Fisheries (Foreign Charter Vessels and Other Matters) Amendment Bill

on behalf of the Minister for Primary Industries: I move, That the Fisheries (Foreign Charter Vessels and Other Matters) Amendment Bill be now read a second time. This bill is a crucial piece of legislation. As members will remember, this legislation came from the ministerial inquiry led by the Hon Paul Swain. That inquiry was set up following serious allegations of mistreatment of crew on foreign charter vessels. It made a number of legislative and non-legislative recommendations to improve agency coordination, monitoring, and compliance of foreign charter vessels.

This bill is necessary to ensure that health and safety requirements on all fishing vessels in New Zealand waters are of the highest standard. It will ensure that the human rights of crew working on all fishing vessels are protected, crew are paid appropriately, and, as a consequence, New Zealand maintains its reputation as a responsible and sustainable fishing nation. The mandatory reflagging of all foreign charter vessels to New Zealand will ensure that New Zealand is able to enforce its vessel safety, employment, and fisheries laws on foreign charter vessels fishing in our exclusive economic zone.

This is a robust, unequivocal, and long-term solution that sends a clear message that New Zealand is serious about addressing allegations of mistreatment and underpayment of crew on these vessels. The Primary Production Committee recommended that the bill proceed with some amendments, including exemptions to reflagging. I agree with some of the proposed amendments and consider that they will improve the workability of the new law. I thank the members of the committee and its chair, Shane Ardern, for their work. I also thank the many people and organisations who took the time to make submissions and contributed to the bill’s development through earlier consultation processes.

The select committee proposed four exemptions to reflagging: exemptions for migratory tuna species, exemptions for certain vessel operators holding annual catch entitlement derived from the settlement quota, exemptions for vessels used for fisheries-related research approved by the chief executive of the Ministry for Primary Industries, and exemptions for exceptional circumstances.

I have carefully considered these proposed exemptions. In particular, I have weighed up their impacts on the robustness of the fisheries management regime and on the long-term certainty for the Government, industry, and our international trading partners. I believe that exemptions to reflagging risk undermining the Government’s ability to enforce its labour and vessel safety standards on foreign charter vessels. Under international law, New Zealand has only limited jurisdiction over these matters in our exclusive economic zone. Exemptions have the potential to undermine New Zealand’s international reputation by being seen as weakening the reflagging regime. I recognise that foreign vessels fishing migratory tuna species—in particular, southern bluefin tuna—generate economic benefit to New Zealand. However, if these vessels were to be exempt from reflagging, the Government could continue to have limited jurisdiction over these vessels and would continue to be exposed to this risk. I consider that there will be medium to long term benefits for the domestic fleet in this fishery as domestic vessels take up any capacity lost if vessels choose to not reflag.

The specific exemption for iwi would simply undermine the Government’s objectives in this bill. Our aim is to send a clear message that all vessels operating in New Zealand waters must fully meet New Zealand employment, vessel safety, and fisheries laws. This iwi-specific exemption would risk continued lobbying to overturn the overarching policy. The only exemption that I consider should be retained is the exemption to enable foreign charter vessels to be used for vessels conducting fisheries-related research approved by the chief executive of the Ministry for Primary Industries. There are minimal risks to this exemption, and it will enable the industry to innovate and move to commercially harvest new species in the event that New Zealand vessels are unavailable or unsuitable. The vessels used for research are clearly distinct from commercial fishing vessels, and this is unlikely to be seen as a weakening of New Zealand’s management regime for foreign charter vessels.

Other changes made to the bill include vessel registration consent and new vessel registration suspension powers now applying only to foreign charter vessels and not to New Zealand - owned vessels. I consider that the benefits of these powers being applied to New Zealand - owned vessels do not outweigh the costs and risks outlined by industry members in their submissions. I am confident that the risks posed by New Zealand - owned vessels can be managed without extending the new powers to these vessels.

The bill is also being amended to allow independent review of the chief executive’s powers to suspend vessel registration, which addresses concerns about impacts on natural justice. I am confident that the new opportunity to appeal to the District Court and the High Court on questions of law will be well received. In addition, the proposed powers to cancel vessel registration have been removed from the bill. Existing powers to manage vessels under the Fisheries Act 1996, along with new suspension powers, will enable the Government to effectively manage the risk from all vessels. New cancellation powers will be applied only to vessels not flagged as New Zealand ships or not exempted once reflagging becomes mandatory in May 2016.

Consideration of marine pollution and discharge of waste material by foreign charter vessels has been added as matters that observers can record and the Ministry for Primary Industries chief executive may have regard to when consenting to register foreign charter vessels. I consider that these are appropriate matters to consider when managing the risks from foreign charter vessels while operating in New Zealand waters.

This bill is designed to ensure that acceptable and equitable New Zealand labour standards are applied on all fishing vessels operating in New Zealanders’ fisheries waters. It will protect New Zealand’s international reputation and trade access, and maximise the economic return to New Zealand from our fisheries resources. I believe that this bill goes a long way to ensuring these objectives. I am concerned that exemptions to this bill will weaken it, and that is why I will be introducing a Supplementary Order Paper at the Committee stage that will remove all exemptions apart from the one allowing Ministry for Primary Industries - sanctioned research.

This bill will show the world that New Zealand takes its obligations to safety and employment in our fisheries seriously. I look forward to it receiving the support of the House, and I commend this bill to the House.

Debate interrupted.