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Introduction and summary |
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Estimates of the financial and economic performance of two key Commonwealth fisheries are presented in this report. Estimates are produced using data collected from fishery operators surveyed by ABARE during 2008. ABARE has been undertaking surveys of selected Commonwealth fisheries since the early 1980s. The current fisheries surveys program has been running since 1992 and only focuses on major Commonwealth fisheries. A list of earlier fisheries surveys reports is presented at the end of this report.
Among other things, the survey data are used to estimate net economic returns which is the key economic performance indicator referred to in the Fisheries Management Act 1991. As specified in that act, the Australian Fisheries Management Authority (AFMA) is obliged to pursue the maximisation of net economic returns to the Australian community from the management of fisheries. Estimates of net economic returns can be used to assess AFMA’s performance against this objective and can also be used to identify what factors other than management have led to changes in a fishery’s economic performance.
In 2008, ABARE surveyed two fisheries — the eastern tuna and billfish fishery and the southern and eastern scalefish and shark fishery. For the latter fishery, the focus was on two sectors — the Commonwealth trawl sector and the gillnet, hook and trap sector. Information was collected from fishery operators for the 2005-06 and 2006-07 financial years. Estimates of the financial and economic performance of these fisheries generated from the survey data collected are presented here. |
| Key results from the surveys |
| Eastern tuna and billfish fishery |
| Financial performance – per boat |
 Average per boat total cash receipts for the entire fishery increased from approximately $501 000 in 2005-06 to almost $571 000 in 2006-07 while average per boat total cash costs rose from $519 000 in 2005-06 to $590 000 in 2006-07. Labour, fuel and freight and marketing expenditure accounted for 57 per cent of total cash costs for all boats in 2006-07.
The proportional increase in average total cash receipts between survey years was similar to the proportional increase in total cash costs per boat. As a result, boat cash income remained relatively constant at -$18 000 per boat in 2005-06 and -$19 000 per boat in 2006-07.
The average rate of return to full equity (including the value of quota and licences) declined from -2.9 per cent in 2005-06 to -4.3 per cent in 2006-07. |
| Economic performance – fishery as a whole |
| Since 2001-02, receipts have fallen steadily at a faster rate than costs. As a result, net economic returns (including management costs) have been negative since 2001-02. In 2006-07, net economic returns were -$10.2 million. |
| Southern and eastern scalefish and shark fishery |
| Commonwealth trawl sector |
| Financial performance – per boat |
Average total cash receipts per boat rose from $673 000 in 2005-06 to $765 000 in 2006-07. Average total cash costs per boat also increased from $596 000 in 2005-06 to $634 000 in 2006-07. Crew costs, fuel costs, freight and marketing expenses and repair and maintenance costs accounted for 79 per cent of total cash costs in both years.
Average boat cash income increased from $77 000 per boat in 2005-06 to $130 000 per boat in 2006-07.
The average rate of return to full equity (including the value of quota and licences) increased from 6.2 per cent in 2005-06 to 9.5 per cent in 2006-07. |
| Economic performance – sector as a whole |
| Fishing receipts in the sector have continued to decline since 2000-01, falling from $83 million in 2000-01 to $49.2 million in 2006-07. However, after several years of negative returns between 2002-03 and 2004-05, the sector’s economic performance improved in 2005-06 and 2006-07 with net economic returns (including management costs) rising to $1.5 million and $3.5 million respectively. |
| Gillnet, hook and trap sector |
| Financial performance – per boat |
Average total cash receipts increased from $325 000 per boat in 2005-06 to $398 000 in 2006-07. Average total cash costs per boat also increased between these two years from $300 000 to $353 000 per boat in 2006-07 — an increase of approximately 18 per cent.
As a result, average boat cash income increased from $25 000 per boat in 2005-06 to $46 000 per boat in 2006-07.
The average rate of return to full equity (including the value of quota and licences) rose from 4.8 per cent in 2005-06 to 6.4 per cent in 2006-07. |
| Economic performance – sector as a whole |
| Net economic returns (including management costs) in real terms showed an increasing trend over the period from 1998-99 to 2003-04 and peaked in 2003-04 at $4 million. Net economic returns were lower in 2005-06 and 2006-07 at $1 million and $1.5 million respectively. |
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