Annual Report: Marine Living Resources Fund 2013- 2014 Presentation to the Portfolio Committee October 2014

Presentation Outline Purpose Introduction Strategic Overview Governance Overview Achievements for 2013/2014 Aquaculture Fisheries Research & Development Marine Resource Management Monitoring, Control & Surveillance Goals and Objectives Performance Against Targets Statement of Financial Position Report of Financial Performance Statement of Changes in Net Assets Cash Flow Statement Statement of Comparison of Budget and Actual Information 2014/2019 Key Focus Areas Recommendations

INTRODUCTION Marine Living Resources Fund (MLRF) A Schedule 3 A Public entity of the Department of Agriculture, Forestry and Fisheries. Finances the operations of the Fisheries Branch of the DAFF Responsible for managing development, management, monitoring and sustainable uses of marine living resources, to protect the integrity and quality of the marine ecosystem, and to ensure growth of the aquaculture sector Covers the operational costs of: Aquaculture and Economic Development Fisheries Research and Development Marine Resources Management Monitoring, Control and Surveillance Operations and Financial Management

INTRODUCTION: Strategic Overview Promote sustainable use of fisheries resources and recovery of depleted stocks through recovery plans and strategies for hake, abalone, WCRL, line-fish by 2018/19 Ecosystem approach for fisheries management - fishery specific research Implement National Aquaculture Policy Framework (NAPF); broadening scope of aquaculture sector

Accounting Authority is Director General of DAFF. Governance Overview Accounting Authority is Director General of DAFF. Management - All staff under the leadership of the Deputy Director General are employed under Branch Fisheries Management of DAFF. Audit Committee in place and fully functional. Two Chief Director posts vacant have been advertised. Two Director posts vacant, one signed off for advert, other under review. (as on 1.10. 2014)

Overview of the Policy Environment MLRF implements the strategic goals and objectives of Program 6 of DAFF guided by and contributing specifically to Outcomes 4, 7 and 10 National Development Plan (NDP) New Growth Path (NGP) Industrial Policy Action Plan (IPAP) Strategic Integrated Project (SIP) 11 Integrated Growth and Development Plan (IGDP) Agricultural Policy Action Plan (APAP)

Overview Policy Environment Key enabling Policy developments for MLRF The limited amendment of the Marine living Resources act 1998 (Act No. 18 of 1998) undertaken. Policy for Small Scale Fisheries Policies in South Africa Aquaculture development policy frameworks General and 8 sector specific Fishing rights allocation policies updated.

To promote good Governance ACHIEVEMENTS 2013/14 To promote good Governance Obtained an unqualified audit report both on financial and performance information.

ACHIEVEMENTS 2013/14 : Aquaculture Development To promote the participation and growth of the Aquaculture sector : 20 farms were given technical support to access development funding totalling R87million, the expected outcome of this support is Attraction of private Investment worth R384 million into the aquaculture sector Expected growth in production output to 5 000 tons and 525 direct jobs will be created Completed aquaculture sector performance study and Published the South African Aquaculture Yearbook, an important resource for the aquaculture sector

ACHIEVEMENTS 2013/14 : Aquaculture Development National Aquaculture Policy Framework (NAPF) was approved by Cabinet (Government Gazette Notice No. 36920, 11 October 2013). Implementation of National Aquaculture Strategic Framework (NASF) of 2012 resulted in development of several programmes supporting the aquaculture industry: Bio-security framework for aquaculture :Aquatic Animal Health Strategic Framework Finfish Monitoring and Control Programme A Food Safety Programme for aquaculture Public Understanding of Aquaculture Programme was done in collaboration with the aquaculture industry and FAO Review of all pieces of domestic legislation governing aquaculture was undertaken and completed. 24 pieces of legislation affect and control aquaculture.

ACHIEVEMENTS: Fisheries Research & Development Annual Total allowable Catch /Total Allowable Effort in key stocks being depleted Abalone, Hake, West Coast Rock lobster and Linefish were set in line with the agreed Operational Management Procedure (OMP) consulted with relevant fisheries stakeholders. Management measures adjusted and incorporated in the amended Fishing Permit Conditions and catch landings reconciled Partnerships with industry on vessel deployment have been used to supplement on the limited vessel capacity. Maintained scientific advice and recommendations to determination of sustainable catch levels for all 22 sectors of fisheries Strong collaboration with nine Universities through Memoranda of understanding to enhance research capacity.

ACHIEVEMENTS: Fisheries Research & Development One of the two fisheries research vessel has been back at sea. Continued to investigate the feasibility of a number of potential new fisheries, including possible new fisheries for octopus, redbait, hagfish, whelks and mussels, and pota squid Challenges: Large Research vessel Africana has not been back at sea, its aging and will require replacement. Research capacity is limited by the number of experts and is not adequate for number of fish species to be investigated including the new species. New species under investigation has not yet yielded results of economic viability

Achievement: Marine Resource Management To prevent the over exploitation of fish stocks governments applies restrictive measures (regulations) or policy tools: Total Allowable Catch (TAC) and fishing efforts limits Total Allowable Effort (TAE) to monitor compliance with such regulations. The second long term right allocation process was undertaken on eight sectors. The Fishing rights allocation program 2013 (FRAP 2013) was concluded albeit the objections. General and sector specific policies were revised and approved. Shortcomings were identified in the FRAP2013 process and corrective measures are being undertaken.

Achievement: Marine Resource Management Challenges: Historical legacy of an untransformed sector, illegal practices, limited capacity impact on these FRAP processes. Finalisation of the 2013 Fishing Rights Allocation Process, including the processing of appeals

ACHIEVEMENTS : Monitoring, Control & Surveillance Fisheries protection vessels has been at sea to ensure surveillance and protection. Increased law-enforcement 1593 land-based inspections 497 Sea based inspections. 292 right holder investigations Seven (7) foreign IUU vessels were arrested and successfully charged Multiple inspections were conducted on vessels at landing sites, due to the 100 jobs which were created through Working for fisheries program (WFFP) in the commercial monitoring project to monitor commercial landings. The landing sites were monitored from Port Nolloth (seasonal) to Port Elizabeth

ACHIEVEMENTS : Monitoring, Control & Surveillance Integrated Fisheries Security Strategy has been reviewed and updated through a consultation process with the Institute for Security Studies Joint operations are conducted and led to confiscations, arrests and successful prosecution. Increased law enforcement efforts within four key fisheries sectors; Hake, Abalone, West Coast Rock Lobster and Traditional Line Fish in addition to other fisheries sectors. Challenges: The number of sea days of the protection vessels has been limiting. The integration of sea based operations is not adequate. Prosecution capacity is still limited and requires more enhancement in collaboration with the relevant departments Although the anti poaching efforts have increased, poaching rate has not dropped to desired levels.

GOALS AND OBJECTIVES  SG 1: Increased profitable production of food, fibre and timber products by all categories of producers (subsistence, smallholder and commercial) Strategic objectives SO 1: Promote efficient production, handling and processing of food, fibre and timber SO 2: Coordinate government food security initiative SO 3: Improve production systems anchored in commodities with a competitive and comparative advantage in each province SO 4: Comprehensive support towards rural development  

SG 2: Sustained management of natural resources GOALS AND OBJECTIVES SG 2: Sustained management of natural resources Strategic objectives SO 1: Ensure the sustainable management and efficient use of natural resources SO 2: Ensure protection of indigenous genetic resources SO 3: Increase contribution to green jobs to improve livelihood

GOALS AND OBJECTIVES SG 5: Increased contribution of the sector to economic growth and development Strategic objectives SO 1: Increase growth, income and sustainable job opportunities in the value chain SO 2: Increase the level of public and private investment in sector 23 SO 3: Increase domestic and international market access for South African and African agricultural, forestry and fishery products SO 4: Increase production of feedstock to support the manufacturing sector

PERFORMANCE AGAINST TARGETS Aquaculture and Economic Development

PERFORMANCE AGAINST TARGETS Marine Resource Management

PERFORMANCE AGAINST TARGETS Marine Resources Management (Continue…)

PERFORMANCE AGAINST TARGETS Monitoring, Control and Surveillance

PERFORMANCE AGAINST TARGETS Monitoring, Control and Surveillance (Continue…)

PERFORMANCE AGAINST TARGETS Fisheries Sector Jobs

STATEMENT OF FINANCIAL POSITION

REPORT OF FINANCIAL PERFORMANCE

STATEMENT OF CHANGES IN NET ASSETS

CASH FLOW STATEMENT

STATEMENT OF COMPARISON OF BUDGET AND ACTUAL INFORMATION

2014/19 Key Focus Areas The development of the aquaculture as a growth sector under Phakisa. Implementation of an integrated fisheries security plan as part of Phakisa Marine protection. The revitalization and strengthening fishing harbours operational management. Finalization of the regulations and Implementation of the small scale fishing policy. Development of inland fisheries programme. Strengthen the fisheries governance systems including rights allocation, permitting. Vessel management and operations system. Expanding the Working for Fisheries Programme in support of the small scale fishing policy and aquaculture development and to grow the number of jobs in the fishing sector Continued efforts to rebuild depleted fish stocks

Recommendations That the Portfolio Committee recommends the tabling of the 2013/14 Annual Report of the Marine Living Resources Fund.

Thank you