CA

B

NE

T -

SU

BJE

CT

S F

OR

L

~,N

I D

ER

AT

I ON

,

3 D

ecem

ber

1990

,

CABI

NET

SUBJECT

DOT

z

0

ro m

m

No.

V. L

ATE

Decision

4.1

Involvement of S.A. Department of Fisheries in the Japanese/Australian

southern bluefin tuna fish farming research and development proposal.

APPROVED - SUBJECT TO MODIFICATIONS AS PROPOSED BY TREASURY & ENVIRONMENT & PLANN=NG D.F. 13/43

z

0

ro

CD ro

1

MINUTES forming ENCLOSURE to DF 13/43 (G/Dir/SBT.7)

FOR ENQUIRIES REFER

Mr R K Lewis

Phone: 226 0600

TO THE PREMIER FOR CABINET

SOUTHERN BLUEFIN TUNA FARMING PROPOSAL

1. PROPOSAL

That Cabinet endorse the involvement of the South Australian Department of Fisheries in the Japanese/Australian southern bl- uefin tuna (SBT) fish farming research and development proposal.

2. BACKGROUND

2.1 In recent months the Department of Fisheries has been pursuing an invitation and proposal from the Japanese Overseas Fishery Cooperation Foundation (OFCF), in consultation with the Australian Tuna Boat Owner's Association (ATBOA), to grow out southern bluefin tuna (SBT) in cages in South Australian waters.

2.2 The OFCF is a Japanese government organisation with.a charter for cooperative fisheries developmental/research with an international perspective.

3. DISCUSSION

3.1 The proposal and developments to date have involved a number of steps:

during 1989/90 - 200 juvenile SBT were captured in the Great Australian Bight, transported alive to Port Lincoln and held for' six months in the Lincoln Cove Dangerous Reef viewing platform sea pen. This developed and tested live capture and handling techniques as well as the potential for the "domestication" of SBT;

• during 1990 the OFCF and the ATBOA, encouraged by the success of this experiment, developed a proposal for a trial R & D program in 1990/91. Extensive consultation between the three parties (OFCF, ATBOA and SADOF) has taken place to identify appropriate areas of responsibility and commitments. The result of this consultation is reflected in the attached recommended Memorandum of Agreement (MOA);

2

• the draft Implementation Plan (IP) attached to the MOA was devel oped duri ng the recent tri p to Japan by Mr S Cl arke (SADOF) , Mr B Jeffriess (ATBOA) and Mr K Chang (consultant biologist to the ATBOA) . Apart for salary maintenance for Mr Clarke al l costs of this trip were met by the OFCF;

• it is proposed a tripartite MOA be signed to-provide for a pilot grow out program in Boston Bay, Port Lincoln. The necessary applications to the Aquaculture Committee and the Department of Marine and Harbors etc have been lodged and are currently being considered. All parties are aware that proceeding with the proposal is subject on these approvals.

3.2 In summary the MOA provides for:

the OFCF to provide the bulk of the funding for the proposal (estimated to be of the order of $2,000,000 over the period of the project) as well as scientific and support personnel;

the ATBOA to provide the bulk of the operational and support services and personnel. This includes proposed Commonwealth government grants of the order of $500,000;

the SADOF to provide scientific advice and support. The SADOF will take ownership of all equipment provided by the OFCF at the end of the project. This is substantial and includes the sea cages, vehicles, vessels, feed machinery etc. The value of this equipment could be of the order of value $800,000;

3.3 Subject to successful results from the R & D program, it is proposed that the ATBOA pursue full scale SBT grow out operations in South Australia. It is recognised by all parties that any extension to this degree will require additional approvals. The proposed MOA addressed by this Cabinet submission is for the two and a half year R & D program only.

3.4 Cost

Costs to the government can be met from the Department of Fisheries current financial allocation.

Al other costs will be met by the OFCF and. the ATBOA as per the draft Memorandum of Agreement.

At the completion of the project, the Department of Fisheries stands to receive significant capital equipment - estimated at $800,000 purchase cost.

3.4 Staffing

No effect on government staffing. The involvement of Department of Fisheries personnel will be contained within existing staffing levels.

3

3.6 Consultation

Extensive consultation has been undertaken between representatives of the OFCF, ATBOA, Department of Fisheries, Department of Industry, Trade and Technology and the Crown Solicitor's Office.

Agreement has been reached between all concerned parties. Clause 10(1) Legal Professional Privilege

4. RECOMMENDATION

It is recommended that

4.1 Cabinet endorse the signing of the agreement by the Minister of Fisheries;

4.2 Cabinet approve the Department of Fisheries participation in the proposal.

(Lynn M F Arnold) MINISTER OF INDUSTRY, TRADE AND TECHNOLOGY MINISTER OF AGRICULTURE MINISTER OF FISHERIES MINISTER OF ETHNIC_AFFAIRS

t 1 t..i. •~ S h~

APPROVED

THIS AGREEMENT is made the day of 1990

BETWEEN:

THE OVERSEAS FISHERY CO-OPERATION FOUNDATION of Akasaka Twin Tower, 17-22 Akasaka 2, Minato-ku, Tokyo, Japan ("OFCF")

AND

THE TUNA BOAT OWNERS ASSOCIATION OF AUSTRALIA INCORPORATED, an association incorporated pursuant to the-Associations Corporation Act, 1985, of Unit 8, 1 Markey Street, Eastwood in the State of South Australia ("ATBOA")

AND

THE MINISTER OF FISHERIES, a corporation sole pursuant to the Fisheries Act, 1982, of 135 Pirie Street, Adelaide in the State of South Australia ("the Minister")

WHEREAS:

A. The parties acknowledge the need to most effectively utilise the

southern bluefin.tuna ("SBT") resource and the desire to further the

development of relations in the field of fisheries between Australia

and Japan.

B. OFCF and ATBOA have agreed on a framework to conduct a research project

to examine the feasibility of farming SBT in the State of South

Australia on the terms and conditions set out in this Agreement.

NOW THE PARTIES AGREE AS FOLLOWS:

1. Title of the Project

The project is designated as the "Collaborative Project" to Examine the

Feasibility of SBT Farming (hereinafter referred to as the "Project").

2. Subject of the Project

The subject of the project will be to conduct a research study on SBT

farming (grow-out).

3. Period of the Project

The Project shall continue from the date of signature to May 31, 1993.

However, the period of the Project can be extended or shortened subject

to agreement between the ATBOA, the OFCF and the appropriate Government

authorities.

4. Site of the Project

The Project will be carried out in the State of South Australia.

5. Implementation of the Project

The Project will be implemented by the OFCF, and the ATBOA according to

the Implementation Plan (hereafter referred to as the "Plan")

separately agreed between the OFCF and the ATBOA and attached as a

schedule to this Agreement. The Minister takes no responsibility for

and is not a party to the Plan which is agreed between the OFCF and

the ATBOA.

6. Tasks and Obligations

(1) The OFCF shall take the following actions at'its own expense:

(a) To dispatch the required number of experts to Australia for

the duration of the Project and for joint meetings as

required.

(b) In conjunction with the ATBOA, the OFCF will provide its

part of such equipment, feed and materials as are necessary

to implement the Project. Of the equipment and materials

provided by OFCF from outside Australia, all shall become

the responsibility of the ATBOA on a CIF basis at Port

Lincoln during the period of the Project. Of the equipment

and materials provided by OFCF from within Australia, all

~~l

shall become the responsibility of the ATBOA at the time

and place of procurement during the period of the Project.

During the period of the project, aforesaid equipment and

materials will be used only for the Project.

(c) During the period of the Project, keep and maintain a

detailed inventory of all equipment and materials provided

by OFCF from outside Australia and from within Australia,

including, but without limiting the generality of the

foregoing:-

(i) floating fish holding facilities

(ii) motor vehicles

(iii) support vessels

(iv) environmental monitoring and other scientific

equipment

(v) food stock mixers

(vi) fish boxes

(vii) aerators

(viii) net washer

("the Inventory") to enable OFCF to fulfil its obligations

pursuant to this Agreement.

(d) At the conclusion of the Project, or earlier termination of

this•Agreement, take all actions and execute all documents

necessary to transfer the ownership of all equipment and

materials, as per the Inventory, to the Minister.

(2) The ATBOA shall take the following actions at its own expense:

(a) To provide technical and operational counterparts who will

co-operate with OFCF experts and officers.

(b) To provide workers necessary for the implementation of the

Project.

(c) To provide warehouse and freezer facilities to store and

maintain equipment, materials and feed used for the

Project.

(d) To provide for the Project the required number of Southern

Bluefin Tuna from the Australian SBT quota.

(e) To obtain all approvals, including necessary licences and

permits, required for the use of marine and other areas for

the execution of the Project.

(f) To obtain approvals for import into Australia of the

equipment and materials mentioned in 6 (1) (b-) and to bear

any duties or other charges payable including storage and

internal transportation fees.

(g) To bear any income tax or other charges on any remuneration

or living expenses of OFCF experts and their families.

(h) To bear any taxes and any other charges applicable to

personal effects, household effects and baggage of OFCF

experts and their families.

(i) To arrange the issue of visas and other approvals required

for entry to and exit from Australia of the OFCF experts

and their families.

(j) To find residence for the OFCF experts and their families.

(k) To fully indemnify OFCF experts against any claims

resulting from acts or omissions performed or made in the

course of their duty in Australia, excluding where such

claims are wholly or partly attributable to the personal or

professional negligence, misrepresentation or wilful

misconduct by OFCF experts.

To provide office facilities for the OFCF experts.

To bear the costs of setup and removal of any equipment

from the Project's farm site.

(3) The Minister shall:-

(a) Nominate an officer of the Department of Fisheries who,

when available, shall attend joint meetings of OFCF and

ATBOA in relation to the Project.

(b) At the conclusion of the Project, or earlier termination of

this Agreement, accept the transfer to him of all equipment

and materials, as itemised in the Inventory.

(c) Provide scientific and management advice for the Project,

at a cost and upon terms and conditions to be agreed

between the Minister, OFCF and ATBOA.

(4) ATBOA and OFCF hereby acknowledge that the Minister does not make

any commitments, accept any obligations, or take on any.

responsibilities except as provided in this Agreement.

7. Risk Bearing

(1) Risks which may arise to life and properties of the OFCF experts

and their families whilst engaged in implementation of the

Project shall be borne by the OFCF.

(2) Risks which may arise to life and properties of counterparts and

workers provided by the ATBOA and the SA Government will be borne

by each of those organisations, respectively.

8. Indemnity

ATBOA shall indemnify the Minister and the State of South Australia

against any loss, liability, cost, cl.aim, action, demand or expense

arising out of or in connection with this Agreement except such as may

result from the default or negligence of the Minister or the State of

South Australia or that of their or either of their authorised agents,

officers or employees.

9. Project Management Committee

For the purpose of smooth and effective implementation of the Project,

the OFCF and the ATBOA shall set up a Project Management Committee to

review the ongoing management of the Project. The Minister may

nominate a representative to attend meetings of the Committee where he

considers it appropriate.

10. Final Report

The OFCF and the ATBOA shall jointly prepare half-yearly reports and a

final report within six months of completion of the Project. The

Project Management Committee shall be responsible for preparing these

reports; however the ATBOA will ensure that the reports are completed.

The Minister may nominate a representative to participate in the

preparation ,of reports if he considers it appropriate.

11. Others

(1) Matters not set forth in this Agreement shall be decided through

negotiation.

(2) Any disputes or differences that may arise between OFCF and the

ATBOA in connection with interpretation of this Agreement shall

be resolved by mutual consent. The Minister does not accept any

responsibilities or obligations except as provided in this

Agreement. --

(3) This Agreement shall be governed by and construed in accordance

with the law for the time being in force in the State of South

Australia and each party irrevocably and unconditionally submits

to the jurisdiction of the courts of the State of South

Australia.

(4) Details of the research, funding and administrative arrangements

will be contained in the Implementation Plan, agreed to between

OFCF and ATBOA.

In WITNESS WHEREOF, the parties hereto have caused this Agreement to be

executed in triplicate in English by their duly authorised persons.

The Common Seal of the OVERSEAS

FISHERY CO-OPERATION FOUNDATION

was hereunto affixed in the

presence of:

President

The Common Seal of the TUNA BOAT

OWNERS ASSOCIATION OF AUSTRALIA

INCORPORATED was hereunto affixed

in the presence of:

President

The Common Seal of the MINISTER OF )

FISHERIES was hereunto affixed ) 'The Minister of Fisheries

in the presence of: )

AS OF 11/22190

DRAFT

IMPLEMENTATION PLAN FOR THE SOUTHERN BLUEFIN TUNA FARMING PROJECT TO BE CARRIED OUT BY THE OVERSEAS FISHERY COOPERATION FOUNDATION

AND THE GOVERNMENT OF SOUTH AUSTRALIA

AND THE TUNA BOAT OWNERS ASSOCIATION OF AUSTRALIA

_This Implementation Plan (hereinafter referred to as "the Plan") has been prepared based on the "MEMORANDUM OF AGREEMENT BETWEEN THE OVERSEAS FISHERY COOPERATION FOUNDATION AND THE GOVERNMENT OF SOUTH AUSTRALIA AND THE TUNA BOAT OWNERS ASSOCIATION OF AUSTRALIA" concluded among the above three Parties and hereinafter referred to as "OFCF", "SA Government" and "ATBOA" respectively.

1. SUBJECT OF THE PROJECT The subject of the Project will be to conduct a feasibility study on SBT farming (grow-out).

2. PERIOD OF THE PROJECT, The Project shall continue from the date of signature to May 31, 1993. However, the period of the Project can be extended or shortened subject to agreement among the Parties.

3. SITE OF THE PROJECT The Project will be carried out in Boston Bay at port Lincoln (see Attachment Two). The use of the site shall follow the procedures laid down in the Aquaculture Development Application by the Parties, as approved or modified as required by the Planning Act, the Crown Lands Act and the Fisheries Act. Among other things, this includes the following:

(1) The site will be marked in accordance with the requirements of the Department of Marine and Harbors.

(2)* A comprehensive monitoring program will be undertaken at the site. It will assess water quality and sediment characteristics resulting from waste accumulation and dispersal, along two transects which are perpendicular to each other and bisect the site.

(3) The possibility of moving TFNs will be assessed so that the Project Parties can develop a contingency plan for dealing with plankton blooms if these should occur at the research site or in relation to other fish farm ventures in South Australia.

EIVED FROM 8135824539 11.27.1999 16:39 P. 5

(4j Only government approved antifouling compounds will be used on the nets of the enclosures and chemical treatment of the fish will only be undertaken after seeking veterinary advice and notifying the appropriate government authorities.

(5) Predator netting, if found necessary, will be installed after liaison with the appropriate government authorities.

(B) The site will be frequently inspected for removal of any dead fish and these disposed ashore.

(y)

Net washing may occur on land adjacent to the Port Lincoln docks, or any other approved site. All wastes resulting from this operation shall be disposed of at a suitable site on land.

(8) If the monitoring program detects any significant detrimental effect, the stocking density will be reduced to a level determined by Department of Fisheries to minimize the impact to an acceptable level.

(g) When the area is no longer used for aquaculture it shall be returned to its original state, with all structures being removed. Cost of such reinstatement and removal is to be borne by the ATBOA.

4. STRUCTURE OF SITE

(1 ) Molding Areas

(a) At all times henceforth the fish holding areas on the site shall be referred to as the "Tuna Farming Area" (TFA),

(b) The experimental Project shall initially have three circular TFA's of agreed diameter and depth. At least one of the three shall be a different diameter to maximize the experimental nature of the Project, for example, on stocking densities.

(c) The exact materials to be used in each TFA will be agreed between the Parties, and improved over time as required.

(d) The TFA's will be constructed in Port Lincoln to generate employment in the region.

(e) The exact place and method of installation of the TFA's on the allocated site will be decided by the Project Management Committee (hereinafter referred to as the PMC), as approved by government authorities.

-2-

EIUED FROM 8135824539 11,27.1990 15:40 F, 6

(f) Regular check for fouling of the TFA's will be made.

(2) Capture of Wild SBT

(a) The pole and line vessels of Port Lincoln fishermen shall be used to catch and transport the young SBT for the Project. At least one vessel will be dedicated to bringing In fish and will carry the Project experts. Special catching and landing techniques will be developed to maintain the health of the fish.

(b) After using various techniques to quieten the fish, they will be placed in the fish tanks of the vessels and transported to the site. Studies will be carried out on the tanks to determine the appropriate stocking density, wall colours, aeration and lighting.

(c) At the site, studies will be made on the best way to transfer the fish from the tanks to the TFA's. Each fish shall be checked for its health. Only those fish assessed to be healthy shall be retained for grow-out.

(d) Before placing in the TFA's, fish may be tagged by an agreed method.

(e) There will be intensive supervision of the fish for an agreed period after the fish are released into the TFA's-

(3) Grow-out Process

(a) The methods, quantity and times of feeding will be decided by the PMC on a flexible basis. The type of issues to be considered include water temperature, optimum feeding times, age of fish, feeding costs, the need to minimize wastes and the need for studies on growth patterns. A general guideline is that the average daily intake of a mixture of wet and dry feed is around 3.% of the body weight of each fish. The actual content of the feed will be flexible on an ongoing basis, taking into account availability and the need for studies of conversion ratios.

(b) Studies on important issues-such as growth rates, fat and oil content, meat colour and market acceptance, will be made by harvesting of an agreed number of fish on a regular basis.

(c) Any indication of abnormal mortality rates shall be investigated immediately to identify the cause and appropriate action taken.

-3-

EIVED FROM -8135824539 11.27.1990 16:42 P. 7

(4) Environmental Studies

(a) A comprehensive environmental monitoring program is a central part of the Project.

(b) The program will assess water quality and sediment characteristics resulting from waste accumulation and dispersal, along two transects which are perpendicular to each other and bisect each site. A sampling program, developed in consultation with the SA Department of Fisheries, will be used to determine the distance between sampling and photographic points. Initially, the factors which are to be measured at three month intervals include nitrogen and phosphorus concentration, sediment particle size and organic content, Eh, pH, oxygen concentration and changes to the benthic communities.

(5) Other Issues

(a) Ownership of Fish: As the fish will be supplied by ATBOA, they will at all times remain the property of the ATBOA, although decisions on ,harvesting will be made by the PMC.

(b) Insurance: The ATBOA shall endeavour to insure the equipment used in the Project, but not the fish.

(c) Access to the site: Access to the site by other than Project staff will be allowed only with the approval of the ATBOA and or OFCF.

(d) Information: No information regarding the Project shall be released to any person unless it is with the approval of the PMC. AH contact with the media in Australia regarding the Project can only be through the .President of the ATBOA or their delegate. Ongoing and final written assessments and publications of the Project will be the property of the Project Parties.

(e) Budget: The annual and total ongoing budget for the Project shall be set by January 31 each year and reviewed regularly within each year. OFCF and ATBOA will submit their proposed budgets to the PMC for its

consideration and based upon the total budget, will decide the extent of the Project in the following years. All accounts and their reconciliation will be sent to the office at ATBOA who shall be responsible for providing a financial statement each three months to the Project Parties,

M

Reproductive Studies: An agrood number of fish will be retained for life cycle studies, breeding and other related issues.

-4-

EIUFD FROM 8135824539 11.27,1990 16:43

P. 8

(6) Attachments

These are,

Attachment One

Attachment Two

Attachment Three

Attachment Four

Attaohment Five

Attachment Six

Attachment Seven

Attachment Eight

Attachment Nine

Project Site - with Depths

Project Site

Shipping Areas

Approved Site Specifications

- Bottom Characteristics of Site

Preliminary Drawing of Tuna Farming Area (TFA)

Equipment needed for Project

Personnel Involved in Project

Work BetWeen Now and Beginning of Project

_S-

:CEIOED FROM 2135324539 11,27,1990 16:44 P.