Decisions by Minister on appeals lodged in the squid fishery
The purpose of this media statement issued by the Minister of Agriculture, Forestry and Fisheries, Mr Senzeni Zokwana, is to inform the South African public and the squid industry in particular of the Minister's decisions on appeals filed against decisions taken on 30 December 2013 in the squid fishery ("the squid fishery").
The Minister's appeals advisory team, comprising Adv. Shaheen Moolla, Prof. Julian Smith and Ms. Mamakhe Mdhluli initially scrutinized the appeals during June and July 2015. Thereafter the Appeals Team considered and evaluated appeals in the squid sector between 21 August 2015 and 25 August 2015 and again between 9 November 2015 and 17 November 2015.
On 18 November 2015, Minister Senzeni Zokwana was briefed by his appeals advisory team on the 98 appeals that were filed by appellants in the squid fishery. On 19 November 2015, Minister Zokwana decided the appeals in the squid fishery.
It is worth noting that the appeals team had met with representatives of the SA Squid Management Industry ssociation (SASMIA) on Friday 30 October 2015 in order to inform SASMIA as a Section 8 industry representative body that the Minister would be deciding appeals in the squid fishery; and to request SASMIA's advices and inputs relevant to the future management of the squid industry.
Background
A total of 98 appeals were filed in this fishery. Of these, 37 were by right holder applicants and 61 from new entrant applicants. Of the right holder appellants, 7 were unsuccessful applicants (who had continued to fish squid in terms of a section 81 exemption authorization) , while the remaining 30 had appealed either on the basis of effort or because they were dissatisfied with the scores allocated to them.
The Delegated Authority had reserved his decision on 1 application (ie. Keira Fishing CC) in December 2013. This application will be decided by the present DOG (Acting) as she is the repository of authority to decide current section 18 fishing right applications.
The SA Squid Fishery
The squid fishery is one of South Africa's newer fisheries. The commercial jig fishery commenced in the mid-1980s. SA's squid is regarded as one of the finest in the world with up to 100% of the catch exported to Southern Europe.
The fishery is one of the few commercial fisheries that are based in the Eastern Cape due to the geographic locality of the squid resource. The squid fishery is presently facing serious biological threats, in addition to the serious financial instability in its principal export markets (ie. Greece and Spain).
Squid catches peaked between 2002 and 2004 with catches in 2004 reaching a record high of just over 12 000 tons, coupled with very good market conditions. From 2009, squid catches have plummeted to under 8 000 tons annually. In addition, prices for frozen squid have stagnated while operating costs have surged. In 2014, more than 60% of the squid fishing fleet did not go to sea, which resulted in substantial financial hardships for quota holders and their crews.
Our species of squid is short-lived, surviving for hardly longer than one year. Responsible management of the resource is therefore extremely important as annual recruitment is of fundamental importance to the ongoing health of the fishery. The squid fishery is managed in terms of a TAE formula aimed at ensuring with 95% probability that the squid biomass does not drop below 20% of the average pristine abundance, so that future recruitment success is not jeopardised. The effort is regulated in terms of the following framework:
- The maximum number of crew permitted to harvest squid across the fishery is set at 2 422 crew; and
- The maximum number of man days fishing during the season should not exceed 250,000 and
- There are two closed seasons totaling slightly over 4 months; i) A permanent closed period of 5 weeks between October and November to allow for summer spawning; and ii) an additional 3 months in winter to prevent the man-days from exceeding 250,000 , which the 2422 crew already granted the right to fish could otherwise readily and substantially eclipse.
Prior to the allocation of fishing rights in Dec 2013, the average black ownership profile of the right holders in this fishery was 49%. Immediately after the allocation of fishing rights in Dec 2013, the average black ownership profile of the right holders was 62%. Black ownership of the fishery now stands at 61% of all rights issued.
Minister's Decisions
he 98 appeals have been categorized as follows:
- Those successful right holder applicants who have appealed against the decision pertaining to the number of vessels and crew allocated by the DDG on 30 December 2013 (and subsequently corrected in March 2014); and
- Those successful right holder applicants who have appealed on the basis that they were scored incorrectly and their scores ought to be amended. These appellants did not seek an increase in the number of vessels or crew allocated to them;
- The appeals lodged by the 7 unsuccessful right holder appli cants who have been fishing since 2014 under the authority of a section 81 exemption; and
- The appeals lodged by 61 new entrant applicants.
Due to the complexity of these decisions, the Minister has published his reasons and explanations for the decisions in a separate document, which will be made available to every appellant.
A. Minister's Reserved Decisions
Due to the passage of time since the initial decisions were taken, there are a number of appeals where clarity is sought regarding the placement of effort on vessels. Accordingly, the Minister has reserved his decision on the following appeals. The Department will issue correspondence to these appellants as a matter of urgency and seek clarity from them regarding certain specific matters.
- Jurassic Fishing (Pty) Ltd. Reserve decision. The appellant will be required to clarify its use of the vessel Sharon, which is also being utilised by Quintax 151 CC (7.5 crew rights);
- Letap Fishing CC. Reserve decision. The appellant has 3 crew rights on the MFV Vulcan but the vessel owner (Copper Moon 612 (Pty) Ltd) appears to not wish to allow the appellant's permits on its vessel.
- Knysna Fishing Company (Pty) Ltd. Reserve decision. Clarification is required as to whether the appellant has access to the MFV Langusta (4 crew) and MFV Maluti (4 crew).
- Talhado Fishing Enterprises (Pty) Ltd. The appellant's nominated vessel, the MFV Derek, may be fire damaged. The right holder will be required to provide clarity on the status and suitability of this vessel.
- J&B Faulkner CC: Reserve decision. Appellant must provide clarity regarding the placement of its 7-crew permit.
B. Successful Appellants
The following appellants succeeded in having their respective effort allocations increased as stated below:
- Canan Fishing (Ptv) Ltd: The appellant is granted an additional 6 crew on the MFV Conquest (22 crew). This effort is presently being utilised by Proteus Fishing (Pty) Ltd who shall forthwith cease to operate as it does not have a right to fish for squid.
- Premier Fishing SA (Pty) Ltd: The appellant is granted 1 additional crew right on the MFV Southern Fighter (22 crew) and further 1 crew right on the MFV Southern Star (20 crew).
- Umsobomvu Fishing (Pty) Ltd: The appellant is granted 1 additional crew right on the MFV Santa Joana (20 crew).
- Kendal Fishing (Pty) Ltd: The appellant is granted 6 additional crew rights on the MFV Kendal (25 crew) as lntercomp 26 (Pty) Ltd was refused a right and did not file an appeal.
- Talhado Fishing (Pty) Ltd: The appellant is granted 1 additional crew right on MFV Silver Laguna (26 crew).
- Copper Moon 612 1 (Pty) Ltd: The appellant is granted 3 additional crew rights on the MFV Vulcan (26 crew).
- Striker Fishing Fishing Enterprises (Pty) Ltd: The appellant is granted a right to utilise MFV Shivon with 25 crew.
C. The Exemption Holders
Of the right holder applicants who whose long term squid fishing rights were not allocated on 30 December 2013, 7 had filed appeals. Each of these 7 have been granted commercial squid fishing rights as follows :
- June II Fishing (Pty) Ltd: 16 crew on the MFV June II;
- Dodeka Fishing (Pty) Ltd: 21 crew on the MFV Mia Barka;
- Jeffreys Bay Processor (Pty) Ltd: 5 crew on 5 vessels I 1 permit each (MFV's Nomvuyo I Sceptre I Jade I Silver Explorer & Raptor);
- Highland Fisheries (Pty) Ltd: 16 crew on the MFV Highland Queen;
- STM Fishing (Pty) Ltd: 16 crew on the MFV Oresta;
- Swampo (Pty) Ltd: 8 crew on the MFV Maryke; and
- Stans Marine Harvesting CC: 12 crew in total on the MFV Popeye, MFV Mtagati and MFV Pegasos.
D. New Entrant Appellants
With regard to the 61 appeals by the new entrant appellants, these appeals have been denied for the following reasons:
(a) The squid resource is under tremendous biological pressure. The fishery itself remains in an economically precarious state. To permit any new entrants to the fishery would be reckless and contrary to the objectives set out in Section 2 of the MLRA;
(b) The appeals process has resulted in an additional 125 crew rights being addeid to the fishery, which is extremely close to the upper limit set for the fishery; and
(c) The black economic ownership profile of the fishery has improved substantially since 2005. Current right holders have successfully engaged in a process of internal transformation, which has resulted in a 61% black ownership profile for the fishery.
E. Exemptions Granted in 2014 to 10 Entities
The exemptions granted during 2014 to the following 9 (nine) entities will automatically terminate upon the Minister taking his appeal decisions:
(a) June II Fishing (Pty) Ltd;
(b) Dodeka Fishing (Pty) Ltd;
(c) Jeffreys Bay Processor (Pty) Ltd;
(d) Highland Fisheries (Pty) Ltd;
(e) STM Fishing (Pty) Ltd;
(f) Swampo (Pty) Ltd;
(g) Stans Marine Harvesting CC;
(h) lntercomp 26 (Pty) Ltd; and (i) Proteus Fishing (Pty) Ltd.
The exemption granted to Kelro Fishing CC shall continue in force but the DOG (Acting) should decide the application without delay and as a matter of urgency.
Each appellant will be provided with written notification of the Minister's decision, as well as a copy of the Regulation 5(3) Appeal Report pertaining to its appeal.
Statement with appeals register [PDF]
For more information, please contact:
Bomikazi Molapo, Minister's Spokesperson
Cell: 078 801 3711
E-mail: BomikaziM@daff.gov.za
