Pokajam explains association

PAPUA New Guinea’s fisheries sector is said to have played a major role in contributing to the country’s economy. Better management and sustainability of the sector are seen to be crucial in helping the sector contribute to the country’s development. The National’s Business Reporter JACKLYN SIRIAS spoke to PNG Fishing Industry Association (FIA) president SYLVESTER POKAJAM about the country’s fishing industry.

SIRIAS: Please give an overview of FIA and its role in the country’s fishing industry?
POKAJAM: The overview of FIA is to enhance and build fisheries capacity and development in PNG. That is what the industry represents to work with National Fisheries Authority (NFA) and the government to make sure policies are consistent and in support of fisheries development in PNG and to look at incentives the government should provide through NFA or through the government itself. FIA also stand to support small to medium local fisheries businesses to make sure they get the right support from Government through NFA. The policies on onshore fishing and processing and on inshore fishing in terms of domestic fishing both in coastal and islands areas. We look at small scale fishing at regional and community-based level like aquaculture starting fish farms and prawn farms, etc. So FIA represents everybody from small scale fisheries to large players like RD Tuna, South Seas Tuna and others.
SIRIAS: Illegal fishing in PNG waters is a concern that had been covered in the media recently. How does this impact the industry?
POKAJAM: Illegal fishing varies from various type of fisheries. Basically, they refer to fishing of tuna, other fish species and recently we have seen for the first time in the history of PNG, pouching of sea-cucumber in the waters of PNG by Vietnamese (the blue boats). These illegal fishing occurs mainly in parts of PNG waters especially along the edge of our sea boundaries that we share with other countries. When boats come in to fish at the boundaries and when there is no one watching, they cross over. We are doing nothing about it at the moment. These became a major concern to the industry as surveillance was so poor, otherwise, nothing. Therefore, these calls for everybody to get together so that we do something about this. NFA could only do it but, in terms of fishing like this it is very difficult for NFA to monitor because systems they have could only monitor those large fishing vessels that paid their license to do fishing in our waters. But for smaller boats, it is going to be very difficult.
SIRIAS: From FIA views, what initiatives could be undertaken by relevant government agencies to address this illegal fishing?
POKAJAM: When you talk about fish, there are agencies that are involved with this. Government had come up with the border development authority and they have to look at policing the borders from illegal immigration and illegal trade. We have Royal Papua New Guinea Constabulary, PNG Defense Force, Customs, Immigration, Department of Labour, Department of Provincial and Local Government Affairs. All these organisations are involved with movement of people, vessels and goods and services. There had to be some kind of cohesiveness, some kind of groupings that’s really tasked to look into this issue. At the moment, we tend to look at doing it one by one. There had to be some kind of consultations so they can come up with something. A direct body should be formed to look at these issues to address it. Not only about illegal fishing, when you talk about illegal fishing, you talk about illegal migration or movement of people, marketing of illegal items and so many other things.
SIRIAS: The industry allows for rural-based majority to earn an income through employment at large canneries and through small-scale fishing operations. In what ways can the government improve this through its policy on infrastructure development?
POKAJAM: This is a very long time non-existence of government looking at how they can do this to empower the people. What we have now is lack of basic infrastructure. We do not have fish ports, fishing wharfs. Every time we talk about bridges and roads, but we never talk about fishing ports and wharfs for fishermen and fisherwomen. Also government should look at policies that can drive development, not policies that repel development. They should look at allowing industries flexibility because what we want is empowerment to fully participate in small, medium or light-scale fishing and processing businesses. So much are happening at small scale and medium compared to other countries. The main objective of the government of PNG for this large scale processing companies is to create sustainable employment. So long as we make sure our fishery, especially tuna, remain sustainable, those employment are sustainable and they are going to grow, over time. But NFA does not have a policy in place to manage the tuna fishery both in fishing and processing. That’s why policy makers got to be very careful in making policies because we are growing in terms of value adding and don’t try to force companies to do this now because it’s going to grow.
SIRIAS: How can PNG fully maximise on opportunities from global fisheries market with its participation in regional arrangements (e.g. PNA)?
POKAJAM:  My view is, I want to see PNG become a processing centre. At the same time, I want to see PNG become a marketing centre. Which means that if we can do properly that all fish could come back into PNG, in terms of processing, then we can succumb prices so what we are going to do is that we allow our fish to be exported and encourage our companies to go and buy fish from those who are fishing under bilateral agreements like Japan, Korea and others to bring it into PNG and process. We are talking two benefit scenario for tuna here. One is that, you allow your fish to be exported, that money comes back into PNG through the flagged vessels and locally-based foreigners but you also buy from bilateral countries and process them here so we end up having double adding value.
SIRIAS: Foreign currency accounts for participants in the fisheries industry was a major concern raised at the recent industry consultative meeting hosted by NFA. Could you give an overview of this concern by your members and possible means to address this?
POKAJAM: This is a contagious issue which popped up in middle of last year and is now continuing. The Central Bank had come down hard by allowing US and Japanese accounts to open everywhere like a mushroom, it gives the bank a lot of problems. In some extent, they were manipulated by some people who have access to these kind of accounts. The bank (BPNG) had come back to apply some stringent control. However, with the fisheries sector, because most of the transactions were done in US dollars, if we are to take that process away and tell them to line up at the queue, then it’s going to be very hard for them to meet their obligations especially the offshore creditors. They will be seen as bad customers and then it’s going to be hard for them to try and negotiate for further materials and provisions and things like that for their operations and fishing loads. Therefore, the bank should allow foreign currency accounts.
SIRIAS: It seems sustainability is a vital consideration for fisheries operations and government regulation of the industry. From FIA’s point of view, how has this consideration been taken into industry operations?
POKAJAM: Sustainability is paramount for everyone. But, we have to make sure, as an association, we want the Government to understand cost of running fishing and processing business including others here in PNG. For fishing, everyone throughout the world talk about sustainability. But at the same time, they talk about cost. From our (industry’s) point of view, we do not want to see more and more cost added to fishing and processing. What we see now is, the industry is charging more and more cost into the tuna fisheries by charging high vessel day scheme (VDS) fees, fees on fish aggregating devices, and so many other things. It’s okay for them to do that to a foreign company, but how are you going to address the local companies? You keep on increasing fees which is okay for the bilateral or foreigners but your own people? You are making it too hard for us to really go into the business because it just too expensive. No PNG or Pacific island countries would go into fishing business especially tuna because it gets too expensive. This is where we are coming from. It is okay PNA which PNG is a member boast about having the best fishery and management in the world, but that would come at a cost. What will happen to our people? Can they afford to go into business? At the moment, they cannot.
SIRIAS: Respective industries are vital to the economy with fisheries being a consistent contributor to the Government purse year after year. Considering this do you feel there is a fair Government’s emphasis on each of the industries?
POKAJAM: Government emphasis on this industry, fisheries, is value adding and generation of employment, empowering of the people. Government should not focus on charging high fees on this industry. Government should be looking at how many people should participate and the sustainability of that sector. Our aim is to concentrate on how much employment we are going to create through fishing and processing. This should be our ultimate aim. Not to run into the thing about how much money Government is going to get. Government is going to get more money when many people go into fishing and processing and get employment. They do not get revenue only through VDS, but through other forms like VAT and all other fees that they charge as well as from export earnings. The US dollar comes back in, the banks share to the trading banks, the trading bank buy and then they sell it to you. Central bank make money, trading bank make money, and you pay them, we are the cost bearers. We still pay for this things so they should look at macro measures, not only look at just one. That’s how we should focus on creating basic infrastructures like wharves and fish ports and airports to make it easy for the movement of marine products.
SIRIAS: The NFA has recently given FIA a quarter of a million kina to support its operations. What are some initiatives to be undertaken by FIA this year?
POKAJAM: FIA was able to rescue the industry which was at the urge of collapsing. They do not have a policy in place. Their policy were more or less like a foreign bilateral operating in the country. We were able to stand with NFA board and tell the board this is wrong. Onshore processes and our domestic must be treated well. So the fees for VDS from US$10, 000 came down to US$5,000 and US$3,000. If you are a foreign flag, and charted in PNG, you could pay US$5, 000 per day and if you are a PNG Flag, you pay US$3, 000 per day. If you breach that you pay a US$1, 000. We shaped the industry. But that is not the policy. This is just an argument that we go to the board and we get it. It might change next year because as I have said NFA has not got a policy yet. The industry must be very careful. The money that we get from NFA would help us a lot because we try to encourage PNG small fishing businesses to medium to large to apply to become members of the association.