Greenshell Mussel Industry Warns Against Excessive Government Charges

Press Release by NZ Mussel Industry Council, 21 July 2005

The New Zealand Mussel Industry Council warns that excessive government and regional council charges could cripple the New Zealand aquaculture industry, forcing some small and medium farmers out of business.

This warning follows meetings held this week to discuss proposals that could see central government and regional councils each imposing a new range of charges on the aquaculture industry.

New Zealand Mussel Industry Council Executive Officer, Lorna Holton says "Marine farmers are looking down the barrel of a whole raft of new government and council charges, on top of those they already pay. These could include new coastal occupancy charges, bonds, line levies, reporting requirements and a host of extra administration fees".

"Government officials are currently reviewing an aquaculture implementation plan that lists 14 separate projects led either by the Ministry for the Environment, DoC, Ministry of Fisheries or regional councils. Not one of these projects adds up all the extra costs industry is likely to face if the projects are implemented in their current form", she says.

"Profitability in the industry declined over the past two years from a strong New Zealand dollar, rising fuel and regulatory charges. This industry is not able to bear any additional fees and charges" she warns.

Aquaculture exporters also face added costs needed to get products into key export markets in the US, Europe and North Asia including a range of tariff costs and stringent product and phytosanitary testing.

"Industry leaders from across New Zealand are coming together to work on an aquaculture sector strategy to build value across the entire industry. The aim of the strategy is to improve market access for aquaculture products like Greenshellä mussels, oysters and salmon" says Lorna Holton.

Part of the sector strategy will focus on identifying the increasing number of regulatory barriers facing the industry as well as tariff and trade issues.

"The industry needs to expose costs across the sector, remove trade barriers and develop export agreements with key trading partners. We want some of these key trade issues raised at the next World Trade Organisation negotiations in Doha, Qatar".

"If this industry is to grow, government needs to clearly understand how regulatory charges impact on industry profitability. The sector strategy will build better alliances between the industry and government and provide a solid platform future sustainable growth of the aquaculture industry", says Lorna Holton.