A government agency has warned that the state may have to pay iwi upwards of $300 million in compensation for losing their access to foreign charter vessels (FCVs). The foreign ships became notorious for paying crews of mostly Indonesian workers less than New Zealand’s minimum wage, despite fishing in the country’s exclusive economic zone.
Last year 32 fishermen aboard the Korean owned Oyang 75 jumped ship in Lyttelton alleging unpaid wages as well as physical and sexual abuse by their superiors on the ship. Another vessel owned by the same outfit had previously sunk causing the deaths of six crew members. In May the government began to prepare legislation for a ban on FCVs after media (largely Sunday Star Times journalist Michael Field) and the University of Auckland Business School began publishing findings on mistreatment of workers. The ban will be implemented over the next four years.
The Ministry of Primary Industries (MPI) has noted that as the FCVs were being used to fish the mainly Treaty of Waitangi fisheries quota allocated to iwi, the ban would disproportionately impact on Maori and iwi quota holders. Under treaty legislation, iwi are entitled to compensation for changes in government policy. MPI said that a “worst case scenario could result in a loss in export revenues of around $300 million annually.” [Read more…]