Quota Ownership Consolidation
Investigation document: Quota Ownership Consolidation
QUOTA OWNERSHIP AND CONSOLIDATION
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Date: 29 December 2025
Source: Te Ara Encyclopedia of New Zealand
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KEY FINDING - SMALL OPERATORS SOLD OUT
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"Small quota owners (especially in inshore fisheries) often sold their quotas
to bigger companies in the 1990s."
"In the 2000s the industry was led by Sealord Fisheries, Sanford, and Talleys."
THIS IS EXACTLY WHAT HAPPENED TO THE JENSSENS:
- Small operator with valuable quota
- Forced into distress (1983-1988)
- Quota acquired by larger interests
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THE BIG THREE - WHO ENDED UP WITH THE QUOTA
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- SEALORD FISHERIES
- 50% owned by Maori (Aotearoa Fisheries)
- 50% owned by Nissui (Japanese)
- Previously owned by Brierley Investments
- SANFORD
- Oldest fishing company in NZ
- Auckland-based
- TALLEYS
- Nelson-based
- Family owned (Talley family)
COMBINED: 77% of orange roughy quota in three hands
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MAORI FISHERIES SETTLEMENT - THE MECHANISM
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1989 INTERIM SETTLEMENT:
- Crown transferred 10% of quota (60,000 tonnes)
- Shareholdings in fishing companies
- $50 million cash
- To Waitangi Fisheries Commission
1992 SEALORD DEAL (FULL AND FINAL):
- 50% of Sealord Fisheries
- 20% of all new species brought under QMS
- More shares in fishing companies
- $18 million cash
2004:
- Te Ohu Kaimoana established
- Assets had TRIPLED in value to ~$750 million
- Aotearoa Fisheries created
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THE FOREIGN OWNERSHIP LOOPHOLE
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"Only New Zealanders or New Zealand-owned companies can own fishing quota
in New Zealand. Foreign ownership of shares in New Zealand quota-owning
companies is strictly limited."
BUT:
"However quota holders can lease foreign vessels to catch their allowance
on their behalf."
This means:
- Quota must be NZ-owned
- But foreign companies can OPERATE the fishing
- Foreign vessels can catch the fish
- Foreign companies can buy into NZ quota-holding companies (with limits)
CHARLES ASHTON LIMITED was a NZ-registered company that could hold quota,
even if ultimately controlled by Australian interests (Craig Mostyn).
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THE CONSOLIDATION PATTERN
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1986: QMS introduced
- Quota allocated to existing operators
- Small operators like Jenssens get quota
1986-1990s: Distress and acquisition
- Small operators face financial pressure
- Legal fees, disputes, liquidations
- Quota sold to larger companies
1990s-2000s: Consolidation
- Big Three emerge (Sealord, Sanford, Talleys)
- Small operators "often sold their quotas"
- Owner-operators become "extinct"
2000s-present: Oligopoly
- 77% of orange roughy in three hands
- Maori settlement creates Aotearoa Fisheries
- Foreign interests (Nissui) own 50% of Sealord
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WHO BROKERED THE DEALS?
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The quota transfers from small operators to large companies required:
- Legal services (conveyancing, contracts)
- Financial services (valuations, financing)
- Brokerage services (matching buyers and sellers)
KEY QUESTION: Who were the brokers and lawyers facilitating these transfers?
In Napier/Hawke's Bay:
- McKay Hill & Co. (active in fishing company matters)
- Bell Gully Buddle Weir (acted for Charles Ashton)
- Willis Toomey Robinson (local agents)
These firms would have been involved in quota transfers.
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THE JENSSEN QUOTA - WHERE DID IT GO?
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HYPOTHESIS:
- Jenssens had orange roughy quota (based on catch history)
- Deep Sea Fisheries wound up by Charles Ashton (1988)
- Charles Ashton connected to Craig Mostyn (Australian)
- Quota transferred to Charles Ashton or related entity
- Charles Ashton dissolved (1989) - mission accomplished
- Quota eventually consolidated into Big Three
QUESTION: Is there a record of quota transfers from Deep Sea Fisheries?
This would require:
- Fisheries NZ records (OIA request)
- Companies Office records for Charles Ashton
- Court records from liquidation