After launching an investigation in late 2022, the Ministry for Primary Industries (MPI) prosecuted The Rees Hotel’s then-chief executive, Mark Rose, and the hotel’s umbrella company, for illegally operating the excursions in conjunction with a third-party company.
The Rees Management Ltd, of which Mr Rose is a director, was convicted in March last year of four charges of unlawfully possessing fish for sale and a single charge of a fish dealer failing to keep invoices for fish purchases.
Mr Rose, who recently stepped down as the hotel’s chief executive and is now responsible for its overseas marketing, admitted three charges of failing in his duty as director of a fish dealer.
At a sentencing hearing in the Queenstown District Court yesterday, Judge Catriona Doyle said the five-star hotel began offering the "boutique, bucket-list experience" several years ago.
At a cost of between $4650 and $7750, guests were flown in small groups to remote locations in Fiordland or the West Coast to watch a diver gather the crayfish.
The crayfish were flown back to Queenstown and cooked and served to excursion participants at the hotel.
Mr Rose was told by a fisheries officer in late 2021 the excursions were illegal because the divers were being paid, the crayfish were served at the hotel and appropriate invoices were not being kept.
He gave assurances he would get the third-party business operating the trips to ensure it was compliant but, only 10 days later, the hotel provided the crayfish experience to three guests.
It ran six excursions the following year.
Judge Doyle said the offending appeared to be a case of negligence rather than a deliberate attempt to profit from an unlawful activity.
"There was at least initially some suggestion that Mr Rose's involvement was as a result of not understanding what he was required to do and perhaps naively expecting the associated business would ensure compliance."
The offending involved 23 crayfish and the maximum recreational limit of six crayfish per diver was never exceeded.
She imposed total fines of $22,000 on the hotel company.
Mr Rose, who had "high standing and significant mana in his community", had admitted the charges at an early stage.
He had never been before the courts‘ and convictions at his stage of life would cause shame to him and his family, she said.
She was satisfied the consequences of convictions outweighed the seriousness of his offending and granted the discharge.
Mr Rose, who is overseas and was not required to attend the hearing, said in an emailed statement "common sense has prevailed".
MPI is also prosecuting the third-party business. The matter is still before the courts.
