Introduction

1. PUBLIC HEARINGS BEFORE THE PORTFOLIO COMMITTEE ON THE MARINE LIVING RESOURCES AMENDMENT BILL 30B OF 2013 DAFF RESPONSES 16 OCTOBER 2013

2. Introduction Whilst we celebrate World Food Day with 150 countries today we are reminded of the wise words of the Father of our Democratic Nation, former Pres. Mandela “ Overcoming hunger is not a task of charity; it’s an act of justice. Like slavery and Apartheid, hunger is not natural. It is man-made and it can be overcome and eradicated by the actions of human beings. Sometimes it falls on a generation to be great. You/We can be that great generation.” The department wants to extend a humble word of appreciation for the valuable input of all which represents the diversity of people and the fishing industry we serve. We might not be able to answer each and every person directly but we will attempt to respond to all issues raised.

3. Responses “Truth only reveals itself when one gives up all preconcieved ideas”. ( Shoseki) Comprehensive Bill vs “Piece meal”: LRC reference to when started April 2013. Substantial dialogue took place. Dept’s urgency is misrepresented. The making of small scale fishing policy started in PE in 2007. Democratic elected NTT. In 2007, the National Summit on Small-scale Fisheries presided over by the former Minister Marthinus van Schalkwyk who elected and mandated a National Task Team (the NTT) with representatives from fishing communities in all four coastal provinces to oversee the process of developing policy to address the inequalities in the current dispensation with regard to the small-scale fisheries sector.

4. Responses continue SAUFF: The drafting of the SSFP was not inclusive and Mr Garcia was thrown out of a meeting of the NTT. FACT: SAUFF, which Mr Garcia represents, did not exist when the NTT was democratically elected in 2007. Only elected members were allowed to attend meetings of the NTT. NEDLAC and Cabinet approved.

5. Responses continue Misrepresentation of facts Perspective is important: representivity. ( 1 member organisationvs 4000 member organisation) Fundamental principle of Law…is that policies are not legislation. No legal existence of small scale fishers with rights as defined by approved policy. It is not factual. The figures presented by the “independent consultant” are incorrect. Exemption Holders of different species is as follows: KZN- 19 Comm 1637 exemption holders (mussels/oysters); EC- 82 Comm 4474 exemption holders (ECRL/Linefish); WC 36 Comm 1574 exemption holders (wcrl/linefish/white mussels/red bait); NC 2 Comm89 exemption holders (wcrl/linefish/white mussels/red bait): Total 7774 exemption holders

6. Responses continue The suggestion to keep a category of “subsistence” would keep people in bondage. The definition of small scale fishers : “ means persons that fish to meet food and basic livelihood needs, or are directly involved in harvesting/processing or marketing of fish, traditionally operate on or near shore fishing grounds. Predominantly employ traditional low technology or passive fishing gear….usually undertake single day fishing trips and are engaged in the sale or barter or are involved commercial activity”

7. Responses continue Feike: The MLRA (and by implication, SA fisheries policy and law) recognisesmall-scale fishers Fact: The current framework for the allocation of fishing rights is set out in the current sections 1, 14(2), 18(1) and 19 of the MLRA. The SSF Policy is therefore not connected to the MLRA's provisions and mechanisms regarding the granting of rights and the annual allocation of fish. The implementation of any policy that contradicts the terms, definitions and structure of the MLRA will fail the test of legality. Feike: Post 2005, of the 3019 quotas allocated, 2200 were allocated to small-scale fishers (Clusters C and D & Linefish) = 73% Fact: A total of 1614 Limited commercial allocated in 2005/2006. Hake handline – 95; Netfish– 103; Traditional Linefish – 455; West coast rock lobster (Nearshore) – 825; Oysters – 105; White Mussels – 7; KZN Beach Seine – 24 Abalone not allocated in 2005/6 but in 2003 (303 RHs).

8. Responses continue Feike: It is of grave concern that small-scale / artisanal right holders are being coerced and forced into co-operatives. Fact: They were allocated rights as limited commercial right holders, not small-scale fishers. Two roads approach – competitive and non-competitive. Two allocation processes will apply when the Bill is passed. In terms of the current allocation process for local commercial fishing rights, applications will be ranked according to a set of objective criteria in order to identify the best applicants. The process is competitive and comparative because the aim is to identify the successful applicants. The allocation process for small-scale fishing rights in terms of the proposed section 19 will require the identification, verification and registration of fishers and communities. Once the registration process has been concluded and the fishing zones determined, allocations will be made to the fishing co-operatives. This will be a non-competitive and non-comparative allocation process.

9. Responses continue There are two processes in terms of which rights may be allocated. The first option for fishers is that they may apply for rights as individuals, which will entail being part of a competitive and comparative process to receive an allocation. The second option is that small-scale fishers may apply for rights as part of fishing co operatives which will entail being part of a non-competitive process, whereby rights will be allocated to the co operative when allocations are made. There will be no competition between fishing co-operatives. Feike: The category of small-scale fishing must be adequately defined which is not the case at present. Fact: The Bill defines small-scale fishers and community. The Bill is not a find and replace exercise. It is legally correct and has been certified by the State Law Adviser as such. Feike: Propose to maintain the “subsistence fishing” category and add a new category “small-scale fishing” and make provision under a new Section 21 A (it then follows “commercial fishing” in section 21). Fact: Part 2 Local Fishing deals with granting of rights whereas section 21 deals with transfer of fishing rights. Section 19 is correctly placed under Part 2.

10. Responses continue Feike: The PC has already determined that co-operatives in SA have been a proven failure (May 2012). Fact: Government has encouraged the re-emergence of co-operatives as a tool for economic development and poverty eradication. Feike: How will co-operatives work in practice given that all near-shore stocks are result in poverty alleviation. If all fish are already allocated how will you share the current TAC amongst 1000’s more? Fact: The WCRL TAC and the TAEs for linefish and white mussels, already make provision for interim relief. Single species allocation will be replaced by a basket of species to improve economic viability. Alternative livelihood projects including aquaculture will be introduced to assist small-scale fishing communities. All our resources are managed on an ecologically sustainable basis. Adoption of the Bill is required to revisit the sharing of the cake. The Small-scale fishing policy and the Bill is not in conflict with the NDP but in fact is giving effect to its objectives.

11. Responses continue Feike: The proposed deletion of “subsistence fishing” will directly impact on the rights and obligations of 7000 (±35000 dependents) in rural EC and KZN fishers. These people need to be directly consulted with on the proposed MLRA Amendments. Fact: The small-scale fishing communities in EC, KZN, NC and WC were consulted and the overwhelming majority of them supported the SSFP and the Bill. Feike: Do we really understand the practical, social, economic and biological consequences of introducing co-operatives into the fishing industry? Does history teach us nothing? Have we understood why poverty levels and overfishing have not improved in Doringbaai for example. Fact: The fishing community of Doringbaai provided clear information to the PC that co-ops have changed their lives for the better. We have learned from the 2005 allocations and have a good understanding of the abject poverty levels and poaching in fishing communities.

12. Responses continue Feike: The proposed MLRA Amendment Bill proposes amendments (co-operatives & deletion of subsistence) that will have profound social, economic and ecological impacts YET The draft bill has been introduced into Parliament without any socio-economic and ecological research or analyses of these impacts. Fact: The implementation of the SSFP will have profound social and economic benefits for small-scale fishing communities. Ecological impacts if any will be managed by the Department as it will continue to manage our fish resources in sustainable manner. This is however dependent on the adoption of the Bill. In our view there is no conflict with Chapter 6 of the NDP. FishSa: Whether incorporating subsistence under small scale sector will disadvantage this grouping. Fact: As confirmed by the various communities there will be no disadvantages but rather more advantages.

13. Responses continue FishSa: The impact of the implementation cost on the rest of the fishing industry should be considered. If part of cost recovery model!! Fact: The Department has engaged the DTI and other government agencies (SIP 11 and APAP) to secure the required funds. We have approached Treasury for funding. The funding includes funding for infrastructure development as well. The cost of implementing the small-scale fisheries policy will not be recouped from the rest of the industry. FishSa: Small-scale fishing zones –impact on squid catch area-more detailed around this. Fact: The fishing zones have not yet been determined, it is therefore premature to come to conclusions. LRC: Possibility that failing legal action to ensure that the MLRA is amended to recognise pre-existing customary rights to access marine resources, there may be an application to have the MLRA declared unconstitutional, including the provisions relating to MPAs and no take zones where community rights are affected.

14. Responses continue Fact: The SSFP deals with similar claims of traditional and artisanal fishers. The SSFP proposes how these claims should be addressed. The implementation of the SSFP will give effect to these claims. The Bill will enable the Department to do so. LRC: We recommended strongly that the implementation of the SSF policy must be preceded by (i) a coherent and overarching policy for the transformation of the entire fisheries sector to properly recognise small scale fishers; (ii) sufficient time to properly identify and recognise small fishing communities, in particular those with customary rights that require protection and promotion in terms of the Constitution; and (iii) provide sufficient time, resources and facilitation to enable communities to organise themselves into rights holding entities able to govern the community rights properly. Fact: The Department will implement the SSFP and in so doing, will ensure that all fishing communities will be assisted.

15. Responses continue LRC: The Department is proposing that communities be identified and verified within the next couple of months, presumably based on the information of existing small scale fishing communities they have available. The problem of this approach is that it makes no provision for the recognition of communities with pre-existing customary rights to the resource. Fact: The Department will implement the SSFP and allocate fishing rights to the small-scale fishing communities in a manner which is not in conflict with the position of the LRC. LRC: Despite the carefully negotiated contents of the SSF policy that specifies that communities will decide, through a consultative process, which rights-holding legal entity they wish to form, the Department has now decided, under the influence of the Department of Trade and Industry, that all small-scale communities must now form co-operatives to hold, manage and market thecommunity right.

16. Responses continue Fact: The reasons why a co-operative is the preferred form will be explained in due course, but it should be noted that all other forms suggested, including communal property associationsalso have challenges. Doug: The problem with the specific wording here is that leads to contradictions, because it necessarily implies open access, which is contrary to other provisions in the Act. Fact: The proposed objective and principle is required to promote the position of women and youth in the fishing industry. This is to bolster section 2(j) of the MLRA, namely, the need to restructure the fishing industry to address historical imbalances and to achieve equity within all branches of the fishing industry. This in no way deals with access to fish stocks. Access to fishing is dealt with in sections 18 (local commercial), 19 (small-scale) and 20 (recreational) of the MLRA.

17. Responses continue Doug: "the need to recognise approaches to fisheries management which contribute to food security, socio-economic development and the alleviation of poverty; and“ The difficulty here is that these are already well-known as objectives for fisheries, so "recognising“ them scarcely effects any change. Would not wording along the lines below convey better what seems to be the intent:"the need to give due weight in fisheries management to the objectives of contributing to food security, socio-economic development and the alleviation of poverty; " . Fact: These are not well-known as objectives for fisheries in SA as it is not encapsulated in the MLRA. There is very clear direction from Government that all state departments must deal effectively with the plight of the poor, food security, socio-economic development and the alleviation of poverty.

18. Responses continue Doug: The problem that arises here is that "multi-species" is a term generally used with a very specific meaning in fisheries internationally. lt refers to taking technological (gear effects) and/or biological (predator-prey) interactions into account in setting management measures across a range of species. Thus these words would most likely be read as a promoting an ecosystem approach to fishing through taking such factors into account in scientific analyses concerning sustainable catch calculations and the allocation of such catches amongst species. Fact: The term is used specifically in the MLRA to ensure that small-scale fishers will have access to a basket of species. The term “multi-species” does not appear in the MLRA and the use thereof in the context of small-scale fisheries will not lead to confusion in South Africa. In any event, the term will be defined in the proposed regulations for the implementation of the SSFP.

19. GOVERNMENT SUPPORT FOR CO-OPERATIVES The government has created a conducive environment for co-operative development through the: Co-operative Development Policy for South Africa Co-operative Act 14 of 2005 Integrated Strategy on the Development and Promotion of Co-operatives Co-operatives Management Act 6 of 2013 The Co-operatives Act and Policy clearly outlines the role of other government departments to support co-operative development. Provincial governments have been encouraged to develop their own co-operative strategies that will guide the promotion and development of co-operatives.

20. WHY CO-OPERATIVES Cooperatives in the small-scale fisheries sector are a way of maximizing long-term community benefits to deal with the threats of fisheries mismanagement, livelihood insecurity and poverty- harsh realities for many small-scale fishers. Misleading information about Vietnam was presented here yesterday…simple google search will see it the Director General of Co-operatives was quoted out of context. The Co-operatives Amendment Bill was passed into law known as Co-operatives Management Act 6 of 2013 was signed by the President on 5th August 2013. The fact that this amendment was passed and signed into law dispels the screaming headlines of media today that co-operatives are unconstitional. Furthermore the Portfolio Committee on Trade and Industry issued a statement on the passing of the Bill confirming its support for the amendments and that co operatives will serve as a tool for the eradication of poverty and economic development. In a presentation by the DTI on the status of Co-operative Support and Development in South Africa, on 21 February 2012, to the Portfolio Committee on Economic Development in Cape Town, the following were stated: The development of co-operatives has been identified by the government as one of the critical and viable means to create employment and alleviate poverty.

21. Government structures to support co-operatives The DTI, as the custodian of the national co-operatives programme, established the National Interdepartmental and Provincial Co-ordination Committees to co-ordinate co-operative development activities and programmes with key national and provincial departments. The Inter-provincial Co-ordination Committee consists of all 9 provincial departments of Economic Development, whose tasks are to promote and report on co-operative development in their respective provinces. The Inter-departmental Committee is attended by 12 national line departments (DOL, DPW, DSD, DAC, SARS, NT, DHED, COGTA, DAFF, DST, NYDA, DOH) and promotes the development of co-operatives and reports on the progress of activities and programmesaccordingly.

22. Government structures to support co-operatives (continue …) In 2004 the National Co-operatives Development Policy was developed and adopted by the Minister of Trade and Industry, which laid the basis for the development of the co-operative legislation, strategy and other support interventions. Other departments and agencies who also provide co-operative support. The DTI: Co-operative Unit Small Enterprise Development Agency (SEDA) Co-operative Incentive Scheme – The Enterprise Organization (CIS) Provincial departments: Eastern Cape, Free State; Gauteng, Limpopo; North West, Western Cape, Mpumalanga National departments: Department of Labour, Department of Public Works, Department of Co-operative Governance and Traditional Affairs Co-operatives Bank Development Agency Ithala Development Finance Corporation (Ithala) Eastern Cape Development Corporation (ECDC)

23. Focused Government support for co-operatives The DTI Co-operative Incentive Scheme (CIS) is a 90:10 cost-sharing grant for registered primary co-operatives to improve the viability and competitiveness of co-operative enterprises by lowering their cost of doing business through incentives that supports Broad-Based Black Economic Empowerment. Objectives of the CIS Promote co-operatives through the provision of a matching grant. Improve the viability and competitiveness of co-operative enterprises by lowering the cost of doing business. Assist co-operatives to acquire their start up requirements. Build an initial asset base for emerging co-operatives to enable them to leverage other support. Provide an incentive that supports broad-based black economic empowerment.

24. Focused Government support for co-operatives Eligible activities Business development services (e.g. feasibility studies; business, manufacturing and production systems; and production efficiency and improvement, etc). Technological improvements. Machinery, equipment and tools. Commercial vehicles. Infrastructure linked to the project (e.g. 3-phase electricity; boreholes, etc.). Working capital. .

25. Successful co-operatives The different types of co-operatives in South Africa Agricultural, consumer, marketing and supply, housing, financial services and social co-operatives such as co-operative burial societies; service co-operatives and worker co-operatives. Examples of successful co-operatives in South Africa The Heiveld Co-operative in Nieuwoudtville started in 2001 with 14 members. The co-operative has now grown to 65 members and exports high quality organic rooibos tea to nice fair trade and organic markets in the northern hemisphere. Comparative studies of Co-operatives of small scale fishers in Mexico and Brazil can be provided on request. (attached)

26. CONCLUSION We are impressed by the level of overwhelming support for the Bill. The fact is that it is clear that the majority of the participants at this hearing support the amendments as they are. There are no substantive proposals for amendments. The appeal to the committee which comes from the cries of the communities nationwide is to approve the bill as it is in is current form. THANK YOU