abare - data.daff.gov.audata.daff.gov.au/brs/...torres_strait_fisheries.pdf · lindsay fairhead and...

lindsay fairhead and laura hohnen

november 2007

abare research report 07. 21

abare abar

ein

nova

tion

in e

cono

mic

s

Torres Strait Islandersimproving their economic

benefi ts from fi shing

abareconomics.com

ii

© Commonwealth of Australia 2007

This work is copyright. The Copyright Act 1968 permits fair dealing for study, research, news reporting, criticism or review. Selected passages, tables or diagrams may be reproduced for such purposes provided acknowledgment of the source is included. Major extracts or the entire document may not be reproduced by any process without the written permission of the Executive Director, ABARE.

ISSN 1037-8286ISBN 978-1-921448-05-8

Fairhead, L. and Hohnen, L. 2007, Torres Strait Islanders: Improving their Economic Benefi ts from Fishing, ABARE Research Report 07.21 Prepared for the Fisheries Resources Research Fund, Canberra, November.

Australian Bureau of Agricultural and Resource EconomicsGPO Box 1563 Canberra 2601

Telephone +61 2 6272 2000 Facsimile +61 2 6272 2001Internet abareconomics.com

ABARE is a professionally independent government economic research agency.

ABARE project 3166

iii

torres strait fi shers » abare research report 07.21

foreword

Fishing plays an important role in the lives of Torres Strait Islanders. Among other things, fi shing offers islanders an opportunity for income, thereby reducing depend-ence on the Commonwealth Development Employment Program.

However, there has been a concern that Torres Strait Islanders are receiving lower economic returns from commercial fi shing in the Torres Strait than nonislander fi shers. ABARE was commissioned by the Fisheries Resources Research Fund to undertake a survey of fi shers in the Torres Strait to examine this perception and to identify ways in which Torres Strait Islander fi shers could obtain higher economic benefi ts from commercial fi shing.

A key fi nding of ABARE’s survey is that Torres Strait Islander fi shers operate a very different enterprise compared with nonislander fi shers. It is therefore not straightfor-ward to compare the economic returns of the two fi shing operations. Allowing for this complexity, the survey revealed that, at least in the fi nfi sh fi shery, islander fi shers tend to receive lower economic benefi ts from fi shing than nonislanders for a range of reasons, of which remote location and small scale are uppermost.

Importantly for the future, the study identifi es a number of government policy initiatives and several actions that islander fi shers can take to improve the fi nancial returns from commercial fi shing to Torres Strait Islander fi shers.

Phillip GlydeExecutive Director

November 2007

iv


acknowledgments

This research relied on the contribution of many among industry, fi sheries manage-ment and research agencies, and ABARE staff.

Fishers and industry representatives volunteered their time and experience, making the survey possible and explaining the important details of fi shing in the Torres Strait.

Stan Lui of the Australian Government Department of Agriculture, Fisheries and Forestry and Jim Prescott of the Australian Fisheries Management Authority (AFMA) provided insightful feedback at all stages of the study.

AFMA provided the logbook information required to select a sample. Jim Prescott, Thim Skousen and John Garvey were particularly instrumental in this. Inoni Harris of the Queensland Department of Primary Industries and Fisheries also provided critical information.

Comments on the draft copy of the report were provided by Stan Lui of the Australian Government Department of Agriculture, Fisheries and Forestry; Jim Prescott, Ana Lara-Lopez and Annabel Jones of AFMA; Marcus Finn and Toshie Nakata of the Torres Strait Regional Authority; and by industry representatives. In addition, Bill Arthur of the Australian National University provided useful guidance.

Within ABARE, Simon Vieira and Roslyn Wood helped conduct the survey; Phil Kokic advised on data analysis; and Paul Newton, Peter Gooday, Lindsay Hogan and David Galeano provided comments on the report.

v


contents

summary 1

1 introduction 4

2 the Torres Strait economy and fi sheries 5

Torres Strait economy 5commercial fi shing in the Torres Strait 6management of Torres Strait fi sheries 12

3 comparing fi shing styles of islander and nonislander fi shers 17

scale 17zone of operation 19supply chain 20effort 21

4 comparing economic benefi ts of islander and nonislander fi shers 23

tropical rock lobster fi shery 24fi nfi sh fi shery 29

5 increasing the economic benefi ts of islander fi shers 35

government policies 35steps TIB fi shers can take 38

6 conclusion 44

appendixes A survey method and defi nitions 49

B government programs to develop the skills of indigenous Australians 54

references 60

vi


box1 hookah equipment 15

fi guresA population status – Torres Strait, 2001 5B labour force status of indigenous residents – Torres Strait, 2001 6C islander share of commercial catch – Torres Strait fi sheries 7D distribution of islander catch of tropical rock lobster

– Torres Strait 8E distribution of islander catch of fi nfi sh – Torres Strait 8F real value of the tropical rock lobster fi shery – Torres Strait 10G real value of the spanish mackerel fi shery – Torres Strait 11H real value of the reef line fi shery – Torres Strait 12I average number of fi shing platforms used in a fi shing trip

– Torres Strait 17J average number of crew on a fi shing trip – Torres Strait 18K average length of a fi shing trip – Torres Strait 18L average distance of fi shing from unloading port, by sector 19M average number of fi shing days – Torres Strait 21N use of hookah for tropical rock lobster – Torres Strait 22O average price received by fi shers for tropical rock lobster

– Torres Strait, 2004-05 27P income from each kilogram of tropical rock lobster

– Torres Strait 28Q average price received by fi shers for fi nfi sh

– Torres Strait 30R cash costs per kilogram of fi sh caught in the fi nfi sh

– Torres Strait, 2005-06 32S income from each kilogram of fi nfi sh – Torres Strait 34T businesses with book keeping skills – Torres Strait 39U businesses with a current business plan – Torres Strait 39V businesses with computer skills – Torres Strait 40W businesses with skills to maintain boat and equipment

– Torres Strait 40

vii


map1 Torres Strait Protected Zone 13

tables1 options for improving the economic benefi ts of islander fi shers

from fi shing 32 real value of commercial fi sheries in the Torres Strait 93 fi shing closures for the tropical rock lobster fi shery

– Torres Strait 154 comparison of TIB and TVH boats operating in the

Torres Strait tropical rock lobster fi shery 255 comparison of TIB and TVH boats operating in the

Torres Strait fi nfi sh fi shery 316 fuel prices in the Torres Strait and in Cairns 337 options for improving the economic benefi ts of islander fi shers

from fi shing 33

viii


1


summary

» Tropical rock lobster and fi nfi sh are the key species targeted by commercial Torres Strait Islander fi shers.

» Results from a survey undertaken by ABARE with islander and nonislander fi shers in the Torres Strait indicate that islander fi shers operate a very different enterprise from nonislander fi shers. In particular, islanders operate on a much smaller scale and undertake less processing of their catch. This leads to islanders generally receiving a lower price for their product than nonislander fi shers.

» In the lobster fi shery, islanders were performing at least as well as nonislander fi shers in profi t per kilogram of fi sh landed. In contrast, in the fi nfi sh fi shery, islanders did not perform as well as nonislanders, mainly because of their remote location and the small scale of their operations.

» While commercial fi shing cannot replace the income received by most islander fi shers from the Community Development Employment Projects (CDEP) scheme, through careful management both by governments and islander fi shers themselves, it is possible that the fi nancial returns to islander fi shers can be improved.

the island way» Islander fi shers operate a very different enterprise compared with those of

nonislander fi shers. While most nonislander fi shers employ a large primary boat equipped with accommodation, processing facilities and tenders in tow, most islander fi shers rely on a single small dinghy.

why islanders receive a lower price» The lack of processing facilities on islander boats helps to explain why

islander fi shers receive a lower price for their catch than do nonislander fi shers.

» Nonislander fi shers supply a snap frozen product to an exporter or to the domestic fi sh market. Islander fi shers on the other hand supply a wet product

2


to a processor — for example, a community freezer. More needs to be done with the wet product before it is ready for export or for domestic consumption.

» Given that islander fi shers are supplying such a different product, it is to be expected that they will receive a lower price.

impediments to islander fi shing incomes» The small scale of islander fi shers may increase their costs per unit of output.

» Whether a fi sher is catching tropical rock lobster or fi nfi sh, the catch must be processed and in the snap freezer soon after it is caught in order to be of a high quality. A nonislander fi sher can stay out for days catching fi sh because their boat is equipped with processing facilities. But an islander fi sher must return to shore almost daily to unload their catch.

» The extra travel undertaken by an islander fi sher increases fuel costs and reduces the time spent fi shing, compared with a nonislander fi sher.

» Both islander and nonislander fi shers are confronted by the problems of oper-ating in a remote region.

» On most remote islands of the Torres Strait, there is at best only one fuel outlet and one retailer of fi shing equipment. Also, there is little in the way of repair services and few options for marketing fi sh.

» Nonislander fi nfi sh fi shers get around the problems of their remote location by buying fuel and equipment in Cairns and having it freighted to where they are operating. They also freight their catch to be sold on the mainland.

» Nonislander lobster fi shers operate mainly in the Western and Central reefs of the Torres Strait and can therefore regularly buy supplies from Thursday Island and sell their catch on Thursday Island. Some also use the mothership service from the mainland.

» The small scale and inexperience of islander fi shers makes it diffi cult for them to access such freight services.

3


steps to improve the economic returns of islander fi shers» It is not a solution for islander fi shers generally to increase their scale of opera-

tion and add processing capacity to their business. The status of the fi sheries would not sustain this. Nor would many islander fi shers be able to borrow a quarter of a million dollars for a primary boat, freezers, tenders and other equipment.

» But there are many other ways in which the economic benefi ts of islander fi shers can be enhanced. Governments have a role to provide islander fi shers with the opportunity to increase their profi ts from fi shing. Fishers themselves need to develop their business skills to improve their profi ts from fi shing.

» Table 1 reports options for improving the fi shing incomes of different fi shers. Some of the options identifi ed are useful to all fi shers, even those who are content to fi sh on occasional weekends, whereas other recommendations are only relevent for more active or large scale fi shers.

table 1 options for improving the economic benefi ts of islanders from fi shing

who benefi ts? government policy actions fi sher actions

all islander fi shers 1 manage total allowable catch to 1 keep expense receipts increase stock 2 maintain equipment themselves 2 identify any impediments to competition

active islander 3 consider options for a more fl exible 3 budget and plan fi shers CDEP payment schedule 4 deliver live product 4 under an output quota option: 5 form cooperatives to buy fuel • remove limits on fi shing methods and other supplies in bulk • allow islander businesses to use 6 consider model of primary nonislander labour boat with tenders in tow

4

introduction

The marine resources of the Torres Strait are of great cultural, environmental and economic value to the people of the Torres Strait. In particular, fi shing constitutes an important way of life for traditional inhabitants of the Torres Strait, providing food, contributing to cultural occasions and affording them the opportunity to make income.

Torres Strait Islanders currently share the right to commercially fi sh Torres Strait waters with nonislander fi shers. This is the case for the Torres Strait tropical rock lobster and fi nfi sh fi sheries, where the fi nfi sh fi shery includes the spanish mackerel and reef line fi sheries.

In each of these fi sheries, there is a perception that islander fi shers benefi t less fi nancially from commercial fi shing than do nonislander fi shers. ABARE was commissioned by the Fisheries Resources Research Fund (FRRF) to examine this perception, and to identify ways to increase the economic benefi ts to commercial islander fi shers.

The scope of this project extends to assessing the economic benefi ts of fi shing that fl ow to islanders in the Torres Strait fi shery. To do this, ABARE has undertaken a survey of islander and nonislander fi shers in the Torres Strait, and consulted with industry and other stakeholders.

The economic benefi ts that fl ow to the wider Torres Strait community are not considered in this study and there is no estimate provided for what the maximum economic yield may be for the fi sheries in question. These are issues for further study.

1

5

the Torres Strait economy and fi sheries

The Torres Strait islands are located in the far north, between the Australian mainland and Papua New Guinea (see map 1 later). Because of their location, many Torres Strait Islanders engage in commercial fi shing, particularly of tropical rock lobster and fi nfi sh. However, their remote location disadvantages islanders in other ways, not least because of limited employment opportunities outside fi shing. Furthermore, biological constraints on the tropical rock lobster and fi nfi sh fi sheries limit the income potential from commercial fi shing for the region. Given that there are few other industries, a large proportion of islanders in the Torres Strait depend heavily on government employment schemes.

Torres Strait economyThe Torres Strait is a remote region with a population of 8306 persons, 72 per cent of whom are of Torres Strait Islander origin (ABS 2002) (fi gure A).

Among Torres Strait Islanders, fi shing is a signifi cant source of income. Based on data from the Australian Fisheries Management Authority (AFMA 2007), almost 15 per cent of the working age population engage in commercial fi shing. However, many islander fi shers rely on Community Develop-ment Employment Projects (CDEP) as their primary source of income and on fi shing only to supplement their CDEP income. This was true of the majority of islander fi shers surveyed by ABARE.

In the Torres Strait more gener-ally, the single largest employer is the CDEP scheme. CDEP alone

Aboriginal 2% (168)

Torres Strait Islander 72% (6000)

nonindigenous 20% (1613)

not stated 6% (525)

population status – Torres Strait, 2001fig A

2

6


employed 1018 indigenous inhabit-ants of the Torres Strait, or 29 per cent of indigenous people who were of working age in 2001 (fi gure B; ABS 2002).

The CDEP scheme is a ‘mutual obli-gation’ system whereby participants work for income that is moderately higher than alternative income support payments.

Participants in the CDEP scheme cannot accept income support payments (Altman, Gray and Levitus 2005). But participants can earn additional income from other sources of employment — for example from fi shing, up to a maximum of $864 a fortnight, which equates to $22 525 a year. If they earn more than this ceiling, participants become ineligible for CDEP wages.

Following a recent review, the Australian Government will retain the CDEP scheme in the Torres Strait and other remote communities (DEWR and Andrews 2006). CDEP is being replaced in regions with strong employment opportunities, but there is no current proposal to replace the current CDEP scheme in the Torres Strait.

commercial fi shing in the Torres StraitCommercial fi sheries in the Torres Strait include prawn, tropical rock lobster, spanish mackerel, reef line, pearl shell, barramundi, crab, trochus and sea cucumber. The main fi sheries are prawn, tropical rock lobster, spanish mackerel and reef line. In 2005-06, these Torres Strait commercial fi sheries yielded over 2200 tonnes of fi sheries products, valued at almost $29 million (Newton et al. 2007).

islander participation

Of these main fi sheries, Torres Strait Islanders do not participate in the prawn fi shery. This is partly because prawn fi shing requires extensive capital and involves a high production cost (Altman, Arthur and Bek 1994). However, many Torres Strait Islanders participate in the commercial tropical rock lobster, spanish mack-erel and reef line fi sheries (AFMA 2007).

labour force status of indigenous residents – Torres Strait, 2001fig B

employed by CDEP 29% (1018)

employed by other31% (1098)

unemployed 3% (122)

not in the labour force 37% (1329)

7


The islander community is most active in the tropical rock lobster fi shery, accounting for around 45 per cent of commercial catch in 2004-05 and 2005-06, according to ABARE esti-mates based on AFMA data (fi gure C).

Islanders accounted for a smaller proportion of total commercial catch in the fi nfi sh fi sheries. According to ABARE estimates using AFMA data, islanders caught around 20 per cent of commer-cial catch in the Torres Strait reef line fi shery in 2004-05 and 2005-06, but caught less than 5 per cent of commer-cial catch in the spanish mackerel fi shery in those same years.

Importantly, the degree of participation in commercial fi shing varies considerably within the islander community. The majority of commercial catch is caught by a minority of islander fi shers. This effectively means that there are two types of fi shers in the islander commercial fi shing sector — the active fi shers and the occasional fi shers.

In the tropical rock lobster fi shery, for example, 15 per cent of islander fi shers accounted for almost 60 per cent of islander commercial catch in both 2004-05 and 2005-06 (fi gure D). At the same time, almost a third of islander fi shers each sold less than 50 kilograms of processed weight. Others recorded their catch against another fi sher’s name, for example a parent.

Similarly in the fi nfi sh fi shery, a small number of fi shers operate on a signifi cant scale while many more are occasional fi shers. In the fi nfi sh fi shery, approximately a dozen fi shers accounted for around 70 per cent of islander commercial catch in 2004-05 and 2005-06. At the other end of the scale, there were around 50 fi shers in the same years who sold less than 100 kilograms of fi nfi sh (fi gure E).

The different approaches to fi shing within the islander fi shing sector have signifi -cant implications for management of the islander sector. For the majority of islander fi shers who are not heavily engaged in fi shing, it may be that they are content to have access to the commercial fi shery to supplement their income when required and may be unlikely to change how they operate to pursue greater

%

40

30

20

10

tropical rock lobster

coral trout

spanishmackerel

average 2004-05 to 2005-06

islander share of commercial catch – Torres Strait fisheries

fig C

8


income from fi shing. There is, however, a minority who would benefi t greatly from new opportunities to increase their fi shing incomes. Understanding the wishes of both groups of fi shers is a challenge for fi sheries management in determining the objectives for the islander sector.

Another critical distinction between commercial islander fi shers is where they live. While islander fi shers reside throughout the Torres Strait, large scale or active trop-ical rock lobster fi shers are concentrated in the western and central islands, whereas active fi nfi sh fi shers live mainly in the eastern islands (see map 1 later). Therefore, issues of remoteness are more apparent for active fi nfi sh fi shers who live in the eastern islands than for active lobster fi shers who live closer to Thursday Island.

value of commercial fi shing

All values in this section of the report are expressed in real terms (constant 2006-07 prices), which means that any change in value excludes the effect of infl a-tion. During the past decade the total value of the Torres Strait fi shery has been decreasing in real terms. However, this has refl ected a decline in the value of the prawn fi shery, and therefore has had little direct impact on Torres Strait islander fi shers.

Between 1998-99 and 2005-06, the real value of commercial fi shing in the Torres Strait declined by 41 per cent. However, almost all of this decline can be attributed to the prawn fi shery, the value of which fell by 62 per cent (table 2). In contrast,

kg

4000

3000

2000

1000

100 200 300 4001

2004-05

2005-06

processed weight

fishers ranked by catch

distribution of islander catch of tropical rock lobster – Torres Straitfig D

kg

4000

3000

2000

1000

20 40 60 801

2004-05

processed weight

2005-06

fishers ranked by catch

fig E distribution of islander catch of finfish – Torres Strait

9


the value of the tropical rock lobster fi shery, of most importance to islander fi shing incomes, increased by 38 per cent in real terms between 1998-99 and 2005-06. As a result the importance of the prawn fi shery to the total value of the Torres Strait fi shery fell from 74 per cent in 1998-99 to 48 per cent in 2005-06, while that of the tropical rock lobster fi shery increased from 19 per cent to 44 per cent.

Unlike the lobster fi shery, the real value of Torres Strait fi nfi sh has fallen over time. Between 1998-99 and 2005-06, the value of the spanish mackerel fi shery fell by 30 per cent and that of the reef line fi shery by 41 per cent. However, as these fi sheries account for a relatively small proportion of the Torres Strait fi shery, the drop in real value contributed little to the decline in the total value of commercial fi shing in the Torres Strait. In 2005-06 the spanish mackerel and reef line fi sheries accounted for 5 per cent and 3 per cent respectively of the value of the Torres Strait fi shery.

table 2 real value of commercial fi sheries in the Torres Strait in 2006-07 dollars

change in real value 1998-99 2005-06 1998-99 to 2005-06

value share value share $’000 % $‘000 % %

prawn 35 785 74 13 618 48 –62tropical rock lobster 9 155 19 12 607 44 38spanish mackerel 2 139 4 1 488 5 –30reef line 1 570 3 924 3 –41

total 48 649 100 28 637 100 –41Source: ABARE price data and AFMA (2007).

10



The tropical rock lobster (Panu-lirus ornatus) is the only species targeted in the Torres Strait tropical rock lobster fi shery. The real value of the fi shery has generally been rising over time, from $6.7 million in 1999-2000, to a high of $16.9 million in 2004-05 (fi gure F). Nonetheless the value of the fi shery has fl uctuated from year to year. In 2002-03, for example, the real value of the fi shery rose by 57 per cent as a result of increases in both catch and price. In contrast, in 2005-06, the real value of the fi shery fell by 26 per cent to $12.6 million, following a 32 per cent reduction in catch.

Commercial fi shers sell tropical rock lobster product as wet tails, frozen tails, or as live lobsters. Wet tails are tails that have been removed from the body and cleaned, but not frozen. After sale by the fi shers, lobsters are processed further as needed and marketed as either live lobsters or frozen tails. Most product is exported (DEH 2004).

The price per kilogram for live lobsters is lower than for frozen lobster tails. However, the overall price paid for a live lobster is about 1.5 times higher than the whole weight price for a frozen tail as the tail only constitutes 40 per cent of the whole lobster (Larcombe and McLoughlin 2007).

Transporting live lobsters requires boats to carry specially designed tanks. Further-more, when lobsters are moulting there is a high risk that they may die during transit or become unfi t for market (Larcombe and McLoughlin 2007). The tail cannot be salvaged if a lobster dies during transit, because of the danger of contamination. However if a lobster is looking weak, it can be tailed to provide some compensa-tion to the fi sher.

The biological status of the tropical rock lobster stock was recently assessed as fully exploited (Ye et al. 2006). AFMA and CSIRO continue to monitor the state of the stock.

15

10

5

2006-07$m

2005-06

1993-94

1996-97

1999-2000

2002-03

real value of the tropical rock lobster fishery – Torres Strait

fig F


11


spanish mackerel

Narrow barred spanish mackerel (Scomberomorus commerson) is the primary species targeted in the Torres Strait spanish mackerel fi shery — for example, in 2005-06 it accounted for 96 per cent of the mackerel catch. Other species targeted include school mackerel, grey mackerel, spotted mackerel and shark mackerel. The value of the fi shery in 2005-06 was $1.5 million (fi gure G). This is 30 per cent lower than the average value from 1998-99 to 2000-01. This decline is attributable to a fall in both catch and prices.

Harvest rates in the fi shery are most likely to be near or above the maximum sustainable level (Begg et al. 2006). Although the stock is thought to be fairly stable, there is an overall concern about the lack of biological and fi shery informa-tion. Because of the schooling behaviour of spanish mackerel, catch rates may remain high while the stock is actually being depleted, a characteristic called hyperstability. As such, catch rates are a poor indicator of abundance without careful adjustment (IAAP 2006). This is particularly true of catch rates in the spawning sites of Bramble Cay and Stephens Island.

On the biological status of mackerel stocks in the Torres Strait, ABARE was informed by both islander and nonislander fi shers that catch rates outside spawning sites have deteriorated. In particular, it has become more diffi cult to fi nd a school of mackerel, and once struck, a school size is considerably smaller than in the past.

1.5

1.0

2.0

0.5

2006-07$m

2005-06

1993-94

1996-97

1999-2000

2002-03

real value of the spanish mackerelfishery – Torres Strait

fig G

spanish mackerel

12


coral trout

The reef line fi shery is a multi-species fi shery primarily targeting coral trout (Plectropomus sp). In 2005-06 the value of the reef line fi shery was $0.9 million (fi gure H). This value is down on recent years, primarily because of a decline in the volume of catch. For example, between 2004-05 and 2005-06 the volume of reef fi sh caught dropped by 56 per cent.

The biological status of the Torres Strait reef line fi shery is unknown, owing to a lack of reliable infor-mation. Higher catch rates of reef fi sh in the Torres Strait relative to corresponding species in the Queensland east coast suggest comparatively healthier stocks in the Torres Strait (McLoughlin 2006).

management of Torres Strait fi sheriesTorres Strait fi sheries are managed by the Torres Strait Protected Zone Joint Authority (PZJA) in accordance with the Torres Strait Fisheries Act 1984 and the Torres Strait Treaty ratifi ed by Australia and Papua New Guinea in 1985. The Torres Strait Fisheries Act sets out the objectives of the PZJA to include the protec-tion of the marine environment and the traditional way of life for islander inhabit-ants, together with effi cient utilisation of the marine resource. The treaty defi nes the boundaries of the Torres Strait Protected Zone (TSPZ) shown in map 1.

The commercial fi sheries of tropical rock lobster, mackerel and reef line are currently managed under a licensing system combined with several input controls. Some input controls are designed to protect the environment — for example, the ban on trawling to safeguard the reef — while others are intended to indirectly limit catch.

1.5

1.0

2.0

0.5

2006-07$m

2005-06

2004-05

2003-04

2002-03

real value of the reef line fishery – Torres Strait

fig H

coral trout

13


Input controls are generally ineffi cient and cumbersome for controlling catch (Rose 2002). They have a role when output controls cannot be enforced, but this is not the case in the Torres Strait fi sheries in question. Recognising this, there are plans to move to a catch quota management system in the Torres Strait rock lobster, spanish mackerel and reef line fi sheries. Introduction of the quota system was proposed for the 2008 season (PZJA (Protected Zone Joint Authority) 2007b). However, there have been delays and at this stage it is uncertain when the system will be in place.

Under the quota management system, a total allowable catch (TAC) will be set for each fi shery, with operators allocated proportions of the TAC as commercial fi shing rights. Operators with transferable vessel holder licences will be allocated individual transferable quotas (ITQs). At least for the fi rst two years of the catch quota system, the traditional inhabitant boat sector will be allocated a group quota, while the Torres Strait Regional Authority considers the best quota distribu-tion model (PZJA 2007c).

map 1 Torres Strait Protected Zone

141°E

141°E

142°E

142°E

143°E

143°E

144°E

144°E

11°S

10°S

141°

01'

00

"E

PAPUA NEW GUINEA

11° 10' 00" S

Boigu I.

Saibai I.

. 10° 41' 11.68" S

144°

40'

00

"E

PAPUA NEWGUINEA

AUSTRALIA

Turnagain I.

Ca

PAPUA NEW GUINEA

AUSTRALIA

© Commonwealth of Australia 2006

AUSTRALIA

Torres Strait fisheriesreefs

11°S

10°S

Protected Zone boundaryFisheries Jurisdiction lineExclusive Economic Zone limit (200nm)

Coral Sea

Ashmore Reef

Bramble Cay

Anchor Cay

East Cay

Turu Cay

Moa I.

Prince of Wales I.

Torres Strait

14


licences

Various types of licence are required to fi sh within the Torres Strait Protected Zone.

Traditional inhabitant boat (TIB) licences are available only to traditional inhabit-ants who are known in this report as Torres Strait Islanders. There is currently no limit on the number of TIB licences issued to islanders. Regulations for the TIB licence require the holder of the licence to be the full owner of the boat, to ensure that only traditional inhabitants commercially fi sh from the boat and that commer-cial fi shing takes place only in the Torres Strait Protected Zone, including the ‘outside but near areas’ (Taylor, Prescott and Kung 2004). There is provision for allowing nonislanders to operate on a TIB boat, but only in a training capacity.

In the tropical rock lobster fi shery, the length of TIB boats was restricted to six metres in 2005 in order to constrain catch in the TIB sector (PZJA 2006). This restriction was removed at the twentieth PZJA meeting late last year. In both the lobster and the fi nfi sh fi sheries, TIB vessels may now be up to twenty metres in length.

Both islanders and nonislanders can use a transferable vessel holder (TVH) licence to fi sh commercially in the Torres Strait Protected Zone. Unlike the TIB licence, the TVH licence may be traded. Under this licence, the length of the primary boat can be up to twenty metres in both the lobster and fi nfi sh fi sheries (DEH 2004; DEH 2005). However, the replacement vessel for a TVH primary boat must be no longer than the vessel being replaced.

All TVH vessels must be skippered by a person with a master fi shers licence. Further, if tenders are attached to the primary boat, the number of tenders allowed must be endorsed on the licence, and the vessel holder must hold a processing licence. A processing licence is required to process catch beyond what is required to preserve them. In the tropical rock lobster fi shery, for example, this means that without a processing licence, tails can be removed, but cannot be frozen.

Since 1988, no new TVH licences have been allocated (AFMA 2005). Further, the allocation of master fi shers licences to nonislanders is currently capped. These measures are intended, among other objectives, to increase the opportunities for islanders in commercial fi shing.

15


input and other controls

Input controls and other controls, such as size restrictions, are in place for commer-cially exploited species such as rock lobster and fi nfi sh.


Input controls in the Torres Strait tropical rock lobster fi shery include gear restric-tions, time closures and vessel restrictions (DEH 2004). Under current gear restrictions, lobsters can be taken only by hand or hand held implements, such as a spear or hand held scoop nets (McLoughlin 2006). Fishers can either free dive or use a breathing apparatus called ‘hookah’ (box 1).

Time closures in the fi shery include a seasonal ban on all commercial fi shing, an additional seasonal ban on hookah and monthly spring tide closures to fi shing with hookah (table 3). However, monthly spring tide closures may be abandoned under the new management arrangements currently being implemented in the fi shery (PZJA 2007c). In the commer-cial fi shery, lobsters must exceed 115 millimetres in tail length or 90 millimetres in carapace length (PZJA 2007a).

box 1 hookah equipment

Hookah apparatus supplies air from the surface to the diver. A portable engine or electric motor powers an air compressor, and delivers air to the diver through a hose. Unlike scuba equipment, hookah does not use high pressure air tanks but can provide an unlimited supply of air from the surface which only ceases when power to the compressor stops.Source: www.keeneengineering.com/pamphlets/howhookah.htm

table 3 fi shing closures for the tropical rock lobster fi shery – Torres Strait

closure period type

October and November closed for all types of commercial fi shingDecember and January closed to lobster fi shing using hookah equipment open for free diving and lamp fi shingFebruary to September spring tide closures (ban on use of hookah for approximately 7 days each month)Sources: IAAP (2006); PZJA (2007a).

16


mackerel

Gear restrictions, area closures and size limits also apply in the spanish mack-erel fi shery. Gear restrictions in the commercial mackerel fi shery mean that fi sh may only be caught through trolling, hand lining and drop lining fi shing methods (Larcombe and McLoughlin 2007).

Area closures also exist. The waters around Bramble Cay and Black Rocks are closed to TVH fi shers from around 9.30 am to around 3.00 pm in the months of August to December. In addition, fi shing is restricted to trolling methods (DEH 2005). The temporal area closure is designed to give the breeding stock a break, in order to improve juvenile recruitment rates and conserve the stock of spanish mackerel. There is also a closure on fi shing for fi nfi sh west of longtitude 142

o31’49”.

In 2005, the Protected Zone Joint Authority approved ten nautical mile exclusion zones to TVH fi shers, around Murray, Darnley, Yorke and Stephen Islands, on implementation of the new management plan (DEH 2005). This will apply to both the spanish mackerel fi shery and to the reef line fi shery considered below.

The minimum size for spanish mackerel caught by commercial fi shers is 750 milli-metres (PZJA 2007).

reef line

In the reef line fi shery, hand lines are the primary method of fi shing. Restrictions on hand lines include that each line can contain no more than six hooks. Further, a maximum of three fi shing apparatuses can be used per boat (PZJA 2007a). Fishers in the Torres Strait cannot keep fi nfi sh as live catch (PZJA 2007). While this restric-tion applies to all fi nfi sh, it is mainly relevant for coral trout as coral trout are worth considerably more live than frozen. It was decided at the twenty-fi rst meeting of the PZJA that the prohibition on retaining live fi sh will be removed on implementa-tion of a management plan for fi nfi sh fi shers.

17

comparing fi shing styles of islander and nonislander fi shers

The ‘island way’ of fi shing refl ects both tradition and opportunity. Torres Strait Islanders have lived off the sea for centuries and have their own way of fi shing. At the same time, some islanders have been quick to adopt more effi cient tech-nologies, and they are among the most experienced and productive fi shers in the Torres Strait. More generally, however, the islander sector has been slow to embrace more profi table fi shing methods. Many of the effort controls discussed in the previous chapter have also limited the income opportunities of islander fi shers.

It is the purpose in this chapter to compare the traditional inhabitant boat (TIB) fi shing style with that of transferable vessel holder (TVH) fi shers. While it is the case that islanders can have TVH licences, and some do, almost all commercial islander fi shers operate with a TIB licence.

scaleTIB fi shers operate on a consid-erably smaller scale than TVH fi shers. In the TVH sector, fi shers generally use a large boat as the primary vessel, which tows one or more smaller boats used as fi shing platforms. These smaller boats are known as tenders or dories. The primary vessel provides transport between port and fi shing areas, together with processing and accommodation facilities. Based on ABARE’s survey, unlike the typical TVH fi sher, a TIB fi sher tends to fi sh with just one boat, usually a small open dinghy (fi gure I).

3

1.5

1.0

2.0

0.5

boats

lobster finfish

average number of fishing platforms in a fishing trip – Torres Strait fig I

average 2004-05and 2005-06

TIBTVH

18


A small boat has limited storage and processing capacity. For example, a dinghy cannot carry a snap freezer. Nor can a small boat provide accommodation facilities. This makes smaller boats less suitable for long distance trips. Furthermore, smaller boats are less effi cient and less reliable in poor weather conditions (Mapstone, Tobin, Jones and Begg 2003).

Fishing from smaller boats, TIB fi shers typically operate with signifi cantly fewer crew members. In ABARE’s survey, it was found that TIB fi shing

vessels carry either one or two crew members, compared with between two and four crew members on an average TVH fi shing trip (fi gure J).

The larger boats of TVH fi shers not only support more crew, but are equipped with onboard freezers, accommodation facilities and processing facilities. These enable TVH fi shers to fi sh a greater area and stay out longer with fewer return trips to unload. In contrast, it was found from ABARE’s survey that, fi shing from open dinghies, TIB fi shers generally complete their fi shing trips within a day or two (fi gure

K). The duration of a TIB fi sher’s fi shing trip may extend to two or more days if they stay overnight on a nearby island or cay (Mapstone et al. 2003).

In theory, one or more TIB fi shers could operate on the same scale as TVH fi shers by acquiring a fi shing license for a large primary boat and for each of one or more dories. The fact that TIB fi shers typically operate just one boat implies that the scale of TIB fi shing businesses may be limited by factors such as fi nancial consider-ations, business experience, tradition and regulations.

2

1

3

crew

lobster finfish

average number of crew on a fishing trip – Torres Strait fig J

average 2004-05 and 2005-06

TIBTVH

10

8

12

4

2

6

days

lobster finfish

average length of a fishing trip – Torres Strait

fig K

days spent at sea, average 2004-05 and 2005-06

TIBTVH

19


zone of operationIt has already been pointed out that TVH fi shers operate over greater distances than TIB fi shers. This is important because the stock of marine species is not distrib-uted evenly in Torres Strait waters, nor is the commercial value for different species equivalent. Hence, there are regions or islands that have a natural advantage and are ‘resource rich’, while other islands are comparatively ‘resource poor’. Therefore, the zone of operation can signifi cantly affect the type of species targeted and the quality and quantity of catch.

In fi gure L, survey results are used to compare how far the two sectors fi sh from their unloading port. Notably, in the tropical rock lobster fi shery, TVH fi shers operate twice as far from their unloading port as do TIB fi shers. In the fi nfi sh sector, the difference in distance is much smaller, but this belies their quite different fi shing zones. In particular, TVH mackerel fi shers concentrate their efforts around Bramble Cay, which is too far for TIB fi shers to travel to fi sh in open boats unless the weather is good. In contrast, most TIB mackerel catch is caught around Stephens Island and on other reefs around inhabited islands in the eastern Torres Strait.

It is not only boat size that affects the zone of operation of fi shers in the Torres Strait. There is an understanding in the Torres Strait that some reefs traditionally belong to inhabitants of nearby islands. These traditional property rights are generally respected by fi shers. TIB fi shers in particular will not enter another island’s fi shing territory without being welcomed (Arthur 2005; Mapstone et al. 2003).

When fi shing is not good on their home reefs, the small size of TIB boats prevents them from travel-ling any great distance to other reefs. In contrast, TVH fi shers work on several reefs, moving from reef to reef according to where the fi sh are. This is particularly true of lobster and reef line fi shers. TVH mackerel fi shers, on the other hand, catch most fi sh at Bramble Cay during the spawning season.

40

20

10

30

kms

lobster finfish

average distance of fishing from unloading port – Torres Strait

fig L

average 2004-05 and 2005-06

TIBTVH

20


supply chainScale has an impact not only on TIB fi shers’ zone of operation but on their access to inputs and on their access to markets. As a result, the typical supply chain of a TIB fi sher, particularly those in remote locations, can be quite different from that of a typical TVH fi sher.

TIB fi shers tend to source fi shing inputs locally. They generally do not operate on a large enough scale to justify freighting fuel or other inputs from Cairns, or to justify regular trips to the mainland to purchase fi shing inputs. Almost all TIB fi shers surveyed by ABARE reported purchasing all fuel, gear and repair services from their home island, or from a neighbouring island.

Unlike TIB fi shers, most TVH fi shers purchase fuel and gear in bulk on the mainland, and freight it on a mothership service to where they are fi shing in the Torres Strait. They also typically travel to the mainland in order to undertake a major refi t.

There are currently a couple of businesses providing a mothership service to the Torres Strait. They transport goods between the mainland and islands of the Torres Strait. Both Seaswift and Endeavour Shipping, for example, operate a fortnightly service between Cairns and Yorke Island in the east of the Torres Strait. Endeavour Shipping also operates a weekly service between Cairns and Horn Island, near Thursday Island. These operators also provide a service on demand to other areas of the Torres Strait.

As an alternative to the mothership service and to local fuel retailers, Portsmith Fuel retails fuel from a barge at Yorke Island. TIB fi shers tend to use this service only if they live on Yorke Island or need to pass by Yorke Island for another reason.

Boat size, among other things, constrains the capacity of TIB fi shers to process their catch. TIB fi shers, therefore, primarily supply an unprocessed or wet product, whereas TVH fi shers, operating out of larger boats, typically supply frozen product.

Because TIB fi shers generally supply an unprocessed or wet product, they have limited options for marketing their product. Fish must be processed soon after being caught, meaning that fi shers must generally sell to a local processing facility. Processing facilities are located on several islands, including Thursday Island, Badu Island, Yam Island, Yorke Island, Darnley Island and Murray Island. Fishers can also sell their product to TVH or TIB vessels with the requisite class C processing licence. However, this rarely occurs.

21


Many TIB fi shers live on an island without a processing facility. They therefore face an additional travel cost to take their catch to a buyer. This is the case, for example, for lobster fi shers on Sue Island.

TVH fi shers in the lobster fi shery typically sell their product to processors located on Thursday Island or in Cairns, who then export or supply the domestic retail market. TVH fi nfi sh fi shers typically sell their product through agents based on the mainland, supplying mackerel to the Queensland market, and reef fi sh for export or domestic sale.

fuel rebates and TIB fi shers

The cost of fuel is a key determinant of the profi tability of a fi shing business. The Commonwealth fuel excise credit of 38.143 cents a litre is provided to primary industries, including fi shers, but only for the use of diesel and only to those who are registered for GST. However, most TIB fi shers use petrol motors. From 1 July 2008, the rebate will be extended to fi shers using petrol, providing they are registered for GST (ATO 2007).

effortFor several reasons, TIB fi shers typically spend fewer days fi shing in a year than do TVH fi shers. This is particularly apparent in the fi nfi sh sector, where ABARE’s survey indicates that TIB fi shers fi shed around 40-50 days fewer than TVH fi shers in both 2004-05 and 2005-06 (fi gure M).

Among other reasons, TIB fi shers spend fewer days fi shing than TVH fi shers because they have a different set of commitments. In particular, most TIB fi shers rely on CDEP as their principal income source. As CDEP employees, they are required to work full time hours every second week. TIB fi shers also tend to give priority to cultural and community events.

100

120

40

20

80

60

days

lobster finfish

average number of fishing days – Torres Strait

fig M

average 2004-05 and 2005-06

TIBTVH

22


Poor weather also interrupts fi shing effort, particularly of fi shers who operate out of small open boats as do TIB fi shers. In addition, in the lobster fi shery, weather conditions and tides have a much greater impact on fi shers free diving on the shallow reefs than on hookah divers who can dive to 20 metres. The effort of free divers is also comparatively constrained on a good day by the extra physical exertion required to free dive rather than to hookah dive. In this context, it is useful to note from AFMA data that while hookah is used by all TVH lobster fi shers, around 50 per cent of TIB fi shers free dive rather than use hookah (fi gure N).

60

40

20

80

%

use of hookah for tropical rock lobster – Torres Strait

fig N

free diving

TIB

hookah

TVH

average 2004-05 and 2005-06

23

comparing economic benefi ts of islander and nonislander fi shers

There is a perception that traditional inhabitant boat (TIB) fi shers are benefi ting less fi nancially from fi shing in the Torres Strait than transferable vessel holder (TVH) fi shers. This perception could be based on a range of factors, including that TVH fi shers generally operate on a much larger scale than TIB fi shers, and therefore generally receive a greater income from fi shing.

Another factor behind the perception that TIB fi shers are benefi ting less from fi shing than TVH fi shers could be that TVH fi shers often receive a higher price for their catch. However, where these price differences exist, they mostly refl ect the degree of value adding to the product. For example, in the tropical rock lobster fi shery, a higher price per kilogram is paid for a tail that has been snap frozen than for a wet tail, refl ecting the additional value adding that has been undertaken.

It is already evident from this discussion that, to be accurate, a comparison of economic benefi ts from fi shing needs to be grounded on detailed information about income and costs. The results of the survey provide the detail required to compare the profi tability of TIB fi shers with TVH fi shers. Given that the survey results for the tropical rock lobster fi shery are quite different from that of the fi nfi sh fi shery, the survey results are considered for each fi shery in turn.

A key observation in this survey needs to be understood from the outset. Few TIB fi shers kept fi nancial records. TIB survey results are therefore only an approxima-tion. That they are a good approximation is suggested by the fact that TIB fi shers’ recollection of catch was generally verifi ed by AFMA data.

Another key point is that for most TIB fi shers CDEP and not fi shing is their primary source of income. For the purpose of comparing the economic benefi ts from fi shing, the analysis in this chapter is concerned only with income from fi shing, and excludes all other income.

The presentation of the survey results in this chapter is in nominal dollar terms — that is, in the dollars of the day.

4

24


tropical rock lobster fi shery

boats surveyed

The survey of the Torres Strait tropical rock lobster fi shery covered the years 2004-05 and 2005-06. For each year, the target population was defi ned as boats licensed to fi sh in the fi shery that had commercially caught at least 50 kilograms of processed weight in the year.

For the TIB sector, for 2004-05, twelve vessels were sampled from a population of 369 vessels; for 2005-06, eight vessels were sampled from a population of 288 boats. The sample size was limited to reduce survey costs. However, while only a small proportion of TIB fi shers were surveyed, the sample is considered to be representative of the population in terms of catch because it includes fi shers with high, medium and low catch. Further, the TIB sector is homogeneous in vessel size and vessel type, and therefore in crew size and in the extent to which catch is processed.

For the TVH sector, nine vessels were sampled from a population of 25 vessels for 2004-05; the same vessels were sampled from a population of 23 vessels for 2005-06.

fi nancial returns of fi shers

Table 4 contains key measures of catch and of the fi nancial performance of the TIB and TVH fi shing fl eets in the Torres Strait rock lobster fi shery. Defi nitions of fi nancial items in this table are provided in appendix A.

catch

From the outset it needs to be noted that the 2006 fi shing season produced a poor harvest, compared with the years 2003 to 2005 (refer back to fi gure F). This is evident by comparing the volume of catch in a day by a tender in 2004-05 with that in 2005-06. In the TIB sector, the average dinghy’s daily catch fell by 13 per cent from 24 kilograms to 21 kilograms. Similarly, in the TVH sector, the average tender’s daily catch fell by 26 per cent from 70 kilograms to 52 kilograms.

It is noteworthy that the decline in catch rate is more pronounced for the TVH sector than for the TIB sector. This is largely attributable to the withdrawal of many TIB fi shers in 2005-06 in response to a poor year of fi shing. AFMA data reveals

25


table 4 comparison of TIB and TVH boats operating in the Torres Strait tropical rock lobster fi shery average per boat

traditional inhabitant transferable vessel boat fi shers holder fi shers

2004-05 2005-06 2004-05 2005-06

catch (whole weight) t 2.3 (11) 2.1 (7) 24.2 (21) 11.6 (29)

primary boat days of fi shing no. 95 (21) 101 (14) 138 (10) 117 (13)

number of tenders used no. 1 (0) 1 (0) 2.5 (17) 1.9 (18)

daily catch of a tender kg/day 24 21 70 52

cash receipts fi shing receipts $ 30 300 (12) 32 321 (10) 450 411 (16) 240 822 (30)

other receipts $ 4 (189) 0 na 7 107 (27) 4 946 (35)

total cash receipts $ 30 304 (12) 32 321 (10) 457 518 (16) 245 767 (30)

cash costs administration $ 211 (61) 207 (74) 6 242 (15) 5 487 (20)

crew costs a $ 6 498 (32) 9 390 (27) 151 571 (35) 86 381 (48)

freight $ 0 na 0 na 2 489 (30) 1 907 (28)

fuel, oil and grease $ 7 130 (14) 6 498 (17) 61 403 (22) 48 612 (27)

gear $ 492 (43) 346 (22) 8 161 (41) 7 366 (44)

insurance $ 4 (191) 6 (203) 8 003 (40) 6 687 (47)

interest paid $ 25 (191) 32 (203) 1 127 (96) 2 952 (74)

licences/wharfage $ 128 (7) 121 (7) 1 119 (40) 1 052 (41)

repairs $ 1 495 (23) 1 911 (18) 29 857 (35) 12 930 (25)

travel $ 56 (82) 53 (112) 1 907 (32) 1 883 (39)

other costs $ 56 (57) 43 (84) 812 (22) 750 (27)

total cash costs $ 16 096 (16) 18 606 (12) 272 692 (27) 176 007 (34)

boat cash income $ 14 208 (23) 13 715 (21) 184 826 (16) 69 760 (30)

less depreciation $ 1 222 (33) 1 121 (34) 26 253 (40) 21 828 (43)

boat business profi t $ 12 986 (26) 12 595 (20) 158 573 (21) 47 932 (43)

capital b $ 11 948 (30) 11 312 (29) 262 533 (40) 220 786 (43)

a Crew costs exclude imputed owner and family labour costs. This approach varies from the standard approach in ABARE fi sh surveys report, where crew costs include an estimate for imputed labour. b Capital does not include the value of the licence. This is in contrast to the usual approach in ABARE fi sh surveys reports. na Not applicable. Note: Figures in parentheses are relative standard errors. A guide to interpreting these is included in appendix A.

26


that almost a quarter of TIB vessels dropped out of the fi shery, compared with a reduction of just two vessels, or 8 per cent of TVH vessels (AFMA 2007). Only the more profi table TIB fi shers remained, contributing to the daily catch rate for the sector declining less than for the TVH sector. However, for individual fi shers in both TIB and TVH sectors, the catch rate fell signifi cantly between 2004-05 and 2005-06.

The fi nancial year 2004-05 is more representative of an average year than the fi nancial year 2005-06. For this reason, the comparison of the TVH and TIB fi shing sectors in the Torres Strait lobster fi shery focuses on the 2004-05 survey data.

Considering catch in 2004-05, the average TVH fi sher caught 24 tonnes of whole weight in 2004-05, over ten times more than the 2.3 tonnes caught by the average TIB fi sher. In part, this difference in catch can be attributed to a difference in effort. In 2004-05, for example, the average TVH fi sher spent around 138 days fi shing, compared with 95 days for the average TIB fi sher. The reasons for the difference in effort were noted in the previous chapter, but include the commitment of TIB fi shers to CDEP employment and cultural events. However, the principal reason why TVH fi shers caught more fi sh is that they operate on a far larger scale, as discussed in the previous chapter.

Scale affects catch in at least three ways.

» TVH fi shing vessels operate with multiple fi shing platforms — in 2004-05, for example, the average TVH fi shing boat was equipped with 2.5 tenders as opposed to the single fi shing platform used by the average TIB vessel.

» the processing facilities on a TVH vessel allow TVH fi shers to continue to fi sh for several days, whereas a TIB vessel must return to shore almost daily to sell the fi sh to a processing factory — for this reason, a TVH fi sher can spend more time in the day fi shing and less time travelling than a TIB fi sher.

» 100 per cent of TVH fi shers surveyed reported using hookah, a far more effec-tive method of fi shing than free diving, compared with around 50 per cent of TIB fi shers — this contributes to the average daily catch rate of a tender in the TVH fi shery being 70 kilograms in 2004-05, or three times higher than the daily catch of 24 kilograms of an average dinghy in the TIB fi shery.

27


receipts

Refl ecting the much greater scale of TVH fi shers compared with TIB fi shers, average total cash receipts per boat were signifi cantly higher in the TVH sector than in the TIB sector in both survey years. In 2004-05, for example, total cash receipts were around $458 000 in the TVH sector, around fi fteen times higher than total cash receipts of around $30 000 in the TIB sector.

Another factor that contributes to the difference in receipts, albeit minor, is that TIB fi shers tend to receive a lower price for their product than TVH fi shers (fi gure O). In 2004-05, for example, the price paid to TIB fi shers was over $6 a kilogram or 20 per cent lower than that paid to TVH fi shers. However, this is primarily because TIB fi shers supply a less processed product. TIB fi shers generally supply wet tails, meaning tails that have been removed from the body and cleaned, but not frozen. In contrast TVH fi shers supply frozen tails or live lobsters. The price per kilogram is lower for wet tails than for frozen tails because there is less value adding. It is worth emphasising, however, that by supplying a wet product, TIB fi shers incur less processing costs than TVH fi shers.

costs

Like receipts, average total cash costs in the TVH sector were much greater than those of the TIB sector in both survey years. Average total cash costs per boat in 2004-05, for example, were $273 000 in the TVH sector, compared with around $16 000 in the TIB sector. This difference is seventeenfold, similar to the ratio of TVH receipts to TIB receipts.

Crew costs, followed by fuel expenses and repair costs were the largest cost items in both survey years and in both sectors. Crew costs were high in both sectors because diving for rock lobsters in the Torres Strait requires at least two operators.

In 2004-05, for example, these three cost items accounted for 90 per cent of total cash costs in the TVH sector, and for 94 per cent in the TIB sector. Note that for both sectors, this esti-mate relates only to paid employment

20

10

30

$/kg

nonislanderislander

average price received by fishers for tropical rock lobster – Torres Strait fig O

2004-05

28


for each vessel. It does not include an estimate of unpaid owner and family labour. Of interest is that fuel accounts for a greater share of costs in the TIB sector than in the TVH sector. Fuel expenses contributed to 44 per cent of cash costs of the average TIB boat in 2004-05, compared with 23 per cent for the average TVH vessel. TIB fi shing operations are much more fuel intensive because they generally make daily trips to take their catch to shore to be processed. TVH vessels on the other hand are able to process on board and therefore only return to shore when the freezer is full or by force of the spring tide closure.

boat cash income and profi t

Average boat cash income, which is the difference between total cash receipts and total cash costs, was again signifi cantly higher in the TVH sector in 2004-05 than in the TIB sector. In the TVH sector, average boat cash income was around $185 000 per boat in 2004-05, thirteen times greater than the average TIB boat cash income of $14 000.

Similarly, boat business profi t, or boat cash income less an allowance for deprecia-tion, was substantially greater in the TVH sector than in the TIB sector in 2004-05. By allowing for depreciation, boat business profi t factors in the cost of maintaining the boat and other business equipment.

capital

Capital is the value of the assets used by the business, including, for example, the boat, freezers, trailers and vehicles. There is a substantial difference in capital invested by the TVH and TIB sectors. For the average TVH vessel, there is twenty times more invested in business capital than for the average TIB vessel.

Given the vast difference in capital scale, it is not surprising that the average TVH vessel earns far more income than the average TIB vessel. To compare the economic

5

4

7

6

2

1

3

$

2005-062004-05

TVH

TIB

income from each kilogram of tropical rock lobster – Torres Straitfig P

29


performance of these very differently sized operations, scale can be taken into account by comparing income earned per kilogram of lobsters caught.

income per kilogram of catch

Income per kilogram is calculated as the boat cash income earned by a vessel for every kilogram of whole lobster caught. The average income per kilogram in the TIB sector is comparable with the average in the TVH sector. In 2004-05 for example, the average TIB fi sher earned $6.22 of boat cash income from every kilogram of whole weight lobster caught (fi gure P). This was only marginally less than the $7.63 earned by the average TVH fi sher from each kilogram of whole weight catch.

fi nfi sh fi shery

boats surveyed

ABARE’s survey of the Torres Strait fi nfi sh fi shery covered the years 2004-05 and 2005-06. The target population for each year was defi ned as boats licensed to fi sh in the fi shery that had commercially caught at least 100 kilograms of proc-essed weight in the year.

For the TIB sector, for 2004-05, fi ve vessels were sampled from a population of 46 vessels and the same vessels were sampled from a population of 31 boats for 2005-06. For the TVH sector, for 2004-05, six vessels were sampled from a population of 23 vessels and the same six vessels were sampled from a popula-tion of fourteen vessels for 2005-06.

fi nancial returns of fi shers

Table 5 contains key measures of catch and of the fi nancial and economic performance of the TIB and TVH fi shing sectors in the fi nfi sh fi shery. Defi nitions of fi nancial items in this table are provided in appendix A.

catch

As for the lobster fi shery, the average TVH vessel caught far more fi sh than the average TIB vessel. For example, the average TIB fi sher caught around 1.5 tonnes of whole weight fi nfi sh in both survey years. In contrast, the average TVH fi sher caught eight times more, or over 12 tonnes in both survey years. This substantial difference in catch is partly attributable to a difference in effort. On average, a

30


TVH fi sher operates around 100 days a year, twice that of the average TIB fi sher. The reasons for this were provided in the previous chapter and include the CDEP commitments of TIB fi shers and the fact that TIB fi shers typically have small vessels that cannot fi sh during poor weather.

However the primary reason for the difference in catch is the difference in scale. In the fi rst place, TVH fi shing operations typically use more than one fi shing platform. By using multiple boats, TVH businesses can catch more fi sh in a year than a TIB fi sher using a single dinghy.

Scale also contributes to how much a TVH tender catches in a day compared with a TIB dinghy. Equipped with processing facilities, a TVH operation can remain at fi shing grounds for a couple of weeks. In contrast, the typical TIB fi sher must make almost daily trips back to land to take their catch to a processing facility, leaving them fewer hours in a day for fi shing. This contributes to the daily catch of a TVH tender exceeding that of a TIB dinghy by two to three times in both survey years.

receipts

Total cash receipts did not vary signifi cantly in the fi nfi sh fi shery over the survey years for either sector. In 2005-06, total cash receipts of the average TVH fi sher were around $150 000. In that same year, total cash receipts of the average TIB fi sher were far less, at around $15 000. The difference in receipts mainly refl ects the much greater scale at which TVH fi shers operate, but is also the result of a difference in the prices received by TIB fi shers and TVH fi shers (fi gure Q). Again

as for the lobster fi shery, the price differential is in large part because TVH fi shers supply a more highly processed product. Generally, the TIB sector supplies a wet product, and the TVH sector supplies frozen product. Snap freezing maintains the quality of the catch and therefore attracts a higher price.

In the TVH sector, it is standard practice to process mackerel and other reef fi sh and put the fi llets into the snap freezer within a few hours of it being caught. In the TIB sector, the practice is to sell

10

8

4

2

6

$/kg

TIB TVH

2005-06

2004-05

average price received by fishers for finfish – Torres Straitfig Q

31


table 5 comparison of TIB and TVH boats operating in the Torres Strait fi nfi sh fi shery average per boat

traditional inhabitant transferable vessel boat fi shers holder fi shers

2004-05 2005-06 2004-05 2005-06

catch in whole weight t 1.6 (26) 1.5 (26) 12.2 (37) 12.5 (33)

primary boat days of fi shing no. 47 (26) 47 (24) 103 (15) 90 (25)

number of tenders used no. 1 (0) 1 (0) 1.4 (25) 1.7 (21)

daily catch of a tender kg/day 35 33 85 82

cash receipts fi shing receipts $ 14 231 (29) 15 346 (31) 130 994 (41) 144 370 (41)

other receipts $ 556 (45) 0 na 3 036 (67) 5 046 (41)

total cash receipts $ 14 787 (29) 15 346 (31) 134 030 (42) 149 416 (41)

cash costs administration $ 400 (61) 478 (52) 2 653 (48) 3 886 (33)

bait $ 776 (25) 825 (24) 2 960 (58) 3 448 (52)

crew costs a $ 66 (335) 92 (274) 20 971 (97) 30 812 (76)

freight $ 0 na 0 na 6 007 (40) 7 296 (30)

fuel, oil and grease $ 6 897 (22) 5 194 (11) 12 352 (42) 15 761 (29)

gear $ 1 317 (29) 1 513 (30) 2 465 (35) 2 684 (37)

licences/wharfage $ 145 (9) 133 (19) 983 (30) 1 840 (25)

repairs $ 2 081 (41) 2 504 (50) 7 627 (31) 8 910 (28)

travel $ 850 (64) 656 (63) 165 (77) 285 (59)

other costs $ 993 (37) 914 (42) 682 (67) 865 (54)

total cash costs $ 13 525 (13) 12 308 (23) 58 277 (56) 77 893 (44)

boat cash income $ 1 261 (218) 3 038 (115) 75 753 (34) 71 523 (43)

less depreciation $ 1 056 (39) 1 241 (46) 9 391 (40) 10 432 (49)

boat business profi t $ 205 (1246) 1 796 (181) 66 361 (36) 61 092 (44)

capital b $ 12 852 (31) 13 223 (41) 90 753 (42) 98 646 (52)

a Crew costs exclude imputed owner and family labour costs. This approach varies from the standard approach in ABARE fi sh surveys report,

32


the fi sh to the local freezer, where the fi sh is fi lleted and snap frozen. Furthermore, not all TIB fi shers put their catch on ice before returning to land, and there are occasional delays at the local freezer, for example, associated with several fi shers returning their catch at once. These factors may compromise the quality of the fi nal product.

costs

Refl ecting the greater scale of operations, average total cash costs in the TVH sector were much greater than those of the TIB sector in both survey years. Average total cash costs per boat in 2005-06, for example, were around $78 000 in the TVH sector, compared with approximately $12 000 in the TIB sector. While average cash costs remained steady between survey years for the TIB sector, for the TVH sector, average total cash costs increased by around 34 per cent. This was primarily because several small operators dropped out of the TVH fi shery in 2005-06, leaving mainly large scale operators and thereby contributing to higher average costs.

Crew costs, followed by fuel expenses and repair costs were the largest cost items for the TVH sector in both survey years. In 2005-06, these three cost items accounted for 71 per cent of total cash costs in the TVH sector. The pattern of costs was quite different in the TIB sector. Crew costs were relatively low for the TIB sector because in the fi nfi sh fi shery, TIB fi shers typically fi sh alone. However, the relative cost of fuel, repairs, gear and bait were high in comparison with the TVH sector. To compare costs between sectors, it is necessary to make allowance for scale. This can be done by considering costs per kilogram of fi sh sold (fi gure R).

From fi gure R it is clear that based on what TIB fi shers remembered paying, the average TIB fi sher incurred higher costs per kilogram of catch relative to the

4

2

6

$/kg

TVHTIB

totalcrewbaitgearrepairsfuel

cash costs of fish caught in the finfish fishery – Torres Strait, 2005-06 average per boatfig R

33


average TVH fi sher. This is particularly true of fuel, gear and repair expenses.

A key factor behind the fuel cost difference is that TVH fi shers typically source their fuel from the mainland at a price well below the price of local fuel outlets that TIB fi shers rely on (table 6). Most TIB fi shers on remote islands have only one fuel outlet from which to buy fuel. The exceptions are fi shers located near Yorke Island, who can buy fuel from the Portsmith Fuel barge moored at Yorke Island. The price of fuel from the Portsmith Fuel barge corresponds to the price of petrol in Cairns plus 25–50 cents a litre to cover freight and other costs.

Another key difference is the Commonwealth fuel rebate provided to fi shers and other primary producers who are registered for GST. To date, the Commonwealth fuel excise credit of 38.143 cents a litre has only been available for the use of diesel. This does not benefi t most TIB fi shers who rely on petrol motors. However, the fuel excise credit will be extended to petrol from 1 July 2008 providing businesses are also registered for GST.

A related point is that the diesel engines preferred by TVH fi shers are far more fuel effi cient than the outboard motors used on TIB boats. Outboards, particularly the two strokes used by most TIB fi shers, consume much more fuel per nautical mile than a typical diesel engine. However, diesel engines are more expensive to purchase.

Further, TIB vessels generally make daily trips back to shore to offl oad their catch so that it can be processed. In contrast, TVH vessels are equipped with processing facilities, allowing them to continue fi shing for weeks at a time.

The high cost to TIB fi shers of repairs, gear and bait may also be attributed, at least in part, to their remote location. These items are sourced by the TVH sector from Cairns, as discussed in chapter 3 (see discussion of supply chain). TIB fi shers, on the other hand, rely almost exclusively on small, local outlets. TIB fi shers there-fore face the higher costs that are associated with a supply chain servicing small, remote locations. These additional costs include higher transport costs. More than that, the cost of any interruption of supply to a retailer is much higher when a community only has access to a single retailer.

table 6 fuel prices in the Torres Strait and in Cairns

April 2007 May 2007 $/L $/Lunleaded petrolBadu Island 1.85 1.85Mabuiag Island 2.62 2.62Mer, Murray Islands 2.43 2.35Stephens (Ugar) Island 2.00 2.00Sue (Warraber) Island 2.61 2.61Yorke (Masig) Island 2.55 2.55Thursday Island 1.70 1.81Cairns 1.22 1.24

diesel Cairns 1.20 1.22Sources: Torres Strait Regional Authority records and RACQ (2007).

34


boat cash income and profi t

Average boat cash income, which is the difference between total cash receipts and total cash costs, was stable for the TVH sector across both survey years. The TVH sector recorded average boat cash income of around $72 000 in 2005-06. This was substantially greater than the approximate $3000 of boat cash income earned by the average TIB fi sher.

Allowing for depreciation gives an estimate of boat business profi t. Depreciation for an average TIB boat constitutes almost half of boat cash income, resulting in an average boat business profi t of around $1800, for example, in 2005-06. Depre-ciation in the TVH sector comprised 14 per cent of boat cash income. Average TVH boat business profi t was therefore around $61 000.

capital

In the fi nfi sh fi shery, as for the lobster fi shery, there is substantially more capital invested by the average TVH fi sher than by the average TIB fi sher. The average TVH fi sher has invested around seven times more in business capital than the average TIB fi sher. This is another indication of the extent to which the scale of the average TVH operation exceeds that of the average TIB operation in the fi nfi sh sector.

income per kilogram of catch

Income per kilogram is the boat cash income earned from every kilogram of whole fi sh caught. By factoring in the volume of catch, income per kilogram allows somewhat for the different scale of the TIB and TVH fi shing businesses.

Even when scale is taken into account, the TVH sector is clearly more profi t-able than the TIB sector in the fi nfi sh fi shery. For the TVH sector, income from each kilogram of whole fi nfi sh is around $6 in both survey years, but is less than $2 in both survey years for the TIB sector (fi gure S).

5

4

6

2

1

3

$

2005-062004-05

TVH

TIB

income from each kilogram of finfish – Torres Straitfig S

35

increasing the economic benefi ts of islander fi shers

Relative to the amount of fi sh that they are catching, some TIB lobster fi shers are earning returns that are at least comparable with TVH fi shers. Others have fi shing businesses that are struggling fi nancially, especially fi nfi sh fi shers who tend to be located in more remote locations. But for all islander fi shers, there are several ways to increase their income from fi shing, the most helpful of which are explored in this chapter.

Fishers themselves are responsible for their success. However, governments also have a critical role to provide policy settings that allow fi shers to maximise returns within biological and other constraints. The impending introduction of the quota system allows many input controls to be removed. Removing these controls will enhance the income opportunities of all TIB fi shers, particularly those who are more active.

TIB fi shers operate within a policy context that is broader than fi sheries manage-ment. Regional economic development policies, including those on fuel rebates, competition and CDEP, also infl uence the economic benefi ts from fi shing.

The focus in this report is on identifying ways to improve economic returns. It is important to recognise that in pursuing that objective, other values (such as socio-economic, environmental and cultural values) associated with the fi shery may be affected. These will be important considerations but are beyond the scope of this report.

government policiesGovernments can enhance the opportunities of TIB fi shers not only by providing effi cient fi sheries management, but also by ensuring the broader policy framework is conducive to development in the Torres Strait.

5

36


fi sheries management

Fishers, in general, can be expected to gain from recently announced policy initia-tives. These initiatives include establishing an explicit total allowable catch (TAC) and moving away from input controls to a catch quota system.

setting the TAC

The TAC can be set to maximise the profi ts of the fi shing industry. This is done by targeting the maximum economic yield (Kompas and Gooday 2005). This is not the same as targeting the maximum sustainable yield. The maximum sustainable yield is the greatest amount of fi sh that can be caught without depleting the fi sh stock. But this does not take into account the cost of catching the fi sh. Often, a fi shery is more profi table if the biomass is larger than that implied by the maximum sustainable yield. This is because it is generally cheaper to catch fi sh when the stock is larger as it takes less effort. The maximum economic yield takes cost and prices into account and is the amount of catch that delivers the greatest profi t to the fi shing industry.

TIB fi shers stand to gain if the biomass is allowed to increase, for example, by setting a TAC so that stocks are larger than those associated with the maximum sustainable yield. This is particularly an issue for those catching fi nfi sh as catch rates have reportedly declined in recent years, with the exception of mackerel caught at spawning grounds. Almost all TIB fi shers fi sh local reefs. If the biomass grows, they can continue fi shing home reefs, but will do so more profi tably because the catch rates will be higher.

It is not enough to set a TAC that takes fi shing costs and fi shing methods into account. Fishers’ profi ts also depend on how the TAC is achieved. The least cost measure for achieving a TAC is the subject of the next section.

remove input controls

Effort or input controls are ineffi cient for controlling catch (Rose 2002). Fishers will therefore gain from replacing input controls with a catch quota system. There are two main ways in which fi shers will gain.

» Catch quotas make it easier to control catch than input controls, providing catch can be monitored at a reasonable cost. For this reason, catch quotas are more effective at protecting the biomass, delivering higher incomes for fi shers in the future.

37


» Removing input controls provides fi shers with more freedom to adopt the method of fi shing that is most profi table for them. Input controls restrict how fi shers can fi sh, thus increasing fi shing costs and reducing fi shers’ incomes.

Current reform proposals indicate that some input controls may be retained under the new catch quota system. It is therefore worth emphasising how input controls impose costs on TIB fi shers.

personnel constraints

Current regulations effectively quarantine the TIB sector from the outside labour market. TIB fi shers cannot employ the services of individuals on their boats unless they are Torres Strait Islanders. An exception is made if the nonislander is providing training.

This restriction on personnel seriously limits the capacity of TIB fi shers to grow their businesses. For example, for a TIB fi sher to operate a primary vessel, they require a certifi ed engineer on board (Maritime Safety Queensland 2005). TIB fi shers may not be able to fi nd an islander with the appropriate certifi cation who is willing and available to work for them. In that way, they are prevented from operating a primary boat with tenders. This is one example of how TIB fi shers are disadvan-taged by not having access to the national labour market. More generally, TIB fi shers stand to gain by having access to a larger pool of skills, a broader experi-ence base, more funds and more equipment than is currently available in the TIB sector.

diving constraints

In the lobster fi shery, free diving produces smaller catches than hookah. Hookah bans, including the spring tide closure, therefore imposes costs on active TIB fi shers. These TIB fi shers have to make more trips and consume more fuel, in order to catch the same number of lobsters. This increases their costs and thereby reduces their income.

Some TIB fi shers are scuba divers. For those with scuba equipment, it may be less costly for them to use scuba to fi sh rather than also buying and maintaining hookah. This may be particularly the case for occasional lobster fi shers who do not fi sh often enough to justify the cost of hookah. Fishers should be free to decide what equipment they employ in diving, subject to the need to protect the reef environment.

38


regional economic development policies

Fishers are affected not only by fi sheries management policy, but by wider regional policies, including competition policy and CDEP policy.

competition

In each of the remote island communities of the Torres Strait, there is usually only one retailer who sells both fuel and other fi shing requirements. There is also usually only one processor to whom fi shers can sell their catch. It is worth investigating whether there are any impediments to competition in these remote communities. It is noted that fi shing vessels with a buyers licence may provide useful competition to the benefi t of TIB fi shers.

CDEP policy

CDEP is infl exible in that TIB fi shers cannot earn a dollar more than $22 525 a year from fi shing (or other employment) without losing all of their CDEP income. Yet up to this cutoff point, there is no reduction in CDEP. This deters fi shers who wish to grow their business beyond the cutoff. It may also encourage underreporting of income.

In other income support programs — for example, family tax benefi t payments — payments from the program are phased out gradually, as the recipient’s external income rises. The viability of adopting a similarly fl exible approach to CDEP in the Torres Strait should be considered.

steps that islander fi shers can takeAlmost all TIB fi shers are highly skilled and experienced fi shers. However, most could improve their fi nancial position by managing their fi nances more effectively, by learning to better maintain their fi shing equipment, and by taking steps to improve the price they receive for their catch. Active TIB fi shers have additional options for lowering their costs and may also benefi t by working with experienced, nonislander fi shers.

39


business management

Most TIB fi shers would be better off fi nancially if they improved their business management. In general, good account keeping is required for business managers to be able to plan and budget effectively. A large percentage of TIB fi shers, over half of those surveyed, admitted to not keeping receipts or written records (fi gure T). It is highly likely that many TIB fi shers are failing to claim legitimate business expenses as tax deduc-tions, because they have not kept a record of expenditure on equipment, fuel, travel, bait, maintenance or other business expenses. They may also be at greater risk of losing CDEP, if the effect of not claiming legitimate business expenses is to overstate their income. Furthermore, if they register their business for GST and the fuel tax credit in 2008, they will need to keep receipts in order to claim back GST and the fuel tax credit.

Even fewer TIB fi shers reported having a business plan (fi gure U). In contrast, almost all TVH fi shers reported having a business plan. This difference is partially explained by the fact many TIB fi shers only fi sh occasionally. A business plan may therefore not be so relevant. However, for large TIB fi shers a business plan is important to help them achieve their fi nancial goals.

Acquiring information is another key facet of business management. As discussed previously, because the islands of the Torres Strait are remote, supplies are limited and hence more expensive. Good infor-mation can offset this disadvantage to some extent by informing fi shers

50

25

75

%

nonislanderislander

businesses with book keeping skills – Torres Strait

fig T

50

25

75

%

nonislanderislander

businesses with a current business plan – Torres Strait

fig U

40


about alternative supply sources and comparative prices. For example, TIB lobster fi shers may be able to source hookah equipment from Cairns, as many TVH fi shers already do.

To this end, the internet is one medium for fi shers to check what is available on the mainland or on Thursday Island, and thereby ensure that they get the best deal on, for example, a boat motor. However, few TIB fi shers have access to the internet, partly because they lack basic computer skills. Of the fourteen

TIB fi shers who were surveyed for this study, eleven responded that they had no computer skills (fi gure V).

maintenance skills

Maintenance skills are critical for a successful fi shing business, especially in remote regions where services are often unavailable or more expensive than on the main-land. All TVH fi shing businesses that were surveyed were equipped with the skills to maintain their boat and critical equipment (fi gure W). Explaining the importance

of maintenance skills, TVH fi shers pointed out that a failure of critical equipment would require returning the boat to port or even back to the mainland, if the crew did not have the capacity to remedy the failure.

Most but not all TIB fi shers were also skilled in maintaining their own equip-ment. Importantly, almost 30 per cent of surveyed TIB fi shers did not have maintenance skills. When they experienced a breakdown, they had to borrow fi shing equipment in order to continue fi shing until they could afford the repair bill. Further, TIB

50

25

75

%

nonislanderislander

businesses with computer skills – Torres Strait fig V

50

25

75

%

nonislanderislander

businesses with skills to maintain boat and equipment – Torres Strait

fig W

41


fi shers often have to travel or pay high freight costs to access maintenance services on a larger island such as Thursday Island. Given the importance of maintenance skills for fi shing businesses, large TIB fi shers would be able to reduce their repair costs and improve their fi shing opportunities if they learned to better maintain their own equipment.

price

At the other end of the supply chain, TIB fi shers can take measures to raise the price they receive for their catch.

Most mackerel fi shers advised that time is critical for ensuring the quality of mackerel fi llets. The fi sh should be cleaned, fi lleted and placed in the snap freezer within a few hours of being caught. It is also critical to keep the fi sh on ice if it will be more than a few hours before it can be snap frozen.

There is also scope to improve the quality of a coral trout fi llet. After bleeding the fi sh, fi shers can preserve the distinctive colouring of the fi sh by placing it immedi-ately in cold brine. A well coloured fi sh attracts a higher price from buyers on the mainland.

There may be an opportunity for TIB lobster fi shers to achieve a higher price for a lobster by selling live lobsters in place of tails. For TIB fi shers residing away from Thursday Island, this would require careful coordination with a buyer in Cairns or on Thursday Island, to ensure that live lobsters are fl own promptly to the buyer for grading and sale. Importantly, the price paid for a live lobster depends on its condition. Buyers advise that the condition of a live lobster depends a lot on how carefully the lobster has been handled during catching as well as during transit. At the extreme, any lobsters that die would not be paid for. Therefore, if a lobster is weak — for example, because it is moulting — the fi sher may be better off tailing it than risk losing everything if it dies.

other options for active TIB fi shers to reduce costs

While most TIB fi shers are occasional fi shers, others are active fi shers who fi sh frequently. There is scope for these more active fi shers to benefi t from considering the processes followed by TVH fi shers.

42


fuel

Fuel is one of the largest components of TIB fi shing costs. TIB fi shers pay consider-ably more for fuel per kilogram of whole fi sh caught than do TVH fi shers (fi gure R). There are at least two ways that TIB fi shers may be able to reduce their fuel bill without reducing catch — fi rst, by increasing fuel effi ciency and, second, by forming a cooperative to buy in bulk.

The use of two stroke motors is common among TIB fi shers. TIB fi shers may consider upgrading to a four stroke motor. Although the upfront cost is greater, fuel consumption is much less.

For TIB fi shers who are considering operating on a scale comparable with the average TVH fi sher, it may be worth switching to a diesel motor. A fi sher may need to fi sh intensively to justify the considerably higher upfront cost over a petrol motor, but diesel motors are much cheaper to run. Almost all TVH fi shers use diesel to fuel their primary boat, and their mackerel dories are also equipped with diesel motors.

For mackerel fi shers it is also worth noting that a dinghy, such as a wahoo, is not an effi cient mode of fi shing for mackerel. TVH fi shers employ mackerel dories that are specially designed to troll for mackerel and are therefore very fuel effi cient and effective.

Invariably, TVH fi nfi sh fi shers reported buying all fuel and other inputs from Cairns, and having it freighted to the Torres Strait. They were able to do this by having an account with suppliers in Cairns and by ordering in bulk. They often also paid an agent in Cairns to assist them. A single TIB fi sher may not be large enough to adopt this approach on their own. However, by forming a cooperative, larger TIB fi shers could take advantage of the cost savings of buying in bulk, including by freighting supplies from Cairns. To freight from Cairns, such a cooperative would require an account with retailers in Cairns and with a mothership company. Another option may be to buy fuel in bulk from the fuel barge at Yorke Island.

gear and equipment

Gear and equipment can also be expensive to buy in the Torres Strait, or can be diffi cult to fi nd in the fi rst place. For example, TVH fi shers advised that equipment such as hookah gear and boat motors cost considerably more in the Torres Strait than on the mainland. They therefore purchase equipment in Cairns and if they cannot pick it up, they have it freighted up — for example, to Thursday Island. TIB

43


fi shers could similarly source equipment from Cairns when the cost savings justify the additional expense of freight or transport.

operate with primary boat and tenders

Two or more TIB fi shers who are operating on a large scale could merge their operation. They may fi nd it worthwhile to operate with a primary boat for transport and accommodation, and tenders for catching fi sh. This would only be viable with a processing licence that allows fi shers to snap freeze their catch rather than making daily trips back to shore. Such a model opens up the additional option of selling fi sh to a wider variety of markets, rather than being restricted to the home island.

partner with experienced nonislander fi shers

There may be opportunities for some TIB fi shers to work with experienced nonis-lander fi shers. Nonislander fi shers could bring vital skills and possibly fi nances and equipment to a TIB business, improving the profi tability of the TIB operation. Alternatively, TIB fi shers could work on a TVH vessel — for example, on a short term placement subsidised by the Australian Government’s Structural Training and Employment Program (DEWR 2006). TIB fi shers could benefi t, for example, by learning fi rst hand how to manage a business or how to maintain equipment such as a snap freezer. Nonislander fi shers could benefi t by diversifying their fi shing income or by accessing additional labour resources.

opportunities to improve skills

For TIB fi shers to be able to implement the above recommendations, they may need to develop their skills. There are a number of government and nongovern-ment programs designed to improve the skills of indigenous people, including of Torres Strait Islander fi shers. Indigenous Business Australia, for example, is a government program that offers fi nancial or training assistance to indigenous business people to improve their business. Another example of a government program is the Indigenous Small Business Fund, which provides funding to commu-nity based organisations to help community members improve their business skills. Alternatively, Indigenous Community Volunteers is a nongovernment program that responds to community requests by providing skilled volunteers to develop the skills of community members. Indigenous Community Volunteers, for example, have in the past organised a project to develop mechanical and maintenance skills. These and many other such programs are detailed in appendix B.

44

conclusion

Commercial fi shing cannot replace the CDEP income received by most TIB fi shers. But through careful management, TIB fi shers can achieve greater fi nancial inde-pendence.

the island wayTo understand what changes are needed to improve TIB fi shing income, it is important to fi rst understand that TIB fi shers operate a very different enterprise to TVH fi shers. While most TVH fi shers employ a large primary boat equipped with accommodation, processing facilities and tenders in tow, most TIB fi shers rely on a single small dinghy. This very different setup shapes the way that fi shers operate. Whether a fi sher is catching tropical rock lobster or fi nfi sh, the catch must be processed and in the snap freezer soon after it is caught in order to be of a high quality. A TVH fi sher can stay out for days catching fi sh because their boat is equipped with processing facilities. But a TIB fi sher must return to shore almost daily to unload their catch. This extra travel increases the fuel costs of a TIB fi sher, and reduces the time spent fi shing.

The lack of processing facilities on TIB boats helps to explain why TIB fi shers receive a lower price for their catch than TVH fi shers. TVH fi shers supply a snap frozen product to an exporter or to the domestic fi sh market. TIB fi shers on the other hand supply a wet product to a processor — for example, a community freezer. More needs to be done with the wet product before it is ready for export or for domestic consumption. Given that TIB fi shers are supplying a less processed product, it is to be expected that they will receive a lower price.

However, it is not a solution for TIB fi shers generally to increase their scale of operation and add processing capacity to their business. The status of the fi sheries would not sustain fi fty to a hundred new large scale fi shers. Further, most TIB fi shers would not have a credit rating or the collateral to borrow a quarter of a million dollars for a primary boat, freezers, tenders and other equipment.

Scale is not the only impediment facing TIB fi shers. Both TIB and TVH fi shers are confronted by the problems of operating in a remote region. On the remote or

6

45


small islands of the Torres Strait, there is usually at best only one fuel outlet and one retailer of fi shing equipment. Also, there is little in the way of repair services and so fi shers have to do their own repairs, borrow equipment or miss out on fi shing. Finally, their remote location combined with the fact that TIB fi shers supply a wet product means that TIB fi shers have few options for selling fi sh.

TVH fi nfi sh fi shers get around these problems by buying fuel and equipment in Cairns and having it freighted to where they are operating. Most employ an agent to facilitate this. The same agent takes delivery of their catch and arranges the sale.

TVH lobster fi shers operate mainly in the Western and Central reefs of the Torres Strait and can therefore regularly buy supplies from Thursday Island and sell their catch on Thursday Island. Some also use the mothership service.

options for improving the economic returns of TIB fi shersThe question then becomes how to overcome the impediments of scale and remoteness, and improve the economic benefi ts of TIB fi shers. In answer, there are many ways in which the economic benefi ts of TIB fi shers can be enhanced, as outlined in table 7. Government has a critical role to provide TIB fi shers with the opportunity to increase their profi ts from fi shing. But fi shers themselves will only profi t more from fi shing to the extent that they improve their business.

table 7 options for improving the economic benefi ts of islanders from fi shing

who benefi ts? government policy actions fi sher actions

all islander fi shers 1 manage total allowable catch to 1 keep expense receipts increase stock 2 maintain equipment themselves 2 identify any impediments to competition

active islander 3 consider options for a more fl exible 3 budget and plan fi shers CDEP payment schedule 4 deliver live product 4 under an output quota option: 5 form cooperatives to buy fuel • remove limits on fi shing methods and other supplies in bulk • allow islander businesses to use 6 consider model of primary nonislander labour boat with tenders in tow

46


Some of these steps are useful to all fi shers, even those who are content to fi sh on occasional weekends, whereas other recommendations are only viable for more active or large scale fi shers. Table 7 presents these steps with different fi shers in mind.

government policies

Government policies can greatly enhance the income earning opportunities of TIB fi shers. However, policy must be guided by clear objectives. For example, under the new catch management scheme, the government will have direct control over the size of the catch. Total allowable catch can therefore be set to maximise the economic yield from the fi sheries. However, this could confl ict with other potential objectives — for example, supporting the access of all TIB fi shers to the fi shery. It is critical to consider the implications of alternative management arrangements and to understand the tradeoffs involved.

TIB fi shers pay high prices for fuel. The same is true of other supplies, such as bait and fi shing gear. Identifying and then addressing any impediments to increased competition on these small or remote islands may help to bring prices down.

The current income threshold for CDEP may deter the effort of TIB fi shers who are earning close to the cutoff of $22 525 in a year. Under current arrangements, a fi sher can earn $22 525 a year from fi shing without losing CDEP income. But if the fi sher earns $22 526, the fi sher loses all CDEP income. The viability of addressing this issue needs to be explored. A possible solution is to reduce CDEP payments gradually as the recipient’s external income rises — as is done, for example, for family tax benefi t.

With the introduction of direct catch controls, the current set of ineffi cient input controls become redundant. Input controls increase fi shers’ costs. For example, removing the limits on how and when lobster fi shers can dive would increase their catch rate. Again, policy decisions need to be made in the pursuit of clear policy objectives.

Further, by giving islanders the freedom to employ nonislanders, the government would provide active TIB fi shers with the opportunity to improve their profi ts. TIB fi shers who wish to grow their business are currently prevented from acquiring the skills they need from the broader Australian labour market. Currently, they may only employ other islanders, cutting them off from experienced nonislander fi shers who could otherwise bring the skills, supply chain network and additional capital that they require.

47


fi sher actions

All fi shers will benefi t from keeping expense receipts. When it comes to paying income tax, receipts will help fi shers to claim all fi shing costs. The larger the busi-ness, the more important it is to keep receipts or written records. It may be that fi shers and island communities generally would benefi t from accessing income tax assistance each year — for example, through one of the organisations listed in appendix B.

The ability to maintain a boat motor and fi shing equipment, such as hookah, is critical when operating in a remote region. Yet around a third of TIB fi shers lacked such skills. Maintenance skills may be acquired through working with another who has these skills, or through training arranged, for example, by an organisation listed in appendix B.

For active fi shers, it is important to budget and to identify business goals and how best to achieve those goals. Further, it is useful to access information on prices, to avoid paying too much. All these business skills can be acquired through training provided by the organisations listed in appendix B, or by working with someone who is already experienced in these skills.

Fishers receive a higher price for a lobster if they sell it live rather than as a tail. However, there is the additional diffi culty of preserving the lobster in good condi-tion until sale. Apart from care during catching and carrying the lobster, reliable and timely transport is required to take the fi sh immediately to the buyer. Some buyers may be prepared to arrange a fl ight from an island where many fi shers are catching live cray of a high standard.

Active fi shers may fi nd it worthwhile to form a cooperative that buys fuel and other supplies in bulk. One option is to buy supplies in Cairns or on Thursday Island and have it freighted to their island. The cooperative would need to have an account with retailers and would need to order in bulk. This is something few individual TIB fi shers could do on their own.

Two or more TIB fi shers who are operating on a large scale could merge their operations. They may fi nd it worthwhile to operate with a primary boat for trans-port and accommodation, and tenders for catching fi sh. This would be viable only with a processing licence that allows fi shers to snap freeze their catch rather than making daily trips back to shore. Such a model opens up the additional option of selling fi sh at the best available price, instead of accepting whatever price is offered on the home island.

48


Finally, TIB fi shers could also look to engage with experienced TVH fi shers. For example, subject to a change in government policy, a TIB fi sher could contract the services of an experienced nonislander fi sher to provide the skills required in the TIB fi shing business. An alternative option may be for a TIB fi sher to enhance their skills by working in a TVH business, for example as crew or as part of a Govern-ment funded Structural Training and Employment Program.

49

appendix

survey method and defi nitions

collecting survey data

TVH sector

ABARE surveys of commercial fi shery are designed and samples selected on the basis of information supplied by the Australian Fisheries Management Authority (AFMA). This information includes data on the size of the catch, fi shing effort and boat characteristics.

Because it is not possible to survey all the boats in a fi shery, a sample of boats is selected based on their ‘representativeness’. For the purposes of this study, boats are classifi ed into subgroups based on the size of operations (typically small, medium and large producers). A number of representative boats from each subgroup is then targeted for the survey.

The owners of the sample boats are contacted by ABARE and face to face interviews are conducted, or failing that, interviews are conducted by telephone. Interviewers ask for information on the physical and fi nancial details of the fi shing business.

In general, information is collected for the preceding two fi nancial years.

TIB sector

Less information was available for the TIB fi shing sector when this survey was undertaken. Complete and up to date catch and address lists were diffi cult to come by. However, with the assistance of the Torres Strait Regional Authority and other data sources, a number of islands were identifi ed as being where most fi shers lived. From these, a sample was chosen that was representative of the geographic spread of islands. The islands chosen were Thursday Island, Yam Island, Badu Island, Murray Islands, Darnley Island and Yorke Island. Commer-cial fi shers on these islands were identifi ed again with the assistance of the Torres Strait Regional Authority, together with community councils, community freezers and community fi sher representatives. The information collected in the face to face interviews was similar to that in the TVH fi shing surveys.

A

50


apportioning boat receipts and costs among fi sheriesMany boats operate in more than one fi shery. Many TIB boats, for example, operated in both the fi nfi sh and the tropical rock lobster fi sheries, and indeed in other Torres Strait fi sheries. To provide estimates of the economic returns from each fi shery, it is necessary to apportion boat receipts and costs among the fi sheries.

Apportioning fi shing receipts is straightforward as information on sales is available for each species. However attributing the costs of a fi shing operation to a fi shery is more complicated. In this report, costs have generally been apportioned to a fi shery based on the proportion of total fi shing revenue associated with that fi shery. The only exception is that bait is obviously not used in the tropical rock lobster fi shery and so bait costs are allocated solely to the fi nfi sh fi shery.

Several TVH boats operated in fi sheries outside the Torres Strait as well as in the Torres Strait. However these operators were able to provide estimates of costs and revenue for the Torres Strait fi shery alone.

sample weightingThe estimates presented in this report are calculated by appropriately weighting the data collected from each sample boat and then using these weighted data to calculate estimates for the population. This is done separately for each sector (TIB and TVH) within each fi shery (tropical rock lobster, fi nfi sh). Sample weights are calculated such that the weights summed represent the target population, and the sum of the weighted catch of the sample equals the totals supplied by AFMA. Technical details of the method of weighting used are given in Bardsley and Chambers (1984).

reliability of estimatesOnly a portion of the estimated population was sampled. Estimates derived from these boats are likely to be different from those that would have been obtained if information had been collected from a census of all boats. How closely the survey results represent the population is infl uenced by the number of boats in the sample, the variability of boats in the population and most importantly the design of the survey and the estimation procedures used.

51


To give a guide to the reliability of the survey estimates, measures of sampling variation have been calculated. These measures, expressed as percentages of the survey estimates and termed ‘relative standard errors’, are given next to each estimate in parentheses. In general, the smaller the relative standard error, the more reliable the estimate.

use of relative standard errors

These relative standard errors can be used to calculate ‘confi dence intervals’ for the survey estimate. First, calculate the standard error by multiplying the rela-tive standard error by the survey estimate and dividing by 100. For example, if average total cash receipts are estimated to be $100 000 with a relative standard error of 6 per cent, the standard error for this estimate is $6000.

There is roughly a two in three chance that the ‘census value’ (the value that would have been obtained if all boats in the target population had been surveyed) is within one standard error of the survey estimate. There is roughly a nineteen in twenty chance that the census value is within two standard errors of the survey esti-mates. Thus, in this example, there is approximately a two in three chance that the census value is between $94 000 and $106 000, and approximately a nineteen in twenty chance that the census value is between $88 000 and $112 000.

nonsampling errors

The values obtained in a survey are affected by errors other than those related directly to the sampling procedure. For example, it may not be possible to obtain information from certain types of boats, respondents may provide inaccurate information or respondents may differ from nonrespondents in a variable being surveyed.

ABARE’s experience in conducting surveys has resulted in procedures aimed at minimising nonsampling errors. However, when drawing inferences from estimates derived from sample surveys, users should bear in mind that both sampling and nonsampling errors can occur.

52


defi nitions of key variablesTotal cash receipts represent returns from the sale of fi sh, nonfi shing activities including charter operations, and other sources (insurance claims and compensa-tion, endorsements leased out, government assistance and any other revenue) in the fi nancial year.

For the majority of operators, this information is readily available from their own records. However, different operators record their fi shing income in different ways. In some cases, such as where fi sh are sold through a cooperative, some operators may only record the payments received from the cooperative. These payments may be net of commissions and freight as well as net of other purchases made through the cooperative.

In other cases, the crew is paid directly for the catch by the cooperative or agency and the owner’s fi nancial records might include only the amount of revenues they received after the crew’s share had been deducted.

For these reasons, operators are asked to provide a breakdown of the total catch of their boat and an estimate of the total value of that catch. For consist-ency, marketing charges may need to be added back into fi shing receipts for some boats to give a gross value. Where this is necessary these selling costs are also added into the cost estimates to offset the new revenue fi gure. Receipts also include amounts received in the survey year for fi sh sold in previous years.

Total cash costs include the payments made for both permanent and casual hired labour and payments for materials and services (including payments on capital items subject to leasing, rent, interest, licence fees and repairs and maintenance). Capital and household expenditures are excluded.

Crew costs are usually the highest cash cost in a TVH fi shing operation. Crew costs include wages and the cost of labour involved in boat related aspects of the fi shing business, such as crew or onshore administration costs, but do not cover the cost of onshore labour involved in processing the fi sheries products. Crew costs also does not include the value of unpaid owner and family labour.

Boat cash income is the difference between total cash receipts and total cash costs.

53


Depreciation costs allow for the decline in the value of capital over time through use and aging.

Boat business profi t is boat cash income less depreciation.

Capital is the value placed on the assets employed by the owning business of the surveyed boat. It includes the value of the boat, hull, engine and other onboard equipment (including gear). It also includes the value of onshore equipment used for the business, for example boat trailers, tools and vehicles. Estimates of the value of capital are based on the market value of capital and are usually obtained at interview.

54

B appendix

government programs to develop the skills of indigenous Australians

Advancing Agricultural Industries program

descriptionThis program helps agricultural, fi sheries and forestry industries develop their self reliance, resilience and ability to effi ciently manage change. The program’s four elements are:• industry stocktakes (assessment of key issues for the industry)• matching grants for actions that improve some aspect of the industry• advancing agriculture fund (Agfund) provides matching grants to help producers address industry issues • rural leadership development of young indigenous people.

eligibilityEligibility varies for the different program elements.Industry organisations and groups may apply for:• industry stocktakes• matching action grants• matching Agfund grants.Indigenous people, among others, are eligible to apply for rural leadership development.

contact detailsAustralian Government Department of Agriculture, Fisheries and Forestrytelephone: 1800 136 100 (AgFund) 02 6272 5010 (Industry Stocktakes)www.daff.gov.au/agriculture-food/aaa/advancingindustries

Business Funding Scheme (BFS)

descriptionThis scheme promotes the economic independence of Torres Strait Islander and Aboriginal people. The scheme offers low interest business loans and guarantees in order to assist in acquiring, owning and developing successful commercial enterprises.

eligibilityThe scheme is open to Torres Strait Islander and Aboriginal individuals (including partnerships) and corporations within the Torres Strait and the Northern Peninsula area. Applicants must hold 20 per cent cash equity and adequate security for the loan. They should also be able to demonstrate that they have an aptitude for the management of their business. If required, TSRA assists clients to undertake additional training to improve their business management skills.

contact detailsTorres Strait Regional Authority, TSRA Economic Development Sectiontelephone: 07 4069 0700 fax: 07 4069 1879 www.tsra.gov.au

continued...

55


government programs to develop the skills of indigenous Australians continued

Community Economic Initiatives Scheme (CEIS)

descriptionThis scheme provides grants to Torres Strait Islanders and Aboriginal organisations for the establishment and/or expansion of commercial income generating ventures.

eligibilityTorres Strait Islander or Aboriginal organisations within the Torres Strait and the Northern Peninsula area.

contact detailsTorres Strait Regional Authority www.tsra.gov.au

Community Training program (CTP)

descriptionCommunity organisations can apply for funds to undertake training in a range of areas including administration, fi nancial management, and trade based skills. Types of training can include formal courses, on the job training, a mixture of both, or employment by tradesmen assuming responsibility for apprenticeships.

eligibilityTorres Strait Islander or Aboriginal organisations within the Torres Strait and the Northern Peninsula area.

contact detailsTorres Strait Regional Authority www.tsra.gov.au

FarmBis program

descriptionFarmBis fi nancial support helps fi shers, among others, to gain access to quality learning to improve their business and natural resource management practices. The course categories available within the AAA FarmBis program are:• people management • marketing• fi nancial management • production management• general business management • natural resource management/biodiversity

eligibilityEligible participants are:• primary producers (including wildcatch fi shers)• indigenous land managers• rural land managers

contact detailsQueensland Rural Adjustment Authoritytelephone free call: 1800 623 946 fax: 07 3032 [email protected] Qld: www.farmbis.qld.gov.au Aust: www.farmbis.gov.au

continued...

56



Farm Management Deposits scheme

descriptionThis scheme is a tax based risk management tool designed to assist eligible primary producers to manage cash fl ow. An FMD allows taxable primary production income from profi table years to be set aside for subsequent drawdown in low income years. An FMD must normally be held for a minimum of 12 months to realise the associated tax benefi ts.

eligibilityOnly applicable to income earned through primary production, including fi shing. For further eligibility requirements check the website.

contact detailsAustralian Government Department of Agriculture, Fisheries and Forestrywww.daff.gov.au/fmds

Indigenous Business Australia (IBA) enterprises

descriptionIBA enterprises offers assistance to develop a business idea, to start a new business or to improve an existing business. Assistance is given through business support services and business fi nance.IBA enterprises can also help applicants obtain relevant training to help with managing and operating a business through economic development initiatives.

eligibilityApplicants must be of Aboriginal or Torres Strait Islander origin. Further eligibility requirements differ between the three programs. See the website for further details on eligibility requirements.

contact detailsAustralian Workplacetelephone: 1800 804 754www.iba.gov.au and www.workplace.gov.au/workplace/Individual/IndigenousAustralians/IBAEnterprises.htm

Indigenous Capital Assistance Scheme (ICAS)

descriptionICAS provides the following:• access to fi nancial support for Indigenous businesses• cheaper interest rates and fees• overdraft options and loans for businesses and• fi nance for capital items.

eligibilityEligibility criteria is available from the website,

contact detailsAustralian Workplacetelephone: 1802 102 (indigenous employment line) www.workplace.gov.au/icas

continued...

57



Indigenous Community Volunteers (ICV)

descriptionIndigenous Community Volunteers coordinates projects to provide Indigenous Australians with new skills. Communities, organisations and individuals identify their skills needs and ICV develops projects to meet these needs. Examples of previous skills provided through an ICV project include:• engineering• accounting• assistance with business plans• fi nancial processes• planning/feasibility/small business management• small business operation and effi ciency• computer skills• mechanics and motor maintenance

eligibilityProjects generally run between 2 weeks and 6 months.Communities need to provide accommodation for the volunteers and a cultural mentor during their stay.

contact details telephone toll free: 1800 819 542 fax: (02) 6122 6470 email: [email protected] develop a project with ICV, follow the steps on the website: www.icv.com.au/communities/index.html mail: Indigenous Community Volunteers, GPO Box 2213, Canberra ACT 2601

Indigenous Small Business Fund (ISBF)

descriptionThe Indigenous Small Business Fund (ISBF) offers funding to indigenous community based organisations to assist Indigenous people to identify and develop indigenous business opportunities, start a new business, develop good business skills and/or expand existing businesses.

eligibilityIncorporated indigenous community based organisations that return profi ts to the community are eligible to apply. Individuals can not apply for this funding, but can apply for assistance through commercial lending services, Indigenous Business Australia (IBA) Enterprises, and the Indigenous Capital Assistance Scheme (ICAS).

contact detailsAustralian Workplacetelephone: 1802 102 (Indigenous employment line) www.workplace.gov.au/workplace/Individual/IndigenousAustralians/IdigenousSmallBusinessFund

continued...

58



Indigenous Youth Mobility program

descriptionThe program supports the development of local economic and employment opportunities for young indigenous Australian living in remote areas. They can participate in accredited training and/or higher education in major centres in order to increase their employment opportunities and to support the economic development of remote communities.

eligibilityApplicants must be indigenous people aged between 16 and 24, be from remote areas and have the support of their families to relocate. Further information is available from the website.

contact detailsAustralian Government Department of Education, Science and Training.telephone training and employment services providers:• Career Employment Australia, Cairns: 07 4051 2212• Mission Australia, Darwin: 08 8945 6406 www.dest.gov.au/sectors/indigenous_education/programmes_funding/programme_categories/[email protected]

Regional Partnerships program

descriptionThis program funds projects that help communities:• to provide opportunities for economic and social participation• to improve access to services• to plan their future• to make structural adjustments

eligibilityThose eligible for funding include nonprofi t organisations, private enterprise businesses, registered charities, cooperatives, local government bodies, territory governments, community councils (Indigenous councils), Regional Development Boards, and non Departmental government agencies.Those not eligible for funding include individuals, organisations that are not incorporated under relevant Commonwealth or state legislation, Area Consultative Committees, Commonwealth or state government departments and lobby groups.

contact detailsDepartment of Regional and Transport Services north Queensland contact details: telephone: 07 4750 2777 fax: 07 4750 2707www.regionalpartnerships.gov.au

continued...

59



Rural Financial Counselling Service (RFCS)

descriptionThe RFCS program provides grants to state, regional and community level organisations so that they can provide free and impartial rural fi nancial counselling to fi shers, among others, who are suffering fi nancial hardship and who have no alternative sources of impartial support. Rural fi nancial counsellors help clients:• to identify fi nancial and business options• to negotiate with lenders• to be informed about government and other assistance and• by referring clients to suitable providers for additional help.

eligibilityCheck the website for details on eligibility requirements.

contact detailsAustralian Government Department of Agriculture, Fisheries and Forestrytelephone: 1800 686 175 www.rfcs.gov.au

60


references

ABS (Australian Bureau of Statistics) 2002, Indigenous Profi le 2001, cat no. 2002.0, Census Community Profi le Series, Canberra.

AFMA (Australian Fisheries Management Authority) 2005, Draft Assessment Report: Torres Strait Finfi sh Fishery, Canberra, March

—— 2007, AFMA data, Canberra (unpublished)

Altman, J.C., Arthur, W.S. and Bek, H.J. 1994, Indigenous Participation in Commer-cial Fisheries in Torres Strait: A Preliminary Discussion, Discussion Paper no. 73/1994, Centre for Aboriginal Economic Policy Research, Australian National University, Canberra.

Arthur, B. 2005, Torres Strait Islanders and Fisheries: An Analysis of Economic Development Programs, Centre for Aboriginal Economic Policy Research, Australian National University, Canberra.

ATO (Australian Tax Offi ce) 2007, In Fuel Schemes Essentials: Energy Grants Credits Scheme, Canberra (www.ato.gov.au/businesses/pathway.asp?pc=001/003/044).

Begg, G.A., Chen, C.-M., O’Neill, M.F., Rose, D. and Helmke, S. 2006, Stock Assessment of the Torres Strait Spanish Mackerel Fishery, Technical Report No XX, CRC Reef Research Centre, Townsville.

DEH (Australian Government Department of the Environment and Heritage) 2004, Assessment of the Torres Strait Tropical Rock Lobster Fishery, Canberra.

—— 2005, Assessment of the Torres Strait Finfi sh Fishery, Canberra, December.

IAAP (Independent Allocation Advisory Panel) 2006, Advice on the Appro-priate Basis for the Allocation of Fishing Concessions in the Non-Community Commercial Sector of the Torres Strait Finfi sh Fishery: Final Report to Torres Strait Protected Zone Joint Authority, Canberra, October.

Larcombe, J. and McLoughlin, K. (eds) 2007. Fishery Status Reports 2006: Status of Fish Stocks Managed by the Australian Government, Bureau of Rural Sciences, Canberra.

Mapstone, B.D., Tobin, A., Jones, A. and Begg, G.A. 2003, A Review of Reef Line Fishing in the Eastern Torres Strait, CRC Reef Research Centre, Townsville.

61


Maritime Safety Queensland 2005, In Minimum Licence Requirements for Fishing and Trading/Commercial Ships in Queensland, Brisbane.

McLoughlin, K. (ed) 2006. Fishery Status Reports 2005: Status of Fish Stocks Managed by the Australian Government, Bureau of Rural Sciences, Canberra.

Newton, P., Wood, R., Galeano, D., Vieira, S. and Perry, R. 2007, Fishery Economic Status Report, ABARE Research Report 07.14 prepared for the Fish-eries Resources Research Fund, Canberra.

PZJA (Protected Zone Joint Authority) 2006, Tropical Rock Lobster Fishery 2006 Management Arrangements, Stakeholder Information Paper, Canberra, August.

—— 2007a, website, Canberra (www.pzja.gov.au/).

—— 2007b, In Future Operating Environment for the Torres Strait Tropical Rock Lobster Fishery, Canberra.

—— 2007c, PZJA Out of Session Decisions, Canberra (www.pzja.gov.au/notices/notices/2007/n20070607.htm)

RACQ 2007, Fuel Price Reports, Brisbane (www.racq.com.au/cps/rde/xchg/racq_cms_production/hs.xsl/News.Fuel.Prices_Found_news_fuel_pricere-ports_ENA.html.htm)

Rose, R. 2002, Effi ciency of Individual Transferable Quotas in Fisheries Manage-ment, ABARE Report Prepared for the Fisheries Resources Research Fund Canberra, September.

Taylor, S., Prescott, J. and Kung, J. (eds) 2004. A Guide to Management Arrange-ments for Torres Strait Fisheries, Australian Fisheries Management Authority, Canberra.

Ye, Y., Dennis, D.M., Skewes, T.D., Tarant, T.J., Haywood, M.D.E., Brewer, D.T., Wassenberg, T.J., Chetwynd, D., McLeod, I.M. and Donovan, A.G. 2006, Sustainability Assessment of the Torres Strait Rock Lobster Fishery, CRC-TS Project Task Number 13, CSIRO, Cleveland.

62

Asia Pacifi c Economic Cooperation Secretariat

Association of Southeast Asian Nations – secretariat

AusAid

Australian Centre for Excellence in Risk Analysis

Australian Centre for International Agricultural Research

Australian Fisheries Management Authority

Australian Greenhouse Offi ce

Australian Government Department of the Environment and Water Resources

Australian Government Department of Industry, Tour-ism and Resources

Australian Government Department of Prime Minister and Cabinet

Australian Government Department of Transport and Regional Services

CRC – Plant Biosecurity

CSIRO (Commonwealth Scientifi c and Industrial Research Organisation)

Dairy Australia

Department of Business, Economic and RegionalDevelopment, Northern Territory

Department of Primary Industries, Victoria

Fisheries Research and Development Corporation

Fisheries Resources Research Fund

Forest and Wood Products Research and Development Corporation

Grains Research and Development Corporation

Grape and Wine Research and Development Corporation

Independent Pricing and Regulatory Tribunal

International Food Policy Research Institute

Meat and Livestock Australia

Murray Darling Basin Commission

National Australia Bank

NSW Sugar

Rural Industries Research and Development Corporation

University of Queensland

Wheat Export Authority

RESEARCH FUNDING ABARE relies on fi nancial support from external organ isations to complete its research program. As at the date of this publication, the following organisations had provided fi nancial support for ABARE’s research program in 2006-07 and 2007-08. We gratefully acknowledge this assistance.

07.07

abare - data.daff.gov.audata.daff.gov.au/brs/...torres_strait_fisheries.pdf · lindsay fairhead and...

Documents