The allocation of rights and quantum in the Squid Fishery and general reasons for those decisions (2002)

  1. Introduction
    • This fishery is regulated by effort constituted in terms of a maximum number of persons on board vessels for which permits are issued. Each right holder is allocated a fixed number of persons per vessel per year to harvest the resource.
    • The Total Allowable Effort for the fishery is a maximum of two thousand three hundred and eighty six (2386) persons on board the fishing vessels for which permits are issued to fish squid in the year 2002. This TAE is made up of the 2001 TAE of two thousand three hundred and twenty four (2324) persons plus the previously restricted TAE for the former Transkei and Ciskei waters of sixty two (62) persons.
    • A total of 161 applications were received for squid fishing rights. One hundred and thirty (130) were 2001 right-holders and thirty-four (34) were new or other entrants.
    • There is overcapacity in this fishery - too many fishers, too many vessels and too many right holders for the exploitation of a limited resource. This overcapacity means that the smaller right holders struggle to establish economically viable businesses and that it is difficult for the Department to properly monitor and control the fishery.
    • Allocations over the last few years have not had the desired effect of promoting both a commitment to the industry and transformation. A high degree of paper quota right-holders and a lack of transformation on the part of the established right-holders characterize the fishery. This is, amongst other factors, due to:
      • a reluctance on the part of historically disadvantaged right-holders to invest in vessels;
      • a reluctance on the part of established right-holders to transform;
      • the fluctuating nature of the resource; and
      • the prevalence of non-transformed SMME's in the sector.
  2. Policy
    • The complex task of monitoring and controlling the squid fishery through effort limitation has necessitated a change of management approach. Following extensive consultations with right-holders in the fishery, it was decided that the number of persons on board a fishing vessel will be restricted to the maximums allocated per vessel category. The Department's policy in respect of this sector may, accordingly, be summarized as follows:
      • the number of vessels engaged in the industry should be limited;
      • the vessels nominated by an applicant are consigned to a length
      • category which determines the maximum number of persons per vessel.
        The categories and the maximums are set out in the table below:

        Category of vessel Maximum persons per vessel
        Ski boat or non freezer vessel
        7 persons
        Vessels up to 13 metres
        12 persons
        Vessels from 13 to 15 metres
        16 persons
        Vessels from 15 to 17 metres
        20 persons
        Vessels from 17 to 19 metres
        22 persons
        Vessels over 19 metres
        26 persons
      • if a right-holder is allocated a number of persons that is different from the number of persons permitted in respect of the nominated vessel's SAMSA certificate, the right-holder will be given three months from the date of the issue of the permit to have the safety certificate for the vessel altered to ensure that the maximum number of persons permitted on the vessel is equal to the number of persons allocated to it;
      • if two or more right-holders are allocated rights in respect of the same vessel, the number of persons per right holder will be calculated in proportion to their respective scores in the comparative balancing of applicants.
    • In order not to disrupt the industry, the Deputy Director General decided to grant rights to applicants with low scores for the reasons set out in paragraph 1 (4) and (5). The successful right holders under this year's allocation have four years within which to address the shortcomings referred to in that paragraph, failing which their future allocations may be placed in jeopardy.
  3. Exclusions
    • All the applications were initially scrutinised to determine whether they were properly lodged, whether they were materially defective and whether they fulfilled the essential requirements of the sector.
    • An application was not properly lodged if:
      • it was received late;
      • the application fee was not paid in full;
      • the applicant applied for more than one sector using the same application form;
      • the application was not received on the correct application form; or
      • there was no authentic number on the application form.
    • An application was materially defective if :
      • the application form was not signed properly;
      • more than one application was submitted for the sector;
      • the applicant did not provide sufficient information for purposes of evaluating the application; or
      • the applicant did not adequately demonstrate that he or she was a South African citizen.
    • The essential requirements for the fishing of squid are:
      • ownership of or access to an appropriate vessel;
      • the use of hand jigging or hand-line as the fishing method.
    • Applications that were not properly lodged, that were materially defective or that did not fulfil the essential requirements, were rejected.
  4. Comparative balancing of applicants
    • The balance of the applications were divided into two streams: 2001 right-holders and new and other entrants.
    • The applicants within each stream were comparatively balanced against one another in terms of the criteria described below.
    • 2001 right-holder applications were comparatively balanced against one another in accordance with assessment criteria based on:
      • the degree of transformation;
      • the degree of involvement and investment in the industry, including business plan or operational and investment strategy;
      • past performance;
      • legislative compliance; and
      • the degree of paper quota risk.
    • The Deputy Director General granted rights to one hundred and seven (107) 2001 right-holder applicants.
    • The potential new entrants were comparatively balanced against one another in accordance with assessment criteria based on :
      • transformation or the degree to which the applicant was constituted by persons from a historically disadvantaged community;
      • knowledge, involvement and commitment to invest in the industry, including business plan, fishing plan or operational and investment strategy;
      • business acumen, financial capacity and capacity to catch, process and market the resource;
      • if applicable, legislative compliance; and
      • degree of paper quota risk.
    • The Deputy Director General granted rights to thirteen (13) new or other applicants.
    • A full list of the one hundred and twenty (120) successful applicants is attached marked as Annexure "A".
  5. The distribution of TAE amongst successful applicants
    • The effort set aside for appeals is 120 persons. This leaves a TAE of 2266 persons for allocation to successful right holders at this stage.
    • The TAE is allocated to the right holders on the following basis:
      • Each right holder is granted the effort (number of persons) applied for, subject to the maximum number of persons permitted in respect of the vessel categories referred to above, or the maximum number in the SAMSA certificate, whichever is the lower.
      • If the two right holders are allocated rights in respect of the same vessel, the number of persons per right holder is calculated in proportion to their respective scores.
    • The Deputy Director General reserves his decision on the allocation of any effort residue remaining after appeals on a basis to be decided by him.
  6. Right of appeal
    • Every applicant will be informed, in writing, of the outcome of their application and, if their application was rejected, with the reasons for the rejection. Those reasons must be read in context of the general reasons. The Department will further permit applicants access to the Record, including the Summary of the process and the decisions taken in respect of their and other applications as well as the Advisory Committee's assessments of the applications. These documents will be available at the 4th Floor, Foretrust Building, Martin Hammerschlag Way, Foreshore, Cape Town, 8001 (Ms Shamera Adams). The Summary of the process will also be sent to inspectorate offices and it will be available for inspection at these offices as soon as it is logistically possible.
    • An applicant may appeal against the rejection of an application or the determination of the quantum allocated to an applicant. The appeal must be made 30 days after the applicant received the notification letter from the Department.