186ZRRegulations relating to compensation

1. The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations prescribing—

2. a methodology for determining the question in section 186ZP(2); and
3. for the purposes of section 186ZQ, a methodology for calculating the loss in value of affected quota due to the aquaculture activities authorised by a coastal permit.

4. The methodology prescribed under subsection (1)(a) must set out the type of data and analysis required for determining whether the proposed aquaculture activities or the fishing in respect of which the chief executive has made a reservation is of greater economic value to New Zealand.

5. The methodology prescribed under subsection (1)(b) must—

6. provide for compensation to be calculated in proportion to the impact on fishing, including—
   1. increased fishing costs and any consequential disruption costs as a result of the proposed aquaculture activities, including a sum by way of solatium to fishing interests for any adjustments required as a result of the impact of the aquaculture activities; and
   2. any complementary uses that might exist for the site in accordance with any submissions made under section 186ZQ(2); and
   3. the loss in value of affected quota, but only in relation to that part of the relevant average annual catch that is estimated would be reduced if the proposed aquaculture activities were to proceed; and
7. provide for the calculation of compensation to be based on the size of the affected quota holding and the corresponding loss of quota value, including by reference to any recent transfers of the quota or associated annual catch entitlement.

8. Regulations under this section are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).