The NZ RLIC Board has recommended, and shareholders have now agreed a Business Plan for 2021/22 commencing in October. CRA Quota Share Owners (QSOs) are now invited to read and if inclined, to comment on the detail of the Business Plan.
Whilst the overall budget is lower than for the current year, the rock lobster commodity levy required to fund the Business Plan will be slightly higher than that which applies in the current year (an increase from $321.90 / tonne to $359.53/tonne).
The key reasons for the CRA levy increase relative to 2020/21 are –
• The total budget for 2021/22 is lower than 2020/21 by $135,221, and very similar to 2019/20. However, the lower total TACC (down from 2800.486 tonnes to 2733.786 tonnes) means that operating costs for 2021/22 are spread across a smaller tonnage.
• A substantial budget increase is proposed in the policy and management category. This reflects the marked increase in central and local government reform and regulatory activity that requires input and response to provide for industry rights and interests and to preserve spatial access. With the retirement of the previous Chief Operating Officer there will also be a need to commission more external capacity in this area.
• There will be no carry-forward from the current financial year to buffer the levies set for 2021/22 (due in part to levy relief applied during the Covid-19 period in 2020).
• At this time, it appears NZ RLIC will not have the stock assessment contract for 2021/22. This means a reduction in revenue otherwise obtained from that contract.
We also note that based on the current MPI cost recovery proposals, Government levies on rock lobster will be lower for 2021/22 by $640,0001
The closing date for receipt of your comments on the 2021/22 NZ RLIC Business Plan is Friday August 6th, 2021. The 2021/22 CRA levies will be confirmed at the August 2021 NZ RLIC Board meeting and all levy payers will be notified of the mandatory levy that will apply for each CRA stock (incorporating the ‘core’ and the ‘stock specific’ components) from 01 October 2021.