1. 14 June 2011 Presentation to the Portfolio Committee on Fisheries The Status of Transformation in the Fishing Industry

2. SA Fisheries Management at a Glance: 1994 to 2011 1994 - 2000 1% of fisheries black owned ; 0% black managed No more than 400 quota (right) holders in total Promulgation of the Marine Living Resources Act in 1998 Chaos of the 1998 – 2000 period (incl SACFC and excessive government intervention) 2000 - present Creation of the Branch: Marine and Coastal Management & Appointment of a DDG The allocation of Medium Term Commercial Fishing Rights in 2001 – the first ever multi-year fishing rights allocation The allocation of Long Term Fishing Quotas in 2005/2006 Transfer of fisheries functions and the related chaos Review of fishing performance in 2009

3. The 2005 Policy Fundamentals Broad Based Black Economic Empowerment Biology of the target resource Ecology in which target resource is found Economic and Social Development Black and female equity ownership; Black and female control of management; Compliance with Employment Equity and Skills Legislation; Worker empowerment (share schemes); CSI (1% and more to be considered); Affirmative Procurement Managed through the setting on an annual basis of Total Allowable Catch and/or Total Applied Effort limitations The Ecosystems Approach to Fisheries (EAF) Management is an international obligation determined at WSSD with a deadline of 2012 Fisheries is an important food source. It also provides important jobs and livelihoods for thousands along our coast

4. Fisheries Clusters Cluster A (Capital Intensive) Hake Deep Sea Trawl Hake Inshore Trawl Horse Mackerel Small Pelagics Patagonian Toothfish South Coast Rock Lobster KZN Prawn Trawl Cluster B (Less Capital Intensive) WCRL (Off Shore) Hake Longline Squid Tuna Handline Seaweed Shark Long Line (Demersal) Cluster C (High Value, Small Scale Commercial) Handline Hake WCRL (Near Shore) Traditional Line Fish Abalone Cluster D (Low Value, Marginal) Oysters White Mussels Beach Seine Nets KZN Beach Seine (Pilchards)

5. What are the transformation, investment & job profiles of our major commercial fisheries? THE PILCHARD FISHERY: R800 million Duration of Quotas – 15 years (31 December 2020) Duration of Quotas – 15 years (31 December 2020) Number of Rights Holders: 114 Number of Rights Holders: 114 Number of Vessels: 137 Number of Vessels: 137 Percentage of Black Right Holders and percentage of black controlled TAC: 62.9% (sardine) and 57.9% (anchovy) Percentage of Black Right Holders and percentage of black controlled TAC: 62.9% (sardine) and 57.9% (anchovy) Gross Asset Value: R1, 218 billion Gross Asset Value: R1, 218 billion Mean annual turnover: R2.9 million Mean annual turnover: R2.9 million Jobs sustained: 15 133 Jobs sustained: 15 133

6. What are the transformation, investment & job profiles of our major commercial fisheries? THE HAKE TRAWL FISHERY: R2,2 billion Duration of Quotas – 15 years (31 December 2020) Duration of Quotas – 15 years (31 December 2020) Number of Rights Holders: 52 Number of Rights Holders: 52 Number of Vessels: 79 Number of Vessels: 79 Percentage of Black Right Holders: 60% Percentage of Black Right Holders: 60% Percentage of TAC Black controlled: 43% Percentage of TAC Black controlled: 43% Gross Asset Value: R2,4 billion Gross Asset Value: R2,4 billion Jobs sustained: 9000 Jobs sustained: 9000

7. What are the transformation, investment & job profiles of our major commercial fisheries? THE SCRL FISHERY: R114 million Duration of Quotas – 15 years (30 September 2020) Duration of Quotas – 15 years (30 September 2020) Number of Rights Holders: 16 Number of Rights Holders: 16 Number of Vessels: 9 Number of Vessels: 9 Percentage of Black Right Holders: 71% Percentage of Black Right Holders: 71% Percentage of TAC Black controlled: 72% Percentage of TAC Black controlled: 72% Gross Asset Value: R127 million Gross Asset Value: R127 million Annual Turnover: R155 million Annual Turnover: R155 million Jobs sustained: 441 Jobs sustained: 441

8. What are the transformation, investment & job profiles of our major commercial fisheries? THE SQUID FISHERY: R900 million Duration of Quotas – 8 years (31 December 2013) Duration of Quotas – 8 years (31 December 2013) Number of Rights Holders: 121 Number of Rights Holders: 121 Number of Vessels: 138 Number of Vessels: 138 Percentage of Black Right Holders: 49% Percentage of Black Right Holders: 49% Gross Asset Value: R440 million Gross Asset Value: R440 million Jobs sustained: 2422 Jobs sustained: 2422

9. What are the transformation, investment & job profiles of our major commercial fisheries? THE HAKE LONG LINE FISHERY: R340 million** Duration of Quotas – 15 years (31 December 2020) Duration of Quotas – 15 years (31 December 2020) Number of Rights Holders: 139 Number of Rights Holders: 139 Number of Vessels: 80 Number of Vessels: 80 Percentage of Black Right Holders: 91.3% Percentage of Black Right Holders: 91.3% Gross Asset Value: R182 million Gross Asset Value: R182 million Jobs sustained: 1495 Jobs sustained: 1495

10. What are the transformation, investment & job profiles of our major commercial fisheries? THE WCRL FISHERY: R347 million (excl. IR) Duration of Quotas – 10 years (31 July 2015) Duration of Quotas – 10 years (31 July 2015) Number of Rights Holders: 245 // 812 Number of Rights Holders: 245 // 812 Number of Vessels: 142 // unknown Number of Vessels: 142 // unknown Percentage of Black Right Holders: 64.7% / 90% Percentage of Black Right Holders: 64.7% / 90% Jobs sustained: 1058 // 3248 Jobs sustained: 1058 // 3248

11. The Way Forward SA Commercial fisheries is significantly transformed – 60% of all fishing quotas allocated to black persons SA Commercial fisheries is significantly transformed – 60% of all fishing quotas allocated to black persons Of the 3019 commercial fishery quotas, more than 2200 are allocated exclusively to small- scale // artisinal fishers (Clusters C & D) Of the 3019 commercial fishery quotas, more than 2200 are allocated exclusively to small- scale // artisinal fishers (Clusters C & D) Threats to the transformation gains: Threats to the transformation gains: The draft small-scale commercial fishing policy The draft small-scale commercial fishing policy Lack of leadership at DAFF and policy / vision = lack of support for small black-owned enterprises (eg HLL & WCRL & Oysters) Lack of leadership at DAFF and policy / vision = lack of support for small black-owned enterprises (eg HLL & WCRL & Oysters) No plan with regard to the next round of fishing quota allocations in 2013 (abalone, squid, line fish, large pelagics, shark demersal etc) No plan with regard to the next round of fishing quota allocations in 2013 (abalone, squid, line fish, large pelagics, shark demersal etc) Pervasive poaching of high value inshore fish stocks (abalone and WCRL) Pervasive poaching of high value inshore fish stocks (abalone and WCRL)

12. Will the draft small-scale/subsistence fishery policy aid or fail transformation? Policy premise is fatally flawed – –Quotas to be allocated to fishing communities and managed via co-operatives Co-operative type management simply leads to community-based conflict –The case of Hout Bay and interim relief Who pays for the massive administrative bureaucracy of running a co-op? Where will the fish come from? It cant come from offshore quotas as the entire principle is empowerment of small-scale fishers and the creation of fronts! What has past experience taught us? –The case of SACFC