Use and Development in the Southland Coastal Marine Area: Discussion Document

Purpose

1. The purpose of this document is to generate discussion on significant issues with use and development in the Southland coastal marine area (CMA).1 The discussion document:

 outlines the regulatory requirements for managing use and development in the Southland CMA;  highlights the importance of the CMA to tangata whenua;  summarises values associated with the CMA;  provides a brief overview of use and development in the CMA;  discusses significant issues with current use and development; and  seeks feedback from stakeholders on the issues raised.

Introduction

2. Southland’s coastline is 3,400 kilometres long, which is the longest of any region in New Zealand. Historically, the coast has been very important to Southland, providing food for early Māori and European settlers, creating trade opportunities (sealing, whaling, and fishing), and enabling transport of Southland produce (including meat, wool, and dairy products) overseas.

3. Today, Southlanders’ connection to the coast remains significant, with 54 percent of the population (approximately 50,000 people) living within five kilometres of the sea.2 The Southland CMA is valued for a variety of reasons including recreation (such as swimming, surfing, and boating) commercial purposes (for example, fishing and aquaculture), and to house critical infrastructure (such as port facilities).

4. For the purposes of this paper, Southland’s CMA has been be divided into three smaller areas with broadly similar characteristics; Southern Southland, Fiordland, and Stewart Island.

5. The Fiordland coastline is largely unmodified with outstanding natural character. There is a small area of development at the head of Milford Sound that primarily services the tourist industry. The principal issue with use and development in Fiordland is the high volume of tourism occurring in the fiords.

Right: Breaksea Sound (Shaun Cunningham)

1 The outer CMA boundary is the edge of New Zealand’s territorial sea, at 12 nautical miles from shore, while the landward boundary is the average spring tide high water mark, known as Mean High Water Springs. 2 2006 Census data. http://archive.stats.govt.nz/browse_for_stats/population/Migration/internal-migration/are-nzs-living- closer-to-coast.aspx 1

6. The Southern coastline consists of a mix of sandy/pebble beaches and rocky outcrops, and is dotted with townships from Colac Bay to Curio Bay. The most significant structures along the coast are wharves. These range in size and impact from the Bluff Island Harbour wharves, located on 40 hectares of reclaimed land, to the single wharf at Waikawa used occasionally by fishing boats. Although a broad range of activities occur along the coastline, Environment Southland is not currently aware of any significant issues associated with use and development in the Southern coastline.

7. Stewart Island, the third largest island in New Zealand, is dominated by unmodified outstanding coastal landscapes popular with walkers and tourists. There is a small township, Oban, in Halfmoon Bay. The main development in Stewart Island’s CMA is the infrastructure associated with the aquaculture industry in Big Glory Bay, and various wharves at Halfmoon Bay, Golden Bay and Ulva Island. An issue has arisen in recent years with the establishment of shark cage diving off Stewart Island. Concerns have been raised about the potential conflict with other uses of the CMA, such commercial pāua diving.

Regulatory context

8. The following section provides an overview of the regulatory requirements and documents that are relevant to the management of use and development in the Southland CMA.

Resource Management Act 1991

9. The Resource Management Act 1991 (RMA) requires the sustainable management of natural and physical resources, that enables people to provide for their social, economic, and cultural wellbeing and their health and safety. Under the Act, the preservation of the natural character of the coastal environment, and the protection of outstanding natural features and landscapes, are matters of national importance (section 6) and must be provided for in the management of the coast.

10. The relationship between the RMA and the Fisheries Act 1996 was recently considered in the High Court.3 The Judge held that regional councils can impose controls over fishing to manage the effects or externalities of fishing that are not already subject to a Fisheries Act control. However, the Judge commented that the ability of regional councils to provide for matters not controlled under the Fisheries Act “does not open the door to carte blanche regional council regulation of the adverse effects of fishing on the aquatic environment”. Instead, the legality of control in disputed areas will need to be worked out “at the finer grain” through the plan-making process.4

11. Therefore, as the case law currently stands, the RMA could be used to control the effects of fishing that are not already managed by the Fisheries Act. However, the nature of the controls and how they may be applied is still to be determined. In addition, the High Court’s decision is being appealed by the Attorney-General (discussed later in this paper).

Marine and Coastal Area (Takutai Moana) Act 2011

12. The Marine and Coastal Area (Takutai Moana) Act 2011 creates a new regime for recognising and providing for the interests of New Zealanders in the CMA.

3 Attorney-General v Trustees of the Motiti Rohe Moana Trust [2017] NZHC 1429 and [2017] NZHC 1886 4 Ibid and https://www.russellmcveagh.com/insights/august-2017/resource-management-update-august-2017 2

13. Three types of customary interests are recognised under the Act: participation in conservation processes; protected customary rights; and customary marine titles.5 To date, only one application for a customary marine title has been granted in New Zealand, to Rakiura Māori.

Right: The Customary Marine Title for Rakiura Māori applies to a small 200m landing area which provides the only access to Pohowaitai and Tamaitemioka Islands (part of the Muttonbird Islands), located to the south west of Stewart Island.

14. Five additional applications to recognise customary rights in Southland have been submitted to the High Court. Two apply to the Ruapuke Island group, and the other three apply to the entire Southland CMA. These will be processed by the Court, along with over 150 applications nationwide, in the coming years.

15. Under the Act, resource consent applicants are required to notify and ‘seek the views’ of customary marine title applicants before lodging a consent application. The views of the customary marine title applicants are relevant to the assessment of the environmental effects, and may be considered by Council in deciding whether or not to grant the resource consent.

16. In general, the recognition of customary rights does not provide the customary right holder with the ability to exclude the public from the area covered by the customary right. However, customary marine title applicants may seek to include recognition of a wāhi tapu (a sacred place), which potentially could restrict public access to a particular area depending on the prohibitions or restrictions applied for in the customary marine title.

Fiordland (Te Moana o Atawhenua) Marine Management Act 2005

17. The Fiordland (Te Moana o Atawhenua) Marine Management Act 2005 recognises the Fiordland marine area’s national and international importance, unique marine environment, distinctive biological diversity, and outstanding landscapes and cultural heritage.

18. The Act was part of the Government’s response to the Fiordland Marine Conservation Strategy (2003),6 which promoted a new approach to protecting the Fiordland marine environment through collaboration and integrated management.

5 Participation in conservation processes – enhanced participation by tangata whenua in processes run by DOC. Protected customary rights – an activity, use or practice that has been exercised in accordance with tikanga since 1840, and continues to be exercised in a particular part of the common marine and coastal area, in one way or another. Customary marine title – means a customary interest in land with rights similar to freehold ownership, but cannot be sold. 6 The Strategy was developed by the Guardians of Fiordland, a group of local Fiordland users and community representatives concerned about the escalating pressures on the Fiordland Marine Area. 3

19. The Fiordland (Te Moana o Atawhenua) Marine Management Act:

 establishes the Fiordland Marine Area and eight7 marine reserves in the area;  implements measures to help preserve, protect, and sustainably manage the area;  establishes the Fiordland Marine Guardians to provide advice on managing the area;  promotes co-operation between the Guardians and management agencies; and  acknowledges the importance of kaitiakitanga.

From left to right: Snakestar on black coral, brachiopods, and red coral in Fiordland (Department of Conservation)

20. At the same time, the Government: amended fisheries regulations for non-commercial harvesting in Fiordland; excluded commercial fishing from large areas of the internal waters of Fiordland; and implemented a range of other non-legislative methods, such as developing biosecurity measures to keep marine pests out of Fiordland.

21. Schedule 12 of the Act made several amendments to the Coastal Plan to reflect the changes brought about by the legislation, including:

 recognising the Fiordland Marine Guardians;  providing for the management of marine reserves;  recognising the biosecurity risks; and  protecting unique Fiordland habitats.

Tītī Islands Regulation

22. Rakiura Māori have gathered muttonbird chicks from the islands off Stewart Island since the earliest times. The muttonbirding rights of Rakiura Māori for 36 islands, known as the Titi Islands, were guaranteed by the 1864 Deed of Cession of Stewart Island, and recognised in the Ngāi Tahu Claims Settlement Act 1998 (Schedule 106).

23. In 1978, the Tītī (Muttonbird) Islands Regulations gave certain Rakiura Māori (those who held a succession order from the Māori Land Court) joint ownership and right of access to 18 of the Tītī Islands. Under the regulations, muttonbird chicks can be harvested each year from 1 April to 31 May.8

New Zealand Coastal Policy Statement 2010

24. The New Zealand Coastal Policy Statement 2010 (NZCPS) was gazetted after the majority of the Coastal Plan was made operative, therefore the Plan does not give full effect to the NZCPS. Most of the Objectives and Policies in the NZCPS are relevant for use and development in the

7 In addition to the two marine reserves that existed prior to the Act. 8 https://teara.govt.nz/en/titi-muttonbirding/page-1 4

Southland CMA. Policies 13 and 15 are likely to have the greatest influence on the provisions relating to Stewart Island and Fiordland, given the natural character and landscape values of both areas.

25. Policies 13 and 15 specify that the preservation of natural character and natural features and landscapes should include identifying and assessing natural character and natural features and landscapes of the coastal environment, and incorporating corresponding provisions into planning documents. In this regard, Environment Southland, Southland District Council, and Invercargill City Council have contracted a coastal landscape study of Southland that will assess, describe, and map natural character and natural features and landscapes within the coastal environment. The final report will inform the review of the Coastal Plan.

Southland Regional Policy Statement 2017

26. The Southland Regional Policy Statement 2017 (SRPS) provides strong direction for the management of activities in the CMA by requiring:

 the identification of locations within the coastal environment where particular activities and use and development are: - appropriate, - inappropriate, and - inappropriate without a resource consent process;  protection of outstanding natural character and outstanding natural features and landscapes; and  protection of natural character and natural features and landscapes from significant adverse effects.

27. The SRPS identifies, as a key issue, “inadequate protection of the coastal environment that results from cumulative and precedent effects not being considered.”

Left: Development in Milford Sound (Barry Harcourt)

Regional Coastal Plan for Southland 2013

28. The Coastal Plan provides a framework for managing the Southland CMA that aims to:

 promote the sustainable management of the CMA;  minimise the conflicts between the users of the CMA;  provide for communities’ social, economic and cultural wellbeing; and  maintain, or enhance the opportunity for future generations to enjoy and use the coast.

5

29. Part 4 of the Coastal Plan describes the fundamental principles that apply to the CMA, and establishes the basis for promoting sustainable management of the coast. The principles include:

 Protection of values – identify the values of the CMA that require protection and ensure the degree of protection is commensurate with the significance of the value; and  Cumulative effects – obtain an appropriate level of use in the CMA, particularly in areas where remoteness, wilderness and tranquillity are significant components of the environment.

30. In terms of cumulative effects, the Plan considers that each coastal area has a ‘carrying capacity’, where “the number and type of activities and the number of people participating in those activities do not adversely affect the sustainability of the existing environmental values.” The Plan links the management of cumulative effects to the protection of values, “It is therefore important to strike an appropriate level of use for the area (which could include “no use”) so that the coastal values of all users are largely protected.”

Right: International cruise ship with visible emissions. [Tim Holland]

31. The Coastal Plan’s management of cumulative effects was considered by the Environment Court in 2005. Cruising Milford Sound Limited appealed against Environment Southland’s decision to decline its application to add a second vessel to its tourist operation at Freshwater Basin.

32. Council argued that the number of vessels in Milford Sound was creating cumulative adverse effects, and there should be a restriction on the number of vessels operating in Milford Sound. Judge Smith held that under the Coastal Plan, “allocation issues (i.e. the number of commercial surface water activities in Milford Sound) [are] not to be a relevant criteria in the examination of applications for consent in Milford Sound”.9 Although the Plan includes ‘Cumulative Effects’ as one of its fundamental principles and has numerous references to preserving Fiordland’s attributes and values, the Judge cited Policy 16.2.4 as the key provision guiding decision-making, “Place no limit on the amount of commercial surface water activity in Milford Sound.”

33. As a result, the appeal was upheld and Cruising Milford Sound Limited introduced a second boat to Milford Sound. In terms of future applications, Judge Smith noted that the “The concept of Council monitoring the matter is a clear reference to the potential for a change to

9 Cruising Milford Sound Limited v Southland Regional Council [2005] NZEnvC 165. 6

the Coastal Plan to be introduced if the Council became concerned with the number of surface water activities in Milford Sound.”10

Fiordland National Park Management Plan 2007

34. The Department of Conservation’s Fiordland National Park Management Plan 2007 provides for the integrated management of the Park. Visitor management is a key part of the Plan and concessions are required for operators wanting to use the Park for any activity. The Plan also controls tourism operations and other activities that access the Fiordland CMA via Fiordland National Park, for example guided kayaking. The Plan places conditions and number limits on operators and visitors associated with activities in the CMA.

35. The Fiordland National Park Management Plan is due to be reviewed, and it will important for reviews of the Management Plan and the Coastal Plan to promote a consistent approach to the management of the Fiordland area.

Stewart Island/Rakiura Conservation Management Strategy and Rakiura National Park Management Plan (2011-2021)

36. The Department of Conservation’s Rakiura National Park Management Plan contains objectives and policies for the effective management of Rakiura National Park. The Plan addresses the preservation of indigenous species, habitats, ecosystems and natural resources, historical and cultural heritage, and public benefit, use and enjoyment of the Park. Anyone who wishes to carry out a trade, occupation or business within Rakiura National Park requires a concession or other authorisation from the Department of Conservation.

Right: Rakiura National Park. The area outside the park is conservation land, Maori- owned land, and private land, including the township of Oban. (Department of Conservation)

Ngāi Tahu Perspectives on Use and Development in the CMA

37. Te Mimi o Tū Te Rakiwhānoa (Fiordland CMA) and Rakiura/Te Ara a Kiwa (Stewart Island/Foveaux Strait Coastal Marine Area) represent areas of historical and cultural identity for Ngāi Tahu. The importance of these areas is recognised in the Ngāi Tahu Claims

10Cruising Milford Sound Limited v Southland Regional Council [2005] NZEnvC 165. 7

Settlement Act 1998 (Schedule 102), as Statutory Acknowledgements recording the relationship between Ngāi Tahu and the Southern coast and seas.

38. There are many important Māori archeological sites along the Southern coastline, including historical permanent settlements on the coast at Waikawa, Bluff, Riverton, and on Ruapuke Island. Of national importance were the argillite outcrops on the Bluff Harbour Islands, which were a source of adze material. The remains of pre-European adze factories which supplied stone tools to Māori nationwide are still evident within the Harbour confines.

Left: Argillite hogback adze found at Endeavour Inlet, Queen Charlotte Sound. (Canterbury Museum)

39. Historically, Fiordland was visited by Ngāi Tahu and Ngāti Māmoe, who had various routes and nohoanga (camping areas) for the purpose of gathering koko-tangiwai (a softer type of pounamu) and manu (birds), particularly the kakapo. Martin’s Bay was the site of an old Māori settlement, located to control pounamu resources.

Right: Engraving of Māori at Dusky Sound, mid 1770s (William Hodges)

40. Stewart Island has a long history of Māori habitation, although coastal settlements were not large. The island’s highest mountain, Mt Anglem/Hananui is spiritually important to Māori. As noted earlier in the paper, harvesting tītī (muttonbird) from the small surrounding islands has long been a tradition, and was an important source of food and a major commodity for trade.11

41. Today, Ngāi Tahu’s main interest in the activities in the Southern coastline is balancing growth and development with the protection of cultural landscapes (and the values placed on these), and the impact of activities on the natural environment.

42. Key management issues for Ngāi Tahu in Fiordland include:

 carrying capacity of areas such as Doubtful and Milford Sounds with respect to numbers of boats on the water;  pressure on fisheries from an increasing number of charter boats;  impacts on coastal water quality, including from the discharge of sewage from boats;  noise pollution; and

11 https://teara.govt.nz/en/stewart-islandrakiura/print 8

 cumulative effects on the remoteness, wilderness, intrinsic values, natural character and amenity values of the Fiordland coast arising from the increase in numbers of vessels operating in Fiordland.

43. Of particular importance for Ngāi Tahu in relation to Stewart Island, and other off-shore islands, is retention of vegetation and fauna, species recovery and translocation, pest management, issues of biosecurity and tourism, and protection of surface and groundwater.

Values of the Southland CMA

44. Southlanders, New Zealanders, and international visitors value the Southland CMA for a variety of reasons. It is important that these values are identified, and the impact of use and development assessed, to ensure the review of the Coastal Plan sets a sustainable framework for use and development in the CMA.

45. The Coastal Plan provides a comprehensive description of values associated with sub-sections of the CMA, which fall under the following headings:

 marine mammals and birds;  ecosystems, vegetation and fauna habitats;  natural character and landscape values;  areas of significant coastal value;  heritage and archaeological values;  coastal landform and associated process;  recreational and amenity values;  commercial values;  education values; and  anchorage value.

46. The values of the CMA are diverse and are often distinct to certain areas. In 2005, Environment Southland commissioned a comprehensive review of Fiordland values. The values with resounding national and international significance were identified as:

 wilderness;  remoteness;  landscapes;  recreation and tourism;  natural qualities; and  ecological values (land and marine).12

47. For people surveyed in Milford Sound in 2010, the most highly valued opportunity was viewing the natural scenery and landscape. On a scale between 1 (not at all important) and 7 (very important), all user groups scored the opportunity to view natural scenery and landscapes between 6.6 and 6.9. For most visitor groups, the next most important opportunities were viewing wildlife, and experiencing peace and quiet, and the least important was fishing.13

12 Enviro Solutions NZ Ltd. Community Vision for Fiordland – Analysis of documents for definitions, values, and outcomes. 2005. 13 Kay Booth. Milford Sound / Piopiotahi User Monitor 2010. 2010. 9

Right: Milford Sound looking towards Mitre Peak (Boffa Miskell)

48. For the Southern coastline, recreational opportunities, including fishing, surfing, walking, swimming, seafood collecting, picnicking, and boating, are highly valued due to the accessibility and proximity of beaches to the region’s population. Oreti Beach and Riverton Beaches/Rocks are the most popular recreational spots in the Southern coastline.14 Commercial fishing is also important in the Southern coastline, particularly blue cod and Bluff oysters.

49. Stewart Island is highly valued for its outstanding natural landscapes, unmodified marine ecosystems, wealth of marine mammals and birds, rich human history, and coastal diversity. Commercial fishing and aquaculture are also important values for the island, along with recreation and tourism.

50. A 2012 survey of visitors to Ulva Island, which is situated in Paterson Inlet, indicated that visitors were highly satisfied with their experience. Over 95 percent of respondents indicated that they were able to experience nature and scenery, and natural peace and quiet. Respondents were generally not concerned about the effects of other visitor activities on their experience. Only six percent of respondents were annoyed by meeting commercial / guided groups, and 13 percent reported feeling crowded to some degree.15

Overview of Use and Development

Infrastructure

51. The most substantial development in the Southland coastline is the port facilities at Bluff Harbour. South Port’s operations encompass three main wharf structures: Tiwai Wharf and causeway that service the aluminium smelter; Town Wharf which primarily services the petroleum industry (part of the wharf has now been closed for remedial work); and Island Harbour, a 40 hectare man-made island that provides a suite of marine services including berthage, cargo facilities, and warehousing. In 2017, South Port received 312 ship calls that involved the transportation of over 3 million tonnes of cargo.16 This is up from approximately 2.5 million tonnes volume from 2012, and around 2 million in the early 2000s. South Port’s

14 Nick Ward. Environment Southland Recreational Bathing Survey. 2015. 15 Michael Harbrow & James Scarfe. Ulva Island Visitor Survey. 2012. 16 South Port NZ. Annual Report 2017. 10

main cargo flows (logs/NZAS/dairy exports/petroleum/fertiliser) are expected to increase further over the next four to five years.17 South Port has signalled significant investment in its infrastructure over the next 10 to 15 years to maintain current levels of service.

Left: Bluff Harbour facilities in 2010. The photo shows Tiwai Wharf and causeway (far left), Island Harbour (front), Town and Ferry Wharves (directly above Island Harbour), and the finger piers (situated between Island Harbour and Bluff township). (South Port)

52. South Port also manages the smaller wharves in the harbour, including Ferry Wharf and the finger piers which berth fishing, charter, and recreational vessels. There are six wharves on Stewart Island which are also managed by South Port, although none of these have permanent berthages. Riverton has a variety of small wharves (for loading/unloading and permanent berthage) that can berth approximately 40 vessels (a mix of commercial fishing, recreational, and charter boats). Southland District Council holds the coastal permits for the majority of the wharves, although the berths are privately owned.

53. Milford Sound harbour in Fiordland is much smaller than Bluff, but during the summer it is one of the busiest harbours in New Zealand, with over 130 vessel movements per day this season.18 The harbour facilities were upgraded in 2013, including a new breakwater and additional wharves, to deal with congestion during peak cruising periods. Eighteen commercial vessels operate out of the harbour at Freshwater Basin, with the majority offering tourist cruises. The wharf at Deepwater Basin permanently berths 16 commercial fishing vessels.

54. Deep Cove in Doubtful Sound has a small wharf that services the tourist industry and Meridian also has a small supply wharf. The outlets for the Manapouri power station’s two tailrace tunnels are also located at Deep Cove.

55. In addition to wharves, there are several sheltered moorings and anchorages throughout Fiordland and Stewart Island which are highly valued due to the lack of permanent port facilities and the exposed nature of the coast. Other structures in the CMA include a number of boat ramps and whitebait stands.

17 South Port NZ. Annual Report 2017. 18 Milford Sound Tourism Limited. 11

Tourism

56. Hundreds of thousands of tourists (domestic and international) visit Southland annually, spending over $600 million, and staying over one million guest nights every year.19 The CMA, particularly Fiordland, is a popular attraction for tourists visiting Southland, and many tourist activities in Southland are marine-based. The most significant use of the CMA for tourism is cruising.

Boat Cruises and Charters

57. Many businesses offer scheduled boat cruises around Fiordland and Stewart Island, and charter boats operate out of Fiordland, Stewart Island, Riverton, and Bluff. Charter boats can be booked for variable lengths of time and for a variety of purposes, including hunting, diving, fishing, kayaking, scenic and historical walks.

58. Local boat cruises and charter boats are one of the highest users of Milford and Doubtful Sounds. In each month of 2016, there were between 155 and 182 vessel day trips in Doubtful Sound, Thompson Sound & Crooked Arm (East of Turn Point).20 Milford Sound Tourism Limited are expecting around 750,000 cruising visitors to Milford this year (April 1 2017 to March 31 2018).21

59. Large international cruise ships visit Fiordland on a regular basis, and a few also travel to Stewart Island and/or Bluff. For the 2016/17 cruise ship season,22 88 cruise ships were scheduled to visit Fiordland (although nine cancelled due to weather).23 The ‘Environmental Partnership, Deed of Agreement between the New Zealand Cruise Ship Industry and Environment Southland’, which is currently being reviewed, manages access to Fiordland’s internal waters for large cruise ships.24 Under the Deed a marine fee25 is required to assist Environment Southland in managing Southland’s CMA.

60. The economic benefit from international cruise ships for the region is significant. Cruise ship expenditure in Fiordland and Bluff for 2016/17 was $6,575,000.26 The New Zealand Cruise Association estimated that in the same year Southland’s cruise ship port calls resulted in the employment of 201 people.27

Other CMA-based Tourist Activities

61. Other popular tourist activities that utilise the CMA include:

 Scenic flights – a number of operators offer scenic flights over Southland, particularly in Fiordland, which provide the opportunity for visitors to view the region’s landscapes and seascapes from the air. The Milford Sound aerodrome has on average about 8,500 aircraft landings per year, although the actual number of landings each year is

19 Venture Southland. Southland Tourism Key Indicators. November 2017. 20 Environment Southland. 21 Milford Sound Tourism Limited. 22 From October to April. 23 Harbourmaster. 24 Over 1,000 gross tons. 25 The fee is 0.35 cents per total gross registered tonnage of cruise ship (capped at 90,000 gross tonnage), plus GST. 26 https://www.stats.govt.nz/information-releases/tourism-satellite-account-2017. (The New Zealand Cruise Association reported that there were 102 cruise ship port calls for the Southland region, which added an estimated $9m to the economy – the reason for the divergence in the figures is unknown.) 27 http://newzealandcruiseassociation.com/wp-content/uploads/2017/11/NZCA-EIR_Summary-2017.pdf 12

dependent on the weather (in a bad year the airport may only operate for 100 days, whereas in a good year it could be 250 days). Most of the landings to Milford Sound aerodrome are associated with scenic flights.28

 Kayaking – Guided kayaking trips are available from Milford and Doubtful Sounds in Fiordland and Halfmoon Bay in Stewart Island. In Fiordland, the Department of Conservation allows only four commercial kayaking concession operations and there are also restrictions placed on the size of groups, and on the number of trips permitted per week. Currently, there are two operators providing guided kayak trips in Fiordland.

Left: Guided kayaking in Milford Sound (Southern Discoveries)

 Diving – A range of guided diving experiences are offered in Milford and Doubtful Sounds and Stewart Island, including shore, boat, wreck, and wall diving. There are two companies providing diving opportunities in Fiordland. In 2008, shark cage diving commenced off Stewart Island, with two operators offering cage diving with Great White Sharks.

 Walking and tramping - Walking and tramping through Fiordland and Rakiura National Parks is popular, with hundreds of thousands of tourists walking the tracks every year. While all of the tracks are located within the National Parks, several walks pass along, or end on the coastline. For example, the Milford Track ends at Sandfly Point, the Hollyford Track ends at Martins Bay, and several sections of the South Coast and Rakiura Tracks follow the coastline. In other areas of the Southland coast, day-walkers and backpackers are also common.

Right: Rakiura Track on Stewart Island (Department of Conservation)

 Wildlife watching – Guided tours are available in the Catlins, Stewart Island, and Fiordland to view a variety of animals including sea birds, penguins, New Zealand sea lions, fur seals, dolphins and whales. The Milford Sound Underwater Observatory,

28 Department of Conservation. 13

located in Harrison Cove, allows people to see the unique underwater Fiordland environment and sea life, without needing to go scuba diving or snorkelling. It is New Zealand’s only floating underwater observatory and is accessible by boat.

Recreation and food-gathering

62. The coast has been an important part Southlanders’ lives in terms of recreation and food- gathering for generations. Southlanders partake in a variety of activities in the CMA including fishing, surfing, swimming, sailing, collecting shellfish, boating, walking, photography, picnicking, diving, and rowing. It is estimated that there are 250,000 visits to Oreti Beach each year.29

63. A recreational bathing survey of Southland found that swimming, diving, and boating were the most popular water-based activities in the region.30 The survey also found that 64 percent of water users collect seafood, including flounder, crayfish, paua, pipi, mussels, and toheroa.

64. Unlike commercial vessels in the Fiordland CMA, which are controlled under the Coastal Plan, recreational vessels (including ‘super yachts’) can visit and moor in the fiords as a permitted activity for a variety of activities including sightseeing, diving, and fishing.

65. Recreational fishing is managed by the Ministry for Primary Industries under the Fisheries Act. Around 30 amateur charter vessels (vessels that take recreational fishers for a fee) operate seasonally in Fiordland and the Ministry for Primary Industries considers that the amount of recreational fishing in Fiordland is increasing. There are also about 15-20 amateur charter vessels that operate out of Bluff, Riverton and Stewart Island, and recreational fishing is also increasing throughout in these areas, partly due to increased Chinese tourism. 31

66. Oreti Beach is one of the few beaches in the country where people can legally drive their vehicles. In 2010 and 2011, at least 90,000 cars visited the Beach each year, an average of 256 vehicles per day.32 The Beach plays host to the Indian Motorcycle New Zealand Beach Racing Championships, which is part of the Burt Munro Challenge held in Invercargill each year. As a result of concern about the adverse impacts human activity can have on the beach, a Memorandum of Understanding between the Department of Conservation, Environment Southland, Invercargill City Council, the Ministry for Primary Industries, the New Zealand Police, Southland District Council, and Waihopai Runaka, has been adopted to manage the beach.

Left: Oreti Beach (www.southernscenic route.co.nz)

29 Ecosystem Consultants. Recreational use of Oreti Beach, Southland, New Zealand, 2010 – 2012. December 2014 30 Nick Ward. Recreational Bathing Survey. 2015. 31 Ministry for Primary Industries. 32 Ecosystem Consultants. Recreational use of Oreti Beach, Southland, New Zealand, 2010 – 2012. December 2014. 14

Commercial Fishing

67. Commercial fishing and the associated environmental effects is governed by the Fisheries Act and the Fisheries (Southland and Sub-Antarctic Areas Commercial Fishing) Regulations 1986.33

68. In total, there are 79 registered fishing boats based in Southland, with the majority berthed at Bluff. Many boats are multiple purpose and may fish for blue cod and catch rock lobster (using crayfish pots). There is a small fleet of coastal trawlers plus a core of about four specialist vessels using set nets as the primary fishing method. There are also many vessels from other regions, especially Port Chalmers and Timaru, that fish seasonally in Southland (typically larger trawlers targeting deep water stocks like Ling).

69. In Fiordland, as a result of the Fiordland Marine Conservation Strategy (2003), the fishing regulations were amended which resulted in the prohibition of commercial fishing within the internal waters of Fiordland. In the external waters, rock lobster is the primary catch. Approximately 70 rock lobster fishing vessels regularly work in the Fiordland area. The bulk (approximately 850 tons) of the Southland commercial rock lobster catch is caught in the Fiordland area, although this varies seasonally due to market conditions.

70. Most commercial fishing vessels come to Fiordland from Riverton or Bluff for particular fish at specific times of the year (for example, tuna from April to mid-June), although 16 rock lobster boats are berthed at Deepwater Basin. In terms of other species, there are around 10 vessels engaged in pāua and kina diving in Fiordland. There is limited long line activity off the Fiordland coast involving approximately eight main vessels (seasonal), and some set net activity occurs on the southern tip of Fiordland.

71. The following table shows the main fish and shellfish species in Southland and the Total Allowable Commercial Catch for New Zealand, or the proportion that is caught in Southland.34

Species Total Allowable Comments Commercial Catch Ling 3955 t Approximately 600-700 t is caught by Southland vessels Stargazer 1264 t Approximately 500 t is caught by Southland vessels Blue Cod 1239 t Value approximately $28-35 million Rock Lobster 1070 t Recent 100t increase in TACC Kina 455 t Another 100t from out of area is landed to the Southland based processor Paua (Combined) 239 t Bluff Oysters 10 million oysters Eels caught in 35 t Estuaries (Shortfin) School Shark 743 t Mostly caught by Southland based vessels Rig 150 t Proportion caught in Southland from a bigger stock Flatfish 300t Approximate proportion caught in Southland from a bigger stock Hapuka 451 t Not always caught Tarakihi 152 t Elephant Fish 170 t

33 New Zealand fishing boundaries extend further out to sea than the CMA. 34 Ministry for Primary Industries. 15

72. Under the quota management system there is unlikely to be significant increases/decreases in fishing activity unless there are variations in fish or shellfish populations. There has been very little change in the Total Allowable Commercial Catch for Southland over the past five years.

Issues With Use and Development

Fiordland Tourism

73. The Fiordland coastline is one of the most iconic and scenic landscapes in New Zealand. Its immense natural character, wilderness values, and largely unmodified seascapes and landscapes are nationally and internationally renowned.

74. Fiordland’s vast natural beauty has made it a popular tourist destination, with visitor numbers increasing significantly over the past 10-15 years. Around 450,000 people visited Milford Sound in 2005. By 2017, visitor numbers had increased to approximately 850,000.35 Tourist (domestic and international) expenditure has also increased rapidly. In 2014/15, tourism expenditure in Fiordland was $176 million.36 In under three years, expenditure had increased to $239 million.37

75. The most popular tourist activity in Fiordland is local cruises that primarily explore Milford and Doubtful Sounds. From 1998 to 2018, cruising passenger numbers increased by 135 percent, and on average 6.8 percent each year. Although the longer term numbers vary considerably, over the past three years, passenger numbers have increased by 16-19 percent each year. Milford Sound Tourism is expecting a 3 percent increase in cruising visitors to Milford for the year ending 31 March 2019, compared to the 2018.38 Currently, there are up to 18 boats offering tourist services in the fiord. The number of international cruise ship scheduled visits has increased by 250 percent in 12 years, as shown in the following table.39

35 Department of Conservation. 36 For the year ending March 2015. Monthly Regional Tourism Estimates, Ministry of Business, Innovation, and Employment. 37 For the year ending November 2017. Venture Southland. Southland Tourism Key Indicators. November 2017. 38 Milford Sound Tourism Ltd. 39 Please note schedules for 2018/19 are incomplete at this time. 16

76. When the Coastal Plan was made operative in 2006,40 the impact of tourism, particularly on natural character, was identified as a key issue for Fiordland. The provisions in the Plan attempted to balance the use of Fiordland with the preservation of its natural character and outstanding natural features and landscapes by ensuring that “commercial and non- commercial use, of any given area of Fiordland…is compatible with its carrying capacity”.41

77. Concerns with tourism’s impact on the CMA in Fiordland include:

 the loss of wilderness values, perceptions of overcrowding and congestion, and a reduction in natural character values;  adverse impacts on wildlife and habitats as a result of high numbers of vessel movements; and  pollution as a result of discharges, noise, and rubbish.42

78. The use of Fiordland for tourism activities remains the biggest management issue for the region. It is timely to reconsider “how much use is too much use?” in light of current and potential future visitor numbers.43

Stewart Island Shark Cage Diving

79. Great white sharks are fairly common off Stewart Island, as the islands support large colonies of fur seals which are a major food source for the sharks. 178 individual great white sharks at Stewart Island have been identified, about 24 percent of the adult East Australian – New Zealand population.44 Cage diving to view great white sharks near Stewart Island began in 2008. Operators lower people into cages in the sea, and lure sharks to the cage through the use of shark ‘attractants’ and baiting.

Left: Divers view a great white shark at close range from a submerged cage off Stewart Island (Mark Enarson)

40 The Coastal Plan was made operative in 2006, except for the marine aquaculture provisions (section 15) which needed Ministerial sign-off. 41 Section 16.2.2 of the Coastal Plan. 42 In 2003, the Great Fiordland Coastal Clean-up was initiated. For the next five years, 20–50 volunteers worked together for 10-day trips to remove rubbish and debris scattered along Fiordland’s coastline. The rubbish removed over the years was estimated to be between 500 to 600 cubic metres, and was made up of lost fishing gear, rubbish discarded from large off-shore vessels, and large numbers of plastic water bottles, mainly from New Zealand but from as far away as Fiji. 43 Section 3.2.12 of the Coastal Plan. 44 Department of Conservation. 17

80. Great white sharks are protected under the Wildlife Act 1953, and in 2014 the Department of Conservation introduced a permit system aimed at reducing the risk of harm to great white sharks. Two businesses were issued permits to operate at one site, the surrounding waters of Edwards Island, eight kilometers from Halfmoon Bay.

81. In 2017, the High Court held that the Department of Conservation does not have authority to issue permits for shark cage diving, therefore shark cage diving has reverted back to being an unregulated activity.45

82. There is strong opposition to shark cage diving from significant parts of the Stewart Island community, as well as from commercial pāua divers.46 This is largely driven by concerns that shark behavior is being modified through the use of attractants and bait, which puts other water users at an elevated risk of shark attack. Anecdotally great white sharks have been noted to be more interested in boats and acting more aggressively since the introduction of shark cage diving.47

83. Shark cage diving businesses argue that shark attacks are an occupational risk for pāua divers irrespective of shark cage diving, and there is no evidence of any association between shark cage diving and elevated risk of shark attack when cage diving follows best international practice.48

84. In 2015, the Department of Conservation contracted an international review of the science surrounding shark cage diving. The review found it was unlikely that great white sharks exposed to cage diving activities are any more or less likely to present a risk to water users.49 However, the review also highlighted that “recreational and commercial in-water activities undertaken at sites where shark cage diving occurs…carries considerable risk of shark encounters….Thus it is advisable that such activities are separated in time and space.”

Managing the effects of fishing under the RMA

85. As noted earlier, the High Court has ruled that regional councils may impose controls over fishing to manage the effects or externalities of fishing on the wider environment. The Attorney-General contested the decision, and in March this year, the Court of Appeal granted the Attorney-General leave to appeal on the following questions of law:

 Does s 30(2) of the RMA only prevent a regional council from controlling activity in the coastal marine area if the purpose of those controls is either to manage the utilisation of fisheries resources or to maintain the sustainability of the aquatic environment as a fishing resource?  Can a regional council exercise all of its functions under the RMA concerning the protection of Maori values and interests in the coastal marine area provided that they are not inconsistent with the special provision made for Maori interests under the Fisheries Act 1996?  To what extent, if any, does s 30(2) of the RMA prevent a regional council from performing its function to maintain indigenous biodiversity under s 30(1)(ga)? In

45 PauaMAC5 Incorporated v Director-General of Conservation [2017] NZHC 1182 [2 June 2017]. 46 http://www.doc.govt.nz/news/issues/shark-cage-diving/ 47 https://www.theguardian.com/world/2016/jan/29/jaws-new-zealand-town-attack-great-white-sharks-cage-divers 48 PauaMAC5 Incorporated v Director-General of Conservation [2017] NZHC 1182 [2 June 2017]. 49 Barry Bruce, CSIRO Marine & Atmospheric Research. A review of cage diving impacts on white shark behaviour and recommendations for research and the industry’s management in New Zealand. November 2015. 18

answering this question, is it correct to say that it is only appropriate for a regional council to exercise this function if it is strictly necessary to achieve that purpose?  Did the High Court err by setting aside the declaration made by the Environment Court and should it have made a different declaration?50

86. The outcome of this case could have ramifications for all regional councils New Zealand. In terms of the potential implications for Southland, it is not currently known whether there are marine areas in Southland that are adversely affected by fishing, and may require protection beyond that provided by the Fisheries Act.

Conclusion

87. For large parts of the CMA, levels of use and development remain largely unchanged from when the Coastal Plan was made operative, and as such, many of the management tools in the Plan may still be appropriate.

88. However, increasing tourism numbers are placing pressure on some of Southland’s most outstanding CMA landscapes and seascapes. New activities, and expansion of existing activities, can also create conflict with other existing users of the CMA.

89. It is critical that the review of the Coastal Plan establishes a framework that balances use and development in the Southland CMA with the need to preserve natural character, and protect outstanding natural features and landscapes.

Feedback

90. We would like to hear your thoughts about use and development in the Southland CMA, and would be particularly interested in your views on the following issues:

 Are there any uses or development in the Southland CMA that you are aware of that are not referred to in this paper?  What, if any, are your concerns about current use in the Southland CMA?  What, if any, are your concerns about current development in the Southland CMA?  Do you have any concerns about potential future uses or development?  Do you think there is a limit to the number of activities and visitors that the Fiordland CMA can accommodate? If so, what do you think is the best way to determine how much tourist activity the Fiordland CMA can accommodate?  What is the best way to manage competing demands for access to Milford Sound (for example, small local cruise boats vs large international cruise ships)?  What are your views on how to resolve conflict between shark cage diving and other activities in the CMA?  Do you think there are any marine areas in Southland that require additional protection from fishing methods, over and above that provided by the Fisheries Act?  Do you think the Memorandum of Understanding for Oreti Beach is sufficient to protect the social, environmental, and cultural values of the beach?  Do you think there are uses and development in the CMA that require monitoring to ensure any limits of acceptable change are not being exceeded? If so, what do you think would be the best type of monitoring to undertake?  Do you think the management approach in the Coastal Plan has been a success? Why?

50 Attorney-General v Trustees of the Motiti Rohe Moana Trust [2018] NZCA 67. 19