14 june 2011 presentation to the portfolio committee on fisheries the status of transformation in...

14 June 201114 June 2011

Presentation to the Portfolio Committee on Fisheries

The Status of Transformation in the Fishing Industry

SA Fisheries Management at a Glance: SA Fisheries Management at a Glance: 1994 to 20111994 to 2011

1994 - 20001994 - 20001% of fisheries black owned ; 0% black managed1% of fisheries black owned ; 0% black managedNo more than 400 quota (right) holders in totalNo more than 400 quota (right) holders in totalPromulgation of the Marine Living Resources Act in Promulgation of the Marine Living Resources Act in 19981998Chaos of the 1998 – 2000 period (incl SACFC and Chaos of the 1998 – 2000 period (incl SACFC and excessive government intervention)excessive government intervention)

2000 - present2000 - presentCreation of the Branch: Marine and Coastal Creation of the Branch: Marine and Coastal Management & Appointment of a DDGManagement & Appointment of a DDGThe allocation of Medium Term Commercial Fishing The allocation of Medium Term Commercial Fishing Rights in 2001 – the first ever multi-year fishing rights Rights in 2001 – the first ever multi-year fishing rights allocationallocationThe allocation of Long Term Fishing Quotas in The allocation of Long Term Fishing Quotas in 2005/20062005/2006Transfer of fisheries functions and the related chaos Transfer of fisheries functions and the related chaos Review of fishing performance in 2009Review of fishing performance in 2009

The 2005 Policy FundamentalsThe 2005 Policy Fundamentals

Broad Based Black Broad Based Black Economic Economic Empowerment Empowerment

Biology of the target Biology of the target resourceresource

Ecology in which Ecology in which target resource is target resource is foundfound

Economic and Social Economic and Social DevelopmentDevelopment

Black and female equity ownership;Black and female equity ownership;

Black and female control of Black and female control of management;management;

Compliance with Employment Equity Compliance with Employment Equity and Skills Legislation;and Skills Legislation;

Worker empowerment (share schemes);Worker empowerment (share schemes);

CSI (1% and more to be considered);CSI (1% and more to be considered);

Affirmative ProcurementAffirmative Procurement

Managed through the setting on an Managed through the setting on an annual basis of Total Allowable Catch annual basis of Total Allowable Catch and/or Total Applied Effort limitationsand/or Total Applied Effort limitations

The Ecosystems Approach to Fisheries The Ecosystems Approach to Fisheries (EAF) Management is an international (EAF) Management is an international obligation determined at WSSD with a obligation determined at WSSD with a deadline of 2012deadline of 2012

Fisheries is an important food source. It Fisheries is an important food source. It also provides important jobs and also provides important jobs and livelihoods for thousands along our livelihoods for thousands along our coastcoast

Fisheries ClustersFisheries Clusters

Cluster A (Capital Intensive)Cluster A (Capital Intensive)

Hake Deep Sea TrawlHake Deep Sea Trawl

Hake Inshore TrawlHake Inshore Trawl

Horse MackerelHorse Mackerel

Small PelagicsSmall Pelagics

Patagonian ToothfishPatagonian Toothfish

South Coast Rock LobsterSouth Coast Rock Lobster

KZN Prawn TrawlKZN Prawn Trawl

Cluster B (Less Capital Intensive)Cluster B (Less Capital Intensive)

WCRL (Off Shore)WCRL (Off Shore)

Hake LonglineHake Longline

SquidSquid

Tuna HandlineTuna Handline

SeaweedSeaweed

Shark Long Line (Demersal)Shark Long Line (Demersal)

Cluster C (High Value, Small Scale Cluster C (High Value, Small Scale Commercial)Commercial)

Handline HakeHandline Hake

WCRL (Near Shore)WCRL (Near Shore)

Traditional Line Fish Traditional Line Fish

AbaloneAbalone

Cluster D (Low Value, Marginal)Cluster D (Low Value, Marginal)

OystersOysters

White MusselsWhite Mussels

Beach Seine NetsBeach Seine Nets

KZN Beach Seine (Pilchards)KZN Beach Seine (Pilchards)

What are the transformation, investment & What are the transformation, investment & job profiles of our major commercial job profiles of our major commercial

fisheries? fisheries?

THE PILCHARD FISHERY: R800 millionTHE PILCHARD FISHERY: R800 million•Duration of Quotas – 15 years (31 December Duration of Quotas – 15 years (31 December 2020)2020)•Number of Rights Holders: 114 Number of Rights Holders: 114 •Number of Vessels: 137Number of Vessels: 137 •Percentage of Black Right Holders and Percentage of Black Right Holders and percentage of black controlled TAC: 62.9% percentage of black controlled TAC: 62.9% (sardine) and 57.9% (anchovy) (sardine) and 57.9% (anchovy) •Gross Asset Value: R1, 218 billionGross Asset Value: R1, 218 billion•Mean annual turnover: R2.9 million Mean annual turnover: R2.9 million •Jobs sustained: 15 133Jobs sustained: 15 133



THE HAKE TRAWL FISHERY: R2,2 billionTHE HAKE TRAWL FISHERY: R2,2 billion•Duration of Quotas – 15 years (31 December Duration of Quotas – 15 years (31 December 2020)2020)•Number of Rights Holders: 52 Number of Rights Holders: 52 •Number of Vessels: 79Number of Vessels: 79 •Percentage of Black Right Holders: 60%Percentage of Black Right Holders: 60%•Percentage of TAC Black controlled: 43%Percentage of TAC Black controlled: 43%•Gross Asset Value: R2,4 billionGross Asset Value: R2,4 billion•Jobs sustained: 9000Jobs sustained: 9000



THE SCRL FISHERY: R114 millionTHE SCRL FISHERY: R114 million•Duration of Quotas – 15 years (30 September Duration of Quotas – 15 years (30 September 2020)2020)•Number of Rights Holders: 16 Number of Rights Holders: 16 •Number of Vessels: 9Number of Vessels: 9 •Percentage of Black Right Holders: 71%Percentage of Black Right Holders: 71%•Percentage of TAC Black controlled: 72%Percentage of TAC Black controlled: 72%•Gross Asset Value: R127 millionGross Asset Value: R127 million•Annual Turnover: R155 millionAnnual Turnover: R155 million•Jobs sustained: 441Jobs sustained: 441



THE SQUID FISHERY: R900 millionTHE SQUID FISHERY: R900 million•Duration of Quotas – 8 years (31 December Duration of Quotas – 8 years (31 December 2013)2013)•Number of Rights Holders: 121 Number of Rights Holders: 121 •Number of Vessels: 138Number of Vessels: 138 •Percentage of Black Right Holders: 49%Percentage of Black Right Holders: 49%•Gross Asset Value: R440 millionGross Asset Value: R440 million•Jobs sustained: 2422Jobs sustained: 2422



THE HAKE LONG LINE FISHERY: R340 million**THE HAKE LONG LINE FISHERY: R340 million**•Duration of Quotas – 15 years (31 December Duration of Quotas – 15 years (31 December 2020)2020)•Number of Rights Holders: 139 Number of Rights Holders: 139 •Number of Vessels: 80Number of Vessels: 80•Percentage of Black Right Holders: 91.3%Percentage of Black Right Holders: 91.3%•Gross Asset Value: R182 millionGross Asset Value: R182 million•Jobs sustained: 1495Jobs sustained: 1495



THE WCRL FISHERY: R347 million (excl. IR)THE WCRL FISHERY: R347 million (excl. IR)•Duration of Quotas – 10 years (31 July 2015)Duration of Quotas – 10 years (31 July 2015)•Number of Rights Holders: 245 // 812Number of Rights Holders: 245 // 812•Number of Vessels: 142 // unknownNumber of Vessels: 142 // unknown•Percentage of Black Right Holders: 64.7% / 90%Percentage of Black Right Holders: 64.7% / 90%•Jobs sustained: 1058 // 3248 Jobs sustained: 1058 // 3248

The Way ForwardThe Way Forward• SA Commercial fisheries is significantly SA Commercial fisheries is significantly

transformed – 60% of all fishing quotas transformed – 60% of all fishing quotas allocated to black personsallocated to black persons

• Of the 3019 commercial fishery quotas, more Of the 3019 commercial fishery quotas, more than 2200 are allocated exclusively to small-than 2200 are allocated exclusively to small-scale // artisinal fishers (Clusters C & D)scale // artisinal fishers (Clusters C & D)

• Threats to the transformation gains:Threats to the transformation gains:• The draft small-scale commercial fishing policyThe draft small-scale commercial fishing policy• Lack of leadership at DAFF and policy / vision = lack of Lack of leadership at DAFF and policy / vision = lack of

support for small black-owned enterprises (eg HLL & support for small black-owned enterprises (eg HLL & WCRL & Oysters)WCRL & Oysters)

• No plan with regard to the next round of fishing quota No plan with regard to the next round of fishing quota allocations in 2013 (abalone, squid, line fish, large allocations in 2013 (abalone, squid, line fish, large pelagics, shark demersal etc)pelagics, shark demersal etc)

• Pervasive poaching of high value inshore fish stocks Pervasive poaching of high value inshore fish stocks (abalone and WCRL) (abalone and WCRL)

Will the draft small-scale/subsistence fishery Will the draft small-scale/subsistence fishery policy aid or fail transformation?policy aid or fail transformation?

Policy premise is fatally flawed –Policy premise is fatally flawed –– Quotas to be allocated to fishing communities Quotas to be allocated to fishing communities

and managed via co-operatives and managed via co-operatives

Co-operative type management simply Co-operative type management simply leads to community-based conflictleads to community-based conflict– The case of Hout Bay and interim reliefThe case of Hout Bay and interim relief

Who pays for the massive administrative Who pays for the massive administrative bureaucracy of running a co-op?bureaucracy of running a co-op?

Where will the fish come from? It cant come from Where will the fish come from? It cant come from offshore quotas as the entire principle is offshore quotas as the entire principle is empowerment of small-scale fishers and the empowerment of small-scale fishers and the creation of fronts! creation of fronts!

What has past experience taught us? What has past experience taught us? – The case of SACFCThe case of SACFC

14 june 2011 presentation to the portfolio committee on fisheries the status of transformation in...

Documents