The Fisheries Observer Agency (FOA) came under heavy criticism from the fishing industry over its levies.
During a consultation meeting at the coast last week, representatives of the fishing industry asked the FOA to base its levies on the consumer price index (CPI), saying levies above the inflation rate would cripple the fishing industry.
The fishing industry is unhappy that FAO observer levies are based on the fact that the institution uses 89 percent of its income to pay for salaries and wages, with only 11 percent going to operational costs. The fishing sector is now asking the agency to be more transparent and to avail its financial books to industry scrutiny.
FAO receives 60 percent of its annual budget from the Ministry of Fisheries and Marine Resources and the rest of its revenue come from observer levies. The FOA provides fisheries observers who accompany fishing vessels to sea to observe and record data on marine resources harvesting, the collection and recording of biological data on harvested species, and to collect samples of harvested species.
Matty Amukwa who spoke on behalf of the entire fishing industry during the consultations last week, requested the FOA to provide the industry with details of their expenditure and also to provide a clear plan to reduce their operational expenses. Amukwa stressed that the FOA should improve on its operational efficiency and service delivery without passing the cost to the industry itself.
“The industry is one of the biggest [stakeholders] in this operation and transparency will be the key to success. To make matters more difficult the industry is in the dark as to how the agency is spending its resources, and we do not know about its budget and financial status,” Amukwa said. He further explained that an agreement was reached between the FOA and the industry to increase the levy within the official inflation rate.
“We requested that the FOA stick to the current agreement of an annual increase based on CPI. It will be difficult for the industry to go above that, considering the difficult and challenging situation it is currently facing,” Amukwa explained. The industry also questioned the FOA with regard to extra income-generation and cost cutting measures instead of always relying on levies paid by the industry and the subsidy from the ministry.
The consultative meeting took place in Walvis Bay and was attended by the Deputy Minister of Fisheries and Marine Resources, Chief Samuel Ankama, who highlighted the important role of the FOA, saying without adequate resources the FAO would not be able to execute its duties. He added that it is understandable that the observer levies have not been adjusted due to poor economic conditions that affected the fishing industry.
“In terms of the Marine Resources Act, the level of the fisheries observer levy is to be set by the Minister of Fisheries and Marine Resources in consultation with the Marine Advisory Council. Indeed, the minister should also consult with the industry before deciding on a rate and this is the process taking place today,” Ankama said.
2013 New Era