Department of Environmental Affairs and Tourism PRESENTATION TO THE PORTFOLIO COMMITTEE LONG-TERM COMMERCIAL FISHING RIGHTS ALLOCATIONS 14 JUNE 2005

“ All our natural living marine resources and our marine environment belong to all the people of South Africa”

The allocation policies for long-term commercial fishing rights New commercial fishing rights have to be allocated prior to 31 December 2005 (Section 18(6A)(a) “….Minister may once only…….”. Four year rights are to be replaced with 8-15 year rights. The documentation of policies is a first in SA fisheries management. The 2001 application fee of R6,000 to be replaced with new system.

Consultation over draft, new policies One General Policy and 19 fisheries specific draft policies. 4 Clusters ranging from most capital intensive to the more accessible. Over 6,000 fishers consulted in 53 meetings conducted in towns and cities from Port Nolloth to Richards Bay. A large number of comments received and considered. Appropriate changes made to policies.

Towards a new regime Pre 1994, industry dominated by a few big companies. Post 1994, access was broadened. However, generally the resource has not increased. Transformation has taken the following forms: Empowerment groups have acquired a stake. Introduction of new entrants. Individuals & small enterprises especially inshore. Larger enterprises.

Building a Better System Policy positions have been canvassed with lawyers. Information on performance / impacts since 2001 has been collected. Stakeholders have been consulted. Iimbizo and publishing policies in 4 coastal languages (English, isiXhosa, isiZulu & Afrikaans). A transparent system (Promotion of Administrative Justice Act (PAJA) and Promotion of Access to Information Act (PAIA)).

Building a better system Long-term rights are good for stability, business planning and access to loan capital. Competitive rights (or quota) allocations are preferable to a Charter. Measures to reduce the risk of successful litigation have been taken. Applications by new and those who are re-applying considered separately.

How is an allocation of a right (quota) made? Minister has overall responsibility for allocation of fishing rights. Minister delegates decision-making authority to a departmental official. MINISTER DG:DEAT DDG:MCM RESOLVE Project Management Legal Advice Advisory Committee FISHERIES & AQUACULTURE CC Co-ordination & Management DELOITTE. & SAB&T Forensic investigation (Verification of information)

Continued….. Advisory Committees per fishing sector established. Apply Exclusionary Criteria such as payment of fees, late lodging, etc. Evaluate applications using Comparative Balancing Criteria: transformation, involvement, investment, access to vessel, performance, etc.

Continued….. Rank applicants and establish appropriate cut-off point. Allocate quantum to successful applicants. Announce outcome and present full record of process and decisions taken. Minister considers appeals and make a decision. If process or Minister’s decisions are challenged, then deal with litigation.

Jobs, SME’s and Transformation Both big and small companies are capable of creating jobs. There is a case for smaller companies to be granted enough to perform. Maintaining stability and job security in small coastal towns.

Introducing a new fees structures Applicants to pay for right. The R6,000 fee across the board, charged in 2001 was seen to be unfair. The new fee system ranges from R32,400 for a Hake trawl application to R100 for an Oyster picker. Further a ‘grant of right’ fee will be charged to those who are granted a right.

How will the process unfold? Public Participation Process : 3 March - 11 April 2005. Invite Cluster A Applications : 15 June 2005. Cluster A Distribution Process : 17 June – 1 July 2005. Cluster A Receipting : 14 – 15 July 2005. Cluster A Announcements : September 2005. Invite Cluster B & C Applications : July 2005. Cluster B & C Distribution Process : July 2005. Cluster B & C Receipting Process : August 2005. Cluster B Announcements : November 2005. Cluster C Provisional Lists Process : November 2005 – January 2006. Cluster C Announcements : January 2006. Invite Cluster D Applications : September 2005. Cluster D Distribution & Receipting : September 2005. Cluster D Provisional List Process : December 2005 – January 2006. Cluster D Announcements : January 2006.