New laws are soon to be introduced that will overhaul the billion-rand fishing industry Marianne Merten In an effort to root out widespread corruption and fraud in the fishing industry, Marine and Coastal Management (MCM) has launched one of the most decisive recent policy reviews and adopted “a carrot and stick” approach. It is understood the new policy is partly an acknowledgment of the failure of previous attempts to transform the R2,4-billion industry, which remains dominated by five white commercial companies. MCM has revised the allocation of fishing quotas to eliminate the trade in paper quotas – fishing rights for immediate resale and great profit by companies without vessels or crews, and the use of front companies – usually with a strong black empowerment component on paper but no real assets. Instead, long-term fishing rights of up to 15 years are linked to industry transformation like effective share schemes or the transfer of ownership of, for example, vessels. For the first time subsistence fishermen will be recognised as a category eligible for quotas, separate from commercial or recreational fishing rights. This will mean that fishermen who rely on going to sea to provide food for their families will no longer be regarded as poachers. To create a breathing space from processing an average of 11 000 quota applications and hundreds of legal appeals, the current quotas have been extended until the end of the 2001 season. The new policy has received a cautious nod from the industry. One source welcomed attempts to root out widespread corruption, but said the extension of existing quotas until the 2002 season effectively gave free reign for corrupt practices for another year. Chris Nissen, chair of fishing company Sea Harvest, said his company welcomed the new initiative as it will create stability in the industry. This in turn will mean secure jobs and the ability to compete internationally. “We appreciate the bold step to instill confidence in the industry.”
The Minister of Environmental Affairs and Tourism, Mohammed Valli Moosa, said it was time unscrupulous practices came to an end, without destroying other positive industry initiatives. “Some of them will be caught out immediately. When they are caught out, we withdraw their [fishing] rights,” said Moosa. The success of the new allocation process largely depends on the yet to be established verification unit which will inspect fishing companies’ track records. It is likely to be outsourced. The unit will bring together lawyers, accountants, community liaison officers and marine scientists. Its officials will visit fishing companies and processing plants, and inspect business plans and annual reports. The unit will also collect evidence from crews, workers and ship captains. “Unless we have the mettle to intervene in the misconduct, no one will take us seriously,” said MCM deputy director general Horst Kleinschmidt. The verification unit will be funded through the Marine Living Resources Fund (MLRF), which receives about R45-million annually from the government. In addition, the proceeds of the sale or auction of confiscated fish – R9-million so far this year – will also be paid into the fund. The MLRF will also benefit from revised fee structures. The across-the-board R100 quota application fee is to increase according to the tonnage and rarity of fish caught. New fish landing fees are expected to increase radically. For example, MCM charges R33 a ton of hake, but the proposed new fee would be R250 a ton. MCM also intends boosting its inspectorate to ensure compliance. Some steps have already been taken to ensure better compliance by fishing companies, including the installation of video equipment with night vision capacity. But there are only 120 inspectors with monthly take-home pay ranging from R800 to R4500 for more than three decades of experience. The controversial Fishing Transformation Council, a ministerial advisory body on quotas, will be closed down after consistent accusations of corruption and ineptitude. But few believe the road to an efficient department will be easy as ill-discipline and outright fraud still exist. A few months ago ministerial letterheads were stolen from the MCM offices and used to allocate fishing rights in the name of the deputy minister. Although the letters were franked and posted from the MCM offices, a culprit has yet to be identified.