papua new guinea : fisheries and their administration...papua new guinea's national econaay is...

PIDPPacific Islands Development Program

Multinational Corporations in the Pacific Tuna Industry

PAPUA NE GUINEA: FISHERIES ANDTHEIR ADK[NISTRATIOA

by

David J. Doulman, Ph.D., and Ronald Kuk

January 1986

rm East -West Center • 1777 East-West Road • Honolulu. Hawaii 96848

PAPUA NEW GUINEA: FISHERIES ANDTHEIR ADMINISTRATION

by

David J. Dou1u n, Ph.D., and Ronald Kuk

January 1986

David J. Doulman, Ph.D.Project Director

Multinational Corporations in the Pacific Tuna IndustryPacific Islands Development ?rogr 2m

East-West Center1777 East-West Road

Honolulu, Hawaii 96848

David J. Doulman, Ph.D. is a Fellow with the Pacific Islands DevelopmentProgram and Project Director of the Multinational Corporations in thePacific Tuna Industry Project. This paper was prepared at the request ofthe trors of INFOFISH Marketing Digest.

Ropald Kuk, B. Ec. (Hens) is Chief Fisheries Economist in the Department ofPrimary Industry, Port Moresby, Papua New Guinea.

The Pacific Islands Development Program is publishing this report for useby Pacific island governments. To ensure maximum dissemination of thematerial contained in the report, it is not copyrighted and islandgovernments are encouraged to copy the report or portions of it at will.The Pacific Islands Development Program requests, however, thatorganizations, institutions, and individuals acknowledge the source of anymaterial used from the report.

Page

Introduction . .. . . ...... • ............... • • ... • , • , • • .. , .. , .. , • • • . 1

Resources. ......... •••..•••• ........ ...•.••••• . ••• •• ......... •. 2

Artisanal Fisheries. . . . . . . . . . . . . . . . . . .. . . a....,........,....... 4

Commercial Fisheries...,......,........,....................... 6

Tuna. 8

Prawns ......................................................... 11

Lobster. • . • • • a • a a . . . • • . . • a . a • . . a . e a • a a a a a a • • a a . a . . a a a . 14

3arramundi ..................................................•e. 16

Di stant-water Fishing Activity. ........... ..a............a.... 17

Marketing ...................................................... 17

Acm ini strati on, ... • • 0 4 0 . 0 .. * .. , a a . a a , a a a a a , • , woos. a .. a , . , ...... 18

Biological and Surveys Research.......,...,.. .................. 19

Future Prospect--.,,,,,,,,,,, ...................aa.,..,.....,... 20

List of Tables:

Table 1 Value of exports from Papua New Guinea 1980-81......... 2

Table 2 Exports of fisheries products from Papua NewGuinea 1980-8 L ................ ...................... 6

List of Figures:

Figure 1 Papua New Guinea showing major fishing areas.......... 3

Figure 2 Composition of fisheries exports in valueterms 1980 and 1984 ... . .. . . . ... . . . ... .. . ... a . , ... .. 7

David J. Doulnran and Ronald Kuk - iii

INTRODUCTION

Consisting of more than 600 islands and with a total land area of

464,000 square kilometres (km2 ), Papua New Guinea is the largest country in

the Pacific islands region. Politically independent since 1 975, it shares

land and sea borders with Australia, Indonesia (Irian Jaya), the Federated

States of Micronesia, Fiji and Solomon Islands (Figure 1). The country

has a population of 3.2 million, of which about 80 percent resides inland.

In 1978 Papua New Guinea declared an Exclusive Economic Zone (EE Z) covering

2.3 million km2 of the western Pacific Ocean. The zone is the third

largest in the Pacific islands region after French Polynesia f5.0 million

km2 ) and the Republic of Kiribati (3.6 million km2).

Papua New Guinea's national econaay is primarily dependent on mineral

(copper and gold) exports and to a lesser degree on exports of agricultural

(coffee, cocoa, copra, and palm oil) and forestry products. The minerals

are produced at two open-cut mines, one of which is located at tanguna in

the North Solomons Province and the other at Ok Tedi in the Western

Province (Figure 1). The agricultural commodities are produced both by

smallholder farmers and on plantations throughout the country. Most

commodities are exported overseas unprocessed. Table 1 shows the

composition of Papua New Guinea's major export commodities, including

fisheries exports, for the period 1980-84. Mineral exports account for

from 4+5 to 55 percent of total export receipts each year. Since 1981 the

value of exports of fisheries products has dropped significantly. In 1980

the value of fisheries exports accounted for 5 percent of total exports,

but by 1984 the proportion had dropped to only 1 percent. The reason for

the decline was due to the closure of the country's tuna fishery at the end

of the 1981 fishing season.

David J. Doul man and Ronald Kuk - 1

Table 1 Value of exports fram Papua New Guinea 1980-84

Item 1980 1981 1982 1983 19814

(US$tnallion)

Minerals 500.0 441.9 404.8 425.3 347.9Coffee 183.8 75.7 104.3 108.0 117.3Cocoa 72.1 50.1 42.6 47.2 71.0Forestry products 71.0 64.5 82.7 62.4 86.7Copra products 38.0 28.2 17.3 27.4 52.0Palm oil 25.7 18.4 16.2 22.8 41.8Fisheries products 52.5 41.5 11.3 10.9 9.3Other exports 129.2 111.6 85.0 79.6 138.2

TOTAL 1,072.3 831.9 764.3 783.6 864.2

Source: Papua New Guinea Bureau of Statistics, Port Moresby.

JJI

Papua New Guinea's coastal and oceanic waters are rich and varied in

marine resources. Biologists have identified at least 1,600 species of

fish, 5,000 species of molluscs, and a similar number of crustaceans.

Most of these marine resources are edible and are exploited by villagers

for subsistence constrnption. However, only a small nunber of the

country's marine products are exploited commercially because (1) the

majority of species do not have a total biomass sufficient to viably

support commercial fishing operations and (2) many species do not have

accessible national or international markets.

In addition to its marine resources, Papua New Guinea has a variety of

native and introduced freshwater fish that are exploited for subsistence

consumption and for sale by artisanal fishermen. The most important

species of freshwater species are barramundi ( Later calcarifer ), a native

David J. Doulman and Ronald Kuk - 2

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David J. Doulman and Ronald Kuk -3

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specie, and tilapia (Tilania mossamhica ), which was widely introduced into

the country's river and swanp systems in the 1960s.

ARMSMAL FISHERIES

Fishing has always been an important traditional occupation for

villagers residing in coastal areas and along Papua New Guinea's extensive

rivers and associated waterways. In maritime areas artisanal fishing

activities were mainly confined to inshore areas around reefs and coastal

lagoons principally because supplies of fish and molluscs in these areas

more than met subsistence needs. Artisanal fishermen in both inland and

marine fisheries employed a wide range of effective fishing techniques.

Fishing activities tended to be highly localized and restricted to the

immediate localities of fishermen. Basic processing techniques such as

salting and drying were not well developed so that in traditional societies

there was no significant trade in fish products although shells were

frequently traded between coastal and inland groups.

With the growth of urban centers and with government financial and

logistical support, artisanal fishermen near these centers began to

increase their catches and to sell their excess to the urban populations.

This development was accompanied by the introduction of gear and vessel

improvements and efforts by government—backed financial institutions,

particularly the Papua New Guinea Agricultural Bank, to improve access to

credit for fishermen.

In centers away from urban areas where artisanal fishermen do not have

ready access to markets for their fish, the government has established a

series of fishing stations. The rationale for these stations is to

provide disadvantaged fishermen with an opportunity to earn a cash income.

David J. Doulman and Ronald Kuk — 4

Usually stations are established in locations where there are proven fish

resources, capable and enthusiastic fishermen, and limited avenues for

alternative forms of economic activity. Stations are staffed by

experienced fishermen and technicians. Fish is purchased from the

artisanal fishermen, extention and training services are provided, and gear

is sold. As part of the station activities, collector boat services are

operated so that fish can be purchased from fishermen in outlying villages.

Catches are frozen and consolidated at the stations and in turn are

marketed through commercial outlets or through the government—owned Papua

New Guinea Fish Marketing Corporation.

An attempt has been made to operate stations on a commercial basis,

but they have remained largely dependent on government subsidies for their

capital and recurrent financial needs. In its continuing commitment to

develop artisanal fisheries in Papau New Guinea, the government has

negotiated a loan with the International Fund for Agricultural Development

(IFAD) for this purpose. The loan is to be used for fisheries development

in two areas where fisheries stations already exist.

It has been estimated by the Department of Primary Industry that

artisanal fishermen in Papua New Guinea currently harvest about 15,000

tonnes of fish annually. In monetary terms this harvest could be

conservatively valued at US$20 million per year. However, other estimates

suggest that the potential yield of Papua New Guinea's inshore fishery

could be as high as 140,000 tonnes annually if moderately exploited and

388,000 tonnes if heavily exploited.

David J. Doulman and Ronald Kuk — 5

C )M) RGIAL. FISHERIES

Papua New Guinea's principal commercial fisheries primarily involve

the exploitation of tuna, prawns, lobster, and barranundi. All these

fisheries are export oriented. Table 2 shows the composition of the

country's fisheries exports between 1980 and 1984. The total value of

exports declined from US$52.6 million in 1980 to US$9.3 million in 1984.

The decline was largely due to a fall in the value of tuna exports.

Fisheries exports in the miscellaneous category include products such as

reef fish (whole and fillets), beche-de-mer, and assorted molluscs.

Table 2 Exports of fisheries products from Papua Nie Guinea 198x84

Item 1980 1981 1982 1983 1984

Tuna Quantity 33,078 29,788 2,724 5140 1,723Value d 140.0 29.4 1.9 0.3 0.8

Prawns Quantityc 1,122 1,078 912 1,109 1,070Value 8.24 7.8 6.4 9.2 6.6

Lobster Quantity 146 203 174 62 49Value 1.7 2.4 2.1 0.8 0.6

Barramundi Quantity 99 116 74 7 58Value 0.8 0.7 0.5 0.05 0.3

Miscellaneous Value 1.7 1.2 0.4 0.6 1.0

TOTAL Value 52.6 41.5 11.3 10.9 9.3

Notes: a. Tonnes. b. US$ million. c. TailweigntSource: Papua New Guinea Bureau of Statistics, Port Moresby.

Figure 2 illustrates how the composition of commercial Fisheries

exports in value terms from Papua New Guinea changed between 1980 and 198+.


Miscellaneous

Barramundi

obster

arnundi

1980

1984

Figure 2. Composition of fisheries exports in value terms 1980 and 1984

David J. Dou mn and Ronald Kuk - 7

TUNA

Papua New Guinea's domestic tuna fishery commenced in 1970.

Initially two companies started operations, but by 1972 the number had

grown to four. Three of the companies were subsidiaries of Japanese

fishing and/or trading multinational corporations while the other was a

subsidiary of a United States multinational tuna corporation. However,

by 1980 only two companies remained operating in the fishery. These were

Star-Kist (PNG) Pty Ltd and New Britain Fishing Industries Pty Ltd. The

former had taken over one of the Japanese subsidiaries in 1979, and the

latter was a subsidiary of Mitsubushi. But as a result of deteriorating

world market conditions for tuna in 1980-81 and corporate reorganizational

plans by the parent companies, the Papua New Guinea subsidiaries terminated

their operations in the country at the end of 1981. The closure of the

fishery had not been entirely anticipated by government. Because the

fishery had generated employment for about 1,200 Papua New Guineans, who

had been employed directly and indirectly on vessels and onshore, commerce

in the towns where the tuna fleets were based and provisioned (Rabaul and

Kavieng) (Figure 1) was hard hit by the collapse of the fishery.

Efforts by government to reactivate the domestic tuna fishery

continued in 1982 and 1983. These efforts led to the deployment in August

1984 of a snail fleet of eight vessels based in Kavieng. The size of the

fleet increased to nine vessels in 1985, and an operating company was

formed in Okinawa for the project. Its shareholders include Okinawan

fishermen, municipal authorities, the Okinawan Prefectural government, and

entrepreneurs. The company has no links with established fishing or

trading multinational corporations.


The baitfish resource assessments undertaken by the Department of

Primary Industry in the late 1960s indicated that Papua New Guinea had

reliable supplies of good quality baitfish. Baitfish grounds capable of

supporting commercial tuna pole-and-line fishing were found to exist in

many areas of the country. Particularly productive grounds were found in

the sheltered waters around Kavieng and its adjacent islands. These

grounds were known to be near the main migration paths of the skipjack tuna

(Katsuwcnus pglarnis) resources that exist year round in Papua New Guinea's

E . The existence of the baiting grounds and the tuna resource prompted

international interest in developing a domestic tuna fishery.

The pole-and-line vessels deployed in the fishery are 59 GRT vessels

of traditional Okinawan design. Most vessels are about 12 m in length and

are constructed of wood or steel. Vessels have a crew of from 20 to 22

persons, about 15 of whom are Papua New Guineans. The vessels operate

from motherboats of 1,000-4,000 GRT, which are anchored near the baiting

grounds. The pole-and-line vessels return to the motherboats each night

to discharge fish and to take on supplies. The vessels then proceed to

the baiting grounds where the crew rests and then catches bait for the next

day's fishing. The fact that the fishing vessels are operationally tied

to the baiting grounds and the mothership means that they do not range more

than 100 kms from the baiting grounds and motherships.

in Papua New Guinea it is custaaary for about 10 or 1 2 pole-and-line

vessels to operate from each mothership. Tuna is stored on the mothership

until a sufficient quantity has accumulated for export. A carriership

calls periodically, and the fish is transferred from the mothership.

During 1971-81 an average of X44 pole-and-line vessels operated in Papua New


Guinea's domestic tuna fishery. A maximum of 50 vessels was deployed in

1980.

According to statistics published by the Food and Agricultural

Organisation of the United Nations, Papua New Guinea, in the 1970s was the

largest producer of skipjack tuna in the Pacific islands region and the

third largest producer in the world after Japan and the United States. At

its peak in 1978 the fishery produced x48,933 tonnes of tuna. Between 1971

and 1981 about 80 percent of landings went to the United States for

processing in American Samoa, Puerto Rico, or the West Coast; 15 percent

went to processors in Japan, and 5 percent went to the katsucbushi plant in

Papua New Guinea.

Papua New Guinea's tuna exports totaled 33,078 tonnes in 1980,

declining to 5 L40 tonnes in 1983 (Table 2) . The species composition of

landings averages 70 percent skipjack and 30 percent yellowfin tuna

albacores). With the re-establishment of the domestic tuna

fishery in 1984 exports improved to 1,723 tonnes. Since 198€ Papua New

Gui near s tuna exports have been mainly sold to Fiji's cannery for

processing.

Receipts from tuna exports averaged US$18.3 million per annum over the

period 1971-81. In 1980 tuna exports reached US$10.0 million and

accounted for 76 percent of the value of Papua New Guinea's fisheries

exports (Table 2). Tuna export receipts slumped to US$0.3 million in 1983

and recovered to US$0.8 million in 198U.

In addition to the pole-and-line fleet a single purseseiner has been

based in Rabaul since 1982. The seiner has made exceptionally good

catches. About 12 Papua New Guineans are employed on the vessel, which

was formerly owned by Mitsubushi but is now owned by Taiwanese interests.


Papua New Guinea is currently investigating the possibility of

establishing a tuna cannery at either Kavieng or Rabaul. Several foreign

investors have been short-listed for the project, and their proposals are

being evaluated.

PRAWNS

The commercial exploitation of Papua New Guinea's prawn fishery dates

back to 1967 when the government first issued licenses in the fishery.

Initially 15 licenses were granted to a Kuwati fishing company. However,

this company terminated its operations in 1973, and this action paved the

way for the entrance of Japanese companies into the fishery. Since then

these companies have dominated the fishery. In 1985 two Japanese-owned

companies and one joint-venture company were operating in the fishery along

with several nationally awned companies. The Japanese companies operate

six trawlers and the joint venture operates six vessels. The government

owns 34 percent equity in the joint venture. The nationally caned

companies operate about five vessels. Most of the trawlers are greater

than 100 GRT and the larger class vessels are specially designed for

operations in the fishery. Design-specific vessels are required because

each fishing trip lasts, on average, for from 35 to 40 days. During this

time the trawlers do not put into port so they are fitted with large fuel,

water, and refrigerated storage capacities. The vessels also have full

processing facilities on board so that landings are quickly sorted and

packed ready for export. All the larger trawlers operate 24 hours per

day, and all the vessels are based in Port Moresby.

Papua New Guinea's prawn fishery is divided into two areas for

licensing and management purposes: the northern Gulf of Papua (Gulf and


Western Provinces) and Orangerie Bay (Milne Bay Province) (Figure 1). The

former area is the most important area in the fishery and accounts for

about 95 percent of the country's catch each year. The northern Gulf of

Papua is exploited by larger class vessels while Orangerie Bay is fished by

smiler class vessels that are owned by individual national fishermen or

national groups.

Although more than 40 species of penaeid prawns are found in Papua New

Guinea waters, four species are overwhelmingly dominant in commercial

landings. The percentage composition of these four species in the overall

total catch is relatively consistent from year to year. The main species

taken are banana prawns ( Penge merg .ensis , _ i ndi cus ) , black tiger

prawns, (2, monodon ), tiger prawns (P semisulcatus ), and endeavor prawns

(Metanenaeus en s, 1 dam, IL eboracensis ).

In addition to operating in the prawn fishery, the trawlers also fish

for lobster for approximately two months each year. In the course of

lobster and prawn operations, fish by-catch is caught, but most of it is

discarded at sea after selective sorting. However, an estimated 350

tonnes of by-catch are landed in Port Moresby by the trawlers each year.

This fish sells for an average of US$1.10 per kg, and it is important in

helping meet the protein requirements of the city's lower-income

population.

Papua New Guinea's domestic market for prawns is relatively small.

Based on information supplied by industry, the Department of Primary

Industry estimates that the market could not absorb more than 150 tonnes

annually. Most domestic sales are made to the hotel/restaurant trade and

to foreigners. For most Papua New Guineans prawns are largely outside

their price range.


Approximately 90-95 percent of Papua New Guinea's prawn exports go to

Japan which has traditionally been the country's most important export

market. Sane smaller-sized and lower-valued species are exported to the

United States, Australia, Hong Kong, and Singapore. In 1983 Papua New

Guinea's exports to Japan accounted for about 1 percent of that country's

total imports.

The prawn fishery employs about 200 Papua New Guineans and 30

specialist foreign technicians. The training of nationals has been

emphasized by government, and industry has responded well to this

requirement. Good working relations in the industry are actively promoted

so that industrial disputes are rare.

Like all of Papua New Guinea's fisheries, the Department of Primary

Industry monitors the prawn fishery--a task made easier by the fact that

only a shall number of vessels are licensed to operate in it. A cautious

approach is taken by government to licensing new vessels as the prawn

fishery is believed to be exploited at a level near its maximum sustainable

yield. As a matter of policy, additional foreign-owned trawlers are not

being licensed, and Papua New Guinean companies and groups that want to

enter the fishery are being encouraged to purchase equity in existing

foreign-awned companies. As a result of this policy, the foreign presence

in the fishery is likely to be reduced over time.

During the 1970s the prawn fishery ranked second as Papua New Guinea's

most important fishery in export value terms. However, with the collapse

of the tuna fishery prawns became the country's dominant fishery. Between

1980 and 1984 prawn exports ranged fran 1,122 tonnes (tailweight` in 1980

to 912 tonnes in 1982 (Table 2). The drop in exports in 1982 was due to a

reduction in fishing effort because three trawlers belonging to a Japanese

David J. Doulrnan and Ronald Kuk - 13

company were temporarily de-commissioned for most of the year.

The value of prawn exports reached a high of US$9.2 million over the

period 1980-84 and a low of US$6.4 million in 1982 (Table 2) .

LOBSTER

At least five species of lobster are found in Papua New Guinea waters

although only one specie, the tropical spiny lobster (Panilirus ornatus ) ,

is exploited commercially. The average size of this specie of lobster

when captured in the fishery is frcm 0.3 to 1 .8 kgs in weight, and almost

the entire catch is marketed in the United States.

The fishery is exploited both by artisan]. fishermen and by the

trawlers that operate for most of the year in the prawn fishery. The

lobster fishery is unique in that it is probably the only fishery in the

world where stocks are primarily exploited by trawling. The trawlers

operate seasonally in the fishery from August to December when the lobsters

are migrating through the Gulf of Papua.

The artisanal component of the fishery is a diver fishery. These

fishermen, using motorized traditional craft, dive for lobsters on the

reefs in the Daru area throughout the year (Figure 1). The lobsters are

kept alive on board the craft and are sold to marketing agents at the end

of each day's fishing.

Catches in the fishery are carefully monitored by research staff of

the Department of Primary Industry because the fragile resource can easily

be overfished due to the migration behavior of the lobsters and the

operational efficiency of the trawlers. Apart from overfishing,

recruitment into the fishery is affected by a range of other natural causes

that are not fully understood. For this reason the need is heightened for


effective conservation and management practices in the fishery.

The lobster fishery is a shared fishery with Australia, and it is

subject to to the conservation and management provisions of the Torres

Strait Treaty between Australia and Papua New Guinea. The treaty, in

part, requires that the signatories cooperate in exploiting lobster stocks

in the treaty area to ensure that they are not overfished.

In 19824 concern over the state of stocks led Papua New Guinea and

Australia to agree to a three-year trawl fishing ban for lobsters. The

countries agreed to impose severe penalties on their respective fishermen

if they are found to have lobsters on board their vessels. Penalties are

imposed even if the lobsters are incidentally caught while fishermen are

fishing for the prawns. Incidentially landed lobsters must be returned to

the water. Papua New Guinean and Torres Strait (Australian) fishermen

using traditional fishing methods are exempt from the ban.

In Papua New Guinea the policy objective of government is to

eventually prohibit the taking of lobsters by trawlers. This will be

achieved on a gradual basis as effort by Papua New Guinean fishermen in the

diver fishery increases. It is proposed to allocate a progressively

nailer lobster quota to the industrial component of the fishery until the

entire quota is being harvested by divers.

Over the period 1980-84 the quantity of lobster exported from Papua

New Guinea fluctuated from 203 tonnes in 1981 to X49 tonnes in 1984 (Table

2). Export fluctuations are principally determined by fluctuations in

resource availability rather than by fluctuations in the level of fishing

effort being applied in the fishery. Similarly, export receipts for

lobster fell fran US$2.L million in 1981 to US$0.6 million.

David J. Douiman and Ronald Kuk - 15

BAR.RAMJNDI

Barranundi ( Later calcarifer ) is a giant perch and a catadromous

species of fish. It has particularly good table qualities and can be

stored for long periods of time without significant deterioration in

quality. About 60 percent of the barramundi landed commercially in Papua

New Guinea is exported to Australia where it commands a high market price.

The remaining 40 percent of commercial production is consumed domestically.

Over the period 1980-84 the quantity of barramundi exported from Papua New

Guinea fluctuated from 116 tonnes in 1980 to only 7 tonnes in 1983 (Table

2) . The value of exports ranged from US$0.8 million in 1980 to US$0.05

million in 1983.

Barramundi taken in Papua New Guinea has an average weight of 6-9 kgs.

Apart from its commercial value, the fishery is important for subsistence

production for villagers who live along the extensive river system and

associated waterways and lakes in the Western and Gulf Provinces.

Subsistence and commercial exploitation in the fishery takes place

throughout the year with gill- netting being the main form of capture.

Village fishermen are actively involved in the commercial fishery and

cooperate with foreigners and indigenous organizations that provide

motherboat services in the fishery. The operators of these boats purchase

fish from the villagers, freeze it, and transport it to market. Without

the services of these motherboats, participation by artisanal fishermen

would be significantly less because of (1) the fishery's remoteness and (2)

the fact that most villages do not have access to freezing facilities.

Over the period 1980-84 the barramundi fishery was underexploitea.

It is estimated by the Department of Primary Industry that the fishery can

yield approximately 500 tonnes (whole weight) of barramundi annually


although exploitation in recent years has been below this level. In the

1970s, however, this was not the case, and conservation measures were

introduced and involved the regulation of mesh sizes and the withdrawal of

foreigner motherboat operators from the fishery. Management policy for

the fishery is to encourage exploitation at a level approaching its

estimated sustainable yield, which will necessarily involve the

reintroduction of foreign motherboat services in the fishery.

DISTANT-WATER FISHING ACTIVITY

In addition to the domestic tuna industry, Papua New Guinea licenses

purse-seine, long-line, and pole-and-line foreign fishing vessels to

operate in its EEZ. Most of the vessels come from Japan, the United

States, Korea, the Philippines, and Taiwan. However, at present Papua New

Guinea has only a distant-water access agreement with Japanese industry,

and all vessels, irrespective of their flag, are licensed to operate under

this agreement. In return for fishing rights in Papua New Guinea's

200-mile zone, the vessel owners pay access fees that are related to the

value of tuna harvested per license period which is usually two months.

Vessel owners also provide Papua New Guinea with catch data for each trip,

which is consolidated for the country (and for the region in cooperation

with other Pacific islands countries) for management, research, and other

purposes. Depending on fish prices and the number of licenses issued,

license fees yield Papua New Guinea from US$2.5 to 5.0 million per annum.

Rather than undertake the task of marketing itself, governments

policies to foster efficient national and international marketing and


distribution outlets for Papua New Guinea's marine products through the

private sector. In this regard the government sees its role essentially

as one of facilitating the domestic distribution of marine products

where necessary and of ensuring that fisheries products exported overseas

are sold in the most lucrative markets at prevailing world prices.

To more effectively carry out its marketing objectives, in 1981 the

government established a statutory (independent) corporation, the Papua New

Guinea Fish Marketing Corporation. The corporation was established for two

reasons: (1) to strengthen and expand the distribution of fish marketing

networks nationally and (2) to try to prevent transfer pricing and related

practices with fisheries products being exported. The corporation carries

out the latter function by monitoring the export of all fisheries products

and in turn by authorizing all shipments at prices declared by exporters.

If the corporation finds that products are being exported at below world

market prices, it can purchase a proportion of the exports at the price

declared by the exporter and can deny an export permit for the remainder of

the shipment. In this way the corporation acts as a watchdog to ensure

that fair returns are received for the country's marine products exported.

Some aspects of fisheries development and management in Papua New

Guinea are a shared responsibility between the national and maritime

provincial governments. However, the relevant legislation governing

cooperative administration between the two levels of government provides

that should a conflict arise between the two levels of government then the

interest of the national government takes precedence.


The Fisheries Act is the principal piece of legislation that formally

empowers the national government, through the Minister for Primary

Industry, to prcinote, manage, and sanction the development of Papua New

Guinea's fisheries resources. In addition to the Fisheries Act, other

legislation relates to specific fisheries such as the Tuna Resources

Management Act for the tuna fishery.

The Fisheries Division within the Department of Primary Industry

undertakes day-to—day responsibilities for fisheries development and

management. The division is divided into four activity areas: economic

planning, biological research and surveys, resource development, and

licensing and surveillance. A newly created section in 198 x+ deals

exclusively with the administration of the IFAD project while maintaining

close contact with the division's other sections.

BIOLOGICAL AND SURVEYS RESEARCH

The Fisheries Division's Research and Surveys Branch undertakes

biological research and related surveys. The broad objectives of the

branch are to appraise marine and freshwater fish resources; appraise the

suitability of new and improved fishing gear and vessels for introduction

into coastal waters; ensure that fish resources are properly managed

through the collection and analysis of catch data and the monitoring of

commercial and artisanal fisheries; undertake biological studies relevant

to the appraisal and management of the fish resources; provide advice and

information on matters relating to the exploitation and development of fish

resources; and conduct research into the potential for aquaculture.

To carry out its mandate and to try to meet its objectives, the branch

is organized into four main activity areas: appraisal (evaluating gear and


vessel, marine and estuarine resources, collection of basic biological and

ecological data), resource management (monitoring existing fisheries,

analysis of catch and effort data, biological studies), freshwater

fisheries and aquaculture (initiating studies and develop fisheries), and

technical support (providing logistical support for research). The branch

employs approximately 75 persons in all employment categories and operates

five research stations. Research and monitoring functions are currently

being undertaken in the tuna, bait, prawn, lobster, barranundi, estuarine,

carp, and artisanal fisheries. Surveys are also being conducted on deep

sea resources, fish trapping, remote sensing, trolling, and the design and

deployment of fish-aggregating devices, sailing craft, and fishing gear.

FUTURE PROSPECTS

Fishing will continue to be an important subsistence and cash-earning

activity for artisanal fishermen in Papua New Guinea. Government policy

is directed toward diversifying and strengthening existing artisanal

fisheries prograns in order to (1) maintain and improve the nutritional

standards of the population and (2) create opportunities for village

fishermen to commercialize part of their catch, particularly those

fishermen who are disadvantaged in terms of market accessibility and/or

alternative development options. These two objectives are central to the

government's overall goals of accelerating the rate of Papua New Guinea's

economic and social development and of distributing the benefits of

development throughout the country in an equitable manner.

When viewed from a national perspective, Papua New Guinea's commercial

fisheries sector is shall. Employment, export income, government revenue,

etc., generated by the sector are relatively insignificant in comparison to

!avid J. Doulman and Ronald Kuk - 20

the mining and forestry industries and commercial agriculture. For this

reason, and because only 20 percent of Papua New Guinea's population

resides in maritime areas, government prefers to focus its commercial

endeavors in areas and on activities where financial and socioeconomic

returns are likely to be higher and where the largest possible percentage

of the population will be impacted.

This approach does not mean that the government ignores the commercial

development of Papua New Guinea's fisheries resources. For resource

reasons, little scope exists for further investment in the prawn or lobster

fisheries and only limited scope exists for new investment in the

barranundi fishery. Thus attention is necessarily directed toward

promoting foreign investment in the tuna fishery. However, as with all

projects of a commercial nature undertaken in Papua New Guinea, the

government requires that they be financially viable and commercially sound

before they are initiated so as not to be a drain on the country's economy

once they are established and become operational.

On the question of financial participation in commercial projects, the

government prefers that such projects be undertaken by private domestic

and/or foreign investors. The government will invest directly in a

commercial project in circumstances where the national interest will be

served or protected by government participation in a project or where such

participation is necessary to establish a priority project (by providing

comfort to private investors in an alien environment or new industry and/or

demonstrating the government's commitment to a project) . Because of this

philosophy the government is unlikely to take up equity in any of the

commercial tuna projects currently under consideration.


The role of the Department of Primary Industry and the scope of its

activities in developing and managing the country's fisheries should not be

vastly different over the mediun term from what it has been in the recent

past. The department is acutely aware of the need to carefully monitor

all fishing activity within Papua New Guinea and, where necessary, to

facilitate the orderly and just transfer of foreign equity in the country's

fisheries to national interests as a means of promoting a truly nationally

owned and controlled fishing industry.

Regionally, Papua New Guinea is committed to the activities of the

Forum Fisheries Agency and to fisheries cooperation with countries in the

Pacific islands concerning two matters. The first is the licensing of

foreign fishing vessels in the tuna fishery and especially the cooperative

initiatives of the seven countries with contiguous EEZs (Federated States

of Micronesia, Kiribati, the Marshall Islands, Nauru, Palau, Papua New

Guinea, and Solomon Islands) that make up the Nauru Group. The second

commitment is the provision of raw material for processing at canneries in

the region. These two regional commitments should continue so long as

they are in Papua New Guinea's and the region's interest.


THE EAST-WEST CENTER is a public, nonprofit educational institution with aninternational board of governors. Some 2,000 research fellows, graduate students,and professionals in business and government each year work with the Center'sinternational staff in cooperative study, training, and research. They examinemajor issues related to population, resources and development, the environment,culture, and communication in Asia, the Pacific, and the United States- TheCenter was established in 1960 by the United States Congress, which providesprincipal funding. Support also comes from more than 20 Asian and Pacificgovernments, as well as private agencies and corporations.

Situated on 21 acres adjacent to the University of Hawaii's Manoa Campus, theCenter's facilities include a 300-room office building housing research andadministrative offices for an international staff of 250, three residence halls forparticipants, and a conference center with meeting rooms equipped to providesi multaneous translation and a complete range of audiovisual services.

PACIFIC ISLANDS DEVELOPMENT PROGRAM

The purpose of the Pacific Islands Development Program (PIDPI is to help meetthe special development needs of the Pacific Islands region through cooperativeresearch, education, and training. PI DP also serves as the Secretariat for the1980 Pacific Islands Conference, a heads of government meeting involvingleaders from throughout the Pacific region, and for the Pacific Islands Con-ference Standing Committee, which was established to ensure follow-up ondevelopment problems discussed at the Conference.

PI DP's research, education, and training activities are developed as a directresponse to requests from the Standing Committee. PIDP's projects are plannedin close cooperation with the Committee to ensure that the focus and theorganization of each project address the needs identified by the heads ofgovernment on the Committee, a process which is unique within the East-WestCenter and in other research and educational organizations serving the Pacific.

A major objective of the program has been to provide quality in-depth analyticalstudies on specific priority issues as identified by the Pacific Island leaders andpeople. The aim is to provide leaders with detailed information and alternativestrategies on policy issues. Each Island country will make its own decision basedon national goals and objectives. Since 1980, PI DP has been given the task ofresearch in six project areas: energy, disaster preparedness, aquaculture, govern-ment and administrative systems, roles of multinational corporations, andbusiness ventures development and management.

papua new guinea : fisheries and their administration...papua new guinea's national econaay is...

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