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Conch quarrel, Fishing interests and Government at odds over quotas, tax

Published:Sunday | June 13, 2010 | 12:00 AM
Conch shell with a just-removed animal. - Photo by Rosemary Parkinson

The country's nine holders of conch-harvesting licences are at odds with the Government over what they say has been the failure of the authorities to provide quotas to begin harvesting for the current open season, which runs from January to July, but with the possibility of an earlier effective closing date in the event of a hurricane before July 31. At the same time, the conch-fishing interests are up in arms over the Government's decision earlier this year to increase by 33 per cent its tax on their catch from US$0.75 to US$1.00 per pound.

The licensees say despite having submitted all licensing requirements before the March 31 deadline, they have been unable to start harvesting, as they still have not been told what their respective quotas are. They are demanding, too, that the Ministry of Agriculture and Fisheries (MoAF) roll back the levy increase.

But the fisheries ministry is unmoved on the rollback call, with its chief technical director, Dr Marc Panton, declaring that there can be no rollback in the levy hike which is legislated and used to finance the sustainable development of the industry in which the licensees make their living.

Harvesting quotas

Panton told Sunday Business last week that the fishing interests would have received their conch- harvesting quotas by weekend and that they should be in the waters within two weeks.

Industry sources say they understand that the quota delay stems from difficulties the ministry had finding a valuator and persons to sit on the licensing committee.

The agriculture ministry did not immediately comment on reasons for the delay, and its assurances have not put to rest the concerns those who make a living from the sector continue to raise.

A manager with Newport Fish and Meats Limited, who asked not to be identified, complained that industry members were receiving only US$6 per pound for their conch catch, and not the US$9 quoted by the ministry. The individual also pointed to the high operating costs, and a rigorous licensing process, which includes licences for workers, boats, processing facilities, as well as European Union certification.

Martinique, Guadeloupe and France are the chief markets for Jamaican conch.

The late start of harvesting, the operator said, will result in losses, as equipment remains idle. And if the season is extended, it has been suggested that there could be a clash with the lobster season.

"Every year, the season is supposed to start in January and we keep losing money (from repeated late starts)," the harvester said.

The manager added that conch prices last year were just under US$6 and producers were expecting only a few cents improvement this year.

"I suspect that what the ministry is doing is calling price points in Europe, but they do not understand that retailers there add a mark-up to our sale price," the conch exporter said.

Chief Executive Officer of DY Sea Fishing, Frank Cox, has underscored the difficulties operators in the business are having with regard to costs and revenue, pointing out that input costs are high, coming out at 50 per cent of income, or US$3 per pound. "We are having a problem with the cess," he added."The market cannot bear it."

The ministry is expecting to collect some $80 million from the levy, which was increased in May.

Cox said he wrote to the Fisheries Division of the ministry, suggesting instead a US$0.05 increase to US$0.80 per pound, and the addition of two months to this year's harvesting season, pushing it back to the end of September.

But the MoAF's technical director is not optimistic that the conch season can be extended significantly. He said the Fisheries Division needs an adequate window this year in which to complete a Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES)-mandated survey.

Population survey

"We will be asking them to hurry as much as possible, (and) our goal is to hasten the fishing so that we can complete the population survey."

Meanwhile, Cox is of the view that the Government must cut the bureaucracy involved in the licensing process.

Each year, the process involves the ministry's aquaculture committee determining the total national allowable catch, a calculation done based on data from the previous year's harvest.

The licensing process also involves the training of harvesters and processing plant workers.

avia.collinder@gleanerjm.com