Fisheries accounts, a summary of current work in New Zealand and Australia Paper for 12 th Meeting of the London group on Environmental Accounting Rome, December 2007 Jane Harkness and David Bain Presentation Jane Harkness – Statistics New Zealand Peter Comisari – Australian Bureau of Statistics

Fish Monetary Stock Account New Zealand Jane Harkness

Overview Background –Fish Monetary Stock Account –Quota Management System QMS Data and Methods –Issues Results Questions

Overview Asset value of New Zealands commercial fish resource Exclusions Recreational catch Customary fishing Aquaculture Non QMS species

The Quota Management System Began in 1986 –In 1986 the QMS managed 27 species –In 2006 the QMS managed 94 species Theoretical benefits of the system –Sustainable use of resources –Economic efficiency

The Fisheries Management Areas Species are managed in Quota Management Areas 10 Fisheries Management Areas FMAs hoki HOK has one QMA cardinal fish CDL has 10

Snapper QMA TACC SNA SNA2 315 SNA3 32 SNA7 200 SNA Total 6347 Quota Management Areas

Management Mechanisms Quota representing shares for a species in a Quota Management Area Total Allowable Commercial Catch TACC is set annually The Quota holding generates an Annual Catch Entitlement ACE (after 2001)

Quota shares, TACC and ACE JMA7 has 100 million quota shares. J Fisher owns 10,000 quota shares or 0.01 percent of the JMA7 fish stock. On 1 October, J Fishers shares generate ACE. The TACC for JMA7 is set at 32,000 tonnes, therefore 1 share = 0.32kg. J Fishers 10,000 quota shares generate 3,200kg of ACE. J Fisher can catch, or sell the right to harvest, 3.2 tonnes of JMA7 in that year.

Data & Methods Data components –Quota –ACE – Annual Catch Entitlement –TACC – Total Allowable Commercial Catch –Catch statistics

Data & Methods Ministry of Fisheries administer the QMS and assist in interpretation of data Data supply –Supplied by FishServe –Trades of Quota and ACE must be registered –TACC also supplied

Initial Methodology: Fish Monetary Stock Account Asset value = Quota x TACC Missing values could be modelled Modelled values < 5% of valuation

Declining number of Quota trades

Change in Methodology: Fish Monetary Stock Account Previously Quota x TACC Decreasing Quota trades Increase in modelling Now ACE trades used as approximation of resource rent RR Quota x TACC + NPV Assumptions

Net Present Value Where –V t value of the asset at time t –p t unit rent price of fish at time t –Q t quantity of fish catch during time t –r the discount rate

Illustration of results

Issues Choice of discount rate Reliability of price information Comparability of alternate methods for estimating resource rent

Results Total Asset Value of New Zealands Commercial Fish Resource 1996 – 2006 September Years

Results by species New Zealands Commercial Fish Resource September years (NZ$ million)

Future developments Account will be produced regularly Feasibility of publication at QMA rather than species level Data consistency

Fish Accounts Peter Comisari London Group Meeting, December 2007

Fish Accounts: relevant standards 1993 SNA SEEA - SEEAF

1993 SNA SNA Fish resources fall into 2 categories: –non-financial produced assets (aquaculture) –non-financial, non-produced, tangible assets (wild fish stocks)

SNA Fish resources Aquaculture –fish treated as inventories (for harvest) or produced assets (for breeding) –value of natural growth treated as an addition to economic output, as it occurs growth may occur over a number of accounting periods

SNA Fish resources Wild fish stocks –only includes fish stock where ownership rights established/enforced –ownership of certain straddling or migratory fish stocks not enforced excluded from SNA assets –fish must be capable of bringing economic benefits

SNA Fish resources Range of potential production uses: –commercial wild-fish catch –commercial aquaculture –ornamental fish collection –recreational fishing –traditional/customary fishing –ecotourism In practice, measure only production and stocks of aquaculture and wild-fish catch

Draft SNA93rev.1 Fish resources Extends scope to fish stocks on the high sea subject to international agreement on how much individual countries can catch –include only those stocks currently exploited, or likely to be exploited in near future

SEEA Takes a broader view of measuring fish than SNA –all measureable environmental entities of interest –no need to be economic or owned –in practice, tends to cover same stocks as SNA

SEEA - fish Fish are aquatic resources, part of biological resources Aquatic resources –Cultivated (SNA produced) for harvest for breeding –Non-cultivated (SNA non-produced)

SEEA – costs of depletion etc. SEEA allows costs of depletion and degradation to be incorporated into measures of production and income SNA measures these effects in the Other changes in volume of assets account

Valuing fish depletion Depletion of a renewable resource? Propose: value of net natural growth is output stock value decline due to harvest is depletion (CONC) adjusted measures of output, income etc. Aim: to better indicate sustainability of income stream derived from fishing

Valuing fish depletion using SNA accounts as a template ƒvalue of net natural growth recorded as 'other non-market output' in the Production account ƒvalue of harvest recorded as 'consumption of natural capital (depletion) in Production account ƒ'excess' position represents an addition to (or subtraction from) value added ƒoperating surplus & saving change by 'excess' amount in income accounts ƒadditions and disposals of non-produced non- financial assets recorded in Capital account ƒnet lending is unchanged