Oyster bond could add dimes to your dozen

Mahurangi oyster farmers are facing tens of thousands of dollars in costs as part of a new bond scheme introduced to prevent abandoned oyster farms.Under the scheme, oyster farmers will have to pay $6000 for each hectare of their farm by the end of June. There are about 100ha of oyster farms in Mahurangi Harbour, split between eight farms.

Auckland Council natural resources and specialist input manager Daniel Sansbury says the bond was introduced following a Government review in 2005, which brought marine farming into the Resource Management Act, transferring the regulation of the industry to local government.

The new resource consent conditions require all oyster farmers to pay a bond to fund the clean-up of abandoned farms.

The bond was to be introduced in 2011, but was delayed following a virus which decimated juvenile oysters. Now the industry has recovered, Council has revived the scheme.

Northland Regional Council introduced a $9000 per hectare bond in 2010. Then, in 2013, it issued abatement notices to 43 oyster farmers for failing to lodge the bond.

Mahurangi Oysters owners Andrew and Lisa Hay say there hasn’t been a problem with abandoned farms in the Mahurangi Harbour and the bond system isn’t needed. The couple owns a 13ha farm, facing a $78,000 bond.

“When the oyster virus hit the industry in 2010 it was the worst time in our farming history and no-one left their farms behind,” Lisa says.

“The farms are extremely valuable. No-one in their right mind would give it up,” Andrew says.

They say they will have to pass on the cost to consumers.

Mr Sansbury says Council hasn’t had to clean up any abandoned oyster farms since it became responsible for regulating the industry, but it has worked with the farmers to clean up deteriorating farms, he says.

“Last year, Council received complaints about oyster farm debris washing ashore in the Mahurangi Harbour,” Mr Sansbury says. “We brought this to the attention of the Mahurangi Oyster Farmers Association and they arranged to clean up the site. We have received comments from oyster farmers that the farms in the Mahurangi are in a better condition now than they have been in the past.”

Matakana Oysters owner Tom Walters has a 10ha oyster farm and is facing a $60,000 bond , but is more positive about the proposal. He says there has been an issue with abandoned farms in other parts of New Zealand and it is a positive move to protect the environment.

“Anything that safeguards farms is a good thing,” Mr Walters says. “If we get another massive virus, people get under financial pressure and the farms can break pretty quickly if they are not maintained.”

He hopes to pay the bond off over 10 payments and absorb the cost.

“If you keep pushing up the price, then people can’t afford to buy them.”

But, inconsistencies in the bond scheme across the country and between oyster farms is an issue, he says.

“At the moment, each Council sets the bond fee, which creates an uneven playing field. Big oyster farms can also get a bank guarantee and negotiate a discount with Council.”

Biomarine is the largest oyster farmer in Mahurangi, with 40ha. Chief executive Jim Dollimore says the company will be able to use a bank guarantee for the bond, but small-scale farmers may struggle with the cost.

The extra cost could push up oyster prices by about 50c a dozen, he says.

“New Zealand oysters are already the most expensive in the world, so this won’t help,” Mr Dollimore says.

But the move might encourage oyster farmers to make the most of their farms, he says.

Mr Sansbury says oyster farmers can pay the bond in 10 installments over the next six years. Other payment options include cash bond, bank guarantee bond, or a national or regional fidelity fund.

“We are also open to groups of farmers approaching Council with a proposal for a reduced bond.”