Northern prawn fishery
Management Advisory Committee
(NORMAC) 76
NORMAC 76 Draft Minutes
Brisbane Novotel Hotel
28th November 2012
Attendance
NORMAC
Stuart Richey Chairman
Steve Bolton AFMA member
Eddie Hegerl Conservation Member
Ian Knuckey Scientific Member/RAG Chair
David Carter Industry Member
Norm Peovitis Industry Member
Greg Albert Industry Member
Ron Earle Industry Member
Arthur Raptis Industry Member
Eddie Jebreen State Government Permanent Observer
Annie Jarrett Executive Officer
Observers/Presenters
Nick Rayns AFMA
Fiona Hill AFMA
Brodie Macdonald AFMA
Rik Buckworth CSIRO
Emma Lawrence CSIRO (until 12.30)
Phil Robson Industry
Andy Prendergast Industry
Mike O’Brien Industry
Matt Barwick NPFI
Item 1. Chairman’s Opening Remarks/Adoption of Agenda
The Chairman opened the meeting at 8.30 am and welcomed all attendees, including Dr. Nick Rayns (AFMA) and Emma Lawrence (CSIRO). He also welcomed Arthur Raptis to his first meeting as a NORMAC member. The Chairman congratulated the NPF Industry on becoming MSC certified and noted the significant contributions by NPF, AFMA Management and CSIRO to the assessment process. The Chairman called for comments on the agenda and other business items. Mr. Jebreen requested that an update on the review of management arrangements for the Queensland trawl fishery be added to the agenda under ‘Other Business’. The amended agenda was adopted as proposed.
Resolution:
NORMAC adopts the amended agenda as proposed
Item 2. Conflict of Interests/ Declarations
The Chairman drew attention to the change in the way that ‘conflict of interest’ declarations are to be handled by MACs and RAGs in the future. It was noted that in the past NORMAC had handled conflicts of interest extremely well however the new approach would better reflect the approach that the AFMA Commission and the FRDC Board have used over a number of years. Mr. Richey advised that being an expertise-based committee, it is likely that members have conflicts of some kind. However the important thing is to recognise when a conflict of interest would actually assist or hinder a member more than anyone else in the fishery. It was noted that unless members have a disproportional interest to anyone else, the interest is more generic in nature and unlikely to be a ‘conflict’ of interest. It was noted that the conflict of interest provisions apply to all MAC members, not just industry MAC members.
The MAC noted concerns that the requirement to leave the room at the start of each agenda item whilst the nature of the conflict of interest is discussed is quite specific and makes the meeting unworkable. The MAC agreed that members would only be required to leave the room if it was agreed there was a specific conflict in relation to a specific item.
The MAC noted advice that AFMA has recommended to the Borthwick review that a less stringent approach to the conflict of interest provisions should be implemented for MACs and RAGs given that they are advisory, not decision-making, bodies.
Declarations:
The specific commercial interests of the industry members of NORMAC were recorded as follows:
David Carter: CEO of a company holding 10 Class B SFRs and 7429 gear SFRs. Employed by a company that has a diverse range of interests but does not personally own any NPF SFRs.
Norm Peovitis: Has a direct pecuniary interests as the owner of 4 B Class SFRs and 2568 gear SFRs
Greg Albert: Has a direct pecuniary interest as the holder of 2 B Class SFRs and 1233 gear SFRs
Arthur Raptis: Has a direct pecuniary interest as the holder in 11 Class B’s and 7800 gear SFRs
Ron Earle Has a direct pecuniary interests 3 B SFR and 2200 gear SFRs, direct of NPFI industry Pty Ltd, involved in marketing and buying of NPF product
Stuart Richey No longer an FRDC director, Chairman of Torres Strait prawn MAC
Eddie Jebreen State Government representative, responsible for review of management arrangements for the Qld East Coast trawl fishery. No pecuniary interest in this fishery but a professional interest in the outcome of the discussions on future management arrangements
Ian Knuckey Remunerated independent chair of NPRAG, has submitted a tender to manage the NPF observer program. May or may not have a conflict in any discussions on the scientific observer program, subject to the nature of the discussions
Steve Bolton Employed by AFMA as the Senior Fisheries Manager – no financial interests in the fishery
Rik Buckworth Scientist with CSIRO; research interests; has a financial interest in a company which makes hooks for genetic tagging – not relevant to the NPF; no financial interest in the fishery
Eddie Hegerl: no financial interests in the NPF, small consulting company which develops ??; non-pecuniary interests in relation to the MSC
The MAC noted that the (unofficial) industry advisers have generic interests as employees of companies
Annie Jarrett: remunerated EO of NORMAC; remunerated CEO of NPFI; non-pecuniary interests in relation to the MSC; no pecuniary interests in NPF SFRs
Nick Rayns employee of AFMA; no pecuniary interests in the NPF
Fiona Hill employee of AFMA; no pecuniary interests in the NPF
Item 3. Correspondence
The MAC received the report on correspondence sent and received since the last meeting.
Resolution:
NORMAC notes the correspondence
Item 4. Draft Minutes of NORMAC 75
The MAC noted that the draft minutes of NORMAC 75 had been approved out of session and were on the AFMA website. This is in accordance with AFMA’s revised policy to have draft minutes out within 10 working days and posted on the AFMA website within 20 working days of the meeting
Resolution:
NORMAC reconfirms the out-of-session approval of the draft minutes of NORMAC 75
Item 5. Action Arising from NORMAC 75
NORMAC discussed the Action Arising, noting that a number of items had been finalized since the last meeting and several were for discussion at this meeting. Eddie Hegerl advised the MAC that he had recently attended the MSC Stakeholder Council meeting and that the MSC staff and MSC Stakeholder Council members were highly complimentary about the NPF achieving MSC certification, and in particular, about the scores achieved. This was considered a remarkable achievement for a tropical prawn fishery.
Resolution:
NORMAC notes the Action Arising from NORMAC 75
Item 6. NPF Industry Report (verbal)
Catches: It had been a somewhat challenging tiger prawn season resulting in changes in fishing patterns with industry working a lot of non-traditional grounds. Overall catches were about 25% larger than during the 2011 tiger prawn season. Banana prawn catches were down in the second half compared with previous years. JBG banana prawn catches were a bit slower than industry would have liked. This resulted in more trawlers working in the Gulf of Carpentaria during the tiger prawn season.
Marketing: The market has been somewhat stronger with marginally higher prices than last year. The domestic market was also somewhat stronger for tiger prawns. The fishery is still quite profitable and industry is hopeful that MSC certification may result in increased price and demand for NPF MSC certified prawns.
NPFI has also agreed to partner with the Seafood CRC, the Australian Council of Prawn Fisheries and the Australian Prawn Farmers Association to implement a generic “Australian Prawn’ marketing campaign of Australian wild caught and aquaculture prawns. The campaign will be aimed at increasing consumer demand and improved prices for Australian prawns.
Costs: Fuel costs are about the same as last season.
The changes to the carbon pricing and the refrigerant gas legislation are a real concern and have the potential to jeopardise industry profitability. Australian suppliers are charging approximately $100 per kg for R22 whereas this gas is available for approximately $5 per kg in Malaysia. This highlights the fact that government does not fully appreciate the impacts on industry of its carbon pricing policy.
The MAC noted that under the Montreal protocol R22 will be phased out by 2018 and imports to Australia will stop by 2014 which will create real challenges for industry . R22 is very efficient – other gases are less efficient and it is necessary to run refrigeration for longer to achieve the same result with a corresponding increase in e diesel . Use of drop-in gases results in the application of a carbon tax. Industry is not allowed to use hydrocarbons because of the safety/ danger factors. Changing the refrigeration systems over to accommodate new gases will cost industry in the order of $200,000 to $250,000 to retro-fit each boat. This is nearly half the current value of the trawlers themselves. The Commission needs to be made aware of this problem and the potential impacts on the profitability of the fleet.
Other: Discussion took place on the way the tiger prawn bio-economic model is currently performing and whether industry was observing any changes in the fishery.
Industry members advised that it was not unusual to experience lower tiger prawn catches after large wet seasons and the fishery has experienced three big wet seasons in a row. Industry do not believe there are problems with tiger stocks and feel that the fishery is reacting to environmental cycles. The increases in 2012 tiger prawn season catches compared to 2011 is encouraging.
License Trading: There are SFRs on the market however no trading is currently occurring.
Item 7. AFMA Management Report
The MAC received a report from AFMA Management on a number of issues relating to the NPF including advice on the NPF Management Plan public consultation process, NPRAG activities, the Commonwealth’s Marine Reserve Network (MRN) , compliance activities in the NPF, an update on the tender process for the NPF Scientific Observer program and AFMA’s Fee for Service policy.
Norm Peovitis declared a conflict in this compliance report. Ian Knuckey declared an interest in the update on the scientific observer program tender. The MAC agreed that there were no specific conflicts on either issues as the reports on compliance and the Scientific Observer tender process were for information only.
The MAC noted that AFMA had provided a quarterly financial report to CFA on AFMA expenditure for the first quarter of the 2012/13 financial year and that further explanation of NPF specific expenditure would be provided to NPFI.
The MAC was advised that the tender process on NPF scientific observer program was in progress with tenders received and a probity procurement process in place and the tender evaluation underway
NORMAC noted that AFMA has recently reviewed the way it recovers its licensing and data related service costs which resulted in a Fee for Service Policy being developed. The Fee for Service policy seeks to provide enhanced service through access to cost effective electronic service options, ensure fees accurately reflect the costs of services and to reinforce the user-pays principle.
E-Logs, e-monitoring and online licensing and quota management services all offer opportunities to reduce costs and increase efficiencies (subject to the level of take-up by industry) however alternatives such as paper-based logbooks and licensing applications, and onboard observers will continue to be available. It was noted that the new fee for service arrangements will apply from 1 July 2013.
The MAC noted that US accreditation of the NPF to export product to the US was renewed earlier in the year. A delegation from the US authorities visited Australia during the mid-year closure and undertook comprehensive audits of various prawn fisheries including the NPF. NORMAC noted that following the visit by the US delegation, NPFI initiated a proactive communication strategy targeted at improving compliance with TED regulations, including distribution of waterproof flyers of approved TED designs and specifications to all NPF boats. The MAC noted that NPFI will circulate the formal report from the US delegation on the findings of the visit to all MAC members.
The MAC noted the compliance report, noting that one alleged infringement is currently under investigation.
NORMAC noted that discussions have been ongoing between AFMA and NPFI regarding extension to improve the performance BRDs and in particular, of Witches Hat BRD enhancers. Feedback from some industry members suggests there may be value in exploring refinements to increase durability and effectiveness. It is proposed to undertake flume tank trials in February 2013 for this purpose, with a view to implementation of any new devices during the 2013 fishing season. The MAC noted that AFMA and NPFI will continue to work together on this project over the coming months.
It was noted that AFMA had deployed a contractor to the NPF during the tiger prawn season to take underwater footage of BRDs to assist in the assessment of BRD performance. AFMA agreed to provide advice to the MAC and NPFI on AFMA’s policy regarding the release of fishery data, including underwater footage. The MAC agreed that AFMA would consult with NPFI regarding any external requests for the release of any NPF fishery data.
The discussion on the Management Plan and the Commonwealth’s Marine Reserve Network are reported under Items 8 and 12.
Resolution:
NORMAC notes the report
Item 8. Update on Quota Management
The MAC noted that there were no differential conflicts of interest under this item and all interests were generic in nature.
NORMAC received an update from AFMA on the process around quota implementation[1] including timelines, responses to SEWPAC on strategic assessment under quota management, amendments to the draft NPF quota Management Plan and updated costings of ITQ management compared with the current budget. AFMA Management agreed to review the costings provided on the Scientific Observer program and to provide additional advise to NORMAC on these costings.
The MAC noted the draft timelines, noting that the public consultation period on the revocation of the NPF Management Plan 1995 would conclude on 7th December 2012. This will require out-of-session consideration of any comments received to the Commission on this matter. The MAC noted that AFMA Management will circulate a proposed timeline for this process.
The MAC noted the changes to the draft quota management plan which had occurred since the last meeting.
The MAC noted that the management arrangements for the white banana prawn fishery in the tiger prawn season had not yet been finalised and are currently not included in the NPF Harvest Strategy under Output Controls.