TOKELAU has lost more than 60 per cent of its fishing revenue between February and June after being expelled from a key Pacific fisheries agreement, according to New Zealand officials, forcing the small self-governing territory to revise its government budget following a “significant loss of revenue”.
Tokelau was expelled from the Vessel Day Scheme (VDS) of the Parties to the Nauru Agreement (PNA), a coalition of Pacific countries that administers fishing time in their waters.
No clear reason has emerged for the decision.
According to reports by RNZ Pacific, offshore fisheries are Tokelau’s only source of independent revenue. The latest OECD estimate of revenue from Tokelau’s Exclusive Economic Zone (EEZ) was about $NZ15 million in 2024.
Based on that figure, the loss could be near $NZ9 million in five months.
Tokelau’s financial position is not readily available. But correspondence released under New Zealand’s Official Information Act revealed that the territory had been forced to revise its government budget after losing revenue following its expulsion.
Minutes of a June meeting between New Zealand Foreign Minister Winston Peters and Ulu o Tokelau Alapati Pita Tavite stated that “NZ officials are working to better understand the matter in detail with a view to supporting Tokelau to seek readmission.”
The loss has made Tokelau more dependent on New Zealand monetary assistance.
The New Zealand government has budgeted $NZ138 million for Tokelau between June 2024 and 2027, although no allowance has been made for the shortfall in Tokelau’s revenue.
New Zealand’s Ministry of Foreign Affairs and Trade (MFAT) said it was actively lobbying the PNA to readmit Tokelau.
“Tokelau is seeking readmission to the PNA Vessel Day Scheme as a priority and is engaging with PNA members directly,” an MFAT spokesperson said.
“The decision on Tokelau’s readmission to the VDS is a matter for PNA Ministers to consider.”
But PNA officials may not be persuaded by New Zealand’s lobbying. Concern has been raised about the degree to which New Zealand influences Tokelauan fisheries, although New Zealand is not a PNA member.
Minutes from a PNA summit in November included an “expression of regret at Tokelau’s situation with New Zealand” but did not outline a clear path to readmission.
“Tokelau’s latest update in their letter to Parties was that New Zealand’s position was not likely to change, which meant that Tokelau could no longer operate as it used to,” the minutes stated.
“Certain Parties were already experiencing the effects of this in their dealings with Tokelau which were now proving difficult; past activities done in the past, such as trading of days, were now proving difficult to undertake with Tokelau.”
Shortly after the minutes were reported, they were removed from the PNA website.
A Tokelau government spokesperson refused to comment, calling the matter “sensitive”.
MFAT said New Zealand was voicing its support for Tokelau at regional fora.
The VDS allows Pacific member countries to license fishing time in their waters. Tokelau’s expulsion has disrupted the territory’s ability to operate as it did previously and has left its government facing a revenue shortfall from the offshore fisheries on which it depends.
