RightsBased Fisheries Management and the Emerging Ecosystem Approach

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Rights-Based Fisheries Management and the
Emerging Ecosystem Approach

• Alison Rieser
• University of Maine School of Law

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the two most common prescriptions for fisheries
management

• Create secure access rights so that fishermen
  have appropriate incentives
• Manage fisheries on an ecosystem basis
• How compatible are these prescriptions?
• What is the experience of management regimes
  that attempt to follow both?

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Overview

• The relationship of rights-based management to an
  ecosystem approach is largely unexamined in the
  literature.
• Two nations that were among the earliest adopters
  of ITQs are now both working to achieve an
  ecosystem approach, but are progressing at very
  different rates.

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Findings from case studies

• The evidence from New Zealand and Australia
  suggests that whether rights-based management
  will enhance or impede progress toward an
  ecosystem approach depends on the larger
  institutional framework in which the RBM occurs.
• When RBM is used as a step toward an
  institutional model of fisheries self-regulation,
  the tool is stretched beyond its fishery-specific
  economic goal of rationalizing competition.
  Without a strong institutional structure to
  protect public goods in the oceans, this use
  seems to increase the risk that RBM will impede
  progress toward an ecosystem approach.

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I. Prescriptions for fisheries reform

• Domestic -- U.S. Commission on Ocean Policy
  (2004) preliminary report recommends greater use
  of secure fishing rights (dedicated access
  privileges) and the management of oceans on an
  ecosystems basis (charging fees for exclusive
  access and use to support ESBM)
• Intergovernmental FAO Reykjavik Declaration and
  Code of Conduct for Responsible Fisheries
  technical guidelines for an ecosystems approach
  (2003)

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FAO and an Ecosystem Approach

• Reykjavik Conference on Responsible Fisheries in
  the Marine Environment, Oct. 2001
• called on FAO to develop technical guidelines on
  best practices for introducing ecosystem
  considerations into fisheries management
• Expert Consultation on Ecosystem-based Fisheries
  Management, Sept. 2002 (17 experts from 15
  countries) developed guidelines

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FAO Expert Consultation

• ecosystem approach to fisheries (EAF) is the
  preferred term
• Purpose The purpose of an EAF is to plan,
  develop, and manage fisheries in a manner that
  addresses the multiplicity of societal needs and
  desires, without jeopardizing the options for
  future generations to benefit from a full range
  of goods and services provided by marine
  ecosystems.

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FAOs Definition of EAF

• An ecosystem approach to fisheries strives to
  balance diverse societal objectives, by taking
  into account the knowledge and uncertainties
  about biotic, abiotic, and human components of
  ecosystems and their interactions and applying an
  integrated approach to fisheries within
  ecologically meaningful boundaries.

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II. Rights-based management vs. Ecosystem-based
mgt

• Rights based management is usually a tool of
  single-species management
• Objectives are usually stock-specific
• Minimum spawning biomass
• Target fishing mortality rate
• Goal is sustainable yield achieved through a
  Total Allowable Catch
• Data collected and monitored are fishery-specific
• Ecosystem role of exploited species is reflected
  only in assumed rate of natural mortality
• Environmental impacts are addressed through other
  measures
• Gear restrictions
• Area closures

• Objectives are with respect to the overall
  ecosystem (higher order)
• Goal is ecological sustainability or ecosystem
  integrity so metrics are different
• Environmental impacts of fishing are a central
  focus not an add-on
• In situ uses and values of fish populations are
  measured in more than natural mortality
• Monitoring data collection are ecosystem-wide

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Another key difference stakeholders and values

• Direct users of fish
• Commercial fishermen
• Recreational fishermen
• Customary fisheries

• no-take users of fish and marine environments
• Indirect users
• Non-use values
• Bequest value
• existence value

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III. Institutional framework

• Both RBM and EBM are policy tools that cannot be
  evaluated in isolation from the kind of
  institutional framework in which they are used
• Legislation and jurisdictional arrangement
  creates this framework
• ITQs, in particular, are not static policy tool,
  but reflect an institutional change that
  profoundly influences the regulated and
  regulatory community far beyond the original
  natural resource management goals (Yandle, 2003).

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Case Studies

• New Zealand
• RBM regime moving toward self-regulation by quota
  owners
• Emergence of other rights claimants after RBM
  regime created
• marine environment mgt. objectives now being
  developed by Ministry of Fisheries in negotiation
  with quota owning companies
• Biodiversity protection through marine reserves
  is being challenged
• Australia
• RBM regime uses statutory fishing rights and
  licenses created by state and Commonwealth
  fisheries agencies
• Devolution to an industry-centered mgt authority
• accountable to Ministry for Environment for
  ecosystem sustainability
• National oceans policy and marine biodiversity
  initiatives are moving forward and fishing rights
  are being integrated into regional plans

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New Zealands rights-based fisheries management
regime

• Phases of development
• 1986 Establishment of quota management system
  (QMS)
• TAC, TACC, ITQs (grand-parented quota
  buybacks rights in perpetuity to access
  absolute tonnage)
• 1990 Conversion to share of the TACC
• Enlargement of QMS to all commercial species
  cost recovery
• Mid-1990s Devolution to quota owning companies
  of
• administrative services
• fishery management functions
• 1999 Environmental management strategy and
  integration with ocean policy framework

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Emergence of other claims of right and title

• Creation of ITQs for commercial fishermen in
  1980s led to Maori fishing rights claims under
  Treaty of Waitangi QMS created the basis for
  settlement in 1992 (50 ownership of Sealords Ltd
  and 20 of future ITQs)
• Recreational and customary fishing are recognized
  as loosely defined allowances set by Minister
  from the TAC (courts have held that Minister is
  not required to give preference to either
  recreational or commercial sectors)
• creation of recreational property rights and
  fixed proportional share of the TAC is now under
  discussion

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Co-management in NZ

• Quota owning companies (QOCs) emerged after cost
  recovery adopted to ensure funds were used
  effectively
• QOCs have begun to develop management plans for
  their fisheries
• Negotiate with other fishery stakeholders
• Recreational fisheries
• Customary
• Environmental NGOs

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Environmental benefits of the QMS?

• Challenges Scallop Enhancement Companys Southern
  Scallop Fishery Management Plan
• Southeast Finfish Mgt Co.s Commercial Net Set
  Fishers Voluntary Code of Practice to reduce
  interactions with Hectors dolphin
• New Zealand Hoki Marine Stewardship Council
  certification in 2001
• Rock Lobster Council reports lack of clear
  property rights of other stakeholders reduces
  quota owners incentives to conserve

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New Zealand marine biodiversity and environmental
policies

• Fisheries Act 1996 requires Minister to ensure
  environmental sustainability maintain
  biodiversity of marine environment
• Minister of Fisheries makes sustainability
  decisions at beginning of fishing season in
  consultation with quota owners

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NZ Marine Reserves

• NZ pioneered marine reserve concept in 1971 (for
  scientific research)
• 18 marine reserves protect species in 7 of NZ
  territorial waters (99 is in 2 large reserves
  around the Kermedec and Auckland Islands)
• New legislation to expand to EEZ and for
  biodiversity conservation is under review

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Quota owners opposition to marine reserves
legislation

• NZ Seafood Industry Council (umbrella
  organization of all QOCs) argues it would promote
  only piecemeal protection of biodiversity
  arbitrary goal of 10 by 2010
• establishment of no-take reserves will have
  significantly adverse effects on the industry and
  the f mgt regime, reallocating coastal space from
  extractive uses to non-extractive uses (from
  fishing to tourism)
• Advocates a least cost approach to protection and
  adjustment assistance or compensation
• Encouraging Maori and marine farmers to oppose
  bill

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Effects of RBM on ESBM in NZ?

• ITQs in combination with cost recovery and
  devolution may be distorting the perceived
  legitimacy of quota owners relative to other
  non-extractive values and uses of marine
  ecosystems non-extractive users feel
  marginalized (Wallace and Weeber, 2003)
• Un-captured resource rents are being used for
  stock-related improvements but not protection of
  ecosystem function and integrity quite
  vociferous opposition to biodiversity protection
  efforts
• QOCs seem to have disproportionate access to
  decision-making and a louder voice in broader
  policy-making about oceans

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Australias rights-based fisheries management

• ITQs created for bluefin tuna in 1984 and for
  Southeast finfish in 1991 tradable effort units
  for n. prawn fishery in 1995
• 1991 Fisheries Act created an independent agency,
  Australian Fisheries Mgt Authority (AFMA), to
  manage Commonwealth fisheries
• States territories manage within 3 n. miles and
  have created ITQs for abalone, rock lobster,
  pearls
• 26 of total landings by weight are under ITQs

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Legal nature of fishing entitlements under
Australian law

• Legislation authorizing ITQs does not refer to
  them as property
• statutory fishing right is not perpetual
  limited to term of the FMP
• Courts have found entitlements to be more like
  permits than property rights

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Impact of commercial fishing rights on
non-commercial sectors

• Customary fishing rights have been recognized by
  courts
• Access rights for recreational fishing have not
  been defined and may be indirectly eroded by
  increased definition of commercial statutory
  fishing rights and devolution of mgt
• Co-mgt bodies at state and Commonwealth are
  addressing conflicts anglers are considering
  more formal definition of access rights

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Australias legislative basis for EBM

• Fisheries Management Act 1991, the enabling
  legislation for the AFMA, was amended in 1996 to
  include the following objective
• Ensuring that the exploitation of fisheries
  resources is conducted in a manner consistent
  with the principles of ecologically sustainable
  development and the exercise of the precautionary
  principle, in particular the need to have regard
  to the impact of fishing activities on non-target
  species and the long term sustainability of the
  marine environment.

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Environment Protection and Biodiversity
Conservation Act 1999

• Omnibus environmental, wildlife, and conservation
  law
• Created several new requirements for Commonwealth
  and state-managed fisheries
• AFMA must report annually on how its actions and
  outcomes meet the principles of ecologically
  sustainable development and on its efforts to
  minimize any adverse impacts of its actions on
  the environment
• AFMA submits strategic assessment reports for
  each fishery using Guidelines for Ecologically
  Sustainable Fisheries

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Dept of Environment and Heritages role in
fisheries mgt

• Certifies all Commonwealth and state-managed
  fisheries for ecological sustainability
• May condition certification on achieving
  measurable improvements in sustainability
• Cannot be overruled by AFMA or Minister of
  Fisheries

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Australias oceans policy

• 1975 Great Barrier Reef Marine Park Act
• 1999 Commonwealth Government introduces National
  Ocean Policy
• CW makes commitment to a National Representative
  System of Marine Protected Areas (MPAs)
• Divides oceans into marine bio-regions (LMEs) and
  sets policies for development of regional plans

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Australias marine regions
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Commonwealth Governments Marine Protected Areas
Program

• 1999 EPBC Act codifies IUCN categories and
  criteria
• Primary objective protection of marine
  biodiversity a public good
• National Representative System of MPAs (via
  regional marine planning process)
• Areas of known outstanding conservation
  significance
• Statutory process for declaration by Minister for
  Environment Heritage

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Policy on MPAs and Displaced Fishing (DEH, 2004)

• Acknowledges that MPA/zone declarations may
  displace fishing effort and add to the effort in
  the remainder of the fishery
• Where this creates additional requirements for
  effort reduction beyond that needed to achieve
  fisheries management objectives, financial
  adjustment assistance for fishermen or
  communities will be considered, even though not
  required by statute or Constitution
• Any structural adjustment scheme will be designed
  to avoid distorting the orderly operation of the
  market for fishing access entitlements

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Australias Southern and Eastern Scalefish
Shark FMP 2003

• First new FMP that sets stage for mgt on an
  ecosystem basis and for integration of fishing
  rights and mgt with SE marine regional plan
• Combines 4 fisheries previously managed under
  separate plans and ITQ programs under a common
  set of mgt objectives
• Allows quota trading between the 4 fisheries to
  continue
• Allows common basis for spatial mgt measures that
  affect more than one fishery and for integrating
  these into MPA process
• FMP was certified by the Minister of Environment
  Heritage under Guidelines for Ecologically
  Sustainable Management of Fisheries

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Envt Australias conditions to meet ecological
sustainability criteria

• Within 3 yrs, AFMA will implement mgt responses
  identified in the ecological risk assessment,
  taking into account known fishing impacts on
• Vulnerable and overfished species,
• Listed threatened species, species with low
  productivity,
• Key species in the food chain such as squid
  jack mackerel,
• Areas of localized depletion,
• Cumulative gear impacts across the life cycles of
  species in the SESS fisheries and adjoining
  fisheries,
• Species with increasing levels, or significant
  potential for increased levels, of catch
  landings.

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Conditions, contd.

• AFMA will develop and implement within 3 years a
  system of strategic spatial and temporal closures
  that will take account of impacts of fishing on
• Species and populations at high risk,
• The recovery of overfished stocks,
• Benthic habitats and associated impacts on
  productivity of quota and non-quota species,
• Species or habitats fished at particular depth
  ranges by particular gear types

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Australia case study summary

• Structure of AFMA provides for co-management by
  fishing industry with accountability, allowing
  Govt to focus on protecting public goods in the
  marine environment
• Govt/AFMA policy is to create a system of secure
  and tradable fisheries access entitlements
  allowing fishermen to make autonomous
  market-based adjustments to changes in fisheries
  mgt arrangements, avoiding property rights
  rhetoric
• States and territories are laboratories for RBM
  and ESBM innovations

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Conclusions

• The evidence from New Zealand and Australia
  suggests that whether rights-based management
  will enhance or impede progress toward an
  ecosystem approach depends on the larger
  institutional framework in which the RBM system
  occurs.
• Using RBM beyond its fishery-specific economic
  goal of rationalizing competition, as a step
  toward fisheries self-regulation, seems to
  increase the risk that RBM will impede adoption
  of an ecosystem approach.

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Thank you for your kind attention.