Ministry of Agriculture and Fisheries Restructuring Act 1995
Status quo and problem
Under the Ministry of Agriculture and Fisheries (MAF) Restructuring Act 1995, the Ministry of Fisheries is required to charge all clients a penalty fee of 10% when they fail to pay their statutorily incurred debt within the time provided by the relevant enactment. This provision overlaps with the sanctions provided by the Fisheries Act 1996 when the same debt is not satisfied in the timeframe set by that Act.
The sanctions provided by the Fisheries Act 1996 in regard to unpaid levies (for example suspension of commercial fishing permit) have proven to be a greater incentive for levy payers to pay their debts within the required timeframes than the penalty fee provisions. Continuing to operate a double penalty regime is both inappropriate and unnecessary.
Objectives
To ensure that legislative frameworks are consistent and efficient.
Preferred option
The preferred option is to revoke section 18 of the MAF Restructuring Act. This would ensure that the penalty regime of the
Fisheries Act 1996 achieves the legislative intent as clearly defined by that Act in a more efficient and fair manner.
Consultation
Treasury has been consulted on this proposal. It is also supported by Commercial Fisheries Services Limited.
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