Fishing Levy Regulations (Amendment) 1998 No. 205
EXPLANATORY STATEMENT
STATUTORY RULES 1998 No. 205
Issued by the authority of the Minister for Resources and Energy
Fisheries Management Act 1991
Fisheries Management Regulations (Amendment)
Section 8 of the Fishing Levy Act 1991 (the Levy Act) empowers the Governor-General to make regulations for the purposes of section 6 of the Levy Act.
Section 5 of the Levy Act imposes levy in respect of a fishing concession. Section 6 of the Levy Act provides that the amount of levy imposed on the fishing concession is the amount prescribed by the Regulations.
Section 168 of the Fisheries Management Act 1991 (the Management Act) empowers the GovernorGeneral to make regulations for the purposes of the Management Act. Section 110 of the Management Act provides that the levy imposed by the Levy Act is due and payable at a time or times ascertained in accordance with regulations made under the Management Act.
"Fishing concession" is defined under the Levy Act and the Management Act to mean, among other things, a fishing permit.
The Fishing Levy Regulations (Amendment) (the Regulations) are made under both the Levy Act and the Management Act. The Fishing Levy Regulations (the principal Regulations) specify the amount of levy imposed in respect of fishing concessions granted in relation to each of the fisheries referred to in the principal Regulations during particular periods of time.
The Regulations amend the principal Regulations by setting levies for two additional fisheries managed by AFMA on behalf of the Commonwealth: the Heard Island and McDonald Islands (HIMI) Fishery and the South Tasman Rise (STR) Fishery.
In accordance with government policy, AFMA recovers from the holders of fishing concessions (operators) in each fishery the costs of management attributable to the operators' activities, such as surveillance costs and costs of running the management advisory committees (other costs, such as the costs of prosecutions are funded by the Commonwealth). In the case of the fisheries referred to in the Regulations, the budgets on which the rates of levy for each fishery are based have been approved by AFMA's Board. The following processes were adopted in preparing those budgets:
* in the case of the HIMI Fishery, in 1997 AFMA published a draft policy for the fishery which, among other things, indicated that an annual levy would be payable by fishing permit holders and indicated the manner in which this would be calculated. In February 1998 the AFMA Board approved, and AFMA published, its final policy for the fishery which also indicated that an annual levy would be payable by fishing permit holders and the manner in which this would be calculated. At the time successful applicants were granted fishing permits for the fishery, AFMA advised them of the approximate amount of the levy and of the proposed date for collection; and
* in the case of the STR Fishery, as part of the process of developing its policy in relation to the fishery, AFMA consulted with the fishing industry via the South East Trawl Management Advisory Committee (SETMAC) regarding the setting of a levy for operators authorised to fish in the STR fishery. (All operators granted permits to operate in the fishery also hold permits for the South East Trawl Fishery.) In February 1998, prior to the granting of permits for the STR Fishery, all orange roughy quota holders in the South East Trawl Fishery were advised of the proposed management arrangements for the STR Fishery, including the proposed levy of 10 cents per kilogram of orange roughy taken from the fishery.
Details of the Regulations as they relate to each fishery, including rates of levy and when the levy is due and payable, are set out in the attachment. Details of regulations 1 and 2, which deal with matters common to both fisheries, are set out below.
Regulation 1 provides that the Regulations commence on gazettal.
Regulation 2 provides that the Regulations amend the principal Regulations.
ATTACHMENT
DETAILS OF THE PROPOSED REGULATIONS BY REFERENCE TO EACH FISHERY
Note:
In this attachment:
"1997/98" means the 1997/1998 financial year;
"1998/99" means the 1998/1999 financial year;
"AFMA" means the Australian Fisheries Management Authority;
"principal Regulations" means the Fishing Levy Regulations;
"invoice date" for a levy means the date mentioned on the invoice issued by AFMA for the levy;
"operator" means the holder of a fishing concession in a, fishery; and
"Regulations" means the Fishing Levy Regulations (.Amendment).
Heard Island and McDonald Islands Fishery
The Regulations impose levy in respect of the Heard Island and McDonald Islands (HIMI) Fishery (the fishery), a new fishery, recently established by AFMA. The area of the fishery comprises all waters within Convention for the Conservation of Antarctic Marine Living Resources (Convention) statistical area 58.5.2.
Australia is a signatory to the Convention, which establishes a Commission that, among other things, determines conservation measures to be applied to various areas within the area covered by the Convention. In 1996 and again in 1997 the Commission set a substantial total allowable catch for Patagonian toothfish in this area, which led to considerable interest by industry participants in conducting commercial fishing operations in the area.
AFMA established an exploratory fishery in the HIMI region and in February 1997 granted scientific permits to two operators to enable them to conduct fishing operations in the fishery between the date the permits were granted and 31 August 1997, when the fishery was closed. AFMA has now established a fishery pursuant to a policy under which two commercial fishing permits have been granted to operators for the period 21 April 1998 to 31 December 2000 (inclusive).
The Regulations enable AFMA to carry, out full cost recovery from the operators in the fishery on behalf of the Commonwealth in accordance with current government policy. Under this policy, AFMA recovers from the operators in the fishery the costs of management related to the 1997198 financial year, such as the development of specific management arrangements and permit conditions and arranging for observers to be aboard the boats operating in the fishery. A separate levy for the 1998199 financial year will be set at a later date.
The Regulations set the amount of levy payable for a fishing permit in the fishery at $40,370, for a fishing permit in force in the period 21 April 1998 to 6 November 1998 (inclusive). The levy is payable on 28 July 1998 or within 28 days of the invoice date for the levy, whichever is the later.
The amount of levy set for the fishery is significantly higher than for most other fisheries managed by AFMA on behalf of the Commonwealth, primarily because only two operators have been granted a permit to operate in the fishery. While management costs for the fishery have been kept to a minimum, there are a number of high-cost items included in the costs of managing the fishery. These include:
* staff salary costs which are particularly high because of the need to develop management arrangements and permit conditions for the fishery, involving consultation with a broad range of interested parties; and
* the costs associated with the placement of observers on board the boats used by the operators in the fishery at all times, required to ensure collection of necessary data to develop appropriate long term management arrangements for the fishery beyond 2000, and because of the remote location of the fishery (4,000 kilometres south-west of Perth).
Details of regulation 3, which concerns the HIMI Fishery, are set out below:
Regulation 3 inserts a new Part 5A into the principal Regulations:
* New regulation 5A.1 provides for the definition of a term used in Part 5A of the Regulations;
* New regulation 5A.2 specifies the amount of levy payable for a fishing permit in force in the fishery in the period from 21 April to 6 November 1998 (inclusive); and.
* New regulation 5A.3 provides for when the levy is due and payable.
South Tasman Rise Fishery
The Regulations impose levy in respect of the South Tasman Rise Fishery (the fishery), a new fishery, recently established by AFMA. The fishery comprises an area of waters in the Tasman Sea adjacent to the Australian Fishing Zone. Earlier this year, the governments of Australia and New Zealand reached an understanding in relation to fisheries research and management in this area, in recognition, in particular, of the urgent need to establish conservation and management measures with respect to orange roughy stocks in the South Tasman Rise area. The understanding contemplated the development of fisheries management arrangements by AFMA for Australian operators in the South Tasman Rise area, and, in particular, the setting for the 1998/99 fishing year of total allowable catch of 1000 tonnes of orange roughy by Australian operators in the fishery.
The Regulations would set levy payable in the fishery for the quantity of orange roughy taken under the permit and landed in Australia in the period from 5 March to 31 August 1998 (inclusive) at 10 cents per kilogram. A separate levy for the period 1 September 1998 to 28 February 1998 (inclusive) will be set at a later date. Levy would be payable on 28 July 1998 or 28 days after the invoice date for the levy, whichever is the later.
The amount of levy set for the fishery has been set to cover management costs for the fishery, as well as funding for a research program for the fishery, which will aim to provide clear stock structure status and productivity information in relations to orange roughy, with a view to the development of longer term management arrangements for the fishery.
Details of regulation 4, which concerns the South Tasman Rise Fishery, are set out below:
Regulation 4 inserts a new Part 15A into the Principal Regulations:
* New regulation 15A.1 provides for definitions of terms used in Part 1 SA of the Regulations;
* New regulation 15A.2 specifies the amounts of levy payable for each kilogram of orange roughy taken in the fishery and landed in the period from 5 March to 31 August 1998; and
* New regulation 15A.3 provides for when the levy is due and payable.