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CI Times Weekly | Current Issue 269 | 22 September 2008

Fishing: foreign boats face higher fees

Concerns have been expressed by a local fishing company over the new Fishing Regulations which establishes a new licensing fee and procedure. Rising operating costs and possible flooding of the local market with by catch are some of the concerns.
Francis Garnier and his Tahitian partner Eugene Degage operate “Matira South Fishing.” The company has two vessels, the “Matira” and “Ramatai” and operates two charter vessels. Degage himself operates 30 fishing boats in Tahiti.
Garnier is concerned at the new policy adopted by government to replace the previous demise charter system which was cancelled by government after it received a legal opinion that the fees being collected by local companies from the owners of overseas vessels chartered, should have been paid to government and not pocketed by the local owners.
Garnier said under the old system if a local owner had one boat, he could charter up to three overseas vessels. The local owner paid a fee of $2,500 per year to register his boat and a fee of $5,000 per year for each overseas boat he chartered.
For each overseas vessel chartered, the local owner charged a monthly fee which totaled over $20,000 per year.
This fee helped local owners meet some of the high costs associated with their fishing operation.
Garnier said under the old system, there was no return to government from boats fishing in the north and offloading their catch at Pago.
He said the new system ensures government now benefits from boats fishing in the north and supplying the Pago canneries.
For fishing in the southern waters, local boat owners pay $2,500 per local boat a year and $5,000 per year for each boat chartered from overseas.
However, local owners using their own boats and chartered boats to fish in the north and supply the Pago canneries will now pay $40,000 per year per boat. However a rebate kicks in if boats bring their by-catch back to Rarotonga to sell on the local market, export, etc. If they unload 20 tonnes per year they get a rebate of $15,000.
Garnier is concerned that this system will result in the local market being flooded with fish. Other difficulties which arise are the by-catch will be frozen and must compete with fresh fish sold in other outlets supplied by other companies.
Garnier and his partner already have a container load of by-catch on the wharf and are selling to whoever comes along. He is selling by the fillet at a price of $10 per kilo. A fillet being 50% of the fish. It’s already costing him $5 a kilo to sell the fish. The cost of electricity for the chiller container is also a factor. Garnier said his company is looking at developing a system to bring back to Rarotonga loin (processed) fish to export to New Zealand and Tahiti.
Garnier says he’s been told by government that they cannot pay his rebate in cash and are giving him a credit towards next year’s license fees.
So far government has not indicated to the industry just how the fees will be utilized to benefit the industry. So far he claims government has put nothing back into the industry.
He says the harbour redevelopment plan does not appear to cater for fishing vessels.
According to Garnier in Tahiti, the fishing industry is heavily subsidized with no fees being applicable, the fuel and bait are subsidized and there is a training school. Despite all this help, in Tahiti some 100 fishing boats are tied up.
Garnier says his boats make the trip to Tahiti to fuel up because its cheaper. A litre in Tahiti costs $1.42, in Samoa it is $1.44 and in Rarotonga it is over $2.30. The downside is that it takes 12 days from Rarotonga to Tahiti then to the fishing grounds up north.
He says canneries in Pago are now paying $2.852 per tonne for Albacore, $1,600 per short tonne for Yellow Fin tuna and $1,200 per short tonne for Big Eye tuna.
Garnier says the new system will open up our fishery to foreigners. They will not require a local partner and while they must register in Rarotonga and pay the fees ($40,000 per boat per year) there is no requirement to establish an office or appoint an agent. This could make any debt recovery difficulty.
The Times contacted Minister for Marine Resources Hon Wilkie Rasmussen for comment. He said the new amendments actually make it harder for foreign vessels to access our fishery. The Minister said there was extensive consultation with the industry before the changes were introduced. The changes only took effect in August and time should be allowed to trial the amendments.
The Minister said the fees would be paid into government’s consolidated fund as is normal. His Ministry however, is working on submissions for allocations to industry initiatives. As to the fee of $40,000 for foreign vessels, he said we should compare that to the fee of $200,000 being charged by Kiribas. He confirmed he had received comments from Francis Garnier regarding some concerns he had.
See separate article for brief details on the new regulations.