Overview of the South African Fisheries

29 May 2014

OVERVIEW OF THE SOUTH AFRICAN FISHERIES

BACKGROUND

South Africa’s fisheries sector is globally recognised in terms of its production and management. The fisheries sector is broadly divided into marine and inland fisheries, which are further divided into capture, aquaculture and, to a lesser extent, culture 1 fisheries. The capture fishery is subdivided into commercial, sport and recreational, and subsistence or small-scale fisheries. The marine fisheries are more developed and have structured regulatory and legislative instruments, while inland fisheries is underdeveloped and has fragmented legislative instruments.2

Fisheries play a crucial role in terms of job creation, livelihoods and sustainable development in many the coastal and inland communities. The sport and recreational fishing (inland and marine) has approximately 2.5 million participants annually, translating to over R18 billion worth of direct and indirect economic returns in terms of income derived from jobs, salaries and businesses.3 Estimating the total value and impact of the commercial fishery (marine and inland) is difficult to estimate due to short-comings, mainly in the inland commercial fishing sector, such as limited access to resources, low demand for freshwater fish, the lack of an inland fisheries policy and unclear fisheries management objectives, as well as the scarce and outdated nature of the information. The marine commercial fishing industry currently employs approximately 27 000 people directly and approximately 100 000 indirectly and is valued at approximately R6 billion annually. 4 However, there are more than 7 300 subsistence and small-scale fishers in 137 marine fishing communities of which approximately 53 per cent are food insecure. Employment figures and information on the value of freshwater aquaculture is scarce and poorly documented, however, marine aquaculture employs more than 1 600 permanent employees and is valued at R379 million. 5

Both the capture and aquaculture sectors of the fisheries industry require specific research and management interventions in order to be sustainable. Promoting aquaculture may relieve the pressure on the wild fish stocks and create an opportunity to meet the growing demand for fish. The main challenge facing the country is to create a balance between optimising the social and economic potential of the sector, while protecting the integrity of the country’s marine and coastal systems.6 This paper provides the fishing sector overview and matters

1 Culture fishery refers to the release of seeds or juveniles into the wild environment to be harvested later or simply for stock enhancement. 2 Marine Living Resources Act, 1998 (Act No. 18 of 1998); McCafferty et al., (2012). 3 Leibold & Van Zyl (2008). 4 McCafferty et al. (2012); Department of Agriculture, Forestry & Fisheries (2012a). 5 Department of Agriculture, Forestry and Fisheries (2012a, 2013a); McCord & Zweig (2011). 6 Department of Agriculture Forestry & Fisheries (2012a).

Research Unit: Joseph Ginindza Author Contact number: 021 403 8339 1 that the Portfolio Committee on Agriculture, Forestry and Fisheries (hereafter referred to as the Committee), may need to consider.

LEGISLATIVE MANDATE OF THE FISHERIES MANAGEMENT BRANCH

The entire legislative mandate of the Department is derived from section 27(1) (b) of the Constitution. The Department is primarily responsible for Acts related to agriculture, forestry and fisheries. The Fisheries Management Branch (the Branch) of the Department is responsible for implementing the Sea Fishery Act (SFA), 1988 (Act No. 12 of 1988) and the Marine Living Resources Act (MLRA), 1998 (Act No. 18 of 1998). It is worth mentioning that, following the Cabinet restructuring in 2009/2010, certain sections of the mentioned Acts were fragmented between different departments and are no longer mandates of the Department. Both the SFA and the MLRA seek to promote the conservation and sustainable utilisation of marine living resources in a fair and equitable manner to the benefit of all the citizens of South Africa.

KEY POLICIES FOR OVERSIGHT CONSIDERATION

 General Fishing Policy and Sector-Specific Policies

The marine fishery is currently composed of 22 fishing sectors that seek to achieve different objectives. Each marine fishing sector is guided by a specific policy which is unique to that sector in terms of objectives and management. There is, however, an umbrella policy called a General Fishing Policy. The purpose and objectives of the General Fishing Policy, together with the Fishery Specific Policies, are to achieve optimum utilisation and ecologically sustainable development of marine living resources. Furthermore, the policies seek to give effect to any relevant obligation of the national government in terms of any international agreement or applicable rule of international law. One of the key objectives within each sector policy is to restructure the fishing industry to address historical imbalances and to achieve equity within all branches of the fishing industry. The General Fishing Policy and related sector-specific policies are structured to apply approaches to fisheries management which contribute to food security, socio-economic development and the alleviation of poverty.

 Small-scale Fisheries Policy

The Small-scale Fisheries Policy has broad objectives mainly targeted at formally recognising small-scale fishers who were previously excluded from the fishing sector. The overarching principles of sustainable utilisation and management of marine living resources are also adopted in the Small-scale Fisheries Policy. Distinct to the Small-scale Fisheries Policy, is the preferential access to certain marine resources, co-management of resources, and Government support and development through investment in value-addition and marketing infrastructure.7

7 Department of Agriculture, Forestry & Fisheries (2012).

Research Unit: Overview of the South African Fisheries 2  National Development Plan

The National Development Plan (NDP) is a long term strategy that seeks to eliminate poverty, inequality and unemployment by 2030. The NDP recognises the importance of scientific research and monitoring on fisheries resources. The NDP further recognises the importance of small-scale and artisanal fishing - however, it does not regard small-scale fisheries as a vehicle to address poverty and unemployment particularly due to the limited fisheries resources. The NDP discourages increasing the number of participants in the small- scale fisheries sector because it reduces the net gain per participant and increases the difficulty of law enforcement. The NDP encourages research into new fisheries to expand opportunities.8 This approach therefore needs to be kept in mind when evaluating fisheries policies and the allocation of fishing rights.

KEY ISSUES FROM THE PREVIOUS TERM

Leadership instability

The Fisheries Management Branch spent the whole of the previous term (2009 - 2014) without a duly appointed Deputy Director-General. A close estimate is that more than ten officials acted in the position between January 2010 and March 2014. Those who acted were neither qualified nor experienced in fisheries management. The post gets advertised every year, however, the appointment process ends without a proper appointment. Filling of vacancies in general has also been problematic in the Branch, with some vacancies dating back to before the 2009-2010 Cabinet restructuring.

Furthermore, the Auditor-General raised issues about the reliability of reported performance. Other matters that need attention are inconsistencies in planned objectives, indicators and targets between the annual performance plans and annual reports. There was a regular emphasis on addressing the persistent violation of procurement and contract processes.

 The Committee may need to enquire about the progress made towards appointment of a qualified and experienced candidate for the Deputy Director General post and the other junior posts.

 The Committee may need to enquire whether the matters raised by the Auditor General have been addressed or not?

8 National Planning Commission (2012).

Research Unit: Overview of the South African Fisheries 3 Fishing rights allocation

The process of allocating fishing rights is supposed to be guided by the outcomes from periodic performance reviews that seek to ensure that right holders continue to perform satisfactorily throughout the duration of the right. There are, however, no fixed review intervals and this process is not guided by a statutory framework. It can be as and when the Department chooses to conduct it. This lack of clarity can be viewed as a policy gap. In respect of prior rights reallocation, the Department had to establish the state of affairs, particularly with regard to the measures which are going to be evaluated. As a result, the 2009/10 performance review questionnaires were designed to include questions relating to services and the efficiency of the Fisheries Management branch (administration), fishery management, socio-economic development and other qualitative and quantitative categories. The 2009/10 Performance Reviews of Commercial Fishing Rights report was released in 2012 and has not been presented to the Committee.

The 2013 policy review process was reported by stakeholders to be marred by poor consultation without proper engagement with interested and affected parties. This culminated in a rushed and ill-advised fishing rights allocation process (FRAP) involving 8 fishing sectors9 where fishing rights were set to expire at the end of December 2013. During February 2014, the Department issued a two-month extension of validity of the expired fishing rights, pending the completion of the fishing rights appeal process at the end of April 2014. Furthermore, the former Minister of Fisheries, Ms Tina Joemat-Pettersson, appointed Harris, Nupen and Molebatsi Attorneys and legal expert Halton Cheadle to audit and probe the whole fishing rights allocation process, particularly issues relating to corruption, violation of set rules and unlawfulness of decisions. The report has since been submitted to the Department and may need to be discussed by the Committee. A parallel process of taking the Department to court over alleged irregularities in the fishing rights allocation within the linefish sector initiated by the South African Commercial Line-fish Association (SACLA), was also underway. In April 2014, the Western Cape High Court ruled in favour of SACLA that previous fishing right holders10 be allowed to continue fishing until a full legal review of the 2013 line-fish rights allocation process is concluded. 11 The review process is yet to be initiated and the issue remains unresolved. The entire 2013 FRAP has since been scrapped, including all decisions and outcomes. All this happens at a time when fishing rights in the abalone sector expires at the end of July 2014, and the policy review that informs fishing rights allocation in the abalone sector has not been initiated yet. The Department has not communicated the future of the abalone sector as it is already too late to initiate any process. This matter might end up in court as well if it is not properly managed.

9 The 8 fishing sectors are the demersal shark, KwaZulu-Natal prawn trawl, traditional line fish, hake handline, squid, white mussels, and oyster fisheries. 10 Previous right holders refer to the fishers whose fishing rights expired at the end of December 2013. 11 S.A. Commercial Line Fish Association vs The Minister of Agriculture, Forestry & Fisheries & 2 others – Interdict 2569/14. Western Cape High Court Roll 2014/33.

Research Unit: Overview of the South African Fisheries 4 Fishing rights in 8 fishing sectors (netfish, large pelagics, hake inshore trawl, inshore West Coast rock lobster, offshore West Coast rock lobster, sea weed, horse mackerel and Patagonian toothfish) expires during 2015. 12 At this point, policies are yet to be reviewed, and the consultation process has not yet been initiated. The 2015 FRAP looks set to also be problematic. It is worth noting that the mentioned fisheries are of high value in terms of revenue and employment. Discussing the 2015 FRAP preparation needs to be a matter of urgency in the Committee because time is running out, particularly in light of the fact that the Department is already 18 months behind the schedule of a normal fishing rights allocation process.

 The Committee needs to be briefed on the outcomes of the 2009/10 commercial fishing rights report, particularly, on how the Branch plans to address issues that came out of the review.

 It is important for the Committee to be informed by the Branch about what has been established in relation to the fishing rights holders whose rights legally expired at the end of 2013 in terms of valid Performance Reviews.

 The Branch has to brief the Committee on the audit outcomes from the Harris, Nupen and Molebatsi Attorneys and indicate the way forward with clear timelines.

 The Branch needs to inform the Committee on how it plans to make the 2015 fishing rights allocation process a success.

 The Committee may need to recommend that the Branch considers developing a policy that will govern the review of fishing rights and the process leading to the allocation of fishing rights.

Research and patrol vessels

The Branch has two fisheries research vessels 13 and four patrol vessels with the primary mandate of conducting scientific research that informs and guides the sustainable use of marine fisheries resources as well as ensuring compliance and enforcement of fisheries laws. To supplement these vessels, there is a fleet of rubber ducks, ski boats and land-based patrol vehicles. The fisheries research vessels are the Africana and Ellen Khuzwayo and the patrol vessels are Sarah Baartman, Lilian Ngoyi, Victoria Mxenge and Ruth First. In addition to their role as fisheries protection vessels, they are equipped to carry out sea rescues and disperse oil spills. They are each fitted with a powerful fire fighting monitor as well as 10 000 litres of oil dispersant chemicals. 14

12 This information was extracted from each sector-specific policy. It is worth noting that some fishing rights expire in July 2015. 13 The Department had 3 vessels, however, 1 vessel (the Algoa), was transferred to the Department of Environmental Affairs in September 2012. 14 Department of Agriculture, Forestry and Fisheries (2013; website).

Research Unit: Overview of the South African Fisheries 5 The fisheries research and patrol vessels spent most of the time between March 2012 and December 2013 docked following the bungled tender 15 process. The South African Navy also failed to deliver on manning and sailing the vessels. Activities on conducting scientific research that informs and guides the sustainable use of marine fisheries resources as well as ensuring compliance and enforcement of fisheries legislation were disrupted. The cost of the unregulated exploitation of marine resources cannot be accurately quantified, and due to the absence of some vessels, the resources remain vulnerable to over-exploitation.

 It is important for the Committee to deliberate on the “Docked Vessels” report from the Public Protector as the vessels issue has not been discussed in the Committee, so there is no known commitment from the Department to address the matters that were found to be seeking action.

Sustainability of fisheries

The status of the marine resources shows that most of the resources are maximally utilised, and therefore the possibilities of increasing pressure vary considerably among the resources. Of the 22 fisheries sectors, 17 sectors are closely monitored in terms of research. While some resources show signs of recovering, the state of other resources is deteriorating, particularly near-shore resources due to their accessibility as compared to offshore resources. Therefore, the future allocation and sustainable management of the resources needs to strike a balance between job creation and job security. The future of the marine fisheries stocks depends on the Branch and Executive complying with its own stock recovery plans and recommendations from the researchers.

During May 2014, the media reported that the abalone fishery may be closed due to a failure to recover to sustainable levels. This happens at a point of heightened poaching of the resource.16 The Department is reported to be considering allowing the fishing of red steenbras, a protected species that is facing extinction, as an alternative to the proposed closure of the abalone fishery.

 The Committee should consider encouraging the Executive of the Department to implement scientific advice on fishery stock management, to avoid derailing stock recovery targets.

Small-scale fisheries

In 2005, most fishing communities felt that Section 18 (1) of the Marine Living Resources Act, 1998 (Act No. 18 of 1998) had effectively excluded artisanal fishers by only catering for subsistence, recreational and commercial fishers. The complexity emanating from the MLRA

15 The tender included providing crews for the vessels; technical management (maintenance, repair and life cycle management); provisioning; fuelling; accounting and ensuring the safety and seaworthiness of the ships. 16 October (2014).

Research Unit: Overview of the South African Fisheries 6 and the competitive nature of the application process for the medium term (in 2001) and long term (in 2005) fishing rights allocation resulted in a large percentage of traditional small-scale fishers being excluded. The Masifundise Development Trust and others took the then Minister of Department of Environmental Affairs and Tourism to court over this exclusion. Some issues raised in the court papers are that the exclusion has resulted in high levels of poverty, food insecurity and unsustainable livelihoods in coastal villages. The Western Cape High Court signed an Equality Court order that small-scale fishermen be allowed to continue catching fish while a policy to improve their rights is being drafted. 17 It was this ruling that resulted in the development of the ‘interim relief programme’ which is an exemption to accommodate those in the fishing sector who were previously excluded while a policy was being developed. Despite the ruling, Section 24 (b) (iii) of the Constitution requires that the environment and resources should be used to ensure sustainable development and promote justifiable economic and social development. 18

This sector has always been sidelined and has thus achieved limited growth primarily as a result of the legacy left by both colonisation and apartheid, when laws were put in place to promote commercial fisheries at the expense of the small-scale fisheries. To this end, a Policy for the Small-scale Fisheries Sector was finally published in 2012 after a lengthy development and consultation process.19 The policy recognised cooperatives and communities as viable fishing rights holders, whereas prior to 2014, the MLRA did not recognise cooperatives or communities as legal rights holders. This implied that the Small- scale Fisheries Policy could only be implemented after the amendments that recognise cooperatives and communities were effected in the MLRA. The Marine Living Resources Amendments Bill (the Bill) has, since 19 May 2014, been signed into law by the President of the Republic of South Africa.

The contributions of small-scale fisheries to poverty alleviation and food and nutrition security are increasingly being recognised, most notably in the Rio+20 outcome document 20, in the Voluntary Guidelines for the Responsible Governance of Tenure of Land, Fisheries and Forests in the Context of National Food Security, and in the development of the Voluntary Guidelines for Securing Sustainable Small-scale Fisheries in the Context of Food Security and Poverty Eradication. These initiatives aim to ensure that fishers and their communities have tenure security and market access while safeguarding their human rights. 21

 During the public hearings on the Marine Living Resources Amendment Bill, the Department did not have a realistic and costed implementation plan of the policy. The Committee will have to be briefed on the Small-scale Fisheries Policy’s implementation plan.

17 Supreme Courts of Appeals (2006); Equality Court (2007); Department of Agriculture, Forestry & Fisheries (2012a). 18 Constitution of the Republic of South Africa Act, 1996 (Act No. 108 of 1996). 19 Department of Agriculture, Forestry & Fisheries (2012b). 20 FAO (2012, 2014); United Nations (2012). 21 FAO (2012, 2014); United Nations (2012).

Research Unit: Overview of the South African Fisheries 7  Clarity on the future of the interim relief programme that has almost become permanent after having run for 7 years. This is important as the operation of this programme is not sustainable.

Marine Living Resources Fund

The Marine Living Resources Fund (MLRF), a schedule 3A Public Entity as specified under the Public Finance Management Act, 1999 (Act No. 1 of 1999), is the main source of funding for the operational activities of the Fisheries Management Branch. The budget of the Branch has been shrinking annually since 2012/13, and this affects the delivery of the mandate of the Branch. During the 2014/15 financial year, the Small-scale Fisheries Policy is supposed to be implemented as that was a matter of emphasis from the small-scale fishers during the public hearing on the amendment of the MLRA. However, given that the implementation of the policy requires at least R400 million over a 3-year period, and the budget has been reduced from R433.7 million during the 2013/14 financial year to R427.8 million in the 2014/15 financial year, means that the policy may not be implemented. This budget reduction may also impact on fisheries research and law enforcement. 22

INTERNATIONAL INSTRUMENTS

The Department is also guided by regional and international obligations. The country is therefore bound by the international agreements and legislation which are signed as a guide towards the sustainable use of marine resources. The prominent international agreements which South Africa subscribes to are the United Nations Convention on the Law of the Sea (1982), the Code of Conduct for Responsible Fisheries (FAO 1995), the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES 1975) and the Reykjavik Declaration (2001) which aims at the sustainable use and protection of fisheries resources.23 Important principles fostered by the Code are the conservation and rebuilding of marine resources, together with sustainable use to ensure a food source, a livelihood and a heritage for future generations. These principles are to be achieved through responsible fisheries management based on best scientific knowledge, supportive legislation, inclusive management, effective monitoring and enforcement, and sustainable fishing effort. At regional level, important obligations and agreements include those from the Regional Fisheries Management Organisation, the South African Development Community, the Benguela Current Commission and South West Indian Ocean Fisheries Commission. The common objectives of these regional bodies are towards sustainable use of the resources, conservation, promotion of food security and alleviating poverty. 24 Illegal, unreported and unregulated fishing remains a major threat to South Africa’s marine ecosystem. The binding FAO Agreement on Port State Measures envisages that contracting parties apply the Agreement to prevent, deter and eliminate illegal, unreported and unregulated fishing. While

22 National Treasury (2014). 23 Department of Agriculture, Forestry & Fisheries (website). 24 Department of Agriculture, Forestry & Fisheries (website).

Research Unit: Overview of the South African Fisheries 8 the extent of the implementation of these international agreements vary, South Africa is generally ahead of all the contracting countries.

 The Branch will need to inform the Committee about the extent of the implementation of the Integrated Fisheries Security Strategy and the binding 2009 FAO Agreement on Port State Measures.

AQUACULTURE

Africa’s aquaculture production has generally been dominated by Egypt and Nigeria. The two countries, combined, contributed 87 per cent percent of Africa’s production and this trend is likely to be maintained. In terms of top producers in Africa, South Africa slipped from being ranked number 6 in 2000 to number 10 in 2010. 25 Before 2010, South African freshwater aquaculture was handled by the former Department of Agriculture (DoA) while marine aquaculture was the responsibility of DEAT. This resulted in parallel and unbalanced developments. In 2006, the former DoA developed a Policy for the Development of a Sustainable Freshwater Aquaculture Sector, while DEAT published its Policy for the Development of a Sustainable Marine Aquaculture Sector in South Africa in 2007. Both these policies were aimed at promoting and accelerating the development of an economically sustainable and globally competitive aquaculture industry. Following the marine aquaculture policy development, DEAT concluded a Marine Aquaculture Policy Implementation Plan in 2009. After the transfer of the Fisheries functions to the Department, the Branch has developed the National Aquaculture Strategic Framework as a vehicle to promote investment in production and support infrastructure and the establishment of farmer support and management programmes. During 2012, the Department developed guidelines for Aquaculture Better Management Practices and guidelines in the Shellfish Monitoring and Control Programme.

 The Committee should be briefed on the progress made in establishing aquaculture zones, refurbishing State-owned hatcheries and pilot projects that are supported by the State.

25 FAO, (2012); FAO Fishstat Plus (2013).

Research Unit: Overview of the South African Fisheries 9 REFERENCES

Department of Agriculture Forestry & Fisheries. (2012a). Integrated Growth and Development Plan 2012, Pretoria, DAFF, 81 pp.

Department of Agriculture Forestry & Fisheries. (2012b) Policy for the Small-Scale Fisheries Sector in South Africa. Pretoria

Department of Agriculture, Forestry and Fisheries (2013). Committee briefing by the Department on Marine fisheries resources and vessel management. Presentation to the Portfolio Committee on Agriculture, Forestry and Fisheries on 11 June 2013. Parliament of RSA.

FAO. (2012) Voluntary Guidelines on the Responsible Governance of Tenure of Land, Fisheries and Forests in the Context of National Food Security, Rome, Food and Agriculture Organization of the United Nations, 40 pp.

FAO. (2014) The State of World Fisheries and Aquaculture, Food and Agriculture Organization of the United Nations, Rome, 223 pp.

FAO Fishstat Plus. (2013) Aquaculture Production: Quantities 1950-2011, Food and Agriculture Organization of the United Nations, Italy, Rome.

Leibold, M. & van Zyl, C.J. (2008). Report of project to scientifically determine the overall economic impact and strategic value of sport & recreational angling in the Republic of South Africa, Cape Town, South Africa, Development Strategies International Pty Ltd, 46 pp.

McCafferty, J.R., Ellender, B.R., Weyl, O.L.F. & Britz, P.J. (2012) The use of water resources for inland fisheries in South Africa. Water SA 38 (2), pp. 327-334.

National Planning Commission. (2012) National Development Plan 2030 - Our Future-make it work, Pretoria, 484 pp.

National Treasury. (2014) Estimates of National Expenditure 2014.

October, A. 2014. Perlemoenskok kom [Internet]. Die Burger. Available from < http://www.dieburger.com/nuus/2014-05-23-perlemoenskok-kom > [Accessed 29 May 2014].

United Nations. (2012) The future we want. In: United Nations Conference on Sustainable Development. Rio de Janeiro, Brazil, 20 to 22 June 2012.

Research Unit: Overview of the South African Fisheries 10