)  suggested  that  set  netting  for  butterfish  posed  the  least  risk  of  dolphin mortalities  out  of  all  set  netting  practices. The  Ministry said  it  was  not  aware  of dolphin  mortalities  caused  by  nets  for  butterfish  and  that  “[b]utterfish  nets  are confined to kelp/reef areas in the SCSI (a habitat that is not favoured by Hector‟s dolphins).”  It said that set netting for moki and small sharks was considered to have a  higher  risk  of  dolphin  entanglement  than  netting  for  butterfish  in  reef  areas  and flatfish.  Here it referred to differences in the nets used for moki and small sharks.  It said  that  there  was  uncertainty  around  the  number  of  dolphin  deaths  caused  by amateur set netting because the level of fisher self-reporting was unknown.

[258]   The final advice said that the risk of entanglement in commercial set nets is related to the overlap between set net effort and dolphin distribution, as well as the fish  species  being  targeted.  On  the  need  for  measures  to  be  taken  the  Ministry advised:

91       [The Ministry] cannot determine the level of mortalities that are occurring in SCSI or whether the population is becoming more fragmented. There are very few recorded mortalities in the DOC database and these alone would not give cause for concern.  However, observer coverage is often low, amateur  fishing is largely not monitored and self-reporting is  known to be low across commercial fishers as a whole, making independent assessment of actual levels of mortality difficult.

92       On  balance,  [the  Ministry]  considers  that  there  is  still  a  risk  that individual  mortalities  will  occur  under  current  management. While  the likelihood  of  mortalities  may  be  low,  the  consequences  are  high. [The Ministry] therefore considers that it is necessary for you to take additional management action to avoid remedy or mitigate the effects of fishing-related mortality on the SCSI Hector‟s dolphin population for the following reasons:

a)    The SCSI population is very small (85-403 according to the two most recent estimates)

b)    The PBR for SCSI is very low (less than one8) indicating that rebuild of the population is threatened by relatively low levels of human induced mortality

c)    Current  management  action  is  likely  to  be  only  partially  successful

(some areas, seasons and methods not mitigated at all)

d)    There   is   significant   overlap   between   fishing   effort   and   dolphin distribution, particularly in Te Waewae Bay

e)    High-risk  threats  such  as  set  netting  are  largely  reliant  on  voluntary measures and potentially ineffective methods such as pingers.   Where no   mitigation   is   used,   threats   are   known   to   be   very   significant (entanglement by set nets is the highest single recorded cause of death across all Hector‟s dolphin populations).

93   Nevertheless,  there  is  little  direct  evidence  of  dolphin  mortalities  and you  should  consider  whether  the  above  information  on  risk  of  mortalities occurring  is  sufficient  for  you  to  consider  that  additional  measures  are necessary.  Better observer coverage and research into the populations could increase certainty over levels of risk, should you consider that management action is not justified at this time.

[259]   When discussing the options available to the Minister, the final advice paper had  a  heading  “Measures  to  reduce  risk  to  lowest  possible  levels”. Under  this heading  the  Ministry  listed  closure  of  the  Te  Waewae  Bay  area  together  with “[s]ome additional restrictions on amateur and commercial set net use outside of Te Waewae Bay area (Option 2 amateur and commercial set net remainder of SCSI)”. “Option 2 amateur and commercial set net remainder of SCSI” in turn referred to an option of a 2 nm prohibition over a 6 month summer period but with an exemption for  butterfish  in  the  Bluff  area.   (An  exemption  for  another  butterfish  fishery was rejected as being too close to Te Waewae Bay.)  The options did not include a 4 nm prohibition.

[260]   In discussing an exemption  in the Bluff area in relation to amateur fishing, the Ministry advised that a “small” risk remained.   In discussing the 2 nm summer prohibition on commercial set netting the Ministry advised that risk was  mitigated because  it  eliminated  commercial  set  netting  at  the  time  of  year  and  in  the  areas where  Hector‟s  dolphins  are  considered  at  risk  of  entanglement  and  reduced  the overall  levels  of  the  butterfish  effort.   It  said  that  the  following  “lesser  threats” remained with this option: fishing in butterfish areas that is not done responsibly or is done when dolphins are present; fishing outside 2 nm where dolphins are present and if the Code of Practice measures were not followed or were not effective; and illegal set netting.   As to dolphins being outside 2 nm, the Ministry said this was a more common occurrence in the winter months.

[261]   The  Minister  indicated  a  preliminary  preference for a 2 nm  closure for commercial and recreational set netting in the  SCSI. In supplementary  advice provided on 22 May 2008 the Ministry advised that the Minister could extend this to

4 nm.  The Ministry noted the small SCSI population and therefore the greater risk to

it  from  fishing  related  impacts. It  said  that  the  benefits  of  a  4  nm  closure  were uncertain  because  it  was  not  known  where  the  dolphins  went  when  they  left Te Waewae in the later months.   It said “[n]onetheless, if you were to implement a 4 nm closure for the ECSI then it would seem logical to also employ such a closure on SCSI where the effect of impacts of fishing may be greater given the size of the population”.

[262]   To put that advice in context, in discussing a 4 nm closure on the ECSI, the supplementary advice said that this “would provide greater benefit” although it was a “case of diminishing returns once the closure moves out beyond 2 nm”. It said that a 2  nm  closure  would  eliminate  a  “significant  proportion  of  the  risk,  particularly  in summer  where  dolphins  are  more  inshore”.         It  referred  to  43%  of  set  netting occurring within 2 nm and 69% occurring within 4 nm.  It concluded this discussion with stating that a 4 nm closure “is likely to be more effective in mitigating inshore risk”.

[263]   The Minister had also indicated a preference for an exemption for butterfish

for commercial fishers in the Bluff area.  In supplementary advice given on 22 May

2008 the Ministry advised the Minister:

In  discussion  on  21  May  you  indicated  a  preference  for  implementing  an exemption to allow set net fishing for butterfish by commercial fishers in an area around Bluff where dolphins had not been seen. The Total Allowable Commercial  Catch  for  butterfish  for  the  Quota  Management  Area  (QMA) surrounding SCSI is 35 tonnes.  Within that QMA, 16 tonnes of butterfish is taken  from  the  broad  the  exemption  [sic]. We  do  not  have  fine  scale reporting data to determine how much butterfish is taken from the exemption area  itself.   However,  we  understand  that  the  area  is  not  important  to  the commercial fishery that focuses most effort around Stewart Island, which is unaffected  by  measures  for  the  SCSI.    It  is  therefore  open  to  you  to  not proceed with this exemption.

[264]   The supplementary advice concluded by recommending either a 2 to 4 nm, or

a  4  nm,  closure  to  commercial  and  amateur  set  netting  and  no  exemption  for butterfish in the Bluff area.

[265]   The  Minister‟s  paper  to  cabinet  dated  26  May  2008  (ie  dated  after  the supplementary  advice  just  discussed)  set  out  the  Minister‟s  “preliminary  view”  as being  a  4  nm  closure  but  with  a  6  month  exemption  for  commercial  set  nets  for butterfish  in  the  Bluff  area.  There  is  no  direct  evidence  as  to  what  changed  the Minister‟s mind after this point so that the exemption was no longer included.

The Minister’s reasons

[266]   As set out in the Minister‟s letter of 2 July 2008 his reasons were as follows:

…  I  also  believe  there  is  sufficient  information  available  now  to  indicate that  government  should  be  concerned  about  the  effects  of  fishing-related mortality  on  the  population.   After  Maui's  dolphin,  the  south  coast  South Island  Hector's  dolphin  population  is  probably  the  smallest  of  the  four populations.  Whether there are 89 dolphins (the latest published abundance estimate for dolphins in Te Waewae Bay at the time of the survey) or 403 dolphins (the latest unpublished abundance estimate for dolphins that use the bay  over  an  extended  time  period),  the  population  is  small.   Most  of  the dolphins seems to be in Te Waewae Bay, although there are dolphins along other sections of coastline.

There are very few reported mortalities for this population, and no reported fishing-related  mortalities,  although  there  is  one  possible  entanglement. However,  there  has  been  no  formal  monitoring  of  amateur  set  netting,  no monitoring of trawl fishing, and only limited monitoring of commercial set net  fishing,  particularly  in  Te  Waewae  Bay. Because  of  the  size  of  the population, and because I know that set nets and trawlers catch dolphins in other areas, I am concerned about the level of overlap between dolphins and fishing on the south coast.

…  Although  the  distribution  of  the  dolphins  in  some  places  outside  Te Waewae   Bay   is   uncertain,   the   final   advice   illustrates   that   there   are occasionally dolphins on the coast between Te Waewae Bay and the Catlins. Given the impact of fishing-related mortality on this population, I consider that measures are also necessary outside Te Waewae Bay.

[267]   The Minister‟s affidavit for this proceeding said:

My  decisions  for  this  area  were  risk  averse,  because  this  population  of Hectors dolphin is quite small.  That factor was most important in relation to the area outside Te Waewae Bay, as dolphins are seen out there less often than in Te Waewae Bay itself.   The likelihood of entanglement outside the bay is lower (at least in summer), but I eventually settled on a closure out to

4  nautical  miles  because  of  the  importance  of  avoiding  entanglements  of dolphins  from  such  a  small  population.   There  was  no  indication  that  the dolphins  would  keep  within  two  miles  of  the  shore  when  just  outside  Te Waewae Bay.

My reasons for this decision are set out in the decision letter, and Mr Clark correctly identifies the key pieces in the Ministry‟s advice to me.   As with fishing in  other  areas,  I understood that the  closure that  I was  considering would have a significant impact on local fishers and could well put some out of fishing.   I considered protection of this population sufficiently important that it was necessary to impose that cost on the local fishers and other people who depended indirectly on fishing.

Assessment of challenge not to exempt the butterfish fishery in the Bluff area

Best available information

[268]   The applicants submit that the Minister was not  given  correct  advice about the  utilisation consequences of refusing to grant the butterfish  exemption. The advice was that the Bluff area was not important to the commercial fishery because that was focussed mostly on Stewart Island.  The applicants say that this did not take into  account  those  displaced  by the  Te  Waewae  Bay and  4 nm  set  net  prohibition who would be likely to look to a butterfish exemption in Bluff to remain viable.

[269]   There is affidavit evidence before me from a Mr McKay to the effect that his family‟s business will not survive as a result of the Minister‟s decision.  Mr McKay said that up to 80% (and sometimes up to 90%) of the family‟s income comes from rig, with the remainder coming from by catch of moki, butterfish and trumpeter.  His evidence is that because of the size of their boat, their fishing gear and their quota they cannot fish outside the 4 nm prohibition.

[270]   Mr McKay‟s affidavit was directed to the impact of the 4 nm prohibition and did not say whether the family business could survive if the butterfish exemption in Bluff  had  been  granted. The  applicants  have  not  pointed  to  other  evidence  that shows  that  the  butterfish  exemption  in  Bluff  was  or  would  become  an  important commercial fishery because of the other set netting closures.  Furthermore, although the Minister‟s affidavit did not specifically refer to the Bluff area, he did say that he understood  that  his  decision  would  have  a  significant  impact  on  local  fishers  and could well put some of them out of business.   In these circumstances the applicants have not shown that the Minister made his decision on erroneous information such that there was a breach of s 10(a) (or a decision based on a mistake of fact).

Prohibition a “necessary” measure

[271]   The applicants submit that the Minister‟s decision not to grant an exemption was made because of  erroneous advice that the  butterfish fishery in  Bluff was  not important  rather  than  because  it  was  viewed  as  “necessary”  to  avoid,  mitigate  or remedy  the  effects  of  fishing  related  mortality. Here  the  applicants  point  to  the Minister‟s initial preference to provide this exemption.   The applicants say that the Minister‟s reasons do not discuss why the exemption was not provided.   They say that the Minister‟s affidavit is unsatisfactory because it does not address this either. The  applicants  submit  that  it  must  be  taken  that  the  Minister  decided  against  this exemption because of the advice that the fishery was not important.

[272]   The Minister‟s affidavit would certainly have been clearer if it had discussed the butterfish exemption specifically and what in particular  altered his preliminary view  in  this  respect.   I  agree  that  it  must  be  taken  that  the  Minister  relied  on  the supplementary  advice  to  the  effect  that  the  Bluff  area  was  not  an  important commercial fishery.  Nevertheless I consider that this does not show that the Minister imposed a measure that was not “necessary”.

[273]   The Minister‟s reasons referred to the small population, found mostly in Te Waewae Bay though not exclusively.  He was concerned about the risk of mortality because  of  the  overlap  of  fishing  with  the  presence  of  dolphins. Information elsewhere  showed  that  set  netting  had  been  responsible  for some mortalities and there were reasons why the level  of  mortalities  in  the  SCSI  may  have  been understated.   In  deciding  whether  it  was  necessary  to  implement  measures  it  was relevant to weigh the lesser utilisation of this area with the risk to the small dolphin population from a fishing related mortality.  The supplementary advice was therefore relevant to the Minister‟s assessment.

[274]   The applicants also submit that the Minister  failed  to  consider  whether  the

4 nm set netting ban and the 2 nm trawling ban provided the sufficient “necessary” protection such that the butterfish exemption could have been given. The advice, however, specifically addressed this. The final advice paper referred to the threats (albeit described as “lesser” threats) from such an exemption if fishing in butterfish

areas was not done responsibly or was done when dolphins are present.  The reasons referred to the presence of dolphins along the coastline to the Catlins.  The affidavit also  referred  to  dolphins  being  seen  outside  Te  Waewae  Bay. The  Minister‟s affidavit referred to his risk averse approach.  That was an approach that was open to him. In  my  view  the  applicants  have  not  established  an  error  in  the  Minister‟s assessment on this ground.

Assessment of challenge to 4 nm closure

Best available information/prohibition not “necessary”

[275]   The applicants submit that the error here,  whether  viewed  as  a  breach  of

s 10(a) or s 15(2), was in extending the  2 nm  set  netting  ban  out  to  4 nm  for

“cosmetic” reasons, namely to be consistent with the decision in respect of the ECSI.

In my view the evidence does not show that this was the reason for the change in view from 2 nm to 4 nm.

[276]   It is the position that the Ministry had recommended a 2 nm prohibition.  It is also the position that a 4 nm prohibition was not included in the final advice paper. The option emerged following discussion with the Minister. At this stage  the Ministry was aware that the Minister was contemplating a 4 nm restriction in respect

of  the  ECSI. The  advice  was  that  if  the  Minister  was  of  the  view  that  this  was necessary, then the same view could be taken in the SCSI where the population was much smaller.   This was open to the Minister because there was uncertainty about where  the  dolphins  went  when  they  left  Te  Waewae  Bay  and  they had  been  seen outside 2 nm at least in the winter months.  It was not therefore a case of applying a

4 nm simply to be consistent with the ECSI.   Rather, if the Minister viewed a 4 nm

as “necessary” in the ECSI then logic indicated that it was also necessary in SCSI on the available information as it related to the SCSI.

Conclusion

[277]   The  applicants  succeed  in  establishing  a  reviewable  error  in  respect  of  the following parts of the Minister‟s decision:

a)        The extension of the 4 nm set netting prohibition to 7 nm in the West

Coast of the North Island;

b)The  decision  not  to  exempt  targeted  fishing  for  butterfish  in  the fishery at the top of the East Coast of the South Island.

[278]   In both cases, I consider that the applicants have shown that the Minister was given inaccurate advice.  In the case of a) that inaccurate advice related to advice that sightings of Maui‟s dolphins at 7 nm were reliable, and that this was a “confirmed” sighting,  when  there  was  one  sighting  (of  three  dolphins)  and  the  team  leader conducting the survey in which that sighting had been made had concerns about the survey  as  a  whole. In  the case  of  b)  the  inaccurate  advice  was  in  attributing mortality  risks  for  Hector‟s  dolphins  from  amateur  set  netting  for  butterfish  and moki with risks associated with targeted fishing for butterfish in the fishery at the top of the East Coast of the South Island.

[279]   The respondents opposition to the applicants‟ challenge in these two respects was based on seeking show that the advice was not accurate. They accepted that a decision based on  an incorrect understanding of the facts  potentially could be set aside. I consider  that  the  Minister‟s decision in these  respects  should  be  referred back to the Minister for reconsideration (subject to the condition discussed below at [283]) because the inaccurate advice was potentially material to his decision.  I do so on the basis that the Minister did not take into account that his decision should be based on best available information (s 10(a)) (because he could not do so when the advice was inaccurate) or on the basis that the Minister may have imposed a measure that  he  would  not  have  considered  necessary  had  he  had  the  accurate  information (s 15(2)).   An  alternative  basis  might  have  been  for  a  material  mistake  of  fact  or other traditional judicial review ground.

[280]   The applicants do not succeed in their challenge to the following parts of the

Minister‟s decision:

c)        The extension of the set netting prohibition further into the Manukau

Harbour;

d)       The seasonal 2 nm set net prohibition on the West Coast of the South

Island;

e)        The 4 nm set net closure outside  of  Te  Waewae  Bay  on  the  South

Coast of the South Island;

f)        The decision not to exempt  the  targeted  fishing  of  butterfish  in  the

Bluff area.

[281]   In the case of c), d), e) and f) the Minister had accurate information and he did not make the errors the applicants rely upon. His decision balanced utilisation with the protection of the Maui‟s and Hector‟s dolphin population. The applicants view the  Minister‟s decision as harsh, but it was open to him to put in place measures on the existing available information rather than to wait for  further information from, for example, the intended observer programmes.  He was entitled

to take a risk averse approach, favouring conservation objectives over utilisation of the fisheries where the information was uncertain.

[282]   The parties agree that the Minister did not intend to prohibit ring netting in the harbours of the West Coast of the North Island that were closed by the Minister‟s decision.      I  agree  with  the  applicants  that  the  regulations  as  passed  had  this (unintended) effect.

[283]   Because the applicants have shown only that the Minister made his decisions

on  the  basis  of  inaccurate  information  in  two  respects,  and  not  that  the  Minister‟s decision  would  necessarily  have  been  any  different,  the  Minister‟s  decision  in respect of a) and b) is not set aside at this point.  Instead the applicants have offered that the interim relief continue (which has a condition that fishing activity will cease

if there is a fishing-related mortality).  I envisage that the parties will be able to agree the  terms  on  which  any  part  of  the  interim  relief  is  to  continue  pending  the completion of the fishing season and/or the Minister‟s reconsideration.

[284]   The parties also propose that they prepare a draft consent order reflecting the findings  of  this  judgment,  and  in  particular  identifying  the  regulations  affected  by my judgment.  Accordingly the formal orders will be made once the parties have had an opportunity to discuss and potentially agree the appropriate formal orders.

[285]   If the parties are unable to agree the appropriate formal orders, or the terms

on which interim relief should continue, I reserve leave for memoranda to be filed.

In  the meantime  I extend the existing interim  relief for a further 21 days  to allow time for the parties to consider this.   Leave is also reserved to file memoranda on

costs if they cannot be agreed.

Solicitors:

B Scott, Chapman Tripp, Wellington, email: [email protected]

P McCarthy, Crown Law Office, email: [email protected]

Mallon J

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Cases Cited

2

Statutory Material Cited

0

Nevin v R [2008] NZSC 40