Longterm Fishing Rights Allocations

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Long-term Fishing Rights Allocations
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Presentation outline

• State of the fish resources
• Socio and economic context
• Rights allocations post 1994
• Rights allocations medium term (2001-2005)
• Rights allocations - Long term (8-15years)
• Summary
• Where to from here?

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Context - environment

• Catches are at a historical low
• Increased demand and technological advances
• Shifts in distribution environmental factors
• To show examples 3 major fisheries

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Hake
Deepwater hake (M. paradoxus)
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West Coast Rock Lobster
West Coast rock lobster landed catch (tons whole
mass) and area-aggregated standardized trap CPUE
normalized to the mean, 1891-2004.
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West Coast Rock Lobster
Approx. 70 caught 30 yrs ago
Worse traditional fishermen
Now 90 caught- Dassen Is Cape P
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Pilchard
Namibia
South Africa
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Pilchard
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Socio and economic context

• Lower catches fewer jobs
• Shifts in distribution mismatch -
  infrastructure and catches
• Trucking fish - extra cost - to R80m R750m p/a
• Industry sources additional costs - profits
• Factories relocated - WCRL and plans to relocate
  Pilchard
• Economic activity due to fishing diminished
  West Coast
• Unemployment rife last resort fishing right
• Large proportion of fish workers non-permanent

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Employment

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Allocations post 1994

• The Marine Living Resources Act (1998) provides
  framework to change pre 1994 profile
• Few quota holders, one group dominant
• High expectations, and resistance to change by
  established industry

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Allocation post 1994 cont
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Rights allocation post 1994 cont

• Significant increase in number of participants
  16-53
• Rights allocations small lt 1000 tons each
• Lead to complaints of non-viable allocations
• - 2500 -3000 tons independent operation

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Medium-term rights - 2001

• In 2001 first multiple-year rights allocation (4
  years)
• The MTRA was a step towards the LTRA (15 years)
• Experiment with micro-business on high value
  species e.g. WCRL 200kg 1,5t
• Project management, legal advice and applications
  assessment Rights Allocation Unit
• Verification Rights Verification Unit
• Transparency compliance with PAIA PAJA

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Medium-term rights - outcomes

• Increase no. of rights holders 400- 3069,
  largely micro-business
• Redistribution of rights major commercial
  resources
• WCRL - 20 of TAC micro business
• Genuine micro businesses were created
• But - paper quota holders

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Long-term rights - 2005

• Policy Objectives
• Job creation
• Investment
• Transformation
• Sustainability
• Build viable small businesses
• Reserve all inshore rights lt40m for
  micro-businesses

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Process

• Policy Development process (2004-5)
• Lessons learnt from MTRA policy adjustments
• Consultation Process
• Draft policies and application fees
• Public consultative meetings
• Comment period
• Final policies and application forms and fees
• Cabinet approval (May 2005)

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Process (cont)

• Distributing and Receipting
• Registration to obtain application forms and
  policies (distribution)
• Application period
• Receipting of Application forms
• Staggered (Cluster A, B. C E linefish)
• Allocations Criteria
• Performance (50) Investment and jobs (MLRA 2d)
• Transformation (50) - BBBEE Framework-core
  components (MLRA 2j)

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Process (cont)

• Decision-making
• Receipting and verification of application forms
  (Consultancy Deloitte)
• Data capturing and creation of database of
  applications (consultancy)
• Analysis of database (Delegated Authority)
• Development of Criteria and scoring (Delegated
  Authority) Consultancy 2 Resolve Consultancy 3
  FA
• Establishment of Advisory Committee by DA and
  briefing criteria
• Assessment of applications by DA Advisory
  Committee (DA Committee 2 3 legal)
• Production of Assessment and Scoresheets
  (Consultancy 2)

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Process (cont)

• Decision-making (cont)
• Ranking of applications (DA/AdCom)
• Consultation of Quantum mechanisms (DA)
• Final decisions
• Publication of decisions and release of
  notification letters
• Development of GPR (DA Consultancy 2 3)

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Process (cont)

• Appeals
• Access to Information requests from applicants
• Appeal period
• Assessment of Appeals (DA Appeals Committee)
  scoring
• Recommendations to Minister (from Da) (R5(3)
  Reports)
• Appeal Decisions by Minister
• Publication of decisions and release of
  notification letters
• Development of GPR (Minister DA Consultancy 2)

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Challenges

• Resource constraints Hake, pilchards, WCRL
• Large no. of applications 8000
• - WCRL 4000
• Business vs. social considerations in WCRL
• - 200kg not viable community support 750-1t
• - 200kg became paper quota 750kg 4 to 5
  employees
• - 2001 had 900 small scale maximum 2005 600
• - 600 rights 4000 applicants (3000 appellants)

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Preliminary results
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Where are we now?

• Concluded the appeals process
• Initiated criteria development for Performance
  Review
• Accelerate development of draft subsistence
  fisheries policy
• Currently conducting public consultation meetings
• Accelerated development of aquaculture policy
• Currently conducting public consultation meetings
• Initiated process of determining economic
  opportunities in fishing harbours

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Where to from here?

• Conduct analysis of Fishing Rights Allocation
  process
• Undertake a socio-economic study
• Accelerate development of draft subsistence
  fisheries policy
• Promote and explore expansion of Non-consumptive
  resource use
• Boat-based Whale Watching
• White Shark Cage Diving
• Facilitate inter-governmental interventions

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THANK YOU