This note is not part of the regulations, but is intended to indicate their general effect.
These regulations, which come into force on 7 December 2012, prescribe the methodology that an arbitrator appointed under section 186ZO(2) of the Fisheries Act 1996 (the Act) must follow to determine—
whether the aquaculture activities proposed by the holder of a coastal permit, or fishing in relation to which the chief executive of the Ministry for Primary Industries (the chief executive) has made a reservation, is of materially greater value to New Zealand; and
the compensation payable to affected quota owners for the loss in value of affected fishing quota caused by the aquaculture activities authorised by a coastal permit.
Coastal permits granted under Part 6 of the Resource Management Act 1991 authorising aquaculture activities to be undertaken in the coastal marine area are granted subject to an aquaculture decision by the chief executive. An aquaculture decision may include a reservation to the effect that the chief executive is not satisfied that the aquaculture activities authorised by the coastal permit will not have an undue effect on fishing.
If the chief executive makes a reservation, the holder of the coastal permit may seek an aquaculture agreement with the quota owners of commercial fish stocks subject to the reservation. If no agreement is reached, and the coastal permit holder wishes to proceed with the proposed aquaculture activities, the coastal permit holder is required, under section 186ZN of the Act, to pay compensation to affected quota owners.
Under section 186ZO(1) of the Act, the coastal permit holder may request that an arbitrator determine the amount of compensation payable to quota owners. Before determining the compensation payable, the arbitrator must determine, under section 186ZP(2) of the Act, whether the proposed aquaculture activities, or the fishing in relation to which the chief executive has made a reservation, is of materially greater economic value to New Zealand.
Under section 186ZP(6) of the Act, if the arbitrator determines that the fishing is of materially greater economic value, or if the question cannot be decided either way, the arbitrator must not determine the compensation payable to quota owners. If the arbitrator determines that the proposed aquaculture activities are of materially greater economic value, the arbitrator must, under section 186ZQ of the Act, follow the methodology specified in the regulations to determine the compensation payable to quota owners.
Date of notification in Gazette: 8 November 2012.
These regulations are administered by the Ministry for Primary Industries.