Acwa Annual Report 16th 2004

16th ACWA Annual Report 2003-2004

16th ACWA Annual Report 2003-2004

Board of Directors Director Ms Bronwyn Harries Appointed Oct 2002

Experience and Special Responsibilities Has been associated with the commercial fishing and aquaculture industries for in excess of 25 years. Managing Director of Cape Seafarms Pty Ltd which is to establish a commercial prawn farm operation at Heron Point, Exmouth Gulf. Bronwyn has been a member of ACWA almost since inception, has been an active board member for many years and Chair for four years.

Vice Chair

Mr. Rick Scoones Appointed Oct 2003

Has an MSc in Zoology and about 20 years of experience in the aquaculture and fishing industries. He is an independent aquaculture consultant with specialties in research, environmental issues and administration of aquaculture, and has expertise in pearl oysters, abalone, scallops, marron and ornamental fish. He has held positions on the ACWA Board since its inception in 1987, including five years as Chairman from 1995 to 2000.

Director

Mr. Glenn Dibbin Appointed Oct 2003 – 1 year term

Has extensive experience in Mussels Aquaculture in Australia over the past 21 years. He is founding partner in Blue Lagoon mussels, Western Australia’s leading mussel producer. Serves as Chair of Western Australia Mussel Producers Association. Previously worked in Western Australia in the Scallop, Crayfish And Prawn Commercial Fishing Industry.

Director

Mr. Carey Nagle Appointed Oct 2003

Has 18 years experience in the aquaculture industry as a marron & silver perch farmer. He is director of MGA since 1995 and is presently the vice chair of the Marron Growers Association, plus sits on its Industry Development planning, research and marketing sub-committees. Four the last 4 years has been employed in the Department of Fisheries FRDC Marron research project.

Director

Mr Murray Konarik Appointed Oct 2003

General Manager of the MG Kailis Group Seafood Division, working across all aspects of the business from catching/resource management to the sale of a diverse range of seafood product to the international and domestic markets. Prior to joining the Group worked as a Chartered Accountant in public practice for eight years.

Director

Dr. Bruce Phillips Appointed Oct 2002

Currently an Adjunct Professor with the Muresk Institute, of Curtin University of Technology in Western Australia. From 1992-1996 was the Chief Scientist with AFMA and was involved in developing a research program for all Commonwealth managed fisheries, including trawl fisheries, finfish, sharks, tuna and prawns. Prior to this he spent 28 years as s scientist with the CSIRO.

Director

Mr Steve Parsons Appointed Oct 2003

Operations Manager and joint owner of Great Southern Marine Hatcheries Pty Ltd for the past 7 years. Previously worked in the commercial diving industry for 15 years and has also experienced time with the both pearling and tuna farming industries. Steve is currently a member of WAAAA (Western Australian Abalone Aquaculture Association) and serves as the WA representative on the FRDC (Fisheries Research & Development Commission) Abalone Sub-Committee.

Director

Mr Shane McLinden Appointed Oct 2003

Executive Director of Southseas Abalone Limited and SAM Abalone Pty Ltd – an operating abalone farm in Port Lincoln S.A.; executive director of Two Rocks Abalone Pty Ltd – a company undertaking a significant research project. Director of the Australian Abalone Growers Association Inc and Director of WA Abalone Aquaculture Association.. B. Engineering (UWA); Diploma of Company Directorship.

Director

Mr Greg Jenkins Co-opt in May 2003

Greg Jenkins has worked in the aquaculture industry in Australia since 1981. During this time he has worked on pilot farms for freshwater prawns in remote areas of Far North Queensland and the Kimberley, WA; as the company biologist for a large wild-capture prawn company in Shark Bay; and as a Research Biologist and Hatchery Manager with a private R & D company in Western Australia investigating the aquaculture potential of marine finfish.

Chair

Greg has been employed at the WA Maritime Training Centre since 1991 and as Manager of Aquaculture Research and Development since 1994 has led the development of the Aquaculture Development Unit's facilities and programs. Greg is Chair of the WA Sustainable Development of Marine Fishfarming Forum; Vice-Chair of the WA Fish Foundation; Secretary/Treasurer of the WA Marine Fish-farming Association; a Board Member of the WA Fisheries Research Advisory Board and the Aquaculture Council of WA and a member of the National Steering Committee for Inland Saline Aquaculture. Director

Pia Boschetti

Resigned May 2004

Executive Officer

Mr Dan Machin

Executive Officer of ACWA since Feb 2004. Has 14 years experience in aquaculture industry development. Held farm management position, Policy and Extension officer role in WA government, and training at Curtin and TAFE. BSc. (zoology and botany); Diploma in Business, Master in Aquaculture, Cert IV workplace assessment and small group training.

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16th ACWA Annual Report 2003-2004

Table of Contents Quick reference table of ACWA activities 2003-2004..............................................................................................................3 Chairman’s Report.....................................................................................................................................................................7 Directors Report ........................................................................................................................................................................9 ACWA’S Business Programs ..................................................................................................................................................10 Aquaculture for Profit .........................................................................................................................................................10 Aquaculture for People .......................................................................................................................................................13 Aquaculture for Tomorrow .................................................................................................................................................14 Corporate Services...................................................................................................................................................................15 ACWA Financial Report .........................................................................................................................................................17

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Quick reference table of ACWA activities 2003-2004 Aquaculture for People Project Member & Industry Communication

Strategy ACWA digest Bimonthly digest for members to facilitate timely two-way communication between members and the ACWA board.

Member & Industry Communication

Status Completed On going In progress

Develop a communication & training plan ACWA Website Redevelopment to improve efficiency and effectiveness of industry consultation and communication. Functional specification available upon demand Member & Industry Communication Member & Industry Communication

Conduct Members Survey ACWA news

Member & Industry Communication Member & Industry Communication

ACWA seminar and cocktail Party 2003 Develop a Memorandum of Understanding with the Department of Fisheries Develop and Industry Leadership Training

Human Development

Industry Promotion

Industry Promotion

2nd WA Coastal Conference to show case Industry’s Public Environmental review Document and Code of practices. Mussel Fest 2003

Completed On going October 2004 Published July 2004 in press Completed In progress. In progress Industry EOI and other sector associated being sought, as is matching funding. Completed

Completed 7 March 2004 Coordinated the ACWA, WAMPA and DoF Stand for Mussel Fest Completed

Industry Promotion Minister Aquaculture Cocktail Party

Industry Promotion

Australasia Aquaculture 2006 Conference Bid

Industry Promotion

World Aquaculture 2012

ACWA has received feedback from industry and Parliamentary services on how to improve the event. These have been collated and will be used in planning next years event. 6 April 2004 No ADC support. ACWA to bid for 2008 event In progress Meet with WAS in Hawaii. ACWA to meet with WAS, NAC and WAS SE asia chapter at Australasia Aquaculture 2004, Sydney. WAS events Coordinator is to be invited to Perth in October 2004

Industry Promotion

WA Onshow

Industry Promotion media releases Human Capital

Promoted Brussels Food Expo (Glen Dibben, Sue Bamess, Glenn Dibben and Barry Hall are planning to attend)

ACWA ED to visit Bali hosts in June whilst on holidays. In progress Focus: Aquaculture as part of WA sustainable regional (socio-economic) future. Booth 412 is booked. On going 5 releases Completed.

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16th ACWA Annual Report 2003-2004 European Mussel Processor tour for Ireland and the Netherlands. Use network to arranged contacts in Ireland and Europe an itinerary for WA mussel growers.

Aquaculture for Profit Project Representation Aquaculture development and Legislative Review Implementation Strategy Industry Development, Investment and Marketing Solutions project. Members Saving Programs

Strategy See page 12 of the Annual Report Coordinate industry submissions

Status On-going Completed

Secure Ministerial support and Funding. Commence project Decrease business cost to members. Improve membership value

Completed On going Englehart Consulting, business consulting, specialling in agribusiness on members discounts with marketing, Public relations and business advice. Rate to ACWA and its members will be at $25/h discount.

Investment Attraction Resources Commercial Loan for Abalone Aquaculture Off target Spray Drift impacts on Aquaculture, Human and Environmental Health

National Residue Survey

Training

Circulate DoTars Investment information and self-assessment available from ACWA.

Attraction tools are

Preparation on submission and delegations to the Minister in consultation with the Minister. Attend CCG develop industry action plan raise the matter with the ADC & Minister

Negotiated a fair NRS cost based on food safety risk of Freshwater crayfish destined for the EU.

Marronprofit training Day with DoF Pearlprofit product development and training workshop.

20% off Fish Farm International Journal $40 off Austasia Aquaculture Magazine Completed

In progress Completed Completed Completed ACWA to implement industry action plan in 2004/05 Ongoing ACWA has negotiated with AQIS that NRS is not warranted based on risks and compliance evidence collected since 1994. AQIS is for freshwater crayfish NRS is no longer required. AQIS is to negotiate this position with EU. AQIS is to develop a NRS 2 that could integrate into industry’s QA programs. Completed12 March 2004. Completed Attended. Ongoing.

Challenger TAFE Maritime Industry Training Advisory Group Industry Collaboration

Assist industry to develop cooperative marketing arrangements and generically brand product where appropriate.

In progress in AMWING pearl sector

Department ADO exit strategy

Work with DOF to develop a realistic exit strategy for ADO program to ensure industry and the WA public is best served.

Completed

Policy and Legislation

Meet with DoF to progress issues of importance. Key issues to date: 1. 2. 3. 4.

Exemption Application fees for Aquaculture Broodstock Aquaculture Leases Risk based environmental reporting on licence conditions Aquaculture long term Licences fee

Projects agreed to are being implement eg. MOU between ACWA and DOF. On going. ACWA arranged a tour of the Cockburn sound mussel farms for key Dept. of Fisheries policy and licencing staff. The visit was useful and enabled WAMPA to highlight the issues to enable growers to secure tenure in KGT. Once secured WAMPA will be in a better position to expand production to meet new markets. The ED has written to the Dept. following the visit 4

16th ACWA Annual Report 2003-2004 5.

Industry Comment on Aquaculture & pearling application 6. Cockburn Mussel Leases & Compliance 7. WASQAP & 8. Food Safety Standards 9. Translocation of ornamental fish 10. Online production returns 11. Bioregional Marine Planning 12. Advocacy with specific ACWA members.

ACWA regarding amendments to improve this sector aquaculture licence conditions. ACWA is still awaiting comment from FPA on the revised WAMPA oil spill plan.

Coordinated Industry response to Aquaculture Licneces DoF policy DPI & DPC policy: Murray Darling Species Translocation of hairy Marron TIAC NCC DoIR (commercial loans)

Food Safety

Industry Develop Planning for Freshwater Crayfish Sector

Develop food safety plans relevant to industry sectors as required by the New Food Regulations developed by ANZFA.

In progress

Develop a post harvest handling code of practice for the mussel industry.

Completed

Champion with MGA & YPA the need for industry Development plan. As part of Minister’s Aquaculture review recommendation 35.

Ongoing

Seek support from DoAg through the Minister

MGA have a IDP steering commit ACWA raised the matter with ADC: and it has support. ACWA has written to the Minister. On going

Criminal Code Changes

Work with government to promote and change theft culture in specific regions of WA.

NFIS Supply Chain Training

Promote and get industry to attend this workshop.

Completed

As part of Minister’s Aquaculture review recommendation 35.

Arranged a Meeting with Stuart Clarke of National Food Strategy regarding its supply chain mentoring program and Food Innovation grants with WAMPA chair. On 9 March 2004, Chris Bleach, Glenn Dibben and Geoff Peck attended the awareness workshop.

Aquaculture Development Council (MAC)

Represent industry at ADC in an observer capacity.

On going Papers supplied to EO of ADC

Provide a background paper to EO of the ADC detailing industry issues affecting the development of Aquaculture industry in WA.

Aquaculture for Tomorrow Project Incident Response

Strategy Attend: Acheron Crayfish Plague Disease Simulation SQMI Incident response simulation

Status Completed ACWA in 2004/05 to develop for all industry a incident response kit- who to call and when, what to do and when. Version 1.0 is drafted.

Eco-Efficiency Response Simulation Abalone EMS

Environmental Code of Practice for the Mussel and AMWING pearl industry. Project manage

Ongoing 5

16th ACWA Annual Report 2003-2004

Animal Welfare

ED attended a meeting with WAFIC regarding industry preferred legislation for fish welfare issue. The ACWA and WAFIC position was that COP need to voluntary and not enshrined in the legislation. ACWA is awaiting a position paper from DoF.

First Draft is circulated for comment. On going

FRDC ESD reference group.

Participate and provide WA industry views

On going. The key outcomes • That Aquaculture remains part of the ESD reference group. • The final draft of aquaculture ESD is available for comment until the end of the month; and • Seafood services Australia is funding a National Aquaculture EMS coordinator. The person will be located in ASIC.

Environmental Management Systems

Explore opportunities for WA based industries to participate in ESD case studies.

2 companies are enrolled in the National Aquaculture Council EMS case studies.

Develop training initiatives in EMS for businesses.

In progress

Implementation of the aquaculture industry safety and health code

In progress as module of the EMS

Corporate Services Project Strategic and Business Plans

Peak Body Funding – Levy

Strategy Implement Minister Recommendation No. 6 review ACWA operations with due consideration to Exhibit 2 of the Lendich report. Prepare levy discussion paper for release at the 2004/05 Annual General Meeting. The paper will need to address constitutional and business model changes

Assoc. Secretariat

Finance, Database and Office management, EO support

Status Completed New strategic business plan has been developed for 2004-2009. In progress. Note that this paper was released and circulated on the 28 October 2004. On going Held ACWA AGM YPA agm AMWING AGM SPA meeting re: creating a inland Aquaculture Association to cover species of finfish cultivated in inland production systems.

On going.

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16th ACWA Annual Report 2003-2004

Chairman’s Report There are few in this room that would not agree this has been a tough year for aquaculture. Global factors are placing pressure on market prices in many sectors and operational issues such as low rainfall, higher fuel prices and transport costs, etc. have thrown up challenges to most if not all aquaculturists. It is the nature of farming and an indication of the special qualities of persistence, determination and hard work ethics that are needed to overcome such obstacles. Equally it is a reflection of the quality people we have within our industry, those who don’t give up and who are prepared to face the challenges head on until they are resolved. We face challenges not just on the farm or on the lease but within the legislative and development frameworks we operate as a collective industry. Earlier this year the long awaited final “Strategy for the Development of the Western Australian Aquaculture Industry” prepared by Zelco Lendich and the “Report on the Review of Legislative Arrangements in the Aquaculture Industry in Western Australia” were released. The Minister agreed to implement the recommendations contained within the Lendich Report, principally the handover of the development programme undertaken previously by the Department of Fisheries to an Aquaculture Development Group. The Aquaculture Development Group Board which will oversee this programme is essentially the previous Aquaculture Development Council with the Department of Fisheries having representation on that Board, along with an independent Chair and representatives from Industry, Marketing, Finance and other Government related departments. The ADGB are to report directly to the Minister. The progress of the ADG awaits the release of the Stage 1 Report from the consultants who are working for ACWA on a 5 year Implementation Strategy for the areas of investment attraction and product marketing, areas which were considered high priority by the consensus of contributors to the Industry Review process during 2003. This report, currently under review by the Implementation Strategy Steering Committee, will provide both a blueprint for the ADG to progress these areas of development and will also highlight the requirements for the type of ADG personnel and structure required to progress these initiatives and the support which will be needed from the other principal stakeholders, i.e. the Minister, the Department and the industry representative body, ACWA. The agreement with the Minister to undertake the Implementation Strategy utilising funds from the ADF was hard fought and, whilst agreed in principal since November 2003 it was not until end May 2004 that final approval was received and the work could commence. The importance of this work and the fact that its findings will form the basis for the programme to be provided by the ADG is a strong indication that our persistence on this issue has been justified. We are indebted to Russell Barnett for his exhaustive efforts in relation to the investment attraction area of the Strategy work and Jacqui Porter and her colleagues from Braincells for their product marketing studies. A special thanks also to Murray Konarik from the ACWA Board who represents industry on the Steering Committee, together with the Department and ADC representatives and our own Dan Machin who acts as Executive Officer and has expended an enormous amount of time and energy in ensuring a timely and comprehensive outcome is reached. As when major structural changes such as that of the ADG occur, with the usual delays whilst all aspects are defined and resolved, there are negatives which need to be recognised and overcome. One of these of course has been the removal of much of the support previously provided by the Department of Fisheries through the Aquaculture Development Officer programme, and indeed the Aquaculture Programme in general. We are all feeling as individuals and as an industry the effect of delays and non-service by the Department in a number of areas and the timely set up of the ADG must be a key priority. Previously the Department handled something like 10,000 enquiries per annum from the community and industry through their website and by direct contact. This hole in communication has been recognised by ACWA and we are working to overcome the shortfall through a comprehensive new ACWA website which will provide a portal of comprehensive information for both industry and interested parties within the community. To undertake such a commitment takes funding and we are currently negotiating with the Minister to finance this work. An application has been made to the DBIF and we await the final response to our request. ACWA is not in a position currently to finance this or any other aspect of the fallout from the ADO exit, especially in light of the Minister’s reduction in our core funding from $101,000 in 2002/03, $90,000 in 2003/04 and now to $80,000 in 2004/05. Just what, if any, future

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16th ACWA Annual Report 2003-2004

funding we can expect from the Government is still to be advised after negotiation and effort on the part of the ACWA Board and Executive. In order to implement the increased areas of responsibility coming from not only the Development Review but also the ADO Exit Strategy from the Department, we must find more real time on the part of our Executive Officer and Board and more funding to handle the direct costs of each issue, whilst still maintaining an effective community strategy to our members and all stakeholders. Membership subscription does not cover these needs and we have subsequently applied to the DBIF for additional funding to maintain our core activities until the end of the financial year. Again, the surety of this funding is not secure and we must therefore maintain strict controls on our spending for the rest of the year until agreement is reached. If funding is not available from DBIF then ACWA will need to cut costs and non-core services until alternative sources of funding can be accessed. Part of the fallout of this process has been the necessity to cut the administrative services previously provided on a casual basis by Val Sheahan. This has been regrettable, especially in view of her commitment and loyalty to the Council and its members and the contribution she has made to the smooth running of our offices over the past years. We know that all of you will wish her well in her new endeavours and we do hope that funding will be arranged in the near future which will allow us to have these services reinstated to assist our very busy Executive Officer. The efforts required on the part of the ACWA in relation to the Development Review process and rearrangement of Department of Fisheries services has meant that we have not been in a position to accurately progress the industry levy as agreed at our 2002 meeting. Whilst sheer time constraints have been a key factor in this delay, we have also not been able to finalise until recently just what services the industry association need to, or indeed will be able to, provide to industry. An extensive amount of work on business planning and business modelling has been undertaken by the Board and, in particular, our Executive Director to ensure that ACWA progresses in the best interests of its industry and with a strategy which provides the optimum service and benefit to our members. A draft levy paper has been prepared and we hope you will all consider it carefully and provide comment to ACWA to ensure that your particular requirements can be met. Which brings me to Dan Machin, our Executive Officer since February this year. Dan took over from an institution in Western Australia. Simon Bennison was of course known to all as the face of our industry for several years and it was felt at the time that he would be sorely missed. At the same time the requirement on ACWA to totally review and revise all aspects of its operations following the Development Review and essentially navel gaze and think tank a new business model and programme which will take the aquaculture industry’s representative body through the next stage of the industry’s development has been an enormous task and one in many ways left to Dan Machin to implement and run. He has taken on this task with unequalled enthusiasm, hard work, determination and I am sure at times must have asked himself why he took it all on. The Board have unanimously appreciated all his efforts and believe that if all of industry could attack the issues of importance which they face with the same enthusiasm and commitment we will have a bright future. On behalf of the Board and our members, Dan, we thank you for all your hard work. Again, our Board have been asked to provide a lot of effort, advice, common sense and certainly private time, to achieve what ACWA has achieved during the year. I believe the Director’s Report is a mere indication of the vast array of achievements and endeavours we have all worked through during the past year. My sincere thanks to each of them for their contributions. Our thanks to Pia Boschetti, who came on the Board last year but was unable to continue in the position for the whole term. We appreciated her contribution very much and of course a very special thanks to the old stalwart, Greg Jenkins, who was seconded to fill the position and who has provided invaluable support and assistance as we have all learnt to expect from him. As you will be aware I have decided not to renominate for the position of Chairman this year. I have been Chairman for the past four years and believe that it is time that ACWA has a new face as it faces its coming challenges. Time constraints have been a major factor in my decision, I have a farm to build with luck in 2005, and I do not believe I can seriously and effectively give what is required of a Chairman of this very important association. I have enjoyed the challenges over the past four years in particular, and indeed in my many years as a board member to date, and hope that you will give the new chairman the same level of support I have received from our members and our board in particular. There is much to be done, our very future role and survival is under threat and we cannot afford to let our peak industry body lose its place in the framework and process which drives our businesses. We must work together to reach our goals and your real support and recognition of ACWA to undertake this work is paramount for your own success. Bronwyn Harries (2004)

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16th ACWA Annual Report 2003-2004

Directors Report Your directors present their report on the Aquaculture Council of Western Australia Inc. for the financial year ended 30 June 2004.

Directors The following people were Directors of ACWA during the financial year and up to the date of this report: Chair

Ms Bronwyn Harries

Director

Mr Murray Konarik

Vice Chair

Mr. Rick Scoones

Director

Dr. Bruce Phillips

Director

Mr. Glenn Dibbin

Director

Mr Steve Parsons

Director

Mr. Carey Nagle

Director

Mr Shane McLinden

Director

Mr Greg Jenkins

REVIEW OF OPERATIONS Overview In the year to June 30 2004, income was $199,134.24. Of this $9,350 was attributable to member’s subscriptions and $15,000 from secretariat services purchased by four sectors associations (AMWING, YPA, WAAAA and WAMPA). The remaining $174,784.24 came from the Minister of Fisheries ($90,000) though the Development and Better Interest fund and various projects undertaken and managed by ACWA ($84,812.24). The principal contributor to the loss was the cost of accrued annual and long service leave of the departing Executive Officer. The latter, however, had been allowed for and set aside in previous years. Consequently, the ACWA has finished the year in a challenging financial position for 2004/05. The importance of this is that with a reduction of DBI funding to $80,000 for 2003/04 and the completion of many of its projects, the Council needs to improve its financial position so that it can provide its members with a strong platform from which to pursue the interests of industry. Principal Activities The principal activities during the financial year ended 30 June 2004 comprised of the representation and promotion of the Western Australian Aquaculture Industry. Results The net profit/loss of -$42,088.39

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16th ACWA Annual Report 2003-2004

ACWA’S Business Programs Aquaculture for Profit Progress was made during the year towards our goal of creating a world best practice environment for aquaculture industry development in Western Australia. The journey of course has no end and much still needs to be done. Aquaculture Development and Legislative Review Both the Lendich and Ciffolilli draft and final reports, and the subsequent Minister’s recommendations, were released in the 2003/04 year. ACWA worked tirelessly, attending workshops and road shows, preparing submissions to ensure that industry’s vision and its member’s interests were best represented and representing industry on the Steering Committee for this Review process. The Board is indebted to the whole of industry in providing time, effort and input into this key reform process. WA Aquaculture Implementation Strategy (5 year Plan) Industry Development, Investment and marketing Solutions This project, as outlined at the 2003 ACWA Seminar, is finally underway. After protracted negotiations with the Department of Fisheries and the Aquaculture Development Council (ADC), the ACWA secured funding from the Aquaculture Development Fund for this important project. This lengthy negotiation process took place despite unanimous support from the ADC at its November 2003 meeting. Final approval from the Minister was received on 26 May 2004. This took considerable effort, but is critical to ensure that the Western Australian Government provides world’s best practice for Aquaculture Development and provides industry and the new Aquaculture Development Group with a detailed road map for the next five years. The importance of this Strategy work is considered paramount by the Board to ensure industry has a structure from which to move to critical mass and commercial strength and as such agreed with the ADC to manage the project at cost, with no monetary or contributory benefit to the ACWA. This commitment is expected to involve 25% of the Executive Director’s time and a considerable input from each Board Member. Broodstock Exemption Fees The only mechanism by which licensed aquaculturists can take to independently fish for broodstock purposes is by way of a Ministerial Exemption. Until 17 February 2004, an application cost $110, from this date an exemption cost $1500. In recognition of the prohibitive costs ACWA wrote to the Minister in late April requesting that he reduce the application fee to $250. This request was on the basis of it being commensurate with the administrative workload. To date, ACWA is unaware of any response from the Minister. Aquaculture Leases Since the passing of the Omnibus Bill in December 2003, ACWA has worked tireless to get the Department of Fisheries to promulgate the Aquaculture Leases application and Ministerial Policy Guideline. This has involved submissions to the Minister and the Aquaculture Development Council. Regrettably at 30 June 2004 industry has not received the promised response by the Minister and the Department that the matter will be taken up as a matter of priority. Cockburn Mussel Industry Leases ACWA has been working with WAMPA to ensure that security of tenure for the lease sites in North and South Kwinana Grain Terminal and Southern Flats is achieved. ACWA arranged an “in field” meeting with key policy and licencing staff at the farms in Cockburn Sound. ACWA, WAMPA and the Department of Fisheries all attended. It also arranged an ADC briefing. Despite in principle support the Department has not made significant progress by 30 June 2004. Long Term Licences Despite government support and agreement on long term licences as a key area of importance in investment attraction, the ACWA has not been able to get Department of Fisheries to commit to a timeline. This is despite a formal recommendation on the matter requested by ACWA through the ADC.

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16th ACWA Annual Report 2003-2004

Spray Drift Off target Spray Drift impacts on Aquaculture is the number one issue for the inland aquaculturists, especially freshwater crayfish farmers, given its risks to impacts on food safety, quality assurance, market access, stock losses and most importantly human and environmental health. The ACWA has developed and is implementing an action plan to raise awareness and ensure legislative changes, that protect aquaculturists, are given drafting priority. To progress this issue ACWA has formed alliances with both the Pastoral Growers Association and the WA Conservation Council. Despite broad support as of 30 June 2004 within government, ACWA has not been able to secure commitment to bring elements of the Agriculture Management Bill relating to spray drift forward. A special thanks must go to Warren Moore who has been inexhaustible in assisting ACWA on this issue. Local Government Pak Regulatory risk at the local government is very high for Aquaculture ventures, especially in the Southern, Great Southern and Goldfields and Esperance regions. The delays in processing applications places considerable angst and uncertainty for applicants that impacts on investor confidence. To address this ACWA had drafted a local government pak. We are enormously indebted to Carey Nagle for his efforts to achieve the first and second drafts which have been completed by 30 June 2004. Theft of Aquaculture Stock The Criminal Code amendments to Section 370 were passed in March 2004. The changes mean that aquatic organisms such as marron had been included in the list of living things that could b deemed under law to have been stolen. This amendment will provide greater protection for marron farmers and other people with aquaculture projects in private waters on private property. Thanks to the lobbying efforts of the Marron Growers Association who assisted ACWA with its efforts. National Residue Survey For the past years the WA aquaculture industry have been undertaking tests as part of NRS under Directive 96/23/EC to allow market access to EC and other related markets. Given the results to date, and that non-fin fish aquaculture products are not included in the requirements in Chapter 3 of the Directive, ACWA has negotiated with AQIS for fresh water crayfish that no further tests are required and that AQIS will take this case to EC. The saving to these sectors $4500 per annum. Translocation Approval of ornamental fish The aquaculture ornamental fish offers an industry development opportunity. The ACWA has been trying to get a transparent, risk assessment based process implemented so that WA business can have consistency in the decision making and would see the adoption of “bio-security” facility. Submissions on Government Policy & Fisheries Management papers, leases, licences, variations and translocation applications ACWA provided 25 submissions over the 2003/04 year. The key submissions were on the translocation of Murray Darling species for recreational fishing and aquaculture, Food safety standards, Bioregional Marine Planning, Cape to Cape Marine Park and National Resource management Council Strategic plans. Memorandum of Understanding with DoF ACWA has been working with the Department toward developing a clear understanding of each other’s roles and responsibilities in pursuing aquaculture development in the State. As of 30 June 2004, a provisional version of the MOU had been developed. Commercial Loans for Abalone Aquaculture ACWA prepared a submission and represented the business to the Minister and the Department of Fisheries to facilitate the approval of the loan under the Innovation Investment Scheme. Industry Performance Statistics The publication of timely and accurate performance information is a key requirement for industry, government and the investment community to track the status of sectors and provide assistance with development. Presently, there is significant under reporting by industry and the Department of Fisheries takes too long to release production statistic summaries. These facts greatly impact on the ability to garner support by demonstrating industry growth. To improve the situation ACWA has been trying to get online reporting implemented by the Department to improve the efficiency and effectiveness. 11

16th ACWA Annual Report 2003-2004

Environmental Monitoring (EM) and reporting Given the costs of compliance with EMP at the early stage of a project’s development ACWA has been working with DoE and DoF to develop a EMP that is commensurate with the environmental risks of the stages of a project development. In addition, ACWA has been advocating the need for DoE to improve the efficiency and effectiveness by standardising licence conditions, make provision for online records and provide pro-forma EM plans for species sectors. Department of Fisheries Aquaculture Development Officer exit strategy ACWA worked with DOF to develop a realistic exit strategy for their ADO program to ensure industry and the WA public is best served. Regrettably, much of the agreed elements have not been implemented by the Department of Fisheries. Abrolhos Island Management Advisory Committee (AIMAC) Given the significant presence of aquaculture business on the Abrolhos Islands ACWA has commenced advocating for the need for a permanent position for Aquaculture on the AIMAC. The Minister has agreed in principle to this, however, ACWA needs to secure a timeline to complete this position. Research ACWA has assisted proponents with FRDC pre-proposals. Representation Positions Held By Directors and Executive of ACWA On Behalf Of The Organisation And Other Associations Bronwyn Harries National Aquaculture Council ACWA Industry Promotion subcommittee WAFIC Industry Profile Committee ACWA Finance subcommittee ADC Observer Shane McLinden Chair - Australian Abalone Association Seafood Enterprises Alliance

Murray Konarik ACWA Finance subcommittee Implementation Strategy Steering Committee Implementation Strategy Industry Reference Group of the C Nagle Management Committee for the Marron Genetic Research Programme

R Scoones ACWA Finance subcommittee ACWA Industry Promotion subcommittee ADC Technical subcommittee WAFIC Native Title Subcommittee G Jenkins ACWA Industry Promotion subcommittee ADC Technical subcommittee State FRAB Challenger TAFE Centre Industry Advisory Committee on Training G Dibbin SQMI steering committee WAFIC Representative Cockburn Sound Management CommitteeChair WA Mussel Producers AssociationAustralian Shellfish Quality Assurance Advisory Committee Bruce Phillips FRDC Rock Lobster POST Harvest Programme

Executive Officer Challenger TAFE Centre Industry Advisory Committee on Training Vice Chair, Shellfish Industry Council of Australia Observer of the Aquaculture Development Council ACWA Industry Promotion subcommittee Aquaculture Environmental Monitoring Conditions Working Group WAFIC Occupational Health and Safety & Training Sub-committee Attends as an observer. Member of the Finance subcommittee. CURTIN Univ Aquaculture Course review committee. Aquaculture Development Plan and Legislative Review Steering Committee National FRDC ESD working group. Plantagenet Community Consultative Group FRDC Marron Project Steering committee FRDC Aquatic Animal Health FRDC Sub-programme Executive Officer – Implementation Strategy Steering Committee

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16th ACWA Annual Report 2003-2004

Aquaculture for People Events ACWA Cocktail Party – November 2004 This is an important intra-industry networking date in ACWA’s calendar. This year’s function was opened by the Minister of Fisheries and awards were presented to WAMPA and AWMING for their work on Environmental Codes of Practices. Seminar The seminar entitled “Blue Horizon: Aquaculture Development in WA” was a great success and gave participants a high quality forum to learn and exchange ideas on the future needs and direction of the WA aquaculture industry. Mussel Festival 2004 This event was held on Sunday 7 March, 2004. The Department of Fisheries, ACWA and the Western Australian Mussel Producers Association presented and staffed a shared display booth. The key messages were the promotion of the mussel sector, ecological sustainable development and the new mussel code of practice. Minister Chance’s Cocktail Party This is another important date in ACWA’s calendar as it marks the beginning of the political year. This year’s event was a resounding success with a strong turnout of politicians and a good opportunity for industry to communicate their views to our Government representatives. It is ACWA’s intention to continue this event on an annual basis. With the State election likely to be in Feb 2005, the next cocktail party will be in May 2005. Training Leadership Training ACWA is pleased to announce that the Department of Fisheries has contributed $5000 for ACWA to arrange for leadership training for 10 leaders in WA industry. It is ACWA’s intention to seek another $5000 from Dept. of Local Government from its: Building and empowering sustainable communities fund”. ACWA has sought expressions of interest from industry to attend. This training will take place in 2004/05. Pearlprofit ACWA secured funding to assist it to finalise the CD rom and economic model of the Pearlprofit. The final model will include elements suggested by AMWING industry members at its product development workshop in April 2004. Marronprofit ACWA conducted a successful training day for marron farmers. Seven people participated and improved their skills and understanding on how to use the system. Yabby Code of Practice The Yabby Code of Practice Manual was updated during the year and this is available through ACWA now, together with the manual.

Promotion & Communication 2nd WA Coastal Conference ACWA, through its ADF funded promotional programme, managed a booth at the 2nd WA Coastal Conference which was held in November 2003 at Geraldton. This provided the opportunity to showcase ACWA’s Public Environmental Report and the work being undertaken by industry to ensure that the industry utilise best environmental management practices.

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16th ACWA Annual Report 2003-2004

WA Onshow An estimated 250,000 to 300,000 Western Australians will attend the WA On Show that marks the opening of the PCEC. Given this, WA On Show is an important event to promote the WA aquaculture industry. It on this basis, ACWA booked a booth with the objectives of: • • •

increasing awareness of WA aquaculture helping build sustainable regional communities, increasing awareness of WA aquaculture Products; demonstrating the presence of Aquaculture in every region of Western Australia.

World Aquaculture 2012 & Australian Aquaculture 2006 Conferences and Exhibitions As a mechanism to focus attention on WA aquaculture ACWA has commenced the long process of bidding for these two events. If secured they will also offer a potential revenue stream for ACWA. To date, ACWA has secured $40,000 of CAST funds to assist it win the World Aquaculture 2012. Also, ACWA has the support of all the State Fisheries Departments, FRDC and NAC for the WA 2012 bid, and in principle support for concept from the WAS organising committee. The Australian Aquaculture 2006 bid was to be an integral part of achieving a successful WA 2012 bid. Regrettably, the DoF nor the ADC would support this, given its impact of taking resources away from resolving investment attraction and regulatory risk issues. Annual Members Survey ACWA has undertaken a member’s survey to determine industry sectors information, size of investment and business growth and business needs. This information will be critical in development of public policy support and member programs by the board in out years. ACWA News ACWA has published on two editions of ACWA news to 30 June 2004. ACWA website ACWA digest During the year, ACWA reviewed its website with the aim of it becoming the communication hub for the WA aquaculture industry. The new functional specifications were developed from on member survey responses and a mechanism was devised to manage industry’s information needs. This too involved a trial of the online ACWA Digests as a new member communication tool. The new website has been fully costed. The ACWA submitted a funding application for the site, which has in principle support. Media releases ACWA continues to provide regular media releases.

Aquaculture for Tomorrow Emergency Response With the Department of Fisheries and MGA the ACWA assisted in the arrangement and participation of the Acheron Crayfish Plague Disease simulation. This two day intensive program provided industry participants with the opportunity to learn the responses needed in a disease outbreak situation. SQMI Incident Response Simulation This intensive program provided industry participants with the opportunity to learn the responses needed in a food quality situation. Eco-Efficiency Project with Environment Australia ACWA has recently developed Environmental Codes of Practice for the mussel and black pearl sectors, and a Public Environmental Report (PER) on the WA aquaculture industry. Abalone Environmental Code of Practice The ACWA assisted WAAAA in the development of its Environmental Code of Practice along similar lines to that developed for the mussel and black pearl sectors. 14

16th ACWA Annual Report 2003-2004

Animal Welfare DoF has commenced consulting with industry with regard to legislation for fish welfare. The ACWA position was that Codes of Practice need to be voluntary and not enshrined in the legislation. ACWA is awaiting a position paper from DoF.

Corporate Services The ACWA board has developed a new strategic plan and operational plan for 2004 to 2009. The plan focuses on improving member’s services – through improved communication networks, training and representation. The plan will result in improving ACWA’s ability to move its private to public fund ratio from 1:10 to 1:1.

Membership ACWA direct membership represents 304 people involved in the Western Australian Aquaculture Industry. businesses are responsible for 80% of the current and prospective aquaculture industry GVP. Aquaculture Sector Associations Marron Growers Association Inc Yabby Producers Association Inc Silver Perch Association Inc Western Australian Mussel Producers Association Inc Great Southern Aquaculture Association Inc Western Australian Abalone Association Inc Marine Fishfarmers Association Inc AMWING Pearl Producers Association

Number Members 168 11 35 9 14 13 6 17

These

of

Table 1: Memberships numbers of Aquaculture Sector Association members of the Aquaculture Council of Western Australia. Membership Growth ACWA has seen a 31.2% increase in membership since 1 July 2004. Discount programs The Aquaculture Council of Western Australia as part of its commitment to reduce costs to its members has negotiated the following discounts: • • •

$170 discount for all Industry Sector Association members for Australasia Aquaculture 2004, 20% off Fish Farm International. $40 discount on Austasia Aquaculture Magazine

$25/h discount on Englehart Consulting, business consultants, specialising in agribusiness. Database management ACWA has been implementing a new SQL based system that holds contact details of Ministers, Shadow ministers, key policy advisors and departmental staff. Note that the member registry is kept in confidence. Industry Levy ACWA has developed a discussion paper. The board commends this paper to industry for comment. Ultimately, to provide the level of service detailed in the levy business plan ACWA needs to secure $172,000 per annum in base funding. The levy, if supported by all sectors, in its current form allows for $41,075 to be raised. ACWA is seeking a better understanding of the peak industry body funding arrangements for ACWA, under the DBI funding, given the threat to reduce ACWA to zero after 2004/05. Any changes will require ACWA business rules (constitutional) to change to ensure sector representation and provide for new membership categories of associate, affiliate and students to improve private revenue streams. 15

16th ACWA Annual Report 2003-2004

Membership Subscription Fees Given the risks in raising a levy from an emerging industry the board is considering a range of other mechanisms to building ACWA private revenue sources. One element open to the association is to consider raising the membership fees. The board will provide members with a position paper in 2004/05.

Significant changes in the State of Affairs In the opinion of the directors, there were no significant changes in the state of affairs of ACWA that occurred during the financial year, not otherwise disclosed in this report. Matters subsequent to the end of the financial year Except as disclosed in the financial report, no other matter or circumstance has arisen since 30 June 2004 that has significantly affected, or may significantly affect: 1. 2. 3.

the operations of ACWA in future years the results of those operations in future years, or the state of affairs of the company in future years.

Likely Developments and expected results of operations Further information on likely developments in the operation of the Council and expected results of those operations have not been included in this report because the directors believe it would likely result in unreasonable prejudice to ACWA. Meetings of Directors The number of meetings ACWA held during the financial year ended 30 June 2004 and the number of meeting attended by each director are set out below.

Chair Vice Chair Director Director Director Director Director Director Director Director

Ms Bronwyn Harries Appointed Mr. Rick Scoones Appointed Mr. Glenn Dibbin Appointed Mr. Carey Nagle Appointed Mr Murray Konarik Appointed Dr. Bruce Phillips Appointed Mr Steve Parsons Appointed Mr Shane McLinden Appointed Mr Greg Jenkins Pia Boschetti

Number of Directors meeting held During the financial Year 10

Number of Directors meeting attended during the financial Year 9

10

6

10

8

10

6

10

8

10

8

10

7

10

7

Co-opted in the last quarter resigned

2 resigned

We commend our report to you and look forward to playing a part in pursuing aquaculture industry in Western Australia.

Bronwyn Harries Chairman On behalf of the Board of Directors of ACWA 16

16th ACWA Annual Report 2003-2004

ACWA Financial Report

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