EXPLANATORY STATEMENT

Select Legislative Instrument 2006 No. 323

Issued by the authority of the Minister for Fisheries, Forestry and Conservation

Fishing Levy Act 1991

Fisheries Management Act 1991

Fishing Levy Regulations 2006

Section 8 of the Fishing Levy Act 1991 (the Levy Act) empowers the Governor-General to make regulations for the purposes of section 6 of the Levy Act. Section 5 of the Levy Act imposes a levy in respect of a fishing concession. Section 6 of the Levy Act provides that the amount of levy imposed on the fishing concession is the amount prescribed by the regulations.

Section 168 of the Fisheries Management Act 1991 (the Management Act) empowers the Governor-General to make regulations for the purposes of the Management Act. Section 110 of the Management Act provides that the levy imposed by the Levy Act is due and payable at a time or times ascertained in accordance with the regulations made under the Management Act.

"Fishing Concession" is defined under the Levy Act and the Management Act to mean, among other things, a fishing permit and a statutory fishing right (SFR). A SFR is defined under the Management Act to mean, among other things, a right to take a particular quantity of fish, or a right to a particular proportion of the fishing capacity that is permitted by or under a plan of management for a fishery.

The Fishing Levy Regulations 2006 (the Regulations) repeal and replace the Fishing Levy Regulations 2005 (the 2005 Regulations) and relevant amending regulations, and set the amounts of levy payable on fishing concessions that relate to the 2006-07 financial year in fisheries managed by the Australian Fisheries Management Authority (AFMA) on behalf of the Commonwealth. Each year the levy regulations are amended in accordance with the financial year budget cycle. The Regulations also specify the timeframes for when those amounts of levy are due and payable.

The Regulations, like the 2005 Regulations, are made under both the Levy Act and the Management Act.

In accordance with government policy and legislation, AFMA recovers from the holders of fishing concessions (operators) in each fishery:

·        the costs of management attributable to the operators' activities, such as the costs of developing and implementing management arrangements, surveillance costs and costs of running the management advisory committees (MACs); and

·        the fishing industry's contribution to the Fisheries Research & Development Corporation (FRDC) to fund research in each fishery. This contribution is known as the research component and is recovered under the Levy Act in accordance with the Primary Industries and Energy Research and Development Act 1989 and the Fisheries Research and Development Corporation Regulations 1991. A part of the research component is recovered from each fishery, with that part being collected from each concession holder in the fishery.

Other costs, such as the costs of prosecutions, are funded by the Commonwealth.

AFMA recovers the management costs and the research component in the form of a levy paid to the Commonwealth under the Levy Act and the Management Act, which is then paid to AFMA under arrangements provided for in the Fisheries Administration Act 1991.

The Regulations set the levy for those fisheries described in Part 2 of the Fisheries Management Regulations 1992 or for which a plan of management has been determined in accordance with section 17 of the Management Act.

The budgets on which the rates of levy for each fishery were based were prepared in consultation with either:

• the MAC established by AFMA for the fishery; or

• if no MAC has been established for the fishery, the consultative body that AFMA liaises with when consulting about management of the fishery.

Industry is concern by increases in fishery budgets, particularly in the current environment of restructuring. The Australian Government anticipated this and has provided levy relief to reduce the impact of these increases. AFMA took the outcome from this consultation into consideration when determining the rates of levy for each fishery.

The Australian Government announced in December 2005 that $15 million would be given to AFMA as a levy offset to reduce AFMA management levies in 2006-07, 2007-08 and 2008-09 as part of the Australian Government’s Securing Our Fishing Future package. In the first year 2006-07, $7 million has been allocated to AFMA as a levy offset to lessen the impact on concession holders remaining after those participating in the Business Exit Scheme have departed the fisheries. It is also to offset the cost of necessary additional management actions associated with the Ministerial Direction issued on 16 December 2005 to AFMA under the Fisheries Administration Act 1991 (Ministerial Direction).

The Australian Government Department of Agriculture, Fisheries and Forestry (DAFF) has provided to AFMA the number of concessions in each fishery that have been accepted as successful tenders in round 1 of the Business Exit Scheme. AFMA has determined the levy shortfall this will cause for each fishery and has applied part of the $7 million offset to cover the shortfall. Essentially this means working out the levy that each person selling to the buyback would have paid had they remained in the fishery.  The remainder of the offset is then allocated proportionally to reduce the levy for all fisheries.

This scheme has resulted in the total collectable AFMA management levies for 2006-07 to be about $6,359,441 which is 50% less than in 2005-06. While no levy has increased, some fishery budgets prior to the levy offset applying did increase.

Neither the Levy Act nor the Management Act specify any conditions that need to be met before the power to make the proposed Regulations may be exercised. The Office of Regulation Review (ORR) advised AFMA that a Regulation Impact Statement was not required for the Regulations (ORR ID 8701). This is because the amendments are of a minor or machinery nature and do not substantially alter existing arrangements.

The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003.

Details of the Regulations, including rates of levy and when the levy is due and payable, are set out below. The Regulations commenced the day after they were registered on the Federal Register of Legislative Instruments.

 

Details of the FISHING LEVY REGULATIONS 2006 are set out below.

Part 1 Preliminary

Regulation 1 provides for the Regulations to be cited as the Fishing Levy Regulations 2006.

Regulation 2 provides that the Regulations commence on the day after they are registered in the Federal Register of Legislative Instruments.

Regulation 3 repeals the Fishing Levy Regulations 2005 (the 2005 Regulations).

Regulation 4 defines terms used in the Regulations. In particular, subregulation 4 (1) defines:

·        "invoice date" for levy or an instalment of levy payable for a fishing concession to mean the date of issue mentioned on the invoice issued by Australian Fisheries Management Authority (AFMA) for the levy or instalment;

·        "Levy Act" to mean the Fishing Levy Act 1991;

·        "Management Act" to mean the Fisheries Management Act 1991; and

·        "Management Regulations" to mean the Fisheries Management Regulations 1992.

Subregulation 4(2) provides that unless the contrary intention appears, any words or expressions used in the Regulations and in the Management Regulations have the same meaning in the Regulations as in the Management Regulations.

Subregulation 4(3) provides that an expression that is used in the Regulations in relation to a fishery for which there is a plan of management made under section 17 of the Act, and is also used in that plan, has the same meaning in the Regulations as in the plan, unless a contrary intention appears.

Regulation 5 provides that where the Regulations use the name of a fishery corresponding to one described in the Management Regulations or in a plan of management, the reference is to the fishery described by those Regulations or that plan. This ensures that levy provisions in the Regulations apply to areas consistent with those covered by other management arrangements.

Note 1 lists all the fisheries currently subject to the Management Regulations with the exception of the Christmas Island and Cocos (Keeling) Islands Fishery, which is now managed by the Australian Government Department of Transport and Regional Services, and the pelagic longline sector which is now managed under the relevant AFMA tuna fisheries.

Note 2 lists all the fisheries currently managed under a plan of management made under section 17 of the Management Act.

 

Part 2 Bass Strait Central Zone Scallop Fishery

Regulation 6 defines a term used in the Part.

Regulation 7 sets the levy payable for a Bass Strait Central Zone Scallop Fishery (BSCZSF) commercial scallop quota SFR in force on or after 1 January 2007 as $0.1555.

The fishery has been managed under SFRs granted under the Bass Strait Central Zone Scallop Fishery Management Plan 2002 since 1 January 2005.

The levy includes a research component of $0.01. “Research component” means the proportion of the total levy that is collected as the research component for the purposes of the Primary Industries and Energy Research and Development Act 1989 and which will be specified in subregulation 4A(2) of the Fisheries Research and Development Corporation Regulations 1991.

In accordance with Australian Government policy, AFMA recovers the costs of management which have been allocated between industry and government in accordance with AFMA’s Cost Recovery Impact Statement (CRIS) that was certified by the AFMA Board and endorsed by the Minister for Fisheries, Forestry and Conservation in 2004.

The 2006-07 industry budget for the fishery has decreased from $320,483 to $190,178 in response to the setting of a zero total allowable catch (TAC) for the fishery. After allowing for savings of $51,112 from 2005-06, the total amount to be collected as management levies in 2006-07 (excluding the FRDC component) would be $139,066. Savings were realised in expenditure last year due to staff vacancies, lower logbook data entry costs and because printing of a Bycatch Action Plan and management arrangements booklet were not required in light of the zero TAC.

The levy offset has reduced the management levy to be collected by a further 45%.

Regulation 8 provides that levy is payable on 29 January 2007 or 28 days after the invoice date for the levy, whichever is later.

 

Part 3 Coral Sea Fishery

Regulation 9 defines a term used in the Part.

Regulation 10 sets the levy payable for a Coral Sea Fishery fishing permit in force on or after the commencement of the Regulations and on or before 30 June 2007.

All permit holders pay a base (Tier 1) levy plus an additional amount for each sector of the fishery to which the permit relates (Tier 2). The differential rates of Tier 2 levy have been calculated to accurately reflect the management costs incurred in relation to each sector of the fishery. The Tier 1 levy is $796.80 for each permit including a research component of $148.78. The Tier 2 amounts are:

• for the aquarium fish sector - $207.68;

• for the lobster and/or trochus sectors - $836.72;

• for the line sector - $2,060.39;

• for the trawl sector - $2,930.75; and

• for the sea cucumber sector - $2,821.10.

The decrease in levy payable in all sectors is due to a budget decrease of $5,625 and savings of $34,494 from the last financial year which was largely due to reduced costs of staff, data management and compliance.

The levy offset has reduced the management levy to be collected by a further 45%.

Regulation 11 provides that levy is payable on 31 March 2007 or 28 days after the invoice date for the levy, whichever is the later.

 

Part 4 Eastern Skipjack Fishery

Regulation 12 defines a term used in the Part.

Regulation 13 sets out the levy payable for an Eastern Skipjack Fishery fishing permit in force on or after the commencement of the Regulations and on or before 30 June 2007.

The levy amount is $6,528.33 per permit, including a research component of $52.

The 2006-07 levy base for permits in the skipjack fisheries is 226% higher than in 2005-06. The large increase is explained by a significant increase in staff and consultant costs necessary for the development of a plan of management for both the Eastern and Western Skipjack Fishery.

The levy offset has reduced the management levy to be collected by a further 45%.

Regulation 14 provides that levy is payable on 31 May 2007 or 28 days after the invoice date for the levy, whichever is the later.

 

Part 5 Eastern Tuna and Billfish Fishery

Regulation 15 defines a term used in the Part.

Regulation 16 sets the levy payable for an Eastern Tuna and Billfish Fishery (ETBF) fishing permit in force on or after the commencement of the Regulations and on or before 30 June 2007.

The ETBF is divided into the following sectors (defined at Regulation 16) based on area and method of fishing:

(1)       ML Sector – Minor Line

(2)       PL Sector – Pole

(3)       PLL (Sub-area 1) Sector – Historic

(4)       PLL (Sub-area 2) Sector – Northern Inshore

(5)       PLL (Sub-area 4) Sector – Northern Offshore

(6)       PLL (Sub-area 6) Sector – Northern Offshore

(7)       PLL (Sub-area 7) Sector – Southern Inshore North

(8)       PLL (Sub-area 8) Sector – Southern Offshore

(9)       PLL (Sub-area 9) Sector – Area E

(10)   PLL (Sub-area 10) Sector – Southern Offshore West

(11)   Area Z

A fishing permit for the fishery allows an operator to fish in one or more sectors.

The amount of levy that is payable is set out in Table 16 of the Regulations for the sector that is included as a condition on a fishing permit. If the permit authorises fishing in two or more sectors of the fishery, the amount payable is the greater or greatest amount of levy shown in Table 16 for each of the sectors. The levy amount set in the Regulations is calculated on the basis of the cost of managing the fishery and includes a research component. The management costs include staffing costs, costs associated with the development of long-term management arrangements and a Bycatch Action Plan, as well as the normal costs associated with managing a fishery.

 

The ETBF industry budget for 2006-07 has increased by approximately 9.3%. The majority of the cost increase can be attributed to the implementation of the Eastern Tuna and Billfish Fishery Management Plan 2005 and the Ministerial Direction.

 

Key cost increases to the industry budget are:

 

·        $59,951 (26.3%) increase in salaries and on-costs directly related to increased staff time to implement the Eastern Tuna and Billfish Fishery Management Plan 2005 and Ministerial Direction;

·        $120,558 (55.9%) increase in licensing and quota monitoring costs related to the significant workload of decision making and administration of the process to grant SFRs under the plan and the expected continuation of time intensive real-time management arrangements, such as Southern Bluefin Tuna (SBT) zones;

·        $28,198 (10.6%) increase in compliance to administer Catch and Disposal Records and as a result of some State-based cost increases; and

·        $92,348 (14.1%) as a result of increased observer coverage in response to the Ministerial Direction and SBT zones.

 

The increases are offset by some cost reductions such as MAC costs ($34,632, or 17.5%). As at the end of 2005-06, there was a surplus of $294,601 in the ETBF industry budget. The MAC has recommended that this surplus be retained for expenditure on special initiatives in future years.

The levy offset has reduced the management levy to be collected by a further 45%.

Table 16 specifies the following levy amounts:

 

	Levy Amount ($ per permit authorising fishing in that sector)
Sector	Total Levy Amount ($)	Research Component Amount ($)
ML Sector	1,467.54	580
PL Sector	1,373.30	428
PLL (Sub-area 1) Sector	7,195.71	602
PLL (Sub-area 2) Sector	6,447.88	602
PLL (Sub-area 4) Sector	3,583.70	602
PLL (Sub-area 6) Sector	3,423.82	602
PLL (Sub-area 7) Sector	3,423.82	602
PLL (Sub-area 8) Sector	3,423.82	602
PLL (Sub-area 9) Sector	2,210.76	602
PLL (Sub-area 10) Sector	647.77	602
Area Z	647.77	602

Regulation 17 provides that levy is due and payable either in full or in two equal instalments. Either the full amount or the first instalment is payable by the later of 29 January 2007 or 28 days after the invoice date for the instalment. The second instalment, if any, is payable by the later of 10 April 2007 or 28 days after the invoice date for the instalment.

Under subregulation 17(5), if a fishing permit is in force on the 10 April 2007 but not on 29 January 2007, the levy is due 28 days after the invoice date for the levy.

 

Part 6 Heard Island and McDonald Islands Fishery

Regulation 18 defines the terms used in the Part.

Regulation 19 sets the levy payable for a Heard Island and McDonald Islands (HIMI) Fishery SFR in force on commencement of the Regulations.

The levy payable is $8.54 per SFR (including a research component of $1.10).

The industry budget for the HIMI Fishery in 2006-07 is $800,205 excluding the research component. The overall levy base for this fishery has decreased by around 3%. This is due to reduced compliance costs that occurred as the result of an under expenditure in 2004-05 being reconciled with the service provider. The total value of the industry survey is $471,455 which is recoverable from industry. Industry has supported this approach. Observer administration costs were over budget because of extra sea days in this fishery thereby increasing the allocation to the HIMI Fishery.

The levy offset has reduced the management levy to be collected by a further 45%.

Regulation 20 provides that levy is payable either in full or in two equal instalments. Either the full amount of the first instalment is payable by 15 March 2007 or 28 days after the invoice date for the instalment, whichever is later. The second instalment, if any, is payable by 15 June 2007 or 28 days after the invoice date for the instalment, whichever is later.

 

Part 7 Informally Managed Fisheries

Regulation 21 defines the terms used in the Part.

Regulation 22 sets the levy for an Informally Managed Fishery fishing permit (IMFP) in force on or after the Regulations commence and on or before 30 June 2007.

The levy amount is:

·        $577 for a permit authorising trawl including a research component of $60;

·        $1,916.99 for a permit authorising the use of purse seine for scalefish species including a research component of $60; and

·        $1,043.31 for a permit authorising purse seining for pilchards and sandy sprat only, including a research component of $60.

 

The total levy to be collected for IMFPs that allow purse seine fishing is $13,156.50 (including the research component). This represents a 204% increase in total amount to be collected as management levies from 2005-06 (including the research component).

 

Increased management costs have been incurred for additional staff time needed to rationalise management arrangements for IMFPs in line with the Australian Government’s preference for managing fisheries using output controls in the form of secure and tradeable rights.

 

Due to differences in the nature of fishing access authorised by particular purse seine IMFPs, different permits have attracted varying management costs. Those IMFPs (three in total) that provide broad access to ‘scalefish’ have attracted 85% of the total management levy owing while the remaining 15% of costs have been attributed to the single IMFP providing access to pilchards and sandy sprat only.

The levy offset has reduced the management levy to be collected by a further 45%.

Regulation 23 provides that the levy for the informally managed fishery is payable on
29 January 2007 or 28 days after the invoice date for the levy, whichever is the later.

 

Part 8 Macquarie Island Fishery

Regulation 24 defines a term used in the Part.

Regulation 25 sets the levy payable for a Macquarie Island Fishery (MIF) fishing permit in force on or after the commencement of the Regulations and on or before 30 June 2007.

The levy payable is $60,932 (including a research component of $5,218) per fishing permit.

The industry budget for the MIF in 2006-07 is $135,334 excluding the research component. Some of the levy costs associated with the development of the Macquarie Island Toothfish Fishery Management Plan 2006 have been deferred and will be collected from the eventual participants in the fishery following SFRs coming into effect – expected to be 1 July 2007. The deferment of the levy for the development of the management plan was also adopted in the previous year. This amounts to $112,334 for this year. As a result the amount to be collected for 2006-07, including 2005-06 excess expenditure, is $100,684 including the research component (currently there is only one permit holder in the fishery).

The levy offset has reduced the management levy to be collected by a further 45%.

Regulation 26 provides that levy is payable 28 days after the invoice date for the levy.

 

Part 9 Northern Prawn Fishery

Regulation 27 defines a term used in the Part.

Regulation 28 sets the levy payable for a Northern Prawn Fishery (NPF) SFR in force on 12 December 2006, or if the Regulations commence after that date, then the date of commencement.

The levy payable is $25.74 per SFR, which includes a research component of $5.63.

 

The industry component of this fishery’s budget for 2006-07 has increased slightly compared to that of 2005-06. This is largely as a result of the increase in the research budget for the fishery-independent survey and an increase in observer coverage. The FRDC component (average of three years) has decreased slightly as a result of a lower fishery gross value of production (GVP) compared to last year.

After allowing for excess receipts and the above additional research contribution, the management levies collectable in 2005-06 (excluding the FRDC levy) will be $1,971,050. This accounts for excess receipts of $396,598 that Northern Prawn Fishery Management Advisory Committee (NORMAC) agreed for AFMA to retain for directed research not budgeted for in the 2006-07 financial year. As occurred in 2004-05, the FRDC levy component will include an additional $100,000 for the Memorandum of Understanding (MOU) between FRDC and CSIRO.

The levy offset has reduced the management levy to be collected by a further 45%.

Regulation 29 provides that levy is payable on 29 January 2007 or 28 days after the invoice date for the levy, whichever is the later.

 

Part 10 North West Slope Fishery

Regulation 30 defines a term used in the Part.

Regulation 31 sets the levy payable for a North West Slope Fishery (NWSF) fishing permit that is in force on or after the commencement of the Regulations and on or before 30 June 2007.

The amount of levy payable is $5,230.71 per fishing permit, which includes a research component of $422.14.

The industry component of the NWSF budget has increased from $78,690 to $107,109. However, the 2006-07 levy (excluding the research component) has been reduced to $61,264 after allowing for the under-expenditure in 2005-06 of $45,845. The 2005-06 budget was underspent due to reduced salary costs because the MAC executive officer position remained vacant for much of the financial year. Salary costs will increase in 2006-07 to $31,684 as staff allocation will increase from 7.5% to 25%. Unspent research funds of $16,000 are to be refunded to industry as funds will no longer be rolled over to the next financial year. Logbook and data management expenditure was underspent due to low effort in the fishery.

The levy offset has reduced the management levy to be collected by a further 45%.

Regulation 32 provides that levy is payable on 29 January 2007 or 28 days after the invoice date for the levy, whichever is the later.

 

Part 11 Small Pelagic Fishery

Regulation 33 defines a term used in the Part.

Regulation 34 sets the levy payable for a Small Pelagic Fishery (SPF) fishing permit in force on or after the date these Regulations come into effect and on or before 30 June 2007.

The amount of levy payable is $4,107.83 per fishing permit or fishing permit package, including a research component of $88.

The total levy to be collected for the SPF in 2006-07 (excluding the research component) is $563,359. This amount includes:

i)                    the 2006-07 SPF industry budget of $446,950;

ii)                   excess expenditure in 2005-06 of $217,348;

iii)                 an additional $13,750 that must be collected for research to cover AFMA’s contribution to the FRDC 2002/061 project;

iv)                 a total of $109,102 research commitments and expenditure for 2005-06 already accounted for in the 2006-07 budget; and

v)                  levy payments owing for 2005-06 of $5,587 collected in July and August 2006.

The total excess expenditure for 2005-06, less research costs is largely attributed to costs associated with the development of a plan of management, unbudgeted observer costs and approved but unbudgeted positions in the Licensing and Quota Management area to establish and manage new operating policies and e-business initiatives.

The levy offset has reduced the management levy to be collected by a further 45%.

Regulation 35 provides that levy is payable on 31 March 2007 or 28 days after the invoice date for the levy, whichever is the later.

 

Part 12 Southern and Eastern Scalefish and Shark Fishery

Subregulation 36(1) defines the terms used in the Part.

The Southern and Eastern Scalefish and Shark Fishery (SESSF) incorporates the management of the previously individually managed East Coast Deep Water Zone Fishery (ECDWZF - now known as ECDT), Great Australian Bight Trawl Fishery (GABTF), Gillnet Hook and Trap Fishery (GHTF), South East Trawl Fishery (SETF) and the Commonwealth Victorian Inshore Trawl Fishery (now known as the Victorian Coastal Waters Sector (VCW)) under a single management framework; the Southern and Eastern Scalefish and Shark Fishery Management Plan 2003 (SESSF Management Plan).

Under the SESSF Management Plan the fishery is managed under SFRs and permits for different sectors of the SESSF.

At industry’s request the budget for the SESSF fishery will continue to be managed in terms of the previous individually managed fisheries. As a result the SESSF budget is a combined total of the ECDT, GABTF, GHTF, SETF, and VCW budgets. It should be noted however, that while the Fishing Levy Regulations 2006 detail levy information by sector permits, boat SFRs and quota SFRs sequence, this document discusses the levy amounts to be collected in terms of individual fishery budgets with a view to explaining proposed increases or decreases in levy.

Subregulations 43(3) and 50(3) provide that all SESSF levies mentioned in subregulations 37(2), 38(2), 39(2), 40(2), 41(2), 42(2), 44(2), 45(2), 46(2), 47(2), 48(2), and 49(2) are due and payable either in full or in two equal instalments. Either the full amount or the first instalment is payable by 29 January 2007 or 28 days after the invoice date for the instalment, whichever is later. The second instalment, if any, is payable by 14 May 2007 or 28 days after the invoice date for the instalment, whichever is later.

·        East Coast Deep Water Zone Fishery Budget

Subregulation 37(1) defines a term used in regulation 37.

Subregulation 37(2) sets the levy payable for an SESSF ECDT fishing permit in force on or after 1 January 2007 and on or before 30 June 2007.

The levy payable is $234.92 which includes a research component of $108.00.

The industry component of the initial ECDT budget decreased from $58,287 to $42,025. However, the budget was reduced by $36,638 from excess receipts in 2005-06 and further reduced due to late levy payments of $1,228 collected in July and August 2006.

The levy offset has reduced the management levy to be collected by a further 45%.

·        Great Australian Bight Fishery Budget

Subregulation 39(1) defines a term used in the regulation 39.

Subregulation 39(2) sets the levy payable for a SESSF GABT quota species fishing permit in force on or after 1 January 2007 and on or before 30 June 2007. Subregulation 39 (2) sets the levy payable for a SESSF GABT Boat SFR in force on 1 January 2007. SESSF GABT quota species fishing permits authorise the take of shark species that are managed under a quota system consistent with the GHTF and SETF.

The levy payable for a SESSF GABT quota species permit is the total of $0.1415 for each quota unit of school shark, $0.1754 for each quota unit of gummy shark, $0.1123 for each quota unit of sawshark, and $0.0569 for each quota unit of elephant fish family mentioned on the permit at the time the permit is granted. The research components of the respective levy amounts are as follows: $0.0102 for school shark, $0.0102 for sawshark, $0.0191 for gummy shark and $0.0047 for elephant fish.

The levy payable for a SESSF GABT Boat SFR is $47,006.25, and does not include a research component as the research levy is now collected through quota SFR that were first granted in 2005.

 

The 2006-07 industry budget for GABTF is $894,282 an increase of 41% on 2005-06. The increase is due to:

 

o       an overspend of salaries and related overheads in 2005-06 because of the need to amend the SESSF Management Plan and allocate quota SFRs during 2005-06;

o       the GAB was overspent on logbooks due to an increase in logbook data entry costs. This is a direct result of more data from the GABTF because of increased fishing effort in the fishery;

o       during the 2005-06 year GABMAC and the AFMA Board agreed to conduct a second year of a Fishery Independent Survey (FIS) for the GABTF. This was not included in the 2005-06 budget and the Board agreed to the MAC recommendation to overspend the budget to conduct the survey. The same process occurred for the first survey in 2004-05 which was unbudgeted as well. An expenditure of $95,000 from the first survey occurred in the 2005-06 financial year, which was unbudgeted. AFMA has changed the way it collects research levies and even though not all of the $205,000 for the second FIS was expended in the 2005-06 year, the full amount is being recovered to cover future committed expenditure; and

o       a third FIS, budgeted at $82,000 is included in the current 2006 -07 budget.

The levy offset has reduced the management levy to be collected by a further 45%.

·        Gillnet Hook and Trap Fishery Budget

 

Subregulations 38(1), 40(1), 42(1), 43(1), 44(1), 45(1), 46(1) and 47(1) define terms used in their respective regulations.

 

Levies relating to the GHT Sector of the SESSF are set out as follows:

 

·        SESSF Gillnet Boat SFR (subregulation 45(2));

·        SESSF Scalefish Hook Boat SFR (subregulation 46(2)); and

·        SESSF Shark Hook Boat SFR (subregulation 47(2))

 

where the relevant SFR is in force on 1 January 2007; and

 

·        SESSF SEQ quota species fishing permit (subregulation 38(2));

·        SESSF GHT coastal waters fishing permit (subregulation 40(2)); and

·        SESSF GHT Trap fishing permit (subregulation 42(2)),

 

where the relevant permit is in force on or after 1 January 2007 and on or before 30 June 2007.

The levy payable for a Gillnet Boat SFR is $473.82, a Scalefish Hook Boat SFR $1,292.64, a Shark Hook Boat SFR $556.38, a SESSF GHT fishing permit $381.52 and a GHT Trap fishing permit $1,306.76. There is no research levy being collected on holding a boat SFR or permit this year as it is being collected against quota SFRs.

 

Subregulation 40(1) provides that where an operator holds a SESSF gillnet, hook and trap (GHT) fishing permit that is linked to a SESSF Boat SFR by a permit condition, levy is not imposed on the permit.

Subregulations 38(2) and 40(2), respectively sets the levy payable for SESSF GHT fishing permit or SESSF SEQ quota species fishing permit that contain shark species. The levy is calculated by multiplying the number of quota units of each species mentioned on the SESSF GHT fishing permit or SESSF GHT quota species fishing permit at the time that the permit is granted, by the rate for the relevant quota species stated in subregulation 38(2). The rates for the quota species are:

 

Species	Amount for each quota unit on fishing permit	Including the following Research component
School shark	$0.1415	$0.0102
Gummy shark	$0.1754	$0.0191
Sawshark	$0.1123	$0.0102
Elephant fish family	$0.0569	$0.0047

For SESSF quota species SFRs provided at subregulation 49(2) the amount due for each species in force on 1 January 2007 is calculated by the amount for the relevant quota species stated in the Regulations. The rates for the quota species are set out in Table 49 as:

 

	Levy Amount (per Quota SFR)
Species	Total 2006-07		2006-07 Research Component
Bight Redfish	$0.0061		$0.0061
Blue eye trevalla	$0.0815		$0.0162
Blue grenadier	$0.0462		$0.0061
Blue warehou	$0.0138		$0.0008
Deepwater flathead	$0.0069		$0.0069
Flathead	$0.0550		$0.0072
Gemfish — gemfish eastern sector	$0.0298		$0.0038
Gemfish — gemfish western sector	$0.0330		$0.0043
Jackass morwong	$0.0245		$0.0030
John dory	$0.1024		$0.0119
Mirror dory	$0.0397		$0.0052
Ocean perch	$0.0542		$0.0070
Orange roughy — (Albany and Esperance)	$0.0108		$0.0108
Orange roughy — orange roughy (eastern zone)	$0.0085		$0.0011
Orange roughy (southern zone)	$0.0012		$0.0002
Orange roughy (Cascade Plateau zone)	$0.0723	$0.0095
Orange roughy (western zone)	$0.0158	$0.0021
Pink ling	$0.1326	$0.0241
Redfish	$0.0403	$0.0044
Royal red prawn	$0.0180	$0.0019
School whiting	$0.0082	$0.0011
Silver trevally	$0.0110	$0.0011
Spotted warehou	$0.0911	$0.0118

 

The 2006-07 industry budget for the GHTF is $1,270,700 a decrease of 11% from 2005-06. The decrease is due to:

 

o       two research projects not being included in the budget; the school shark survey and the aging of ribaldo to enable estimates of fishing mortality and natural mortality which will be used to reduce uncertainty in the TAC setting process in future. The industry contribution of these projects is $154,400; and

o       MAC costs were underspent in 2005-06 as the planned June 2006 meeting was delayed until 4-5 July 2006 to allow consideration of industry workshops in response to the Ministerial Direction.

The levy offset has reduced the management levy to be collected by a further 45%.

·        Commonwealth Trawl Sector Budget

Subregulation 48(1) defines a term used in regulation 48.

Subregulation 48(2) sets the levy payable for a SESSF Trawl Boat SFR in force on 1 January 2007.

The levy payable for a SESSF Trawl Boat SFR is $3,886.28 and does not include a research component.

 

The 2006-07 industry budget for this fishery is $2,241,256 a decrease of 10% on 2005-06. The decrease is due to:

o       excess receipts and $52,616 collected in July and August 2006;

o       logbook and data management costs were significantly below budget as logbook data entry costs were lower than anticipated. In addition, the total logbook area was lower than budget as there were staff vacancies throughout the year;

o       compliance was under budget as a result of the acquittals received for the 2004-05 year for the state reimbursement program; and

o       the MAC costs were under budget due to the costs of one two-day meeting being attributed to the ecological risk assessment (ERA) process.

The levy offset has reduced the management levy to be collected by a further 45%.

·        Commonwealth Victorian Coastal Waters Sector Budget

Subregulation 41(1) defines a term used in regulation 41.

Subregulation 41(2) sets the levy payable for a SESSF VCW (previously referred to as the Commonwealth Victorian Inshore Trawl Fishery) fishing permit in force on or after 1 January 2007 and on or before 30 June 200 7.

The levy payable is $510.18, including a research component of $60, which is a decrease of 34% from 2005-06.

The VCW industry component of the budget has decreased from $30,794 to $16,483. The decrease is due to an under-expenditure of $6,643 from 2005-06.

The levy offset has reduced the management levy to be collected by a further 45%.

 

Part 13 Southern Bluefin Tuna Fishery

Regulation 51 defines a term used in the part.

The Southern Bluefin Tuna Fishery (SBTF) is managed under the Southern Bluefin Tuna Fishery Management Plan 1995 (the SBTF Plan). The SBTF Plan provides for management of the fishery under SFRs, where an SFR allows, during a season, for the taking of a quantity of SBT determined by AFMA. There are 5,324,422 individual SFRs in the fishery. Each year AFMA’s management costs attributable to SFR holders are divided equally among the total number of SFRs to calculate individual levy fees for each season. These fees are then recovered from SFR holders.

Regulation 52 sets the levy payable in the fishery for a SFR in force on 15 January 2007. The levy amount is $0.1739 per SFR, the research component of which is $0.0187.

 

When additional expenditure of $86,299 from the last financial year is added to the industry budget, the total amount to be collected as SBT Fishery management levies in 2006-07 (excluding the research component) will be $1,503,784 which is a 6.97% increase from 2005-06.

The increase in total levy payable is due to a number of factors detailed below:

·        unbudgeted contractor costs as part of Convention for the Conservation of Southern Bluefin Tuna (CCSBT) independent monitoring review;

·        change in responsibilities for the trade information scheme (TIS) process and additional data entry associated with the CCSBT independent monitoring review;

·        licensing and quota management costs increase due to implementation of new electronic business program and additional quota monitoring developmental costs which were not originally budgeted for; and

·        an additional number of unbudgeted observer days were conducted in the fishery.

The levy offset has reduced the management levy to be collected by a further 45%.

Regulation 53 provides that levy is payable on 12 February 2007, or within 28 days after the invoice date for the instalment, whichever is later.

 

Part 14 Southern Squid Jig Fishery

Regulation 54 defines a term used in the Part.

Regulation 55 sets the levy for gear SFRs in force on or after the commencement of the Regulations and in force on 1 January 2007.

The levy amount is $17.25 per gear SFR, the research component of which is $0.53 per gear SFR.

The 2006-07 industry budget for the fishery has increased from $195,422 to $220,392. After allowing for excess expenditure from the 2005-06 financial year and a shortfall in levy collected in 2005-06, the total amount to be collected as management levies in 2006-07 (excluding the FRDC component) will be $243,452. The levy amount has increased by $23,060 due to salary and licensing costs associated with drafting and implementing the Southern Squid Jig Fishery Management Plan 2005 and this amount will be recovered this year.

The levy offset has reduced the management levy to be collected by a further 45%.

Regulation 56 provides that levy for the fishery is payable on 28 February 2007 or 28 days after the invoice date for the levy, whichever is later.

 

Part 15 South Tasman Rise Fishery

Regulation 57 defines a term used in the Part.

Regulation 58 sets the levy payable for a South Tasman Rise Fishery fishing permit in force on or after 1 March 2007 and on or before 30 June 2007.

The levy payable is $368.86 per permit (including a research component of $60).

This is a 72% decrease from 2005-06. The industry budget for the fishery for 2006-07 is $10,759 compared to $38,118 in 2005-06. The decrease is due to deducting surplus funds from 2005-06.

The levy offset has reduced the management levy to be collected by a further 45%.

Regulation 59 provides that levy is payable on 31 March 2007 or 28 days after the invoice date for the levy, whichever is later.

 

Part 16 Western Deep Water Trawl Fishery

Regulation 60 defines a term used in the Part.

Regulation 61 sets the levy for the Western Deep Water Trawl Fishery fishing permit in force on or after the commencement of the Regulations and on or before 30 June 2007.

The levy amount is $3,198.64 per permit, including the research component of $137.27.

The 2006-07 industry budget for the fishery has increased from $90,448 to $115,309. However, the 2006-07 levy (excluding the research component) has been reduced to $61,290 after allowing for the under-expenditure in 2005-06 of $54,019. The 2005-06 budget was underspent due to reduced salary costs because the MAC executive officer position remained vacant for much of the financial year. Salary costs will increase in 2006-07 to $31,684 as staff allocation (Band 3 position) will increase from 7.5% to 25%. Unspent research funds of $16,000 are to be refunded to industry as funds will no longer be rolled over to the next financial year. Logbook and data management expenditure was underspent due to low effort in the fishery.

The levy offset has reduced the management levy to be collected by a further 45%.

Regulation 62 provides that levy is payable on 29 January 2007 or 28 days after the invoice date for the levy, whichever is later.

 

Part 17 Western Skipjack Fishery

Regulation 63 defines a term used in the Part.

Regulation 64 sets out the levy payable for a Western Skipjack Fishery fishing permit in force on or after the commencement of the Regulations and on or before 30 June 2007.

The levy amount is $6,528.33 per permit, including a research component of $52.

The 2006-07 levy base for permits in the skipjack fisheries is 226% higher than in 2005-06. The large increase is explained by a significant increase in staff and consultant costs in the development of a plan of management for both the Eastern and Western Skipjack Fishery.

The levy offset has reduced the management levy to be collected by a further 45%.

Regulation 65 provides that levy is payable on 31 May 2007 or 28 days after the invoice date for the levy, whichever is the later.

 

Part 18 Western Tuna and Billfish Fishery

Regulation 66 defines a term used in the Part.

Regulation 67 sets the rate of levy for a fishing permit in the Western Tuna and Billfsih Fishery (WTBF) in force on or after the commencement of the Regulations and on or before 30 June 2007. All permit holders within the WTBF will be levied the same research component. The levy amount is:

·        $1,991 for a permit authorising pelagic longlining, including a research component of $108.00;

·        $1,659 for a permit authorising the use of any other line fishing methods, including a research component of $108.00; and

·        $1,094 for a permit authorising purse seining, including a research component of $108.00.

If more than one method is allowed to be used under a fishing permit, then only the greater or greatest of the rates of levy specified above is payable.

The 2006-07 WTBF levies have decreased by 8% (purse seine), 5% (pelagic longline) and 7% (other line). This follows a 28% decrease in the WTBF levy base in 2004-05. The reduction is substantially because the 2006-07 industry budget was reduced by $42,162 (5%) from 2004-05, particularly in operational areas such as data management and compliance, commensurate with the continued decrease in fishing activity. As was the case last year surplus funds were able to be carried over to offset levies in 2006-07 because of the continued decline in fishing activity, and delays in implementation of the for the fishery.

The research component has decreased again for 2006-07 due to another decrease in the GVP of the fishery.

The levy offset has reduced the management levy to be collected by a further 45%.

Regulation 68 provides that levy is payable either in full by the date set for the first instalment or in two equal instalments:

·        on 15 January 2007;

·        on 5 March 2007; or

·        within 28 days after the invoice date for the instalment, whichever is later.

If the fishing permit is granted on or after 15 January 2007, but not in force on 14 January 2007, all of the levy is due and payable by 5 March 2007 or within 28 days after the invoice date for the levy, whichever is later.