Welcome to the first PNA Quarterly Report. These reports will detail activities undertaken by the PNA Office in the previous quarter and progress on the implementation of decisions adopted by Parties to the Nauru Agreement (PNA). We will also give you a snapshot of the status of fisheries in the past quarter, and progress with respect to implementation of decisions adopted by the Parties. Since this is the first such Report, the duration reported is January - June 2011.
2010 ended with a bang with the PNA chosen by Island Business as the "Organization of the Year" in its December issue. Congratulatory messages were received and backs were patted. In May 2011, the magazine’s headline was "Trouble in PNA". While the headline suggested alarm bells, the substance of the article was not as dramatically negative as it appeared with members support of the PNA being clearly outlined while the magazine also carried a story about Papua New Guinea's withdrawal from the Treaty on Fisheries. The Treaty will effectively end on 14 May 2012.
Making news in June was the Solomon Islands – due to their Cabinet decision to close off its EEZ when it reaches its Parties Allowable Effort of days. The PNA continues to attract attention because of the nature of the group, and also because of its influence in conservation and the international tuna industry.
Dr Transform Aqorau
State of Fisheries
Most of the fishing effort in the first quarter of the year has been in Papua New Guinea, Solomon Islands and Tuvalu. Fishing effort shifted in the second quarter with effort easing in Solomon Islands, and increasing in Nauru. Solomon Islands reached its PAE in June. The Solomon Islands Cabinet agreed to close its EEZ on 16 June 2011 once its PAE was reached. At the time this Report was made, no trade had been formalized between Solomon Islands and other PNA members.
The TAE (Total Allowable Effort) for 2011 was set at 28,649 days. As of 30 June 20,074 days have been expended. It is anticipated that at current effort levels, the TAE will be reached in the first week of October.
The total number of purse seine vessels active in PNA EEZs , from 1 January 2011, excluding the 36 vessels under the US Treaty, was 226 vessels.
Implementation of the Purse Seine Vessel Day Scheme
Parties agreed to apply hard limits of 28,469 fishing days in 2011 with no transfer and carry over. Draft Business Rules for Trading, Pooling and Guidelines for the implementation of Hard Limits were agreed to by Parties at their Annual Meeting in Tuvalu. Getting legislative authority to implement the VDS and powers to close the fishery once the PAE is reached is fundamental to the efficacy of the VDS. A revised draft Business Rules for Trading has been circulated to Parties. This can be used for Parties who wish to trade. It sets out simple procedures for indirect trading between the Parties or trading through the PNAO. The draft Business Rules for Pooling is still undergoing some revisions with proposals for Parties that contribute to a pool to be paid for the days they contribute. This is still being refined.
Looking generally at trading of days with foreign fishing vessels (FFV) currently follows 3 models: a) days allocated by boat, which ensures each boat know what days it has in each zone and can manage what is a valuable "right" during the year; b) days sold per fleet means either each fleet allocates and trades days internally or each boat within the fleet is in an Olympic race to fish before the allocation is used by others; and c) access is not tied to days but limited to PAE overall. This creates a competition to fish and means high effort initially to get value or potentially pay and never fish. [before days were scarce this gave perceived better returns per day by default]. The impact of scenarios b) and c) is that with excess capacity, the TAE will be exceeded early and PNA waters closed. But note that each party makes what it would have from its days, just sooner. However, although this is potentially damaging to global processors unable to get constant supply, it supports PNA processors with domestic supply, and should enhance demand. The Total Allowable Effort (TAE) was set, based on 2004 effort levels. This may not have been scientifically based, and there remains pressure to retain these limits to protect bigeye. The fact is current skipjack stock assessments suggest the stock is now being fished down in recent times, this a reflection of the recent excess capacity largely from US treaty fleets outside the PNA scheme. PNA can review the TAE based on scientific and other criteria, but it is likely that the existing TAE is about correct for PNA overall once US treaty fleets excess effort (over 2773 days) is removed. FSMA must be rigidly capped or will just replace the US Treaty effort with unlimited effort. PNA Office is recommending retaining TAE, but allocating 2773 days of US Treaty days to Parties as extra days.
The PAE allocation process remains the subject of ongoing discussions and refinement by the Parties . The reality of where fishing occurs needs be reflected, whilst also ensuring all Parties have days to participate and develop their fisheries. PNA Office is recommending priority should be to days used to serve domestic processing, and all Parties need take financial interest in such ventures.
Regional access should be from days pooled by the Parties that want to participate. These may be multilateral PNA-wide and/or amongst Parties of common commercial interest e.g. tied to supply processors where the region has equity.
Parties may not trade or use days beyond those allocated. Parties need to standardize terms of access to avoid being compromised. If need be penalties will apply for vessels /fleets over fishing in a zone / region.
The scheme is premised on a day at sea is a day fishing, in cases where exemptions are given it only serves to reduce the value of a day in a countries’ zone, and reduces the opportunity for others to get a premium on days. Under the scheme, the only exemption outside territorial waters is for pre-advised transits.
The issue of over capacity is becoming an issue impinging on the effectiveness of the VDS: this is seeing too many boats chasing too few days. Currently each fleet / boat gets insufficient days, and they can look to compromise the scheme or they all go bankrupt. Ideally, the inefficient boats will drop out unable to pay access, but not if access is by fleet, and also as Distant Water Fishing Nations still look to retain fleet numbers it does not help. The alternative is the number of vessels is cut by PNA by limiting registry numbers. The progress on the PNA sponsorship scheme should see PNA-limited vessels eligible to participate through limiting size of PNA registry, and access by boat not fleet.
VDS Monitoring and migration to PNA Vessel Monitoring System/Vessel Day Scheme System
Parties agreed to develop a PNA VDS monitoring and information management system and to migrate to this system in 2012 using the V/Comms satellite system. In agreeing to the development of the system, Parties agreed that the new system must meet the following design requirements.
Scalable: Systems should be able to be scaled-up to accommodate new VDSs (e.g. long line VDS or a VDS for other countries)
Interoperable: Systems should be able to be linked and work together, and interface with the existing FFA systems
Transportable: Systems should be portable, i.e. able to be transferred to new service providers
Secure: Data should be protected from unauthorized alteration or viewing
Open: Systems should be developed with non-proprietary software and hardware.
Accessible: Each Party should have web-based access to all data generated on their fisheries
Transparency: The PNA Office Director (VDS System Administrator) should have access to all information necessary to monitor compliance and effectiveness of management systems.
Quick Access of Brisbane, Australia has been contracted to assist with the development of the system. Initial consultations between Quick Access and PNA representatives were held in the margins of the Management Options Workshop in Honiara in May. These consultations focused on the development of Business Rules for the system. These Rules pertain to such issue as what happens when the mobile transmission unit (MTU) of a vessel stops operating, who is responsible for rectifying the problem, who can access the data, and what levels of access can officers have.
Longline Vessel Day Scheme
Ministers endorsed the text of the Longline VDS. Monitoring and reporting on the Longline VDS is undergoing trial in 2011. It is not clear when the full implementation of the Longline VDS will come into force. If the trial in 2011 is incomplete, it may be carried over to 2012.
There have been three attachments to the PNAO by Kathy Sisior of Palau, Tiare Katatia of Kiribati and Murin Jeremiah of Nauru. The purpose of the attachments is to help build capacity to monitor the Longline VDS in particular verifying VMS data with logsheet data.
The Attachés are assigned to work for a period of between 2 to 3 weeks at a time during 2011, for the purpose of assisting the PNA Office and the LL VDS Technical Working Group in:-
- the development and refinement of counting and reporting of vessel days under the Longline VDS, in accordance with the Longline VDS Functional Specifications;
- the development and refinement of a Longline VDS Register of longline vessels licensed by the PNA members and operating under the Longline VDS, including the development of an Interim Longline VDS Register for the Trial Period;
- the maintenance and upkeep of electronic records of Longline VDS reports and the Longline VDS Register, including the Interim Longline VDS Register; and
- other tasks as may be assigned by the PNA Office and the Longline VDS TWG from time to time.
The provisional schedule of Attachés' is as follows.
|
Dates |
16 – 31 Mar11
|
9 -27 May11 |
29 June to 14 July 11 |
23 Aug to 8 Sep11 |
12-23 Sep 11 |
10-27 Oct 11 |
7-24 Nov 11 |
12 – 23 Dec11 |
|
Party |
Palau |
Kiribati |
Nauru |
FSM |
RMI |
Solomon Is |
Tuvalu |
PNG |
|
Name |
Kathy Sisior |
Tiare Katatia |
Murin Jeremiah |
tba |
Berry Muller |
tba |
tba |
tba |
Business Plan
Parties approved the development of a Business Plan. A draft of the Business Plan will be presented to the Ministers when they meet in July in Apia, Samoa. Tom McClurg of Toroa Strategy Limited is being supported with funding from the World Bank to develop the Business Plan. He has visited Papua New Guinea and Solomon Islands. He will be visiting other PNA countries as part of the consultations. Tom is being assisted by Charleston Deiye who is funded by the PNA Office with assistance from the Pacific Islands Forum Fisheries Agency (FFA).
Strategic Plan
The Parties adopted the PNA Strategic Plan developed in February in Gizo by the working group. The development of the Plan was facilitated by Jonathan Peacey who collaborated with Charleston Deiye as Chair of the Commercial, Business and Strategic Plan Technical Working Group. The Strategic Plan will be used to inform the work plan and programme of the PNA.
PNA Annual Meeting
The Parties met in Tuvalu in April for their 30th Annual Meeting and the 5th PNA Ministerial Meeting. Key decisions made at the PNA Annual Ministerial Meeting include:
INCREASE PNA SHARE OF ECONOMIC PROFITS
• PNA CREWING ON BOARD PURSE SEINE VESSELS: PNA earlier agreed on a 10% minimum Pacific Islander crew on board purse seine fishing vessels. Ministers this week agreed to establish a PNA Crewing Agency in Tarawa, Kiribati.
• COMMERCIAL AND BUSINESS ARRANGEMENTS: PNA discussed progress on options to increase the proportion of retail profits from skipjack tuna that goes to PNA countries through new arrangements with industry and retailers.
CONSERVATION AND MANAGEMENT MEASURES
• ADDITIONAL FAD CLOSURE: PNA Ministers decided to extend the current 3-month ban on setting of nets around Fish Aggregating Devices (or FADS, manmade shelters which often result in large catches of juvenile fish and by catch of other species) to 6 months each year. Details of when and how this measure will be introduced will be released later in the year.
• NEW NET MESH RULES: PNA agreed to not have nets with mesh smaller than 90mm (3.5 inch), to limit by catch and catch of juvenile tuna and prevent transfer of small mesh nets from other countries to the PNA waters. This will be phased in over two years.
• DEVELOPMENT OF A LONGLINE VESSEL DAY SCHEME: Just as the PNA has developed a Vessel Day Scheme for purse seine fishing, Ministers also noted the current trial of a Longline Vessel Day Scheme.
TAKING CONTROL OF FISHERIES MANAGEMENT
• PNA OBSERVER AGENCY: The PNA, to meet and sustain the agreed objective of 100% observer coverage on purse seine fishing vessels, agreed to establish a PNA Observer Agency to coordinate their own observers and to establish coordination hubs in Federated States of Micronesia (FSM) and Papua New Guinea (PNG) to manage travel and administrative arrangements for PNA observers.
• FISHERIES INFORMATION MANAGEMENT SYSTEM: PNA agreed to take control of its fisheries data and integrate this in an online fisheries information management system (including log sheets, observer reports, surveillance reports, license information, days allowed and other key data).
See photos on http://www.pnatuna.com/photo-galleries/pna-annual-meeting-2011-tuvalu
FSM Arrangement
Parties agreed to transfer the administration of the FSM Arrangement from the FFA to the PNA Office. The Director met with FFA Deputy Director, James Movick and Kaburoro Ruaia, Treaty Manager on the development of a Protocol to ensure the smooth transition of the FSM Arrangement. This was followed by a letter to the Director-General of FFA by PNA Chair, Sylvester Pokajam. No response had been received at the time this Report was compiled. The PNA Office Director was accompanied in these meetings by Kathy Sisior of Palau who was in Honiara at the time attending the ACPFish II Steering Committee Meeting.
PNA Observer Agency
The Commercial Adviser and PNA Chair met with MRAG on the development of the PNA Observer Agency.
A video on the PNA fishery for use by PNA Observers when they board vessels has been developed and is soon to be sent to Observers to demonstrate to Vessel Captains and Operators prior to leaving port.
Guidelines for the preparation of a Report for Parties on the development of the PNA Observer Agency have been prepared. The Report will provide Parties with options on the objectives of the Observer Agency; scope; funding and costs; timing about when it should commence; logistics including inter alia, via, travel costs; location; staffing; administrative needs such as bank accounts; infrastructure such as computers, communications and databases; scalability to meet future demands; data issues; coordination with national programs; coordination with other agencies; observer manual development; delivery model; transitional issues and emerging issues such as the Chain of Custody (COC). Other issues also include ensuring benefits are shared; and observer payment arrangements.
PNA Crewing Agency
Parties agreed to the establishment of the PNA Crewing Agency in Tarawa. The enforcement of the 10% minimum PNA nationals as crew on board purse seine vessels is effectuated through amendments to the 1st Implementing Arrangement (1IA).
PNA Skipjack Fisheries MSC Assessment
The PNA skipjack free school fishery MSC assessment has been completed. The Assessment is now undergoing review by key stakeholders.
PNA Position on WCPFC Conservation and Management Measure 2008-01
Parties met in Honiara at the margins of the Management Options Workshop in early and again in Apia at the margins of the Forum Fisheries Committee as part of ongoing discussions to establish a PNA position on this key WCPFC measure.
Communications
PNA media capacity
PNA has signed a contract for media liaison and communications support with Anouk Ride, (who formerly did media for FFA, WWF International and other international organizations and is a writer of many books and articles). Commencing in late May, Anouk has been providing support to PNA to build its public profile, and will focus on providing PNA with more coverage on radio, television and web media.
PNA headlines
PNA made headlines over the past month for Solomon Islands application of the hard limits, PNA support for the end of the US Treaty and PNA moves to seek certification of its skipjack fishery from the Marine Stewardship Council. Click the links below to read a selection of stories where PNA made headlines.
HEADLINE 1: SOLOMON ISLANDS IMPOSES HARD LIMITS ON FISHING VIA PNA VESSEL DAY SCHEME
ISLANDS BUSINESS
WE SAY: Applying hard limits on tuna catches
ISLANDS SUN
Govt makes key decision about sustainability of PNA tuna
SI PRIME MINISTER AND CABINET
Govt to close waters to sustain tuna stocks
http://www.pmc.gov.sb/headlines/gov’t-close-waters-sustain-tuna-stocks
RADIO NEW ZEALAND/EAST-WEST CENTER
Solomon Islands seeks to resume purse seine fishing
http://pidp.eastwestcenter.org/pireport/2011/May/05-25-17.htm
AMERICAN ALBACORE INDUSTRY ASSOCIATION
Solomon to close tuna fishery to foreign seiners
http://www.americanalbacore.com/solomon-to-close-its-tuna-fishery-to-foreign-seiners-this-month
HEADLINE 2: PNA BACKS END OF US-PACIFIC FISHING TREATY
SAMOA NEWS
Support our sustainable management of tuna, PNA tells US
http://www.samoanews.com/viewstory.php?storyid=26918&edition=1306749600
INTER-PRESS SERVICE/ICSF
South Pacific Tuna Treaty to lapse in rebuke to US
http://www.icsf.net/icsf2006/ControllerServlet?handler=EXTERNALNEWS&code=getDetails&id=46285
ISLANDS BUSINESS
PACIFIC UPDATE: Talagi backs PNG for a better treaty
HEADLINE 3: PNA PUSHES FOR MSC CERTIFICATION OF ITS SKIPJACK TUNA
EAST-WEST CENTER/MARIANAS VARIETY
Tuna industry balks at world certification
http://pidp.eastwestcenter.org/pireport/2011/May/05-25-15.htm
Administration
Loreen Bigler of the Marshall Islands was recruited as Corporate Services Manager. She commenced in early February.
Parties agreed to advertise existing positions. Vanguard International, a Human Resource Company in Papua New Guinea has been contacted to assist. At the time of writing the advertisements for the positions have not been made. The final shape and terms of reference of the staff will also await the conclusion of the Business Plan which should inform the structure and organization of the PNA Office.
The PNAO financial audit has been requested of Deloittes of Marshall Islands. At the time of writing the audit has not been undertaken. The PNA Office has been advised that this will be done once all the auditing currently underway by Deloittes is completed. The PNA Office has requested the office’s finances are audited as a matter of priority.
PNA Commercial
Pacifical
Pacifical continued its development work, with funding pre assessment of social standards in all PNA fish processing factories, with view to As9001, BSCI and other global standards. Possible donor funding has been discussed to implement actual social standards and supporting documentation under Pacifical in all factories in July. In marketing, Pacifical conducted European and Australasian marketing missions, which are considered a great success, 9 / 10 EU supermarket chains committed to Pacifical co- branding, with an even better response in Australasia. This both promotes PNA [both MSC and social certification] and is a potential source of premium to PNA. Australasian and Canada markets are important markets for non-EU compliant, MSC-certified fish) e.g. FSM, RMI, Tuvalu, Kiribati Flags). Commercial samples from PNA processors are now being supplied to buyers in EU, in readiness for full MSC/ Pacifical production. Under development are also materials such as films to support Pacifical’s innovative marketing campaigns and products.
Chain of Custody
PNA conducted a processing industry consultation in February with both domestic investors and Distant Water Fishing Nations [potential investors]. Meeting for 2 days in PNG, participants discussed MSC certification, Chain of Custody, and how these may be applied.
An MRAG expert was accompanied on Chain of Custody Study on seiners and transshipment vessels in PNG, FSM and RMI ports, as well as Port Moresby and Manila, in Feb 2011. His study included working with fishery and company managers and senior observers to develop a MSC chain of custody system based on existing log sheets, vessel and company records and Catch Documentation Scheme. PNA is now ready to start the next phase of observer MSC upgrade training and full-scale pilot trials in June/ July.
MSC Assessment
The MSC assessment, client action plan, and other aspects were completed in finalizing MSC report for public comment on 2 May. The PNA free school skipjack fishery scored very well in this assessment. Concerns raised by ISSF, OPAGAC/AGAC, Eurothon and comments from WWF are currently being addressed. Assessor and PNA responses to objections against the MSC assessment are released with responses being prepared to proceed in July. PNA is also developing an economic modeling of the MSC scheme and analysis of eligibility of vessels in PNA waters, for EU market, access, IUU, HACCP, CA, and others.
Other business
The following meetings were held:
- FSM Industry consultation in FSM, January
- PNA and DWFN industry consultation in Port Moresby in February, 2011
- Informal meeting with BFAR and Philippines Industry in February to discuss high seas pockets issues and effects of measures on local industry
- PNG and PNA presentations at the European tuna conference, May 2011
- PNA stand at 2-day Brussels Seafood Show in May 2011 was well received.
- First PNA investment seminar hosted in Brussels, 35– 40 attended from at least 8 nations. Several participants now reported as exploring investment in PNA.
- Possible donor funding for EU investment mission to PNA
- Exploratory talks on possible equity options and sub regional multilateral arrangements for Pago based industry
- Present overview of PNA tuna trade and trends at PNG NFA/ FIA annual Industry consultation,
- PNA mission to China in June lead by PNA chairman and WCPFC chair (see media release on www.pnatuna.com