The NSW Department of Primary Industries continues to work with the NSW commercial fishing industry to investigate structural changes to the management of commercial fisheries which will lead to improvements in efficiency and profitability. One issue that requires consideration in these deliberations is the highly variable inshore-offshore production that is linked with rainfall in coastal NSW. Such changes are exacerbated during periods of drought or flood and result in significant shifts in the behaviour of fishers. It is expected that such variations in rainfall will continue, and are likely to become more extreme, under projected climate change scenarios.

This project will examine the NSW commercial catch records and ascertain if there are patterns of endorsement holdings that are the basis of more robust fishing businesses during periods of drought or flood. We expect that many fishers will understand these patterns based upon extensive practical experience, but an empirical confirmation of such patterns will lend additional weight to any associated decisions by government and industry.

This project will also shed light upon an important facet of risk management in fisheries. The textbook economic argument that increased specialisation results in increased efficiency must be contrasted with potential lost opportunities for fisheries production in a highly variable environment. The adage "don't put all your eggs in one basket" is likely to be highly applicable for inshore and coastal fisheries in NSW. Increased specialisation will likely be associated with costs as well as benefits.