Core Cases

Orange Roughy Quota Background

Investigation document: Orange Roughy Quota Background

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ORANGE ROUGHY QUOTA INVESTIGATION - BACKGROUND RESEARCH

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Date: 29 December 2025

Source: NZ Geographic, FAO, MPI documents

KEY FINDINGS ON QUOTA VALUE:

  • QMS INTRODUCTION (1986):
- New Zealand introduced Quota Management System in 1986

- One of first countries to cap commercial fishing

- Created Individual Transferable Quotas (ITQ) - property rights to catch fish

- Orange roughy was one of the original 26 species included

  • ORANGE ROUGHY QUOTA VALUE:
- FAO document states: "Overall, the value of New Zealand orange roughy and oreo

fisheries, as represented by the market value of the quotas, had grown to $350 MILLION"

- This made orange roughy quota among the most valuable fishing rights in NZ

- NZ catches around 80% of world's orange roughy

  • QUOTA AS PROPERTY RIGHT:
- "The right to catch and sell fish became a property right, one that has now

accumulated in the hands of a few"

- Quota can be bought, sold, leased - like real estate

- "The quota held more value than the actual fish itself"

  • CONCENTRATION OF OWNERSHIP:
- Example: Sanford owns 22% of ALL quota in NZ

- Small operators forced to lease quota from large companies

- Those without quota must pay "deemed values" ($8-$22/kg for snapper)

- System favors those who held quota at introduction or could afford to buy it

  • INITIAL ALLOCATION (1986):
- Critical question: WHO received the initial orange roughy quota allocation?

- FAO document: "In 1986 New Zealand introduced management by individual

transferable quota (ITQ) for 26 of the country's most economically-significant

fishery species"

- Initial allocation based on "catch history" - what you had been catching

  • THE JENSSEN RELEVANCE:
- If Deep Sea Fisheries Ltd had established catch history for orange roughy

before 1986, they would have been entitled to quota allocation

- Loss of the vessel Deep Sea II in 1987 (one year after QMS introduction)

would have been catastrophic timing

- Without a vessel to fish, quota becomes useless OR must be sold/transferred

- The $350 million total value means even small percentage holdings were

worth millions

CRITICAL QUESTIONS TO INVESTIGATE:

  • Did Deep Sea Fisheries Ltd hold orange roughy quota allocation in 1986?
  • What happened to any quota they held after vessel loss in 1987?
  • Who acquired their quota (if any)?
  • Was the vessel loss timed to coincide with QMS introduction?
  • Connection between quota transfer and the $5 million allegedly stolen?

NEXT STEPS:

  • Research Deep Sea Fisheries Ltd company records
  • Find orange roughy quota holder records from 1986-1990
  • Investigate McKay Hill trust accounts for quota transactions
  • Trace quota ownership transfers in late 1980s