Media Briefing

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Media Briefing 3 May 2006 2005 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
  4yrs)
• Rights allocations long-term (8-15years)
• Way forward

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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
Shallow water hake (M.capensis)
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 p/a fishery
  valueR750m 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
  e.g hake 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 medium-term rights allocations (MTRA) process
  was a step towards the long-term rights
  allocations (LTRA) process(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 medium term rights
  allocations policy adjustments
• Consultation on draft policies
• Cabinet approval (May/July 2005)
• Project management, legal advice and applications
  assessment Rights Allocation Unit
• Verification Rights Verification Unit
• Allocations Criteria
• - Performance (50) Investment and jobs
  (MLRA 2d)
• - Transformation (50) - BBBEE Framework-core
  components (MLRA 2j)

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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 (1905 appellants)

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Preliminary results
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Way forward

• Complete the appeals process
• Accelerate development of subsistence fisheries
  policy
• Accelerate development of aquaculture policy
• Develop economic opportunities in fishing
  harbours
• Government interventions required

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THANK YOU