Government must learn from mistakes in handing out fishing rights
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With the forthcoming allocation of fishing rights to commercial fisheries, the government has a unique opportunity to reward broad-based BEE (BBBEE) and preserve jobs — but first it must learn from its mistakes.
This October the department of environment, forestry & fisheries will begin the process of allocating rights to 12 commercial fisheries, among them the hake deep-sea trawl fishery and the small pelagic fishery for sardine and anchovy. These two fisheries are by far SA’s most valuable — between them they contribute at least R10.4bn to the economy annually, employ more than 13,000 people and sustain about 52,000 indirect jobs.
With the allocation of long-term, 15-year rights to these fisheries the pressure is on the department to strike the right balance between giving opportunities to aspirant industrialists and preserving the international competitiveness, jobs and investments of existing rights holders. It can learn valuable lessons from the failed allocation of rights to the hake inshore trawl fishery. Since 2016 the allocation of rights to this fishery has been reviewed by the high court eight times, and 30% of rights in the fishery remain disputed and subject to an appeals process.
When allocating rights to the hake inshore trawl fishery the department dramatically increased the number of right holders from 16 to 37 and reduced the share of the allowable catch allocated to established companies by 30%. This caused large losses for the companies with the assets and experience to add value to the catch and maximise employment. Yet at the commencement of the allocation process these companies were already substantially transformed, with the average black ownership of rights holders estimated to be 82%.
The decision to admit large numbers of new entrants to the hake inshore trawl fishery was taken with the objective of transforming the fishing industry, a campaign that was highly necessary in 1998 when the Marine Living Resources Act (fisheries legislation for the postapartheid era) was passed. What the government has not done adequately over the intervening years is to monitor its own progress and adjust the transformation imperative to recognise, celebrate and reward progress.
A vivid example of this is two of the established companies in the hake inshore trawl fishery that were severely disadvantaged by government’s allocations policy. Company A has held rights in the hake inshore trawl fishery for 30 years. In 1992 it was 100% white-owned, but when it applied for 15-year rights ...
This October the department of environment, forestry & fisheries will begin the process of allocating rights to 12 commercial fisheries, among them the hake deep-sea trawl fishery and the small pelagic fishery for sardine and anchovy. These two fisheries are by far SA’s most valuable — between them they contribute at least R10.4bn to the economy annually, employ more than 13,000 people and sustain about 52,000 indirect jobs.
With the allocation of long-term, 15-year rights to these fisheries the pressure is on the department to strike the right balance between giving opportunities to aspirant industrialists and preserving the international competitiveness, jobs and investments of existing rights holders. It can learn valuable lessons from the failed allocation of rights to the hake inshore trawl fishery. Since 2016 the allocation of rights to this fishery has been reviewed by the high court eight times, and 30% of rights in the fishery remain disputed and subject to an appeals process.
When allocating rights to the hake inshore trawl fishery the department dramatically increased the number of right holders from 16 to 37 and reduced the share of the allowable catch allocated to established companies by 30%. This caused large losses for the companies with the assets and experience to add value to the catch and maximise employment. Yet at the commencement of the allocation process these companies were already substantially transformed, with the average black ownership of rights holders estimated to be 82%.
The decision to admit large numbers of new entrants to the hake inshore trawl fishery was taken with the objective of transforming the fishing industry, a campaign that was highly necessary in 1998 when the Marine Living Resources Act (fisheries legislation for the postapartheid era) was passed. What the government has not done adequately over the intervening years is to monitor its own progress and adjust the transformation imperative to recognise, celebrate and reward progress.
A vivid example of this is two of the established companies in the hake inshore trawl fishery that were severely disadvantaged by government’s allocations policy. Company A has held rights in the hake inshore trawl fishery for 30 years. In 1992 it was 100% white-owned, but when it applied for 15-year rights ...
