Policy assignment 5

8/8/2019 Policy assignment 5

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Executive summary

Policies aimed at reversing the the alarming decline in West Coast rock lobster(WCRL) (Janus Lalandii) stock have been somewhat successful but the future ofthis controversial fishery remains uncertain. The Department of EnvironmentalAffairs (hereafter the department) is responsible for guaranteeing the

sustainable exploitation of this valuable commercial and environmentalresource. There is need for a level-headed and even-handed approach rooted inrigorous scientific findings.

This paper has four primary objectives. Specifically focusing on the WCRLfishery, this paper:

1. Highlights the concerns surrounding the WCRL fishery:i. Demise of WCRL biomass, due to overfishing and

a) Increased WCRL strandings (walkouts) due to harmful algalblooms and/or low-oxygen events

b) Decreased somatic growth ratesii. Poachingiii. Negative spill-over effects:

a) Southward shift in the spacial distribution of WCRLb) Trophic influencesc) Harm caused to other biota and the environment

2. Reviews current policy in accord with the Marine Living Resources Act of1998:i. The Operational Management Procedure and calculating the TACii. Minimum CLiii. The ecosystem approach to fishery

iv. Closed seasons and closed areasv. Gear restrictions

3. Examines future possible strategies open to Marine and CoastalManagement (MCM), with respect to the policy's triple pillars ofsustainability, equity and industry stability:i. Transparency and educationii. Monitoring, control and surveillanceiii. More rigorous scientific researchiv. Setting specific targets

4. Offers policy recommendations. based on the above analysisi. Increase funding to improve policing and researchii. Decrease TAC and remove fishing rights in the short-runiii. Devise a responsive action plan to save lobsters during strandings

and decrease TAC in such areasiv. Run an aggressive education campaignv. Maintain satellite accounts and frequent updates of WCRL statistics

While the scientific community maintains that sustainability of this resourceshould be the primary concern of all parties, we do appreciate the complicatedposition in which the department finds itself, burdened as it is by the need tobalance

(a)the incompatible interests of disparate groups, and(b)the achievement of non-reinforcing objectives.

Thus, great care has been taken to present recommendations that are


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economically, politically, and socially feasible.

Introduction: a background and brief history

The WCRL habitat stretches from about 23S inNamibia to 28E, near Danger Bay, South Africa(Fig. 1) (Cockcroft & Payne 1999; Cockcroft &Payne 1999). The resource's estimated valuestands at between R260m and R300m perannum (Feike 2008). Unregulated commercialexploitation commenced in the 19th centuryuntil a minimum allowable carapace length (CL)of 89mm was introduced in 1933 and a tail-mass production quota in 1946. Nevertheless,catches declined from the 1960s, most likelydue to overfishing and poor regulation on thenorth-west coast (Cockcroft et al. 2008a). In1970, the tail-mass production quota wasscrapped in favour of a whole lobster (landedmass) quota. The fishery was divided into zones(Fig. 2), a total allowable catch (TAC) wasprescribed in the early 1980's and theminimum CL was reduced to 80mm in 1992.The fishery is important for large and small-

scale fishing companies, employing approximately 4000 people (ibid.), as well

as recreational fishermen and local communities that regard the WCRL as apart of their cultural heritage.

Concerns surrounding the WCRL fishery

Demise of WCRL biomass

As Figure 3 illustrates, WCRL biomass has continued to fall since 1990,although the rate of decline seems to have decreased. The population isestimated to stand at approximately 8% of its pre-exploitation level (Leiman &Harris 2009). These trends are reflected in the decline in WCRL catches (Fig. 4),although levels appear to have remained stable since about 1992 (ibid.).

While overfishing, particularly in the first half of the 20th century, is largely toblame (DEAT, MCM 2005), two additional factors are implicated:

(i) Increased WCRL strandings (walkouts) due to harmful algal bloomsand/or low-oxygen events

Strandings occur when lobsters retreat from low-oxygen, deep waters toshallow waters and become lethargic and unable to escape ebb tides

(Cockcroft & Payne 1999). Such events are not historically unusual but they arebecoming both more frequent and severe (Cockcroft 2001). Clearly, thisnegatively impacts WCRL biomass in the short run, although the long-run

Figure 1: Map depicting WCRLfishery. Edited map fromCockcroft & Payne (1999)


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effects are unknown (ibid.). Cockcroft et al. (2008) maintain that the cause ofwalkouts are well understood. There appears to be little that the departmentcan do to prevent such events but measures can be taken to rescue lobstersbefore they become trapped and die (Shannon et al. 2006).

(ii)Decreased somatic growth rates

Since the late 1980's, somatic growth rates of WCRL have declined (Pollock etal. 1997; Shannon et al. 1992). This has been implicated in the reducedbiomass (DEAT, MCM 2005). Low male growth rates are associated with below-average brood sized (Melville-Smith et al. 1995). Scientists are uncertain as tothe cause but Pollock et al. (1997) offer two hypotheses: (1) The demise of theWCRL's primary food source, the ribbed mussel A. ater, which wouldeffectively force them to switch to alternative, less abundant and/or lessnutritious food sources (ibid., p.292). What is particularly alarming is thatlobsters have reportedly shrunkin response to inadequate diets (Cockcroft &Goosen 1995). (2) The effect of toxic algal blooms on the physiology of theWCRL food source. A better understanding of the causes of this phenomenonwould allow scientists to construct a strategy to reverse it.

Poaching


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The illegal harvesting of WCRL is well-known. Each year, the TAC is calculatedassuming 500 tons will be poached (Shannon et al. 2006a). The sustainabilityof the WCRL is threatened by such illegal activities by licensed and unlicensedfishermen.

Negative spill-over effects


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Figure 3: (A) Graph of opening biomass since 1990. (B) Graph of exploitablebiomass (stock with CL > 75mm). Author's own. Source: Leiman & Harris (2009)

Figure 4: WCRL catches (metric tons) 1950-2006. Duplicated from Leiman & Harris (2009)


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(i) Southward shift in the spacial distribution of WCRL

Recently, the WCRL distribution has been changing, becoming moreconcentrated in the southern areas. The cause of this anomaly is unknown, butit has been suggested that algal blooms and/or low-oxygen events (discussedabove) or fluctuations in fish stock are responsible (Shannon et al. 2006b;

Cockcroft et al. 2008b). TAC levels for particular zones might misrepresentactual biomass if historical distributional patterns are used, which could lead totheir overexploitation. Other implications need to be explored.

(ii)Trophic influences

Trophic influences (interactions with sea urchins, abalone and octopus) havebeen largely unexplored and the impact on WCRL population and other speciesremain uncertain. The southern migration of the WCRL is causing a change inthe benthic community structure and encroachment on traditional territories ofother biota. The WCRL is putting additional pressure on abalone, which arealready under threat (Tarr et al. 1996) and which represent an extremelyvaluable resource. There are great potential dangers to other members of thebenthic community, including octopus, which represents another valuableindustry (Shannon et al. 2006a).

(iii) Harm caused to other biota and the environment

According to Shannon et al. (ibid.) harm caused as a result of the WCRL fisherycan be divided into three categories: (1) trap and hoopnet damage to benthos,(2) bycatch issues, and (3) entanglement of birds and cetaceans in haul lines.

These externalities need to be taken into account or the harm caused to theenvironment will be underestimated.

A review of current policy measures

The Operational Management Procedure and TAC

An Operational Management Procedure (OPM) was implemented by thedepartment in 1997 and has since evolved. It dictates how the TAC iscalculated, using a complex formula that accepts as inputs catch-per-unit-effort(CPUE), somatic growth rate, and recruitment, with each factor given a specificweighting. The formula is dependent on the target biomass and TAC is revisedin accordance with the precautionary management approach (Garcia 2003).

As Figures 3 and 4 illustrate, the decline in WCRL biomass and landings havestabilised. To what extent this can be attributed to the TAC alone is impossibleto tell but to the extent that fishermen are participially constrained by the TAC,it appears to have been somewhatsuccessful in that it has curbed the decline.However, it has failed to reverse it. The TAC must be held at least partlyresponsible for this, since it dictates the number of lobsters that can be legallyharvested and actual landings tend to follow the TAC (Fig 5). What complicates

this matter is that TAC levels are set by zone (Fig. 1) so a more detailed look atspecific areas need to be undertaken to examine the exact impacts of the TAC.


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The TAC is allocated among individuals in the form of individual quotas. Froman economic point of view, this reduces the risk of a rush early in the season toprivately exploit as much of the TAC as possible, which is inefficient.

Minimum CL

The minimum CL has been set at 75cm since 1993 (Johnston & Butterworth2005). OLRAC (2010) recommended a reduction to 65mm, arguing that thestrict restriction led to genetic selection for slow growth and caused harm tounder-sized lobsters (that were presumably discarded before vessels returnedto shore). The current CL limit is seen as a compromise.

While one can again cannot quantify the impact that the minimum CL has had,stable catch levels since 1992 suggest that the department has been doingsomething right and it stands to reason that not allowing infant lobsters to beharvested will ensure that some stock remains to breed next season. Inaddition, the CL decease has not be associated with an increase in catches.One can infer that smaller lobsters are not being harvested in addition to thethose with CL greater than 89mm but rather that there has been a substitutioneffect. If the higher limit does genetically select for slower growth, thenrelaxing this constraint is likely to play a part in stabilisation of the population.In addition, decreasing the restriction will prevent harm experienced by smallerlobsters.

The ecosystem approach to fishery

I have already alluded to the department's adoption of the EAF principle. This isvital for the sustainability of all species that inhabit the ecosystem shared by

Figure 5: Actual landings compared to TAC set. Duplicated from Cockroft & Payne (1999)


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the WCRL. Following this approach when designing policy for other speciesensues that recommendations do not have negative spill-over effects on theWCRL and vise-versa. The EAF is now accepted by scientists as mandatory(Cochrane et al. 2004; Cochrane et al. 2009; Garcia 2003).

Closed seasons and closed areas

There are protected areas in which WCRL are protected from fishing. Thisapproach is intuitive (protect the populations at greatest risk) and this offerspotential. For instance, Mayfield et al. (2005) found that the WCRL populationin the Betty's Bay reserve does benefit from protection. However, they foundthat other areas did not significantly harbour bigger and/or more lobsters thannon-protected areas. They conclude that these areas are poorly located. Arigorous study of more appropriate areas would allow for greater impact.

I can find no empirical data for the effectiveness of closed seasons butpresumably they are useful to allow stock to recover and protect lobstersduring the mating season to encourage procreation and protect vulnerableeggs. However, to the extent that closed seasons are used in an attempt toreduce catches, one should be sceptical, as this incentivises fishermen to exertmore effort and take greater risks, thus making the situation worse.

Gear restrictions

To the extent that gear restrictions are imposed in an attempt to restrictcatches, they are not likely to be effective. People tend to find their way aroundsuch restrictions by exerting more effort or upgrading gear that is not explicitly

prohibited. However, to the extent that these restrictions protect theecosystem, they are welcome. As mentioned above, the EAF implies that gearused to harvest WCRL should not damage other parts of the ecosystem. Usinglight hoopnets, for example, as opposed to heavier traps protects the benthos.

Examining future MCM strategies

Economic theory is clear that the optimal outcome would be achieved byappointing a monopoly, given sole right to harvest WCRL in the area. Thisalleviates the complications of private versus public good that characterisesuch tragedy of the commons problems. It would be in the monopoly'sinterest to maintain the resource at sustainable levels. However, the SouthAfrican government is clearly reluctant to take such a leap and it is thus notpolitically feasible (BCLME Project LMR/SE/03/03 2006). This has resulted in theneed for the less efficient methods mentioned above. Future strategies couldimprove current measures.

Transparency and education

The lack of acceptance by fishermen of MCM policy is one of the greatesthurdles in successfully managing the fishery (Cockcroft & Payne 1999). People

should thus be kept updated regarding WCRL statistics and related activities.Understanding the rationale behind the TAC and other policy measures, andbeing made to realise that such measures are in place to ensure the continued


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sustainability of the resource, will hopefully induce compliance. Education isvital in this regard. Fishermen need to understand the impacts of restrictedgear and pollution on the ecosystem and how this subsequently affects theirlivelihoods.

Monitoring, control and surveillance

Better policing in the waters, at port, and in related industry activities are ofutmost importance. Without effecting policing, all other measures aiming toensure sustainable precautionary management of inshore resources may provefutile." (Cockcroft & Payne 1999, p.598). The other measures rely onmonitoring, control and surveillance to ensure compliance. Records of WCRLsales should be accompanied by extensive paper trails in order to traceillegal transactions and the right to revoke licenses from poachers (provided inthe Marine Living Resources Act of 1998) should be strictly enforced (Shannonet al. 2006a).

More and better scientific research

Payne and Bannister (2003) cite scientific uncertainties as one of the mainfailures of Europe's fisheries management. It should be evident from the aboveanalysis that much is still unknown. For instance, the impacts of interactionbetween species and the and cause of low WCRL somatic growth rates are notwell understood. The more informed we are about such things, the better wecan plan to mitigate potential hazards and reverse negative trends. A further

need for more rigorous and sensitive scientific research is underscored by thefinding that that certain tagging methods can lead to lower somatic growthrates (OLRAC 2005). Such practices should be replaced by less harmfulalternatives.

Short-term replenishment initiatives

Strict short-term restrictions on WCRL fishing would be painful but researchsuggests that it would be very effect. A five-year moratorium on fishing wouldincrease biomass by 167% (Leiman & Harris 2009) , leading to a decreasedCPUE, and increase the number of bigger lobsters (which fetch a higher price

per kg).

A complete ban on WCRL fishing would be very unpopular, given theinvestments that companies have already made and the connection that localcommunities feel they have with the resource. However, a business-as-usualapproach will not reverse the obvious decline in stock and modest reductions inthe TAC will stretch out the recovery period over many years.

Policy recommendations

Given the above analysis, I offer the following policy recommendations:

Increase funding to improve policing and research


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Funding needs to be increased to improve monitoring, control and surveillanceand to enhance scientific efforts. At the moment, there is a levy on WCRLfishermen that supplies a fund used to cover MCM expenditure in this regard.This fund cannot sustainably be increased by increasing levies or taxation(DEAT 2007). A levy based on the value of catches will lead to a highly volatile

account and one based on weight would not be financially viable forcompanies. In addition, such increases in funding would crowd out NationalTreasury funding, which contributes most of the fund's resources.

Thus, the Treasury should be petitioned to increase its MCM budget, given thelarge commercial potential that the fishery represents if it can be effectivelyregulated, researched and policed in the future. Satellite accounts would allowa tangible value to be placed on the resource and this should incentivise theTreasury to cooperate.

Decrease TAC and remove fishing rights in the short-run

Fishing rights should be gradually phased out over the next five years, withpriority given to companies that meet strict equity and employment criteria inthe spirit of the Marine Living Resources Act of 1998. All but very largecompanies that meet the strict criteria should have their WCRL fishing rightssuspended after that period for the following seven years. Those that retaintheir rights should do so with a reduced quota.

At the same time, recreational and very small-scale fishermen should beallowed to continue harvesting WCRL, since they are the most difficult to

regulate and this is in keeping with the equity principle to which MCM iscommitted.

This is a radical recommendation and would likely be very controversial. Toease the transition, however, the following measures should be taken:

1. The department should seek loans and/or investment from private and/orgovernment entities for the expected future gains accruing to thereplenishment of the WCRL stocks

The satellite accounts proposed above could be used to predict commercial and

financial gains to the replenishment of the resource. Thus, loans could be takenout using by using the expected value embodied in the resource as collateral.Investments could be made by government or private entities. returns could belinked to biomass recovery and the expected income that the MCM couldgenerate through taxes, levies, and licensing permits when they are againgranted. As an indication of the potential, if the WCRL fishery is currently worthR260m (in terms of biomass alone), which is a modest estimate, a 100%increase in the biomass (and thus 100% increase in the total value attirbutableto biomass) will increase the value to R26b! Given that the five-year blanektmoratorium is expected to increase biomass by 167% over five years, a 100%increase over a seven-year period with a miinimal TAC appears realistic. Morerigorous and in-depth studies need to investigate this possibility.

A portion of the finances that the department raises from these efforts should


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be used to ease fishermens' transitions to other activies, by providing trainingand temporary support. In addition, a portion of the funds should be used tostrengthen policing and enhance scientific research, which would assist in thhlobsters' speedy recovery and ensure that the department is prepared for whenthe fishery is reopened for mass commercial exploitation.

2. The department should explore the possibility of hiring affectedcommercial fishermen and purchasing commercial assets by the

Personnel required for policing, research and other relevant activities should berecruited from affected fishermen that are unemployed as a result of thesemeasures. Ina ddition, equipment required, such as boats, motors, nets, andtechnology should be purchased where possible from affected companies atmarket price.

Devise a responsive action plan to save lobsters during strandingsand decrease TAC in such areas

A comprehensive plan should be designed and required personnel andequipment on standby to rescue lobsters caught in strandings (Shannon et al.2006a). In addition, TAC levels should accommodate such events and bedecreased where needed.

Run an aggressive education campaign

Commercial fishing companies and local community members should betargeted with a campaign to highlight the rationale behind, and the importanceof, conservation efforts.

Maintain satellite accounts and frequent updates of WCRL statistics

All interested parties should be kept up-to-date with the latest statistics, suchas biomass and changes in the levels over time. This can be achieved throughwebsites, email, printed newsletters, flyers and posters. This informationshould be widely available, easy to understand and transparent.

Satellite accounts should be maintained in the interest of transparency. Leiman

and Harris (2009) state that satellite accounts give all interested partiesinformation on the extent of stock depletion, past and present fishing effort,and the returns-to-effort reduction. They can also present the resource rentsgenerated from harvests and the value of the resource stock. These accountsshould increase compliance and provide a current estimate of the value of theresource.

Conclusion

References

BCLME Project LMR/SE/03/03, 2006. Micro-economic Systems Analysis of theBCLME Commercial Marine Fisheries,


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Cochrane, K.L. et al., 2004. An ecosystem approach to fisheries in the southernBenguela context.African Journal of Marine Science, 26(1), 935.

Cochrane, K.L. et al., 2009. Benguela Current Large Marine EcosystemGovernance and Management for an Ecosystem Approach to Fisheries in

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Cockcroft, A.C., 2001. Jasus lalandii'walkouts' or mass strandings in South Africaduring the 1990s: an overview. Marine and Freshwater Research, 52(8),10851093.

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Policy assignment 5

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