Guy Nathan: Fisheries (Foreign Charter Vessels and Other Matters) Amendment Bill — First Reading 
Text is incorporated into the Bound Volume 
Guy Nathan: Fisheries (Foreign Charter Vessels and Other Matters) Amendment Bill — First Reading 
[Sitting date: 14 February 2013. Volume:687;Page:7891. Text is incorporated into the Bound Volume.] 
Hon NATHAN GUY (Minister for Primary Industries) 
: 
 I move  
That the Fisheries (Foreign Charter Vessels and Other Matters) Amendment Bill be now read a first time. 
 At the appropriate time I will move that the Fisheries (Foreign Charter Vessels and Other Matters) Amendment Bill be referred to the Primary Production Committee with an instruction that the committee presents its final report on or before 21 June 2013. 
First of all I want to thank the Hon Paul Swain Neil Walter and Sarah McGrath of the Ministerial Inquiry into Foreign Charter Vessels panel who have delivered the comprehensive and thorough report that has led to this bill. I want to also thank my predecessor as Minister for Primary Industries the Hon David Carter who led the Government’s response along with the Hon Kate Wilkinson as the Minister of Labour at that time. Both did a sterling job in getting this legislation through to where it is today. I was also involved myself as Minister of Immigration at that time. I would also like to thank Andrew Hill and his team of officials for supporting the inquiry panel to produce a report of such a high standard. I also acknowledge the officials from the Ministry for Primary Industries the Ministry of Business Innovation and Employment Maritime New Zealand and the Ministry of Foreign Affairs and Trade who provided robust advice to Ministers on the inquiry’s recommendations. 
The Government set up the ministerial inquiry into the use and operation of foreign charter vessels with the main objectives of protecting New Zealand’s international reputation and trade access maximising the economic return to New Zealand from our fisheries resources and ensuring acceptable and equitable New Zealand labour standards on all fishing vessels operating in New Zealand’s fisheries waters within the exclusive economic zone. 
 Following serious allegations of mistreatment and underpayment of foreign crews working on some foreign charter vessels the inquiry made a number of legislative and non-legislative recommendations to improve agency coordination and monitoring and compliance of foreign charter vessels. The non-legislative measures are currently being implemented as we speak. I am confident that most foreign charter vessels have significantly improved their actions since these changes were brought about. 
To complement these measures further legislative amendments are proposed through this bill. These amendments improve the management of vessel safety employment and fisheries management matters on board foreign charter vessels and provide New Zealand with full jurisdiction to enforce New Zealand standards. 
From 1 May 2016 foreign-flagged fishing vessels will no longer be able to legally operate in New Zealand waters. Over the next 4 years all foreign charter vessels will be required to reflag to New Zealand. The 4-year transition period will enable the fishing industry and the Government to adjust to the new regime and the Government is working closely with the industry to help facilitate changes to existing business practices. It is my understanding that some vessels will reflag this year which is a very positive move indeed. 
The decision sends a clear message to the world that New Zealand is serious about the fair treatment of fishing crews the safety of vessels and sustainable fishing practices. Reflagging will further strengthen compliance with New Zealand laws and provide greater transparency around the operation of foreign-owned vessels. Once vessels are flagged to New Zealand the full range of New Zealand law including employment relations and workplace health and safety law will automatically apply and be enforceable. Reflagging will provide greater protection to the crews as they will be employed by a New Zealand - based party under a New Zealand employment agreement. If breaches of labour law occur such as an underpayment of wages or illegal deductions the Ministry of Business Innovation and Employment will be able to investigate them and I expect swift action will occur. 
The bill also expands the range of tools available to the Government. Risks posed by all vessels can now be managed in a more responsive manner through the introduction of new powers to suspend or cancel the registration of fishing vessels and thereby withdrawing permission to fish. The bill includes a robust process to ensure that these powers are used only in exceptional circumstances and that there are opportunities for the industry to make submissions to the Director-General of the Ministry for Primary Industries before these suspensions take effect. Agencies with responsibility for employment vessel safety and fishery laws will continue to use existing tools to ensure compliance with those laws in the first instance. 
The bill strengthens the powers of the Director-General of the Ministry for Primary Industries to consider a wider range of matters when consenting to the registration of both domestic and foreign-owned vessels. These matters are extended from fisheries management matters to include employment and vessel safety conditions. These measures enable the director-general to act upon intelligence gained through improved coordination and communication with other agencies if necessary. The bill also extends the functions of observers to collect information on these matters and allows for the new functions to be cost recovered or directly charged to operators through the making of regulations. 
Finally I want to stress that our improved management of foreign charter vessels is not limited to the changes proposed in this bill. The Government is already implementing a number of measures that have improved our monitoring and enforcement of fisheries management vessel safety and labour issues on board foreign charter vessels. 
Overall this bill is about making sure New Zealand has a world-leading fishery system with high standards on employment and safety. It sends a strong statement that the Government takes ethical issues in the fisheries sector very seriously. I look forward to the industry and other interested parties engaging in the select committee process to have their say. I commend this bill to the House.