20 March 2006
Government Fisheries Subsidies Proposal Positive but has Shortcomings
The New Zealand Seafood Industry Council (SeaFIC) supports in principle the Government's proposal tabled at the World
Trade Organisation (WTO) to remove subsidies paid to support fishing," said Chief Executive Owen Symmans today.
"The New Zealand fishing and aquaculture sectors operate without subsidies and must trade in international markets at
considerable cost disadvantages in comparison with many of our competitors. We are however therefore extremely
disappointed that the New Zealand proposal has conceded the removal of subsidies for fishery management purposes and
aquaculture. "
"SeaFIC supports the New Zealand Government taking the strongest possible position in WTO negotiations to deal with fish
subsidies that distort international trade and support unsustainable fishing. New Zealand's proposal starts correctly
from the position that all subsidies that support fishing should be illegal."
Mr Symmans commented that it is very disappointing New Zealand has felt it necessary to compromise its strong position
by proposing to exempt some subsidies that enable our competitors to compete unfairly. In particular the New Zealand
proposal would exempt subsidies that support fisheries management. He noted that the New Zealand industry pays around
$35 million dollars annually for the New Zealand fisheries management system.
"It will irritate New Zealand industry to learn that the Government's WTO proposal will enable our competitors to avoid
similar costs and make it impossible for us to seek any redress from the unfair competition that results," Mr Symmans
said.
Mr Symmans also commented that the aquaculture sector would be similarly annoyed to learn that the Government's WTO
proposal would exempt subsidies to support the aquaculture sector.
"The New Zealand Aquaculture Sector is burdened by legislation that imposes huge transaction costs that makes it all but
impossible to obtain new access to coastal space for aquaculture development and is competing against countries
providing significant subsidies to their aquaculture sector.
"The WTO negotiations are intensely political and the New Zealand industry is realistic enough to recognize that
compromise is inevitable in order to get any progress.
"Nonetheless is disappointing that in making a fundamentally strong proposal to deal with the cancer of subsidies, New
Zealand has felt it necessary to make sacrifices that will make it very hard for sectors of the New Zealand industry to
get any direct benefit from the proposal," Mr Symmans said.
ENDS