Wednesday, September 14, 2016 - 21:15
STRINGENT restrictions on the Namibian Government and its various agencies to cut back on spending will in all probability see companies and right holders in the fishing industry picking up the bill for its line ministry, to ensure sufficient surveillance and regulation in future.
The Minister of Fisheries and Marine Resources, Bernhard Esau, mentioned the possibility of yet more levies on players in the fishing industry on the day that the finalisation of new system, whereby right holders will be allocated fishing quotas, was announced.
Esau said the step will be justified by the continuous depreciation of the Namibian Dollar against major world currencies and the subsequent higher earnings of fishing companies involved in export to international markets.
“The fact that the industry has been able to show bigger earning was helped by consistent lower fuel prices for the past year. The ministry will still manage the necessary surveillance and monitoring responsibilities, but without the assistance from the private sector these functions will have to be cut back drastically, which will have a detrimental effect on Namibia’s fish resources,” he said.
Esau said that at this stage it is still just a possibility that is being discussed with the relevant role players in the fishing industry.
“I realise that the various taxes and financial responsibilities are already weighing heavily on the industry, but to ensure the viability of the country’s resource in future, drastic steps will have to be taken. In this instance we need a smart partnership more than ever,” he said.
Esau referred to the revised economic outlook of the Namibian National Economy by the Fitch Rating Agency recently and said this issue compounded the impact of reduced government spending on the private sector.
Fitch Rating revised Namibia’s economic outlook from stable to negative at BBB-minus status. “The Namibian Government is committed to cutting expenditure in response to the current economic challenges, because the President decreed it and especially in light of the downgrade by the Fitch Ratings Agency,” said Esau.