1. Marine Living Resources Fund 2015 – 2016 Presentation to Porfolio Committee October 2016

2. Presentation Outline List of Acronyms Introduction & Background
Administration of the MLRF
DAFF Strategic Goals and Objectives
Summary of Achievements of the MLRF per Chief Directorate
Performance Against Targets
Financial Achievements (Statements)
Statement of Financial Position
Statement of Financial Performance
Statement of Changes in Net Assets
Cash Flow Statement
Statement of Comparison of Budget and Actual Information
7. Recommendation
Photographs: Rob Tarr

3. List of Acronyms
AED = Aquaculture and Economic Development AGSA = Auditor-General of South Africa CD = Chief Director DAFF = Department of Agriculture, Forestry and Fisheries DDG = Deputy Director-General DG = Director-General ECRL = East Coast Rock Lobster EXCO = Executive Committee FAO = Food and Agricultural Organisation FOS = Fisheries Operations Support FPE = Fish Processing Establishment FPV = Fisheries Protection Vessel EPWP – Extended Public Works Programme FRAP = Fishing Rights Allocation Process FRD = Fisheries Research and Development G&S = Goods and Services

4. List of Acronyms (cont…)
MCS = Monitoring, Control and Surveillance M&E = Monitoring and Evaluation MLRA = Marine Living Resources Act MLRF = Marine Living Resources Fund MRM = Marine Resources Management MTEF = Medium Term Expenditure Framework MTSF = Medium Term Strategic Framework PFMA = Public Finance Management Act RFMO = Regional Fisheries Management Organisation SAMSA = South African Maritime Safety Association SG = Strategic Goal SO = Strategic Objectives TAC = Total Allowable Catch TAE = Total Allowable Effort WFFP = Working for Fisheries Programme

5. Introduction and Background

6. Introduction and Background
Marine Living Resources Fund (MLRF)
A Schedule 3 A Public Entity of the Department of Agriculture, Forestry and Fisheries.
Defined as per the Public Finance Management Act, No. 1 of 1999
“A board, commission, company, corporation, fund or other entity (other than a national business enterprise) which is-
(i) established in terms of national legislation;
(ii) fully or substantially funded from either the National Revenue Fund or by way of tax, levy or
other money imposed in terms of national legislation; and
(iii) accountable to Parliament.”
Finances the operations of the Fisheries Branch (Section 11 of the MRLA: MLRF provides for administration of the provisions of the MLRA)
It used to be the Sea Fishery Fund - Section 27 of the Sea Fisheries Act, 1988 (Act No. 12 of 1988), then Marine Living Resource Fund - Section 10 and 11 of the Marine Living Resources Act, 1998 (Act No. 18 of 1998) published on 27 May 1998.
Schedule 3 A public entity as classified by the National Treasury since 2001.

7. Administration: MLRF Section 10 of the MLRA
Director-General is the accounting officer of the MLRF
Minister approves revenue and expenditure budget
Financial year ends 31 March
Auditors: Auditor-General of South Africa
Any unexpended cash balances at the end of the financial year are carried forward to next year

8. Administration: Revenue of MLRF
Section 10 of the MLRA:
Monies to be paid into the MLRF:
Fines, penalties, interest for any contraventions in relation to the Act
Proceeds from sale of seized/forfeited vessels, vehicles, aircraft, gear or fish
Interest and Fees collected
Interest on cash investments
Donations received
Levies on fish, fish products, aquatic plants or other marine resources ito this Act or any other law

9. DAFF Strategic Goals and Objectives

10. DAFF Strategic Goals and Objectives
The Fisheries Branch is responsible for managing the development, management,
monitoring and sustainable uses of marine living resources, to protect the integrity and
quality of the marine ecosystems, and to ensure the growth of the aquaculture sector.
The MLRF covers the operational costs of four Chief Directorates, as well as the
operational and administrative costs of a number of support components as follows:
Aquaculture and Economic Development which promotes the growth of the aquaculture sector by providing public support and an integrated platform for the management of aquaculture. The Chief Directorate also facilitates the development of alternative livelihoods for coastal communities and the management of the 12 proclaimed fishing harbours.

11. DAFF Strategic Goals and Objectives (cont…)
Fisheries Research and Development which promotes the sustainable development of fisheries resources and ecosystems by conducting and supporting appropriate research.
Marine Resource Management which fosters the sustainable use and the equitable and orderly access to marine living resources through improved management and regulation.
Monitoring, Control and Surveillance which ensures the protection and promotion of sustainable use of marine living resources by intensifying enforcement and compliance efforts.
Fisheries Operations Support provides support services to the Fisheries Branch and the Marine Living Resources Fund. Under the Working for Fisheries Programme, the Department created 658 Full-time Equivalents, with 58.6% being youth, 55% women and 2% disabled.
Chief Financial Officer is responsible for the financial management of the MLRF. Although the budget constraints of the Fund are impacting on operations, the Fund remains solvent and well managed.

12. DAFF Strategic Goals and Objectives (cont…) STRATEGIC GOALS  
STRATEGIC GOALS
STRATEGIC OBJECTIVES
Strategic Goal 1:
Effective and efficient strategic leadership, governance and administration
Strategic Objective 1.1:
Ensure compliance with statutory requirements and good governance practices
Strategic Objective 1.2:
Strengthen the support, guidance and interaction with stakeholders
Strategic Objective 1.3:
Strengthen institutional mechanism for integrated policy, planning, monitoring and evaluation in the sector
Strategic Goal 2:
Enhanced production, employment and economic growth in the sector
Strategic Objective 2.1:
Ensure increase production and productivity in prioritised areas as well as value chains
Strategic Objective 2.2:
Effective management of bio-security and related sector risks
Strategic Objective 2.3:
Ensure support for market access and processing of Agriculture, Forestry and Fisheries products
Strategic Goal 3:
Enabling environment for food security and sector transformation
Strategic Objective 3.1:
Lead and coordinate government food security initiatives
Strategic Objective 3.2:
Enhance capacity for efficient delivery in the sector
Strategic Objective 3.3:
Strengthen comprehensive support systems and programmes
Strategic Goal 4:
Sustainable use of natural resources in the sector
Strategic Objective 4.1:
Ensure the conservation, protection, rehabilitation and recovery of depleted and degraded natural resources
Strategic Objective 4.2:
Ensure adaptation and mitigation to climate change through effective implementation of prescribed frameworks

13. Summary of Achievements of the MLRF

14. Summary of Achievements of the MLRF
The MLRF received an unqualified audit report for 2015/16
The MLRF had 9 annual targets in its 2015 – 2016 Annual Performance Plan. Four of these deliverables were successfully completed;
Aquaculture and Economic Development:
Four Operation Phakisa Aquaculture Projects were supported through the provision of technical, advisory services and compliance
Research and Development:
The compilation of Research Reports to indicate stock levels for West Coast Rock Lobster, Deep-water Hake and Abalone.
The development of Recovery Plans for Abalone, West Coast Rock Lobster and Deep-water Hake
The conducting of two (2) new research studies on genetics and nutrition for aquaculture species

15. Summary of Achievements of the MLRF (cont)
Marine Resource Management:
Fishing Rights Allocation Process 2015 Framework finalised
Small-scale Fisheries Regulations published
Launch of the Small-scale Fisheries Forum
Introduction of an cell-phone information management system for small-scale fishers
Monitoring Control and Surveillance:
The completion of 47 monitoring, control and surveillance efforts.

16. Performance Against Targets

17. Performance Against Targets
Strategic Objectives
 SO I: Coordinate government food security initiative
SO 2: Ensure the sustainable management and efficient use of natural resources and the protection of indigenous genetic resources
SO 3: Increase growth, income and sustainable job opportunities in the value chain; and increase market access for South African agricultural, forestry and fisheries products domestically and internationally
Programme/Sub-programme
Performance
Indicator
Actual
Achievement
2014/2015
Planned Target
2015/16
Actual Achievement
Deviation from planned target to
Comments on deviations
Number of aquaculture catalyst projects identified and listed under Operation Phakisa supported
I I fish fanns supported through the provision of technical,advisory services and compliance
4 phase I Operation Phakisa projects supported
Four (4) Operation Phakisa projects supported.
I. Blue Oceans Mussels (Pty) Ltd in the Western Cape
2.AMS Cobble CC (Limpopo)
3. Clean Air Nurseries 63
(Pty) Ltd (Gauteng)
4. Reitz Braaikuikens (Pty) Ltd (Limpopo) -
Aquaculture Bill approved as per Operation Phakisa
Aquaculture draft Bill was approved by EXCO on 30 March 20 IS
Bill submitted to state law advisors for review and certification
Bill submitted to Parliament for approval
The Minister approved
the submission to gazette the DraftAquaculture Bill. Provincial HODs of the Department of Agriculture were requested to support the Public Consultative
The Aquaculture Bill has not been submitted to state law advisors for review and certification
The Aquaculture Bill has not been submitted to Parliament for approval.
The execution of Q2 deliverables were delayed due to the newly introduced requirement to complete
a Socio Economic Impact
Assessment System tool;

18. Performance Against Targets (cont…)
Indicator
Actual
Achievement
2014/2015
Planned Target
2015/16
Actual Achievement
Deviation from planned target to Actual Achievement
Comments on deviations
Workshops that took place in March 2016.
Public Consultative Workshops on the Draft Aquaculture Bill were successfully conducted in all
9 Provinces.
The above had a knock-on effect to the planned Q2, Q3 and Q4 targets
Number of Full-time Equivalent (FTE’s) jobs (Working for Fisheries Programme)
658 Full-time Equivalents were achieved
535 FTEs
658 FTEs were achieved, as follows:
58.6% Youth
55% Women
2% Disabled
The Programme over- achieved on its target by
123 FTEs by expanding some the labour-intensive projects.
Integrated Fisheries Security Strategy (IFSS) implemented
5 541 sea-based and land- based inspections, and investigations of rights holders in the 4 prioritised fisheries sectors conducted
4 548 compliance and enforcement measures in the 4 prioritised fisheries sectors: hake abalone, rock lobster and linefish implemented
26 operations
Comp = 12
M&S = 6
FPV = 8
5 566 compliance and enforcement measures in the 4 prioritised fisheries sector:
Hake, abalone, rock lobster
and linefish implemented
47 operations
Comp = 17
M&S = 9
FPV = 21
1 018 more inspections were completed
Comp = +5
M&S = +3
FPV = +13
The Fisheries Protection Vessels were fully operational; conducive sea weather conditions provided impetus for the directorates: Fisheries Protection Vessels and
Compliance to exceed their annual targets.
The functioning of the Fisheries Protection Vessels and the introduction of

19. Performance Against Targets (cont…)
Indicator
Actual
Achievements
2014/15
Planned Target
2015/16
Actual Achievement
Deviation from planned target to Actual Achievement
Comments on deviations
Operation Phakisa for the protection of Marine resources provided impetus for directorates: Fisheries Protection Vessels and Compliance to exceed targets.
Plan to recover and maintain prioritised fish stocks
Target achieved. Recovery plans for the 3 sectors: Deep water hake, abalone and WCRL were approved
Recovery plans for the 3 sectors: Abalone,WCRL and deep water hake updated
Recovery plans for the 3 sectors:Abalone,WCRL and deep water hake updated -
Research report to indicate fish stock levels was compiled together with the Operational Management Procedure applied for the sustainable catches for the
2014/15 fishing season
Research report to indicate
fish stock levels compiled.
Research report to indicate fish stock levels compiled for:West Coast rock lobster; Deep-water hake; and Abalone.
Number of aquaculture research projects conducted
1 research project on reproduction and nutrition was conducted successfully
2 new research studies on genetics and nutrition for aquaculture species conducted
2 new research studies on genetics and nutrition for aquaculture species were conducted

20. Performance Against Targets (cont…)
Indicator
Actual
Achievements
2014/15
Planned Target
2015/16
Actual Achievement
Deviation from planned target to Actual Achievement
Comments on deviations
 Genetics: Genetic manipulation of a popular fresh water commercial catfish (barbel- Clarias gariepinus) to produce sterile offspring for commercial production in conservational sensitive areas. Induction of genetic manipulation completed. Catfish in grow-out phase to maturity. . Progress report compiled. Nutrition: Managed to test the effect of non- conventional dietary ingredients on the growth performance of spotted grunter, Pomadasys commersonni.The addition of de-activated torula yeast in commercial diet significantly improves growth of fish compared to commercial diet.Technical report completed. Article completion in progress

21. Performance Against Targets (cont…)
Indicator
Actual
Achievement
2014/15
Planned Target
2015/16
Actual Achievement
Deviation from planned target to
Comments on deviations
Small-Scale Fisheries Policy Implemented
Draft regulations were published for public comment and road shows were conducted to explain the
draft regulations to stakeholders and to receive their inputs. During the road shows, approximately
3000 stakeholders were engaged in 27 venues, covering 4 coastal provinces.
Draft regulations were also presented at the inaugural Small-scale Fishery Forum meeting and to NEDLAC
Rights allocated to registered small – scale fisheries
cooperatives
Published promulgation of amended Marine Living Resources Act and approved Small-scale Fishing Regulations.
Verification protocol
completed.
NC,WC & EC community visitation schedule completed for registration and verification of fishers per community.
Started the registration and verification process in communities.
Approved Small-scale fisher regulations translated into Afrikaans, isiXhosa and isiZulu
Small-Scale fishing rights could not be allocated
A number of delays were experienced in getting the legal framework in place which was outside the control of the directorate.
Rights allocated to 9
fishing
sectors
Final draft FRAP Framework was approved by the Deputy Director-General
Develop
sector-specific
policies
and allocate rights to 9 fishing sectors
10 Sector-specific policies
developed.
Fishing Rights were not allocated.
The Directorates have not achieved this target due to:
1. Initial closing date i.e., 22 January
2016 for submission of applications
was moved to 12 February 2016 at the request from Stakeholders; and
2. Further, the closing date of 12
February 2016 was moved to Friday,
26 February These extensions were to enable potential applicants more time to complete the forms and to collate their supporting documentation.

22. Financial Statements

23. Statement of Financial Position

24. Statement of Financial Performance

25. Statement of Changes in the Assets

26. Cash Flow Statement

27. Statement of Comparison of Budget and Actual Information

28. Recommendation
That the Portfolio Committee approves the 2015/16 Annual Report of the Marine Living Resources Fund