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Downloaded from the Training Author- Wood TH National Distribution 40 ISSN 1028-1215 Anniversary FOUNDED 1980 TO SUBSCRIBE TO CAPE BUSINESS NEWS SMS Subscribe to 31013 or e-mail [email protected] OCTOBER 2020 Better than men at Arctic drilling Lighting the way the wheel? backlash 159 years of safe Lady truckers unite! 7 Not in my backyard. 18 passage. 25 R2-million Fishing rights: lines are taut donated feeds problems with allocating rights to a large number of new entrants is that individual rights are very small. This means that new schoolchildren entrants are unlikely to secure the finance necessary to invest in a vessel, build facto- ries or participate in the fishery in a mean- ingful way.” “Instead, they rent their quo- tas to established companies, pushing up the cost of raw material and compromising the business models of the processing fac- tories.” Ratheb said the loss of quota by the established companies, who own the pro- cessing facilities, drove up costs, affected Fltr: Charles Grey of PSFA, accepts the the international competitiveness of the cheque handed to him by Fred Wille, a fishing industry and ultimately impacted director at Miltons Matsemela Inc. on the number and quality of jobs the sec- tor could support. HE main beneficiary of Mil- Ratheb explained that SADSTIA’s tons Matsemela Inc., commu- analysis suggested that if the DEFF had Tnity outreach programme has comprehensively evaluated government’s been the Peninsula School Feeding success in transforming the hake inshore Association (PSFA), and, as law firm trawl fishery – as well as properly assessed specializing in conveyancing, for ev- the investments and jobs supported by the ery property transfer instruction that HE delayed FRAP (Fishing Rights years to come.” established companies - it might have re- they receive as a result of an estate Allocation Process) appears to be The National Development Plan (NDP), evaluated its administrative decision to agent’s recommendation, they make Tincreasing anxiety levels in the local compiled over a period of two years by the fundamentally restructure the fishery. a donation to feed a child at school fishing sector – especially amongst the National Planning Commission, made two “This is why we are so supportive of the for six months. larger players, who have the most to lose. clear recommendations for the allocation DEFF’s announcement that it will under- In September Miltons reached the Last month the South African Deep-Sea of fishing rights to the industrial fisheries - take a detailed socio-economic impact milestone of R2 000 000 in donations Trawling Industry Association (SADSTIA) allocate economically viable fishing rights assessment study (SEIAS) of the hake since partnering with the PSFA. urged that government not repeat the costly and ensure that the allocation of rights deep-sea trawl fishery and 11 other fish- Fred Wille, one of the directors at mistakes made during the 2016 allocation maximises employment. eries to which rights will be allocated in Miltons says “The PSFA does excep- of rights to the hake inshore trawl fishery Ratheb argued that the allocation of 2021,” Ratheb said. tional work and we are very proud to when rights are allocated to 12 other rights to the hake inshore trawl fishery in Ratheb said SADSTIA was hopeful be associated with them. Miltons has commercial fisheries next year. 2016 did not follow the recommendations that the SEIAS would be conducted by offices throughout the city and by SADSTIA disclosed some frightening of the NDP. reputable economists and would accurately supporting the PSFA we are able to findings from an analysis of the allocation He said the Department of Environment, assess the state of transformation, and the support communities in all of these of rights to the hake inshore trawl fishery - Forestry & Fisheries (DEFF) dramatically depth of investment and job creation of areas. We could not have done this an industrial fishery that targets hake and increased the number of right holders in the individual fisheries - particularly the without the support of our estate Agulhas sole on the Cape south coast. the fishery – from 16 to 37 – and reduced hake deep-sea trawl fishery (which is by agent community. We value and ap- The organisation pointed out that since the share of the allowable catch allocated far South Africa’s most valuable fishery). preciate each and every one who has 2016, the allocation of rights to the hake to established companies by 30%. SADSTIA pointed out that an indepen- made this possible”. inshore trawl fishery has been reviewed by This, he said, resulted in large losses for dent economic study conducted in 2018 Charles Grey, fundraising manager the High Court no less than eight times. the companies with the investments and found that the fishery generates annual of the PSFA, thanked Miltons for What’s more, 30% of rights in the fishery experience to add value to the catch and sales of R4.5 billion and accounts for their continued support. The PSFA remain unallocated. maximise employment. Ratheb stressed approximately 45% of the value of the com- provides breakfast and lunch for ap- SADSTIA chairman (and Sea Harvest these companies were substantially trans- mercial fisheries. proximately 28 000 school children CEO) Felix Ratheb said the protracted formed in terms of black ownership – not- Around 70% of the fishery’s catch is from poor communities on a daily rights allocation process had introduced ing that in 2016 their average black own- exported, and the sector sustains 7 300 basis from school kitchens equipped considerable uncertainty into an already ership was estimated to be 82%. Black direct jobs and an estimated 29 200 indi- for this purpose. The scheme serves high-risk industry. ownership now sits at 85.6%. rect jobs. 170 schools. While these schools “The key finding of SADSTIA’s analysis SADSTIA’s analysis shows that the allo- Ratheb contended: “If the SEIAS is were closed during the COVID-19 is that the allocation of many rights of cation of rights to the hake inshore trawl well done and those who are responsible lockdown period, PSFA packed and small value to a large number of new fishery achieved an increase of 3.5% in the for rights allocation gain a fundamental distributed emergency food parcels entrant companies has compromised the black ownership of rights holders. But this understanding of the unique characteris- to families in need and provided nu- stability and competitiveness of the hake small gain was attained at considerable tritious ingredients to various com- inshore trawl fishery. The economic and economic cost. munity kitchens in the Western Cape. environmental impacts will be felt for Ratheb added: “One of the biggest Continued on P2 2 CBN October 2020 IN THIS ISSUE Green Cross still pinching AVI CONSUMER brands indicated that trading R32 million for the giant AVI is desper- post re-opening was year. 10 PPE ately hoping healthy subdued due to weak AVI will now be footwear company economic conditions looking to kick up Green Cross can pull and poor shopper foot- profits with increased 11 Materials Handling & itself up by its sandal fall at many shopping promotional activ- straps. malls. ity to manage the Equipment AVI paid over If there was a bright stock build-up and by R380m to acquire spot then it was that right-sizing store foot- 14 Packaging Industry Cape Town-based Green Cross managed prints to match smaller Green Cross in 2012. to push the gross profit brand opportunity. The acquisition has margin higher after AVI’s investment 16 Electrical Industry not hit the profit converting to a full presentation showed strides expected, and import model. that trading den- 18 Offshore Mining & has proved a drag on Fixed costs also have sity for Green Cross AVI’s footwear divi- AVI said sales volumes significant loss of rev- decreased with busi- had dropped below Drilling sion - which includes were impacted by soft enue during the lock- ness being integrated 30 000m2 compared the strong performing demand and wide- down with all the retail into the Spitz manage- with over 42 000m2 the Spitz high fashion foot- spread discounting in stores closed during ment structure. previous year. 19 Maritime & Ship wear business. the mid-price comfort the level five lockdown However, these AVI said it also In the year to end footwear segment in from 27 March to 30 improvements were not intended leveraging Repair June Green Cross the period prior to April. enough to offset the further synergies from reported revenue drop- lockdown. AVI said stores only impact of lower sales Green Cross’ integra- 20 Pumps & Valves ping 36.5% largely due The group said opened on a phased volumes, resulting in tion into the Spitz busi- to lower sales volumes. Green Cross also saw a basis during May, and an operating loss of ness structures. 21 Occupational Health & Safety Offices to industrial site: caters for smaller operators 22 Industrial ONLINE shop- industrial-based parks park servicing 35 ten- ping was just gaining targeting urban neigh- ants, ranging from food Maintenance & momentum in South bourhoods where large production to online Africa when the global stores would not be retail. The 7 500 m² Refurbishment pandemic hit, disrupt- viable. “With their rel- site in Mercury Cres- ing value chains and atively low-cost struc- cent, which was van- logistics around the ture, these business dalised while standing 23 Warehousing world. As a result, parks provide an ave- vacant and which has there has been a mas- nue to introduce new been extensively refur- & Storage sive acceleration of products and brands bished, is one of three e-commerce, which has with relatively low new acquisitions by Management in turn created a need investment,” Rael Lev- the company in Cape for smaller distribution itt, Inospace founder Town.
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