Stop fishing quota auctioning - CNFA
‘Discouraging investment in fisheries’
The Confederation of Namibian Fishing Associations says the auctioning of fishing quotas kills innovations in value addition.
The Confederation of Namibian Fishing Associations (CNFA) has urged the Minister of Fisheries and Marine Resources, Derek Klazen, to do away with the practice of auctioning off fishing quotas.
“As an important stakeholder, we advise that no auction for fishing quotas should take place. It does not maximise economic benefits for Namibians and discourages investment in fisheries,” said Matti Amukwa, CNFA chairperson.
Amukwa said that the industry needs urgent policy coherence on the issue of being on a rights-based system and quota allocation or having moved to a quota auction system. “We cannot have both, hence government needs to provide guidance on this matter.”
According to the CNFA, the auctioning of fishing quotas to the highest bidder is not provided for in the Marine Resources Act and does not maximise value for the government. “This practice is moving Namibia from the rights-based system back to a vessel-based system which was the regime before independence. This approach also discourages Namibianisation, because only well-established companies can compete in such auctions, to the disadvantage of hundreds of Namibian rights holders who are new to the fishing business.”
The CNFA says that the auction system creates uncertainty in fishing operations. “It is a lottery where no one can predict how much fish they will win the next season. As such, no one can invest long term in such conditions.”
The organisation also holds the opinion that the auctioning of fishing quotas kills innovation in value addition. “Once you win a bid, the government is limited in how many conditions it can impose on rights holders, i.e. value addition, employment and social responsibilities. If a quota is allocated to a rights holder, you can put on conditions or even withdraw it, but if the quota is acquired at the auction, it becomes private property.”
The CNFA stated that the industry has sustained more than 16 000 jobs over the years because rights holders could count on the annual allocation of fishing quotas. “Going forward, we need more value addition and long-term investment to create the much-needed jobs, especially for our youth. This is part of the commitment of the ministry under the Fifth National Development Plan (NDP5). It will be difficult to achieve job creation targets in the fishing industry given the unpredictability of fishing quotas created by setting aside large parts of the TAC for auction purposes.”
“As an important stakeholder, we advise that no auction for fishing quotas should take place. It does not maximise economic benefits for Namibians and discourages investment in fisheries,” said Matti Amukwa, CNFA chairperson.
Amukwa said that the industry needs urgent policy coherence on the issue of being on a rights-based system and quota allocation or having moved to a quota auction system. “We cannot have both, hence government needs to provide guidance on this matter.”
According to the CNFA, the auctioning of fishing quotas to the highest bidder is not provided for in the Marine Resources Act and does not maximise value for the government. “This practice is moving Namibia from the rights-based system back to a vessel-based system which was the regime before independence. This approach also discourages Namibianisation, because only well-established companies can compete in such auctions, to the disadvantage of hundreds of Namibian rights holders who are new to the fishing business.”
The CNFA says that the auction system creates uncertainty in fishing operations. “It is a lottery where no one can predict how much fish they will win the next season. As such, no one can invest long term in such conditions.”
The organisation also holds the opinion that the auctioning of fishing quotas kills innovation in value addition. “Once you win a bid, the government is limited in how many conditions it can impose on rights holders, i.e. value addition, employment and social responsibilities. If a quota is allocated to a rights holder, you can put on conditions or even withdraw it, but if the quota is acquired at the auction, it becomes private property.”
The CNFA stated that the industry has sustained more than 16 000 jobs over the years because rights holders could count on the annual allocation of fishing quotas. “Going forward, we need more value addition and long-term investment to create the much-needed jobs, especially for our youth. This is part of the commitment of the ministry under the Fifth National Development Plan (NDP5). It will be difficult to achieve job creation targets in the fishing industry given the unpredictability of fishing quotas created by setting aside large parts of the TAC for auction purposes.”
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