Assessing Environmental Regulatory Arrangements for Aquaculture

284 Pages·2004·1.01 MB·English

Assessing Environmental
Productivity
Regulatory Arrangements
Commission
for Aquaculture
Research Paper
© Commonwealth of Australia 2004
ISBN 1 74037 141 0
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An appropriate citation for this paper is:
Productivity Commission 2004, Assessing Environmental Regulatory Arrangements for
Aquaculture, Canberra.
The Productivity Commission
The Productivity Commission, an independent agency, is the Australian
Government’s principal review and advisory body on microeconomic policy and
regulation. It conducts public inquiries and research into a broad range of economic
and social issues affecting the welfare of Australians.
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Foreword
Aquaculture is a diverse and rapidly growing industry in Australia, with a
significant regional presence. Australian governments see ecologically sustainable
aquaculture as an industry of the future.
The Commission’s research consultations with government and non-government
bodies identified environmental regulatory arrangements for aquaculture as an
important issue for examination. Previous Commission research on the Great
Barrier Reef catchment also identified issues with environmental regulatory
arrangements for aquaculture in Queensland.
The present study reviews existing planning and environmental regulatory
arrangements for aquaculture in Australia. It reveals significant differences in the
way that aquaculture is regulated and administered across states. The regulations
and their jurisdictional differences have implications for both the management of
aquaculture and the efficiency of resource allocation.
This study raises questions about how best to improve regulatory arrangements for
aquaculture and address various constraints on the industry. It is intended to
complement other developments relevant to the Australian aquaculture industry,
including the implementation of the national Aquaculture Industry Action Agenda,
and several state-based reviews of regulatory arrangements for aquaculture.
The Commission is grateful to those who assisted it in preparing this study and
welcomes further feedback on it.
Gary Banks
Chairman
February 2004
FOREWORD III

Contents
Foreword Error! Bookmark not defined.
Contents V
Acknowledgments Error! Bookmark not defined.
Abbreviations and explanations Error! Bookmark not defined.
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Overview XIX
Key points XX

1 Aquaculture development in Australia 1
1.1 Background 1
1.2 Purpose, scope and approach 4
1.3 The role of government in aquaculture production 5
1.4 The broad aquaculture regulatory framework 7

2 The aquaculture industry in Australia 11
2.1 Value of Australian aquaculture 11
2.2 Aquaculture sectors and production systems 14
2.3 Potential environmental impacts 17
2.4 Potential industry development constraints 22
2.5 Summary 23

3 Legislation and agencies 25
3.1 The legislative framework 25
3.2 Agencies involved in aquaculture regulation 37
3.3 Summary 45

4 Marine and land use planning and aquaculture production 47
4.1 Resource planning for marine and coastal areas 47
4.2 Aquaculture planning for marine and coastal waters 53
4.3 Land use planning and aquaculture production 63
4.4 Summary 69

CONTENTS V
5 Aquaculture leases and administration 71
5.1 Marine aquaculture lease categories and uses 71
5.2 Allocation of marine aquaculture leases 75
5.3 Term, nature, conditions and rentals for marine aquaculture
leases 80
5.4 Status of marine aquaculture leases 87
5.5 Public land and aquaculture 88
5.6 Native title and aquaculture leases 93
5.7 Summary 95

6 Approval processes for aquaculture production 97
6.1 Purpose of approval systems 97
6.2 Licences, permits and development approvals 98
6.3 Assessing approval processes 107
6.4 Summary 123

7 Approval terms, conditions, monitoring and reporting 125
7.1 Approval terms 125
7.2 Conditions 126
7.3 Appeals 130
7.4 Monitoring, enforcement and reporting 131
7.5 Summary 135

8 Quarantine and translocation 137
8.1 Quarantine and translocation measures 137
8.2 Quarantine and translocation legislation 138
8.3 Assessment of quarantine/translocation framework 142
8.4 Summary 149

9 Innovative approaches 151
9.1 Innovative regulatory instruments 151
9.2 Market-based approaches 155
9.3 Voluntary approaches 157
9.4 Other approaches: education and information 162
9.5 Summary 163

10 Concluding comments 165

VI CONTENTS
A Summary of aquaculture regulatory arrangements 169
B Mandatory and potential approvals 183
C Marine and coastal planning instruments 203
D State environment agencies and aquaculture 207
E Efficient and effective environmental regulatory arrangements for
aquaculture 215

References 219
BOXES
1.1 Australian aquaculture industry developments 5
1.2 Approvals required for a marine aquaculture operation 9
2.1 Selected aquaculture production systems 16
2.2 Wallis Lake Hepatitis A outbreak 22
3.1 Government support for industry development 42
4.1 The Tasmanian marine farming planning process 57
4.2 The Victorian marine planning process 58
4.3 Aquaculture management reform in New Zealand 60
5.1 Aquaculture proposals on public land in Western Australia 92
5.2 Native title agreements and aquaculture 95
6.1 Risk based approval processes in New South Wales 108
6.2 Integrated approval systems 114
7.1 Examples of compliance conditions contained in marine farming
licences (finfish farms) in Tasmania 129
8.1 Benefits and costs of aquatic quarantine/translocation measures 138
8.2 Challenges to Australian quarantine arrangements 145
8.3 Victorian translocation policy 147
8.4 Assessment backlog 148
9.1 Environmental Management Systems 159
FIGURES
1.1 Main aquaculture areas in Australia 2
1.2 The broad regulatory framework for aquaculture 8
2.1 Value of Australian aquaculture production, 1991-92 to 2001-02 12
CONTENTS VII
2.2 Value of aquaculture production for key aquaculture species,
1991-92 to 2001-02 13
2.3 State value of Australian aquaculture production, 1991-92 to
2001-02 14
TABLES
2.1 Selected aquaculture production 2001-02, by jurisdiction and species 15
2.2 Potential environmental impacts of aquaculture farm location and
construction 19
2.3 Potential local environmental impacts of aquaculture farm operations 20
3.1 Main state fisheries and aquaculture legislation 26
3.2 Functions of main agencies involved in aquaculture management 38
3.3 State government funding for departments of primary industries or
fisheries for aquaculture programs 44
4.1 Summary of marine aquaculture planning regimes 55
4.2 Marine aquaculture planning instruments and zones 61
4.3 Land use planning instruments and aquaculture 64
5.1 Categories of marine aquaculture lease 74
5.2 Allocation of marine aquaculture leases 76
5.3 Marine aquaculture lease term and renewals 81
5.4 Nature of marine aquaculture leases 83
5.5 Marine aquaculture lease fees and rentals 86
5.6 Status of marine aquaculture leases 88
6.1 Approvals for large-scale marine aquaculture and associated land-
based facilities 99
6.2 Approvals for large-scale land-based aquaculture on the coast 99
6.3 Approvals for large-scale land-based freshwater aquaculture 100
6.4 State environment agency aquaculture requirements 102
6.5 Marine aquaculture: summary of approvals, Acts and agencies 110
6.6 Land-based aquaculture in the coastal area: summary of approvals,
Acts and agencies 110
6.7 Land-based aquaculture (freshwater): summary of approvals, Acts
and agencies 110
6.8 State aquaculture licence fees and charges 122
7.1 Aquaculture licence terms 125
VIII CONTENTS
7.2 Licence appeals 130
8.1 Main quarantine and translocation regulations and policies applying
to aquatic organisms 140
A.1 New South Wales aquaculture regulatory arrangements 169
A.2 Victorian aquaculture regulatory arrangements 172
A.3 Queensland aquaculture regulatory arrangements 174
A.4 Western Australian aquaculture regulatory arrangements 176
A.5 South Australian aquaculture regulatory arrangements 178
A.6 Tasmanian aquaculture regulatory arrangementsa 180
B.1 Marine aquaculture: summary of approvals, Acts and agencies 190
B.2 Land-based aquaculture in the coastal area: summary of approvals,
Acts and agencies 197
B.3 Land-based aquaculture (freshwater): summary of approvals, Acts
and agencies 202
C.1 Marine and coastal planning instruments 203
D.1 Summary of state environmental agencies and aquaculture
requirements 213
E.1 Efficient and effective environmental regulatory arrangements for
aquaculture 215

CONTENTS IX
Acknowledgments
This paper was prepared with the assistance of Phil Hughes, Andrew Dolling,
Michael Schuele and Annette Weier. The development of the paper was guided by
Deborah Peterson and overseen by Commissioner Neil Byron. Several other staff
members, including Richard Clarke, Jonathan Pincus and Darrell Porter, provided
additional input. Vicki Thompson provided administrative and production support.
The paper benefited from helpful comments and suggestions from three external
referees, Dr Wendy Craik, ACIL Tasman, Dr Patrick Hone, Fisheries Research &
Development Corporation, and Ms Carolyn Tanner, University of Sydney.
In undertaking this research, the Commission was assisted by many organisations
and individuals, both in gathering information for the study and commenting on
draft reports. The Commission is grateful for their input.

X ACKNOWLEDGMENTS