Marine Farming Permit 364

SOP 264 proposes that Marine Farming Permit 364 for the Waikato Communal Area be subject to an expiry date of 31 December 2033 (Part 1, Clause 9A, amending New Section 20A of this Act).

Transitional provision: decisions for interim aquaculture areas

SOP 264 proposes that aquaculture decisions for interim aquaculture areas made after this Bill is passed must be made in accordance with the Act as amended by this Bill, whether the request for the decision was made before or after the commencement of the Bill and whether the decision is made as a result of proceedings in relation to an aquaculture decision made before the commencement of the Bill (inserting New Clause 19A into the Bill, substituting Section 42 of the Act).

Period for lodging judicial review proceedings of an aquaculture decision reduced

Sop 264 proposes the reduction of the period for lodging judicial review proceedings of an aquaculture decision from three months to thirty working days (inserting New Clause 19B into the Bill, amending Section 43 of the Act).

Occupation of interim aquaculture management area space for aquaculture activities

SOP 264 proposes the circumstances for applications, after the commencement of the Bill, for a coastal permit to occupy space in an interim aquaculture management area for the purpose of aquaculture activities. The chief executive must have made a reservation in relation to certain types of fishing (customary fishing, recreational fishing or commercial fishing for stocks subject to the quota management system) or a determination in relation to the space and the space has become a Gazetted aquaculture area (inserting New clause 19C in the Bill, inserting New Section 43A into the Act).

Regional coastal plan of the Waikato Regional Council

SOP 264 proposes that in respect of space in the coastal marine in the region of the Waikato Regional Council that is a Gazetted aquaculture area under new section 44M and in respect of which the Council has not identified 20% of the space for allocation to the trustee under the Maori Commercial Aquaculture Claims Settlement Act 2004 as it was before the commencement of the Bill, the application of the new provisions to provide a process for the allocation of authorisations to the trustee under the Maori Fisheries Act 2004 in respect of 20% of any space in an interim aquaculture management area in respect of which the chief executive has made a determination or a reservation relating to commercial fishing for stocks subject to the quota management system. The Bill also amends the Waikato Regional Coastal Plan to inter alia establish a new 300 hectare farming zone off Coromandel (amending Clause 21 of the Bill, inserting New Section 44O into the Act (applying New Sections 44B to 44E); Schedule 3 to the Bill ).

Compensation where fishing quota owners affected by coastal permit for aquaculture activities

SOP No 265 proposes that compensation (decided by an arbitrator appointed by the coastal permit holder and quota owners or, if not, by the President of the Arbitrators and Mediators Institute of New Zealand or a person authorised by the president) be provided to affected quota owners if the chief executive has made a reservation, in relation to a coastal permit for aquaculture activities, in respect of commercial fishing of quota stock, and no aquaculture agreement in respect of the stock has been registered by the holder of the coastal permit. Before proceeding to decide on compensation the arbitrator (using a methodology prescribed in regulations) must decide on which option is of greater economic value to New Zealand: the proposed aquaculture activities or the commercial fishing in relation to which the chief executive has made a reservation? Where the arbitrator decides other than in favour of the aquaculture activities, the arbitration ends. If he or she decides in favour of aquaculture activities, the compensation to be provided to fishing quota owners must be assessed and paid by the holder of the coastal permit to the quota owner.

The methodology for assessing compensation (prescribed in regulations) must calculate the loss in value of affected fishing quota due to the aquaculture activities authorised by the coastal permit and must provide for compensation to be calculated in proportion to the impact on fishing, including (as set out in New Section 186ZR):

• increased fishing costs and any consequential disruption costs as a result of the proposed aquaculture activities, including a sum by way of solatium to fishing interests for any adjustments required as a result of the impact of the aquaculture activities; and

• any complementary uses that might exist for the site in accordance with submissions; and

• the loss in value of affected quota, but only in relation to that part of the relevant average annual catch that is estimated to have been reduced by the chief executive's aquaculture decision.

The methodology must also provide for the calculation of compensation to be based on the size of the affected quota holding and the corresponding loss of quota value, including by reference to any recent transfers of the quota or associated annual catch entitlement (amending Clause 46, inserting New Clauses 186ZN to 186ZR into the Fisheries Act 1996).

Relationship of this Act with the Marine and Coastal Area (Takutai Moana) Act 2011

SOP No 264 proposes a clarification of the relationship between the Maori Commercial Aquaculture Claims Settlement Act 2004 and the Marine and Coastal Area (Takutai Moana) Act 2011. Nothing done under or for the purposes of the Maori Commercial Aquaculture Claims Settlement Act 2004 is to be taken into account in determining, under Part 3, subpart 3 of the Marine and Coastal Area (Takutai Moana) Act 2011, whether customary marine title exists in a specified area of the common marine and coastal area (inserting New Clause 51A into the Bill, inserting New Section 6A into this Act).

Crown’s obligation to provide settlement assets corresponding to twenty percent of new space.

SOP No 264 proposes setting out the Crown's obligations to provide for, and transfer to the trustee under this Act, settlement assets that are representative of 20% of new space and provides that the Crown may meet its obligations by one or more of the following actions:

• providing authorisations to apply to occupy space in the coastal marine area for the purpose of aquaculture activities;

• by paying the financial equivalent of that space;

• entering into one or more regional agreements (provided for in new Section 10) (inserting New Clause 52 in the Bill, substituting Sections 7 to 16 of the Act and inserting New Section 16A).

Plan change requests and concurrent applications for coastal permits for aquaculture activities

SOP 264 proposes amendments relating to plan change requests and concurrent applications for coastal permits in relation to aquaculture activities. It is proposed that plan change requests in relation to prohibited aquaculture activities and applications for coastal permits for aquaculture activities be processed together and detailed provision is proposed as to how plan change requests and their concurrent applications are to be processed and, in particular, how the Environmental Protection Authority is to deal with them. It is provided that if the request and application are made to a regional council, they can be both made at the same time or the plan change request can be made first, followed by the concurrent application if the plan change request is accepted. But, if the plan change request and its concurrent application are made to the Environment Protection Authority, they must be made together. However, New Section 165ZK limits these changes so that they only apply to a rule in a regional coastal plan that, at the commencement of the Clause of the Bill that inserts new subpart 4 (Clause 94A of the Bill) provides an aquaculture activity is a prohibited activity, and that rule is still operative when the plan change request is made. (New clause 88A) (inserting New Clause 94A into the Bill, inserting new subpart 4 of Part 7A of the Act into the Act (New Sections 165ZK to 165ZZA); inserting New Clauses 88A to 88G into the Bill, amending Sections 145-149M of the Act).

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