Heatley Phil: Aquaculture Legislation Amendment Bill (No 3) — First Reading 
Heatley Phil: Aquaculture Legislation Amendment Bill (No 3) — First Reading 
[Volume:668;Page:15309] 
Hon PHIL HEATLEY (Minister of Fisheries and Aquaculture) 
: 
 I move  
That the Aquaculture Legislation Amendment Bill (No 3) be now read a first time. 
 At the appropriate time I intend to move that the bill be referred to the Primary Production Committee. 
Before I go any further I wish to acknowledge the work of the Ministry of Fisheries chief executive Wayne McNee his staff members Emma Taylor and Scott Gallacher and their teams. Their commitment to the development of this bill has been outstanding. Given that our chief executive Wayne McNee is now moving to the Ministry of Agriculture and Forestry it is fitting to recognise him today as this is one of the significant pieces of work that he has led when in office over the last 3 years. I cannot go on though without thanking the rest of the team: Kristin Christine Mary Beth Jessie Sam John Tania Katrinka Andrew Phil Daniel Frances Ada Emma Mark Cathy Tim Don and Demelza for all the work that they have done. The process has been onerous to work through and to make sure that we have satisfied all those who have a stake in our coastal environment—in particular those who want to make some economic benefit from it while maintaining the wonderful coastline that we have and the environmental surrounds. 
This bill will reform aquaculture legislation. It will provide an efficient legislative regulatory framework that enables marine-based aquaculture to fulfil its economic potential. We want to do that while ensuring that development is environmentally sustainable and balanced with other uses of our coastal space. There is considerable opportunity for New Zealand’s aquaculture industry to grow and its potential is yet to be reached. The United Nations Food and Agriculture Organization reports that aquaculture is the fastest-growing food sector in the world. There is a demand for high-quality produce that is farmed in an environmentally sustainable manner which is something that New Zealand is well-placed to meet and has a track record of meeting. The Government is committed as part of its economic growth agenda to enable the aquaculture industry to grow. 
Growth in aquaculture and an increase in export earnings will create jobs in farming processing and related activity particularly in the regions. It is worth pointing out that the investment when a marine farmer starts marine farming in this country is on the water on the shoreline with processing and also in overseas markets. It is a big bullet to chew off. Growth will come from increases in the average value of production through making better use of existing space and from research and innovation into different species and new technologies in that existing space. Growth will also come from expanding the volume of production through the development of new space and that is critical. 
The Government is committed to ensuring that aquaculture development is environmentally sustainable and takes place within the integrated coastal management framework. That is part of the reason why we have decided to keep development within the Resource Management Act. Stringent tests are already in place to ensure that all aquaculture development takes place within acceptable environmental limits. Those tests will remain under the new law. The undue adverse effects test which protects the interests of commercial customary and recreational fishers is an essential part of the framework for aquaculture and will also remain. 
However there is a need to simplify and streamline processes and to provide a kick-start to industry growth after years of frustrated opportunity and potential. For instance the current law requires that aquaculture management areas must be established in regional coastal plans before applicants can apply for resource consents but that approach has not worked in practice. Poor incentives for council and industry to plan and invest have resulted in no new aquaculture space being created under this regime since its commencement in 2005. This bill will normalise aquaculture within the Resource Management Act framework by removing the requirement for aquaculture management areas. That will allow applicants to apply directly for resource consents subject to the provisions in the regional coastal plan. That is already the case with most other activities so we are normalising the aquaculture regime. Planning and consenting processes will be streamlined and there will be better integration between Fisheries Act and Resource Management Act processes. That will reduce costs for industry and provide stronger incentives for development. Regional councils will be better able to respond to demand for space in the coastal marine area. The bill will provide more efficient access to an alternative to the “first in first served” basis that we have seen in the past. 
The bill will also enable the Government to take a more active role in aquaculture planning. The bill creates a new ministerial power to recommend the making of regulations that amend aquaculture-related provisions in regional coastal plans. We do not foresee that power being used without talking to the public and in particular to the regional councils involved. Clear parameters are established for the use of that power. Those parameters include among other things a requirement for consultation and the requirement that the use of the power must be relative to achieving the purpose of the Resource Management Act. Use of the power will not in itself enable new aquaculture activities to go ahead. Applicants will still need to apply for consents in accordance with normal processes and those consents will be judged on their environmental production and merits as listed under the Resource Management Act. 
Some planned changes will be made directly through the enactment of this bill. We have decided to step in and make some legislative changes to plans. These changes are in regions where current plan provisions present the greatest barriers to aquaculture growth and where the opportunities for sustainable development within acceptable environmental limits are the greatest. The amended plans will enable applicants to be active for the farming of a wider range of species including finfish and some expansion of existing farms. Those changes will provide a much needed stimulus to investment and growth. 
The bill includes measures to bring existing marine farmers into the new regime with minimal disturbance. It will enable the processing of a backlog of applications including those frozen—effectively in limbo—under the current law. In most cases processing will be able to proceed on commencement of the new law subject to the provisions of the relevant regional coastal plan. 
The Government is also committed to ensuring that the Crown continues to uphold the Maori commercial aquaculture settlement. The bill retains the core components of the settlement including all rights associated with the 20 percent of new space created from 1 January 2005. A new mechanism for delivering those obligations is needed as a consequence of changes to remove the requirement that aquaculture activities must be located within aquaculture management areas. We have begun a process of engagement with iwi to discuss how best to deliver on the settlement in light of the reforms introduced in this bill. I hope to be in a position to introduce the necessary provisions later in the legislative process. Pending development of an intended mechanism the bill provides for the Crown’s obligations in respect of the new space to be delivered by providing either space or an agreed equivalent. 
I acknowledge the work of the Aquaculture Technical Advisory Group which reported in October last year. It is very important for me to do so. I acknowledge the contribution of the many interested parties who made submissions on that report or provided input into the policy development process. 
This bill lays the foundation for the next stage in the growth of an exciting industry with real potential for sustainable economic development within acceptable environmental limits and a balanced use of our coastal space. I thank all those who were involved in its development particularly those in the team within the Ministry of Fisheries that engaged so well with marine farmers those in the environmental protection sector throughout New Zealand and those in regional councils. I appreciate their work.