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,

Fisheries accounts, a summary of current work in New Zealand and AustraliaPaper for 12th Meeting of the London group on

Environmental Accounting Rome, 17-19 December 2007 Jane Harkness and David Bain

PresentationJane Harkness – Statistics New Zealand

Peter Comisari – Australian Bureau of Statistics

Fish Monetary Stock AccountNew Zealand

Jane Harkness

Overview• Background

– Fish Monetary Stock Account

– Quota Management System QMS

• Data and Methods

– Issues

• Results

• Questions

Overview• Asset value of New Zealand’s 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 TACCSNA1 4500SNA2 315SNA3 32SNA7 200SNA8 1300

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 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.

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 1996-2003

• Asset value = Quota x TACC

• Missing values could be modelled

• Modelled values < 5% of valuation

Declining number of Quota trades

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006Quota 99558 102927 72211 66771 80783 96198 105222 117954 113293 102243 82207ACE NA NA NA NA NA NA 7941 7603 7088 5533 7203

Quota 86423 47214 59025 70148 66309 50241 - 89517 - 82800 -ACE NA NA NA NA NA NA 5924 8011 7453 5423 5884

Quota - 3742 2300 5980 2999 2300 - 2848 - - -ACE NA NA NA NA NA NA 643 19 - 221 -Quota 90707 16118 19060 35691 12022 41400 40595 47265 - - -ACE NA NA NA NA NA NA 1489 839 2055 2446 2395

Quota 90569 67970 64294 66505 47546 78839 100004 77648 - - 96034ACE NA NA NA NA NA NA 4493 5497 6535 6042 6150

Note: values are for demonstration only

SNA7

SNA8

Quota and Ace values for Snapper

SNA1

SNA2

SNA3

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

Net Present Value

r

QpV

ttt

• 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

Illustration of results

SpeciesQuota

management area

Year

Quota transfer value per

tonne (NZ$)

ACE transfer value per

tonne (NZ$)

Discount rate

TACC

Valuation derived

from discounted ACE values

(NZ$ millions)

Source of final

valuation figures

Final valuation

(NZ$ millions)

Hoki HOK1 1996 2674 .. 240000 quota values 642

Hoki HOK1 1997 2224 .. 250000 quota values 556

Hoki HOK1 1998 1590 .. 250000 quota values 398

Hoki HOK1 1999 2321 .. 250000 quota values 580

Hoki HOK1 2000 2047 .. 250000 quota values 512

Hoki HOK1 2001 3891 .. 250000 quota values 973

Hoki HOK1 2002 3499 331 0.09 200000 735 quota values 700

Hoki HOK1 2003 4076 337 0.09 200000 749 quota values 815

Hoki HOK1 2004 .. 348 0.09 180000 695 ACE values 695

Hoki HOK1 2005 .. 487 0.09 100000 541 ACE values 541

Hoki HOK1 2006 6268 525 0.09 100000 583 quota values 627

Symbol:

.. not available

Issues

• Choice of discount rate

• Reliability of price information

• Comparability of alternate methods for estimating resource rent

ResultsTotal Asset Value of New Zealand’s Commercial Fish

Resource 1996 – 2006 September Years

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

$million

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000Tonnes

Total asset value Total TACC

Results by species

Species 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Hoki 642 556 398 580 512 973 700 815 695 541 627

Rock lobster 368 376 407 374 465 447 591 689 644 585 612

Paua 143 195 208 193 255 245 260 328 355 379 366

Arrow squid 167 140 76 136 132 81 52 103 240 138 298

Orange roughy 233 262 194 208 197 157 237 225 324 300 277

All other species 1188 1197 1002 1109 1081 1195 1346 1441 1607 1788 1646

Total 2740 2726 2285 2600 2641 3097 3185 3601 3866 3730 3825

New Zealand’s Commercial Fish Resource

1996-2006 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 ComisariLondon 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 templateƒ value of net natural growth recorded as 'other

non-market output' in the Production accountƒ value of harvest recorded as 'consumption of

natural capital‘ (depletion) in Production accountƒ 'excess' position represents an addition to (or

subtraction from) value addedƒ operating surplus & saving change by 'excess'

amount in income accountsƒ additions and ‘disposals’ of non-produced non-

financial assets recorded in Capital accountƒ net lending is unchanged