UNPUBLISHED REPORT No. 2 CONSTRAINTS TO THE DEVELOPMENT AND EXPANSION OF A DOMESTIC TUNA LONGLINE FISHERY IN TONGA October 1996

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1 SOUTH PACIFIC COMMISSION UNPUBLISHED REPORT No. 2 OF CONSTRAINTS TO THE DEVELOPMENT AND EXPANSION OF A DOMESTIC TUNA LONGLINE FISHERY IN TONGA October 1996 by Lindsay Chapman Fisheries Development Adviser SOUTH PACIFIC COMMISSION NOUMEA, NEW CALEDONIA 1997

2 The South Pacific Commission authorises the reproduction of this material, whole or in part, in any form, provided appropriate acknowledgment is given. This unpublished report forms part of a series compiled by the Capture Section of the South Pacific Commission s Coastal Fisheries Programme. These reports have been produced as a record of individual project activities and country assignments, from materials held within the Section, with the aim of making this valuable information readily accessible. Each report in this series has been compiled within the Capture Section to a technical standard acceptable for release into the public arena. However, they have not been through the full South Pacific Commission editorial process. Prepared at South Pacific Commission headquarters, Noumea, New Caledonia, 1997 ii

3 SUMMARY At the request of the Tongan Government, the Fisheries Development Adviser travelled to the kingdom of Tonga to conduct a review of the constraints to development and expansion of a domestic tuna longline fishery in Tonga. The review identified 22 issues that were wide-ranging and included: the process and costs associated with the issue of export licences (issued for one consignment of fish only); the lack of knowledge on the tuna resource in Tongan waters; the most suitable vessel for tuna longlining in Tonga; the manning, safety and training requirements for the fishing industry; the role of the Fisheries Department in development work; the perceived conflict of interest of some staff in the Fisheries Department; the need for local operators, including the Fisheries Department, to work together and not compete; the availability of wharf space, airfreight space and bait for tuna operators; the handling of product by airline staff when exporting; the standards for processing plants to meet HACCP (hazard analysis of critical control points); the potential for and types of foreign investment; the support industries needed to keep a fishing fleet operational; and the need to be able to operate seven days a week if weather conditions and flight schedules require this. The review also included a trip on-board one of the local tuna longline vessels, F/V Capricorn II, to identify areas that could be improved and assess the requirements for a longer-term country visit by the Commission s Masterfisherman. Several problems were identified as constraining the potential of the operation. The most important of these was the limited below-deck ice-hold space (1.5 tonne of fish maximum with ice) which meant that ice-chests needed to be carried on deck to store enough fish to make fishing operations viable. On this trip, over two tonnes of fish were caught during three sets of the 650 hook longline. Catch rates were excellent, however, problems were encountered with icing of the catch (the trip had to be cut short), and with the hydraulic system (which affected the operation of the line thrower and the mainline reel). A draft of this report was presented to a public meeting in Nuku alofa, prior to the departure of the Fisheries Development Adviser. iii

4 RÉSUMÉ À la demande des autorités tonganes, le conseiller pour le développement de la pêche côtière s'est rendu au Royaume des Tonga afin d'évaluer les obstacles au développement et à l'expansion d'une flottille nationale de bateaux de pêche thonière à la palangre. Au cours de cette mission, 22 problèmes de nature diverse ont été recensés, notamment la procédure et les coûts liés à la délivrance de permis d'exportation (pour une seule expédition de poisson), le manque de connaissance de la ressource thonière dans les eaux des Tonga, la détermination du palangrier le mieux adapté pour la pêche thonière dans les eaux de ce pays, les exigences en matière d'effectifs, de sécurité et de formation dans le secteur de la pêche, le rôle du service des pêches dans les activités de développement, le conflit d'intérêts afférent chez certains membres du personnel du service des pêches, la nécessité pour les exploitants locaux y compris pour le service des pêches de collaborer et non pas de se faire concurrence, la disponibilité d'espace sur les quais, d'espace de fret aérien et d'appâts pour les pêcheurs de thonidés, la manipulation des produits d'exportation par le personnel des compagnies aériennes, les normes que les usines de transformation doivent prendre en ligne de compte pour respecter l'analyse des risques et des points de contrôle critique, le potentiel et les types d'investissement étrangers envisageables, les activités de soutien nécessaires pour qu'une flottille de pêche reste opérationnelle et la nécessité de fonctionner sept jours par semaine si les conditions climatiques et les horaires des vols l'imposent. Dans le cadre de cette mission d'évaluation, un voyage à bord d'un des bateaux de pêche thonière à la palangre battant pavillon des Tonga, le F/V Capricorn II, a aussi permis de relever les domaines où des améliorations pouvaient être apportées et d'évaluer les conditions dans lesquelles le maître de pêche de la Commission pourrait effectuer une visite plus longue dans ce pays. Il est apparu que plusieurs obstacles entravaient les possibilités d'exploitation de la ressource. Le plus important d'entre eux était le volume restreint des chambres froides audessous du pont (1,5 tonne de poisson au maximum avec de la glace); en d'autres termes, il fallait transporter sur le pont des glacières afin de stocker suffisamment de poisson pour avoir une sortie rentable. Au cours de cette croisière, plus de 2 tonnes de poisson ont été capturées lors des trois mouillages d'une palangre sur laquelle étaient montés 650 hameçons. Les taux de prises ont été excellents; cependant, il y a eu quelques difficultés de mise sous glace des prises (qui ont eu pour effet d'écourter la croisière) et de fonctionnement du système hydraulique (qui ont entraîné un dysfonctionnement de l'éjecteur de ligne et de l'enrouleur de la ligne-mère). Une version prélilminaire de ce rapport a été présentée à l'occasion d'une réunion publique à Nuku'alofa, avant le départ du conseiller pour le développement de la pêche côtière. v

5 ACKNOWLEDGMENTS The South Pacific Commission would like to acknowledge the help and cooperation received from the Fisheries Department of Tonga, and fishermen and processors involved or interested in becoming involved in the tuna longlining industry. The Commission would like to especially thank Akau ola, the Secretary for Fisheries, Mafi Akau ola, the Deputy Secretary for Fisheries, Taniela Koloa, Principal Fisheries Officer, Koli Moa Kakala, KM Fisheries, Siotame Taunaholo, Capricorn Fishing Company, George Nakao, Sea Star Fishing Company, Leonard and Lennie Niit, Marine Projects Co. Ltd and Tricia and Bill Holden, Alatini Fisheries, for their insight into Tongan fisheries, their experiences and their input to this report. The Commission would also like to acknowledge the cooperation received form Lou Pale, captain of the F/V Capricorn II, and his crew during the fishing trip undertaken as part of this project. vii

6 CONTENTS Page INTRODUCTION/BACKGROUND 1 Proposed work programme 2 MAIN OUTCOMES FROM THE MEETING 3 DISCUSSION AND OPTIONS/RECOMMENDATIONS ON ISSUES RAISED 4 1. Process and cost for obtaining an export licence 4 2. Cost of taxes and duties paid by fisheries compared to agriculture 6 3. The tuna resource of Tonga - what resource is here? 8 4. What vessel is the best for tuna longlining in Tonga? 8 5. Proposed manning requirements for vessels 15 metres and over 9 6. Availability of suitably trained skippers and engineers Proposed safety equipment requirements for different sizes of vessels Role of Fisheries in development work Perceived conflict of interest of some staff in the Fisheries Department Sea Star Fishing Company not working with fisheries or the local industry The need for local operators to work together and not compete The standards for processing plants to meet HACCP Availability of wharf space now and in the future Availability of airfreight space now and in the future The handling and storage of export produce by airline companies The type of loans available to people wishing to enter fisheries Foreign investment as a means to promote the development of tuna longlining A Japanese tuna grader stationed in Tonga to assist with exporting for everyone Availability of bait for tuna longlining Support industries to keep a tuna longline fleet operational Use of existing UNCDF funds for development of domestic tuna longlining Working in the fishing industry 26 SUMMARY OF OBSERVATIONS AND RECOMMENDATIONS FROM TRIP ON BOARD F/V CAPRICORN II (22 26 October 1996) 26 Summary of fishing activities 26 Inherent problem 27 Observations and recommendations 27 Conclusion 37 OVERALL CONCLUSIONS 37 Appendix: Notes on longline vessel parameters for Pacific Island countries 38 ix

7 INTRODUCTION/BACKGROUND The South Pacific Commission's (SPC) Capture Section received several request for assistance in July and August 1996, from a domestic tuna longline operator in Tonga, Koli M. Kakala of KM Fishing Industries. 'Akau'ola, the Secretary for Fisheries was also keen to get SPC assistance, and to follow up on behalf of Mr Kakala, however, he thought it best to get assistance for ail domestic companies rather th an just one. The Fisheries Department of Tonga, through the Prime Minister's Office, made two OfficiaI Requests for assistance from SPC in September The first was for assistance from the Fisheries Development Adviser (FDA), Lindsay Chapman, in reviewing the development policy for the Tongan domestic tuna longline fishery, especially looking at ways the Tongan Government could assist development, plus other objectives as set out below. The second request was for the assistance of the SPC Masterfisherman, Steve Beverly, to work with the local companies to try and improve their fishing practices and catch rates. The main objectives of the visit were to: (a) (b) (c) (d) (e) (f) assist the Tongan Ministry to review the existing Government policy for the tuna fishing industry; identify any constraints that may inhibit further development of the tuna industry, including Government policies; advise the Government and the industry on long-term studies that may be necessary to further develop longline tuna fishing and strengthen management techniques; conduct a trip on board one of the domestic tuna longline vessels to identify any problem areas and assist in their fishing operations where possible (as well as undertaking the role of an Observer and completing all log sheets for SPC's SPRTRAMP programme); advise in any other areas related to Government policies on tuna that the Secretary for Fisheries may think necessary; and establish the roles and responsibilities for Tonga and SPC for a Masterfisherman visit to Tonga, as well as a work programme for the visit. On arrival in Tonga, the FDA was provided with several reports that had been recently completed on the Tongan domestic tuna longline fishery and Government policies, by the Forum Fisheries Agency (FFA) and RDA International Incorporated. A meeting was also scheduled for the Monday morning (14/10/96), and the following work programme was proposed. 1

8 Proposed work programme 1. The Fisheries Department, through the Principal Fisheries Officer, Taniela Koloa, to set up a meeting of all operators that had been, were presently, or were interested, in domestic tuna longlining in Tonga for Tuesday morning (15/10/96). 2. The FDA to have one-on-one meetings with each of the people/companies from the meeting, from Tuesday afternoon to Thursday/Friday (15 to 17 18/10/96) to get their input as to present Government policy and practice and their views on possible changes, as well as their experiences to date, and ideas for the future, with tuna longlining. 3. Commence the write up of the report over the weekend (19 20/10/96). 4. Undertake a 6 day fishing trip on board the Capricorn II from Monday to Saturday (21 26/10/96) to assess the fishing gear and techniques being used and advise and assist on possible changes where practical, as well as completing Observer forms for SPC's SPR TRAMP programme. 5. Continue to work on the report over the rest of the weekend (26 27/10/96). 6. Try to meet with the Secretaries of other Government Departments, such as Commerce, Finance, Marine, as well as the Director of the Marine College on Monday (28/10/96) plus continue.writing up the report. 7. Tuesday and Wednesday (29 30/10/96) used to produce a draft report for discussion with the Secretary for Fisheries, other fisheries staff, and those fishermen/companies that attended the first meeting. No format was discussed for the report from this project, as it was difficult to know what the findings would be and the best way to present them. The format that has been used, summarises the issues identified during the week of meetings first. Each of the issues is then expanded separately, with options and/or recommendations made at the conclusion of each issue. A brief description of the fishing trip is also presented with discussion and recommendations where applicable, on ways to improve this fishing operation. A brief conclusion is then made based on the findings and information collected during this project. The final objective of the visit, relating to a possible SPC Masterfisherman visit, will not be presented in this report. The views and recommendations presented in this report are those of the FDA, and not necessarily those of the South Pacific Commission, and are based on the information collected during this visit to Tonga. 2

9 MAIN OUTCOMES FROM MEETINGS Meetings were held from Tuesday to Friday of the first week of the project. The following people/companies provided input either through group or individual meetings. 'Akau'ola Secretary for Fisheries Mafi 'Akau'ola Deputy Secretary for Fisheries Taniela Koloa Principal Fisheries Officer Mosese Fakatou Acting Secretary for Marine and Ports Mele Amanaki Industrial Promotions officer, Department of Labour, Industry and Commerce Koli Moa Kakala KM Fisheries Lou Pale KM Fisheries Siotame Taunaholo Capri corn Fishing Company George Nakao Sea Star Fishing Company Ltd Leonhard Niit Maritime Projects Co. Ltd Lennie Niit Marine Projects Co. Ltd Bill Holden Alatini Fisheries Tricia Holden Alatiru Fisheries Malakai Tapealava Principal Training Officer, Marine Training School Harry Burgess Operations Manager and Masterfisherman, Asian Development Bank (ADB) Adrien Ruthenberg Project Implementation Officer, ADB Gerry Turtle Refrigeration and Engineering, ADB Barry Smith -Corporate/privatisation specialist, ADB Observers at first meeting Setefano Mafi Honorary Consul of the Republic of Korea Yoon Baik from Korea Kang Seok Jeong from Korea Over the course of the meetings, many issues were raised by the different participants. The following summary of issues comes from these meetings and may represent the views of any number of those who participated. The issues are presented in no specific order, so no degree of importance should be placed on their position in the list, as most people felt that a whole suite of issues needed to be addressed before the domestic tuna longline fishery could develop and grow in Tonga. 1. Process and cost for obtaining an export licence 2. Cost of taxes and duties paid by fisheries compared to agriculture 3. The tuna resource of Tonga what resource is here? 4. What vessel is the best for tuna longlining in Tonga? 3

10 5. Proposed manning requirements for vessels 15 metres and over 6. Availability of suitably trained skippers and engineers 7. Proposed safety equipment requirements for different sizes of vessels 8. Role of the Fisheries in development work 9. Perceived conflict of interest of some staff in the Fisheries Department 10. Sea Star Fishing Company not working with fisheries or the local industry Il. The need for local operators to work together and not compete 12. The standards for processing plants to meet HACCP 13. Availability of wharf space now and in the future 14. Availability of air freight space now and in the future 15. The handling and storage of export produce by airline companies 16. The type of loans available to people wishing to enter fisheries 17. Foreign investment as a means to promote the development of tuna longlining 18. A Japanese tuna grade stationed in Tonga to assist with exporting for everyone 19. Availability of bait for tuna longlining 20. Support industries to keep a tuna longline fleet operational 21. Use of existing UNCDF funds for development of domestic tuna longlining 22. Working when at sea DISCUSSION AND OPTIONS/RECOMMENDATIONS ON ISSUES RAISED 1. Process and cost for obtaining an export licence This issue was raised by every operator involved in getting an export licence for each consignment of fish being exported. To understand the process and the charges, they are presented in the order of events as they need to occur. (i) (ii) (iii) (iv) Twenty-four hours notice needs to be given to the Fisheries and Customs Officers prior to any export packing taking place. Contact the Fisheries to arrange and pick-up a "Fisheries Permit" (no charge). Only a 'blind' copy given in the first instance. 'Blind' copy of letter taken to the Department of Labour, Industry and Commerce for the issuing of a 'Certificate to Export'. Packing Company has to locate and pick-up Customs officer and take to the processing plant to watch the packing of all product. A Fisheries Officer also arrives to inspect the entire packing process, plus bringing the original of the Fisheries Permit for the packing company. No packing can occur without these two departments represented. 4

11 Charges are: T $8.00 per hour by the Fisheries Departments (if packing is occurring for more than one destination at the same time, then one Fisheries Officer is required per destination at T $8.00 each per hour); T $3.00 per hour by the Customs Department during normal working hours (T $4.00 per hour for working over the lunch hour and T $5.00 per hour for working outside of normal working hours and Saturdays) for the attendance of their staff during packing operations. Packing could take up to 3 4 hours depending on the quantity being packed and the number of destinations. (v) (vi) Original of Fisheries Permit taken to Department of Labour, Industry and Commerce, the T $5.00 exporting licence fee paid and licence issued. After the packing, the packing slip is handed over to the Fisheries Department so that the 0.5% Fish Export Levy on the value of the product can be calculated. As the fish has not been sold, an average base price is used to calculate the Levy, although this seems highly questionable as to the basis. The packing company is invoiced for this amount. It should be noted that this 0.5% Fish Export Levy is also payable on any fish sold outside of Tonga, such as frozen albacore being landed to an overseas cannery by a Tongan vessel. (vii) The product is taken to the airport where a T $0.70 per carton (for cartons of up to 0.2 cubic metres volume) or T $1.40 per carton (for cartons of 0.2 cubic metres or larger) paid as export duty. The above process, involves three Government Departments, a lot of wasted time and undue expense, and the process needs to be streamlined. The role of the three departments appears to be: Customs are present to ensure that drugs are not being packed in with the fish. This seems a pointless exercise as people are not going to try this with a Customs Officer watching. It would appear that the exercise is not necessary, and it could be viewed as a way to raise revenue, rather than to stop drug smuggling. Fisheries are present to check on the quality and quantity of the fish being exported. It appeared that the Fisheries Officers do not have any training in fish quality, and besides, the market will dictate the quality that they are prepared to accept and is a far better control mechanism. Again, it would appear that the exercise is not necessary, and it could be viewed as a way to raise revenue, rather than that of quality control. The Department of Labour Industry and Commerce actually issue the export licence. Having to do this for every consignment (T $5.00) is unnecessary, and it could be viewed as a way to raise revenue, as there is provision under their legislation to issue quarterly (T $10.00) or annual (T $40.00) licences. 5

12 Recommendation 1: That quarterly or annual export licences be issued to allow processors to reduce paperwork, reduce staff time and costs in running around, and increase the flexibility and encourage growth in exporting fresh fish from Tonga. Recommendation 2: That both the Customs and Fisheries Departments cease their current practice of having inspectors present at every export packing of fresh fish, and revert to having random, unannounced "spot checks". Charges In speaking to processors, they would be willing to pay an increased annual fee to the present T $40.00, possibly as high as T $200.00, if the process could be streamlined. Spot checks undertaken by the Customs and Fisheries Departments should be at no charge to the processors, but be a part of the Officers normal duties. A Fisheries, Fish Export Levy appears reasonable, however, having it based on a value that can fluctuate seems dubious. The local price for fish is around T $ per kilo, which equates to T $ per kg, (when based on the 0.5% of value charged at present) or an average of T $0.015 per kg. The weight of the fish being exported can be taken from airway bills provided to the Fisheries Department on a weekly or monthly basis. The preferred method of calculating the Fish Export Levy would be to base it on the weight of fish being exported, and a comparable price would be T $0.015 per kg (1.5 cents per kg). This would make it easier for everyone to calculate and work into their budgeting programme. The Export Duty for cartons of fish should be standardised to ensure equity between producers of tuna and bottom fish exports. The price of T $0.70/carton seems to be a more realistic value and should be applied to ail export cartons. This duty would continue to be collected in the present manner. Recommendation 3: That the charges as presented above be implemented in line with the implementation of recommendations one and two. 2. Cost of taxes and duties pa id by fisheries compared to agriculture Concerns were expressed by many people that people involved in agriculture were getting many more concessions on duties and taxes that those working in the fisheries sector, even though they were both primary producers. In reviewing these concerns, it appeared that duty concessions were starting to flow to the fisheries sector, the same as in agriculture, although this has been a slow process. Those in fisheries are able to apply for a two year development licence. This development licence allows the holder to purchase fishing equipment, bait, packaging material, and capital items such as a vessel, plant and machinery for processing, all without any duty being payable. For capital items, the ports and services tax is reduced from 20% to 10 % 6

13 for the holder of a development licence, while the other items do not attract any ports and services tax. After the development licence has expired, goods such as bait and packaging materials can still be imported duty free due to them being part of the raw materials necessary for a fishing and exporting enterprise to continue. Capital items, which includes fishing gear, on the other hand are not duty free without a current developmental licence, and no concession is given on the ports and services tax on any of these items. In addition, there is no duty or excise concession on the purchase of diesel fuel for the fishing industry. Agriculture receives the same benefits as fisheries on equivalent items, such as fertiliser, pesticides, packaging material, capital items of machinery etc, and have done for many years. The main difference is that those in agriculture can continue to purchase capital items without duty or ports and services tax. In other countries, like Guam and Fiji, there are no duties or taxes whatsoever on fisheries related gear and equipment, as the benefits to the country come through job creation, foreign exchange, and the support industries that develop in support of an expanding export-oriented fishing industry. In relation to fuel, agriculture do not get any direct reduction, however, for the purposes of "land preparation" farmers can get their fields ploughed through paying a fee and having machinery with fuel, provided at a subsidised rate. It should be noted that aviation fuel is brought into Tonga free of duty for commercial airlines, as a form of subsidy. Fuel is one of the major operating costs associated with fishing vessels. If the Government is wanting to assist the fishing industry to develop and expand, then a reduction in the duty or excise paid for fuel would greatly assist. This is a common practice in other countries as a means of assisting, or subsidising the primary industries sector. This appears to be occurring in the aviation sector, and in an indirect way in the agriculture sector through assistance in land preparation, however, there is no equivalent in the fishing sector. Recommendation 4: That the Government consider implement an exemption or rebate scheme for the fishing industry to reduce the price of fuel by an appropriate amount, as a means of assisting the development and expansion of fisheries, primarily domestic tuna longlining, in Tonga. Recommendation 5: That the same duty and ports and services tax concessions for the agriculture sector be passed on to the fisheries sector for equivalent items, including capital items, necessary to develop and expand fishing catches and exports from Tonga. Recommendation 6: That in line with recommendation 5 above, no duty or ports and services tax be payable on commercial fishing gear and other capital items needed by the catching and processing sectors of the fishing industry, and that this be formally put in place by the Government. 7

14 3. The tuna resource of Tonga what resource is here? Everyone is interested to know the extent and the species composition of the Tongan tuna resource. 'Akau'ola has requested SPC to produce a country profile that will look at all of the available data on the different tuna species in Tongan waters. It is hoped that this report, when completed, will assist domestic operators in knowing the extent of the resources, and an idea (by one degree squares) of the area where catches have been made. To add to the knowledge of the tuna resources, now and in the future, it is imperative that every operator in the fishery contribute their catch, effort and position details to the South Pacific Commission and to their Fisheries Department, through the completion of standard logbook entries. This data will provide a useful tool for the operators themselves, as they will have a record of all of their own data, as well as allowing the Commission to better understand the regional tuna resource as well as conducting stock assessments. Recommendation 7: That all tuna longlining operations in Tonga complete the appropriate SPC logbook, and return a copy of the monthly pages directly to the Commission every quarter (four times per year). 4. What vessel is the best for tuna longlining in Tonga? The question of what is the best boat for developing the domestic tuna longline fishery in countries throughout the Pacific has been asked many times by most countries and territories in the region. It is apparent from some of the vessels that are being used at the present in Tonga, that they are not really appropriate for the work that they are doing. Limited fuel and fish storage capacity, poor deck layout, and the amount of gear being set are some of the limiting factors that have been observed. Given the interest of countries in this issue, SPC's Masterfisherman, Steve Beverly, has written a paper on appropriate vessel parameters that should be considered when choosing or building a tuna longline vessel for the fresh fish trade. This paper was recently presented to a tuna longlining workshop held in the Solomon Islands and was very well received by the participants. A copy of Steve's paper is at Attachment A. FAO has provided the services of Oyvind Gulbrandsen, FAO consultant Naval Architect, to design an appropriate tuna longline vessel for developing the domestic fresh tuna fishery in Tonga. It would appear that the length of 14.9 metres was based on the proposed manning requirements (see next issue), rather that being the most appropriate length vessel. The proposed design lacks many of the minimum parameters as presented in Steve Beverly's paper, plus some of the assumptions and calculations used are questionable based on the practical experience of tuna longline fishermen. Regardless of this, the design is one that could be used, however, it would be limited in its fish storage capacity, possibly under powered, and low on fuel carrying capacity. The ship yard in Fiji is now embarking on the construction of tuna longline vessels in two sizes, around 15 and 18 metres in length. These vessel designs should be examined as they may be appropriate for Tonga. 8

15 There is no recommendation on the "best tuna longliner" for Tonga. All that can be suggested is that people read the paper on proposed vessel parameters, and look around at the options that are available. In preference, operators should purchase a new vessel, equipped the way they want it, although there are good second-hand vessels available. A new vessel should give years of service with minimal problems due to mechanical and electrical failures. Recommendation 8: That people wishing to purchase vessels for tuna longlining in Tonga, provide information on possible vessels to the SPC's Capture Section, so that input can be given on the appropriateness of vessels before purchasing. 5. Proposed manning requirements for vessels 15 metres and over Under the proposed "Shipping (Fishing Vessels [Manning]) Regulations", which is administered by the Ministry of Marine and Ports, the following manning requirements will apply to all fishing vessels 15 metres in length or longer and less than 35 metres in length or 200 gross tonnes. (a) Category 1 fishing in unlimited sea areas Master Grade 3 Chief Mate Grade 3 Grade 3 engineer for vessels of less than 750 kw propulsion power (b) Category 2 fishing between 50 and 200 nm from a place of shelter Master Grade 4 or 3 Chief Mate Grade 4 or 3 Grade 3 engineer for vessels of less than 750 kw propulsion power or Grade 4 engineer for vessels of less than 200 kw propulsion power or Grade 5 engineer for vessels of less than 200 kw propulsion power (c) Category 3 fishing up to 50 nm from a place of shelter Master Grade 5 or 4 or 3 Chief Mate Grade 5 or 4 or 3 Grade 3 engineer for vessels of less than 750 kw propulsion power or Grade 4 engineer for vessels of less than 400 kw propulsion power or Grade 5 engineer for vessels of less than 200 kw propulsion power 9

16 It would appear that these proposed manning requirements are based on those used for cargo vessels or the merchant marine. To implement these manning requirements on the fishing industry seems unreasonable, unrealistic, and unnecessary, especially for vessels between 15 and 20 metres when fishing within the Tongan 200 nm zone. Vessels in this size range, and smaller, are usually required to have a qualified skipper, who can also be the engineer on the vessel. Once a vessel gets over 20 metres, then the need for a separate engineer, and possibly a mate, becomes a more reasonable requirement. To implement such a requirement for category 2 and 3 vessels, will probably result in vessels of less than 15 metres being used, and these vessels may not be the most seaworthy for the type of operation that they are going to undertake. It would be far safer to have a skipper/engineer on a suitable m vessel than a skipper/engineer on an unsuitable m vessel purely because of manning requirements. Manning requirements are to ensure the safety of the crew and vessel whilst at sea. The proposed manning requirements do not achieve this for the tuna longline industry, in fact they will hinder the development of the industry. Another point of concern raised was in relation to vessel insurance and the effect of the proposed manning requirements. What this means is that if a vessel were to leave port without the required manning (which would be hard to comply with based on the shortage of qualified people), the owners are risking any insurance coverage they may have in the event of a problem or accident. Insurance companies are very good at finding reasons for not paying if they can find a loop-hole or technical point that has not been complied with this proposed manning would potentially give them an out if not adhered to if it is implemented. It should be noted that these are proposed regulations, and comments are sought on them. 1t is anticipated that they will be put to Parliament when it sits next, so it is imperative that comments are made to the Secretary for Marine and Ports before then if changes are to be made. Recommendation 9: That the proposed manning regulations be amended to apply to vessels of 20 metres or greater, with vessels from metres being manned by a qualified shipper (Grade 5) who can also be an engineer if required. 6. Availability of suitably trained skippers and engineers In discussions with those in the fishing industry, there appears to be a potential shortage of qualified Masters and engineers, especially if there is to be expansion in the tuna longlining industry. The number of qualified seaman seems to be absorbed within the fishing industry at present, so there is a need to get new people qualified to ensure that expansion of the fishing industry can occur with qualified Tongans. There is a Marine Training college in Tonga that conducts training for Grade 4 Masters, Mates, and Engineers. The focus of the college has mainly been to provide competent crews for cargo vessels or the merchant marine, rather that the fishing industry. This appears to be changing with negotiations between the college and Fisheries Department, on adding fishing 10

17 technology and fish processing and handling into the curriculum to take care of the fishing industry's needs. The main criteria for any form of qualification from the Tongan Marine Training College is to have three (3) years sea time. To assist school leavers, the college offers a 3 year 'basic course" that includes 6 months schooling on basic seamanship, 27 months at sea for sea time, and 3 months refresher course. At the successful completion of the 3 year course, trainees gain "able bodied" seaman's certificate (AB certificate). The trainee is also qualified to undertake the 3 month "upgrading course" that if successfully completed will give them either a Grade 4 Masters/Mate or Grade 4 Engineers certificate, depending on the course they undertook. Fishermen wishing to gain qualifications are covered by the same basic criteria, they must have 3 years sea time. Fishermen with sea time can do the 3 month "refresher course" and gain an AB certificate, can go straight to the 3 month "upgrading course" and gain a Grade 4 certificate, or do both with the AB certificate first. Five fishermen with their sea time approved did the "upgrading course" in 1996, however, none of them passed and became certified. It should be noted that for a Grade 4 Masters, the trainee must successfully complete and hold each of: fire fighting certificate; first aid certificate; survival at sea certificate (each is a 3 week course); radio operators certificate; and radar operators certificate (each a 1 week course). Those doing an engineering certificate do not need the radio and radar certificates. Ali of this seems quite daunting for the fishing industry and the average fisherman. Being able to take 3 months off from fishing to go to the college and be able to absorb the amount of information that needs to be learnt seems quite difficult for the average fisherman. It would appear that the courses are too long and too detailed for people to absorb ail at once. If the current course could be broken into sections or 1 3 week modules that a fisherman could take, this may allow the fishermen both the time and the ability to focus and pass each of the modules. Fishermen could start to take these modules after they have 18 months to two years sea time, so that when they have completed their 3 years sea time, they may also be ready to finish their qualification. Recommendation 10: That a programme of specific 1 3 week modules be developed by the Tongan Marine Training College for fishermen to attend in order for them to work towards and attain their Grade 4 certificates over time. Recommendation 11: In conjunction with recommendation 10 above, that fishermen be permitted to commence training on modules after they have 18 months sea time, however, there certificate would not be issued until the full 3 years sea time had been completed and verified. 7. Proposed safety equipment requirements for different sizes of vessels Under the proposed "Shipping (Fishing Vessels[Safety]) Regulations" which is administered by the Ministry of Marine and Ports, safety requirements are being proposed and will apply to ail fishing vessels 15 metres in length or longer. They are based on the 'Ship Safety Regulations" (which apply to domestic trade passenger and cargo vessels). 11

18 In reading the proposed regulations, there are a few areas that raise concern as like the proposed manning regulations, these appear to be more suited to vessels over 20 m not 15 m. Severa1 of the requirements are referenced to other Codes and Conventions, such as the "Fishing Vessel Code", various Chapters of the "Marine Code" and the "safety Convention". Not knowing what is in these Codes and Conventions makes it very difficu1t to know what the actual requirements are. Additionally, some of the sections, such as Part 3(8) Machinery and Electrica1 Systems, and Part 3(9) Lifesaving Appliances are subject to "the satisfaction of the Secretary" in regard to, or in accordance with, provisions in Codes and Conventions. What the term "the satisfaction of the Secretary" means is also unclear. Under Part 4 of the proposed regu1ations, some of the equipment suggested is either archaic or irre1evant, and shou1d not be a requirement for fishing vesse1s under 20 m, and in some cases, not at all. Under Part 4(4) Miscellaneous Navigation Equipment, the following changes are suggested: the requirement for a vessel to carry a 45 m 1ead line shou1d be de1eted the requirement to carry a sextant shou1d be deleted for category 2 vesse1s Under part 4(5) Miscellaneous Equipment, the fol1owing changes are suggested: the requirement for signalling 1amps should be deleted the requirement for pilot ladders shou1d be de1eted the requirement for communication from bridge to engine-room be de1eted Like the proposed manning requirement, the imp1ementation of these type of safety requirement could potentially effect the insurance coverage of a vesse1 if they are found to be out of compliance. It wou1d seem inappropriate for insurance coverage to be negated (if these requirements are imp1emented and an accident occurred) on the basis of a vessel not having a pilot ladder, or no bridge to engine-room communication, or no 45 m lead 1ine. These factors need to be taken into account when considering the appropriateness of such regu1ations. It should be noted that like the proposed manning regulations, these are proposed regulations, and comments are sought on them. It is anticipated that they will also be put to Parliament when it sits next, so it is imperative that comments are made to the Secretary for Marine and Ports before then if changes are to be made. Recommendation 12: That the proposed fishing vessel safety regu1ations be amended to app1y to vesse1s of20 metres or greater. Recommendation 13: That the changes suggested above be put to the Secretary for Marine and Ports for consideration as wel1 as recommendation 12 above. 12

19 8. Role of the Fisheries in development work Concern has been expressed that the Fisheries Department's vessels are only commercial fishing and competing with the private sector, both on the fishing grounds and in selling their fish on the local market. One of the objectives of the Fisheries Department is to ensure that there is adequate fish available for local needs. As most of the current development is aimed at export, it is questioned if adequate fish is available for local consumption at present. There is no problem with selling the catch from vessels belonging to the Fisheries Department, however, there is a potential problem if these vessels are acting as commercial vessels crewed by Government Officers and working in opposition to the private commercial operators, if working outside of the above stated objective. Normally, the primary role of the Fisheries Department and their vessels should be one of research and extension, that is, testing new fishing grounds, new and novel gear, looking for new fisheries, specific research on a particular area or species, developing management strategies or plans for the long-term development and sustainable harvesting of all marine resources in Tonga, and extension work through training local fishermen on their discoveries. This does not appear to be happening as the only catches observed appeared to be the same as those landed by other vessels, and they were caught in similar locations or known fishing grounds. The Fisheries Department needs to compile a development plan for research and extension activities in Tonga. This plan should include work programmes for their vessels in achieving the research plan that could be on those research topics as mentioned above. The vessels could also be used for extension work or training, however, this type of work would best be conducted on the private sector vessels with their gear. Part of the research plan may be to conduct tuna longlining activities in new areas to test the potential for the local domestic vessels. No catch is as important as a big catch when exploratory fishing is being conducted and new fishing grounds being looked for. Recommendation 14: That the Fisheries Department avoid using their vessels for commercial fishing, and focus on research fishing to assist in trialing gear, collecting research specimens and data, and looking for new fishing grounds to assist in development of Tonga's fisheries resources. Recommendation 15: That the Fisheries Department develop a plan or strategy for their research fishing to ensure that there is a scientific purpose for their activities. 9. Perceived conflict of interest of some staff in the Fisheries Department In gathering the information for this report it became apparent that there was a general reluctance for operators to provide information to the Fisheries Department for several reasons. Firstly, some fisheries staff have interests and in some cases employment, in fishing operations that could benefit from the information provided by others, such as fishing positions and catches. Secondly, the Fisheries Department could also be using this information for the use of their own vessels when commercially fishing in opposition to private operators as discussed in No.8 above. 13

20 Most Fisheries Officers receive training, both within country and overseas, in order for them to learn and help the private sector development local fisheries. The question is then whether these staff can sell their knowledge, or make a profit from their knowledge whilst being employed by the Fisheries Department. It is unclear what the actual Government policy is on this issue, however, it is one that needs to be cleared up if the Fisheries Department wants to gain the cooperation of the fishing industry, as well as getting them to provide accurate data. It is not uncommon for trained Fisheries Officers to leave their positions and enter the private sector, in fact in some countries this is encouraged. It is also quite common to have extension officers working with fishermen of fishing groups to pass on their experience, this is really one of the main roles of fisheries and it is a free service. This has just occurred with one of the local tuna longline vessels not having a skipper, with a Fisheries Masterfisherman going out on the boat to help train up a replacement skipper. These approaches keep any potential conflict of interests to a minimum and should be encouraged. Recommendation 16: That no one employed by the Fisheries Department be permitted to be employed within any part of the private fisheries sector (catching, processing, operations, management, etc [excluding subsistence activities]), or receive any financial gains or favours from any part of the private fisheries sector. Recommendation 17: That no one employed by the Fisheries Department be permitted to transmit in any form, or use to their own advantage, information that has been provided to them or the Fisheries Department in confidence, such as logbook returns and personal information. 10. Sea Star Fishing Company not working with fisheries or the local industry The Sea Star Fishing Company (SSFC) appears to be "doing their own thing" without working with, or being fully aware of the direction that the Fisheries Department is heading. This was highlighted recently with the arrival of three consultants from the Asian Development Bank (ADB) to work with the SSFC, with no one appearing to know about it, including the Secretary for Fisheries. There is also a perception that SSFC is getting preferential treatment from the Government, based on the Government owning 70% of the shares in the company, and no one knowing what is going on. The latter point was highlighted with the granting of leased wharf space for SSFC to build a fish processing plant with ice and freezer facilities (that no one knew about), when the "Tongan Export Fisheries Association" had a similar request in since November 1995 with no reply. It is fine for SSFC to "do their own thing", however, it is imperative that their direction, and the direction of the Fisheries Department and the rest of the domestic tuna longline industry is the same or at least similar. It will be of no benefit to the Tongan Government or the development of tuna longlining in Tonga if the two groups start competing as it will only hinder development and potentially waste valuable resources and money. There is adequate 14

21 for SSFC and other private tuna longline operators to co-exist by working in parallel, even if they do not wk directly together. The Fisheries Department has a staff member on the Board of SSFC, however, there appears to be very little information flow back to Fisheries on the direction and objectives of the SSFC. There needs to be close cooperation between the Board and Managing Director of SSFC, and the Secretary for Fisheries and the Fisheries Department to ensure that development of Tonga's tuna resource occurs in a sustainable manner and to the benefit of both the private and public (Government) sectors. Recommendation 18: That the Secretary for Fisheries be appointed to the Board of the Sea Star Fishing Company, to ensure communication between these groups and ensure they both are working in the same direction, if not together. Recommendation 19: That the Sea Star Fishing Company should not be given preferential treatment by the Government, they should be treated that same as any other company involved in developing tuna longlining in Tongan waters. 11. The need for local operators to work together and not compete The present situation demonstrates that each operator in the tuna longline fishery is "doing their own thing" with regard purchasing gear, bait, and packaging material, locating fish, catching, marketing (both domestic and export), basically everything is being done individually. In order to develop a domestic tuna longlining industry in Tonga, people and companies need to work together to ensure that costs are kept to a minimum for everyone, thus allowing development to occur as people learn. The buying power through purchasing large quantities of goods, such as fishing gear, bait and packaging materials (not to mention the savings in freight) is far greater that individuals purchasing smaller quantities of goods. Filling containers is better than partially filling containers, as goods can be divided up amongst people in Tonga when the goods arrive. When developing a fishery, operators are all looking for the best ground by trial and error. Tuna longlining is no exception, however, it has the added twist that the species being targeted is highly migratory and may not be in the same place next week. In order to assist everyone in locating the fish and getting better catch rates, fishermen have to work together. The same holds true for the marketing of the catch. With limited airfreight space and cheaper freight rates for larger consignments (as volume increases, cost usually decreases) it makes sense for exporting to be done through one or two establishments where these factors can be used to the advantage of all operators. This does not mean that there should be restrictions on the number of processing plants or exporters, as this will only cause bad feelings. It will only work if people choose to work together and the benefits are spread across all participants. 15