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Department of Agriculture, Forestry and Fisheries

Department of Agriculture, Forestry and Fisheries. Report from the fisheries branch to the portfolio committee 6 November 2012. 2013 Fishing Rights Allocation Process. Presentation Outline. Background Policy Considerations Processes to be Undertaken Rights Allocation Process

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Department of Agriculture, Forestry and Fisheries

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  1. Department of Agriculture, Forestry and Fisheries Report from the fisheries branch to the portfolio committee 6 November 2012

  2. 2013 Fishing Rights Allocation Process

  3. Presentation Outline Background Policy Considerations Processes to be Undertaken Rights Allocation Process Proposed Road Map SWOT Analysis

  4. Background Objective of the Marine Living Resources Act, No18 of 1998 (MLRA) The main objectives and principles of the MLRA are to provide for the exercise of control over marine living resources in a fair and equitable manner for the benefit of all the citizens of South Africa. The allocation of fishing rights was the primary mechanism to further transformation and to give effect to all principles and objectives as set out in section 2 of the MLRA Challenges Through administration of the Long Term Rights Allocation Process (LTRAMP) it has become apparent that not all objectives of the MLRA were always satisfactorily attained, resulting in a need to amendment policies prior to the new rights allocation process so as to align them with the current broader priorities of government.

  5. Background What next? -Rights will expire in the following 8 sectors on 31 December 2013: KZN Prawn Trawl, Demersal Shark Squid Tuna Pole Hake Handline White Mussels Oysters, Traditional Linefish.

  6. Policy Considerations Identification of gaps in existing Policies Marine Living Resources Act and Regulations promulgated there-under. General Fisheries Policy. Sector Specific Fisheries Policies Internal Consultation on Policy considerations - Duration of Rights. - Transformation. - New Entrants. - 2010 Fisheries Performance Review. - Economic Viability of Rights. - Beneficiation (Fronting). - Support Programs. - Right Transfers (Consolidations by Economic Units). - Incorporation of Limited Commercial Fisheries in to the Small Scale Fisheries Sector. - Closure of collapsing fisheries.

  7. Policy Considerations Internal Consultation on Policy considerations (cont.) - Limited Research. Non- compliance with Permit Conditions. Public Consultation on Policy Considerations Marine Living Resources Act and Regulations promulgated there under. General Fisheries Policy. Sector Specific Fisheries Policies

  8. Process to be Undertaken Public Consultation on Industry “Rule Books” Setting up of Structures - Verification Unit to audit Applications; - Independent Rights Allocation Unit - Inter-Governmental Task Team (DAFF, SAMSA, DTI, SARS, DoL) Design of Application Forms - Application Form based on Criteria and “Rule Book agreed with Stakeholders. Determination of sizes of Allocations Call for Rights Application (Outline Process) Processing of Application Forms and Data Capturing Allocations by the Delegated Authority

  9. Process to be Undertaken Calls for Appeals Processing of Application Forms and Data Capturing Announcement of Appeals Amendments of the Rights Registers

  10. Rights Allocation Process Rights Application Process 1. Minister Calls for Applications in the Government Gazette and the Rights Allocation Process begins. • Minister will delegate Authorities to Allocate fishing Rights to one or two Senior Officials (“The Delegated Authority”) 2. Application Forms and Policy Guidelines will be made available from all Coastal Offices 3. Applications will be submitted to the Rights Verification Unit (RVU) this will come with an Application Fee RVU will receive, file and store applications, and verify the information that is supplied by applicants. 4. Independent Advisory Committee will assess each Application 1. Each application will be assessed by at least two people 2. Each application will be scored according to predetermined criteria. Criteria will vary per fishing sector. 3. Legal Advice will be sought for ‘Complicated’ or ‘Border line Cases’ or applicants that warrant further investigation prior to decision making

  11. Rights Allocation Process (cont.) 5. The Delegated Authority will decide whether or not to allocate rights, and record his/her decision; 6. Quantum’s will be allocated to each successful applicant. 7. The record of Decision will be made available to all Coastal Offices (Rights Registers) 8. Successful Applicants will be allowed to apply for fishing licenses and vessel licenses a. Unsuccessful Applicants will decide whether they appeal the Minister’s decision or not. aa. If they appeal, Appeal Process begins.

  12. Proposed Road Map

  13. SWOT Analysis Strengths Past experiences Strong Legislative Framework Challenges - Very limited resources = Limited access - Growing population Increasing operational costs of fishing Apportionment of allocations between sectors + entities Opportunities - Improved social and economic benefits for South Africans - Small Scale Fishing Dispensation Expansion of underutilized resources Threats - Limited time plus protracted bureaucratic processes - Disruption plus instability within the fishing sector - Litigation by industry - Movement of new Right Holders to economic hubs

  14. SMALL-SCALE FISHERIES POLICY (SCFP) IMPLEMENTATION PLAN PROCESS & ROADMAP

  15. Objective of the small scale fisheries policy ensure the sustainable consumptive use of marine living resources in a manner that ensures equitable access to resources to reduce and eliminate the barriers experienced by small-scale fishers; introduce a range of appropriate mechanisms that will promote an integrated approach in the future and address possible conflicts in the intervening period; provide a dispensation that will contribute to efforts to eradicate poverty, ensure food security and promote equity without endangering the ecological sustainability of marine living resources; accommodate traditional/subsistence fishers effectively, secure the socio-economic rights of traditional/subsistence fishers as well as provide equitable access to marine living resources; provide for the upliftment of these communities by using appropriate support mechanisms, education and training, infrastructure and participatory management practices.

  16. Objective of the Small Scale Fisheries Policy Implementation Plan Seeks to guide on proper management approach which recognizes: • allocates fishing rights to legal entities established by small-scale fishing communities • established mechanisms and structures for community-based harvesting and managing marine living resources • gives preference to fishers and communities that can demonstrate historical involvement and use of traditional fishing practices

  17. Objective of the Small Scale Fisheries Policy Implementation Plan (cont) • recognizes the importance of developing and empowering small-scale fishing communities through developmental support community-based approach for benefit and up-liftment of small-scale fishing communities transformation and redress of past injustices in the sector takes fundamental human rights, MLRA principles and international obligations into account give due regard to promoting interests of women, disabled and child-headed households

  18. Achievements to Date Detailed Project Work Plan & Roadmap compiled List of information & documentation has been collated for service provider Implementation Plan Framework prepared & circulated internally for comment Draft Advisory Memo circulated for comments on : labour, safety at sea, disaster relief and social security; establishment of community-based legal entities; rights allocation; and fair distribution Established co-operational structures (NEDLAC level) Internal Task Team established with clear Terms of Reference Interim fishing arrangements (interim relief)

  19. Implementation Framework The Implementation framework has been developed with the following sub-headings: Background context Vision & policy objectives Policy scope & deliverables Governance & institutional responsibility for implementation External stakeholders Stakeholder consultation Implementation schedule Risk analysis & assumptions Resources required for implementation Review, monitoring & evaluation Financial implications summary & costing breakdown Overview of critical success factors & non financial return on investment Work breakdown structure

  20. Road Map

  21. Road Map (cont)

  22. Action Plan Appointment of internal Task Team to work with the service provider, Implementation Plan Framework to be supported by the internal Task Team and approved by DAFF management, Comments on draft first advisory memo submitted on 01 October 2012.

  23. Policy Decisions to be taken ‘Basket of species’ to be allocated per region Adoption of work plan & roadmap Adoption of Implementation Framework, Confirmation of compliance with all court orders Draft amendments to MLRA Guidance on consultation with government & external stakeholders Policy position & guidance on value adding (aspect to be address in advisory memo 2),

  24. Progress made on the Stock Recovery Strategy for Hake, Abalone, West Coast Rock Lobster and South Coast Rock Lobster

  25. Fluctuation in Catches Fish stocks fluctuate naturally and Total Allowable Catches are aimed at attaining Maximum Sustainable Yield (MSY) levels within this fluctuation. To ensure sustainability, stocks are surveyed and assessed annually and Operational Management Procedures (OMPs) are developed that take into account abundance and fluctuations. For example, at the turn of the century, the hake TAC was set at about 166 000 tons, but recruitment and the biomass decreased and the TAC had to be reduced to a low point of 118 000 tons in terms of the OMP before the stock began to recover back to its current TAC level of 145 000 tons. Also, the abalone TAC was sustainable at 650 tons per annum but had to be reduced to less than 100 tons before the fishery was closed in 2007. So far the stock has not recovered - it is still declining. The TAC is shared among the current right-holders, so that each right-holder gets a fixed percentage of the TAC throughout the duration of the right.

  26. Deep-Water Hake Stock recovery plan revised in 2010 To ensure faster recovery of resource than the plan which had been implemented since 2007 Required to satisfy Marine Stewardship Council of hake industry’s commitment to stock recovery Necessary to assure re-certification of South African hake by the Marine Stewardship Council Objective of plan To recover the biomass of female fish to 23% of the estimated pre-fished biomass by 2016 This target is estimated as the abundance which provides the maximum sustainable yield for this resource

  27. Deep-Water Hake (cont) Where we started: In 2010 female biomass was estimated to be 37% below the target. Where we should have been: By 2012 female biomass was expected to have improved to 29% below the target. Where we are: The assessment conducted in 2012 indicated that female biomass was considerably higher than expected for 2012, and already appeared to be approaching the target level, being only 2% below the target. Note: Although this is certainly a positive indication of resource recovery, it should be noted that each of these estimates has a certain degree of uncertainty associated with it, and it is possible that the situation may not be quite as optimistic as it may appear at present.

  28. West Coast Rock Lobster Objective of plan: To recover the biomass of males >75mm carapace length to 20% above the 2006 level by 2016 (i.e. over 2 years) This would bring the biomass of males >75mm carapace length to 4.1% of the estimated pre-fished biomass This target well below internationally-accepted Limit Reference Points, below which risk to the stock is deemed unacceptably high This target even further below Target Reference Points (typically in the vicinity of 40%) where maximum economic yield is most likely to be achieved This recovery plan therefore very modest However, attempting faster recovery would have necessitated undesirably heavy decreases in the TAC.

  29. West Coast Rock Lobster (Cont) Where we started: At the 2006 starting point, the biomass of males >75mm carapace length was estimated at only 3.4% of the pre-fished biomass Where we are: The latest assessment (conducted in 2011) indicated that the biomass was within the range predicted by the recovery plan for that time Therefore the resource recovery can be considered to be going according to plan Note: The recovery plan was re-tuned during the development of the new Operational Management Procedure (OMP) for West Coast rock lobster, using updated information available, and put in place during 2011 The objective of the new plan is to increase the biomass of males >75mm carapace length by 35% above the 2006 level It is, however, too soon to be able to compare predications with actuality

  30. South Coast Rock Lobster Objective: To increase spawning biomass by 20% above the 2006 level by 2015 Where we started: The spawning biomass in 2006 was estimated to be 36% of the pre-fished level Thus the resource was well above internationally-recognised Limit Reference Points, but it was desired to move it to a higher level in order to achieve maximum economic yield from the resource (estimated for this resource when biomass is around 43% of the pre-fished level) Where we are: By 2010, resource recovery appeared to be on track, and biomass had increased to 11% above the 2006 level The updated assessment is currently underway and is expected to be completed towards the end of 2012

  31. Abalone Important note: The stock recovery plan targeted only Zones A & B. Zones C & D are considered unsuitable to allow recovery of abalone because of the incursion of West Coast rock lobsters into the area, making it unfavourable for abalone. In Zones E, F & G (West Coast) the resource is considered not to require rebuilding. Objective: To prevent spawning biomass in Zones A & B from falling below a Limit Reference Point of 20% of pre-fished biomass, and to recover biomass to a Target Reference Point of 40% of the pre-fished biomass over 15 years (i.e. by the 2024/25 season) A sustained 15% per annum reduction in poaching was calculated as being required to achieve this. Zone A – Uilkraalsmond – Die Dam; Zone B – Die Dam – De Kelders

  32. Abalone (Cont) – Zone A Where we should have been: By 2011/12, spawning biomass was expected to be in the region of 28% of pre-fished levels Where we are: The assessment conducted in 2011/12 indicated spawning biomass to be 29% of pre-fished levels At first glance this may appear to be better than we had hoped for However, we are comparing apples and oranges The model uses the new information to back-calculate the estimate of the pre-fished level The large amount of abalone poached between the previous assessment and the 2011/12 assessment resulted in the model back-calculating that the pre-fished level must have been higher than previously calculated (otherwise at current harvesting rates the stock would already have been extirpated) It is thus erroneous to compare the two figures above and conclude that the resource status is more optimistic than expected

  33. Abalone (Cont) – Zone B Where we should have been: Spawning biomass was expected to be in the region of 25% of pre-fished levels by 2011/12 Where we are: The 2011/12 assessment estimated that spawning biomass was 23% of pre-fished levels The same caution as expressed for Zone A must be applied when interpreting these figures for Zone B and drawing conclusions regarding resource recovery A note on resource trends: Resource trends indicated continuing declines in the resource in both Zones A & B

  34. Stock Recovery Strategy Summary Hake has recovered more rapidly than expected and may achieve the target by 2014 as opposed to the target date of 2016. West Coast Rock lobster resource recovery is taking place according to the current planned, modest recovery plan South Coast Rock Lobster resource recovery is on track to meet the 2015 target Abalone resource recovery is not meeting the targeted recovery levels. It should be noted that progress with stock recovery of all stocks is affected by a range of factors outside of setting sustainable TACs, including illegal fishing and environmental perturbations. In the case of abalone, illegal fishing is several times the TAC and continues to depress stock recovery. The stack will not recover to the target levels unless illegal fishing can be reduce dramatically for a sustained period through effective implementation of the Integrated Fisheries Security Strategy The status and resource trends of hake, WCRL and SCRL indicate that illegal fishing is probably not affecting these resources In the case of abalone the demand for the wild product far exceeds supply and its extremely high value continues to drive illegal fishing.

  35. STATUS OF THE DAFF FLEET OF FISHERIES PROTECTION AND RESEARCH VESSELS

  36. The Department’s Fleet of Fisheries Protection Vessels and Research Support Vessels INSHORE FISHERIES PROTECTION VESSEL : VICTORIA MXENGE; RUTH FIRST AND THE LILIAN NGOYI OFFSHORE FISHERIES PROTECTION VESSEL: SARAH BAARTMAN FISHERIES RESEARCH VESSEL: ELLEN KHUZWAYO FISHERIES RESEARCH SHIP: AFRICANA

  37. DAFF FLEET AREA OF OPERATION SADC SADC SA EEZ Marion and Prince Edward EEZ 37

  38. Role of the Vessels RESEARCH VESSELS • The FRS Africana (78m) is a multi-purpose, deep-sea research vessel, used to survey the area of distribution of several major fish stocks, including hake, horse mackerel, kingklip, monk, sole, squid and other demersal species as well as small pelagic species such as anchovy, sardines and round-herring. The methods used are areal expansion trawl surveys, and hydro-acousytic surveys for demersal and pelagic species respectively. Environmental data relevant to the distribution of these species and biological data necessary for understanding of stock dynamics are also collected • The FRV Ellen Kuzwayo (45m) is a coastal multi-purpose research vessel, used to survey West and South Coast rock lobster, linefish, sharks and large pelagics stocks and collect relevant environmental and biological data, using a variety of methods including trap-fishing and long-lining.

  39. Role of the Vessels (cont) • PATROL VESSELS • The Patrol Vessel Sarah Baartman is an offshore patrol vessel deployed to protect South Africa’s deep-sea maritime boundaries against illegal fishing by foreign vessels through inspections, and if necessary, high speed chase and arrests. • The three inshore patrol vessels (Victoria Mxenge; Ruth First; Lilain Ngoyi) protect coastal resources from illegal fishing through deployment of smaller boats, inspections, and if necessary high speed chase and arrest

  40. In March 2012 the tender for new management of vessels withdrawn. On 22 March 2012 the DAFF met with the Chief of the SA Navy (SAN). SAN agreed to assist with all vessel-related functions ( i.e. Research and Compliance) for a one-year period. DAFF fleet would have to fall under the Defence Act. On 28 March 2012 the DAFF fleet was transferred to Simonstown. On 31 March 2012 the DAFF fleet was handed over to the SAN. On 31 March 2012 the MOU between the Minister of Defence and Military Veterans and the Minister of Agriculture, Forestry and Fisheries signed. Transfer of Management to the SAN

  41. Status of the DAFF Fleet There was an initial delay of approximately six months while the SAN trained staff and attended to various technical issues on the vessels. During this period an important pelagic fish recruitment survey was completed and some patrols were carried out by the SAN. Two important research surveys were missed, i.e. demersal surveys on the South Coast. This will temporarily affect the accuracy of research surveys but will not affect the setting of TACs. A new assessment of horse mackerel stocks was missed and will have to be postponed for a year. It will not affect the current assessment of horse mackerel . The FRS Africana will be busy from 22 October 2012 to January 2013. She is currently carrying out a pelagic spawner biomass survey which is critical for setting the anchovy and sardine TACs. She will carry out another critical survey of hake and other demersal fish biomass on the West Coast. The SAN have undertaken to deploy the FRS Ellen Khuzwayo once all crew have been appointed and trained.

  42. Status of the DAFF Fleet (cont) • The FRS Algoa has been transferred to the Department of Environmental Affairs (DEA). • The role of the FRS Algoa predominantly supports the function of the DEA. • The Ruth First and Victoria Mxenge are currently being deployed. • The FPV Sarah Baartman has a main engine software problem and is also due for a scheduled dry docking in November 2012. She will be ready to sail in January 2013. • The SAN will be able to deploy the Lilian Ngoyi in January 2013. • Although there has been a delay in getting the Patrol Vessels to sea, the DAFF has concentrated its enforcement efforts on the monitoring of landing sites and through the deployment of its small craft along the coast. • .

  43. Future Plans • Regular meetings at senior official and technical levels are being held by SAN and DAFF and communication channels have been agreed upon to address issues requiring immediate attention. • DAFF is awaiting a plan of action from the SAN to keep the DAFF fleet in class. This was agreed to in order to ensure that the vessels can be smoothly re-transferred to a new management service provider • DAFF intends to outsource the management of the vessels by the end of March 2013 when the MOU with the SAN expires. • A new tender process for the Vessel Management of the DAFF Fleet is underway.

  44. THANK YOU !!!

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