The SA Squid Management Industry Association (SASMIA) said that leave to appeal an earlier judgment and order by the Western Cape High Court has been granted.
The court battle continues on the annual allocation of a minimum of 15% of available commercial squid fishing rights to the small-scale fisheries sector.
The SA Squid Management Industry Association (SASMIA) said that leave to appeal an earlier judgment and order by the Western Cape High Court has been granted.
SASMIA stated that in October, the High Court dismissed an application for judicial review, which challenged the annual allocation of a minimum of 15% of available commercial squid fishing rights to the small-scale fisheries sector, as well as an earlier decision to include squid among the basket of species exploited by small-scale fishers.
SASMIA added that they contended in their application for leave to appeal that the Court had erred in dismissing the review application and, among other things, failed to consider or rule on the substantive issues raised in the review application papers.
“In the review application, SASMIA sought to overturn the decisions of the Minister and the Department of Forestry, Fisheries and the Environment (DFFE) which resulted in a minimum allocation of 15% of available squid rights to small-scale cooperatives, contending that such decisions are unlawful and irregular.”
Pheobius Mullins, Vice-Chairman of SASMIA, said that the fundamental issue is the allocation of substantial rights from a capital-intensive commercial fishery to small-scale cooperatives. “South Africa’s Marine Living Resources Act (MLRA) was amended in 2014 to accommodate small-scale fishers who are defined as people who make a living from the ocean using little to no technology, usually on a day-to-day basis and on or near shore.”
Mullins added that, in contrast, the commercial squid fishery operates on an industrial scale: deep-sea freezer vessels are built at a cost of between R5 million and R25 million each.
“The catch is frozen at sea on fishing voyages lasting between 21 and 31 days. Ninety-nine percent of the catch is exported, mainly to Europe and the Far East.”
Mullins said that the association contends the decision by the Minister/DFFE to annually divert a minimum of 15%, and potentially up to 25%, of squid permits to small-scale cooperatives “
It not only contradicts the government’s definition of small-scale fishing, but is also in conflict with the law. The diversion of rights is considered by SASMIA to be harmful to employment, investment, and the broader goals of economic transformation within the squid fishery.”
Mullins added that today, 68 of the 74 right-holding companies in the commercial squid fishery are majority black-owned. “The fishery is dominated by small and medium enterprises (SMEs) which hold significant investments in vessels and infrastructure. Reducing the number of permits allocated to the commercial fishery by 15% across the board has effectively penalised the black-owned SMEs the government purports to support. For small-scale fishers to exploit their allocations, the small-scale cooperatives are obliged to rent vessels or contract their rights to commercial operators.
This effectively diverts the economic benefits of the squid fishery away from the existing commercial right holders who are reliant on the squid resource for their livelihoods and who have the vessels and experience to add value to the catch and maximise employment.”
Mullins said that the cooperatives are essentially armchair fishers or paper quota holders – who sell their rights to the highest bidder. “I’m of the view that the involvement of small-scale cooperatives in the commercial squid fishery encourages rent-seeking behaviour rather than genuine investment and meaningful participation, which undermines the fishery’s long-term stability.”
Mullins added that the likely impact of a continued 15% to 25% reduction is that a portion of the commercial fishing fleet will only be able to operate viably during peak catch periods, with dire consequences for employment. “One of the key points in SASMIA’s case is the failure by the Minister/DFFE to adequately consult the squid industry about the proposed inclusion of squid rights in the small-scale basket of species and the allocation of squid rights to the small-scale sector.”
Mullins said that SASMIA’s appeal is not just about one sector of the fishing industry, but about ensuring that South Africa’s fisheries management is based on solid, transparent, and evidence-based principles. “The appeal is crucial not only for resolving this particular issue but also for clarifying how resource allocations are made in the fishing industry in South Africa in the future. It is therefore to the benefit of the entire fishing community.”
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