The latest reduction in fishing quota will hit the industry in the pocket.

In an effort to rebuild the depleted stock, tarakihi quotas off the cost of the North and South Islands are being reduced by 20 percent.

Fisheries Minister Stuart Nash has signalled further cuts are in store next year, unless the industry comes up with a robust plan to rebuild the fishery within 10 years.

This comes as part of the review of Total Allowable Catch and other management controls for 32 stocks.

Fisheries Inshore New Zealand spokesman Dr Jeremy Helson says some in the industry will feel the financial strain.

"There will definitely be a financial impact. Tarakihi is an important inshore fishery, and it is taken right throughout New Zealand. Whilst there will be an impact, we understand that we have to weather those storms and the fisheries are more important."

Helson says they will work with the Ministry to put plans in place.

"We have put to them a fairly comprehensive plan already, so we'll be looking to implement that and see what else we can do to meet the Minister's expectations to rebuild this important fishery."