A critical analysis of New Zealand's policy disallowing foreign investment in New Zealand fish quota: A dissertation submitted in partial fulfilment of the requirements for the degree of Bachelor of Resource Studies (Honours) at Lincoln University

Abstract

During the 1970s the New Zealand fishery was dominated by foreign fishing vessels. The introduction of the Fisheries Act 1983 marked the beginning of a phasing out of foreign fishing effort in New Zealand waters. The Act, and its amendments, ban foreign ownership of New Zealand fish quota. However, this policy seems contrary to the general government stance on overseas involvement in the New Zealand economy, which has been strongly encouraged since major economic reforms beginning in 1984. This study critically analyses the ban on overseas ownership of New Zealand fish quota. The study asks if there are valid reasons for the ban on overseas ownership of New Zealand quota, what benefits might be gained from foreign ownership of New Zealand fish quota and what problems might be associated with overseas ownership of New Zealand fish quota. The dissertation argues that the case for foreign investment in New Zealand fish quota is heavily dependent on the price New Zealand firms can get for fish quota. Investment is likely to be beneficial to the New Zealand economy as a whole if it is controlled adequately through the Overseas Investment Commission. The stance on overseas investment in other sectors of New Zealand's economy is also applicable in the fishing industry. However, careful consideration needs to be given to the social costs of potential loss of employment in the fishing industry.