NATIONAL ASSEMBLY
28 November 2006
FISHERMEN INVESTMENT TRUST (FIT) BILL
INTERVENTION OF DR. THE HON. ARVIN BOOLELL
2ND READING
Mr. Speaker Sir,
1.
I beg to move that the Fishermen Investment Trust Bill (No.
XXIX of 2006) be read a Second time.
2.
Mr. Speaker Sir, we are a caring Government which is
determined on bringing social justice in the country. This has always
been the philosophy of the Labour Party since its creation and it is the
policy of the Social Alliance today.
3.
The setting up of the Fishermen Investment Trust (FIT) is one
more example of the close attention paid by Government to the
uplifting of the downtrodden social groups. The FIT is designed to give
a boost to the individual fishermen and to the fishing community as a
whole. It will give them the opportunity to stand on their own feet, to
be proud of their work and to benefit from their labour.
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Mr. Speaker Sir,
4.
Time
has
come
for
fishermen
to
benefit
fully
from
the
developments that are happening in the fisheries sector. The FIT will
play an important role for the fishing community, and will involve it in
its management, by giving it the means to participate in its activities,
thus developing their self-confidence.
Mr. Speaker Sir,
5.
Before I present the Bill, allow me at the outset to give you an
overview of the fisheries sector in Mauritius.
Fishing is one of our
main resources, mainly untapped until now. For a long time, fishermen
have been fishing in the lagoon, which is being depleted and the
reasons and multifactorial. However, the fishing community is now in a
difficult situation because there has never been any change in policy.
For the first time in the history of the fisheries sector in Mauritius,
there is new policy to tap the fishing resources outside the lagoon, in
our Exclusive Economic Zone (EEZ) for the benefit of the fishing
community and to give better prospects not only to the fishing
community, but also to the individual fishermen, their families, and to
ensure a better future to their children.
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Mr. Speaker Sir,
6.
Fish is an important source of protein in the diet of the
population and the annual per capita consumption of fish stands at 20
kg. The fisheries sector employs some 12,000 persons and the fish
processing industry contributed some 5 billion rupees whilst fishing
vessels calling in the port generated some 3 billion rupees to the
economy in 2005. The local fish production amounts to some 700
million rupees. The balance of trade in the fisheries sector is positive
and stood at 581 million rupees in 2005.
Mr. Speaker Sir,
7.
Our fisheries policy is based on the rationale that all natural
marine living resources of Mauritius, as well as the environment in
which they exist, are a national asset and the heritage of all its people,
and should be developed and managed for the benefit of present and
future generations of the country as a whole.
However, the
appropriate incentives should be provided in support of this policy. In
this context, Government is promoting the development of our marine
resources through a mix of financial, fiscal and institutional regimes to
encourage entrepreneurship in the sector whilst keeping in view the
proper management of the fisheries resources.
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8.
A Conference was thus organized from 2 to 3 March 2006, in
Mauritius to give visibility to our seafood industry to international
players.
As at date, investment in the seafood sector has reached
approximately Rs 3 billion. The creation of an additional 3,000 jobs in
the medium term in the seafood sector is thus foreseeable.
9.
The seafood hub has developed processing and canning capacity
in excess of 100,000 tonnes and is presently engaged in the following
major fish processing activities: filleting, packaging, canning, vacuum
packing and production for ready-to-eat meals.
In this respect,
Government along with the Board of Investment and my Ministry are
actively promoting Mauritius as an ideal destination for value addition
in the seafood industry.
10.
The seafood industry has a dedicated One-Stop-Shop serviced
by Government within the port which ensures prompt import and
export clearances. Services at the One Stop Shop are provided on
Saturdays, Sundays and public holidays as well. The Fisheries Division
of my Ministry in collaboration with the BOI is presently finalizing the
modalities for the setting up of an electronic platform in a single web
portal to further reduce the time for the delivery of clearances.
My
Ministry has also approached the Ministry of Industry, Small and
Medium Enterprises, Commerce and Cooperatives to amend the list of
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controlled commodities so as to allow my Ministry to be the sole body
to issue export permits for fish and fish products.
As regards enhancement of the infrastructure for the seafood hub, I
am pleased to inform the House that the Greek Authorities have
agreed to provide financial assistance for the construction of a fish
auctioning facility in Port Louis. Funds to the tune of Rs 25 million will
be released shortly. My Ministry has taken up steps to ensure that fish
and fish products exported to our main market namely the EU, are in
compliance with the regulations and the directives thereof.
11.
A report on the study of an aquaculture master plan is being
awaited in due course.
Preliminary findings reveal a potential for the
production of 10,000 tonnes of fish at six potential sites around the
island. This would give a further impetus to the strategic development
of the fisheries sector.
12.
On the other hand, an acoustic survey for resource potential has
been effected from 19 October to 2 November 2006 on the slopes of
the St. Brandon area up to the South Nazareth Bank under technical
assistance from FAO. The survey has revealed a new fishing ground
where a commercial fishery can be developed for the production of
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deep water snappers like sacrechien and vielle which are high-valued
species on both the local and international markets.
13.
The European Commission (EC) funded a study on the fisheries
Sector Policy of Mauritius. This study will serve as a basis for
negotiation
scheduled
for
February
2007
for
a
new
Fisheries
Partnership Agreement with the EC.
14.
The Kuwaiti Authorities have agreed to finance a feasibility study
for the development of a long line fishery for Mauritius and the
contract for the study would be allocated shortly.
15.
Mauritius has since 2005 set up a Vessel Monitoring System
(VMS), at the Albion Fisheries Research Centre for the monitoring of
the fishing activities of all licensed fishing vessels. Mauritius is actively
participating in the Regional Pilot Project for Monitoring, Control and
Surveillance being implemented through the Indian Ocean Commission
(IOC), to combat IUU fishing.
Mauritius is also party to another
regional project for the reinforcement of control and surveillance
activities funded by the EU. We must at all cost have better control of
our fishing resources and stop unauthorised vessels from fishing in our
maritime zone and deplete our resources. In this regard, we shall soon
have the services of a vessel and a helicopter thanks to the
collaboration of the Indian Government. We must recall that all this
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became a reality during the last visit of our Honourable Prime Minister
in India last year.
Mr. Speaker Sir,
16.
My Ministry is also actively working on a new Fisheries and
Marine Resources Bill to respond to the needs for the efficient
management of our fisheries resources, harmonization of legislation at
regional and international levels and implementation of Monitoring,
Control and Surveillance (MCS) activities.
17.
My Ministry has appropriate training programmes for fishermen
to move to the outer reef areas.
In addition, there is a package of
incentives being provided to fishermen to enable them to move from
the overfished lagoons to the outer reef areas, namely for fishing
around FADs and in the semi-industrial fishery.
The House will recall that during his official visit to Mauritius in March
this year, His Excellency the President of India, Dr. Abdul Kalaam, met
the fishers community in Cap Malheureux and signified his intention to
assist
the
community
by
providing
them
with
communication
equipment.
18.
My Ministry in conjunction with the University of Mauritius is
presently
conducting
a
Socio-economic
7
study
for
the
fishing
community of Mauritius and Rodrigues.
The study would eventually
help my ministry to identify appropriate development strategies for the
up-liftment of the socio-economic status of the artisanal fishers.
19.
In the same breadth, my Ministry is moving forward with the
implementation of the FIT Project as spelt out in the Presidential
Address. In the formulation of the setting up of the FIT, we have been
attentive to the needs of the fishers community who rank amongst on
the most vulnerable group of the country.
Mr. Speaker Sir,
20.
Allow me to come back to the presentation of the Bill itself. The
purpose of this Bill is to establish a Fishermen Investment Trust, the
objects of which, shall be to invest in fishing and fish processing
activities, fish marketing and other related activities having regard to
the interest of fishermen. The bill provides for the setting up of a
Fishermen Investment Trust (FIT) along the lines of a body corporate.
21.
The Trust shall be managed by a Board on which fishermen will
be represented by persons elected by them, and shall be endowed
with the necessary powers to purchase vessels and equipment, to
grant loans or other assistance to fishermen and their families and to
improve their entrepreneurial skills.
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22.
The
provisions
Government
of
towards
the
bill
cater
democratisation
of
for
the
access
commitment
to
the
of
fishery
resources of Mauritius to the fisher’s community at large. Through
intensive training and employment, fishermen will find a new dignity.
Mr. Speaker Sir,
23.
In
undertaking
its
bold
economic
reform,
Mauritius
simultaneously adopted an Empowerment Programme, which aims at
improving and consolidating the economic situation of the vulnerable
groups through the provision of concrete opportunities. As pointed out
by the Honourable Prime Minister, socio-economic justice and social
governance
remain
fundamental
principles
of
the
government
Programme.
24.
The initiative for the setting up of the Fishermen Investment
Trust (FIT) puts into effect the philosophy of Government to empower
fishermen and provide them with similar opportunities as the other
major players in the fishing sector.
Empowering fishermen through
the FIT will no doubt foster an innovative mind-set in the fishermen
community.
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25.
My Ministry has the delicate task to maintain the balance
between fisheries development and conservation of fisheries resources
at sustainable levels while taking into account the interest of the
fishing community and stakeholders of the fishing industry. Whilst we
have the objective to increase the contribution of the Fisheries Sector
in the national economy i.e. the development of Mauritius into a world
class Seafood Hub, we have to see to it that fishermen benefit fully
from this development. The Fishermen Investment Trust thus goes in
line with the philosophy of putting fishermen at the centre of
development and improving their socio economic status.
Mr. Speaker Sir,
26.
We have brainstormed on the different options available to set
up the FIT and the best option available has been to set up a trust
which will exploit the resources available to it as a body corporate.
27.
The FAO has provided technical Assistance for the preparation of
a Business Plan for the proposed operations of the Fishermen
Investment Trust. The Business Plan highlights the responsibility for
the Fishermen Investment Trust to oversee amongst others the
organization,
management,
employment aspects
operation,
of fishers.
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marketing,
financing
and
Mr. Speaker Sir,
28.
A holistic and participatory style has been adopted in the
elaboration of this piece of legislation which I am introducing into the
National Assembly today. In fact, the Bill is the outcome of a series of
discussions of a Task Force set up under the Chairmanship of my
Ministry and comprising representatives of the Prime Minister’s Office,
the Ministry of Finance and Economic Development, the Attorney
General’s Office and the Commission on the Democratisation of the
Economy. The participation of the Management Audit Bureau and the
Development Bank of Mauritius was also sought at various points in
time to assist the committee in fine tuning the Business Plan of the
proposed FIT.
29.
The Business Plan of the proposed FIT has been formulated on
the basis that the FIT could initially operate a carrier vessel of about
27 metres in length, three 15 metre vessels and 10 pirogues with
some 150 fishermen employed to carry out fishing activities. In this
context, a quota of 1000 tonnes of fish in the St Brandon area and the
Nazareth Bank is being allocated to the FIT for its operations.
The FIT comes at the most opportune time for further diversification of
fishing activities into the oceanic areas. The FIT would eventually be
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able to take advantage of any fishing agreement which is entered into
on a reciprocal basis with neighbouring countries. The FIT would also
train fishermen to benefit from employment opportunities on licensed
foreign fishing vessels.
30.
The bill along with the Business Plan has after discussions at
interministerial level, been presented to all stakeholders. The work has
been a very complex one and as far as possible the views and
aspirations
of
all
stakeholders
concerned,
whether
directly
or
indirectly, have been taken on board.
31.
The Fishermen Investment Trust shall have an authorised share
capital of 65 million rupees, part of which will be subscribed by the
Government and which will be subsequently transferred to registered
fishermen. The share capital of Government will consist of 1.5 million
shares of 10 rupees each.
These will be allotted to some 5000
registered fisherman of Mauritius and Rodrigues, each fisherman thus
having 300 shares. The remaining 5 million shares will be subscribed
at such time, manner and by such persons as the Board may
determine.
32.
Taking into consideration the need to empower the fishing
community and the forward-looking policy of Government, 1.5 million
shares will be issued free of charge to the registered fishers of
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Mauritius and Rodrigues on an equal basis to enable the fishing
community to be “partie prenante” of the FIT. These shares shall be
non-transferable except to the heirs of the fishermen on the condition
that such shares remain untransferable. Fishermen will be encouraged
to invest in the Trust through subsequent purchase of bonus shares
and also through rights issues whereby shares will be issued to
existing shareholders. For the first time ever, fishermen will have a
direct say and a direct participation in the development of the fishing
sector, and they will reap all the benefits of the project. We are thus
concretely helping them to stand on their own feet and to participate
directly in the betterment of their situation. We are putting our actions
in conformity with our promises, helping them in changing their own
destiny.
33.
The other 5 million shares representing 50 million rupees would
be subscribed at such time, in such manner and by such persons as
the Board of the FIT may determine.
My Ministry is in the presence of two options from local operators for
the
operationalisation of the FIT, the modalities of which are being
worked out.
Mr. Speaker Sir,
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34.
Provisions have been made for the Trust to be administered by a
Board of Directors comprising, amongst others, registered fishermen
elected by them. The Trust shall operate on commercial principles and
shall ensure that it earns a reasonable return on its capital investment.
The Board shall be the authority responsible for the efficient operations
of the Trust.
35.
To expediently deal with matters of the Trust, the Board will be
required to meet once a month. The Board will have such powers to
enable it to engage into such actions for the furtherance of the objects
of the Trust.
36.
Here let me assure the House that as a responsible and
accountable Government, we would appoint persons with the right
profiles to serve on the Board and to administer the Trust. We would
fail in our endeavour if we depart from this principle.
37.
The Trust will have such powers as are necessary to enable it to
effectively discharge its functions namely to:
(a)
acquire
assets
such
as
fishing
vessels
and
fishing
equipment;
(b)
grant loans to registered fishermen on such terms and
conditions as it thinks fit;
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(c)
provide grants or other financial assistance to the eligible
children of registered fishermen for the pursuance of their
tertiary studies;
(d)
organise training for its staff and for registered fishermen
in
collaboration
with
any
institution
in
Mauritius
or
elsewhere;
(e)
impart to registered fishermen the necessary knowledge
for the development of appropriate entrepreneurial skills to
run a small fishing business;
(f)
create a hotline or desk service to attend to and give
immediate assistance to the fishermen community;
(g)
advance and promote the welfare of registered fishermen
and their families;
(h)
develop schemes and projects for the promotion of the
welfare of registered fishermen;
(i)
improve
the
socio-economic
fishermen; and
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condition
of
registered
(j)
exercise such other powers as may be necessary to
achieve its objects.
38.
The Trust shall be administered by a Chief Executive Officer and
other relevant staff together with a team comprising of technicians and
supporting staff. Recruitment would be made in such a way so as to
ensure the success of the operations of the FIT.
39.
The Trust shall also set up, amongst others, a general fund,
depreciation fund, reserve fund and investment fund for the smooth
running of its business.
40.
Furthermore, to ensure accountability and transparency at all
levels of the Fishermen Investment Trust, the auditing of the accounts
of the Fishermen Investment Trust will be carried out by the Director
of Audit.
41.
As the Trust will operate in a sector which will need flexibility of
adaptation to changing conditions, I am, therefore, including a
provision to make such regulations as may be fit for the purposes of
the Trust.
42.
I have since taking office constantly disseminated the concept of
the FIT in all fora with the fishing community. With the enactment of
the bill, I shall formally go to the fishing community and explain in
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great detail the philosophy behind the FIT and its proposed operations.
The time has come to uplift the fishing community so that they bring
their full and indispensable contribution to the development of the
country.
Mr. Speaker Sir,
43.
Before concluding I would like to appeal to all members of the
House to view this Bill in its specific context and to give it their full
support.
44.
Mr. Speaker Sir, with these words, I commend the Bill to the
House.
Thank You.
Dr. Arvin Boolell
Minister of Agro Industry and Fisheries
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