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Cost recovery and structural adjustment: Revealing and applying costs of fisheries management services

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  • This paper outlines the process and impact of a phased introduction of cost recovery on the Victorian wild and aquaculture sectors and the framework for tracking and delivering data outputs to a co-management fisheries management structure. In order to determine whether efficient and effective development and use of fisheries resources is occurring, all costs associated with these activities must be identified and appropriately apportioned. An integral part of these costs include Fisheries Management Services (FMS) usually delivered by publicly funded Fisheries Management Agencies (FMA’s). FMS refers to a range of services provided by a FMA that supports the management of public (wild resources) and private (aquaculture) fisheries resources. FMS are best assessed on an activity basis (activity based costing) with the apportionment of costs associated with these services based upon estimated costs and benefits to particular beneficiary groups. Fisheries Victoria has developed a computerised logging and data management system. The community’s interest (including intergenerational concerns) must be met by state stewardship. Being a public good, the FMS costs associated with this responsibility should be fully funded from the tax base. On the other hand, costs associated with FMS that directly benefit private entities for private gain are being recovered by FMA’s around the world to varying degrees of sophistication and degree. The recovery of these costs are usually in the form of levies or fees on licence holders. The economic costs associated with the increases in fisheries management levies are in the form of a short-term increase in enterprise costs and decreased returns. Concurrent with these impacts is the restructuring of fishing sectors as industry adjustment processes takes place.
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  • Rawlinson, Peter. 2004. Cost recovery and structural adjustment: Revealing and applying costs of fisheries management services. In: Proceedings of the Twelfth Biennial Conference of the International Institute of Fisheries Economics & Trade, July 20-30, 2004, Tokyo, Japan: What are Responsible Fisheries? Compiled by Ann L. Shriver. International Institute of Fisheries Economics & Trade, Corvallis, Oregon, USA, 2004. CD ROM. ISBN 0-9763432-0-7
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