Fisheries accounts, a summary of current work in New Zealand and Australia

1. Fisheries accounts, a summary of current work in New Zealand and Australia Paper for 12th Meeting of the London group on Environmental Accounting Rome, 17-19 December 2007 Jane Harkness and David Bain Presentation Jane Harkness – Statistics New Zealand Peter Comisari – Australian Bureau of Statistics

2. Fish Monetary Stock AccountNew Zealand Jane Harkness

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

4. Overview • Asset value of New Zealand’s commercial fish resource Exclusions • Recreational catch • Customary fishing • Aquaculture • Non QMS species

5. 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

6. 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

7. Quota Management Areas Snapper QMA TACC SNA1 4500 SNA2 315 SNA3 32 SNA7 200 SNA8 1300 Total 6347

8. 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)

9. 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 Fisher’s shares generate ACE. ▼ The TACC for JMA7 is set at 32,000 tonnes, therefore 1 share = 0.32kg. ▼ J Fisher’s 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.

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

11. 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

12. Initial Methodology:Fish Monetary Stock Account 1996-2003 • Asset value = Quota x TACC • Missing values could be modelled • Modelled values < 5% of valuation

13. Declining number of Quota trades

14. Change in Methodology:Fish Monetary Stock Account 1996-2006 • 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

15. Net Present Value • Where • Vt value of the asset at time t • pt unit rent price of fish at time t • Qt quantity of fish catch during time t • r the discount rate

16. Illustration of results

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

18. Results Total Asset Value of New Zealand’s Commercial Fish Resource 1996 – 2006 September Years

19. New Zealand’s Commercial Fish Resource 1996-2006 September years (NZ$ million) Results by species

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

22. Fish Accounts Peter ComisariLondon Group Meeting, December 2007

23. Fish Accounts: relevant standards • 1993 SNA • SEEA - SEEAF

24. 1993 SNA • SNA Fish resources fall into 2 categories: • non-financial produced assets (aquaculture) • non-financial, non-produced, tangible assets (wild fish stocks)

25. 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

26. 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

27. 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

28. 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

29. 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

30. SEEA - fish • Fish are ‘aquatic resources’, part of ‘biological resources’ • Aquatic resources • Cultivated (SNA ‘produced’) • for harvest • for breeding • Non-cultivated (SNA ‘non-produced’)

31. 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

32. 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

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