Presentation to the Portfolio Committee on Environmental Affairs by

1. Black Traditional Fishers and Black Economic Empowerment ‘Swem die Net mis – Falling through the Net’ Presentation to the Portfolio Committee on Environmental Affairs by Masifundise and Coastal Links May 8th 2007

2. 1. Introduction to Masifundise and Coastal Links Masifundise - an independent Trust, in existence for 26 years Coastal Links - Network of fisher and coastal community based organisations. Both organisations work on the West and South Coasts and Masifundise has conducted fieldwork in the Eastern Cape and established links with fisher organisations in Kwa-Zulu Natal Our position on BEE and the Fishing Industry The BEE Act 53 of 2003 is a powerful and critical legal mechanism for the transformation of economic inequities in South Africa. The current Fishing Policies do not provide the means whereby the BEE Act can articulate with the fishing policies and bring about economic empowerment for the most marginalised black, traditional fishers

3. 2. Background: The apartheid legacy and the need for transformation and BEE in the fishing industry 1.1 The fishing industry has historically been a white dominated, highly capital intensive industry 1.2 The poor, black, traditional sector dependent on marine resources for their livelihoods ranges from subsistence to small scale commercial fishers 1.3 The policy process in Marine and Coastal Management over the last 10 years has focused on promoting black empowerment in the formal, industrialized fishing sector and maintaining international competitiveness at the neglect of the traditional small scale sector 1.4 The Marine Living Resources Act (1998) excluded artisanal fishers 1.5 The Subsistence Fisheries Task Group, which was convened after the MLRA was introduced, identified the need to accommodate these fishers.

4. 1.5 The Subsistence Fisheries Task Group, which was convened after the MLRA was introduced, identified the need to accommodate these fishers. 1.6 Subsistence Fisheries Task Group (SFTG) found that there were 147 fishing communities country wide comprising 29 200 individual fishers living in 28 300 households of which 53% were food insecure. A considerable number were considered ‘ultra-poor’

5. 3. Black, traditional fishers’ exclusion from transformation in the Fishing Industry 3.1 There is no Charter for the Fishing Industry identifying the transformation intentions of the Industry and locating traditional fishers as a key target group 3.2 South Africa has chosen a ‘one size fits all’ approach to fishing policy that has favoured the commercial fishery. Small scale traditional fishers have had to compete with the large commercial interests in both the Medium and Long Term Allocations without any support and inputs in terms of capacity building, training in marketing etc and even where they did get rights, they are totally dependent on the larger companies for processing and marketing their produce. Much of the value gets added at this stage and hence this value is lost to traditional fishers

6. The use of the individual quota system also runs contrary to the BEE Act which aims to facilitate “the extent to which communities, worker cooperatives and other collective enterprises own and manage existing and new enterprises”

7. 3.3 The General Fishing Rights Allocation Policy uses an inappropriate policy mechanism that does not facilitate redistribution. As with the Medium Term Rights Allocation process, the Dept. has used the quota system as the policy mechanism for allocating rights. The Individual Quota system is not appropriate for the near shore, small scale sector as it is contrary to traditional, collective ways of fishing and precludes allocation to legal entities such as co-operatives etc. In addition, it does not support the multi-species livelihood approach and it has proved socially divisive, pitting one fisher against another and households against each other. It is internationally recognized that there are more appropriate and equitable ways of enabling access to the Total Allowable Catch, such as using effort controls. These have been shown to be more economically, socially and environmentally sustainable for the near shore, small scale sector. 3.4 The use of the individual quota system also runs contrary to the BEE Act which aims to facilitate “the extent to which communities, worker cooperatives and other collective enterprises own and manage existing and new enterprises

8. 3.5 The BBBEE Act 53 of 2003 aims to increase the number of black people that “manage, own and control enterprises and productive assets”. The fishing policies of the past 9 years have systematically eroded traditional fishers access to marine resources. For example, in the Western Cape, in 2000 the Department allocated 1652 crayfish subsistence permits. These fishers were personally verified by an official from the Dept in door to door interviews. In the medium term 511 crayfish rights were allocated, but many of these individuals shared their rights with up to five fishers. In 2006 the Minister allocated only 813 crayfish rights. Not only the quantity but also the quality of the rights has impacted on traditional fishers – Fishers are now limited in most instances to one species whereas previously harvested a basket of species, what traditional fishers call ‘mandjie regte’.

9. 3.6 The limitation on access rights for bone fide, traditional fishers runs contrary to the BEE Act which aims to empower “rural and local communities by enabling access to economic activities, land, infrastructure, ownership and skills” (BEE ACT 53 of 2003). Some communities have experienced considerable obstacles in trying to get support for community driven initiatives e.g Doringbaai. In this town the fishing company Oceana has closed operations in order to move southwards and local traditional fishers have developed a sound proposal to take over the factory but without success 3.7 Traditional fishers are vulnerable to fraud and corruption through ‘black empowerment fronts’. Masifundise has been asked to investigate a number of companies in Elandsbaai, Ebenhaeser and Khayalitsha where workers are so called ‘shareholders’ but know nothing about the companies or Trusts in which they have shares. This now precludes them from benefiting from measures such as the Interim Relief recently announced by the Minister and also stopped them from being able to apply for long term rights in Cluster C.

10. 4. Impact of the exclusion of traditional fishers 4.1 Traditional fishing communities are facing high levels of poverty and unemployment. Whilst precise figures are difficult to obtain, a study conducted in 2005 by the University of Cape Town, drawing on existing data indicated that 15% and 11% of household members on the BCLME west and south coasts (respectively) had regular employment and 16% and 23% (respectively) were unemployed. This research suggested that employment figures amongst fisher households are on the lower spectrum and unemployment is on the higher spectrum of the overall ranges found in these coastal settlements (Sowman et al, 2005). As noted earlier, in the SFTG study a significant number of the fishers were considered ‘ultra-poor’. 4.2 Many fishers had to borrow funds to cover their long term applications and, because they were unsuccessful, have as a result gone into debt to unscrupulous marketers and local companies.

11. 5. Recommendations 5.1 Review the current policy Government should conduct an urgent review of the MLRA and the Long Term General Policy to ensure that its implementation is compliant with BBEE requirements with the particular intention to promote and protect the needs of the small scale traditional fishing sector. 5.2 Exclusive Fishing Turf Government consider taking measures to allocate the near shore fishing zone (of between five to ten nautical sea mile) as an exclusive fishing turf for the traditional and small scale fishing sector so that their economic viability is secured. Importantly do not allow full commercial or industrial fishing activity in this zone.

12. 5.3 Basket Rights Allow traditional fishers to conduct their fishing activity in such a manner so that they can harvest a variety of different marine specie (basket rights) in stead of being limited to individual specie so that they can ply their trade in a sustainable manner through out the year. Put in place control mechanisms to ensure that stock is not over exploited. 5.4 Co-Management Develop explicit and participatory co-management procedures and mechanisms to ensure that the socio economic rights of the traditional sector is protected and further developed. 5.5 New working style and ethic Review and revised the internal structures and working style of MCM so that it becomes an organisation that is more suited to address, administer and facilitate BBEE in the fishing sector efficiently and form a socio-economic and humanitarian perspective. In particular restructure the relationship with MCM and DTI so that unscrupulous practices can be avoided.