Former scallop fishers say a Government proposal to refund more than $500,000 to Northland fishers is a rip-off.
About $509,000 was overcharged to members of the Northland Scallop Fishery by the Ministry of Fisheries (MFish) between 1994/95 and 2000/01.
MFish is proposing to credit the $509,000 to people currently fishing a scallopquota, in the form of a reduction in levies for future years.
The proposal means scallop fishers who left the industry after they overpaid MFish will not be refunded.
The Primary Production Select Committee will decide on the proposal early next year.
An independent audit completed in February this year uncovered the overcharges, which came from errors in the ministry's calculations.
Whangarei man John Dyer had a 3.5 per cent stake in the scallop fishery during the time of the overcharging but now leases his quota.
He claimed 3.5 per cent of the $509,000 -- or $17,815 -- belonged to him.
"We are definitely being ripped off," Mr Dyer said.
Fishermen who had not paid the charges in the past had gone bankrupt because of penalties added on by MFish, he said.
MFish added on a 10 per cent penalty for late payments and could covenant a fisher's boat and gear, Mr Dyer said.
"I would prefer that money to be paid back to the people who paid it in the first place," Mr Dyer said.
Since 1994, when there were 37 permit holders (later to become quota holders), 24 fishers had left the industry.
As at October 1 this year, there were 27 quota holders of which 14 were "new" entrants.
MFish communications adviser Sarah Morton said the money would be used to reduce levies in future years.
"The reason is that it gives the benefit to the fish stock, not the payers," Mrs Morton said.
The move was seen as the best for the industry and for the fishery, she said.
Whangarei MP Phil Heatley is a member of the Primary Production Select Committee.
"The Ministry of Fisheries and the industry have agreed the best way forward is for the various fisheries to receive the rebate against future levies," Mr Heatley said.
Mr Heatley said he would be interested why the industry found using the overcharges to rebate future levies was the right move.
It was too early to say if the proposal was fair, he said.
