44457 EGION R D I S C U S S I O N P A P E R S ACIFIC P AND SIA A AST E -- PA C I F I C I S L A N D S Optimizing Fisheries Benefits EVELOPMENT D in the Pacific Islands: Major Issues and Constraints May 2008 AINABLE USTS Optimizing Fisheries Benefits in the Pacific Islands: Major Issues and Constraints R. Gillett and G. van Santen May 2008 This publication is available online at www.worldbank.org/eaprural Front cover photo, Bob Gillett Sustainable Development Department East Asia and Pacific Region The World Bank Washington, D.C. May 2008 The findings, interpretations, and conclusions expressed in this paper do not necessarily reflect the views of the Executive Directors of the World Bank on the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. 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All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank, 1818 H Street NW, Washington, D.C. 20433, USA, fax 202-522-2422, e-mail pubrights@worldbank.org. Contents Acronyms.............................................................................................................................................................ii Executive Summary...........................................................................................................................................iii Introduction.........................................................................................................................................................1 1. Fish Resources and Fisheries....................................................................................................................2 1.1 Overview............................................................................................................................................2 1.2 Tuna Fisheries...................................................................................................................................4 1.3 Status of Tuna Stocks.......................................................................................................................5 1.4 Coastal Fisheries and Aquaculture .................................................................................................5 1.5 Potential for Increasing Benefits from Fisheries............................................................................6 2. Benefits from Tuna Fisheries....................................................................................................................7 2.1 Benefits in the Pacific Islands Region.............................................................................................7 2.2 What happens in the rest of the world? The example of Mauritania ..........................................9 3. Tuna Fisheries Development...................................................................................................................10 3.1 The General Picture .......................................................................................................................10 3.2 Specific Studies ...............................................................................................................................11 3.3 Existing and Potential Role of the Private Sector........................................................................13 3.4 IUU Fishing in the Region..............................................................................................................14 3.5 Adding Value...................................................................................................................................14 3.6 Regional Institutions Involved in Fisheries ..................................................................................15 4. Key Constraints and Mitigating Factors ...............................................................................................17 4.1 Governance......................................................................................................................................17 4.2 "Leveling the playing field"...........................................................................................................19 4.3 New approaches..............................................................................................................................21 4.4 Current Sponsors of Activities in the Fisheries Sector................................................................23 4.5 Summary of Potential World Bank Interventions.......................................................................24 5. References.................................................................................................................................................26 Appendix 1: The Main Tuna Fishing Gear Used in the Pacific Islands Region ....................................28 Appendix 2: The Status of Tuna in the Western and Central Pacific Ocean.........................................29 Appendix 3: Measures of Tuna Fisheries Benefits ...................................................................................30 Appendix 4: The Western and Central Pacific Fisheries Commission...................................................32 Appendix 5: The World Bank in Pacific Island Fisheries........................................................................33 Appendix 6: Some Especially Relevant Current Projects........................................................................35 Appendix 7: Some Key Reports and Findings on Pacific Tuna Fisheries and their Benefits...............37 Appendix 8: The US Tuna Treaty..............................................................................................................46 Appendix 9: Fisheries Statistics in the Region..........................................................................................48 Appendix 10: Communiqué of the 38th Pacific Islands Forum .................................................................49 Appendix 11: People Contacted ...................................................................................................................52 Acknowledgements This report was prepared by Bob Gillett Preston and Associates); Mike Batty (Program (Fisheries Specialist) and Gert Van Santen Manager, DevFish Program, FFA); and Kieran (Fisheries Development and Management Kelleher (Senior Fisheries Specialist, Specialist). The work was managed by Oliver Agriculture and Rural Development Braedt (Natural Resources Management Department). The report was edited by Kim Specialist, Sustainable Development DesRochers (Editor), the desktop was made by Department, East Asia and Pacific Region) and Nina Queen Irving (Senior Program Assistant, Ronald Zweig (Fisheries Specialist). The SDD, EAP) and general assistance was provided authors would like to acknowledge comments by Cynthia Dharmajaya (Program Assistant, and suggestions received by those individuals SDD, EAP). The team would also like to contacted during the formulation of this report acknowledge the guidance and support received (Appendix 11) and would like to specially by the World Bank management, particularly express their gratitude to Su'a N.F. Tanielu from Nigel Roberts (Country Director, Papua (Director General, Forum Fisheries Agency); New Guinea, Timor-Leste and Pacific Island Mike McCoy (Fisheries Specialist, Gillett Operations) and Rahul Raturi (Sector Director, SDD, EAP). Abbreviations and Acronyms ADB Asian Development Bank AusAID Australian Agency for International Development DWFN distant water fishing nation EU European Union FAO Food and Agriculture Organization of the United Nations FFA Pacific Islands Forum Fisheries Agency FSM Federated States of Micronesia GDP gross domestic product IUU illegal, unreported and unregulated PIC Pacific Island country PIFS Pacific Islands Forum Secretariat PNG Papua New Guinea SPC Secretariat of the Pacific Community (formerly South Pacific Commission) SPREP Secretariat of the Pacific Regional Environment Programme WCPO western and central Pacific Ocean WCPFC Western and Central Pacific Fisheries Commission ii Executive Summary This report has been produced to inform the in relative income growth and changing World Bank management and other interested consumer demand patterns. These features are donors of the status and issues of the fisheries likely to affect the distribution of benefits from sector in the Pacific Islands region. It identifies the region's tuna resources. key constraints and past mitigating actions, and examines the potential future role of the World Constraints to fisheries development Bank in the Pacific Islands fisheries sector. Many of the constraints to fisheries development Tuna fisheries in the Pacific can be divided into two categories: (a) governance; and (b) small countries and/or The Pacific Islands region and the wider western industries struggling with powerful countries and central Pacific Ocean is the most important and powerful economic interests. The measures tuna fishing area in the world, estimated to be suggested for their mitigation are mostly worth about US$3 billion in 2007. conventional, and are similar to approaches that have been attempted (with varying degrees of At present, the main benefits from tuna fisheries success) in recent history, although suggestions include license fees, direct employment in for a different approach are also made. fishing activities, spin-offs from locally based fishing fleets and processing facilities, and Some of the major constraints to tuna fisheries modest local taxes. All Pacific Island countries development in the region include poor national receive fees for foreign fishing activities in their fisheries institutions, corruption within the waters. In some countries, access fees form a fisheries sector, lack of skilled fishery managers, very large portion of government revenue, up to lack of regional solidarity, poor government one-third for some countries in some years. One policies for tuna industry development, weak of the major issues regarding tuna fisheries in governance in the inshore fisheries subsector, the region is the relative benefits of receiving and market access issues. access fees vs. pursuing domestic industry development. Poor national level fisheries institutions. Government fisheries agencies are far less An estimated 1.4 million metric tonnes of tuna effective now than they were two decades ago. have been taken annually from the waters of Some reasons for this are institutional structures Pacific Island countries in recent years, although that result in low accountability to stakeholders, less than one-quarter of the catch is made by corruption, poorly trained staff, and budgetary vessels based in this region. Consensus is processes that favor staffing levels over growing that improved management could activities. Many of the present difficulties in the enhance the percentage of value added per fisheries sector can be traced directly to metric tonne of landed tuna. The same is true of ineffective fisheries departments and low levels Pacific Island countries' participation in existing of professionalism. Recommended mitigating tuna processing and marketing activities. actions to address this issue include: The tuna industry is currently undergoing · Consolidating experiences from the many structural changes. Tuna harvesting, processing institutional enhancement projects that have and marketing is being affected by a variety of been carried out in the region, and linking factors, including rapidly rising energy prices these efforts to ongoing governance and changes in major world markets as a result programs in and outside the sector at of major exchange rate movements, differences national and regional levels; iii · Enhancing the ability of fishery stakeholders countries can only effectively deal with more to influence fisheries department policies powerful countries and economic interests and activities and to promote accountability; through regional solidarity. In previous decades, · Enhancing the skills of fishery managers; the region was noted for its solidarity in fisheries and matters, especially in dealing with distant water · Creating evaluation and oversight fishing nations (DWFN). For various reasons, mechanisms to assure greater adherence to however, this solidarity has decreased. policies and legislation (e.g. bringing the Recommended mitigating actions to address this results of governance improvement work issue include: and evaluations to the attention of stakeholders, high-level authorities, and the · Assessing the economic and political costs general public). of eroding regional solidarity in fisheries, giving examples of where it has occurred, Corruption in fisheries. In recent years there and how it may be avoided in the future; has been a noticeable rise in fisheries-related · Encouraging the concept of accountability in corruption in the region. Corruption is a major regional agreements, including pre-agreed issue in fisheries governance, and many of the mechanisms for dealing with non- actions identified for improving fisheries compliance; and institutions also apply to decreasing corruption. · Developing a regional sector management Recommended mitigating actions to address this strategy that enables the resource poorest issue include: country to equitably benefit from regional tuna resources by enhancing regional · Identifying simple generic measures for benefits across the board. deterring corruption specific to the fisheries sector; Government policies for tuna industry · Estimating and publicizing the cost to the development. It is generally recognized in the national and regional economy of corrupt region that the major role of government in activity in the fisheries sector; and promoting tuna industry development should be · Establishing links between national and improving fisheries management policies. This international anti-corruption activities and concept, however, has not been fully those at the fisheries level. implemented in most countries. Recommended mitigating actions to address this issue include: Lack of skilled fishery managers. In many of the smaller Pacific Island countries, fishery · Carrying out national reviews of private agencies do not have staff with the skills needed sector investment conditions that focus on to effectively manage fisheries. Also, the the fisheries sector, using both investment regional university does not recognize the large and fisheries expertise; and growing need for fisheries managers. · Exploring potential benefits of improved Recommended mitigating actions to address this resource and sector management, assessing issue include: multiple scenarios of resource and fleet management, and improvements in the · Creating an awareness and reviewing the framework for private investment; and curriculum of the University of the South · Developing a group of donors that would Pacific and other regional institutions, in jointly support a rational private sector conjunction with a survey of demand from investment program, possibly in conjunction government fishery agencies; and with the negotiation and implementation of · Arranging a program to finance fisheries future fisheries agreements and adjustments management students and mid-career of the resource management system. managers. Weak governance in the inshore fisheries Regional solidarity in fisheries. Pacific Island subsector. Fisheries departments, fisheries officers, and communities need to take more iv responsibility for marine resources. A related traditional institutional and political constraints matter concerns village food supplies. Although and/or may actively aim to address them. Such the security of village marine food resources is new approaches include using modern financial arguably the greatest issue with respect to instruments, and more active multi-lateral donor inshore fisheries in the region, there is some participation in fishing sector management. danger that its importance may be obscured by the quest for greater economic development. Based on the information and analysis presented Recommended mitigating actions to address this in this report, The World Bank's involvement in issue include: fisheries in the Pacific Islands region should focus on: · Promoting policies or management plans against which the actions of fishery · Enhancing the effectiveness of their departments with regards to inshore fisheries governance; can be measured; · Assessing the status and financial feasibility · Subjecting inshore development schemes to of the main fisheries, and their potential objective economic scrutiny by enhancing restructuring; and the ability of regional organizations to · Enhancing Pacific Island countries' share of provide economic advice on small-scale future domestic income (value added) from fisheries; and tuna fisheries. · Enhancing the skills of fishery managers. A summary of World Bank interventions that Market access. Access to the world's lucrative could lead to more benefits to Pacific Island tuna markets is often constrained by food safety countries is provided below. The interventions issues, the requirements of trade agreements, are prioritized according to the magnitude of and logistical considerations. Papua New Guinea likely benefits to countries, and whether the is the only country in the region that is intervention is currently being addressed: compliant with European Union food sanitation requirements. Some of the most important · Reduce corruption in fisheries; logistical considerations in market access · Improve poor national fisheries institutions; concern inadequate airports and airline policies. · Enhance skills of fishery managers; Many countries do not have adequate size · Encourage countries to "take advantage of airports for economical air-freighting and most their advantage" in dealing with DWFN; airlines that service the region are likely to · Increase country participation in the tuna introduce aircraft that have less air cargo industry; capacity. Recommended mitigating actions to Improve impact of fisheries studies; address this issue include: · · Improve government policies for tuna industry development; · Promoting more effective national fisheries Improve regional solidarity in fisheries; institutions in order to seriously address the · blockages created by the sanitary · Improve the effectiveness of the Western requirements; and and Central Pacific Fisheries Commission; · Following up on a 2000 study that suggested · Strengthen governance in the inshore regional cooperation in air freighting of fish. fisheries subsector; · Improve effectiveness of monitoring, All of the mitigation measures identified above control, and surveillance through economic are in many respects conventional, and are analysis; similar to approaches that have been attempted · More active multi-lateral donor participation -- sometimes with mediocre results -- in the in fishing sector management; last two decades. This lack of success indicates · Improve market access; and that a fundamental change of strategy is required · Specific studies that may cover a broader to improve regional benefits from fisheries. (economic and/or political) area than Some new approaches may circumvent existing analysis. v Introduction In the last 10 years, World Bank activity in the next step is to facilitate a frank discussion about fisheries sector of the Pacific Islands region has the potential World Bank role with key donors, been limited to two Regional Economic Reports, regional institutions, and national government a study of coastal resources management, and a authorities currently involved in the sector. few technical assistance missions. The purpose of this study was to conduct a brief internal The record of past donor support suggests that review of the Pacific fisheries sector's past while single donors have successfully performances, based on the existing literature implemented technical assistance and and experience of the individuals involved. investment projects, they have, as a group, been less effective in addressing core sector issues The report's main aim is to identify key such as: (a) the economically lopsided constraints and past mitigating activities in relationship between Pacific Island countries fisheries in the Pacific Islands region, and (PICs) and distant water fishing nations activities supported by past donor, regional and (DWFNs); (b) the economically sub-optimal national fisheries programs. In addition, the management of tuna fisheries; and (c) enhancing report examines the potential future role of the PICs' share of the value added created by the World Bank in the Pacific Islands region region's tuna fishery. fisheries sector. This report's findings are intended as a starting point in this analysis. The 1 1. Fish Resources and Fisheries 1.1 Overview between the shoreline and the outer reefs are crucial to the nutrition, welfare, culture, The region's fishery resources can be broadly employment, and recreation of Pacific divided into two main categories: oceanic and Islanders. coastal or inshore. Tuna constitute the region's primary catch. The · Oceanic resources include tunas, billfish amount of tuna caught is about 10 times that of and allied species, which utilize pelagic all other types of fish combined. In terms of habitats. Individuals may cover large value, the tuna catch is worth over seven times distances. These resources form the basis of the value of all other Pacific Island fish catches the region's industrial fisheries. combined. The Pacific Islands region and the · Coastal or inshore resources include a wider western and central Pacific Ocean wide range of finfish and invertebrates that (WCPO) is the most important tuna fishing area utilize shallow water habitats, and whose in the world. The average annual tuna catch individual movements are restricted to during the past 10 years is almost as much as the coastal areas. Coastal fisheries resources are combined tuna catches of the eastern Pacific, of fundamental importance in the Pacific and Indian and Atlantic oceans combined. Islands. The living resources in the zone Figure 1: The Exclusive Economic Zones of Pacific Island Countries Source: Courtesy of the Secretariat of the Pacific Community 2 Pacific Island fisheries can be further the region's nutrition and food security. categorized by: Figures 2­4 show the average annual production · Industrial fisheries, which are almost from these categories of fisheries in the early exclusively for tunas and allied species 2000s. caught offshore. The only other industrial fishery in the region is for prawns in Papua Reid (2007) indicates that during recent years, New Guinea (PNG). Industrial fisheries use about 1.4 million metric tonnes of tuna were both local and foreign vessels. taken from the waters of Pacific Island countries · Small-scale commercial fisheries, which (PICs), with less than one-quarter of the catch can be further broadly subdivided into those made by vessels based in the region. A producing export commodities, and those substantial amount of tuna comes from supplying domestic markets. international waters adjacent to the 200-mile · Subsistence fisheries, which support rural exclusive economic zones of PICs. economies and are extremely important to Figure 2: Annual Production Volumes 180,000 ) 160,000 (mt 140,000 oni 120,000 Offshore Foreign 100,000 Offshore Local oduct 80,000 Coastal Commercial Pr 60,000 Subsistence 40,000 Annual 20,000 0 G i n l a u sI PN batriiK lua Fiji hal ula ue FSM molo mo Ni Tuv Nauru ars Sa Tonga Pa So M anuatV Cook Source: Gillett and Lightfoot (2001) 3 Figure 3: Annual Production Values $200 $180 sralloD $160 $140 Offshore Foreign SU $120 Offshore Local $100 of $80 Coastal Commercial $60 Subsistence $40 Millions $20 $0 G i n l a Fiji sI u FSM PN batriiK lua ula ue molo hal mo Ni ars Tuv Nauru Sa Tonga Pa So M Cook anuatV Figure 4: Annual Production Values ­ All Pacific Island Countries Subsistence Coastal Commercial Offshore Local Offshore Foreign 1.2 Tuna Fisheries of all fishing operations. Of the 175 purse- seine vessels presently operating in the Several very different gear types are used to region, almost all are owned by foreign catch tuna in the region. Appendix 1 gives a companies, but some have been enticed by short description of the main gear types used. PICs to base themselves in the region. Purse seining is only feasible in the equatorial- The absolute and relative importance of tuna most waters of PICs. fishing gear has changed over time. In addition, · Longlining uses smaller vessels and has the spatial distribution of gear use is quite been promoted as the most appropriate tuna uneven in the region. fishing method for PICs. A modest number of locally owned fleets have been · Purse seining is the most capital intensive established in most PICs. Long-range 4 vessels based in Asian countries operate in added have already been recommended to PICs, the region and in adjacent high seas areas. backed by relevant research. Experiences from · Pole-and-line fleets previously operated in countries outside the region, suggests that the several PICs but this labor-intensive greatest risk to Pacific Island tuna resources is technique experienced great difficulty in political. That is, governments are unwilling or competing with purse seining. The Japanese unable -- on account of foreign political and fleet continues to fish in and to the north of local financial pressure -- to take the required the region, but supplies a protected market. actions. The only significant regional fleet is the government-operated remnant of a joint 1.4 Coastal Fisheries and Aquaculture venture operation in the Solomon Islands. · Trolling is carried out on a large scale only The region's coastal and inshore artisanal and by overseas vessels in temperate waters to subsistence fisheries capture about 500 species the south of the region. of finfish, invertebrates, and marine plants. It is estimated that the commercial inshore catch is 1.3 Status of Tuna Stocks made up of reef and deep slope fish (43% of total weight), coastal pelagic fish (18%), There are 61 species of tuna, 14 of which are trochus, green-snail, and pearl-shell (collectively considered "true tuna". Four species are 9%), crustaceans (8%), sea cucumber (7%), and commercially important in the Pacific Islands estuarine fish (6%) (Gillett 2002). region: skipjack, yellowfin, bigeye, and albacore. These tuna are quite distinct with Typically, women are involved in inshore respect to how they are captured, the amount fishing activities such as reef gleaning, presently captured, the size of their populations, invertebrate collection, and the preparation of and their end use. Appendix 1 summarizes the food from fishing activities. With some most recent stock assessment information on exceptions, men are usually involved in fishing these four important species, but in summary: farther offshore for larger species of fish, and in diving activities. · Current catch levels of skipjack appear to be easily sustainable; In general, inshore fish resources are heavily · Current catch levels of South Pacific fished and often show signs of overexploitation, albacore are likely to be sustainable; especially in areas close to population centers, · Yellowfin stocks are likely to be nearing full and for fishery products in demand by rapidly- exploitation. Yellowfin in equatorial regions growing Asian countries. Inshore fisheries are are probably being exploited at a much also negatively affected by habitat degradation, higher rate than those in subtropical areas, which occurs from destructive fishing practices, and current levels of exploitation are likely urbanization, siltation from mining and/or to move the stock to an overfished state in logging operations, and competing uses of the the short term to medium term; and coastal zone. · Current catch levels of bigeye appear not to be sustainable, unless the recent high Traditionally, coastal resource management was recruitment is maintained. handled at the community level, and appears to have been reasonably successful. In recent An important question facing the region is decades, however, this system of management whether tuna resources will continue to provide has experienced serious problems, one of which maximum benefits for future generations of is that the authority of local traditional leaders is Pacific Islanders. A recent report (Gillett and eroding, while at the same time threats to marine Langley 2007) concluded that the management resources (e.g. overharvesting, destructive actions needed to maintain fish stocks and fishing practices, pollution, and a wide range of enable fisheries to create the greatest value land-based threats) are increasing. In the mid- 1950s, most Pacific Island governments began 5 introducing various forms of centralized coastal in developing simple "rules of thumb" for the resource management, most typically through important species - yield estimates based on various restrictions (on gear, seasons, quotas, existing studies. In the Pacific Islands region, areas), which were stipulated as regulations rules of thumb were developed decades ago for under national fisheries laws. These various three important fishery resources: deepwater regulations have had limited success. snapper, trochus, and lobster. It is no coincidence that these are some of the best Although the new centralized management managed inshore fisheries in the region. regimes were often supported by legal systems, there was little technical support or enforcement Aquaculture has long been promoted in the activity, especially in areas away from urban region, both for subsistence and commercial centers. Beginning in the early 1970s, both purposes, and has involved a variety of species fisheries managers and the environmental and donors. Assistance has been through community began using the concept of marine bilateral programs (especially through Japan and protected areas as management tools. Australia) and international agencies (including Simultaneous efforts to encourage inshore SPC, FAO, and the WorldFish Center). With the fishers to diversify into deep-slope or offshore exceptions of pearl culture in the Cook Islands fisheries (bottomfish and/or tuna) and and seaweed culture in Kiribati, development aquaculture, have had mixed results. efforts have not resulted in the establishment of major aquaculture industries. A variety of Although the security of village marine food factors are responsible, including small domestic resources is arguably the most important inshore markets, competition with more efficient fisheries issue in the region, there is some producers in Asia, and the development model danger that its importance may be obscured to used. Despite the low success rate, enthusiasm some degree by: (a) the quest for greater for aquaculture remains high among PIC economic development of inshore fisheries fisheries agencies and their donors. resources; (b) emphasis on offshore fisheries; or (c) non-governmental organization priorities. In 1.5 Potential for Increasing Benefits many countries, coastal resources that were from Fisheries undeveloped a few decades ago have often become fully exploited or overexploited. It is difficult to make generalizations about Presently, a major issue is the need for a fisheries and their potential benefits, and there transition from government-led development of are major differences between PICs in terms of (what are often) non-existent opportunities to the their potential for tuna fisheries development concept that fisheries departments and their and/or extracting access fees. Nevertheless, officers are guardians of marine resources. much of the potential in the region for expansion of benefits related to fisheries is likely to come There is a need for a scientific basis for from tuna resources. The major focus for establishing quotas and other management interventions dealing with inshore fisheries in measures for inshore resource. This must be many PICs should be the preservation of reconciled with the reality that the capacity in existing benefits through enhanced management. fishery agencies to deal with the complexities of stock assessment is quite limited. Staff skills, Accordingly, discussions of fisheries work priorities, financial resources, and political development and of increasing benefits in the will are often inadequate to enable even basic remainder of this report are largely confined to quantitative stock assessment models to have an tuna fisheries. effect on the fisheries management process. In this situation, there could be considerable value 6 2. Benefits from Tuna Fisheries 2.1 Benefits in the Pacific Islands million, representing around 5­6% of the Region catch value at landing. Fees were largest in Kiribati (US$ 20 million) and the Federated At present, the main benefits from tuna fisheries States of Micronesia (US$ 15 million), include licenses fees, spin-offs from locally where most of the tuna was caught. based fishing fleets and processing facilities, and · Greenpeace (2006): "Foreign fleets from modest local taxes. Japan, Taiwan, China, Korea, the USA and the European Union (EU) take 90% of All PICs receive fees for foreign fishing Pacific tuna, and pay Pacific Island activities in their waters. In some PICs, access countries a mere 5% of the US $2 billion fees form a very large portion of government annual profits (sic)". revenue, up to one-third for some countries in · Lewis (2004): Access agreements result in some years. One of the major issues regarding "rigorously 5% for Japanese agreements, but tuna fisheries in the region is the relative higher for most others) and the types of benefits of receiving access fees vs. pursuing agreements themselves (government-to- domestic industrial development. In discussing government, government-to-industry and this subject, the often heard "we receive a paltry government-to-individual company and/or 5% of the value of the catch in access fees" must association)". be balanced with some significant failures in tuna industry development. Within the region, access agreements vary by (a) structure (per vessel per trip systems, pre- Nevertheless, consensus is growing that negotiated lump sum payments, license fee plus improved management of overexploited tuna post hoc catch value adjustment), (b) terms resources, and more effective and flexible fleet (quarterly, annual, annual with long-term management, could enhance the percentage of rollover, three year, five year), (c) calculation of value added per metric tonne of landed tuna, the fee basis (typically a percentage of the creating an incremental value from which PICs landed catch value), and (d) type (government- could obtain additional income from access fees. to-government, government-to-industry and The same is true of PIC participation in existing government-to-individual company and/or foreign tuna processing and marketing activities. association) (Lewis 2004). Measuring the various benefits from tuna With one exception, all access agreements are fisheries is fundamental to the debate of access negotiated bilaterally. The one multi-lateral fees vs. local industrial development, but is not access arrangement (with the USA) results in straightforward. The methodology for considerably higher access payments (see quantifying the benefits of access fees often Appendix 7), but the US Tuna Treaty's financial differs between studies. In addition, the amounts transfers represent more that just payments for involved in access arrangements are sometimes access. Where other factors are involved (e.g. confidential, and reconciling amounts with additional goods and services provided in receipts in national treasuries can be difficult. Japanese agreements), fees tend to be lower. Noting these difficulties, a selection of studies There also appear to be governance issues estimating license fees include: associated with some fee levels. · Gillett and Lightfoot (2001): In 1999, the A small change in the level of access fees can direct value of access to PICs was US$ 60.3 make a large difference in payments. According to FFA unpublished data, the delivered value of 7 the 2006 tuna catch in the region by the seven employment is estimated to be between 21,000 most important DWFNs operating in the area and 31,000 people, which represents between was approximately US$ 2,255,063,000. A 1% five and eight percent of all wage employment increase in access fees, therefore, represents an in the region. The five tuna canneries in the additional US$ 22.5 million in access fees. region alone employ 5% of all formally Similarly, the decline of real tuna prices in US employed women in the region" (albeit at quite dollar terms between 1985 and 2006, and the modest wages). decline of average value added per vessel in real terms, have reduced the fleet's ability to pay for In recognition of the lack of robust data, the access fees. This trend has substantially reversed World Bank in 2005 assisted FFA in using a more recently. limited number of economic indicators that would illustrate annual changes in the impact of There are several important considerations for the tuna industry on PIC economies (Van Santen increasing access fees: 2005). Appendix 2 of this report contains a table from DevFish (2007) containing estimates of the · Regional solidarity is essential in raising contribution of tuna fishing to the GDP of each levels of access fees in order to prevent PIC in 1999 and 2004. Appendix 2 also gives DWFNs from playing PICs off against each inventories of tuna fishing vessels, tuna other. In former years, especially the mid- to processing facilities, and tuna related late-1980s, the region was a model of employment in each PIC for the years 2002 and fisheries solidarity that other regions in the 2006. world strove to emulate. For various reasons (mainly political), this solidarity has Although post-harvest value-adding activities decreased in recent years; could represent substantial economic benefit · The amount of access fees that vessels can (e.g. cannery employment), there have been no afford to pay is closely related to the attempts to quantify the value added to the fishery's profitability. Several studies region's total tuna catch, either for present levels (especially those sensitive to industry or future potential. One reason is financial. Tuna concerns) have indicated that PICs should canning facilities are closing across the globe, cooperate with industry to create conditions due to their failure to compete with a cartel of that result in greater profits, thereby three worldwide industrial groups that dominates enabling vessels to pay more for access fees. the global mature canned tuna market. Determining resource rent in tuna fisheries Consequently, PIC investment in new canning is important, but often overlooked, in facilities should not be recommended lightly ascertaining the possibility of increasing solely for local employment creation. The access fees; and structure of national accounts also distorts the · Government subsidies have an important impact of local processing. Most post-harvest impact on the financial flows from access fishing activities are counted as value added to agreements, and changes in subsidy levels other sectors, such as manufacturing, in GDP are subject to alteration for various reasons. calculations. Subsidies are quite clear in the case of the US Tuna Treaty (Appendix 7) and EU Aid is an important benefit from tuna resources. bilateral agreements, but the situation is less Van Santen and Muller (2000) state a number of transparent in some of the Asian bilateral access agreements that have formal and informal agreements. arrangements for aid and in-kind payments; other DWFNs provide aid projects on top of With respect to quantifying tuna-related benefits regular license fee payments. Although aid and other than access fees, a 2001 Asian in-kind payments fluctuate widely between Development Bank (ADB) report (Gillett et al. agreements -- some cannot even be 2001) attempted to summarize the employment conclusively linked to access fee payments -- situation: "Total direct and indirect tuna-related they appear important for many countries. For 8 the period 1990­2000, Solomon Islands received resources, notably in its negotiations of EU 73% of its fisheries department development fisheries agreements. While efforts to integrate budget in the form of grants; at least 50% of the fisheries into the domestic economy are still grants involved tuna-related infrastructure and modest -- mainly involving artisanal fisheries technical assistance. While aid and in-kind and national fisheries on cephalopods -- the payments add indirectly to fee income, and as country has been effective in extracting license such clearly benefit PICs, aid often reduces the fee benefits from foreign fleets. The figures transparency of an analysis of the real benefits below reflect specific national circumstances, and costs of access agreements. Ad hoc aid but they also illustrate the scale of potential programs, sometimes linked indirectly to access domestic benefits that countries can extract from agreements, may not fully reflect the priorities foreign fisheries. and objectives of national development strategies of the economy as a whole. The record Public sector income from foreign fishing fleets of a number of these projects suggests that aid that do not land fish in the country (income data and in-kind payments may have provided preliminary 2006) totaled US$ 143 million, of a substantially less real benefits than their total total value of the foreign catch (catch averages costs may suggest, while using scarce local 2002­2005) of US$ 318 million. Annual administrative and financial resources for payments by the EU and other fleets comprise: implementation. · A lump sum annual "financial contribution" 2.2 What happens in the rest of the by the EU of 82 million (US$ 115 world? The example of Mauritania million); · License fees, currently estimated at US$ 28 Mauritania is the largest recipient in the world of million; and financial compensation from sovereign fisheries · Unknown indirect aid support (e.g. from agreements. Its large fish resources comprise Japan, China, EU). several high value species that are exploited by a modest national industrial fleet (often foreign Mauritania currently receives about 45% of the leased vessels) and many foreign industrial gross value of the reported foreign catch. vessels licensed under international fisheries Excluding the EU lump sum "financial agreements (e.g. EU, Japan) or directly between contribution", the foreign fleets pay about 8.8% owners and the government. of the catch value for their licenses, plus some indirect aid support. The national (leased) fleet Mauritania has 40 years of experience in pays several direct and indirect taxes that range managing the foreign fleet and integrating between 3% (cephalopod freezer trawlers) and foreign fisheries into its national economy. It has 11% (demersal freezer trawlers) of the landed also been able to exploit concerns of the EU catch value. about Mauritania's political stability in obtaining direct and indirect benefits from its marine 9 3. Tuna Fisheries Development 3.1 The General Picture an importance much greater than at present. Quite simply, in most An ADB/FFA report (Gillett et al. 2001) states: countries there are few, if any, alternatives to tuna. In the future Pacific Island climate of continued economic stagnation, PICs have used several different strategies for very high population growth, severe developing the region's tuna resources. Table 1 economic shocks, and massive is a non-exhaustive listing of the development unemployment, it is inevitable that strategies associated with various tuna fishing the presently under-exploited tuna techniques. resources of the region will assume Table 1: Tuna Fishing Techniques and Typical Development Strategies Fishing Post-harvest Techniques Development strategies Purse seine · Entice vessels to base locally · Promote the processing of more of the catch · Extract higher levels of access fees within the region: canneries and loining · Use access to leverage other benefits operations · Supply crew · Benefit from transshipment · Sell supplies to foreign vessels · Secure preferential access to markets for canned tuna Longline · Promote local ownership · Air freight fresh tuna to Japan and USA. · Entice vessels to base locally · Air freight B-grade frozen tuna to USA/EU. · Extract higher levels of access fees · Supply C-grade tuna to local markets · Use access to leverage other benefits · Improve fish handing · Supply crew · Require local sales (tuna and bycatch) · Value adding to bycatch Pole-and-line · Take advantage of low wage rates and · Use concept of "environmentally friendly" and a [Solomon utilize labor-intensive techniques to supply fishing technique that produces high quality Islands] fish and maintain cannery operations products to obtain higher prices in certain markets Foreign purse-seine vessels are catching an declining), high entry costs, the boom and bust increasing share of the region's tuna. nature of the business, the need for outside Unfortunately, Pacific Island ownership of expertise at almost every stage of the venture, purse-seine vessels has generally been and the lack of economies of scale, which often disastrous. The lack of capital within the private surpass the advantages of resource ownership sector has meant that past ventures have mainly and resource proximity. involved government fishing companies, few of which have ever had a profitable year. Aside Other fisheries-related developments in which from the problems associated with governments PICs are involved are canneries and loining owning competitive businesses, the difficulties operations (the labor intensive component of of operating purse-seine vessels include canning). The two American Samoan canneries contending with highly variable fish prices (owned by two of the three companies that (which in real terms, until recently, have been dominate the global canned tuna market) receive 10 fish off-loaded from purse-seine vessels and 2006) states that the key element in increasing Asian longliners, as well as fish brought to returns from the longline fishery is to associate it American Samoa by refrigerated carrier from with the development of large-scale, other places in the Pacific and even from other commercially viable onshore value added oceans. Other tuna canneries have been processing, which requires local labor and established in Fiji, Solomon Islands, and two in targets non-cartel fresh fish markets. PNG (associated with Philippine interests). Because canneries employ relatively large 3.2 Specific Studies numbers of people, governments are often quite interested in having a facility, despite the record FFA carries out a large number of studies each tuna cannery closures in other parts of the world. year. In the 10-year period from 1990­1999, more than 1,000 technical reports were produced Much of the recent activity in tuna fisheries in by FFA staff and consultants. Other agencies the region has focused on developing local fleets have also reported on PIC tuna fisheries: SPC, of small longline vessels that specialize in fresh FAO, AusAID, Pacific Islands Forum fish for air freighting to Japan, USA, and the Secretariat (PIFS), Australian National EU. Success is largely related to Japanese tuna University, ADB, University of the South prices and catch rates, both of which show Pacific, and others. Some of the most important considerable variability. In many PICs, further papers may not be in the public domain. Table 2 longline development is limited by resource compares three studies of tuna industry considerations and/or port infrastructure and air development. freight capacity. A recent FFA study (Philipson Table 2: Constraints in the Development of Tuna Industries Barclay and Constraint ADB (1997) Gillett (2003) Cartwright (2006) Government Direct involvement of Widespread belief among Most interviewees with a ownership government in tuna fisheries officials that the fisheries background believed businesses deterring the role of government is to state ownership of vessels or private sector, protected enable private sector other means of direct economies, government- development, although involvement in tuna fisheries, oriented business interests officials without knowledge was a bad idea, but some of the history of failure of influential officials still call for state-owned enterprises may state ownership of tuna still favor them enterprises Deterrents to High risk, capital-intensive Tuna fishing declining in private sector nature of tuna fishing industry, profitability since 1970s, lack involvement difficult access to markets, of trading/marketing skills a PICs high cost production problem, PICs high cost environments production environments Transport to Inadequate and inadequately Air freight availability Diseconomies of scale for air markets managed sea and air freight problems, inefficient harbor and sea freight in most infrastructure management locations Credit Lack of commercial credit Credit availability problems Credit available to those with a good track record Investment Economies unstable, industry Policies unstable, taxation General economic environment and investment policies difficult, administration environment and policy unsound, unfriendly expensive and prone to framework not conducive to environment for foreign blockage, poor government­ industrial development. Lack investors industry dialogue, low of consultation with industry, attractiveness to investors between government departments, with other stakeholders. Development polices leading to over- 11 Barclay and Constraint ADB (1997) Gillett (2003) Cartwright (2006) promotion of fishing as an investment opportunity, in turn creating boom and bust cycle in tuna fishing Skills level Human resources not Low levels entrepreneurial Lack of business experience a competitive on development and industrial problem for Indigenous cost/productivity, inadequate fisheries skills fisheries development, lack of pools of skills in some areas human resource capacities in (e.g. technical, business) private and public sectors Government Policies unclear and Stability of policies affecting Overarching need for strong, policies in fisheries inconsistent tuna industries sound domestic policies to sector promote sustainable development and underpin regional and multilateral negotiating positions Source: modified from Barclay and Cartwright (2006) In addition to the three studies summarized, management measures that are conducive to Appendix 6 provides an annotated list of many long-term private investment in the tuna important reports that discuss tuna resources in industry; the region, including those focused on fisheries · Foreign sources of capital and technological development efforts. expertise is likely to be required for many years to come; Those reports that deal with fisheries · Tuna fisheries development is intimately development, largely chronicle fisheries related to the rules and requirements of development efforts, and identify constraints and international and regional trade agreements; their mitigation, especially policy changes to · Poor governance in the fisheries sector (e.g. encourage private sector investment. The lack of management capacity, administrative conclusions of the studies are wide ranging, but bottlenecks, corruption) seriously constrains features common to many reports include: the development of a thriving tuna industry; and · The futility of government-led industry · The opportunities presented by PICs sharing development, especially government-owned in incremental value adding (from more national tuna fishing companies; effective resource and fleet management, · Success in the tuna industry depends on a and domestic and foreign processing and company possessing a number of important marketing) are growing in importance. attributes, including a complex of vertically integrated systems (linking catching with Although there has been notable progress in tuna processing and marketing); efficient vessel fisheries development in the region in the last operations and maintenance; highly two decades (e.g. establishment of locally based developed fishing skills; sound and timely longline fleets), it is generally recognized that fish preservation and fish grading; regular the benefits are considerably less than the air scheduling for transshipment of fresh potential, despite the large number of studies tuna; ability to survive in the and associated recommendations. This characteristically boom and bust following sentiment was reflected in a recent environment; and strong affiliation with key communiqué issued by the 37th meeting of the foreign markets; Pacific Islands Forum (heads of · The need for government policies, and state/government): transparent and effective resource 12 ...COGNISANT of the significant Two themes or issues were common: economic opportunities which the (a) The excessive and direct regional fisheries resource offers to all involvement of government in our members, and of the comparatively domestic industry to the detriment of low returns on the resource being sustainable locally based achieved by countries in the region..... industrialization; and (b) The protective nature of domestic This may suggest the need to "think outside the economies, resources, and business box", and consider a very different approach to interests with economies oriented to the well-known physical, institutional and serving government rather than political constraints to tuna fisheries government serving wealth-creating development. Such an approach may focus on locally based industry. increasing the fleet's value added, through better coordinated management of the fisheries and Ten years later, the situation had changed resources, and by facilitating the sharing in remarkably. The subject of existing and future foreign processing and marketing activities by roles of the government and private sector in the PICs. The latter may be possible through the use development of tuna industries in the Pacific of modern financial vehicles and instruments, Islands was the subject of a chapter in an FFA such as one or more sovereign or private equity report (Gillett 2003): funds, that would enable public and private interests in PICs to financially participate in Learning from past difficulties, most DWFN's ongoing or future catching activities of the fisheries officers encountered and those profitable downstream aspects of the expressed the sentiment that the tuna industry that are currently difficult to break government should refrain from into (e.g. processing and marketing of high value commercial involvement and focus on tuna in Japan, USA). Such participation may improving the policy environment. possibly be linked to priority allocation of future With respect to actual commitment, it fishing licenses, fishing days, or -- in the more appears that in many countries, distant future -- the creation of a quota regime. efforts have largely changed from Quotas granted for long periods may attain a promoting state enterprises to high value. A quota regime could be designed to encouraging domestic private sector bring maximum benefits to PICs. In the future, a fishing and, secondly, foreign sovereign PIC fund or funds might become involvement in other aspects of the involved in merger and acquisition activities and tuna industry. This evolution in even privatizations to enhance PICs' share of the attitudes appears quite healthy and regional tuna industry, supported by a may be one of the major factors preferential quota allocation regime. This would responsible for the increasing require parallel efforts to assess how the political national prominence of domestic tuna implications and constraints of such an approach industries in the region. With that could be overcome. positive background, some difficult issues associated with direct 3.3 Existing and Potential Role of the government involvement in the tuna Private Sector industry remain: A major feature of past tuna fishery (a) What should be done with development efforts in the region was the government initiatives that have prominent role of governments. A major ADB been set in motion years ago? project in the early 1990s chronicled PIC government involvement in the tuna industry. (b) If it has been shown that The report of the study (Pollard 1995) stated: development in the tuna industry should be private sector driven, 13 what is to be done in countries huge range of views on the subject of IUU tuna where the private sector is fishing in the Pacific Islands region. Despite the virtually non-existent? supposed impact of IUU fishing to the region, no analysis appears to have been carried on its It is generally recognized in the region that the possible economic impact: What is known of the major role of government in promoting tuna value of the IUU catch, how much that catch industry development should be improving the detracts from the value of the legitimate, and policy and sector management environment. ultimately, the most appropriate and/or cost- Translating this into improved policies still effective level of MCS focused on the IUU requires considerable effort; there is internal fishing. resistance in some countries to limiting the government's role to facilitation. 3.5 Adding Value 3.4 IUU Fishing in the Region Much work has been done in exploring how domestic value added could be increased, The use of the term IUU fishing (illegal, especially for the production from small, mid- unreported, and unregulated) in the region is scale tuna fisheries. The major constraint in often confined to offshore fishing, and mainly many such attempts appears to be high labor and by foreign fishing vessels -- in practice, mainly transport costs, and lack of economy of scale. tuna longliners. There are some exceptions, however: an operation in Fiji processes tuna and by-catch Much publicity has been generated on the (smoking, drying, flavoring) for specialty subject of IUU tuna fishing in the Pacific markets. Attempts at replicating that success Islands, but the actual amount that occurs is elsewhere (e.g. Tuvalu) have failed for a variety open to speculation. Greenpeace (2006) states of reasons, not the least of which are the general that, "pirates steal more than 4 times what the difficulties faced by Pacific Islanders operating a region earns in licenses", without stating the competitive business regardless of sector, and methods used to arrive at the estimate. A report the complexities of international marketing of by FFA (Richards 2001) uses the trends in its fishery products. violations and prosecutions database to conclude that, "While the number of reported violations A recent FFA report (Philipson 2006) has fluctuated with the rise and fall of fishing commented on tuna longlining and value adding activity in the western and central Pacific Ocean in the Pacific Islands: region, it appears that the compliance environment that has been created has reduced National longline fleets were largely the illegal activities of fishing vessels in the EEZ established when the conventional of FFA member countries." It also appears that model was highly profitable -- this the level of IUU fishing has remained relatively is no longer the case. Although the low and constant. Few people would argue with highest returns can be made from Doulman (2007) who reports that, "it is exporting whole fresh sashimi grade extremely difficult to estimate quantity and tuna, the economics of the industry value of IUU fishing in the region". Efforts are have changed over the last ten years being made to develop a methodology to make or so, and it is often only profitable such an estimate. to export a small proportion of the total catch in this form. Companies At the third regular session of the Technical and that can process the remainder of Compliance Committee of the Western and the catch into value added products Central Pacific Fisheries Commission (WCPFC) are more profitable, and many small in October 2007, a provisional IUU vessel list companies that relied on the was compiled, which included six tuna vessels. conventional model are struggling to From the above it can be seen that there is a survive. 14 Currently, FFA is sponsoring a study to examine regional and international treaties; and how more of the purse-seine catch could be · In addition to these two regional processed within the region. This typically organizations, other organizations with would involve canning or loining. Because of fisheries involvement include the Secretariat the large number of people employed by canning of the Pacific Regional Environment and/or loining operations, governments are quite Programme (SPREP), University of the interested in having such a facility. However, the South Pacific (USP), Pacific Islands Applied following points should be considered: Geoscience Commission (SOPAC), and PIFS. · Although a large number of tuna cannery feasibility studies have been carried out in Few fisheries initiatives in the region are the region, few are optimistic; implemented independently of the regional · Promises of future canneries (or of closing organizations. To some degree, both FFA and down existing ones) is a ploy often used in SPC prefer to offer donors a menu of projects the region by big tuna companies during (previously endorsed by their members) from access and wage negotiations; which the donor can choose, rather than be · The two smallest canneries in the region associated with a project designed by a donor (Pafco in Fiji and Soltai in the Solomon that is seeking a regional implementing agency. Islands) have had few, if any, profitable years; and For this study, the concept of identifying major · There are few comparative advantages of a issues constraining Pacific Island countries from tuna cannery located in a PIC, other than obtaining optimal benefits from their fishery preferential market access (e.g. canneries in resources was discussed with senior officials of American Samoa enjoy preference in the US SPC and FFA. market; those in PNG in the EU). · A session at the SPC Conference in Apia in 3.6 Regional Institutions Involved in November 2007 briefly looked at the "future Fisheries of fish" in the Pacific Islands. According to the Director of SPC's Marine Resources Fisheries cooperation, fostered by regional Division, some political support was organizations, is a prominent feature of the obtained for a joint FFA/SPC-sponsored Pacific Islands. The region has three task force and think tank that would work organizations with major involvement in during early 2008 on planning for the long- fisheries matters and several others with term future of fisheries and aquaculture in peripheral involvement: the region. SPC's Marine Resources Director indicated that the World Bank · The Secretariat of the Pacific Community might be interested in joining, supporting, or (SPC), headquarters in New Caledonia, has sponsoring this task force, or in a fisheries program that is primarily implementing its recommendations; and concerned with scientific research on tuna · FFA's Deputy Director-General felt that to fisheries and with research, development, maximize economic gains from tuna and management of coastal fisheries for 22 fisheries, a number of innovative PICs; development and value adding strategies · The Pacific Islands Forum Fisheries Agency should be pursued. These include: the (FFA), headquarters in the Solomon Islands, application of rights-based fisheries is concerned primarily with economic and management systems, development of policy aspects of the offshore tuna fisheries access agreements that are more transparent in 14 independent PICs, plus Australia and and less susceptible to political intervention, New Zealand. FFA has achieved a high collaborative negotiation of access degree of success in coordination leading to agreements by member countries, effective negotiations that are not compromised by 15 the interests of DWFN bureaucrats and The Pacific Island Forum is a meeting of PIC fishing companies, avoiding negotiations heads of state and government, plus Australia that trade aid for access, assuring that and New Zealand. The 37th Forum meeting took fishery development infrastructure occurs place in Tonga in mid-October 2007. The report not on DWFN soil but in Pacific Island of that meeting gave special and unprecedented countries and territories, and considering all prominence to fisheries. Excerpts from that sub-sectors, including recreational fishing report are given in Appendix 9. and ecotourism, in an integrated way. Table 3: Some Attributes of Pacific Island Regional Organizations Involved in Fisheries Other regional FFA SPC organizations with fishery Comment involvement Main area of Management of tuna Most aspects of SPREP ­ environmental Activities of regional emphasis fisheries and increasing coastal fisheries and aspects of fisheries; organizations are benefits to PICs from scientific research on SOPAC ­ non-living coordinated to some tuna fishing activities tuna resources and remote degree by the sensing; Council of Regional FFA was originally Fisheries are only one USP ­ Marine Studies Organizations in the involved with all fisheries, aspect of SPC's work Program involved in wide Pacific (CROP) but in the early 1990s, program, which also range of training; refocused almost entirely covers issues such as PIFS ­ Major political on tuna health, demography, initiatives, some natural and agriculture resource and economic Inter-regional The FFA/SPC relationship has had ups and downs In theory, all regional CROP has a Marine relationships over the years. Disagreements in the early 1990s organizations are under Sector Working were followed by tremendous improvement in the the umbrella of PIFS. Group that is quite mid-late 1990s. An annual colloquium has helped, There is a large recent active. but some issues have recently emerged. The initiative to rationalize the concept of a joint FFA/SPC-sponsored task force regional organization and think tank on the long-term future of fisheries relationships and aquaculture in the region was discussed at the SPC Conference in Apia in November 2007 Main Direct contact with its There is considerable Because PIFS is under strengths governing body many staff continuity. The the senior regional times per year results in a Oceanic Fisheries leaders, it is considered high degree of Programme often sets the premier regional accountability. Mandate the standard for tuna organization. of tight focus on tuna research in the world eliminates considerable dissipation of effort Membership Australia and New Includes the major SOPAC: same as FFA plus American Samoa, Zealand, plus the metropolitan countries, French Polynesia, New Caledonia; following PICs: Cook and all Pacific Island USP: Cook Islands, Fiji, Kiribati, Marshall Islands, Islands, FSM, Fiji countries and Nauru, Niue, Samoa, Solomon Islands, Tokelau, Kiribati, Marshall Islands, territories. The most Tonga, Tuvalu, and Vanuatu Nauru, New Zealand, inclusive of any SPREP: 21 Pacific Island countries and territories, Niue, Palau, PNG, regional organization plus Australia, France, New Zealand, and USA; Samoa, Solomon Islands, PIFS: same as FFA Tokelau, Tonga, Tuvalu, and Vanuatu 16 4. Key Constraints and Mitigating Factors Identifying and mitigating the key constraints to detract from the effectiveness of regional and fisheries development in the Pacific Islands international organizations, such as FFA, SPC, region have formed the core of the fisheries and WCPFC. Mitigating actions include: programs of SPC and FFA for decades, indicating the complexity of the situation and of · Consolidating experiences from the many the difficulty in finding solutions that can be institutional enhancement projects that have implemented. In this report, many of the been carried out in PIC fisheries constraints to PICs receiving greater benefits departments and on the regional level, and from fisheries can be placed into two categories: link these efforts to ongoing governance (a) governance and (b) small countries and/or programs in and outside the sector at industries struggling with powerful countries national and regional levels. Bring in and powerful economic interests ("leveling the experience from other regions; playing field"). The measures suggested for their · Enhancing the ability of fishery stakeholders mitigation are mostly conventional, and are to influence fisheries department policies similar to approaches that have been attempted and activities and to promote accountability; (with varying degrees of success) in recent · Enhancing the skills of fishery managers history, although suggestions for a different (see below); and approach are also made. · Creating evaluation and oversight mechanisms to assure greater adherence to 4.1 Governance policies and legislation; for example, bring the results of governance improvement work Poor national fisheries institutions. In general, and evaluations to the attention of government fisheries agencies are far less stakeholders, high-level authorities, and the effective at present than they were two decades general public. ago. Several reasons account for this and there are large differences between countries. Factors The main beneficiaries of such actions would be include poor institutional structures that result in commercial fishing companies, village fishers, low accountability to stakeholders, corruption, national treasuries, and regional organizations. poorly trained staff, and budgetary processes that favor staffing levels over activities. Many of Corruption in fisheries. In recent years there the present difficulties in the fisheries sector can has been a noticeable rise in fisheries-related be traced directly to ineffective fisheries corruption in the region, as judged by departments, while the mitigation of other complaints from the private sector, court problems is constrained by inactivity of convictions, discipline by public service departments. Low levels of professionalism are a commissions, and observations by major issue. This problem has been recognized knowledgeable individuals. Although there is by donors that are active in the fisheries sector. ongoing work on fisheries governance (e.g. by Many millions have been spent by Australia, Australia and FFA), this particular subject ADB, FAO and others on improving the appears "too hot to handle" by the regional governance within the fisheries sector in many organizations and even some bilateral agencies. PICs, including PNG, FSM, Solomon Islands, The importance of this subject was often mooted Samoa, Tonga, and the Cook Islands. More by ADB, which took little, if any, action before assistance is planned for the future, but there is reducing its involvement in the fisheries sector. some question as to its effectiveness and Corruption is a major issue in fisheries sustainability. Weak national institutions also governance, and many of the actions identified 17 above for improving fisheries institutions also been in a position to scold their members when apply to decreasing corruption. Mitigating solidarity has broken down. Mitigating actions actions include: include: · Identifying simple generic measures for · Studying the economic and political costs of deterring corruption that is specific to the eroding regional solidarity in fisheries, fisheries sector; giving examples of where it has occurred, · Estimating and publicizing the cost to the and using the media and SPC/FFA to national and regional economy of corrupt highlight the issues; activity in the fisheries sector; and · Encouraging the concept of accountability in · Establishing links between national and regional agreements, including pre-agreed international anti-corruption activities and mechanisms for dealing with non- those at the fisheries level. compliance; and · Regular consultation between heads of The main beneficiaries of such actions would be regional organizations and senior leaders of commercial fishing companies, village fishers, the region on the status of regional solidarity and national treasuries. in fisheries. Lack of skilled fishery managers. In many The main beneficiaries of such actions would be smaller PICs, fishery agencies do not possess national treasuries and regional organizations. staff with skills needed to effectively manage fisheries. For example, most PICs required Government policies for tuna industry outside assistance to formulate national plans of development. As mentioned in Section 3.3, it is action for IUU fishing. In addition, the regional generally recognized in the region that the major university does not recognize the large and role of government in promoting tuna industry growing need for fisheries managers. Mitigating development should be improving fisheries actions include: management policies. This concept, however, has not been fully implemented in most PICs. · Creating an awareness and reviewing the Mitigating actions include: curriculum of USP and other regional institutions in conjunction with a survey of · Carrying out national reviews of private demand from government fishery agencies; sector investment conditions, similar to past and general exercises of the Foreign Investment · Arranging a program to finance fisheries Advisory Service/International Finance management students and mid-career Corporation, but focusing on the fisheries managers. sector, using both investment and fisheries expertise; The main beneficiaries of such actions would be · Exploring potential benefits of improved new fisheries officers, fishery departments, resource and sector management, assessing tertiary institutions, and fishers. multiple scenarios of resource and fleet management, and improvements in the Regional solidarity in fisheries. In previous framework for private investment; and decades, the region was noted for its solidarity in · Developing a group of donors that would fisheries matters, especially in dealing with jointly support a rational private sector DWFNs. For various reasons, this solidarity has investment program, possibly in conjunction decreased (see following section on "Levelling with the negotiation and implementation of the playing field"). Some countries are departing future fisheries agreements and adjustments from regional agreements and the potential for of the resource management system. regional solidarity in future negotiations has decreased. The regional organizations have not 18 The main beneficiaries of such actions would be · Enhancing the skills of fishery managers and fishing companies and national treasuries. improving national fishery institutions (see above); Weak governance in the inshore fisheries sub- · Using existing regional institutions to sector. In many countries, fishery policies, expand efforts to regularly reach and inform fisheries department activities, and staff senior fisheries managers, public decision experience appear to be "stuck in the 1960s". makers, politicians and private sector There needs to be a transition from government- representatives about the findings and led development of what are often non-existent recommendations of past studies and discuss opportunities, to the concept that fisheries what follow-up measures could be departments, fisheries officers, and communities envisaged and realistically implemented; are guardians of marine resources. A related and matter concerns village food supplies. Although · Supporting fisheries planning by providing the security of village marine food resources is independent advice that would analyze, arguably the greatest issue with respect to consolidate and enhance existing national inshore fisheries in the region, there is some fisheries development and management danger that its importance may be obscured by strategies. the quest for greater economic development. The latter is often attempted through expensive The main beneficiaries of such actions would be projects that are ineffective. Mitigating actions fishers, fishery departments, and national include: treasuries. · Promoting policies or management plans 4.2 "Leveling the playing field" against which the actions of fishery departments with regards to inshore fisheries WCPFC effectiveness. The new Western and can be measured (similar to what was done Central Pacific Fisheries Commission represents in offshore fisheries with the tuna many years of work to provide the framework management plan initiative of FFA); for conserving regional tuna resources; the · Subjecting inshore development schemes to sustainability of the region's tuna resources is objective economic scrutiny by enhancing largely reliant on the success of the the ability of regional organizations to Commission. The effectiveness of the new provide economic advice on small-scale commission is being undermined by some fisheries; and DWFNs. In recent Commission meetings, most · Enhancing skills of fishery managers. efforts to initiate management or even monitoring are being derailed or delayed. The main beneficiaries of such actions would be According to some observers, one reason is the village fishers, communities, fishery relatively large influence of certain segments of departments, and national treasuries. the DWFN fishing industry on national governments. WCPFC suffers from institutional Do the studies have an impact? There have imbalances that make it difficult for it to fairly been many studies examining how to obtain represent the interests of both DWFNs and PICs. greater benefits from tuna resources in the The tension between DWFN interests and those region. The sheer number of studies may of PICs is manifested within WCPFC. obscure three important difficulties: (a) they are Mitigating actions include: frequently not read by decision makers or those advising on decisions; (b) many studies have · Assessing how regional agencies could focused on a narrow topic and not been linked to become more effective as a group in overall national strategies; (c) many studies fail channeling the scientific, economic, and to assess the financial and political benefits and political arguments surrounding tuna sector costs of sector decisions. Mitigating actions management, including issues of regional include: 19 solidarity (see following section); advantages of including political and market · Reviewing the current obstructionist policies intelligence in the process of negotiating of some DWFNs, as part of the above fisheries agreements, even with the exceedingly assessment, and defining a political and well-prepared EU. PICs collectively control a economic common ground; and substantial amount of the world's tuna. This · Analyzing the costs, benefits and difficulties bargaining power is diluted by various internal of the PICs attempting to implement forces, including foreign aid, corruption, and management measures independent of the weak national fisheries institutions. However, WCPFC. PICs have rarely seriously analyzed the strengths and weaknesses of DWFNs, and how The main beneficiaries of such actions would be their positions could be manipulated. By not WCPFC and PICs. using their advantage, PICs are in a much weaker position for extracting license fees, Eroding regional solidarity. PICs, which encouraging onshore investment, and deriving include some of the world's smallest countries, other benefits. Mitigating action is: can effectively deal with more powerful countries and powerful economic interests only · Developing short- and long-term negotiation through regional solidarity. Although the region strategies to maximize future PIC benefits was a model of cohesiveness in fisheries issues from licensing and investment, in large part in past decades, this solidarity has diminished in by: (a) better exploiting their sovereign recent years. Various reasons account for this, ownership, and the current and potential including poor governance, but also the fact that value of their tuna stocks; (b) better some PICs have much greater tuna resources understanding the needs and interests of than others, and hence have different economic different groups that influence and interests. Solidarity does not occur participate in the negotiation process, and spontaneously, but requires a degree of assess which groups would be most leadership that may be incompatible with the amenable to jointly developing and concepts of WCPFC and the narrower secretariat contributing to PIC sector strategies; (c) role of FFA. Mitigating actions include: developing strategies to influence and cooperate with those groups in DWFNs, · Assessing the economic and political costs including the USA and EU; (d) giving of eroding regional solidarity in fisheries, priority access to those commercial and giving examples of where it has occurred, other interest groups that best service PIC and how it may be avoided in the future; interests; and (e) better using market · Encouraging the concept of accountability in intelligence in defining licensing regional agreements, including pre-agreed arrangements and linked foreign investment mechanisms for dealing with non- in domestic value added activities. compliance; and · Developing a regional sector management The main beneficiaries of such action would be strategy that enables the resource poorest national treasuries and regional organizations. PIC to equitably benefit from regional tuna resources by enhancing PIC benefits across Market access. Access to the world's lucrative the board. tuna markets is often constrained by food safety issues (i.e. HACCP -- Hazard Analysis and The main beneficiaries of such actions would be Critical Control Point), the requirements of trade national treasuries and regional organizations. agreements, and logistical considerations. In addition, foreign markets are often dominated by Countries not "taking advantage of their a limited number of large interests that are able advantage" when dealing with DWFNs. to constrain access by others. More fundamental Mauritania has demonstrated the potential approaches to address the access issue are discussed below. With regards to sanitary 20 requirements, only PNG is now compliant with · Separating facts from fiction by EU regulations. Solomon Islands and Fiji will documenting precisely what is known and soon be excluded from the important EU market, unknown about IUU fishing in the Pacific and countries aspiring to export to the EU (e.g. Islands region; and Tonga, Samoa, and the Marshall Islands) are · Carrying out analysis of the economic likely to be prevented from doing so. Some of impact of various levels of IUU fishing and the most important logistical considerations in relating this to appropriate levels of MCS market access concern inadequate airports and activity, bearing in mind the aid and non- airline policies. Many countries do not have fisheries components. adequate size airports for economical air- freighting and most airlines that service the The main beneficiaries of these actions would be region are likely to introduce aircraft that have fishery departments, national defense agencies, less air cargo capacity. More fundamentally, the and national treasuries. recent increases in energy prices will substantially alter the traditional fishing, 4.3 New approaches processing and marketing paradigm of tuna products, as energy intensive catching and long- The mitigation measures identified above are in distance airfreight based marketing activities many respects conventional, and are similar to become increasingly unprofitable. Mitigating approaches that have been attempted -- actions include: sometimes with mediocre results -- in the last two decades. This lack of success could indicate · Promoting more effective national fisheries that a fundamental change of strategy may be institutions in order to seriously address the required to improve PIC benefits from some of blockages created by not addressing their fisheries, or at least such a change is sanitary requirements; and worthy of consideration. The recent increase in · Revisiting and updating the FFA air energy costs also suggests that the tuna fishery freighting study in 2000, including regional and marketing "model" that has historically cooperation in air freighting of fish. grown in the Pacific region over the past 60 years will require a fundamental rethinking. The The main beneficiaries of such actions would be traditional paradigm of energy intensive forms fishing companies and post-harvest fisheries of catching tuna -- being processed in low value workers. canned products targeting mature protected markets -- is unlikely to be financially The appropriate role for monitoring, control, sustainable in the future as energy prices remain and surveillance (MCS). There is much high and protected markets liberalize, notably in publicity and activity related to IUU fishing the EU. Energy intensive fisheries that target activities and their eradication (Section 3.4 tuna for direct human consumption and are above). Despite its importance, however, no marketed through long-distance air freight can examination has been made of the economic only continue if retail prices demonstrate the impacts of IUU activities. There is no rigorous same elasticity as (other) luxury goods, which is factual basis to recent IUU estimates, and little far from certain. Accordingly, some information exists on the cost of IUU fishing, suggestions for a more radical approach are the cost-effectiveness of current MCS activities, offered. New approaches may circumvent or the appropriate level of MCS in the future. If traditional institutional and political constraints IUU fishing has little economic impact (i.e. does and/or may actively aim to address them. not detract substantially from legal catches), then spending enormous amounts of money on The following ideas, which have not been MCS may not be warranted. Knowing the discussed with any stakeholder groups, deserve impact of IUU may help to determine the attention. appropriate level of expenditure on MCS activity. Mitigating actions include: 21 Use of modern financial vehicles and on all species in the (western) Pacific Ocean; (b) instruments. Rapid development of financial reducing the use of fishing gear, processing products and processes in the developed world methods and distribution systems that require has not yet affected the global tuna industry. It high energy inputs per ton of final retail product, may be worthwhile to explore the potential for and introduce and expand less energy intensive and design of financial vehicles and instruments methods; (c) improving the efficiency of the fish that would enable public and private interests in landings system, processing and transport PICs to financially participate in DWFN's distribution to limit "transfer" costs; and (d) ongoing or future tuna catching activities, and organizing the industry to focus on products and those profitable downstream aspects of the tuna markets where tuna from the Pacific Ocean -- industry that are currently difficult to break into which dominates global supplies -- can best (e.g. processing and marketing of high-value influence retail price levels. PICs and DWFNs tuna in Japan and USA). The potential benefits will have common objectives and interests to of using these vehicles -- such as private equity jointly and effectively pursue these solutions, or and sovereign funds -- to enable PIC investment risk a collapse of current status quo in local and foreign corporations may be arrangements. substantially enhanced by linking such financial participation to priority allocation of future More active multi-lateral donor participation fishing licenses, or (in the more distant future) in fishing sector management. WCPFC's the creation of a quota regime. Quotas granted current governance model is the result of the for long periods may attain a high value. A historic combination of scientific (biological) quota regime could be designed to bring approaches to resource management that largely maximum benefits to PICs, using financial ignored economic and political considerations, approaches that would reflect quota values with resource management actions dominated by and/or investments in companies that would powerful economic and national political benefit most from quotas. In the future, a interests from DWFNs. When combined with sovereign PIC fund or funds might become market dominance by DWFNs and the very involved in merger and acquisition activities and limited capacity of local sector governance, the even privatizations to enhance PICs' share of the result is a system inherently biased towards regional tuna industry, supported by a DWFN and foreign market interests. ADB has preferential quota allocation regime. This would tried to address this bias, but has withdrawn require parallel efforts to assess how the political from the fisheries sector in the Pacific. The implications and constraints of such an approach World Bank may face stakeholder objections if could be overcome. These tools may also be it becomes involved. However, the World Bank used in the looming process to restructure the may be far better placed and have more potential regional tuna industry (catching, processing and tools to actively support a more balanced sector marketing) to mitigate the effects of rapidly management approach that could: rising energy prices and changes in major world markets as a result of significant exchange rate · Better prepare PICs for tuna licensing and movements, differences in relative income resource management negotiations, growth and changing consumer demand including programs to study key stakeholder patterns. interests and widen negotiation strategies to include transparent donor aid programs for Sector restructuring. Fundamental solutions to other sectors, political and market concerns, mitigate the effects of high energy prices, major and better coordination of commercial and changes in exchange rates, relative economic policy interests; growth between Asia, Europe and the USA, and · Link implementation of national economic changes in consumer demand fall in four development programs supported by the categories: (a) increasing catches per unit of World Bank and other donors to direct fishing effort, by substantially increasing the support for regional cooperation; tuna biomass and reduce the total fishing efforts · Support planning for the long-term future of 22 fisheries and aquaculture in the region; for sharks and seabirds and IUU fishing, food · Actively support donor coordination for the security, HACCP arrangements, bottomfish sector, possibly linking ongoing World Bank management, and the promotion of the Code of support activities in the eastern Pacific (e.g. Conduct for Responsible Fisheries. proposals for a purse-seine buyout The Australian Agency for International program); and Development (AusAID) is a major fisheries · Actively support a training program for donor in the region. It has had major fisheries fisheries sector managers and policy makers. institutional enhancement projects in Samoa and Tonga, is a major contributor to fisheries work at 4.4 Current Sponsors of Activities in FFA (36% of the regular budget plus extra- the Fisheries Sector budgetary activities) and SPC, has provided fisheries scholarships at USP and in Australia, The Asian Development Bank's major recent supported the National Fisheries College in fisheries initiatives in the region have included PNG, and has maritime surveillance cooperation strengthening fisheries agencies in PNG, FSM with most PICs, including patrol boats and and the Marshall Islands; a review of the periodic aircraft flights. In the past, the agency fisheries sector in Fiji; and regional studies of: has supported fisheries advisors and rural (a) the contribution of fisheries to Pacific Island fisheries centers in several countries. AusAID economies; (b) the importance of tuna in the has just completed a framework to guide its region; (c) the live reef food fish trade; and (d) engagement in the region's fisheries sector for alternative approaches to fisheries access the next five years (AusAID 2007), which negotiations. The latter produced a fairly indicates that the priority areas for AusAID's controversial report, at least from the perspective regional and bilateral engagement in the sector of FFA. According to the ADB officer formerly will be: responsible for Pacific Island fisheries matters, policy changes have occurred at ADB, and the · Improving fisheries governance and organization is no longer involved in the Pacific regulation, strengthening institutions, Island fisheries matters, except perhaps the case enhancing legal frameworks and where there is a fisheries component within a compliance, and countering corruption; larger integrated development loan. · Supporting private-sector led development in commercial fisheries and aquaculture, The major activity of the Food and Agriculture including improvements in the investment Organization of the United Nations in the climate, trade and market access, region in recent years has been from the FAO infrastructure and in private sector capacity; Technical Cooperation Programme. Some of · Sustaining small-scale coastal commercial these projects have included enhancing and subsistence fisheries, with the management capacity of government fishery development of effective community-based agencies, a fisheries sector study in Tonga, management of inshore resources a key fisheries legislation, seaweed cultivation, and component in support of effective national fishery policies. FAO also has major ecosystem-based management for involvement in the region's fisheries statistics, sustainability, with an emphasis on capacity including scrutinizing and publishing statistics building, training and education in on fishery production furnished by national government agencies, in fisheries businesses authorities on an annual basis, a project on and in the wider community; and improving statistics on coastal and subsistence · Improving knowledge and making fisheries and aquaculture, and the associated information areas accessible; key areas Pacific Islands Regional Workshop on Fishery include fisheries resources, levels of use and Statistics. Other FAO Pacific Island fisheries sustainability, impacts of factors such as activities have included a regional sea safety climate change on ecosystem processes, project, aquaculture projects, management plans fisheries and national food security and 23 nutritional needs, and economic and social A summary of World Bank interventions that components. could lead to more benefits to PICs is given in · Table 4. These are given in rough order of Other donors include: priority; interventions are prioritized according to the magnitude of likely benefits and whether · The EU is major contributor to SPC's the area is currently being addressed. The PROCFish project (inshore and offshore interventions range from studies that could be fisheries), FFA's DevFish Project (private carried out relatively quickly to long-term sector tuna industry, see later section), and support. assistance related to its bilateral fisheries access agreements in the region. The EU Comment regarding the suggested interventions: provided the now largely defunct rural Pacific Island regional organizations should be fisheries centers in the Solomon Islands. involved early on in the process of making a · Japan is a major contributor to fisheries commitment to intervene in fisheries-related infrastructure (including the Marine Studies activities. Those organizations, especially FFA, buildings at USP); rural fisheries centers in are intimately involved in many of the suggested Fiji, Tuvalu, Marshall Islands, and Palau; intervention areas. Depending on how they are scholarships to study fisheries subjects in approached, the regional organizations could Japan; an industry advisor at FFA; and, welcome the involvement of a new donor, or through the Overseas Fishery Cooperation view it as a competitive threat. In addition, the Foundation, many types of assistance related regional organizations may have undertaken to fisheries in countries with which Japan confidential studies that are relevant to the has fisheries access agreements. suggested intervention areas, the results of · New Zealand is a major contributor to FFA which may not be available to the authors of the (36% of the regular budget plus extra- present study. Finally, situations can change budgetary activities) and SPC, fisheries rapidly (e.g. the Pacific Island Forum's recent institution enhancement work in Cook Vava'u Declaration on Pacific Fisheries Islands and Solomon Islands, long-term Resources), and the present study could easily sponsor of SPC training course in New become dated if not updated by the regional Zealand. organizations. The following suggestions may be part of a more fundamental restructuring Additional donors include the Commonwealth process of tuna fisheries in the Pacific, which the Secretariat, France, Canada, USA, Taiwan, and World Bank may support through a combination Iceland. of studies, technical assistance, and financial support for private sector and public 4.5 Summary of Potential World Bank investments. Interventions 24 Table 4: Summary of the Suggested Intervention Areas Intervention Area Comment (including time frame) Reduce corruption in Although there is a general consensus that this is a large and growing problem in the fisheries sector, it may fisheries be "too hot to handle" for the regional organizations and most bilateral donors. International and fisheries perspectives need to be combined with local efforts to reduce corruption in the fisheries sector. Few people disagree with the contention that the World Bank could make a valuable contribution in this area. Even a short-term intervention could result in benefits. Improve poor national Substantial activities are currently being undertaken by FFA, Australia, and New Zealand but additional fisheries institutions resources, skills, and perspectives are required. A mixture of short-term and long-term activities is needed. Enhance skills of High-level respected fishery educators are required for a diagnosis of the situation, followed by long-term fishery managers support for fisheries management students. Encourage countries to FFA recognizes the need for innovation in this area, but few innovative ideas are presently being nurtured. "take advantage of Proposed activities in this report dealing with this are more risky than approaches that have been pursued their advantage" in for many years, but the current complacency needs to be challenged. The process to support these dealing with DWFNs innovations needs to receive support from outside the region. People involved would require a thorough understanding of the situation, and participate during the entire awareness/education/implementation process, as was the (successful) case of introducing the first only multi-lateral access treaty. A long-term activity. Increase PIC Similar to the "taking advantage of the advantage" above: ideas are somewhat risky but the lack of major participation in the success in recent years calls for innovation. Needs long-term, high quality advice from outside the region, tuna industry and possibly cooperation or start-up coordination with existing sovereign funds. Improve impact of This intervention area combines management skills upgrading, making high quality studies more accessible fisheries studies and understandable, and the need for some independent and high quality advice on some of the more important fisheries issues and constraints. The interventions required would cover the medium term and long term. Improve government An FFA project (DevFish) is involved in this subject, and has had considerable success, although much policies for tuna more could be done with additional resources. DevFish has limited funds to cover the 14 target countries, industry development over a four-year period. The interventions required would cover the short and medium term. Improve regional A very political undertaking, but most efforts to improve benefits from the region's tuna fisheries will be solidarity in fisheries ineffective unless this issue is highlighted, improved, and monitored. The interventions required would cover the short term and medium term. Improve the Because much of the hope for the sustainability of the region's tuna resources is focused on the new effectiveness of the Commission (which in some respects is appearing increasingly ineffective), efforts to increase its Western and Central effectiveness are crucially important. PICs and their advisors may be short of solutions in this area. Medium- Pacific Fisheries term assistance is required. Commission Strengthen governance Although the benefits to be gained in this area are not as great as those in the tuna fisheries, much of the in the inshore fisheries present fisheries-related employment and nutrition for PIC residents is from inshore fisheries. SPC has subsector substantial competence in inshore fisheries, but does not have expertise in fisheries governance and fisheries economics. The interventions required would cover the medium term and long term. Improve effectiveness Although IUU fishing appears to be a large problem in the region, opinions on the magnitude of the problem of MCS through vary considerably. Additionally, without some form of economic analysis, it is difficult make decisions related economic analysis to the level of MCS that is most cost-effective. The intervention suggested here is short-term. More active multi- This different approach to fisheries development in the region is a long-term activity. lateral donor participation in fishing sector management Improve market access Although advice is needed urgently to continue access to many markets, in the long term, more effective institutions (including fishers associations) are needed to give the issue the attention it deserves. Specific studies that 1. Analysis of the introduction of quotas linked to fee structure. may cover a broader 2. Current and future use of public revenue obtained from licenses, fees, and linked aid. (economic and/or political) area than existing technical analysis 25 5. References ADB (Asian Development Bank) 1997. The Pacific Tuna ­ The Challenge of Investing in Growth. Asian Development Bank, Manila, Philippines. Barclay, K. and I. Cartwright. 2006. Capturing Wealth from Tuna: Key Issues for Pacific Island Countries. Australian National University, Canberra, Australian Capital Territory. AusAID (Australian Agency for International Development). 2007. Valuing Pacific Fish: A Framework for Fisheries-Related Development Assistance in the Pacific. Australian Agency for International Development, Canberra, Australian Capital Territory. Bertignac, M., H.F. Campbell, J. Hampton, and A.J. Hand. 2001. "Maximizing Resource Rent From the Western and Central Pacific Tuna Fisheries". Marine Resources Economics 15(3):151­177. Campling, L., E. Havice and V. Ram-Bidesi. 2006. Pacific Islands Countries, The Global Tuna Industry and the International Trade Regime ­ A Guidebook. Forum Fisheries Agency, Honiara, Solomon Islands. DevFish (2007). Second Year Annual Report. Development of Tuna Fisheries in the Pacific ACP Countries. Pacific Islands Forum Fisheries Agency, Honiara, Solomon Islands. Doulman, D. 2007. Illegal, Unreported, and Unregulated Fishing: South Pacific Responses to a Major Global Challenge. PIMRIS Newsletter (University of the South Pacific) 19(2­3):3­4. Duncan, R. 2006. Troubled Fishing in Pacific Waters. Paper presented to the Fisheries Economics Management and Tuna Management Workshop for the Pacific Islands, held at The Australian National University, Canberra, on 25 and 26 September 2006. FIAS (Foreign Investment Advisory Service). 2000. Capturing Economic Benefits from Tuna Fisheries. Foreign Investment Advisory Service, Asia-Pacific Regional Office, Sydney, Australia. Gillett, R. 2002. Pacific Island Fisheries: Regional and Country Information. Asia-Pacific Fishery Commission, Food and Agriculture Organization of the United Nations, Regional Office for Asia and the Pacific, Bangkok. 168 p. Gillett, R. 2002b. The Work of FAO in the Fisheries Sector of the Pacific Islands. Food and Agriculture Organization of the United Nations, Bangkok. 28 p. Gillett, R. 2003. Domestic Tuna Industry Development in the Pacific Islands: The Current Situation and Considerations for Future Development Assistance. Report 03/01, Forum Fisheries Agency, Honiara, Solomon Islands. 198 p. Gillett, R. 2006. A Short History of Industrial Fishing in the Pacific Islands. Regional Office for Asia and the Pacific, Food and Agriculture Organization of the United Nations, Bangkok, Thailand. 16 p. Gillett, R. and A. Langley. 2007. Tuna for Tomorrow? Some of the Science Behind an Important Fishery in the Pacific Islands. Asian Development Bank, Manila, Philippines. 36 p. Gillett, R. and C. Lightfoot 2001. The Contribution of Fisheries to the Economies of Pacific Island Countries. Pacific Studies Series, Asian Development Bank, World Bank, Forum Fisheries Agency, Secretariat of the Pacific Community. 218 p. 26 Gillett, R., M. McCoy, L. Rodwell, and J. Tamate 2001. Tuna: A Key Economic Resource in the Pacific Islands. A report prepared for the Asian Development Bank and the Forum Fisheries Agency. Pacific Studies Series. 95 p. Gillett, R., M. McCoy, and D. Itano (2002). Status of the US Western Pacific Tuna Purse Seine Fleet. Bulletin of the Pelagic Fisheries Research Programme, Volume 7, Number 3, October­December 2002. GPA (Gillett, Preston, and Associates). 2005. Review of the Cost Structure and Building Sustained Competitive Advantage in the Papua New Guinea Domestic Fishing Industry. Gillett, Preston and Associates Inc. Greenpeace. 2006. Plundering the Pacific. [available online: http://oceans.greenpeace.org/en/documents- reports/plundering-pacific]. Lewis, A. 2004. A Review of Current Access Arrangements in Pacific Developing Member Countries. Project TA 6128-REG, Asian Development Bank, Manila, Philippines. 25 p. Philipson, P. 2006. An Assessment of Development Options in the Longline Fishery. Development of Tuna Fisheries in the Pacific ACP countries (DevFish) Project. 19 p. Pollard, S. 1995. Tuna Industry Development Study -- Regional Report. Report 95/66, Forum Fisheries Agency, Honiara, Solomon Islands. Reid, C. 2006. Economic Implications of an Implicit Allocation of Bigeye Harvest Rights Through an Across the Board Reduction in Effort Levels in the Western and Central Pacific Tuna Fishery. Forum Fisheries Agency, Honiara, Solomon Islands. Reid, C. 2007. The Value of the Catch in the WCPFC Area. FFA, Honiara, Solomon Islands. Richards, A. 2001. Reported Fisheries Violations in the EEZs of FFA Member Countries, 1978­2001: An Analysis of the Violations and Prosecutions Database. Report No. 01/18, Forum Fisheries Agency, Honiara, Solomon Islands. Tiller, S. 2004. On or Beyond the Horizon: A Discussion Paper on Options for Improving Economic Outcomes from the Western And Central Pacific Tuna Fishery. Asian Development Bank, Manila, Philippines. 63 p. Van Santen, G. 2005. Tuna Industry Indicators: Proposals for a simple annual system to monitor key parameters of the tuna fishery and its impact on FFA members. Report prepared for the Forum Fisheries Agency by the World Bank. 32 p. Van Santen, G. and P. Muller. 2000. Working Apart or Together. The case for a Common Approach to Management of the Tuna Resources in Exclusive Economic Zones of Pacific Island Countries. World Bank. 38 p. Williams, P. and C. Reid. 2007. Overview of Tuna Fisheries in the Western and Central Pacific Ocean, Including Economic Conditions -- 2006. Working paper from the third regular session of the Scientific Committee, Western and Central Pacific Fisheries Commission, SC3-2007/GN WP-1. 27 Appendix 1: The Main Tuna Fishing Gear Used in the Pacific Islands Region Gear Type Catch Typical vessel Notes Purse seine Mainly skipjack About 72% of the tuna catch and small in the WCPO region is by yellowfin are purse-seine gear (about 1.5 caught by million tons in 2006). Most of purse-seine the purse-seine catch is taken gear. Most within 50 of the equator. catch is for canning. Longline Most tuna About 10% of the tuna catch caught are large in the WCPO region is by size yellowfin, longline gear (about 229,000 bigeye, and tons in 2006). There are two albacore. The major types of longliners: (1) prime yellowfin relatively large vessels with and bigeye mechanical freezing often are exported fresh equipment (often based to overseas outside the Pacific Islands), markets. Most and (2) smaller vessels that of the albacore mostly use ice to preserve fish catch is for and are typically based at a canning. port in the Pacific. Islands Pole-and-line Mainly skipjack About 10% of the tuna catch and small in the WCPO region is by yellowfin are pole-and-line gear, about caught by pole- 212,000 tons in 2006. In the and-line gear. 1980s, several Pacific Island Most catch is for countries had fleets of these canning or vessels, but most no longer producing a dried product. operate because of competition with the more productive purse-seine gear. Most of the catch by this gear is made in Asian waters. Troll Large-scale Gear types other than the trolling targets three listed above are albacore for responsible for about 10% of canning. tuna catch in the WCPO. Large-scale trolling is an important part of this. It is carried out in the cool water to the south and north of the Pacific Islands region. Trolling in the south results in about 5,000 tons of albacore annually. Source: Gillett and Langley (2007) 28 Appendix 2: The Status of Tuna in the Western and Central Pacific Ocean Trends in catch Trends in catch Features of size Conclusions using per unit of effort composition MULTIFAN-CL data results Catches have Catch per unit of effort Size composition does Current levels of stock Skipjack increased steadily for most purse-seine not appear to suggest biomass are high and recent since 1970, more than fleets continues to be at major underlying trends catch levels appear easily doubling during the a high level. in the population. sustainable. 1980s, and the 2006 catch was the highest ever. Yellowfin Catches have Japanese longline fleet Purse-seine catch of The yellowfin stock in the increased steadily catch rates show adult yellowfin tuna is WCPO is probably not over- since 1970, more than variability and regional greater than the longline fished, but the stock is likely doubling during the differences, with an catch. The amount of to be nearing full exploitation, 1980s. The longline overall decline since very large yellowfin in and current levels of fishing catch peaked in the the early 1950s in the the longline catch mortality are likely to move late 1970s and early equatorial WCPO, but appears to have the yellowfin stock to an over- 1980s, but purse-seine little or no overall recent declined since the fished state. catches continue to trend in more 1960s. grow, ranging from temperate regions. 115,000­270,000 mt in the last decade. Bigeye Catches show much Nominal catch per unit Size composition data Fishing is having a large variation in recent of effort declined during over several decades impact on the biomass level. years; the catch for the early stages of the show a considerable The current level of 2005 was the highest fishery but has been decline in the proportion exploitation appears not to be recorded. fairly stable over recent of large fish in the sustainable in the long term, years. catch. unless the high recent recruitment is maintained. Albacore South Pacific albacore Longline catch rates Size composition varies South Pacific albacore tuna catches have been declined from the late from year to year, but stock has declined mostly in the range 1960s to the late no trends are evident moderately since the early 25,000­50,000 mt, 1980s, but increased in over the past five years. 1980s. The impact of all although a significant the mid-late 1990s. fishing is estimated to be peak was attained in Since 1999, the small, and higher levels of 1989, during the nominal catch rate has catch could likely be driftnet fishing era. been relatively stable in sustained. However, longline Total South Pacific the central area, fishing is focused on the albacore catches have increasing in the older fish resulting in a shown an increasing southern area, and biomass of the order of 30% trend since the mid- dropping in the northern in the most recent years on 1990s. area. that segment of the population. Source: Gillett and Langley (2007) 29 Appendix 3: Measures of Tuna Fisheries Benefits Table A-1: Estimates of Tuna Fishing Contribution to GDP 1999 2004 (Gillett/Lightfoot estimates) (DevFish estimates) Country Comm. Catch t. Catch x price x GDP US$ Tuna catch t. Catch x price x GDP US$ VAR (million) VAR Cook Islands 0 0 LL 2,660 2,660 x 2058 x 0.2 1.09 m FSM LL 2,500 PS n/r 2,500 x 5,000 x 6.25 m LL 840 PS 840 x 5,000 x 0.2 0.84 m 4.31 m 0.5 26,958 26,958 x 800 x 0.2 Fiji LL 5,000 P&L 500 5,500 x 4,670 x 12.85 m LL 13,886 13,886 x 8,200 x 28.47 m 0.5 0.25 Kiribati 0 0 Troll 2,000 2,000 x 2,000 x 2 m 0.5 Marshall 0 0 LL (tuna) 1,836 2,000 x 5,000 x 2.0 m 7.47 m* Islands LL (b/c) 1,835 0.2 n/a mainly PS 46,672 shark 46,672 x 800 x 0.2 Nauru 50 50 x 5,000 x 0.5 0.13 m LL 1.2 t. Troll 10 11.2 x 2,000 x 0.4 0.09m t. Niue 0 0 0 LL fishery started 0 in 2005 Palau LL 2,500 2,500 x 6,080 x 7.6 m LL 2,580 2,580 x 6,000 x 3.10 m 0.5 0.2 PNG PS 50,000 LL 500 50,500 x 878 x 0.4 17.74 m LL 4,810 PS LL 4,810 x 5,000 x 4.81 m 31.68 198,000 0.2 PS 198,000 x m* 800 x 0.2 Samoa LL 5,156 5,156 x 1,908 x 4.92 m LL 2,000 2000 x 2,520 x 0.2 1.01 m 0.5 Solomon PS, P&L, LL 73,328 x 945 x 0.4 27.69 m PS 16,094 P&L 16,094 x 900 x 0.2 2.90 m 1.24 m Islands 73,328 6,882 LL 1,162 6,882 x 900 x 0.2 0.93 m 1,162 x 4,000 x 0.2 Tonga LL 800 800 x 4,595 x 0.55 2.02 m LL 526 526 x 5,000 x 0.2 0.53 m Tuvalu 0 0 Troll 120 120 x 2,400 x 0.5 0.14 m Vanuatu 0 0 0 0 Total 140,330 79 million 328,870 (92.6 m) 53.5 m* Note: The economic contribution of locally based purse-seine vessels, especially fleets in the Marshall Islands and PNG, are uncertain, pending the DevFish study. VAR=value added ratio, LL=longline, PS=purse seine, P&L=pole-and-line, n/r=not reported, b/c=bycatch Source: modified from DevFish 2007. 30 Table A-2: Domestic Tuna Sector Summaries Country Active locally based Canneries and Air export packing & Local jobs on vessels Local jobs at onshore tuna vessels dedicated loining value-adding facilities facilities facilities Gillett DevFish Gillett DevFish Gillett DevFish Gillett 2002 DevFish Gillett 2002 DevFish 2002 2006 2002 2006 2002 2006 2006 2006 Cook Islands 10 LL 23 LL 0 0 3 3 50 15 15 15 FSM 34 LL, 8 PS 3 PS 0 0 4 1 (inactive) 89 36 131 24 (upkeep) Fiji 96 LL, 1 P&L 60 LL 2 3 6 4 893 300+ 1496 2000+ Kiribati 2 LL, 1 PS 1 PS 0 0 2 1 39 100 (foreign vessels) 47 80 Marshall Islands 54 LL, 5 PS 40 LL, 6 PS 1 0 2 1 5 - 457 100 Nauru 1 LL - 0 0 0 1 (inactive) 5 - 10 2 Niue 100 skf 40 skf, 2 LL 0 0 0 1 5 - 0 14 Palau 71 LL, 1 PL 139 LL 0 0 2 3 1 0 11 5 PNG 11 p/bt 1 3 7 4 460 110 2707 4000 40 LL 25 LL 24 PS 43 PS Samoa 153 LL 29 LL 10 alia 0 0 4 3 674 100+ 108 <100 Solomon 8 LL - 1 1 1 - 464 60+ 422 300+ Islands 2 PS 2 PS 12 P&L 11 P&L Tonga 26 LL 15 LL 0 0 4 3 161 75 85 35 Tuvalu 20 skf 24 skf 0 0 1 1 (defunct) 59 20 36 10 Vanuatu 20 skf 30 skf 0 0 0 0 54 20+ 30 30+ Note: LL=longline, PS=purse seine, P&L=pole-and-line, skf=skiff, p/bt= pump boat Source: DevFish (2007) 31 Appendix 4: The Western and Central Pacific Fisheries Commission In the mid-1990s there was a growing awareness migratory fish stocks in the western and central of the need for a tuna management agency that Pacific Ocean in accordance with the 1982 would cover an area larger than that United Nations Convention on the Law of the encompassed by Pacific Island countries, and Sea and the 1995 UN Fish Stocks Agreement. which would include countries that have vessels For this purpose, the Convention establishes a that fish in the area, such as Japan and the USA. Commission for the Conservation and After four years of complex negotiations Management of Highly Migratory Fish Stocks in between the coastal States of the western and the Western and Central Pacific Ocean, now central Pacific, and States fishing in the region, known as the Western and Central Pacific the Convention on the Conservation and Fisheries Commission. The Convention entered Management of Highly Migratory Fish Stocks in into force on 19 June 2004. The Commission, the Western and Central Pacific Ocean was which has its headquarters in Pohnpei, Federated opened for signature in September 2000. The States of Micronesia, has been operational for objective of the Convention is to ensure, through almost three years and three full meetings of the effective management, the long-term Commission have been held. conservation and sustainable use of highly 32 Appendix 5: The World Bank in Pacific Island Fisheries Past Activity · In 2005, Gert Van Santen produced the A non-exhaustive list of World Bank activity in paper "Tuna Industry Indicators", which the last 10 years in the region's fisheries sector proposed a simple annual system for includes1: monitoring key parameters of the tuna fishery, and its impact on FFA · In July 1995, a World Bank fisheries members. team visited the Federated States of Micronesia to "improve institutional A Perspective on the Comparative framework for fisheries development Advantages of the World Bank and identification of constraints What can the Bank can do with regards to affecting public investments in the Pacific Island fisheries that regional fisheries sector". organizations (e.g. SPC, FFA) and others · As part of the World Bank's 1995 (AusAID, ADB, and FAO) are unwilling or Regional Economic Report, there was a unable to do? Based on experience in the region specialized fisheries study that produced during the past decade, the comparative the report "Pacific Island Economies: advantages of the World Bank in Pacific Island Sustainable Development of Fisheries". fisheries appear to be: · In 1996/1997, trust funds from Iceland were used to carry out a study on the · Support the process of sector industry, trade and marketing of Pacific restructuring being forced upon the Island trochus. sector through rising energy costs, and · In 1998/1999, there was a study on changing patterns of demand for tuna coastal resource management in the products. Pacific Islands, which involved a · Regional organizations are, to some detailed examination of successes and degree, limited to responding to a failures in coastal resource management specific request, or at least carrying out at 31 sites in 5 Pacific Island countries. work that has been approved by their This resulted in several publications, governing bodies. This system may have including "Voices from the Village". served them well, but has its limits with · Volume III of the 2000 Regional respect to being proactive and exploring Economic Report was titled, "Managing subjects where benefits are not readily Use of the Oceans". apparent. · In 2001, a study on the "Contribution of · The Bank's contacts extend beyond the Fisheries to the Economies of Pacific fisheries sector, and avoid the problem Island Countries" was jointly funded by that individuals within the sector may ADB and the World Bank. not be receptive to criticism and · In 2000, Gert Van Santen and a former recommendations. Few decision makers FFA director produced "Working Apart saw ADB's review of Fiji's fisheries Together", an analysis of selected sector. benefits and costs of a common · The Bank can handle subjects that are approach to managing tuna resources in "too hot to handle" by regional the exclusive economic zones of Pacific organizations. Neither SPC nor FFA Island countries. could address the very large and growing subject of fisheries corruption. · The Bank's economic expertise is 1This does not include any of the large number of undisputed and highly diverse, and Global Environment Facility (GEF) projects in the could support the strengthening of region. 33 economic sector analysis in the region. cannot be overly critical of their donors FFA no longer has a section dedicated to and their favored policies. For example, economics and SPC has no fisheries · SPC would have difficulty drafting a economists. report critical of aquaculture · Some of the best staff from FFA and development approaches in the region. SPC have worked most, if not all, of · ADB has some of the above advantages. their professional lives in Pacific Islands Policy changes at ADB have occurred, fisheries, with limited exposure to other and the organization is no longer regions. The Bank can bring in involved in the fisheries sector in the experience from other areas of the Pacific Island region, except perhaps world, where some regionally important where there is a fisheries component in a issues may have been studied, analyzed, large integrated development loan. and resolved. · To some degree, both SPC and FFA 34 Appendix 6: Some Especially Relevant Current Projects Development of Tuna Fisheries in the Pacific economic studies and analyses on the impact of ACP countries (DevFish) different domestic and locally based fisheries, engaging external resources where internal This is a regional project with two staff sources are not available. Reports produced by members based in Honiara, Solomon Islands, DevFish to date are: and 1 staff member in Noumea, New Caledonia. Project duration is 48 months and has a value of · Longline Economics Benefits Brochure, 3,000,000. Key stakeholders are Pacific 2007; Islanders involved in tuna fishing, processing · A Business Manual on Value Added and marketing, or businesses servicing those Products From Tuna and Tuna By-Catch, industries; or who have the potential to become 2007; involved. DevFish is intended to contribute to · Priority Issues For The Tuna Industry In the establishment of a concerted policy and Melanesia, 200; economic environment conducive to the further · An Assessment of the Economic Benefits Of development of Pacific ACP owned fishing and Tuna Purse Seine Fishing and Onshore processing operations, and to an increased Processing of Catches, 2007; contribution of foreign fleets to the economic · An Assessment of Development Options in development of these countries. These are to be the Longline Fishery, 2006; obtained through: · An Assessment of Opportunities For Increasing Utilization And Value Adding · Improved information for policy making From Shark Bycatch in Tuna Longline available and being used; Fisheries, 2007; and · New and improved strategies for fisheries · FFA Tuna Trade Guidebook: Summary, development identified; 2006. · Opportunities for participation of the Pacific ACP private sector in tuna fisheries Global Environment Facility (GEF) Islands improved; Offshore Fisheries Management Project · Conditions for regional and international trade in tuna products and investment in The objective of GEF's project is to assist tuna production improved; and Pacific small island developing states: (a) · National policies and institutional participate in the initial operations of the arrangements for private sector tuna fishery Commission formed to implement the WCPF development improved and coordinated. Convention; and (b) reform, restructure and strengthen their national fisheries laws, policies, The project is now at the half-way mark in its institutions and programmes to take advantage four-year duration. All 14 Pacific ACP states of the opportunities and meet the responsibilities have been visited at least once, while the two associated with the WCPF Convention. The subregional tuna industry meetings for the project began in November 2005 and will Melanesian and Micronesian countries were continue for five years. The project has two completed in September and November 2006, primary goals: respectively. The required baseline information has been collected and provided in all the · The global environmental goal is to achieve relevant trip reports undertaken by project staff, environmental benefits by enhanced while outcomes of the subregional tuna industry conservation and management of meetings are provided as annexes to its annual transboundary oceanic fishery resources in report. The project has already begun some the Pacific Islands region, and the protection major support to fishing associations and major of biodiversity of the "western tropical tuna industries, while carrying out regional 35 · Pacific warm pool large marine ecosystem"; protection of marine biodiversity; and and · The Coordination, Participation and · The broad development goal is to assist Information Services Component, is PICs in improving the contribution to their aimed at effective project management, sustainable development from improved complemented by mechanisms to increase management of transboundary oceanic participation and raise awareness of the fishery resources, from the conservation of conservation and management of oceanic oceanic marine biodiversity generally. resources and the oceanic environment. The project design has involved a substantial The project's three components include: consultative process, which has been supported throughout the region. The project · The Scientific Assessment and Monitoring seeks to (a) apply a regional approach that Enhancement Component, is aimed at recognizes national needs; (b) strike a providing improved scientific information balance between technical and capacity- and knowledge on oceanic transboundary building outputs by twinning technical and fish stocks and related ecosystem aspects of capacity building activities in every area; the "western tropical Pacific warm pool and (c) open participation in all project large marine ecosystem", and at activities to governmental and non- strengthening the national capacities of governmental stakeholders. The structure for Pacific SIDS in these areas. This work will project implementation and execution builds include a particular focus on the ecology of on a record of successful collaboration seamounts in relation to pelagic fisheries, between the United Nations Development and the fishing impacts upon them; Programme, regional organizations, and · The Law, Policy and Institutional Pacific small island developing states, in Reform, Realignment and Strengthening past activities in oceanic environmental Component, is aimed at assisting PICs as management and conservation, strengthened they participate in the earliest stages of the by planned new partnerships with the work of the new Western and Central International Union for Conservation of Pacific Fisheries Commission, and at the Nature, a regional environmental non- same time reform, realign and strengthen governmental organization, (NGO) and a their national laws, policies, institutions and regional industrial NGO. programs relating to management of transboundary oceanic fisheries and the 36 Appendix 7: Some Key Reports and Findings on Pacific Tuna Fisheries and their Benefits The Pacific Islands Forum Fisheries Agency · Conducting a cetacean study in (FFA) carries out a large number of studies each consultation with USP and a research year. However, a list of recent reports is not student; available in the public domain. In the 10-year · Securing a consultant and resource period from 1990­1999, more than 1,000 person for the fisheries statistics meeting technical reports were produced by FFA staff · Conducting a regional longline access and consultants. Other agencies have also study; reported on PIC tuna fisheries: SPC, FAO, · Processing a strategy for the Parties to AusAID, Pacific Islands Forum Secretariat, the Nauru Agreement; and Australian National University, Asian · Providing regional laboratory services. Development Bank, the University of the South Organizing attendance of participants at Pacific, and others. · the following regional meetings: i. Statisticians workshop; It should be noted that some of the most ii. Vessel operators and crewing important papers may not be in the public agencies; and domain. The list of reports given below is not iii. EU participants at Pacific Regional intended to be exhaustive, but rather consists of Tuna Conferences. those documents that are readily available and In-country project to include the which are relevant to the issue of increasing · following: benefits from the region's tuna resources. i. Study of biofuel in PNG; ii. Small-scale tuna supply for Solomon DevFish (2007). Development of tuna fisheries Islands; in the Pacific ACP countries (DevFish) Project iii. Support to competent authority in Second Year Annual Report July 2007. SPC and Niue; FFA. iv. Support to tuna fishing associations within Pacific ACPs; The 2007/2008 schedule of activities includes v. Analysis of Nauru Fisheries the following: Corporation; and · Printing and circulation of the report, vi. Others as may be identified during "Regional Contribution of Tuna to the year. GPD" -- base year 2004; Other possible studies that would · Publication and distribution of · require engaging consultants include: brochures on the longline fishery, and i. Economic implications of the purse seine fishery and associated management options; onshore activities; ii. Development plan preparation; and · Publication of studies on bycatch iii. Trade issues. processing and utilization, focusing on sharks; Williams and Reid (2007) provide an overview · Publication of SPC brochure on the of tuna fisheries in the western and central implications of the Torremelinos Pacific Ocean in 2006, including the economic Protocol; conditions. · Pursuing the completion of a study on labor mobility with the Pacific Regional · Annual total catches of the four main Economic Integration Programme; tuna species (skipjack, yellowfin, · Completing gender studies of the tuna bigeye, and albacore) in the Western and industry in PICs; Central Pacific Fisheries Commission · Completing studies on sports fishing and area increased steadily during the 1980s small-scale troll fisheries; as the purse-seine fleet expanded and 37 remained relatively stable during most other stakeholders and experts to discuss of the 1990s until the sharp increase in various ways of licensing DWFN catch during 1998. Over the past five vessels, including improving the years, there has been an increasing trend existing access fees-based arrangements in total tuna catch, primarily due to and alternatives, such as appropriate increases in purse-seine fishery catches; rights-based/licensing/chartering · The estimated delivered value of the arrangements; purse-seine tuna catch in the WCPFC · PIC government officials, with industry area for 2006 is US$ 1,583 million, the representatives, review the delivery of highest level since at least 1995. This government services with industry represents an increase of US$ 82 million representatives, to highlight bottlenecks or 5% on the estimated delivered value and ways of streamlining bureaucratic of the catch in 2005. This increase was processes to increase industry efficiency driven by a US$ 89 million (8%) and thus profitability; increase in delivered value of the · Review successes and failures in tuna skipjack catch; and management and development planning · The estimated delivered value of the processes to date, and base future efforts longline tuna catch in the WCPFC area on lessons learned. Develop tuna for 2006 is US$ 1,112 million. This management plans so that they are represents a marginal increase of US$ 5 "owned" by Pacific Island nationals, and on the estimated value of the catch in have agreed upon, achievable goals and 2005. timelines. Plans should have legislative force, rather than being "flexible" Barclay and Cartwright (2006) specify 10 enough to be ignored. Progress needs to strategies for working towards the goal of be assessed on a regular basis, and goals capturing more wealth domestically from tuna and strategies revised to ensure resources in a sustainable and socially equitable alignment with national and regional manner. policies, as well as tuna fisheries and market dynamics; · Place greater emphasis on predicting · Appoint a professional regional economic outcomes -- particularly representative (possibly part time) to across fisheries, gear types and WCPFC represent the interests of PIC tuna members -- when designing and industries, working closely with FFA. determining management measures, The representative should be adequately including levels of fishing effort by funded to travel and liaise to improve domestic and foreign fleets; consultation and inclusion. In particular, · Follow up the 2002 FFA Rights-Based the representative should attend regional Workshop, possibly through a series of meetings and set up information in-country seminars, to increase networks with industry players; awareness among domestic policy · Bring industry, environmental and makers and fisheries managers of such social/community NGOs into approaches; consultative decision-making processes, · Base tuna management and as envisaged in Tuna Management development on the principles of Plans; Ecologically Sustainable Development · Sponsoring agencies to make (ESD) -- balancing economic, consultants' reports publicly available as environmental and social goals and a general rule. FFA or SPC to develop outcomes; and manage a publicly accessible · Hold an access fee summit (hosted by bibliography database of publications FFA), including PIC fisheries officials, and reports with relevance to tuna in the 38 region; government action. For a few · Build capacity in PIC fisheries companies, a conveniently-timed departments in the following fields: disaster provided the catalyst for sale, or fisheries management (including simply liquidation; working knowledge of stock · Another important lesson is that, for assessments); economics; business tuna purse seining, having easy access to management; and public policy. Where resources is not a guarantee of success. capacity gaps exist, consider recruiting In previous decades, many PICs suitably qualified and motivated staff believed that by being close to the tuna from other government departments and fishing grounds, they had an inherent externally. advantage over other countries whose vessels were based at considerable Gillett (2006) reviews the history of industrial distances from the fishing activity, or fisheries development in the region. In over a even outside the region. Many countries half century of fisheries development predicated learned that this was not the case; and on the tuna resources of Pacific Islands, there · Perhaps the most important lesson have been many lessons learned, especially from learned in the history of industrial those efforts that have failed. Three important fishing activity in the Pacific Islands, is ones are: that past sustainable operations have been mainly associated with tuna · Government-owned national tuna resources. Similarly, most industrial- fishing companies -- which have scale opportunities for the foreseeable operated in Fiji (Ika Corporation), future are likely to be related to tuna. Tuvalu (NAFICOT), Kiribati (Te Mautari), Tonga (Sea Star), and the Philipson (2006) reports on a study whose Federated States of Micronesia objective is to determine the benefits returned to (National Fishing Corporation and 13 the national economy from different longline other national/state fishing companies) operational models and licensing regimes so as -- are not viable. The experience of to inform policy decisions related to achieving these companies demosntrates the the national goal. following: (1) None of these national fishing companies have been profitable The different operational models in the long term. Several of the evaluated in this study showed a very investments and losses are staggering -- wide range in terms of their benefit to the the government of FSM has invested national economy, based on the evaluation over US$100 million in several criteria used. The model with the greatest companies. (2) There has been great economic impact was that which reluctance to privatize these firms. This combined a conventional longlining seems to come from an absence of local operation with full scale onshore value investors with sufficient resources, a adding. This model produced the reluctance to bring in foreigners, maximum scores for employment returns, personal agendas of government value added, and profitability, and second officials associated with the national highest for local purchases (all on a per company (director fees, perks, overseas metric tonne of raw material basis). travel), and government officials Previous emphasis on the development of wishing to avoid an embarrassing the catching sector may have occurred at accounting of large historical losses, the expense of the processing sector, which, which would become apparent in an if true, has been to the detriment of overall asset sale. (3) Bold decisions to privatize returns from the longline fishery. The key or sell were rarely made. Assets decayed element in increasing returns from the to near zero value while waiting for longline fishery is the development of 39 large-scale, commercially viable onshore New Zealand. The intraregional trade value added processing. As local investors environment is becoming similarly have been slow to respond to this complex with the development of regional opportunity, direct foreign investment agreements, such as the Pacific Islands (DFI) should be encouraged into the Countries Trade Agreement (PICTA). To processing subsector. Licensing regimes date, much of the focus in regional should be designed to achieve the goals discussions about WTO and regional trade set out for the longline fishery above, agreements has been on the implications namely, the establishment of a for agricultural trade. Fisheries issues have commercially viable and environmentally only recently started to be incorporated sustainable commercial fishery that into such discussions. This guidebook is a optimizes returns to the local economy. contribution to furthering this This may require allowing DFI in the understanding. In particular, as a reference catching sector, at least on a temporary guide to assist government officials (in basis. Building a national commercial particular, fisheries and trade officials) fisheries sector is not necessarily best and tuna industry operators to better initiated by a focus on the creation of a understand the rules and requirements of domestic catching sector. In fact, this international and regional trade report highlights the beneficial affects of agreements, and how they relate onshore processing to the national specifically to the fisheries sector. economy, and the fact that returns to the economy are not significantly directly Reid (2006) reports on the economic effected by the ownership of the assets. implications of a reduction in fishing effort levels in the region. The purpose of a study by Campling et al. (2006), commissioned by FFA, was to produce a This paper analyses the economic user-friendly guidebook on contemporary issues implications of an implicit allocation of in the Pacific's tuna trade (i.e. a reference guide bigeye harvest rights through an across the to assist government officials, particularly those board reduction in effort levels in the in fisheries, trade and foreign affairs) and tuna Western and Central Pacific Tuna Fishery, industry operators to better understand the rules a multi-species, multi-sector and multi- and requirements of international and regional jurisdictional fishery. The paper concludes trade agreements, and how they impact the that the major beneficiaries of an across- fisheries sector. the-board reduction in effort levels will be the frozen longline fleet targeting sashimi In order to trade fisheries products from grade tuna, which operate primarily on the PICs, exporters must manoeuvre a high seas while the economic costs of complicated network of tariffs, subsidies such a policy will be borne primarily by and the ever-changing global trends in the purse-seine fleet and the PICs in which production and consumption of fisheries this fleet operates. products. In particular, the international trade environment is becoming Duncan (2006) discusses the economics and increasingly important to tuna trade; politics of tuna management in the Pacific however, navigating the regulations is Islands region. difficult because of the complex and overlapping rules and institutions that The paper concludes that the persistence include World Trade Organisation (WTO) of poor policies by PICs in the rules and the rising importance of Free exploitation of their tuna resources is very Trade Agreements (FTAs), such as the disappointing. The poor policies, which Pacific's negotiations with the European defy the Law of Comparative Advantage Union and (potentially) with Australia and and the Tinbergen Principle, are wasteful 40 uses of resource rents and are ineffective requirements. in achieving any of the countries' stated A case study of one PIC indicates that objectives. Persistence with these policies expenditures by Chinese vessels and agents appears to be an outcome of the patron- amounted to US$ 4.4 million in 2004. The client politics that pervades Pacific PIC government received direct revenue of politics. Moreover, the positions taken by about 16% of the total access fees, other fees the PICs appear to generate unhelpful and taxes. The most likely means by which reactions by DWFNs, resulting in the government would increase direct corruption and free riding. It is especially revenue would be by increasing these fees disappointing that FFA has been so and taxes. In the case study, payments to the ineffectual in changing the policies private sector were found to be greater than followed by PICs. Australia's investment payments to government, with fuel being in FFA has yielded a very poor return about 59% of total expenditures. There with respect to policy improvements. appear to be few opportunities to increase What will change this predatory behavior benefits to the private sector, other than by of PIC governments that has such high increasing the number of vessels based in costs in terms of foregone improvements the country, which may provide proportional in the welfare of Pacific peoples? I increases in all or most expense categories. believe that it is only through educating the public about the benefits of following With respect to the future: transparent, market-based policies that such behavior can be changed. Ultimately, · Fiji stands out as one FFA member if the public does not demand good country that has become a focus for governance, nothing will change. Chinese tuna fishing. As one of the larger countries in the region, it has the A report by McCoy and Gillett (2005) discusses infrastructure to support fleets, a tuna longlining by China in the Pacific Islands, cannery to purchase the fish from emphasizing the considerations for increasing Chinese longliners, and air connections benefits to FFA member countries. to sashimi markets; · Possible revaluation of Chinese The report indicates that some of the currency and increased emphasis on elements of the business and regulatory profitability of state-owned enterprises environment in FFA member countries that could change some of the economic detract from the region's attractiveness from conditions under which Chinese vessels the perspective of Chinese vessel operators currently operate; and include: · China will most likely continue to try · Lack of control over, and sometimes and increase its presence in the Pacific high expenses for, offloading, packing Islands through the expansion of and shipping the catch; longline basing arrangements, and · Certain individual PIC government formal bilateral fishery agreements with policies, regulations or requirements more PICs. (e.g. ban on shark finning or the need to obtain port clearances for each fishing A study by GPA (2005) examines building the voyage); sustained competitive advantage in the PNG · Difficulty in obtaining US visas for domestic fishing industry. transit to some PICs; and · High cost of vessel monitoring systems The report reviews the cost structures of (VMS) relative to other electronics on the domestic tuna longline and prawn some vessels and sometimes harsh or fishing industries, with recommendations strict enforcement of VMS on strategic directions for future development. 41 A study by Van Santen (2005) is primarily assert sufficient influence to affect concerned with proposals for a simple annual outcomes in the world tuna market. And system to monitor key parameters of the tuna although sector management practices fishery and its impact on FFA members. The have failed to produce long-awaited report notes the difficulty of conducting an outcomes they persist, seemingly economic analysis of the performance of the infallible and non-accountable. The paper fishing sectors at the national and regional level, urges consideration of initiatives that and states that the reasons for this have build value in the fishery. Under current considerable relevance to fishery development in management arrangements the emphasis the region: is on access fees, which represent a production cost for fishers. Attempts to · There are several reasons for the current make fishers pay more without improving lack of permanent, comprehensive their productivity, add to their costs, economic monitoring of the thereby limiting their capacity and performance of fishing sectors at the willingness to pay. Coastal states are right national and regional level. The simple to seek access fees but regional strategies answer is that this kind of economic have neglected the next, and potentially analysis usually requires data that are much more helpful, phase of nurturing the currently not regularly collected in the growth of economic rent. Access fees and region, or are perceived as politically economic rent are not mutually exclusive. sensitive, and as such, are not made To improve economic benefits from the public; sector there must be the prospect of value · A more fundamental reason is that and profit, which entails amending current Pacific tuna fisheries are probably some strategies. In essence this entails ensuring of the most complex fisheries in the that those generating economic activity world. Industrial fishing fleets of five have the opportunity to work within an major and several smaller DWFNs as institutionally and commercially well as local vessels, exploit four major conducive framework. They would then tuna stocks that migrate among the be expected to share a proportion of the EEZs of 17 FFA members and other benefits with those coastal states that oceanic areas, and use at least four contributed to making such benefits different technologies; and possible. The paper argues for the tailored · Pacific tuna fisheries are also part of a application of conservative and successful complex process in which DWFNs aim fisheries management and commercial to serve their regional political interests. principles. Elsewhere and in diverse This process has generally not been the fisheries such practices have restored subject of publicly accessible studies. value and economic benefits. It urges that Nevertheless, understanding this regional fishery management political process is at least as important arrangements and domestic policies as economic and biological studies when converge and complement one other so as evaluating the current status and to enable the production of economic rent. structure of the fishery, and its actual In essence the solution to the problems impact on PIC economies. confronting coastal states effectively lies in their hands. At present, outcomes, The paper by Tiller (2004) is controversial and frustrating though they may be, are was not well received at SPC and (especially) largely preordained by strategies that FFA. sought access fees and neglected economic rents. These strategies, which The paper argues that while the fishery is have been likened to plundering the significant and coastal states numerous, caravan, have existed in various forms for the two are unlikely, at least initially, to 15 years or more and it is timely to 42 critically and dispassionately re-examine · It is well known that fish and fishing are them. There is no institutional reason why tremendously important to the people of change could not occur. If there is a the Pacific Islands. Much of the reluctance to change it is more because nutrition, welfare, culture, recreation, options have rarely been considered in the government revenue, and employment context of both fisheries management and are based on the region's living marine economic development. In fact the two resources. What is less appreciated is issues are inseparable. that, not only is tuna the most important of the fisheries in the region, it produces Gillett (2003) discusses a number of issues about 10 times the amount of fish as all relevant to domestic tuna industry development of the other fisheries of the region in the region: Who is successful in the tuna combined. In terms of value, tuna industry, foreign investment, tuna management fisheries are worth over seven times that plans, commercial involvement of governments of all other Pacific Island fisheries in the tuna industry, small-scale tuna industry combined; development, applicability of Samoa alia fishing · The Pacific Islands region is presently and economics of small-scale fisheries, credit, the most important tuna fishing area of air freight, dissemination of reports and other the world. About one-third of all tuna in aspects of fisheries information, fisheries the world comes from the Pacific associations, rights-based management, taxation, Islands, and the region's tuna fisheries fuel, the FSM arrangement, and other dwarf those of the other three major tuna observations relevant to future development fishing areas both in volume and value; assistance. The report indicates that several and constraints cited by tuna industry stakeholders · In the future Pacific Island climate of are amenable to mitigation: continued economic stagnation, very high population growth, severe · Stability of policies affecting the tuna economic shocks, and massive industry; unemployment, it is inevitable that the · Credit availability; presently underexploited tuna resources · Fuel cost; of the region will assume an importance · Air freight availability; much greater than at present. Quite · Fisheries taxation difficulties; simply, in most countries there are few, · Excessive government administrative if any, alternatives to tuna. charges and administrative bottlenecks; Bertignac et al. (2001) study focuses on · Low level of entrepreneurial maximizing resource rent from the western and development; central Pacific tuna fisheries. · Low level of fisheries skill development; Rent generated by the tuna fisheries occurring in · Poor government and/ir industry the waters of PICs is estimated for various levels dialogue; and combinations of purse-seine, pole-and-line, · Low attractiveness to investors frozen tuna longline, and fresh tuna longline (foreign and local); fishing effort, using a multi-species, multi-fleet · Inefficient harbor management; and bioeconomic model. The underlying population · model integrates available information on the Lack of preparation for HACCP population dynamics of skipjack, yellowfin, requirements. bigeye, and southern albacore tunas in the Pacific Ocean. The economic model utilizes the Gillett et al. (2001) has as its objective to stress most recent data on fishing effort costs for the the economic importance of tuna to the region. purse seine, pole-and-line, and longline fleets operating in the western and central Pacific 43 Ocean, along with recent estimates of prices by benefits and improving the environment species, method of capture and market, and for investment in these sectors, if they estimates of demand elasticity. The results of the could be better informed of the range of model indicate that fishery rent could be options available to them and the increased substantially above the current level implications to investors arising from the by decreasing the size of all fleets, with the application of each. When would it be in possible exception of the tuna longline fleet. The their interest to choose policies relying on results also suggest that PICs could benefit indirect methods rather than seeking significantly by changing the level and structure returns from direct access charges? of access fees levied as a percentage of total Several possibilities come to mind. If catch revenue governments did not have a good system of spending and distributing the revenue Van Santen and Muller (2000) present the case raised, that might be one reason for going for a common approach to the management of to indirect methods. Another might be that tuna resources in PIC EEZs. monitoring and control might be better facilitated by requiring fishers come to This report attempts to capture some of port. Or it could be the case that there are this complexity and focuses on economic other resources, such as port facilities, for aspects and political linkages of the access which a rent might be charged. Indirect agreements PICs have negotiated with charges and policies that mandate actions DWFNs. The paper reviews the potential that operators would not normally do, effects of the draft Convention, its raise operating costs. This makes financial implications, and its impact on investment less attractive for foreign and the ability of PICs to obtain maximum domestic investors alike. It also means benefits from the tuna resource in the that the capacity of operators to pay future. The report does not attempt to give access charges is reduced, thereby ready, optimal solutions. This would lowering government revenues. Whether require considerable additional analysis such policies reduce total revenue and consensus building. Instead, it tries to depends on the value of the mandated predict the impact of simple "approaches" activities. Policies that might appear to be to addressing the issues. Its key message improving economic well-being might, is that PICs should carefully consider the when the opportunity cost of the reduction risks of non-cooperation, and the in government revenue is taken into advantages of cooperation when account, actually reduce the welfare of the reviewing the draft Convention and when nation as a whole. Foreign investment in developing strategies for future tuna fisheries and other natural resource access agreements and negotiations. sectors in the Pacific is likely to provide a source of capital and technological "know The report by FIAS (2000) is about capturing how" for many years to come. While it economic benefits from tuna fisheries. makes sense for PICs to gather in the returns due to them from utilisation of the Decisions taken by PICs in recent years fishery, too aggressive collection of rent would suggest that, in many instances will discourage investment. It is also the when attempting to apply mechanisms to case that some policies, such as export achieve an appropriate balance, taxes levied on unprocessed tuna, governments may have focused largely on encourage investment in processing by the more obvious benefits to government effectively subsidising key inputs to local and less so on the ramifications of use of processing activity. Other, broader issues those mechanisms for investment. Thus, also stand to influence the choice of it could be beneficial to governments, policy instrument and size of benefit. The both in terms of securing greater national capacity of PICs to manage their fishery 44 resources is one such issue. The "capacity future investment and this calls for to manage" the resource may be just as commercial, private sector led investment. important as the fishery resource itself in Two themes or issues were common to terms of the ability for PICs to appropriate the analysis of constraints: (1) The benefits from fishery utilization. Another excessive and direct involvement of issue is the relationship between PICs and government in domestic industry to the DWFNs. The prospect of profits attracts detriment of sustainable, locally based investors to a particular location; industrialization, and (2) the protective however, experience has also shown that nature of domestic economies, resources, governments can do a lot to encourage and business interests with economies foreign investment. oriented to serving government rather than government serving wealth-creating Pollard (1995) reports on a large FFA/ADB locally based industry. The study project to identify the key issues affecting the concluded that, if the countries of the development of locally based tuna industries in region want to establish a viable, PICs. The study was intended to develop options sustainable, locally based tuna industry for encouraging the development of sustainable then their joint experiences to date dictate tuna enterprises beneficial to the local that this should be led by private sector economies of FFA member countries. investment. A fundamental reordering of the complementary roles and operations In-country reports were prepared by three of government and private sector is teams of consultants for nine FFA required, and the region's economies need countries: Cook Islands, FSM, Fiji, to be restructured in support of Kiribati, Marshall Islands, Palau, PNG, investment. Given the nature of the Solomon Islands, and Tonga. Later, a industry and the status of the region's regional report drew together common domestic private sectors, initial direct themes identified in the individual country foreign investment is essential. Previous reports. The results of the work, as given experience suggests that the development in "Tuna Industry Development Study ­ of the industry should be gradual and Regional Report", indicated that a wide phased, direct foreign investment could be range of constraints deter investment and employed to initiate this development, but locally based industrialization. The past experiences of joint ventures can be particular nature of the tuna industry improved upon by more careful planning. provides the perspective that must guide 45 Appendix 8: The US Tuna Treaty In June 1988, the Treaty on Fisheries between fees to each, the cost of a license under the the governments of certain Pacific Island states Treaty can be seen as a bargain. From the fleet's and the Government of the United States of operational standpoint, the ability to seek tuna America (the Tuna Treaty) came into force. This schools over a wide geographic area is a key multi-lateral agreement provides U.S. purse requirement in purse-seine fishing. The access seiners with nearly free roaming access to most guaranteed under the Treaty enables vessels to of the waters of the 16 Pacific Island states that move freely (with the exception of some internal are party to the Treaty. The Treaty area archipelagic waters and closed zones) within encompasses the limits of the fishery, from jurisdictions in order to adjust to changes in Palau, eastward to the Line Islands of Kiribati, resource abundance and availability. and the Cook Islands. This provides the U.S. Administratively, the Treaty facilitates the fleet with a considerable advantage over fleets of fleet's activities rather than hinders them. For other countries that remain geographically example, once they are licensed, vessels must limited by domestic policies and/or bilateral contend with only one access administering access agreements. authority and abide by one set of rules that governs access in all Pacific Island jurisdictions. The U.S. purse-seine fleet has a very strong ally While restrictions and requirements are placed in the U.S. government, which has a vested on the fleet, most of these are contained in the interest in maintaining the Treaty and good "minimum terms and conditions of access" relations with Pacific Island countries that it adopted by Pacific Island countries, and must be engenders. Not only has the Treaty improved adhered to in any licensing regime. The long- relations between the U.S. and Pacific Island term nature of the Treaty reduces transaction countries, but it provides other benefits to the costs for the fleet, and assures access to a high U.S. government from several perspectives. It degree. enables the government to (a) obtain very good fishery management information from the fleet In exchange for the U.S. fleet having fishing through access to fishery data and (b) further access to the waters of 16 countries, Pacific cooperation with the Pacific Island countries and Island countries receive an annual payment to all the FFA through the cooperative operation of an countries of US$21 million ($3 million from observer program. It also facilitates the vessel owners, $18 million from the U.S. government's implementation of flag state Government). Pacific Island countries share control. Indirectly, the existence of a U.S. 15% of the total equally, with the remainder presence in the fishery enhances the U.S. allocated according to the location of the catch. position when it interacts with other resource As the U.S. purse-seine fleet shrinks, Treaty users (including Asian countries) in international payments -- expressed as a percentage of the tuna fishery discussions. The existence of the value of the catch -- is rising. At one point in fleet can provide a broader basis on which to the early 1990s, there were 50 vessels in the participate in such discussions than only the treaty. During the annual license period, ending geographic position of its territories or the in mid-2007, there were only 11 vessels in the existence of its market. fleet. Those vessels landed about 70,000 metric tonnes of tuna worth about US$70 million2. The The main advantages of the Treaty perceived by access fees paid represented about 30% of the many in the industry are the reduced cost of value of the catch. access paid by vessel owners, the "industry contribution", and the free ranging access to 2 multiple zones. Compared with Asian fleets, In March 2005, Pacific Island parties decided at which must purchase fishing licenses separately their 17th annual consultation with the US in Tonga to apply a rebate scheme, whereby, a fixed license fee for several jurisdictions and are required to pay of US$133,000 per vessel is agreed. 46 From the beginning of the Treaty to mid-2006, U.S. Government officials stress that the the accrued financial benefits to Pacific Island financial transfer represents more that just parties to the Treaty is just over US$300 million. payments for access. Source: Gillett et al. (2002); Ray Clarke (US National Marine Fisheries Service, pers. comm., October 2007) 47 Appendix 9: Fisheries Statistics in the Region The situation with respect to fisheries statistics is fisheries agencies give low priority to estimating very different between inshore/coastal fisheries the total amount of domestic catches. In general, and offshore fisheries. Information from SPC's the smaller the scale of fishing, the less is known website, Gillett (2002b) and recent observations about production levels, with quantitative are given below. information being especially scarce for subsistence fisheries in most countries. Samoa, Overall, the offshore statistical systems are in where a survey of village fisheries was relatively good condition, both at a national and completed a few years ago, is a notable regional level. As a component to SPC's exception. Short-term support to enhance fisheries services to the region, the Oceanic fisheries statistical systems has been provided by Fisheries Programme (OFP) has a Statistics and FAO, SPC, and the National Marine Fisheries Monitoring Section. The activities of that section Service (NMFS), the Japanese International currently include: Cooperation Agency and other agencies. A major lesson from almost 25 years of support · compiling estimates of annual catches of towards establishing and enhancing national target tuna and billfish species; fisheries statistical systems is that, once external · estimating annual catches of non-target support is withdrawn, systems usually species; degenerate and eventually become · compiling operational (logsheet) catch dysfunctional. Despite the importance of such and effort data; data, the reality is that (a) in the prioritization of · data processing on behalf of member scarce government funding, the ongoing routine countries and territories; collection of fisheries data has not been · providing technical support to port accorded the appropriate priority, and (b) it is sampling programs and observer quite unlikely that any of donors active in the programs in member countries and region's fisheries sector would be willing to territories; fund such systems over the long term. Another · training in fisheries statistics and issue is that most countries in the region attach database management; great important to their subsistence and small- · developing data collection forms; scale commercial fisheries. However, it is these · publishing the Tuna Bulletin and the fisheries that present the greatest difficulties for Tuna Fishery Yearbook; the collection of production information. In · addition, many fisheries specialists have statistical analyses; and questioned the cost-effectiveness and · providing statistical support to the practicalities of regular and extensive data Scientific Committee of the Western and collection from small-scale fisheries in the Central Pacific Fisheries Commission. Pacific Islands. Several of these activities are conducted by OFP In summary, offshore fisheries catch statistics in under contract to WCPFC. the region are quite good, largely because of SPC's involvement. Inshore fisheries statistics The situation with coastal fisheries statistics is are quite poor for numerous reasons. considerably different. Typically, government 48 Appendix 10: Communiqué of the 38th Pacific Islands Forum The 38th Pacific Islands Forum meeting was held Fisheries Resources: "OUR FISH, OUR in Tonga from 16­17 October 2007, and was FUTURE" attended by heads of state and the governments of the Cook Islands, Federated States of We, the Leaders of the Pacific Islands Forum, Micronesia, Fiji, Nauru, New Zealand, Niue, meeting at Vava'u in the Kingdom of Tonga: Papua New Guinea, Samoa, Tonga, Tuvalu and Vanuatu, and representatives of Australia, RECOGNISING that our regional fisheries Kiribati, Palau, the Republic of the Marshall resources remain a key driver for sustainable Islands and Solomon Islands. New Caledonia economic growth in the region, especially for and French Polynesia also attended the formal small island states, and that they must as a session as Associate Members, and Timor-Leste, consequence be supported by responsible and Tokelau, and Wallis and Futuna as observers. effective stewardship; The Forum Retreat was held at Vava'u, Tonga. A representative of Venezuela also attended as a RECALLING the commitment by Leaders under special guest of the Government of Tonga. the Pacific Plan to maximise sustainable returns from fisheries by developing an ecosystem The communiqué issued from the meeting gave based fisheries management planning fisheries special prominence. Below is the framework; encouraging effective fisheries section on fisheries from the communiqué, and a development, including value-adding special annex dedicated to fisheries. Areas of activities; and collaboration to ensure legislation special interest to this report are bolded. and access frameworks are harmonised; Fisheries ALSO RECOGNISING the aspirations of Despite the considerable work undertaken to Pacific Island countries to strengthen their date to strengthen the region's management of engagement in sustainable fisheries and to its highly migratory fish stocks, [Forum] maximise the flow on benefits from both Leaders believe urgent supplementary work is domestic fisheries and foreign fishing operations needed in specific areas. Fisheries represent one in the region; of the region's strongest drivers for sustainable economic growth. As a source of both export RECALLING in this context our 2004 call for revenue and food security, efforts must continue closer Ministerial oversight of Pacific fisheries to maintain regional solidarity among Forum issues; Members in their management of these fish stocks, particularly tuna. Greater effort to foster NOTING with appreciation and deep concern a long-term strategic approach to ensuring these the report on the current state of Pacific fisheries resources are effectively managed will provide provided to us by the current Chair of the Forum enduring benefits for all Forum Member Fisheries Committee, at the request of the countries. This approach must include the Committee's 64th Meeting, held at Ministerial upholding and strengthening of existing regional level; arrangements, agreements and conservation measures that protect this essential resource in COGNISANT of the significant economic the face of threatened stock levels and opportunities which the regional fisheries intensifying global interest, particularly from resource offers to all our members, and of the distant water fishing nations. Leaders adopted a comparatively low returns on the resource Declaration on Pacific Fisheries Resources being achieved by countries in the region; (attached as Annex B). SEIZED by the scientific advice that over- Annex B: The Vava'u Declaration On Pacific fishing of two key regional tuna species -- 49 bigeye and yellowfin tuna -- now places stock solemnly COMMIT ourselves and our levels in jeopardy; governments to the conservation and sustainable management of highly migratory CONSCIOUS therefore of the imperative need tuna resources by: for us to take immediate and decisive collective · FULLY IMPLEMENTING without delay action to ensure that, within the next three to the conservation and management measures five years, we secure our peoples' future developed and endorsed by the Western and livelihoods, regional food security, and Central Pacific Fisheries Commission environmental sustainability of our seas and (WCPFC); their ecosystems; SEEKING THE URGENT ADOPTION OF ADDITIONAL MEASURES by the HEREBY reaffirm the importance of fisheries to WCPFC to address over-fishing of bigeye the economies of all Pacific Forum countries, and yellowfin, including a reduction in and commit ourselves to: longline catches and addressing purse seine fishing, and specific steps to reduce the · PROMOTING DOMESTIC FISHERIES, in catch of juvenile bigeye and yellowfin; particular the development of national · RECOGNISING THE ASPIRATIONS OF tuna industries, in the context of a phased SMALL ISLANDS DEVELOPING introduction of rights-based management STATES to develop their domestic fisheries arrangements supported by an appropriate and CALLING ON DEVELOPED management and regulatory framework; MEMBER COUNTRIES of the · DEVELOPMENT AND MANAGEMENT Commission to implement measures to OF COASTAL/INSHORE FISHERIES and support such endeavours; aquaculture to support food security, · DEVELOPING AND IMPLEMENTING, sustainable livelihoods and economic with the assistance of the Forum Fisheries growth for current and future generations of Agency, a comprehensive regional Pacific people; Monitoring, Control and Surveillance · MAINTAINING REGIONAL (MCS) strategy; SOLIDARITY among Forum member · INVESTIGATING AND TAKING countries in managing the region's tuna APPROPRIATE STEPS as a matter of stocks; priority to strengthen, simplify and give full · STRENGTHENING OUR SUPPORT for transparency to our national fisheries the Forum Fisheries Agency, the Secretariat governance and licensing arrangements; of the Pacific Community and other regional CONTINUING SUPPORT as appropriate fisheries bodies as they intensify their efforts for the current tuna tagging initiative of the in applying a long-term strategic approach to Secretariat of the Pacific Community, Pacific fisheries, and in tuna species in including the aspiration that it expand to particular, to ensure that these resources are cover the rest of the Pacific; and, effectively managed so as to provide · SUPPORTING AND ENDORSING efforts enduring economic, social and cultural by the Forum Fisheries Agency, supported benefits; by the Forum Secretariat, to take forward as · UPHOLDING AND STRENGTHENING a matter of urgency work to examine the the existing regional and national potential for new multilateral Pacific arrangements, agreements and conservation regional arrangements patterned on the Niue measures that protect this essential resource; Treaty Subsidiary Agreement model for and exchange of fisheries law enforcement data, · CONSISTENT with our earlier calls for the cross-vesting of enforcement powers, and sustainable utilisation of fisheries resources, use of fisheries data for other law and with our concerns regarding food enforcement activities; security for future generations, we further · CONSISTENT with our previous 50 deliberations, REAFFIRM the Declaration WCPFC; on Deep Sea Bottom Trawling adopted at · AGREE TO RAISE THESE DEEP the 2006 Nadi Forum and WELCOME the CONCERNS as a matter of urgency with subsequent UNGA Resolution 61/105 which Distant Water Fishing Nations (DWFNs) called for strong measures to regulate and and regional coastal states participating in manage deep sea bottom trawling; the Post-Forum Dialogue, and urge their · COMMIT to the protection of high seas close cooperation with our efforts; and biodiversity and the conservation and · REQUEST the Forum Fisheries Agency, the management of non-highly migratory fish Secretariat of the Pacific Community, the stocks in the Pacific Ocean; Forum Secretariat and the Western and · ENCOURAGE effective participation in the Central Pacific Fisheries Commission to negotiations to deliver a best-practice South jointly monitor progress in implementing Pacific Regional Fisheries Management these commitments, and reporting on this ­ Organisation in view of the longer-term especially progress in regional tuna strategic significance to Members and the management ­ under the Pacific Plan to possible interaction of the high seas pelagic Forum Fisheries Ministers and our next stocks with tuna resources governed by the Leaders' Meeting for further consideration. 51 Appendix 11: People Contacted · Transform Aqorau, Deputy Director-General, Pacific Islands Forum Fisheries Agency (FFA) · Len Rodwell, Manager of Economics and Monitoring Division, FFA · Andrew Wright, Executive Director, Western and Central Pacific Fisheries Commission · Tim Adams, Director, Marine Resources, Secretariat of the Pacific Community (SPC) · John Hampton, Oceanic Fisheries Programme Manager, SPC · Thomas Gloerfelt-Tarp, Head of Project Administration Unit, Asian Development Bank · Bill Aalbersberg, Professor, University of the South Pacific (USP) · Joeli Veitayaki, Associate Professor, USP · Mike Batty, DevFish Project Coordinator, FFA · Jonathan Manieva, DevFish Fisheries Development Officer, FFA · Ian Cartwright, fisheries consultant, Thalassa Consulting · Mike McCoy, fisheries consultant, Gillett, Preston and Associates · Garry Preston, fisheries consultant, Gillett, Preston and Associates · Sofia Bettencourt, Senior Natural Resources Economist, Southeast Asia and the Pacific Region · Ray Clarke, Fisheries Biologist, US National Oceanic and Atmospheric Administration (NOAA), Fisheries Service, Pacific Islands Regional Office · Roman Grynberg, Director Economic Governance, Pacific Islands Forum Secretariat 52 Sustainable Development East Asia and Pacific Region THE WORLD BANK 1818 H Street, N.W. Washington, D.C. 20433, USA Telephone: 202 473 1000 Facsimile: 202 522 1666 Website: www.worldbank/eaprural