Quality assurance for aquaculture reform : UAE valuation formula
A report to the Ministry of Fisheries.
As part of its review of regulations around aquaculture development, the Ministry of Fisheries asked NZIER to provide some guidance. The research focused on calculating the compensation if aquaculture produced an undue adverse effect (UAE) on fishing quota. NZIER assessed the impacts of three methods - quota trade price, business loss calculation, and arbitrator judgement - in setting the amount of compensation. No single method was best; they had various degrees of efficacy, transactions costs, certainty, efficiency, and equity.
Link to report (Ministry of Fisheries website).