Two years on, Sealord has created 150 of promised 700 jobs

By NZPA

Thursday 16th January 2003

Government approval of the sale of half of fishing company Sealord was given exactly two years ago on the promise of 700 jobs over five years.

To date, the company, now owned by giant Japanese seafood company Nippon Suisan Kaisha (Nissui) and the Treaty of Waitangi Fisheries Commission is just over 20 percent down the track with 150 jobs created.

Sealord largely blames the surprise Government moratorium on aquaculture developments imposed in November 2001, and now partially reversed, for being behind on its target.

Brierley Investments Ltd, now Singapore based and renamed BIL International Ltd, controversially sold half of the country's biggest fishing company and largest fish quota holder for $208 million.

The commission already owned the other half.

The Government had earlier barred overseas bidders from buying all of BIL's share because of concerns about fishing quota going offshore.

The deal overcame those concerns by transferring Sealord's quota -- 23 percent of the total quota available in New Zealand -- to the commission and by promising new investment and jobs.

Sealord leases the quota and the commission and Nissui have 50-50 ownership of Sealord's restructured operating company.

The increase in jobs over the past two years has largely been driven by value-added processing and aquaculture, with staff mainly based in Nelson.

New Sealord boss, Doug McKay, a former chief operating officer of giant Australasian food company Goodman Fielder, would not agree to an interview although the company did provide answers to written questions.

"We have achieved a lot to date -- job growth new ventures which will produce further job growth and investment in research and people development," the company said.

The lag on the job growth target was largely due to the "unexpected" two year moratorium on new aquaculture proposals that had delayed some of Sealord's ventures "and there may be further delays if local authorities take more than two years to create aquaculture zones".

"This is not a criticism of Government policy," Sealord said, "merely a factor that could not be anticipated, and which may extend the timetable on some projects designed to create new jobs."

In November 2001, the Government sprang the two year moratorium on the marine farming industry -- which includes mussels, kingfish and snapper -- with all applications not at an advanced stage by November 2000 caught in the ban.

But last March, the Government did a U-turn and agreed to a primary production select committee's recommendation to allow around 140 more marine farming consent applications to be processed.

Sealord said it was on track for more jobs in aquaculture. It is involved in joint venture aquaculture developments with Maori which it said will create additional jobs in coastal and rural communities and provide training development and jobs for Maori in depressed areas.

Its "conservative estimate" was that 200-300 additional jobs could be created in areas such as Hauraki and Napier/Bay of Plenty.

"Hundreds more jobs could be created if all Sealord's joint applications are successful."

As promised, Sealord and Nissui set up a project task force to investigate and oversee new value-added and aquaculture projects.

It cites as its achievements to date:

* new imported machinery for value-added processing;

* $1.3 million invested in aquaculture research and development (Sealord's R&D budget on greenshell mussels has increased $1 million since 2000 while Nissui and Shellfish have allocated $340,000 for joint investigations into harvesting and processing other species);

* other R&D development projects "in the pipeline"; and

* the commission and Nissui setting up scholarships for two Maori each year to spend 12 months based at Nippon Suisan Kaisha offices in Tokyo and then returning to work in the industry.

Commission chairman Shane Jones said the deal "was, and still is, an excellent deal for Maori, for Sealord and for the New Zealand seafood industry".

He said Nissui paid "top dollar" for its share of Sealord, "but importantly, that valuable quota remains in New Zealand hands".

The partnership was helping grow Maori capacity, technology and regional employment, he said.

The commission anticipates another 200-300 new jobs to be created in rural areas in the next five years.

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