68Minister to create additional annual catch entitlement if total allowable catch increased during fishing year

1. If—

2. the total allowable catch in respect of any stock is increased during a fishing year in accordance with section 13(7) or section 14(6); and
3. the Minister believes that, after considering the matters referred to in section 21(1), he or she would have increased the total allowable commercial catch but for section 20(4),—
the Minister shall create an additional amount of annual catch entitlement for the stock that equals the amount by which he or she would have increased the total allowable commercial catch.

4. Subject to subsections (2A), (2B), and (3), the chief executive shall allocate to every person owning quota for the stock an amount of the annual catch entitlement created by the Minister under subsection (1) calculated in accordance with the following formula:

   $(a\; ÷\; 100 000 000)\; \times \; b\; =\; c$

   Where:

   • a a

     is the number of quota shares held by the quota owner on the date the increase in the total allowable catch takes effect; and

   • b b

     is the amount (expressed in kilogrammes) of annual catch entitlement created by the Minister under subsection (1); and

   • c c

     is the amount (expressed in kilogrammes) of annual catch entitlement to be allocated under this section to the quota owner.

5. Where—

6. an increase in the total allowable catch for a highly migratory species is a result of an agreement, consistent with the rules or procedures established by the relevant international fisheries organisation, between New Zealand and another member of the international fisheries organisation; and
7. the Minister is satisfied that the basis for the increase in the total allowable catch justifies a different allocation mechanism,—
the Minister may determine how the additional annual catch entitlement is to be allocated in a manner different to that specified in subsection (2), taking into account the nature and basis of the agreement between New Zealand and the other member of the international fisheries organisation.

8. The chief executive must allocate the additional catch entitlement in accordance with any determination of the Minister under subsection (2A).

9. Any annual catch entitlement calculated under subsection (2) or subsections (2A) and (2B) that any quota owner is entitled to be allocated under this section shall be rounded up or rounded down by the chief executive to ensure that—

10. the sum of all annual catch entitlements allocated under this section equals the amount of the increase that would have been made to the total allowable commercial catch but for section 20(4); and
11. no quota owner holds part of a kilogramme of annual catch entitlement consequent upon such allocation.

12. The chief executive shall, after any rounding under subsection (3), notify every quota owner of the amount of annual catch entitlement allocated to that quota owner under this section.

13. Any annual catch entitlement so allocated shall have effect on and from the date of allocation and shall have the same characteristics as any annual catch entitlement allocated under section 67.

14. The chief executive shall, as soon as practicable after allocating annual catch entitlements in accordance with this section, notify the relevant Registrar of Annual Catch Entitlement of the amount of annual catch entitlement allocated to each quota owner.