W: www.feike.co.zaB:B: Feikemanagement.blogspot.com Feikemanagement.blogspot.com T:T: @feikemanagement @feikemanagement

Presentation to the Fisheries Portfolio Committee on the Second Amendment Bill

(2013) to the MLRA15 October 2013

Debunking Two Prevailing MythsDebunking Two Prevailing MythsMyth 1Myth 1

The MLRA (and by implication, SA fisheries The MLRA (and by implication, SA fisheries policy and law) does not policy and law) does not recogniserecognise small-scale small-scale fishersfishers

• Fisheries Policy of 27 July 2001 Fisheries Policy of 27 July 2001 • Fisheries Policy of June 15 June 2005 (ref Slide 2)Fisheries Policy of June 15 June 2005 (ref Slide 2)• Findings of the PC (May 2012) Findings of the PC (May 2012) “Recognise that “Recognise that

there are more than 2200 current small-scale there are more than 2200 current small-scale fishers who employ thousands of people, pay taxes fishers who employ thousands of people, pay taxes

and contribute to the local economies of the and contribute to the local economies of the Northern Cape and Western Cape.” Northern Cape and Western Cape.”

Post 2005, of the 3019 quotas allocated, 2200 Post 2005, of the 3019 quotas allocated, 2200 were allocated to smalle-scale fishers (Clusters were allocated to smalle-scale fishers (Clusters C and D & Linefish) = C and D & Linefish) = 73%73%

Fisheries Clusters: 2005 PolicyFisheries Clusters: 2005 Policy

Cluster A (Capital Intensive)Cluster A (Capital Intensive)Hake Deep Sea TrawlHake Deep Sea TrawlHake Inshore TrawlHake Inshore TrawlHorse MackerelHorse MackerelSmall PelagicsSmall PelagicsPatagonian ToothfishPatagonian ToothfishSouth Coast Rock LobsterSouth Coast Rock LobsterLarge PelagicsLarge PelagicsKZN Prawn TrawlKZN Prawn Trawl

Cluster B (Less Capital Intensive)Cluster B (Less Capital Intensive)WCRL (Off Shore)WCRL (Off Shore)Hake LonglineHake LonglineSquidSquidTuna HandlineTuna HandlineSeaweedSeaweedShark Long Line (Demersal)Shark Long Line (Demersal)

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

Handline HakeHandline HakeWCRL (Near Shore)WCRL (Near Shore)Traditional Line Fish Traditional Line Fish AbaloneAbalone

Cluster D (Low Value, Marginal)Cluster D (Low Value, Marginal)OystersOystersWhite MusselsWhite MusselsBeach Seine NetsBeach Seine NetsKZN Beach Seine (Pilchards)KZN Beach Seine (Pilchards)

Debunking Two Prevailing Myths (cont)Debunking Two Prevailing Myths (cont)

Myth 2Myth 2

That fishing rights in the un-defined That fishing rights in the un-defined category of small-scale fishing sector will only category of small-scale fishing sector will only be allocated to co-operativesbe allocated to co-operatives

Unless one is in a co-operative, a fishing Unless one is in a co-operative, a fishing right will not be allocated to you. right will not be allocated to you.

It is of grave concern that small-scale / It is of grave concern that small-scale / artisinal right holders are being coerced and artisinal right holders are being coerced and forced into co-operatives. forced into co-operatives.

Comments on the Proposed MLRA Comments on the Proposed MLRA Amendment BillAmendment Bill

The Bill seeks to make two key amendments - The Bill seeks to make two key amendments -

Replace “subsistence” fishing with “small-Replace “subsistence” fishing with “small-scale” fishing; andscale” fishing; and

Include the concept of “co-operatives” as a Include the concept of “co-operatives” as a category of “South African Person” which may category of “South African Person” which may be allocated a fishing right under section 18be allocated a fishing right under section 18

The “find-and-replace”: Subsistence FishingThe “find-and-replace”: Subsistence FishingThe amendment Bill seeks to simplistically replace The amendment Bill seeks to simplistically replace

“subsistence” with “small-scale” fishing. “subsistence” with “small-scale” fishing. This is not only impractical but also has serious socio-This is not only impractical but also has serious socio-

eco consequenceseco consequencesAt last count, DAFF has ±7800 subsistence fishers in At last count, DAFF has ±7800 subsistence fishers in

the EC and KZN the EC and KZN Subsistence fishers target ECRL (2300) / linefish Subsistence fishers target ECRL (2300) / linefish

(1900) / oysters (1200) / mussels (1600) & bait (600)(1900) / oysters (1200) / mussels (1600) & bait (600)Subsistence fishers donSubsistence fishers don’’t pay levies / submit monthly t pay levies / submit monthly

catch returns / complete landing slips etccatch returns / complete landing slips etcSmall-scale fishers do. Small-scale fishers do. Other practical and legal realities: Other practical and legal realities:

– Subsistence v small scale re location & access to DAFF Subsistence v small scale re location & access to DAFF and resourcesand resources

– ECRL may not be sold commerciallyECRL may not be sold commercially– Subsistence fish stocks (low value) and fishing Subsistence fish stocks (low value) and fishing

technology not artisinal or small-scale commercial (for technology not artisinal or small-scale commercial (for eg subsistence linefish v small-scale)eg subsistence linefish v small-scale)

A Solution?A Solution?

We do not object to the explicit inclusion of We do not object to the explicit inclusion of “small scale fishing” in the MLRA but – “small scale fishing” in the MLRA but –

– DonDon’’t do so by means of a simplistic “find and t do so by means of a simplistic “find and replace”; andreplace”; and

– The category of small-scale fishing must be The category of small-scale fishing must be adequately defined which is not the case at adequately defined which is not the case at present.present.

Solution proposed is to maintain the Solution proposed is to maintain the “subsistence fishing” category and instead “subsistence fishing” category and instead add a new category “small-scale fishing” and add a new category “small-scale fishing” and make provision under a new Section 21 A (it make provision under a new Section 21 A (it then follows “commercial fishing” in section then follows “commercial fishing” in section 21).21).

The Inclusion of Co-operativesThe Inclusion of Co-operatives– Technically, we do not object to theTechnically, we do not object to theallocated & allocated &

overexploited and collapsed? overexploited and collapsed? – How will co-operatives actually How will co-operatives actually inclusion of “co- inclusion of “co-

operatives” but principally … – operatives” but principally … –

– The PC has already determined that co-operatives in SA The PC has already determined that co-operatives in SA have been a proven failure (May 2012). The Tragedy of the have been a proven failure (May 2012). The Tragedy of the Commons …Commons …

– How will co-operatives work in practice given that all near-How will co-operatives work in practice given that all near-shore stocks are result in poverty alleviation. If all fish is shore stocks are result in poverty alleviation. If all fish is already allocated how will you share the current TAC already allocated how will you share the current TAC amongst 1000’s more? amongst 1000’s more?

– In Vietnam and other jurisdictions, the findings have been In Vietnam and other jurisdictions, the findings have been that Co-ops = increased poverty and resource destructionthat Co-ops = increased poverty and resource destruction

– The SA experience with Co-ops (eg SACFC, Kalk Bay The SA experience with Co-ops (eg SACFC, Kalk Bay Harbour Lights, Ukondleka). Have these been understood?Harbour Lights, Ukondleka). Have these been understood?

– National Development Plan & sharing the fish cakeNational Development Plan & sharing the fish cake

Whether right holders want to pool their quotas in a co-Whether right holders want to pool their quotas in a co-op structure, should be a op structure, should be a choicechoice and should not be and should not be mandatory. mandatory.

Closing RemarksClosing Remarks

The proposed deletion of “subsistence fishing” will The proposed deletion of “subsistence fishing” will directly impact on the rights and obligations of 7000 directly impact on the rights and obligations of 7000 (±35000 dependents) in rural EC and KZN fishers. (±35000 dependents) in rural EC and KZN fishers. These people need to be directly consulted with on the These people need to be directly consulted with on the proposed MLRA Amendments. proposed MLRA Amendments.

Do we really understand the practical, social, Do we really understand the practical, social, economic and biological consequences of introducing economic and biological consequences of introducing co-operatives into the fishing industry? Does history co-operatives into the fishing industry? Does history teach us nothing? Have we understood why poverty teach us nothing? Have we understood why poverty levels and overfishing have not improved in Doringbaai levels and overfishing have not improved in Doringbaai for example. What socio-economic research has been for example. What socio-economic research has been undertaken into co-ops v individual fishing rights?undertaken into co-ops v individual fishing rights?

In Vietnam (And other jurisdictions) it has been found In Vietnam (And other jurisdictions) it has been found that managing resources under open access or a that managing resources under open access or a common pool (or cooperative) typically results in short-common pool (or cooperative) typically results in short-term exploitation at the expense of long- term term exploitation at the expense of long- term sustainability. No one has tenure. No one has sustainability. No one has tenure. No one has accountability or responsibility.accountability or responsibility.

Closing RemarksClosing Remarks

The proposed MLRA Amendment Bill proposes The proposed MLRA Amendment Bill proposes amendments (co-operatives & deletion of subsistence) amendments (co-operatives & deletion of subsistence) that will have profound social, economic and that will have profound social, economic and ecological impacts YETecological impacts YET

The draft bill has been introduced into Parliament The draft bill has been introduced into Parliament without any socio-economic and ecological research or without any socio-economic and ecological research or

analyses of these impacts.analyses of these impacts.

Should these certain impacts not be understood first Should these certain impacts not be understood first before legislative changes effected?before legislative changes effected?

In my view one cannot responsibly and informatively In my view one cannot responsibly and informatively undertake such a legislative amendment process in undertake such a legislative amendment process in the absence of such data. the absence of such data.

Finally, do these proposed amendments not conflict Finally, do these proposed amendments not conflict with Chapter 6 of the NDP? In my opinion, there is a with Chapter 6 of the NDP? In my opinion, there is a fundamental conflict with the NDP. fundamental conflict with the NDP.