"This effectively means that the protection zone needs to extend to around 20 kilometres offshore."
The birds were a cornerstone of Otago's $100 million a year eco-tourism industry, which meant there was was also very good economic reasons to ban the nets.
The risk of losing the yellow-eyed penguin colonies on the peninsula was particularly high right now, with 56 birds having been found dead around the Otago Peninsula this breeding season - the victims of an unknown toxin, she said.
New Zealand Federation of Commercial Fishermen vice-president Allan Rooney said a observers on boats in waters off Timaru and Taranaki found no seabirds killed in set nets.
An extension on the set net ban area around Otago could result in a financial blow to the fishing industry there.
"It would make a major difference to the guys down there and also to the New Zealand economy."