INDONESIA: fuel subsidies for fishermen maintained

Readers may have noticed that the world prices for oil are showing an upward trend.

In Indonesia the government has decided to maintain fuel subsidies for fishing vessels above 30 GT. According to one on line article in the Jakarta Post discussing this issue it appears that for the whole economy "The government has allocated Rp 123.6 trillion (13.8 billion USD) in government spending for fuel subsidies, including premium gasoline, diesel, kerosene and 3-kilogram canisters of liquefied petroleum gas (LPG)."

http://us.en.vivanews.com/news/read/291541-fishermen-will-still-get-fuel-subsidies

http://www.thejakartapost.com/news/2012/03/01/youth-organization-criticizes-government-s-fuel-policy.html

INDIA: TAMIL NADU STATE ASKS FOR FISHERIES SUBSIDIES TO THE FEDERAL GOVERNMENT

Ms Selvi  J Jayalalithaa, Hon'ble Chief Minister for the Indian State of Tamil Nadu, has asked the Indian Federal Government to provide subsidies to the fisheries sector in her state.

The request for subsidies was made at least twice.

For the first one, on 14 June 2011, the Chief Minister handed over a memorandum to Indian Prime Minister Manmohan Singh with a number of demands for financial assistance to fishermen in Tamil Nadu state.

What struck me, when reading the request made by the Chief Minister, is that the subsidies asked for relate to a whole range of programmes: vessel modification, new engines, aid to processing, fisheries specific infrastructure and, last but not least, fuel costs.

I copy here the demands on fisheries indcluded in this memorandum:

I. New fishing harbours: At present, approximately 1,100 mechanised fishing boats are engaged in fishing from Rameswaram base.
It is required to decongest the fishing fleet"financing for fishing harbours one at Poompuhar in the North at an approximate cost of 75 crores [750,000,000 rupees or 15,148,000 USD] and another one at Mookaiyur, South of Rameswaram at an approximate cost of 60 crores  [600,000,000 rupees or 12,118,000 USD] are long felt needs.

II. Special package for conversion of bottom trawlers into Deep Sea Tuna Long Liners: In order to reduce the trawler fishing pressure in the disputed waters of the Palk Bay area, the Government of India should offer a special package for conversion of bottom trawling boats into deep sea Tuna Long Liners suitable for deep sea fishing. As against the existing subsidy pattern available at the rate of 50%, the Government of India should give at least 90% subsidy for such conversion of vessels as a special incentive for conversion of the boats of thePalk Bay area. A sum of 15 crores [150,000,000 rupees or 3,000,000 USD] should be earmarked each year for this purpose.

II Assistance for Mid Sea Fish Processing Park: In order to benefit the traditional fishermen against the background of dwindling catch in shallow waters, the State requires assistance from the Government of India for a Pilot Project of establishing a Mid Sea Fish Processing Unit, which will also act as a ‘Value Added Export Oriented Park’. Under this Project, which will cost approximately 80 crores [800,000,000 rupees or 16,158,000 USD] , a ‘Carrier Mother Vessel’ will be stationed at mid-sea, and it will act as a source of essential inputs for the ‘Baby vessels’ which will be involved in commercial fishing in the deep seas. This will serve a dual purpose of adding value to the fish caught in the deep sea sand also consequently reduce the pressure of fishing in the shallow waters of Palk Bay.

IV. Reimbursement of Central Excise Duty on High Speed Diesel (HSD) to mechanized boats: To reduce the operational cost of mechanized fishing boats, the Government of India has a Scheme to reimburse the Central Excise Duty on HSD oil supplied to such boats. However, the conditions imposed for reimbursement of the Central Excise Duty, such as the requirement of the Boat owners to be in the BPL category (which is practically impossible for any motorised boat owner), and the monthly ceiling of only 500 litres per boat for availing of the subsidy are unworkable for Tamil Nadu, as well as other Coastal States. Such conditions should immediately be reviewed in order to make this Scheme operational.

V. Motorisation of traditional crafts: The present assistance of 3 crore per year for motorisation of nearly1,000 traditional crafts every year is very meagre for Tamil Nadu since there are 32,000 non-motorised traditional crafts in the State. It is requested that a Package of 15 crore [150,000,000 rupees or 3,000,000 USD] per year may be sanctioned so that at least 5,000 traditional crafts are motorized every year.

Here is an official press release by the State Government of Tamil Nadu announcing the hand over of the Memorandum:

http://www.tn.gov.in/seithi_veliyeedu/pic.php?id=1971

And here a link to a website where a copy of the memorandum can be found (I did not manage to find a copy in the official website).


http://www.tamilguardian.com/file/File/Memorandum_submitted_by_Tamil_Nadu_Chief_Minister_Selvi_J.pdf

On 25 December 2011, and taking advantage of a visit of Prime Minister Manmohan Singh to Channai, the Chief Minister handed over another Memorandum that included a reminder of the requests made in the previous one, and of "A special package of Rs.10 crore every year for the State for the dredging of fishing harbours and bar mouths. The Government of Tamil Nadu had requested for an assistance of Rs.10 crore [100,000,000 rupees or 202,000 USD] every year to take up dredging of fishing harbours and bar mouths each year."

Here is an official press release on this second Memorandum:

http://www.tn.gov.in/seithi_veliyeedu/pressphoto.php?id=2909

And here the link to the webpage with a copy of the Memorandum of 25 December 2011:

http://www.tn.gov.in/seithi_veliyeedu/pr25Dec11/pr251211_273.pdf

USA: fisheries subsidies and bilateral - plurilateral trade agreements

Apparently, the US is clearly making the case for including fisheries subsidies disciplines in trade agreements with other countries. Ambassador Demetrios J Marantis, Deputy US Trade Representative, was quoted to say, at at a press conference in Brunei Darussalamon on 27 February 2012:

"One of the problems that we face in the world of environmental conservation is subsidies that have a result of depleting fishery resources and so as part of the TPP, we're working on ways to discipline fisheries subsidies to ensure that they are compatible with environmental conservation"

Here is a link to an online article with the above quote:

http://www.brudirect.com/index.php/Local-News/tpp-membership-turns-brunei-into-attractive-destination-for-investors.html

BLOG NEWS: "My Blog List" clean-up

Readers have certainly noticed that some of the blogs appearing on my blog list had not been updated for a long time. So I have done some housekeeping: a couple of blogs have changed names. I have made the necessary changes so that readers can access the most up to date version. I have also removed an "idle" blog (not updated since several months).

INDIA: fishermen in the State of Karnataka get increased subsidy for... housing!

According to the Daijiworld Media Network the Indian State of Karnataka has increased the housing subsidy fro fishermen from Rs 40,000 to Rs 60,000 (from USD 753 to USD 1130).

The article mentions that the State government "has set apart the sum of Rs. 11.41 crore for construction of 2,000 houses for fishermen in 2011-12." (Rs 11.41 crore is approximately USD 2.15 million).

The article also says that "...the Cabinet also decided to release Rs 2 crore to cooperatives of fishermen for granting loans at 3 per cent rate of interest." (Rs 2 crore amounts to + USD 377,000)

Here is the link to the article:

http://www.daijiworld.com/news/news_disp.asp?n_id=122320

USA: negotiating fisheries subsidies disciplines in the Trans-Pacific Partnership

On 5 December 2011 the Office of the United States Trade Representative released a document titled  "USTR GREEN PAPER ON CONSERVATION AND THE TRANS-PACIFIC PARTNERSHIP".

In the paper it is stated that:

"The United States and other TPP countries have proposed TPP disciplines on subsidies that contribute to overcapacity and overfishing, potentially lighting the way for a WTO multilateral agreement on fisheries subsidies."

I am impressed by the move of the move of the US "and other TPP countries" to propose binding rules (disciplines) in the context of bilateral/multilateral trade deals. I tried to find the documents relating to this proposals but I did not succeed. So if readers know more about the subject I will be very glad to hear (or read) from them.

When reading in detail the USTR text a number of questions came to my mind:

Will these "disciplines" apply in the same way to all countries in the TPP or will the rules take into account different degrees of development? Will they apply to trade (i.e. to products) among TPP participants? Or rather to the harvesting of some species? Does this mean that some countries that are providing subsidies now will have to change their policies because of bilateral/plurilateral rules?

At any rate, this is a remarkable (and bold) development!

Here is the link to the USTR document:

http://www.ustr.gov/about-us/press-office/fact-sheets/2011/ustr-green-paper-conservation-and-trans-pacific-partnership

OMAN: USD 260 million subsidies for fishermen, over five years.

An article in the online edition of Oman Daily Observer mentions the figure of Omani Rial (RO) 100 million (or USD 260 million) over five years financial assistance package to the Omani fishing and aquaculture industry.

The article quotes Dr Hamed bin Said al Oufi, Fisheries Wealth Under-Secretary as saying that the bulk of the subsidies will go to fisheries infrastructure. Dr. Al Oufi added that the planned amount was "is more than four times what was allotted during the previous Plan" and that "part of the allocation will also help finance the upgrade of the fishing fleet, marketing chain infrastructure, training, exploration of new markets, and improvements in the quality of fish."

Speaking about the state of the Omani fisheries industry he said that: “Subsidies are not the only thing that fishermen will need. There are other sources of financing: the Oman Development Bank (ODB), for example, gives loans at almost zero interest rate. This is the future of developing the sector. Subsidies, on the other hand, have two sides — a positive side and a negative side. People get subsidies and don’t become active because they don’t have to pay back anything.”

Another interesting statement by Dr. Al Oufi refers to the export prohibitions in place for "five notified species" . Looking in the Internet for more information on this export bans I found an article in the Oman Tribune where it is stated that the Minister of Agriculture and Fisheries, issued a decision banning export of kanad (kingfish), sahwa (tuna), al gethar, and al safi for six months, from December 1, 2011.

Here is the link to the article on subsidies in the Oman Daily Observer:

http://main.omanobserver.om/node/72497

Here the link to  the article of the Oman Tribune on the export prohibitions.

http://www.omantribune.com/index.php?page=news&id=106029&heading=Oman

USA: subsidies for at-sea monitoring (catch shares program)

Recently I came a across a couple of articles in the online edition of East-coast newspapers. The first article, posted at Southcoasttofday.com, dated 13 October 2011, is titled “Senators say bill seeks to protect fishermen, taxpayers”. It is about a bill co-sponsored by Sen. Scott Brown, R-Mass., and Sen. Kelly Ayotte, R-N.H. that, if enacted, could, according to the newspaper “roll back” the catch shares programme in the ground fish industry. The newspaper quotes the following a statement by Senator Kelly Allote:

"To date, these costs have largely been subsidized by taxpayers, and fishermen will soon have to bear these additional costs themselves, which could push small fishermen out of business completely." 

In the article it is stated that the cost runs from 6 to 12 million USD per year. The full statement of Senator Allote can be found here:

http://ayotte.senate.gov/?p=press_release&id=234

A later article, also in the Gloucester Time and dated 20 October 2011, refers to a field Senate Commerce Committee hearing in Boston, where National Oceanic and Atmospheric Administration  (NOAA) Administrator Ms. Jane Lubchenco answered questions from Senators on the implementation of the catch shares programme in the East Coast.  The article mentions Ms Lubchenco pledge to continue to subsidise the at-sea monitoring cost through April 2013.

There is also a reference to reference to a letter by Ms Lubchenco, in response to a letter from Senator Kerry, where she  is ready to work with interested parties to issue, if necessary a commercial fishery "disaster declaration" related to the impacts of the catch share regimen on the groundfishery. This “disaster declaration” can trigger the payment of subsidies to fishermen.

Here is a link to Senators Kerry’s webpage where readers can find the requests addressed by Senator Kerry to NOAA and the response letter from Ms. Lubchenco.

http://kerry.senate.gov/press/release/?id=82f44f61-919f-4aae-8804-03b4425749f4

Here is also the link to the Senate’s Commerce Committee website where readers can find the written statements related to the field hearing in Boston on 3 October 2011:

http://commerce.senate.gov/public/index.cfm?p=Home

And here are the links to the press articles:

http://www.southcoasttoday.com/apps/pbcs.dll/article?AID=/20111013/NEWS/110130321/-1/NEWS10Senators%20say%20bill%20seeks%20to%20protect%20fishermen,%20taxpayersSteve%20Urbon

http://www.gloucestertimes.com/local/x859490826/NOAA-chief-extends-monitoring-payments

I also include the link to two video's. One is from Senator Allote questioning a Department of Commerce nominee on fisheries issues: 

And another from Mayor Carolyn A. Kirk, Democrat Gloucester Massachusetts asking  President Obama "to Stop New Regulations Driving Small Businesses Out of Business". The video was posted on 4 October 2011, i.e. one day after the field hearing of the Senate's Commerce Committee:

New Zealand: foreing vessels (and foreign subsidies?) and charter agreements

Some of my previous posts on NZ included a one titled "Domcumentary on NZ fishing practices" (15/08/2009).

New Zealand's authorities have taken these allegations very seriously and have launched a "Ministerial Inquiry into Foreign Charter Vessels" on these practices.

When going through some of the documents related to the inquiry and looking at the "nationality" of the vessels involved in the fishing operations (South Korea, Ukraine, Japan and Dominica) I wondered whether NZ companies where benefiting from subsidised fishing capacity, i.e. from vessels that would have been built with subsidies (investment susbsidies) and that would receive subsidies for operating costs (for example lower social security contributions) from the flag countries.

Perhaps readers have comments on this, i.e. the possible use of subsidised vessels, and its relation to WTO issues, such as the export of products that have benefited from subsidies (WTO Agreement on Subsidies and Countervailing measures).

 

Similarly to what the US vs. Canada softwoodlumber case highlighted, could we speak here of the "passing-through" of, say, a South Korean subsidy (for the construction of the vessel), to the NZ company operating the charter arrangement and exporting the product to a third country? Should counter-vailing measures be adopted, against whom should they be directed? Againts NZ or against South Korea?

Comments and views are welcome!

Here is the link to the page of the Fisheries Ministry's website with information on the inquiry:

http://www.fish.govt.nz/en-nz/Consultations/Ministerial+Inquiry+into+Foreign+Charter+Vessels/default.htm


And here the link to the "Nautical Blog" with a post on this issue (chartering in New Zealand):


http://nauticallog.blogspot.com/2011/04/holier-than-thou.html

EU: Commissioner Damanaki on the new EU's fisheries fund

Ms Damanaki European Commissioner, in charge of Fisheries and Maritime Affairs, lifted a corner of the veil on the Commission's proposal for a future EU's fisheries fund. This happened during a hearing at the UK's Parliament House of Commons Select Committee on Envrionment, Food and Rural Affairs.

Here is the link to the UK's Parliament website with the video of the hearing. The discussion on the new fisheries fund takes place at the end of the hearing (from 12h22 on):

http://www.parliamentlive.tv/Main/Player.aspx?meetingId=9264

MALDIVES: governement sued because of non-disbursement of fisheries subsidies

When looking in the Internet for news on fisheries subsidies I stumbled upon an article published in the online edition of the "Minivan News".

The title of the aritcle is "DQP sues Finance Ministry for non-payment of fisheries subsidies". According to the article the "Dhivehi Qaumee Party (DQP) is withholding the budget allocated for fuel subsidies for fishermen".

Here is the link to the article:

http://minivannews.com/politics/dqp-sues-finance-ministry-for-non-payment-of-fisheries-subsidies-26914

NZ: interesting presentation by governement official on WTO negotiations

Here is the link to a presentation by a New Zealand's governement official on the WTO negotiations on fisheries subsidies.

http://www.seafoodindustry.co.nz/f1690,84125/84125_Haike_Manning_WTO_Fisheries_Subsidies.pdf

ALGERIA: minimum salary for fishermen for "biological stops"

Algeria will be paying subsidies for fishermen who have to stop fishing activities to let fish reproduce. The subsidy cosnsists of a minimum guaranteed monthly salary of 18,000 Algerian Dinar (250 USD).

Here is the link to an article (in French) published by AFP - Romandie News

http://www.romandie.com/news/n/_Un_salaire_minimum_aux_pecheurs_algeriens_afin_de_proteger_les_popissons051020111510.asp

USA: subsidies for the shrimp processing industry in Louisiana

According to the press a new shrimp processing facility will open in Baton Rouge, Louisiana.

In some of the articles I found on the Internet it is mentioned that   "the state [Louisiana] is providing a $1.09 million loan guaranty to Baton RougeShrimp, and the company is expected to utilize the state’s Enterprise Zone and Industrial Tax Exemption programs."

Here are the links to the articles:


http://goerie.com/apps/pbcs.dll/article?AID=/20110926/APN/1109260795

http://www.southerngovernors.org/articleview.aspx?articleid=7338

Congressman Faleomavaega mentions "U.S. tax payer subsidising right to fish"

Here is a video posted by Greenpeace USA where Congressman Eni F.H. Faleomavaega of American Samoa welcomes the Greenpeace ship"Esperanza".

In the video he makes a reference the access agreement that the US has with some Pacific nations and to the fact that some fishing companies are benefiting from "U.S. tax payer subsidised right to fish".

INDIA: subsidies for fuel and out of board motors

Public authorities in India, (central government and States)  have an history of supporting the fisheries sector (see my post tagged “India”).  India has also been very adamant at the WTO negotiations on fisheries subsidies in defending the possibility by governments to give subsidies to fisheries, especially in developing countries. This is confirmed by the written proposals that India has submitted to the WTO.

Recently the State of Goa has published an order for the implementation/continuation of the of State Sector Scheme “Financial Assistance towards subsidy for purchase of Kerosene for Out Board Motor Operators”.

I copy here a couple of extracts of the order.

For fuel, fishermen eligible for the aid will receive a: 

“lump sum subsidy of Rs. 30,000/- (Rupees Thirty thousand only) per year on a minimum consumption of 2000 litres of Kerosene.” 

For Out Board Motors: 

“The beneficiary will be entitled for financial assistance to the extent of 50% of the cost limited to Rs. 40,000/- (Rupees Forty thousand only) per O.B.M. of 8-10 HP to be shared by the State and the Central Government from the year 2011-12 of which the Central share shall be 50% of the eligible subsidy limited to Rs. 15,000/- (Rupees Fifteen thousand only) and balance of Rs. 25,000/- shall be borne by the State Government. The bank will finance the loan amount to the extent of the cost of the out board motor hypotheticating the canoe of the applicant and considering the cost of the canoe as margin money and also taking into account of Rs. 40,000/- (Rupees Forty thousand only) as a Government subsidy. Motor purchased with self finance are also eligible for subsidy at the above rate.”

Readers will note that the subsidy for the Out board motors receive financing from the Indian Central Government.

Here is a link to an article by the “Times of India” on this subsidy.

http://articles.timesofindia.indiatimes.com/2011-08-07/goa/29861085_1_kerosene-new-scheme-subsidy

And here a link to the order published by the Government of the Indian State of Goa. 

http://www.goaprintingpress.gov.in/downloads/1112/1112-14-SI-OG.pdf