4.1
The Fisheries Management Act 1991 (the Act) requires the Minister and the Australian Fisheries Management Authority (AFMA) to manage fisheries sustainably, by:
(b) ensuring that the exploitation of fisheries resources and the carrying on of any related activities are conducted in a manner consistent with the principles of ecologically sustainable development (which include 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.
4.2
As well as the Act, Commonwealth fisheries are subject to environmental assessment and approval, including under the Environment Protection and Biodiversity Conservation Act 1999. Under that Act, the Australian Government 'is required to assess the environmental performance of fisheries and promote ecologically sustainable fisheries management'.
4.3
The Fisheries Research and Development Corporation (FRDC) defines 'ecological sustainability' in fisheries to mean using resources 'within their capacity to sustain natural processes', maintaining the marine environment, and protecting the capacity of the resource 'to meet the needs and aspirations of future generations'.
4.4
There were divergent views among inquiry participants as to the impacts of the quota system on marine environments and the sustainability of fish stocks. This chapter considers a wide variety of evidence on the environmental and sustainability outcomes of Australia's fisheries quota system, with a particular focus on the role and effects of individual tradable quotas (ITQs). It covers:
ecological outcomes of the quota system, including fish stocks, stewardship, by-catch, 'high-grading' and discarding, and the setting of total allowable catches (TACs);
impacts of climate change on fisheries management and the quota system;
science in fisheries management;
upcoming quota buyout in the South East Trawl Fishery;
recreational and cultural fishing;
Western Australia's approach to fisheries management; and
Ecological outcomes of the quota system
4.5
All fishing has an impact on marine ecosystems, regardless of how well it is managed. FRDC reported global evidence of the effects of commercial fishing on ecosystem structures. Inquiry participants acknowledged the importance of managing fisheries in an ecologically sound way, with most believing the quota system has improved sustainability in Australian fisheries.
4.6
AFMA reported that, since 2012, 'no fish stock managed solely by AFMA has been subject to overfishing'. The Department of Agriculture, Fisheries and Forestry (the Department)—which has policy responsibility for fisheries—submitted:
Stock status reports undertaken by the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) show that the number of Commonwealth managed fish stocks 'not subject to overfishing' has increased from 16% to around 85% since 2005 (ABARES 2020). Similarly, the number of fish stocks where the biomass is at target levels has increased from 27% to 73%.
4.7
The 2021 ABARES Fisheries Status report found that, of the 100 stocks assessed in 2021, 77 were classified as 'not subject to overfishing' (consistent with the last report (2019)), four were classified as 'subject to overfishing' (consistent with 2019), and 19 were classified as 'uncertain with regard to fishing mortality' (up from 14 in 2019) (see Figure 4.1 below).
4.8
ABARES acknowledged that it is becoming 'increasingly difficult to assess status' for fish stocks that are classified as overfished, including 'blue warehou, eastern gemfish, school shark, southern and western orange roughy, and gulper sharks'—all stocks fished in the South East Trawl Fishery. ABARES reported data issues, including: a lack of data, uncertainty about 'the extent of total fishing mortality' for some stocks, and uncertainty around 'commercial discards', 'post-release survival' of fish, and 'the extent of recreational catch'.
4.9
Some participants were critical of AFMA's classification system for fish stocks. Professor Caleb Gardener from the Institute for Marine and Antarctic Studies at the University of Tasmania (IMAS) said when scientists say a fish stock is 'sustainable', all this means is that it is 'not below 20 per cent' of the stock's biomass:
We're just saying that we haven't removed 80 per cent of the biomass of the stock—80 per cent. All we're saying is that we haven't pushed the stock down to a level where it's just going to spiral down, worse and worse, and eventually crash. It's certainly better than having a crashed stock but it still doesn't mean that the stock is performing brilliantly.
4.10
IMAS research that indicates only 28 per cent of Australian fish stocks under assessment 'are above their target level', while 72 per cent are below, and of the 28 per cent of stocks that are above target, half are not being harvested at all. Professor Gardener suggested that, rather than aiming for 'simply sustainable', fisheries management should be aiming for fish stocks that are 'thriving', not 'just surviving'.
4.11
AFMA was asked why stocks like jackass morwong are still listed as 'not overfished' on AFMA's website. AFMA Chief Executive Officer, Mr Wez Norris said the criticism was 'fair enough'. Stock statuses reported on AFMA's website 'simply reflect the last published ABARES fishery status report'. However, Mr Norris acknowledged that this process could lead to public confusion and, 'perhaps' AFMA should change its update procedure considering it is well-known that jackass morwong is overfished.
4.12
Similarly, Dr Alistair Hobday from the Commonwealth Scientific and Industrial Research Organisation (CSIRO) said 'we can do a better job of communicating to the public' around the definitions and meanings of fish stock assessments. Dr Hobday noted previous inquiry submissions in which CSIRO had proposed more 'appropriate reference points to use in fisheries'.
4.13
While many submitters attributed sustainable fish stocks to ITQs, Professor Gardener said IMAS research shows 'no particular better stock outcome' in fisheries managed under ITQs compared with other management structures. Dr Klaas Hartmann from IMAS was also critical of the 'desire to apply ITQ broadly', saying some fisheries are 'just too small' or have 'too limited data', or 'species biology' makes them unsuited to ITQ management:
For example: if there's not enough data to set meaningful TACs, or if there are highly variable species where the biomass can fluctuate substantially in response to environmental change so you can't set meaningful catch limits.
Views of fishing industry associations
4.14
The vast majority of fishing industry associations praised the quota system for its contribution to ecological sustainability of fisheries.
4.15
Abalone Council Australia said ITQ managed fisheries 'greatly improved sustainability of Australia's wild fisheries', allowing Australia to become a 'world-leader in fisheries management and sustainability'. Seafood Industry Australia argued that, in Commonwealth fisheries, 'ITQs have played a pivotal role' in creating sustainable and well-managed fisheries driven by continuous improvement. CFA concluded that ITQs are 'not just an economic instrument', but are an effective instrument for ecological sustainability as well.
Views of individual fishers
4.16
Individual fishers who submitted to the inquiry were generally negative about the environmental benefits of the quota system. Figure 4.1 below, submitted by CSIRO, shows how the views of fishers who submitted to the inquiry diverged from those of fishing industry associations and other submitters.
Figure 4.2: Distribution of ecological impact scores by stakeholder group
4.17
Only 20 per cent of the individual fishers who submitted to the inquiry believed ITQs 'had improved the fisheries ecologically' and over half submitted that ITQs 'had a negative effect on sustainability'. In contrast, industry association were around six times more likely to express a neutral or positive view on ecological impacts, and most expressed a positive view on sustainability. CSIRO suggested that fishers 'are often resistant to change', which may 'cloud their perceptions' of the impacts of ITQs on sustainability.
4.18
Some fishing associations at state level were also critical of the role of ITQs in sustainability, with the Queensland Seafood Industry Association (QSIA) saying quota management is not the solution to environmental and sustainability issues:
Nothing in the so-called Queensland fisheries reform process, particularly quota management, will address the impacts of coastal and port development, modification of catchments, pollution, the introduction of organisms from shipping, the modification of tributaries or the well documented ineffectiveness of fish migration ladders in barrages and weir walls that greatly hinder the natural migration of juvenile fish species back into fresh water (the natural process).
4.19
Evidence from long-time fisher and previous director of the New South Wales (NSW) Seafood Industry Council, Mr Brad Warren suggested that, even in quota managed fisheries where stocks have been successfully rebuilt, ITQs may not be the mechanism responsible:
The NSW Lobster fishery is one example of a fishery using quota management being rebuilt. As a former quota holding fisher I would put forward that it was the imposition of a maximum size limit which outlawed the take of the larger breeding lobsters in the deep water component of the fishery that has been a major driver in the recovery of the fishery, as opposed to the imposition of a catch quota.
Fish stocks
4.20
Dr Graham Edgar, who works part time at the University of Tasmania and undertakes 'pro bono work on environmental issues', made a submission to the inquiry outlining possible 'biases' in fish stock assessments and an underestimation in 'the level of depletion'. Dr Edgar argued there is 'no funding' available for the kind of work he is doing on fish stocks, and that funding for fisheries research is 'vetted through authorities' who 'prevent any project coming ahead that might show any negative effects associated with the fishing industry'.
4.21
In his submission, Dr Edgar argued that the precautionary principal is not applied by AFMA at anywhere 'near the level that's required' and argued in favour of marine protected areas to address climate change and other environmental factors. As an example, Dr Edgar referred to the management of jackass morwong, which he said was 'recognised to be collapsing, and with recruitment failure' in 2010. However, the TAC was actually raised:
Basically, the story with that was that in 2007, I think it was, the estimate from stock models of the depletion went below the 0.2 trigger reference point, which should initiate a recommended biological catch of zero, but that continued for the next three years and the stock got lower and lower.
4.22
Dr Edgar's research indicates that stock assessments apply a positive bias, failing to capture the decline. He noted jackass morwong is 'down to something like four per cent of its virgin biomass and has declined by more than half' in the last three to four years—from 487 tonnes in 2015–16 to 208 tonnes in 2019–20—while AFMA's website continues to class it as 'a sustainable fishery'.
4.23
Participants noted evidence suggesting greater declines in the south east than other parts of Australia. Dr Edgar referred to a recent 'continental analysis' which indicates 'over 30 per cent' of marine species in Tasmania are 'significantly declining', compared with 'less than 10 per cent up in the tropical areas'.
4.24
Mr Bryan Skepper from the NSW Seafood Industry Council was concerned that there are not enough environmental assessments on the recreational fishing sector and its impacts on fish stocks. In relation to some species, the recreational catch 'exceeds the commercial take and it's not monitored; it is not managed'. He pointed to snapper and mulloway as examples. This view was echoed by Mr Hammond, who said Tasmanian Seafoods supports recreational fishing, but is concerned that 'their take is not accurately measured or reflected':
Bearing in mind that most ITQ fisheries are taken, that take is measured down to the kilo. We would say that, to look at fisheries ecologically and sustainably, that is probably something that needs to be looked at and changed so that we can measure that accurately.
Commonwealth Fisheries Harvest Strategy and Guidelines
4.25
In addition to the Act, since 2007 Commonwealth fisheries have been managed according to a Harvest Strategy Policy and implementation Guidelines, which aim to ensure the sustainability of key commercial fish species, as well as to 'maximise the net economic returns to the Australian community'. The current Harvest Strategy Policy and Guidelines, released in 2018, were the result of a consultation and review process designed to 'capture new developments in fisheries management and science' and ensure Australian fisheries represent 'world's best practice'. Compared with the earlier policy, the 2018 revision incorporated a greater emphasis on 'meeting environmental and economic objectives in multispecies fisheries', applied the policy to internationally managed fisheries, and incorporated 'by-product species'.
4.26
The CSIRO said it contributed to drafting the current strategy, which aims to set TACs 'to ensure the recovery of fish stocks and to return fisheries to sustainable profitability' and is now contributing to the review of that policy and development of a new one. AFMA confirmed that the Harvest Strategy is now being reviewed, as it has come up to five years of operation.
Stewardship
4.27
Some fishers argued that the quota system encourages stewardship. For instance, Mr Chauncey Hammond from Tasmanian Seafoods believes quota holders are 'the best stewards and guardians of that public resource', because if fishing is not conducted in a sustainable way, then 'years of investment and work will be lost'.
4.28
CFA pointed to investments made by quota holders in new state of the art vessels which 'have set the standard for crew safety', fuel consumption and carbon emissions, with Austral Fisheries being the 'first fishing company in the world to achieve carbon neutrality'.
4.29
The committee heard that major quota holder, Tasmanian Seafoods Group successfully advocated for a reduction to the abalone quota of approximately one-third, despite opposition from some stakeholders, in order to rebuild stocks for future sustainability. Managing Director, Mr Darvin Hansen explained that the industry also gave up 'a two per cent promised royalty reduction' in order to fund the Abalone Industry Reinvestment Fund, which is addressing the impacts of climate change, invasive species and storm events.
4.30
However, academic research has suggested the idea that ITQs would incentivise quota holders to work to 'protect future productivity of the resource' (stewardship) has not turned out to be accurate in many cases. According to IMAS, the stewardship theory has 'led to management agencies placing greater weight on industry recommendations' when settings TACs. Testing the theory, IMAS examined the history of TAC/TACC (total allowable commercial catch) decisions across 35 ITQ managed fish stocks in Australia and New Zealand and found that, while TACs/TACCs were 'generally set responsibly', there were many examples where 'stewardship did not emerge and TACCs were set too high leading to predictable stock depletion'.
4.31
Dr Hartmann from IMAS added that evidence of stewardship 'has often been unclear', and the move to non-fishing investors in many fisheries is reducing this benefit. It was Dr Hartmann's view that output controls (ie: TAC) can 'achieve similar outcomes for stock' levels without ITQs. Similarly, Professor Gardener argued that ITQs do not promote stewardship any more than other forms or components of fisheries management. CSIRO submitted that 'there is insufficient evidence to draw the conclusion' that stewardship has contributed to improved environmental outcomes.
4.32
According to Professor Gardener, when ITQs were introduced in abalone fisheries there was an 'expectation' that there would be 'more stewardship by the industry', as people would be 'highly motivated to set really conservative TACs', but this did not happen. Asked to comment on the evidence provided by Tasmanian Seafoods on their role in reducing the TAC, Professor Gardener said Mr Hansen is 'unusual' among quota owners:
He had financial security, so he didn't need to worry about repaying the loans next year. And he knew a lot about the industry too. He is the antithesis of a lot of other quota holders I interact with, who might be from interstate—they've got no idea about the industry, they're desperately worried about the loan they've just taken out, and they need catches to be higher.
4.33
Mr Hansen responded to this suggestion, saying he does have 'unusual traits', including an educational background in engineering, but does not accept Professor Gardener's characterisation of other abalone quota holders, saying the majority of quota holders reside in the jurisdiction, and differences in their approaches are because 'individuals in a fishery are different and have different natures'. Some quota holders are 'risk averse, some are natural "conservatives"', while other quota holders 'are more aggressive, more inclined to push the limits'. Mr Hansen noted that, despite disagreement among quota holders, the 'overwhelming majority of members voted in support of 10 successive quota reductions which reduced the annual commercial harvest from 2660 tonne in 2010 to 1018.5 tonne in 2020'.
4.34
The committee received a significant number of submissions from the abalone sector. Abalone Council Australia said ITQ holders have 'a long-established history as responsible custodians of their access rights' and pointed to investments from the industry into research and development. The Tasmanian Abalone Council noted that quota unit holders 'rely on robust fishery science and prudent fishery management' to protect the long‑term sustainability of fish stocks, and are 'not of themselves managers'.
Bycatch, high-grading and discarding
4.35
Fishers generally believed that 'discarding' of non-target fish stocks has increased under ITQs, contributing to their negative views on the sustainability of the quotas system.
4.36
Mr Warren said discarding and high‑grading (retaining only the highest value fish) are 'imperative' in multi‑species trawl fisheries in order to 'maximise returns from a limited quota'. Discarded fish 'have a limited chance of survival', which Mr Warren said results in 'wasted fish, reduced economic return for the fishing activity and a reduction in the availability of lesser value size gradings for consumers'. FRDC also said ITQs may 'indirectly incentivise' bad fishing practices, including discarding and high-grading. However, this can be 'minimised' by setting the TAC 'appropriately' and ensuring the quota market is 'well functioning'.
4.37
Professor Gardener said bycatch (inadvertently catching non-target fish) is an 'incredibly complicated' issue. However, he agreed that 'bycatch discarding' is a problem associated with fisheries managed under the quota system—especially multispecies fisheries. Bycatch policies try to avoid discarding by having provisions that allow the bycatch to be landed but impose 'penalty payments'. This is designed to prevent fishers 'trying to use [bycatch] as a loophole to create profit'.
4.38
The 2002 Competition Review concluded that 'ITQ approaches do not reward the fisher who follows good conservation practices'. It found that practices like high‑grading can 'diminish the returns to those fishers who follow the rules' and concluded that 'ITQs alone can also be ineffective in addressing bycatch issues'.
4.39
Ecological and environmental impacts of Commonwealth fisheries are managed under the Commonwealth's Harvest Strategy and Bycatch Policy. One way in which fishers try to minimise ecological impact is by targeting high-value species and limiting bycatch. However, the FRDC noted that—ironically—bycatch policies can actually result in the unintended consequence of 'impacting ecological value though changing ecosystem structure by selectively harvesting only parts of it'. TACs can be set for specific species to try and avoid or address these consequences. FRDC research also indicates that assigning 'non‑monetary value' for 'non-commercial species' as part of harvest strategies in multi-species fisheries can improve ecological or habitat outcomes, but this is not currently the practice in Australian.
4.40
The South East Trawl Fishing Industry Association (SETFIA) suggested that input controls are still required in ITQ fisheries 'to protect fish stocks from being taken as a by-product', but these must be accompanied by 'sustainable quotas'. CSIRO said TACs are generally set 'taking into account the expected levels of discarding that take place', and stock assessment scientists are 'very cognisant' of discarding when they provide advice.
4.41
Participants discussed the use of monitoring to avoid discarding of bycatch, and Dr Edgar said he believes 'observers are certainly much more efficient than cameras for trawl fishers'. Dr Edgar questioned the quality and comprehensiveness of AFMA's data on bycatch and discards, citing anecdotal evidence that 'unless there is an observer on board the fish will get dumped overboard'.
4.42
While some participants suggested high-grading is an issue, Dr Sean Pascoe from the CSIRO said he did not believe high-grading is a 'big issue in Australian fisheries' or internationally, though bycatch and discarding certainly are.
Setting TACs
4.43
Participants talked about the importance of setting TACs correctly to achieve both economic and ecological aims. Mr Warren noted that, while stock assessments may be of a high-quality, 'quota settings lag stock assessments':
For species that have a high natural variability in population dynamics over time, imposing an annual quota has undeniable potential to negatively impact on the sustainability of the target stock, the economic return from the fishery, and desired community outcomes of healthy marine ecosystems and availability of local seafood for consumers.
4.44
Chief Executive Officer of Seafood Industry Australia, Ms Veronica Papacosta argued that fisheries management in relation to the setting of TACs is driven by 'conservatism' and many TACs could be higher. This view was echoed by Mr Skepper who identified 'spatial pressures' caused by marine parks, pollution, climate change and habitat destruction as causes of fish stock fluctuations, and said:
Yet the only thing that gets addressed is the amount of fish that's taken. If we address the real threats, the analogy goes that the stocks would be healthier and TACs could probably go up.
4.45
Professor Gardener suggested that, in Australia, TACs tend to be set in a way that maximises profits, rather than maximising 'the supply of seafood to the community', and more fish could often be taken sustainably from some fisheries. Setting TACs using maximum economic yield (MEY) 'is 'a good strategy' for export fisheries, but may be 'a concern' for fisheries supplying the domestic markets. While the TAC on some species, such as abalone, have been set low to protect declining stocks, Professor Gardener said the TAC on lobster has been set low to 'target' MEY, rather than maximum sustainable yield (MSY), which may not benefit consumers or the community.
4.46
In response to concerns raised by Queensland fishers about stock assessments of Spanish mackerel, CSIRO explained that 'an absence of data … means that assumptions get made in stock assessments'. However, CSIRO has developed 'a new approach called close-kin mark-recapture methods', which will provide population estimates. This approach is set to be 'applied to the Spanish mackerel fishery in the coming years'.
Impacts of climate change and invasive species
4.47
Scientific analysis demonstrates that climate change is impacting the 'total productivity' of fish species, as warming ocean temperatures:
alter the distribution of fish species;
cause fish to 'use energy more quickly', reducing reproduction and growth; and
change fish species' diets and access to food.
4.48
Participants including Dr Nick Rayns, Dr Edgar, Dr Hobday from CSIRO, and Captain Roger King from the Tasmanian Rock Lobster Fishermen's Association (TRLFA), acknowledged the risk posed to fisheries by climate change, especially fisheries in the south east of Australia. Dr Hobday said the impacts of climate change on fisheries have 'become much more apparent in the last five years' because of marine heatwaves and habitat damage from storms and flooding. The Tasmanian Seafood Industry Council (TSIC) agreed that changes in the environment are 'compounding problems within the industry' and argued for 'good strategies driven by science' to rebuild fish stocks and create a 'buffer'.
4.49
ABARES' most recent fisheries status report (2021) reported that climate change 'poses a significant and growing challenge' to the government's ability to 'monitor, assess and manage fishery impacts'. To address this, regulators will need to ensure research and assessment techniques, and management controls such as harvest strategies, 'keep pace with, and respond to, these changes'.
4.50
Dr Edgar argued fish stock modelling needs to take into account environmental changes to add 'another layer of precaution', because relying on old data sets with different environmental conditions means 'your model will be quite inaccurate'. While 'warming temperatures' are leading to stock declines, Dr Edgar argued this is a 'relatively recent development', with overfishing being a major cause, especially for south east scale-fish and shark.
4.51
Dr Stewart Frusher noted that, while 'no one wants to cut the quota', impacts of climate change provide 'justifiable reasons' to so in order to maintain sustainability of fisheries, especially on the east coast.
4.52
Captain King noted the impact of the Centrostephanus urchin on east coast fisheries, which have faced 'issues' in adjusting to the consequential? lower catch limits:
The ecosystem on the east coast is not what it was. Its ability to sustain rock lobster, abalone, scale fish is not what it was and it probably won't be for probably another 20 or 30 years until we re-establish the environmental balance. That has also contributed to the loss of these smaller boats on the on the east coast in Triabunna and Bicheno, where there used to be a large fleet, because there just isn't the quota.
4.53
According to Dr Edgar, the Centrostephanus problem is 'a direct climate impact', as the species moves further south due to warming waters:
Centrostephanus is increasing substantially—or has over the last 20 years—in Tasmania but it's actually declining in the northern part of its New South Wales range. As a species, the population isn't changing that greatly, but it's progressing south and impacting the cooler-water species.
Management responses to climate change
4.54
CSIRO provides 'ecological risk assessments' to AFMA which are designed to 'underpin their fisheries management'. These consider impacts of fishing activity on 'the target species, the bycatch, the habitats and the ecological communities', identify concerns and lead to actions like 'spatial closures or different catch limits for species of concern'. While these ecological risk assessments have previously assumed 'the world is not changing', new work being conducted takes into account rapid environmental changes due to climate change.
4.55
As well as participating in a review of the 2018 Commonwealth Harvest Strategy Policy and Guidelines, AFMA has created an ecological risk working group—which focusses on 'broader issues'—and has begun 'mainstreaming climate and ecosystem understandings' into its resource assessment groups and management advisory groups—which have traditionally focussed on single stock or fishery assessments. These groups now have 'a standing agenda item … on climate and ecosystem' and are required to 'prepare and update a climate and ecosystem report card' on the fisheries.
4.56
In addition, AFMA is investing in eco-system modelling called 'Atlantis', which is 'trying to unpick what's going on and what might go on into the future':
That's to really feed into our decision-making processes. It's important to note that we are about to award a contract to undertake a comprehensive review of our RAGs and MACs. A number of things have changed since the last time they were significantly looked at—climate change is a primary one, as is the need for us to switch to multispecies harvest strategies as opposed to single species…
Science in fisheries management
4.57
Inquiry participants were broadly complimentary about fisheries science in Australia. CFA highlighted the quality of Australian data and fisheries modelling, saying four or five of the top ten fisheries modellers in the world work for the CSIRO, and only New Zealand could be said to 'perhaps' have better fisheries science.
4.58
CSIRO scientists participate the TAC setting process as members on AFMA committees. Their scientific analysis for fish stock assessments is regularly peer-reviewed by other agencies providing similar analysis in other jurisdictions. However, advice on suggested TACS proposed by scientists may not always be accepted by the regulator, who must also weigh policy considerations:
Increasingly, we're seeing science advice provide a range of possible TACs, and they will come with different social and economic consequences, so policymakers then choose between a spectrum of TACs depending on what they want to achieve—a low TAC for very fast rebuilding or a high TAC for slower rebuilding, for example.
4.59
Dr Hartmann noted that the quota system has created 'a strange situation for fisheries scientists', because research is 'partly funded by industry' and partly by governments and university grants. Dr Edgar was concerned that within fisheries science there are 'pressures on people' to overestimate fish stocks, with decisions being made with an 'optimistic view' of the uncertainties. He argued for 'a "red team" approach', in which one team would be 'tasked with looking at the pessimistic view', while others take a more optimistic approach, saying the 'answer' would lie 'somewhere between the two'. Dr Edgar said 'everybody' in fisheries management has recognised the 'massive uncertainty associated with stock assessments' and believed CSIRO was working with FRDC to find ways to reduce that uncertainty, but 'nothing has ever come of it'.
4.60
Asked to comment on Dr Edgar's assertion, CSIRO suggested his view might indicate a lack of understanding of exactly how stock assessments are completed. CSIRO confirmed that a project is 'about to commence' which will provide information to interested parties on the different methods used in conducting fish stock assessments.
4.61
Dr Hartmann argued setting 'meaningful catch levels' requires a consideration of 'the level of uncertainty' provided by factors such as 'large‑scale environmental change'. Though he noted that 'shortcomings' in the stock setting process are 'not necessarily attributable to quota systems'.
4.62
Currently, stock assessments conducted for AFMA 'are mostly single species models'. Ecosystem models are also used 'to simulate what a range of futures might be', but CSIRO noted these models are only 'used as strategic tools', not for setting TACs. However, fisheries science is increasingly moving towards greater mainstreaming of science around the impacts of climate change, and future fisheries management will see an increase in 'precision fishing' (better targeting of species), more 'habitat forecasts', the use of 'real‑time data techniques to understand population trajectories', and take better account of climate change.
Questioning the science
4.63
QSIA, Green Shirts Movement Australia, Moreton Bay Seafood Industry Association and the Gulf of Carpentaria Commercial Fishermen's Association questioned whether current data and scientific analysis used by Fisheries Queensland are accurate and complete, and disputed that the data supports the use of a quota system. These participants argued for better and more transparent data, and more data collection in the recreational sector.
4.64
As an example, QSIA pointed to the Spanish mackerel stock assessment process, saying members of the working group 'have no faith in the validity of the data used by Fisheries Queensland'. QSIA said fishers in the working group 'were advised that they were not there to "question the science"', that the group only met twice, and that:
In 2004 as a result of the zoning of the Great Barrier Reef (GBR), commercial fishers lost between 60-73% of their access to SM [Spanish mackerel] stocks. The data collection process used to inform the current stock assessment did not sample SM in the Green zones (spawning aggregation areas) of the GBR.
4.65
QSIA concluded that 'current science underpinning the [Spanish mackerel] stock assessment will lead to catastrophic reductions in the value of [Spanish mackerel] quota'. Further, that the risks to Queensland fisheries posed by commercial fishing 'have been overstated', and options other than ITQs should have been explored.
4.66
To address what they see as deficits in the science, the Green Shirts Movement Australia argued for the creation of an office of scientific integrity and quality assurance.
South East Trawl Fishery structural adjustment package
4.67
In response to species declines in the South East Trawl Fishery, AFMA has lowered the TAC for at-risk species and is closing large areas of the fishery from 1 May 2023. To help support operators who will be affected by these changes, the Australian Government is 'delivering a structural adjustment program' for the South East Trawl Fishery in 2022–23. The package includes up to $20 million for 'the purchase of surrender of boat Statutory Fishing Rights from fishing operators who wish to leave or downsize their operations', and $3 million over three years for AFMA to 'partially waive levies in the South East Trawl Fishery'.
4.68
The purchase of surrender of boat Statutory Fishing Rights will take place via 'a restricted tender process in early 2023' and is open to holders of Commonwealth Trawl Boat Statutory Fishing Rights. The program aims to reduce the size of the active fishing fleet, which the Department of Agriculture, Fisheries and Forestry (DAFF) says 'should make the remaining commercial fishers more profitable and the fishery more ecologically sustainable'.
4.69
Simon Boag, Executive Officer of SETFIA, was asked to comment on fish stocks in the South East Trawl, and whether SETFIA's members consider climate change to be a factor. Mr Boag was unsure if members believe stocks depletions are related to climate change but said they all acknowledge species including silver trevally and jackass morwong are not recovering 'as expected'.
4.70
It was suggested that AFMA could have simply set the TAC on these species to zero, to allow them to recover, rather than conducting a buyout. However, Mr Boag explained that this would not remove fishers and vessels from the industry:
It would have been a horrible outcome where we had too many vessels with not enough grounds all fighting each other and all slowly going broke. This way, with a buyout, we have a future. The Australian community can buy fresh, local fish without us all going broke.
4.71
Mr Boag confirmed that negotiations have begun with SETFIA's members in relation to the buyout, with a letter sent by DAFF directly to South East Trawl vessel permit owners following the release of the October 2022 Federal Budget. The letter said consultations will commence in November and 'they're trying to run a voluntary process in early 2023 of tendering for the surrender of permits'.
4.72
Dr Edgar was asked if the buyout will be effective in terms of fish stock recovery. He replied that it could be very effective 'if trawling within those particular areas was effectively policed'.
4.73
Professor Gardener noted that it is difficult to 'maintain production of some species' while other species in the environment are depleted. While improving stocks of jackass morwong and warehou (often caught as bycatch when fishing for flathead) may be the target of the buyout, Professor Gardener questioned whether there has been 'enough scrutiny of other options', rather than paying out quota holders with public money. He said it would be 'an endless rabbit hole if we start throwing cash into buying out licences every time we worried about levels of the stock'. Similarly, CSIRO said it would prefer to see the precautionary principle enacted—such as through harvesting 'only 30 per cent of biomass, rather than 50 per cent of biomass'—before going to 'emergency responses' like buyouts.
4.74
CSIRO said analyses of structural adjustment programs around the world have found 'they often only offer short term benefits to the fishery, as effort of the remaining fleet generally continues to increase'.
Western Australia: ecosystem based fisheries management
4.75
The committee sought evidence from the Western Australian Department of Primary Industries and Regional Development (WA DPIRD) on approaches to fisheries management in that state.
4.76
Western Australia is in the process of moving to new legislation—the Aquatic Resources Management Act. Executive Director of Fisheries and Agriculture Resource Management at WA DPIRD, Dr Rick Fletcher said the new Act embeds 'ecosystem based fishery management', which considers 'impacts and outcomes at the resource level rather than at the individual fishing activity level'. The Act will codify 'outcome based objectives' and introduce specific allocations to commercial, recreational and cultural sectors, including 'a priority allocation for customary fishing'.
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The form of access rights used in Western Australia varies depending on the fishery, with either 'input or effort controls' used, and/or 'a catch quota per licence or per unit'. Criteria have been developed to determine the best form of management for each fishery. Based on that criteria, 22 fisheries are 'managed through effort controls' and 12 have both effort controls and ITQ:
Essentially our key quota fisheries are single species like rock lobster, abalone and fisheries like that. Our effort control fisheries are a large number of multispecies fisheries. We consider that effort controls are best for multispecies fisheries.
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There was criticism from some participants about an attempt in Western Australia to 'nationalise' some of the quota (also discussed in Chapter 3 of this report). Captain King, who has fisheries investments in Western Australia, said 'government interventions … destabilise confidence in fisheries'. He said the actions of the West Australian Government have left fishermen feeling 'slightly under attack', though noted the nationalisation? proposal did not go forward.
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However, Dr Hartmann said processes to 'effectively manage the overall stock with a resource-sharing arrangement', as Western Australia is working to do, are an 'important part of the continued development of our fishery system'.
Options for reform
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Evidence from AFMA indicated that the agency is making significant changes to incorporate the impacts of a changing climate and environment. Mr Norris said, regardless of what the Act says, AFMA is being 'forced down that path by virtue of the way that the environment's changing', and modelling from CSIRO and other agencies is driving a 'greater ecosystem approach than has been the case in the past'.
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However, inquiry participants made a number of suggestions for reforming fisheries management to better support ecological outcomes; these are outlined below.
Whole-of-ecosystem approaches
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In Commonwealth fisheries, TACs are still currently set on a species‑by‑species basis. ABARES said more research is needed to understand the impacts of climate change on 'fisheries' interactions with bycatch species'. In addition, 'monitoring and reporting' of bycatch and the performance of fisheries 'require further development':
There are a number of challenges to achieving better monitoring, assessment and reporting of the impacts of Australian Government–managed fisheries on bycatch species, especially in data collection and catch estimation. In coming years, ABARES will seek to progress performance reporting on bycatch in Australian Government–managed fisheries, with a view to producing a consolidated performance report to complement the performance reporting already undertaken in the annual Fishery status reports.
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CSIRO submitted research on Canadian fisheries which found the quota system put 'increased pressure on non-ITQs stocks with related environmental impacts'. This has been addressed by extending 'the ITQ program over additional species'.
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Dr Hobday said, in order to take account the impacts of climate change, scientists will need to use 'much more simulation work' when conducting stock assessments, as well as take into account the changing distribution of fish stocks.
Greater use of input controls, restrictions and harvest strategies
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In general, inquiry participants acknowledged the need for quota systems to be supplemented by input controls, particularly where fish stocks are showing signs of depletion, and where climate change is already changing the profile of fisheries. Participants who were opposed to ITQs in their fisheries, along with those who suggested ITQs play a limited role in ecological sustainability, often argued the benefits of input controls, restrictions and harvest strategies as management tools.
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Some participants argued that ITQ is not necessary for sustainable fisheries management, with a scientifically-based TAC and input controls potentially just as effective. However, Dr Pascoe from the CSIRO said there are examples where fisheries have tried TAC and input controls, and still experienced a 'race to fish' and 'very poor economic outcomes'.
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IMAS submitted evidence that targeting MEY under an ITQ system does not achieve good ecological outcomes on its own. Harvest strategies, limitations on where, when and to fish and rules about gear and technology are still required in most, if not all, fisheries, even where ITQs have reduced the need for input controls.
Security of access/rights based management
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Industry associations, including Seafood Industry Australia and the CFA argued for stronger 'rights-based management' and security of access to fishing resources, on largely economic grounds.
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At the state level, the committee heard evidence around the abalone deed in Tasmania, which Captain King described as 'the gold standard of security of access'. Different jurisdictions in Australia have different legislative approaches to the 'ownership structure of the resource', impacting on the level of security of access that quota holders enjoy:
In Tasmania, the government states that it owns it. Therefore, they can enter into a legal contract or a deed. In Western Australia, that can't happen. We're assured that the new ARMA, the aquatic marine resources act, will have strengthened security of access rights, as far as the government can go within the legislative framework.
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CFA noted 'growing threats' to security of access in Commonwealth fisheries, where commercial fishers compete with recreational fishing, oil and gas companies, renewable energy projects, and 'offshore aquaculture'. CFA argued for better consultation and 'a coherent and clear spatial planning policy for the marine domain'. The recently released Commonwealth Resource Sharing Framework could 'provide greater certainty and better ecological and community outcomes', if it is adhered to. However, CFA argued the Framework will only be successful if governments provide 'recognition and compensation for loss of access'.
Environmental assessments of recreational fishing
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Data on the impacts of recreational fishing is generally unavailable or of low quality. However, AFMA now includes a 'recreational fisheries member' on its 'formal management committees', and specific allocations to recreational fishing are included in harvest strategies.
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In order to better monitor the impacts of recreational fishing, QSIA suggested the introduction of a 'recreational monitoring app' to capture recreational catches but emphasised its use would need to be compulsory for it to be an effective mechanism.
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The committee's views on options for reforming the quota system are provided in the next chapter, Chapter 5, along with the committee's recommendations.