Fisheries to foster job growth

THE Government of Prime Minister James Marape will fully implement initiatives to foster job growth and an increase in revenue in the fisheries sector.
In a statement yesterday, caretaker Fisheries Minister Solan Mirisim said: “The sector has enormous potential for growth that remains untapped.
“We must harness that, especially in the area of downstream processing.
“Marape broadly outlined the approach this government will take in developing this sector during his speech in Parliament last week.
“We cannot rely only on revenue from access fees paid annually to fish in our waters. We must fully implement measures that will increase processing in our six factories onshore.
“This will create more employment, increase export earnings, and create more spin-off benefits for local businesses.”
Mirisim said the rebate scheme which was implemented last year was showing positive result and would continue.
“The Government expects revenue from the Vessel Day Scheme – VDS – (access fee) to rise by an extra K180 million this year, bringing the total scheme revenue to around K600mil,” he said.
“About a third of that money is expected to be channelled back into the factories under the rebates scheme.
“This is to offset costs associated with processing and is set at US$400 (K1349) per ton as approved by Cabinet last year.
“So the incentive to process more fish onshore is there; and it is quite attractive. The more they process in their factories, the more they get in rebate.”
Mirisim said the National Fisheries Authority (NFA) has advised the Government that data received so far from the factories were encouraging.
“Production is gradually increasing; more people are being employed, especially women, in the factories, and exports are going up.”
He said a separate submission by fishing boat owners for an additional VDS refund to offset costs associated with fishing was considered and approved late last year by the National Executive Council (NEC).
“The additional VDS refund was granted on the basis that costs associated with fishing were separate from costs borne from processing,” he said.
“We also recognise that fishing discounts they are entitled to in the state agreements we sign with these investors are removed under the rebates scheme, so we felt obliged to offer some VDS refund.”
Mirisim said the VDS refund mechanism had been approved by Cabinet, but not implemented yet.
“I am advised that the CACC is yet to settle on a formula for the refund. I will ensure this is expedited. It has been delayed for over five months now, which is not ideal,” he said.
“If we are to achieve our policy targets, we must work closely with the industry.”
Mirisim said he expected the NFA to provide quarterly reports to Cabinet through his ministry on the progress on the implementation of the rebate and refund schemes.
He also urged the industry to fully cooperate with the NFA in implementing the schemes and not provide false or misleading data.