Background information on Baysville
Baysville is a small coastal town with high unemployment (120) and a declining population (1,200). Previous employers were a dairy factory (since closed) and a small lime works, which has cut staff numbers. Other industry is based around servicing local farms, but this is declining too, as farmers have taken advantage of better road access to larger centres inland.

There is plenty of good industrial space in the disused dairy factory, a deepwater jetty in the adjacent bay, and disused warehousing. Water supply is good, but waste disposal has been a problem. Sewage and dairy waste discharges into the sea past Sheep Bay caused discord with local iwi and environmental groups, and the need to upgrade waste treatment was one reason the dairy factory had to close. Sewage treatment is now land based.

A proposal has been floated to set up a local fishing and fish processing operation based on local resources (labour, land, fisheries resources).

It is proposed to:
	Buy quota for:
		Rock lobster
		Paua
		Blue cod
		Tarakihi
	Build a fish processing and packaging plant based on existing buildings.
	Process all catch locally, with emphasis on added value.
	Export as much of the catch as possible, with the balance sold as a quality branded product on the local market.
	Use mainly local labour.
	Bring in joint venture fishing partners.

A feasibility study commissioned by the Baysville business development co-operative has identified the following costs and opportunities:

Costs
	Rock lobster quota: $30 000 per tonne, 30 tonnes needed for viability.
	Paua quota: $52 000 per tonne, 10 tonnes needed for viability.
	Blue cod quota: $2 500 per tonne, 150 tonnes needed for viability.
	Tarakihi quota: $3 000 per tonne, 250 tonnes needed for viability.
	Factory and storage development: $3 million.
	Waste treatment plant: $1 million.
	Market development: $500 000.
	Fleet investment: $2 million.
	Staff recruitment and training: $100 000.
	Transport upgrading: $100 000.

Opportunities
	Rock lobster: buoyant market, especially for live lobster, fob export price $35 000 per tonne.
	Paua: expanding markets, some marketing difficulties because of colour, returns very variable but have been over $30 000 per tonne.
	Blue cod: not much of an export market, port price about $900 per tonne, good local market, plentiful fish stocks.
	Tarakihi: reasonable export market but not well known overseas, returns about $1 500 per tonne at port, good stocks.

Risks
	Paua and rock lobster stocks under pressure from poachers and recreational fishers, and endangered by local pollution.
	Weather in area quite often rough, bottom conditions difficult for trawling.
	Local iwi proposal for taiapure would restrict commercial fishing of some of the most inaccessible paua and rock lobster beds if accepted.
	Road and bridge access to Pig Bay needs upgrading.