Tropical Tuna M a n a g e m e n t Ad vi s o r y C o m m i t t e e ( T T M AC ) CHAIR’S SUMMARY MEETING 4 18 JANUARY 2011 Tropical Tuna MAC (TTMAC) CHAIR: Mr Bill Nagle Date 18 January 2011 Tropical Tuna MAC met in Sydney to finalise its recommendations on Total Allowable Commercial Catches (TACCs) for the Eastern Tuna and Billfish Fishery (ETBF) in expectation of the commencement of quota management in March 2011. The MAC was well attended (Attachment 1). The MAC Chair noted an apology from Mr Edwards (recreational and charter member) and acknowledged his submission on the TACCs. The Committee was pleased Mr Williams (recreational sector) was able to attend to provide recreational input. Apologies were accepted from Mr Jefferies (industry invited participant) and Dr Kerrigan (state invited participant). The MAC Chair noted that Dr Kerrigan (DEEDI) had been unable to attend due to workload issues arising from the Queensland floods. The Chair appreciated the participation of Mr Phil Bolton (I & I NSW) in terms of state perspective. The Committee’s work was also assisted by the participation of industry observers Mr Boxsell, Mr Maoirana and Mr Whan. Mr Nagle, on behalf of the MAC, noted that Ms Trysh Stone (AFMA Senior Manager) would soon be leaving AFMA to take up a senior post with DAFF involving the Rural Communities Network Scheme and climate change policy. Mr Nagle acknowledged Ms Stone’s contribution to Australia’s tuna fisheries over the last 5 years and service to a range of Commonwealth fisheries in her career with AFS and AFMA. MAC members and observers joined Mr Nagle in wishing Ms Stone well in her new role. TACC recommendations for the ETBF The MAC reviewed its recommendations from its October 2010 meeting with regard to: Outcomes of the eighth session of Western Central Pacific Fisheries Commission (WCPFC) in December 2010. CSIRO’s review of the interaction between harvest strategy implementation, RBCCs and conservation measures of the WCPFC in advising and deciding on “starting TACCs” for the fishery. Commercial catches outside the ETBF noting that WCPFC Conservation Measures (including catch limits) would also apply to state managed commercial fisheries with a bycatch of tuna and billfish. Species specific ‘overcatch’ and ‘undercatch’ levels. The Committee noted that the transition from input controls to ITQs was a significant change and accepted industry advice that the initial TACC setting process needed to take into account the financial capacity of the active operators to enter the quota market to secure their current fishing plans. The MAC acknowledged that industry would adjust their holdings and operations over time but were currently faced with very tight margins given the strong Australian dollar and high management costs. The MAC (with one exception) expressed confidence in the operation of the harvest strategies once things settled down under quota. The MAC identified a need for further investigation of how the operation of the harvest strategy could be improved in the situation where catch remained well below the TACC. The Committee recognised that the selection of the starting TACCs was a difficult task and was subject to disagreement about the suitability of the criteria used to generate the initial Recommended Biological Catches (RBCCs)1. The consideration of TACCs for the five quota species revealed common issues as well as species specific considerations. 1 Tropical Tuna RAG recommended (not unanimously) that the criteria period used to determine the starting RBCC commence at the time Catch Disposal Records (CDRs) were implemented (2006). The period was 2006 to 2009. Tropical Tuna MAC Meeting 4 18 January 2011 2 of 8 Common issues Uncertainty about where the stock in the Area of Influence was sitting (biologically) The Committee acknowledged that the absence of accepted stock assessment models had required the development of harvest strategies based on empirical indicators. As noted there was confidence in the use of CPUE and size composition data to monitor stock health over time but the flipside was that not much could be inferred about where the stock was at with respect to BMEY. The MAC had the least trouble agreeing a TACC for Broadbill Swordfish largely because there was greater certainty about its stock status following work by CSIRO and a provisional stock assessment. Conversely the deliberations over a starting TACC for Striped Marlin were exacerbated by the lack of certainty about its stock status. WCPFC obligations The MAC noted that the ETBF (like other international fisheries) had special status under the Commonwealth Harvest Strategy Policy. Where the relevant RFMO has a functioning, scientifically credible decision making process in place to limit effort/catches, the ‘whole of Government position’ will be to support the outcomes of that process. The MAC recognised that the Australian Government had committed to set future TACCs in accordance with Conservation Measures even if these were more conservative than the domestic RBCCs. Members noted that there were no new binding measures as a result of the December 2010 Commission meeting but the Australian delegation anticipated there would be a strong emphasis on measures for Bigeye Tuna and Yellowfin Tuna in 2011. The MAC’s TACC recommendations for Bigeye Tuna and Yellowfin Tuna were consistent with WCPFC specific catch limits (not binding). Trading outlook The MAC noted that a large proportion of the quota would go to inactive concessions including a fair proportion of small holdings to holders of minor line permits. Industry advised that most operators realised they would have to enter the market to secure Striped Marlin quota to cover bycatch of that species at the levels of TACCs previously recommended and a significant number would have to do the same for Broadbill Swordfish quota to maintain their fishing plans. Industry members envisaged some trouble in the market for Striped Marlin even at the recommended TACC. The MAC recalled that the RAG had settled on the period following the implementation of Catch Disposal Records (CDRs) to determine average annual catches which would inform the initial RBCC settings. Industry however considered that, unless sound biological reasons existed, setting initial TACCs around the average catch level from years which coincided with a reduction in fleet size arising from the recent structural adjustment could be counter-productive and would introduce an unnecessary stimulus for quota trading in difficult economic circumstances. The AFMA Senior Manager noted that AFMA’s experience was that it took some years before quota trading operated smoothly in fisheries after the inception of ITQs. An industry invited participant emphasised that industry had been through a lot of changes in a short time and needed a bit of ‘wiggle room’ while they got accustomed to quota management. Research quota The MAC reviewed the likelihood of the research projects underway (or approved) needing to cover any mortalities in the course of their fieldwork with quota. The Committee knew of no pressing need for research quota and were comfortable with advice from the scientific member that any contingencies in the near future could be managed through commercial arrangements with quota holders. Recommendation That AFMA set research quota at zero for all five quota species for 2011/12 fishing season. Tropical Tuna MAC Meeting 4 18 January 2011 3 of 8 TACC Recommendations (summary of recommendations provide in Table 1) Broadbill Swordfish The MAC noted there was more certainty about mixing for Broadbill Swordfish than for the tunas. Members also recalled that assessments had shown evidence of overfishing of swordfish in the ETBF and noted that the implementation of management measures had led to a subsequent improvement in the stock. Members noted that trends from empirical data were generally consistent with model projections and industry observations. The MAC was confident that 1,550 tonnes (t) (whole weight) was a robust starting point for a commercial TACC. The MAC reaffirmed their previous TACC recommendation of 1,550 t (whole weight) and noted that this season’s landings (CDR data) would be converted to whole weight using the existing conversion ratio (1.25 head and gutted2). The MAC identified a need to implement more accurate conversion ratios in season 2012/13 and agreed to oversee this transition in the lead-up to next season. The MAC supported undercatch and overcatch levels of 10% for Broadbill Swordfish. The MAC noted that the recommended TACC was well under the WCPFC catch limit for swordfish in waters south of latitude 20o south so there was no need to reduce the TACC to provide a buffer for state catches. Bigeye Tuna The MAC recognised that the previous recommendation of a 2,000 t TACC for Bigeye Tuna caused some consternation, as unlike the other species, catches had not approached the recommended TACC (catches had not exceeded 1,500 t). The AFMA Senior Manager noted that Australia was limited to 2,000 t under a WCPC Conservation Measure and given Australia’s commitment to abide by conservation measures was comfortable with recommending a TACC of this magnitude. The MAC noted that Australia would implement a national catch level for Bigeye Tuna consistent with any future Conservation measures adopted by the WCPFC. The Conservation member considered that the 2,000 t cap was more of an exemption threshold and that the intent of the measure was to encourage states to reduce catches to their average annual catch (2001 to 2004). Given recent trends in the assessments confirming concern over Bigeye Tuna the Conservation member reserved his support for a TACC based on average catches (at a level near the RBCC – 734 t). The Scientific member supported a recommendation around a 2,000 t TACC given the policy settings but strongly recommended that the MAC watch the situation closely as there was a certain inertia in the Harvest Strategy (due to the 10% limit in TAC change) if it was coupled with an initial TACC that was set too high. The member indicated that he would be more comfortable with the higher TACCs if the MAC agreed that, in the event of consistent negative signals from the harvest strategy for Bigeye Tuna, then any reductions would be taken from the realised catch, rather than the TACC. The MAC noted that the current 2,000 t cap applied to all domestic commercial landings of Bigeye Tuna by Australian vessels in the Convention Area. The AFMA Senior Manager advised that the Tuna Section had only recently requested tuna catch data from Tasmania, New South Wales and Queensland to ascertain the level of state catches. Noting flood delays had affected Queensland DEEDI’s ability to respond the MAC agreed to reduce its TACC recommendation for Bigeye Tuna by 2.5%, which equated to 1,950 t. The MAC committed to review this percentage after analysing state catch data and before the 2012/13 season. The MAC (with the exception of the Conservation member) endorsed a TACC of 1,950 t for Bigeye Tuna. The MAC noted that catches were unlikely to approach the TACC and agreed that no undercatch and overcatch provisions were needed for the 2011/12 season. 2 Head and gutted is the most common treatment, ratios exist for other processing styles Tropical Tuna MAC Meeting 4 18 January 2011 4 of 8 Albacore Tuna The MAC noted catches of Albacore by the Japanese fleet and domestic fleet had reached the level of the recommended TACC and recent CPUE trends were positive. The MAC was comfortable with a 3,000 t TACC noting it gave industry some room to move but was sufficiently close to recent average catches that the harvest strategy should pick up any impacts in size composition data and CPUE. The MAC noted that Japanese catches under access arrangements only referred to retained catch and that observer data indicated Albacore were often high graded to leave freezer room for more valuable tunas. The Committee noted that there were no WCPFC limits in force for Albacore. The MAC noted that Albacore catches were unlikely to approach the TACC and agreed that no undercatch and overcatch provisions were needed for the 2011/12 season. Yellowfin Tuna The MAC noted that Australia was limited to 2,656 t under a WCPC Conservation Measure although this only applied to longline caught fish. The MAC recognised this figure was derived from Australia’s average catch between 2001 and 2004 and was relatively comfortable recommending a TACC around this level. The Recreational invited observer noted that the recreational and charter sectors remained concerned about the risk of local depletion arising from TACCs above the RBCCs but were prepared to support the TACC more broadly. The MAC agreed to reduce its TACC recommendation for Yellowfin Tuna by 2.5% to 2,590 t to ensure that a formal allowance for state commercial catches existed within the WCPFC cap on Yellowfin Tuna. The MAC noted that the state commercial catch of Yellowfin Tuna (while restrained by OCS agreed trip limits) was likely to be more significant than Bigeye Tuna and committed to review this percentage after analysing state catch data before the 2012/13 season. Mr Bolton (I&I NSW) advised that Fisheries was currently compiling the catch data and expected most of the tuna catch to come from the Ocean Trap and Line Sector which operated out to 80 nautical miles. The MAC noted that catches of Yellowfin Tuna were unlikely to approach the TACC and agreed that no undercatch and overcatch provisions were needed for the 2011/12 season. Striped Marlin The Committee noted that only one preliminary stock assessment had been undertaken on Striped Marlin in the southwest Pacific which indicated that it had been fished down by the Japanese fleet in the 1970s and 1980s and had not rebuilt significantly since then. The MAC expressed general disappointment that recent research proposals for an updated stock assessment had not been supported as the lack of certainty about where the stock was compared to the Harvest Strategy reference points had confounded the selection of a suitable starting TACC. The absence of an agreed resource sharing arrangement also made the TACC setting discussion more difficult. Members noted that currently this was the only species where the recreational catch/mortality is at a level comparable to the commercial take. The setting of a TACC near the RBCC was seen by the industry as imposing the burden of precaution on the commercial sector whereas a TACC substantially above the RBCC was seen by the recreational sector as diminishing their access right and detrimental to reasonable strike rates. The Scientific member confirmed that the recreational catches are taken into account in the HS implicitly. Given the highly migratory nature of the target species and the large overlap in the commercial and recreational fisheries, it is reasonable to expect that the impacts of the recreational fishery will be reflected in the commercial CPUE and size data used as inputs into the HS. Hence the RBCCs reflect the overall impact of all sources of mortality. Tropical Tuna MAC Meeting 4 18 January 2011 5 of 8 The industry members and observers reiterated concerns that even at with a 400 t TACC they foresaw Striped Marlin becoming the ‘Achilles heel’ in the context of a multi-species fishery. Their main concern was that as quota was used up and trading ground to a halt that it had the potential to drive management responses which could impede operations for more abundant species. Industry members and observers regarded AFMA’s commitment to live and vigorous release as helpful. The Committee spent some time balancing their TACC recommendation with the level of under and overcatch percentages. The MAC recognised the flexibility ‘overs and unders’ provided on an individual operator basis and considered these allowances to be particularly valuable with regard to Striped Marlin whose catchability was characterised by significant interannual variability. There was some reluctance from AFMA and the recreational participants to endorse a 10% level at 400t with suggestions that 5% was more appropriate at TACCs above the RBCC. An industry invited participant observed that AFMA’s cost effective management objective would be best served by a 10% level as it was somewhat questionable if the benefit of a 5% allowance justified the work needed to administer these mechanisms. The scientific member indicated he was more comfortable with a realistic TACC and the flexibility provided by over and undercatch which reduced the incentive to discard (particularly dead fish) as it was very important that data on what was being killed was reported accurately. The MAC unanimously supported an adjusted TACC of 390 t with a 10% over and undercatch for 2011/12. The MAC noted that no discount was needed for state commercial landings as there was presently no WCPFC limit in place for Striped Marlin in the south west Pacific. Table 1. Summary TACC Recommendations for 2011/12 Over and under catch percentage % 0 Species Albacore Tuna TACC 3,000 Bigeye Tuna 1,950 0 50 0 390 0 0 10 Broadbill Swordfish 1,550 0 0 10 Yellowfin Tuna 2,590 0 66 0 Striped Marlin 1 1 Tonnes (whole weight) Research TACC Allowance State catch 0 0 a conversion ratio of 1.25 applies to swordfish for this season. Strategic recommendation to Tropical Tuna RAG That Tropical Tuna RAG investigate the operation of the harvest strategies for those species where catches remain significantly below the TACCs in the short to medium term. Quota reconciliation arrangements The MAC noted AFMA’s view that regular reconciliations assisted the operation of the quota market. The Committee considered a number of options: by the 15th day of the following month (somewhat like a credit card); or by 14 days from the date of landing (consistent with SBT). The MAC noted that some vessels which undertook longer trips in the fishery and considered a longer period linked to the unload date would be more desirable. Industry members also considered that owner operators would find it easier fulfil their obligations if more time was available. The MAC supported a 28 day reconciliation period noting that it was consistent with a number of other Commonwealth fisheries. Recommendation That AFMA implement a 28 day period from the date of unload for quota reconciliation in the ETBF. Tropical Tuna MAC Meeting 4 18 January 2011 6 of 8 SFR conditions The MAC noted that AFMA would shortly seek the MAC’s out of session feedback on draft SFR conditions which will largely rollover existing conditions on current entitlements (seabird mitigation, SBT and NBT obligations etc). Action - AFMA to circulate draft SFR conditions to TTMAC. Advice on Capital Gains Tax (CGT) The MAC welcomed confirmation from the Senior Manager to secure government funds (capped) to obtain independent advice on the CGT implications of the change in entitlements from permits to longline SFRs and then to quota SFRs for the five species. The MAC recognised that operators were uncertain about the tax implications they might face as a result of having to adjust their holdings to suit their operations and circumstances. Members realised that this advice would need to be generic in nature and agreed that concession holders should still seek their own independent advice on taxation matters. Action - Industry Liaison Officer to procure independent advice on CGT in relation to the implementation of ITQ SFRs in the ETBF (in consultation with AFMA). Strategic Assessment The MAC reviewed the draft conditions of the Wildlife Trade Operation (WTO) for the ETBF which is expected to provide export approval while a new strategic assessment is undertaken to take into account the move to quota management. The Committee provide feedback on the following conditions: Condition 4 Balance of Electronic monitoring and observers AFMA needs to clarify its program for cameras and the apparent requirements to place observers on boats given industry understanding that fitting of cameras removed the need for observers except for ‘special projects’ i.e. tagging. Condition 5 Implement measures to ensure take of shark is sustainable in the ETBF The MAC supported AFMA’s position that the Ecological Risk Assessment (ERA) and Management (ERM) be formally recognised under this condition. The Conservation member noted that SEWPaC and AFMA needed to ensure this condition was responsive to the WCPFC Shark Assessment and Research Program now being undertaken by Dr Shelley Clarke. Recommendation 4 Improving information collection from the recreational and charter sectors The MAC agreed that this recommendation, which broadly applies to quota species needed to focus on those species where recreational catches were significant (Striped Marlin and Yellowfin Tuna). The MAC including recreational participants emphasised that some balance about the level of precision was needed particularly for species like Swordfish and Bigeye Tuna where the recreational catch was very small. The MAC agreed that resources would be better directed at Striped Marlin, than for example on Albacore, as a better understanding of the recreational impacts on Striped Marlin would assist both assessment work and management responses. Next meeting The MAC agreed to consider the timing of its next meeting out of session. Mr Bill Nagle Tropical Tuna MAC Chair 30 January 2011 Tropical Tuna MAC Meeting 4 18 January 2011 7 of 8 Attendance Members Bill Nagle MAC Chair Campbell Davies (scientific member) Geoff Binns (industry member) Peter Trott (conservation member) Gary Heilmann (industry member) Cathal Farrell (industry invited participant) Paul Williams (industry member) Erica Starling (industry invited participant) Terry Romaro (industry member) Len Olyott (recreational invited participant) Observers Trysh Stone (AFMA Senior Manager) Phil Bolton (I & I NSW) Darci Wallis (AFMA Manager ETBF and WTBF) Jason Boxsell (industry) Grahame A Williams (recreational) Angelo Maoirana (industry) Anthony de Fries (acting executive officer) Adam Whan (industry) Apologies Bill Edwards (recreational and charter member) Brigid Kerrigan (state government invited participant) Brian Jeffriess (industry invited participant) Trent Timmiss (AFMA member) Tropical Tuna MAC Meeting 4 18 January 2011 8 of 8
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