1. Annual Report: Marine Living Resources Fund Presentation to the Portfolio Committee October 2014

2. 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

4. 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

5. 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

6. 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 )

7. 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)

8. 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.

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

10. 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 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

11. ACHIEVEMENTS 2013/14 : Aquaculture Development
National Aquaculture Policy Framework (NAPF) was approved by Cabinet (Government Gazette Notice No , 11 October 2013).
Implementation of National Aquaculture Strategic Framework (NASF) of 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.

12. 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.

13. 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

14. 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 (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.

15. 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

16. 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 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

17. 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.

18. 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

19. 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

20. 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

21. PERFORMANCE AGAINST TARGETS
Aquaculture and Economic Development

22. PERFORMANCE AGAINST TARGETS
Marine Resource Management

23. PERFORMANCE AGAINST TARGETS
Marine Resources Management (Continue…)

24. PERFORMANCE AGAINST TARGETS
Monitoring, Control and Surveillance

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

26. PERFORMANCE AGAINST TARGETS
Fisheries Sector Jobs

27. STATEMENT OF FINANCIAL POSITION

28. REPORT OF FINANCIAL PERFORMANCE

29. STATEMENT OF CHANGES IN NET ASSETS

30. CASH FLOW STATEMENT

31. STATEMENT OF COMPARISON OF BUDGET AND ACTUAL INFORMATION

32. 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

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

34. Thank you