PAUAMAC2 - Industry Proposal to Subdivide PAU2 into 6 new Quota Management Areas

Overview Background Information The Industry Proposal Working Groups Initial Response Recommendations Where to Next?

Maori Paua Quota Ownership Stock status PAU2Total QMAs(T) Settlement AFL Normal quota shares Totals TACC Maori % of TACC5644

The Paua2 Fishery 2nd largest PAU QMA1300km Commercial Management (CSO)PAUAMAC2 TACC 121t ACE Value kg$25 Total ACE Value$3m Asset Value$42.3m Iwi having settlement interests23 Non commercial allowancesNil Area HarvestedWairarapa

PAU2 Quota Management Area Fine scale reporting areas

Which iwi have an interest in the 8.2% PAU2 settlement shares? Iwi shareholdings in 8.2% entitlement quota sharesShare of 8.2%TonnageACE Values $ Te Ohu Kai Moana holding shares on behalf of:  Te Atiawa ki Poneke  Te Runanga o Toa Rangatira Incorporated  Te Runanga o Ngati Raukawa Incorporated  Ngati Mutunga Iwi Authority Incoprporated  Te Runanga o Ati Awa ki Whakarongotai Incorporated  Te Runanga o Ngati Porou  Ngati Tama  Rongowhakaata Charitable Trust  Te Runanga o Ngati Apa Society Incorporated  Muaupoko Tribal Authority Incorporated  Te Aitanga a Mahaki Trust  Te Whanau Apanui  Maniapoto  Te Atihaunui a Paparangi ,400 Ngati Kahungunu ,800 Rangitane O Te Ika A Maui Ltd ,550 Taranaki Iwi Fisheries Ltd ,525 Te Pataka o Tangaroa ,000 Ngati Ruanui Fishing Ltd ,975 Ngai Tamanuhiri Asset Holding Company ,900 Te Atiawa (Taranaki) Holdings Ltd ,825 Ngaruahine Fisheries Ltd ,750 Maruehi Fisheries (N Mutunga) Totals8.2%9.989t249,750 Go to page p13 8.2% = 9.9t 23 iwi have an interest 9 iwi already have entitlements 14 iwi to agree on 3.2% quota share splits – quota held by Te Ohu pending resolution Existing allocations in packages between 230kg to 4t Majority packages likely to be below 200kg Generates roughly $250k in ACE value per annum

Industry proposal 6 new QMAs 100 million shares in each new QMA split on the same basis as the current distribution TACCs in new areas set at zero other than PAU2D Good Will – New QMAs aligned to iwi groupings – Iwi trade in and out of QMAs – 10% incentive - except PAU2D Support for localised Management

Proposed Industry Boudaries

Legal Position Any subdivision or amalgamation under Fisheries Act requires Minister’s approval Proposal cannot unduly prejudice any quota owner who owns shares and opposes Can make recommendation to subdivide if – greater than 75% support; or – necessary for sustainability Proposal must include – Boundaries proposed – Manner in which quota shares apportioned – Interests of any aggrieved quota owner Proposal allows you to suspend normal allocation rules for Settlement quota if all iwi in QMA agree

Working Group Views Support the subdivision proposal in principle subject to issues in each proposed QMA being resolved The PAU2 QMA is too big to manage as one paddock The opportunity is there for iwi to better protect and grow their commercial and non-commercial interests in the paua fishery Opportunity for Iwi to further invest in the commercial paua fishery, inside and outside their respective areas

Current and Future States Current State: Customary fishing is constrained No or little recognition of important mahinga kai Lacking systems and processes to support effective fisheries management decision making Poor compliance MPAs still to come No $$ resourcing Future State: Kaitiaki trust Important mahinga kai and non- commercial areas are recognised and managed appropriately Improving fishery officer and HFO networks to support fisheries management Hapu involvement in commercial development Catch information sharing/systems are in place for recreation Kaitiaki are adequately supported Kaitiaki and Iwi Fish Managers influencing the effective and efficient management of the paua fishery

Anticipating Two Steps? 1.Request Minister to subdivide PAU2 QMA 2.Staged removal of constraining regulations where it is appropriate and implementation of management strategies (opportunity to realign management to new desired state)

Pre and Post Subdivision Shareholdings if 10% Incentive Accepted

Pre and Post Subdivision “Quota Shareholdings” TairawhitiTe Matau a Maui WairarapaWhanganui a Tara KapitiTaranaki PAU2APAU2D Only “quota shares” are transferred, not quota ACE Settlement shares8.2% 10% incentive10%0 AFL Holdings44.0% 39.6% Iwi normal shares3.51%3.9% Others38.69%43.90% All Totals100% Total iwi Interests61.31% % 61.31% Expected TACC

Short to Long Term Prospects Holdings PAU2D – WairarapaPAU2E – Wellington (based upon a 10t TACC) All other Areas Settlement 8.2% 10t820kgMedium to long term development 10% Incentive (normal shares) Nil1 t Normal shares owned by MIO or AHCs 4.6t351kgRequires investment and incentives – need to scope the potential of each area AFL Holdings t Other non-iwi normal quota share holdings tDevelop rebuild and maintenance strategies Total iwi and Te Ohu Group (AFL) interests 63.6t ACE Value = $1,590,000 Capital Value = $22,260, t ACE Value =$153,250 Capital Value =$2,145,500 All totals121t ACE Value = $3,025,000 Capital = $42,350,000 10t ACE Value = $250,000 Capital = $3,500,000 Producing customary & commercial currencies

The Tool Box MLS variations Paua reseeding Catch spreading/ zones Data loggers Harvest standards Shelving Spatial management

Proposed Boundaries Relevant considerations Iwi rohe moana Regional boundaries Coastal agreements Existing FMA boundaries Minor boundary changes Changes in the number of iwi in each new QMA not large

PAU2A: Lottin Point to Paritu 5 Iwi Beds are spread out 125mm Paua Closed to commercial Marine Reverse Hapu association with beds are strong No customary data

PAU2B: Paritu to Poroporo 2 iwi Beds are scattered Hapu associations with beds are strong Dirty water Currently closed Marine reserve Ngati Kahungunu Plan Mataitai

PAU2D: Poroporo to Turakirae 2 iwi Good fishery Encompasses the commercial area Ngati Kahungunu Plan Ngati Hinewaka Hapu associations with paua beds are strong

PAU2E: Turakirae to Titahi Bay 2 iwi Good beds Industry advocate opening with 10t TACC Marine Reserve Iwi associations with beds are strong Concerns have been raised by iwi re customary access Currently closed commercial Illegal activity

PAU2F: Titahi Bay to Kai Iwi 7 Iwi Very few reefs identified Mainly surf beaches Paua stocks at Pukerua Bay and Kapiti Island Marine Reserve Illegal activity

PAU2G: Kai Iwi to Tirau Point 10 iwi Beds are known to exist north of Patea Paua reefs are not shown on marine charts – can be googled Marine Reserves 85mm MLS for recs Illegal harvest Hapu associations with beds are strong

The Working Group Recommendations 1. Iwi/Industry Agreement – Develop overarching principles – Develop specific QMA Agreements where supported by iwi – Clarify commercial arrangements 2. Iwi agreements required – Quota Shareholders agreement – who gets what? – Internal swaps and trades possible – Boundaries

Iwi/Industry Generic Agreement Examples of overarching principles: No sectors should be worse off High level agreements regarding management Stock assessments used to inform TAC settings Protection of important mahinga kai Collaborative management strategy – looking after local communities Customary non-commercial fishing interests are managed as a priority Kaitiaki Trust

Specific Agreements Arrangements in each QMA that can be agreed prior to a proposal being submitted to Minister Mataitai Taiapure Areas managed under different strategies i.e customary, commercial, recreation, integrated

Commercial Interests 10% settlement quota shares in each new QMA, up from 8.2% 10% additional quota shares in each new QMA to be allocated to iwi 10% quota shares set aside for Kaitiaki Trust, partnership between iwi and stakeholders Local iwi have rights of first refusal on all “normal quota shares” held in each new QMA. Other iwi have second rights and Te Ohu Group have third right

Allocation Scenario – Settlement Shares Scenario 1 (the default): current settlement shares mirrored in each new QMA (As per MFA): – No practical change on “day one”: no-one worse off – Opportunity consolidate shares within different QMAs by trading, if desired – Te Ohu allocate shares it holds as though no subdivision – Any subsequent changes would need to follow Maori Fisheries Act procedures to carry out sales or exchanges.

Scenario 2: Allocate only to those iwi whose coastline is in each new QMA: – Agreement to change current proportions made up-front (part of Quota Owner Agreement under Fisheries Act) – Avoid need to trade later in order to consolidate shares in “your own back yard” – But: iwi with no coastline interest in PAU2D receive no income from current commercial harvest – Te Ohu allocates shares it holds as per agreement between MIOs – If not agreed by all iwi, revert to Scenario 1. Allocation Scenario – Settlement Shares

Allocation Scenario Scenario 3: Allocate only to those iwi in each new QMA (except retain current proportions in PAU2D): – Iwi continue to hold shares in PAU2D and therefore receive income as now – Allocation for other 5 new QMAs agreed up-front (as for Scenario 3) – Te Ohu allocates shares in PAU2D as though no subdivision; Te Ohu allocates in other QMAs according to iwi agreement – Any changes to PAU2D can be made through sales or exchange provisions of Maori Fisheries Act – If not agreed by all iwi, revert to Scenario 1

Recommend Allocation Methodology Based on feedback from iwi 10% settlement quota - allocation based on current arrangements 10% commercial incentive – allocated only to those iwi in each QMA Quota share sales and swaps anticipated Consolidate Swap with PAU 2D MFA rules suspended in the transition

Iwi Doing Their Own Research? What are the iwi aspirations in each proposed new QMA? Need to do a stock take – how big are the reefs and what is the potential? What areas (within QMAs) have potential to be opened for commercial development? What are the needs of non-customary fishers? Illegal harvest – how big a problem is it? Where are the important customary fishing areas and how can they best be managed?

The Process Moving Forward Feedback to representatives or Te Ohu by Nov 9 th Working group will review recommendations Hui a iwi with MIO and AHCs – 6 December – final recommendations If the proposal is not supported? If the proposal is supported: – Negotiations with industry – Further report back to iwi

PAUAMAC2 - Industry Proposal to Subdivide PAU2 into 6 new Quota Management Areas