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

OMAN: subsidies for the purchase of fishing vessels, engines, gear, fish processing equipment, etc

A recent press release from Oman's Ministry of Agriculture and Fisheries (17 May 2011) announced a new regulation which provides for a whole array of subsidies for the artisanal fishing sector.

According to the press release the new regulation:

"...includes subsidizing the artisan fishing sector for purchasing fishing boats, engines, instruments and equipment used in the artisan fishing boats, as well as the artisan fishing accessories, in addition to the subsidy allocated for purchasing the long fishing threads, electric cranes used in the artisan fishing boats and GPS and other equipment."

and

"also included the coastal fishing subsidy for purchasing and possessing fishing equipment, quality control devices, subsidizing the fishing industries, such as, the fish drying and preparation equipment whether by salting, smoking or storing."

Here is the link to this press release:

http://www.omannews.gov.om/ona/english/newsDetails_inc.jsp?newsID=51651

 Another press, of 18 May 2011, article of ONA (Oman News Agency) gives a few figures of the Omani fishing sector

"The fisheries sector is one of the major contributors to non-oil/gas generated income, but it is seen as having an even much greater potential with Omani fishing waters being regarded as among the richest in the world. The sector and associated industry plays a vital role in the economy, as well as in the livelihoods of tens-of-thousands of fishermen and employees in the fisheries industry. The sector’s huge growth can be directly related to its importance and the confidence placed in it by public and private sector investors. It generated substantial income with figures for 2009, showing that over 158,000 tonnes of fish with a value of RO104 million were landed, a growth of four per cent compared to 2008. In 2010, local authorities have worked hard to ensure that specified rules and regulations are adhered to by fishermen."

And here is the link to the above press article:

http://www.timesofoman.com/innercat.asp?detail=45062&rand=

WTO : defining "small scale" or artisanal fisheries – a chimera and a contentious issue ?

In my previous post I reproduced the questions that the Chair of the negotiating group on Rules has put to WTO Delegates on the treatment that should be given to developing countries as regards new rules on fisheries subsidies.

In one of these questions, namely the second one, the Chair asks whether:

“For developing Members other than LDCs, is it appropriate and consistent with the mandate that S&D exceptions be broadest and subject to the fewest conditions for subsidies to the smallest-scale, closest to shore, and least commercial fishing operations, with exceptions becoming progressively narrower and subject to more conditions as the subsidized operations become larger-scale, further from shore, and more commercial?”

The Chair of the negotiating group, in his first draft text (WTO document TN/RL/W/213 of 23 November 2007), did already provide an answer to this question. Actually the draft agreement, taking as basis different submissions (proposals) from WTO Members, contains in Article III a number of exceptions to subsidy prohibitions for developing countries. This Article also includes a “definition” of artisanal or small-scale fisheries.

As mentioned in the title of the post, trying to find a definition of “small scale fisheries” that would satisfy everybody seems an unrealisable dream. In addition to being an unrealisable dream the quest for such a unique definition can be become a very contentious issue, especially if the possibility of giving subsidies to the fishing industry depends on such definition.

Readers will find hereunder a short bibliography on the subject of defining artisanal or small-scale fisheries:

[Berkes and Etc2002]BERKES, F. AND ETC 2002. Managing Small-Scale Fisheries: Alternative Directions and Methods. International Development Research Centre, Canada.

[Charles1989]CHARLES, A. T. 1989. Small-scale fisheries in North America: research perspectives. In La Recherche face à la pêche artisanale, Symp. Int. ORSTOM-IFREMER, Montpellier, France, pp. 3–7.

[Hauck2008]HAUCK, M. 2008. Rethinking small-scale fisheries compliance. Marine Policy 32:635–642.

[Pitcher2001]PITCHER, T. 2001. Rapfish: a rapid appraisal technique to evaluate the sustainability status of fisheries. Fisheries Research 49:255–270.

[Salas et al.2007]SALAS, S., CHUENPAGDEE, R., SEIJO, J. C., AND CHARLES, A. 2007. Challenges in the assessment and management of small-scale fisheries in Latin America and the Caribbean. Fisheries Research 87:5–16.

[Schorr2005]SCHORR, D. 2005. Artisanal fishing: Promoting poverty reduction and community development through new WTO rules on fisheries subsidies. Technical report, UNEP.

[Schorr2009]SCHORR, D. 2009. The WTO fishery subsidies negotiations: Update and introductory briefing for new delegates (fisheries subsidies and the WTO: key issues).

[Schumann and Macinko2007]SCHUMANN, S. AND MACINKO, S. 2007. Subsistence in coastal fisheries policy: What’s in a word? Marine Policy 31:706–718.

[Secretariat2005]SECRETARIAT, W. T. O. 2005. Definitions related to artisanal, small-scale and subsistence fishing (TN/RL/W/197 of 24/11/05).

[Sumaila et al.2001]SUMAILA, U. R., LIU, Y., AND TYEDMERS, P. 2001. Small versus large-scale fishing operations in the North Atlantic. Fisheries Centre Research Reports 9:28.

[Therkildsen2007]THERKILDSEN, N. 2007. Small- versus large-scale fishing operations in New England, USA. Fisheries Research 83:285–296.

WTO: Special and Differential Treatment for Developing Countries (SD&T)

I copy hereunder the questions that the Chair of the WTO's Negotiating Group on Rules, Ambassador Guillermo Valles Galmes of Uruguay, did put to Delegations on whether developing countries should be exempted from new rules (especially prohibitions) on fisheries subsidies.

The questions are part of the very long questionnaire (titled “FISHERIES SUBSIDIES – ROADMAP FOR DISCUSSIONS) that Mr Valles submitted to WTO Members on 19 December 2008, together with the new negotiating texts on anti-dumping and horizontal subsidies disciplines. The WTO reference (or "symbol") is TN/RL/W/236:

15. Participants are asked to reflect in detail on the following questions:

(a) Do participants support an essentially full carve-out from the disciplines for LDCs?

(b) For developing Members other than LDCs, is it appropriate and consistent with the mandate that S&D exceptions be broadest and subject to the fewest conditions for subsidies to the smallest-scale, closest to shore, and least commercial fishing operations, with exceptions becoming progressively narrower and subject to more conditions as the subsidized operations become larger-scale, further from shore, and more commercial?

• (i) If so, how could such different types, scales and/or geographic areas of operations be defined and differentiated?
• (ii) How would the resulting categories relate to the mandate to discipline subsidies that contribute to overcapacity or overfishing?
• (iii) What types of conditionalities would apply, to which categories?

(c) Are there other bases on which fisheries operations of developing Members could be categorized for the purpose of S&D exceptions, which would provide the necessary flexibility to developing Members without contributing to overcapacity or overfishing?

(d) If no other dividing lines among types, scales and/or geographic areas of operations can be identified, would all non-LDC developing Members receive the same S&D treatment in respect of their fisheries subsidies to all types, scales and geographic areas of fisheries operations?

• (i) In such a situation, what should the exceptions be, and to what conditions should they be subject?
• (ii) If all non-LDC developing Members were fully exempted from eventual prohibitions on, for example, subsidies for vessel construction/modification, and operating costs, how could it be ensured that such subsidies would not contribute to overcapacity or overfishing?
• (iii) On what other basis could S&D treatment be structured?

(e) Should some or all exemptions for developing Members be conditional on fisheries management?

• (i) If so, which exemptions should be subject to such conditionality?
• (ii) What sort of fisheries management conditionalities should these be and how could their effectiveness at preventing overcapacity and overfishing be ensured? Would self-certification that management was effective be sufficient?

(f) If S&D exceptions were not conditioned on fisheries management, what other conditions should there be, if any, and how would those operate to prevent the subsidies from contributing to overcapacity or overfishing?

(g) What is the appropriate role for technical assistance for developing Members to implement new disciplines?

• (i) How can effective technical assistance for the implementation of management conditionalities be ensured while not indirectly making more resources available to subsidize?
• (ii) How can developing Members' needs and donor Member's capabilities be reconciled in a way that contributes most efficiently to fulfilling the mandate?
  

Comments and/or answers to the above questions are very much welcome !!

Here is the official WTO announcement of the release of the Chair's document:

http://www.wto.org/english/news_e/news08_e/rules_19dec08_e.htm

And here is the link to an article on the ICTSD's website commenting the "Roadmap":

http://ictsd.net/i/news/biores/38538/

VIETNAM: fuel subsidies not enough

"Central region fishermen forced to sell boats due to falling prices "

This is the title of an article published on 8 July 2009 in the website of Vietnam News Agency.

According to the article:

¨[...] the financial assistance has not been enough to compensate for the soaring diesel price. It now costs fishermen over VND100 million ($5,620) for a single fishing trip, and fisherman go on about four trips per year, according to Anh. The Government’s diesel assistance per year for one boat is only VND30 million ($1,690)."

Here is the link to the article:

http://vietnamnews.vnagency.com.vn/showarticle.php?num=02ECO080709

WTO - UNEP - WWF: "artisanal" versus "industrial" fisheries?

The debate on whether different rules should apply to the artisanal and to the so called « industrial » fisheries respectively is one of the major topics at the ongoing WTO negotiations on fisheries subsidies.

Here is the link to an article (titled "Who’s Harming Fish Stocks? Trawlers or Artisanal Fishers?" by Isolda Agazzi) with the views of some of the actors involved, directly or indirectly, in these negotiations.

http://www.ipsnews.net/africa/nota.asp?idnews=47500

My conclusion is that views still differ very much.

INDIA: less fuel subsidies for fishermen in the State of Orissa

Recent news in the Indian press echo the resistance from fishermen in the State of Orissa to cuts in subsidies to fuel.

According to the “Times of India” fishermen using motorised vessels received in the past a subsidy of Rs 1.5 (USD 0.03) per litre. The authorities want now to remove this general subsidy to motorised vessels and replace the scheme with a Rs 3 (USD 0.06) per litre but only for fishermen under the poverty line.

The Orissa Traditional Fish Workers Union (OTFWU) has voiced its opposition to the measure because, as many poor fishermen do not have a motorised vessel, very few people will benefit from the new scheme.

Here is the link to article from the “Times of India” with the above news:

http://timesofindia.indiatimes.com/Bhubaneswar/Fishermen-oppose-Centres-cut-in-diesel-subsidy/articleshow/4664099.cms

VENEZUELA: President Chavez and subsidies to fisheries

President Chavez has expressed his dissatisfaction about the way the some in the fishing industry (fishermen, processors) are behaving after having received subsidies from the government.

In a statement on 28 May 2009, Mr. Chávez said the following (translated from Spanish):

“We are providing loans to artisanal fishermen, we have banned deep sea trawling, we have created a financial fund for fisheries. And now, to whom are selling fishermen their produce? There you see the real face of capitalism, capitalism is unforgiving, capitalism is a poison. And we all get hooked on it. “

It seems that what lead Mr. Chavez to make this scathing statement was the alleged disappearance of sardines at “La Gaviota”, a fish processing company in Cumaná (State of Sucre).

So, it seems that fishermen receiving help from the government are bound to deliver their catch to “La Gaviota”. By the way, this company was nationalised on 1 May 2009 (Labour’s day).

This brings to my mind a similar situation in Norway, where fishermen are bound to land catches within a certain geographical area, if they want to get catch quotas in that particular area. It is the so called “leveringsplikt”. I will come back on this “policy tool” in a separate post.

Here is a link to an article from the “Radio Nacional de Venezuela”:

http://www.rnv.gov.ve/noticias/index.php?act=ST&f=4&t=98550

And here is a link to a video on the nationalization of the company:

INDIA: fuel subsidies cancelled in Gurajat

Gujarat government’s decided last mont to cancel diesel subsidies for over 20,000 fishing boats in the state, which have engines of more than 74 horsepower.

According to the secretary of Gujarat's National Fisheries Federation, Manish Lodhari, the decision will affect more than 20,000 boat owners in the state.

The Deputy Director of Fisheries of Gujarat's goverment, Riddish Pathak, said that more than 2,000 boats which have engine of less than 74 horsepower would not be affected by this decision.

He also said that “Owners of these bigger boats are affluent fishermen and can afford unsubsidised diesel” (boats with engines of over 74 horsepower had been given 24,000 litres of subsidised diesel).

Here is the link to a press article announcing this:

http://www.indianexpress.com/news/fishworkers-forum-threatens-strike-over-die/464705/

CANADA: paper of 1998 with some "prophecies" on WTO negotiations on fisheries subsidies

Scientific and academic research on fisheries subsidies is one of the areas that are of special relevance for the ongoing negotiations on fisheries subsidies at the WTO. Literature on that subject is not exuberantly abundant but with the inclusion of these subsidies under the "Rules" chapter of the WTO Doha negotiations has contributed to the their attractiveness as object of academic and scientific work. Though, there was life before the launch of the Doha Round in November 2001.

Here is an example of work of academia on fisheries subsidies prior to 2001. It concerns an article published by Gorazd Ruseski in the Journal of Environmental Economics and Management (Volume 36, Issue 1, July 1998) titled "International Fish Wars: The Strategic Roles for Fleet Licensing and Effort Subsidies" . I quote here from the conclusions of the article:

The effort subsidy and fleet licensing models developed in this article depend on the credibility of the strategic choices made by countries. Widespread evidence of excessive subsidization and licensing of large fleets makes it clear that these commitments are credible indeed. However, as discussed in a report prepared by the New Zealand Fishing Industry Board [20, p. 41], it is relatively much easier to consider subsidies as a strategic policy used to help a fishing industry, as opposed to other industries, because “The call for subsidies to the fishing community in North America (much of which is seen as a form of ‘disaster relief’) seems to engender an emotional response within the population and to be acceptable to both state and federal politicians.” Also, Shrank [22] note that many countries are unwilling to reduce the sizes of their fishing fleets, because fisheries are often thought of as an “employer of last resort” in many small coastal communities that depend on them.

20. Seafood Trade Access Study, N. Z. FIB, Wellington (1996).
22. W. E. Shrank, N. Roy, R. Ommer and B. Skoda, An inshore fishery: a commercially viable industry or an employer of last resort?. Ocean Develop. Internat. Law 23 (1992), pp. 335–367.

This paragraph is remarkable as it contains a number of elements directly pointing to what is now happening in the WTO negotiations:

1. The reference to New Zealand's industry report on "Seafood Trade Access" of 1996. Note that it is as early as 1997 that New Zealand started making submissions at the WTO on fisheries subsidies.

2. The notion of "disaster relief", which is being used (following a submission by the U.S.) in the draft negotiating text issued by the Chair in November 2007.

3. The quotation from a paper from Shrank in which he notes that many governments consider fisheries as an “employer of last resort” in many small coastal communities that depend on them. This seems to reverberate in the negotiations when discussing the need for more flexible disciplines for "artisanal - samll-scale - subsistance" fisheries.

As a final comment I would like to underline that Gorazd Ruseski is one of the offcials that testified in one of the hearings at the Canadian Parliament on the ongoing WTO negotiations on fisheries subsidies.

INDIA: subsidies to artisanal fisheries (2)

Plowing through news items on fisheries subsidies I came across an article published in “The Times of India” on 5 April 2009 titled 'Sea could become watery grave for fishing'.

The article is about the effects that an uncontrolled growth of the fishing can have on the sustainability of the industry. I quote a few extracts:

Scientists warn that the fishing industry in India faces a crisis, caused by overfishing. Around 4,000 trawlers prowl the coast off Maharashtra, their metallic jaws scraping the bottom of the seabed and destroying marine habitat.

"Costs are spiralling but the returns continue to diminish,'' says Moreshwar Patil of the Maharashtra Machhimar Kruti Samiti whose boats sail from Cuffe Parade. "Despite the diesel subsidy we receive, each week-long fishing trip can cost a large trawler up to Rs 1 lakh.'' The Kolis now venture further out and remain in mid-sea for a much longer period to catch a fraction of the fish they did in the 80s.

And the article ends as follows:

"Cheap diesel and loans to purchase trawlers only encourage more people to exploit the wealth of the sea. Subsidies may seem attractive in the short term but they could empty the ocean of fish,''

Here is the link to the article:
http://timesofindia.indiatimes.com/Mumbai/Sea-could-become-watery-grave-for-fishing/articleshow/4363329.cms

INDIA: artisanal fisheries and subsidies

As those familiar with the ongoing WTO fisheries subsidies negotiations know “artisanal fisheries” are one of the most contentious and debated issues in the negotiations.

Some WTO Members have been very vocal in asking for broad exemptions to the so called artisanal fisheries. In particular India (with the support of China and Indonesia) have been making submissions to ensure that what they consider as “artisanal” or small-scale or subsistence fisheries is not subject to any new rule on subsidies for the fisheries sector.

India’s submission (TN/RL/W/203 of 6 March 2006) sets out what artisanal fisheries should cover:

“Based on the broad elements that have been advanced by international rganizations such as FAO, the World Bank, Asian Development Bank and ICCAT and Members’ submissions thus far, India believes that the common characteristics for developing an understanding of small-scale, artisanal fisheries may be based on a recognition of the following:

• They are traditional fisheries involving fishing households or small groups of fishworkers.


• The fishing vessel could vary from gleaning or a one-man canoe to up to 20 m, including trawlers, seiners or long-liners.


• They use relatively small fishing vessels, which may be non-motorized or use small out board engines (say up to 10 bhp).


• The fishing is confined to close to the shoreline.


• Use of fishing gear such as beach seine and gill nets, hook and line, and traps.


• Use of labour-intensive technologies.


• Artisanal fisheries can be both subsistence or commercial, providing for local consumption or export as well.”

At the same time other WTO Members insist very much on the fact that “no blank check” should be given to developing countries in the name of “artisanal fisheries”. This has been was clearly stated by a number of countries, developed and developing, throughout the negotiations. As an illustration I quote from a submission by Australia, New Zealand and the U.S. tabled as a reaction to another submission by India, China and Indonesia.

“Developing countries have seen first hand how uncontrolled fishing in their coastal waters can lead to stock depletion and threats to livelihoods, and how subsidies have distorted production and trade patterns. Thus, there is general consensus that there should be no "blank check" to develop fisheries in a way that undermines their long-term sustainability.”

In another submission (TN/RL/W/234 of 17 July 2008) by Argentina, Chile, Colombia,Ecuador, Mexico and Peru also stated that flexibilites for developing countries in the context of Specal and Differential Treatment are not tantamount to a "blank check":

In Hong Kong, our Ministers recognized the importance of the fisheries sector for development priorities, poverty reduction, and livelihood and food security concerns. If well managed, fishing can continue to be a significant source of food and income for a large part of the population in developing countries, as well as an instrument for reorientation from less productive activities. That is why a central element of future disciplines will be the flexibilities given to developing countries to support fishing activities. However, scientific information on the status of marine resources and countries' own experiences in the exploitation of fishery resources show that such flexibility cannot be a blank cheque.

MALDIVES: fuel subsidies package for fishermen in 2008

Last year the Maldives' Government Ministry of Fisheries launched a Maldives Rufiyaa (Rf.) 100 million (USD 7.8 million) fuel subsidy program aimed at those vessels registered with the ministry.

According to the fisheries ministry a sum of Rf.300, 000 (USD 23,400) are given out as fuel subsidy to fishing vessels of 85 feet in length and more. Vessels between 65 feet and 84 feet in length are given Rf.200,000 (USD 15,600) while vessels between 64 and 45 feet are given Rf.70,000 (USD 5,400). For vessels less than 45 feet in length a fuel subsidy of Rf.20,000 (USD 1,500) is given. According to the fiseries ministry some 1082 fishing vessels were registered in June 2008.

Government officials said that the programme had not resulted in an increase in fishing capacity, rather the usual number of vessels went out for fishing.

Hereunder is the link to a press article on the above subsidy programme:

http://www.maldiveschronicle.com/fishermen-not-increasing-despite-fuel-subsidies/

VENEZUELA: subsidies from government controlled banks

Insopesca or "Instituto Socialista de la Pesca y Acuiculture" (the Socialist Institute of Fishing and Aquiculture) announced in January 2009 that, during 2008, it got the support of public banking to grant financing for the fishing industry for the order of the Bolivar 900 million (USD 128 million).

These resources were intended for purchase of boats, engines, fishing gear, aquaculture and transport of fish.

According to Insopesca, these measures where taken in the context of the prohibition of the trawl fishing (for the protection of the ecosystem) and the "rescue" of the artisanal fishing sector, more in particular of "Programa Integral de Desarrollo Anual" or Pida (Integral Annual Development Programme).

The implementation of this programme resulted in the approval of credits by public banking for the delivery of more than 1.200 motors, 604 boats, 97 transport units, 1.230 units of fishing gear and the allocation of 284 hectares for the aquaculture.

The resources were distributed in their majority in methods of group credits and some few of an individual type.

The official press release (in Spanish) can be found here:

http://www.abn.info.ve/noticia.php?articulo=166123&lee=3

Malaysia: changes in fuel subsidies for fishermen

In Malaysia the government provides fishermen with subsidised fuel.

The government decided, effective 5 June 2008, to "streamline" the price of diesel (for fishermen and vessel owners) at RM1.43 (US$ 0.41) per litre. Before the price of diesel for fishermen was RM1 (US$ 0.30) per litre and for vessel owners buy the proce was RM1.20 per litre.

Though the government provided some relief to the above categories of users and agreed to pay in cash a portion of the difference in the old and new prices to fishermen and vessel owners, as follows:

- Payment of RM200 (US$ 58) cash monthly to every owner and crew of Malaysian-owned vessels registered with the Fisheries Department.
- Payment of incentives to vessel owners at the rate of 10 sen per kg of fish landed by approved fishing vessels at fish landing centres in the country.

The payments are managed by the Malaysian Fisheries Development Authority.

Thereafter, effective Dec 16, the price of subsidised diesel and petrol for fishermen was reduced reduced from RM1.43 per litre to RM1.30 per litre. Accordng to the goverment with new price, the government would have to bear additional cost of about RM197 million (US$ 57 million) nnually.

At the same time the government maintains the RM200 monthly cost of living allowance for fishing vessel operators and fishermen on licensed vessels as with the incentive of 10 sen per kg given for the catch landed.

The reduction in price of subsidised diesel and petrol would mean savings in fuel cost of RM260-RM4,160 monthly depending on the fishing zone and vessel size."Traditional net vessels operating in Zone A (up to 5 nautical miles) will save RM260 monthly, dragnet vessels in Zone B (5-12 nautical miles) will save RM2,600 monthly."Dragnet vessels in Zone C (12-30 nautical miles) will save RM3,120 monthly and dragnet vessels in Zone C2 (over 30 nautical miles) will save RM4,160 monthly.

Furthermore the authorities have on 3 November 2008 increased the subsidised diesel and petrol quota from 106 million litre monthly to 126 million litre to accommodate the issuance of 15,900 new fishing vessel licences by the Fisheries Department."Following requests from dragnet vessel operators, the government also approved additional quota of 4,000 litres monthly to vessels fishing in Zone C dan C2."He said the price reduction and additional diesel and petrol quota should give fishermen higher returns due to the costs saved.

Here are the links to the official press releases:

http://www.pmo.gov.my/?menu=newslist&news_id=113&news_cat=13&page=1731&sort_year=&sort_month=

http://www.bernama.com/bernama/v5/newsgeneral.php?id=378070

INDIA: fuel subsidies for fishermen

I copy here a recent release from the Press Information Bureau, Government of India.

Wednesday, December 17, 2008, 13:37 IST Ministry of Finance

SUBSIDY ON FISHING BOATS

LOK SABHA

The Ministry of Agriculture, Department of Animal Husbandry Dairying and Fisheries has been implementing a Centrally Sponsored Scheme (CSS) on Development of Marine Fisheries, Infrastructure and Post Harvest Operations. Under the component on Motorisation of Traditional Craft of the CSS, subsidy to the tune of Rs. 20,000 per traditional boat for conversion into motorised boat has been provided. This subsidy is shared equally by Government of India and the respective State Governments. In case of Union Territories(UTs), the entire cost of subsidy is borne by Government of India. The subsidy is extended to the Out Board engines from 8HP to 10HP.

Engines ranging below 8HP have not been covered for subsidy under this scheme , as such low capacity engines may not be efficient to go for fishing in deeper waters. Under the component on Fishermen Development Rebate on High Speed Diesel (HSD) oil, a rebate/subsidy of Rs. 1.50 per litre on HSD consumed by the mechanised fishing vessels below 20 meter Over All Length (OAL) is provided. Rebate is shared on 80:20 basis between Centre and State Governments. In case of the States where Sales Tax is exempted by them and in UTs, the entire subsidy amount is borne by the Government of India.

This information was given by Shri Pawan Kumar Bansal, Minister of State for Finance in reply to a question raised by Shri A.V. Bellarmin in Lok Sabha today.

Here is the link to the press release on the government's website.

http://pib.nic.in/release/release.asp?relid=45755

VIETNAM: Overfished Vietnam Subsidizes More Fishing Boats

I have taken over the above title from an article from the "Voice of America" website. According to this article there are 100.000 fishing boats in Vietnam.

In May 2008 Deputy Agriculture Minister Nguyen Van Thang told Vietnamese fishermen that the government will lend them a hand. Thang says any fisherman who buys a new boat with an engine of 90 horsepower or more will get a subsidy of about $3,500 a year.

Here is the link to the article:

http://www.voanews.com/english/archive/2008-05/2008-05-08-voa15.cfm?CFID=33783126&CFTOKEN=46725218