KEY POINTS:
The Government hasn't gone far enough with cuts to hoki quotas, Sanford managing director Eric Barratt says, despite new catch numbers threatening industry jobs and profitability.
Fisheries Minister Jim Anderton set new catch limits, including cutting the total allowable hoki catch by 10 per cent to 91,040 tonnes - with the eastern stock total allowable commercial catch increased by 5000 tonnes and western stock cut by 15,000 tonnes.
Barratt said Sanford welcomed many of the changes but was concerned the cut in hoki would be insufficient to see an early recovery in the western stock.
NZX-listed Sanford had earlier called for a cut of 20,000 tonnes, all from the western stock, Barratt said.
"That call was made to ensure the earliest possible recovery in the stock and the least likely risk to further cuts."
The adjustments had also boosted pressure on the slowly recovering eastern hoki stock, he said.
Not all operators supported cutting catch limits, Barratt said.
"But those with a longer-term interest and a significant investment in the industry who are prepared to take the longer-term view would prefer to take the cut and get the recovery."
Barratt said Sanford had looked at restructuring the fleet, reallocating catches and deploying to other fisheries to try to eliminate potential job losses.
"For example we could focus more on the lower-value species that we mightn't be catching totally now."
He would not predict the possible financial impact at this stage.
"At times the market responds positively to cuts in saying, 'There's less of this wild fish around and we still want to buy it so we're prepared to pay more'."
Cuts to orange roughy on the South Island's West Coast - effectively closing the fishery - had been overly cautious, Barratt said.
"We'd have preferred they'd cut it in half and continued to at least get some fishery information about catch effort, the rate of catch, the size of catch ... so you can monitor its progress."
Meanwhile, cuts to other species such as red cod and flatfish only brought quotas down to the average catch levels.
Barratt welcomed a rise in the deemed value paid to Government by operators who caught fish without quota. "It is obvious there has been serious and intentional targeting of fish without quota by some operators because the deemed values had been set at a level that still allows economic gains from this activity."
Seafood Industry Council acting chief executive Alastair Macfarlane saw the moves as a mixed bag.
The council recognised reductions were necessary in some fisheries, although cuts to some species were not supported by science and would have a significant economic impact on operators, Macfarlane said.
"Affected quota owners and companies and the industry will be looking at these decisions in more detail."
Sealord general manager for operations Ross Tocker said the company had sold a freezer trawler and in light of yesterday's confirmed catch limits the capacity would not be replaced.
He said Sealord would try to place as many as possible of the 85 crew affected elsewhere within the fleet and company. "We do need to go through now that the [catches] have been finalised and decide what other, if any, implications there are but we will be working through it with staff and union on a consultative basis."
There would be a financial impact from the cut in catch limits but the company factored in changes.
Generally, the reductions had been as expected and Sealord was comfortable with the cut in hoki.
The minister had looked after the sustainability issue well, Tocker said.
Sanford shares closed up 4c at $4.50.
Seafood Industry
* Generated $1.5 billion last year.
* Exports worth $1.35 billion.
* 130 species are commercially fished.
* Allowable commercial catch currently 586,000 tonnes a year.
* But only 517,000 tonnes was actually landed in last year.
*26,000 jobs
- source Seafood Industry Council 2006
