Tema, Oct. 3, GNA-Directors of fishing trawl companies have appealed to the Ministry of Fisheries and Aquaculture Development (MoFAD) and the Fisheries Commission to reconsider the 80:20 per cent cost-sharing arrangement for the implementation of the Electronic Monitoring System (EMS).
The companies, in a letter addressed to the sector minister and available to the Ghana News Agency (GNA), stated that “While we acknowledge the government’s commitment to sustainable fisheries management and its role in ensuring compliance with international standards, we believe that the current cost-sharing model poses significant challenges to the viability of our businesses and the livelihoods of thousands within the industry.”
They also proposed that fishing licenses should be issued while the two parties continued to deliberate on the issues pertaining to the EMS implementation, as trawlers are currently not operating due to the non-issuance of the licenses as the EMS is being used as a pre-condition for the fishing license issuance.
They explained that the development was negating smooth operations within the trawl sector, adding that, they had been very cooperative with the ministry and the commission in their joint efforts at reducing all incidents of illegal, unreported, and unregulated (IUU) fishing and ensuring sustainable fisheries aimed at conserving Ghana’s resources.
The trawl sector operators noted that within the last few years, the sector had seen a significant rise in cost, which affected their cost of operations and, concomitantly, the prices of fish.
“For instance, fishing license fees moved from US$35 per GRT (Gross Registered Tonnage (GRT) to US$135 per GRT. Taxes on fuel, port charges, and GMA (Ghana Maritime Authority) activities are all factors that are adding onto our cost net with no cushioning or any form of support from the state.”
The letter added that “as much as we wish to be monitored, we are aware that the responsibility is with the state as to the nature of monitoring. As an industry, we already pay for the cost of the Vessel Monitoring Systems (VMS), which is also part of the state monitoring regime. And voluntarily carry on our vessel’s observers. Our finding points to the fact that in the States, EMS are optional, which comes with incentives and not real-time, since real-time comes with huge airtime costs, paid to foreign entities while our citizens struggle with the cost of fish.”
They stressed that with the elevated operational costs, the long-term sustainability of the EMS programme is called into question, especially when a foreign entity takes up part of the initial cost of installation, a situation they noted that betrays the country’s resolve to do things for itself.
“Then the rest of the initial cost is split 80% cost burden on fishing companies and 20% support from the state (who owns the facility), which is substantially unfair to operators. This becomes a legacy burden that will require the industry to make annual payments for VMS at rates pegged to the US dollar, further weakening our financial position, and increasing our cost of operations. These include fuel, labour, vessel maintenance, and compliance with existing regulations,” they indicated.
They emphasised that given the current cost of operations, adding another expense would strain their resources beyond sustainable limits, adding that any increase in operational costs would inevitably be passed onto consumers.
“As fishing companies are compelled to absorb additional financial burdens, we will have no choice but to increase the price of fish to compensate. This will further exacerbate the already high cost of fish on the Ghanaian market, making it unaffordable for a significant portion of the population,” they stated.
The implementation of the 80-20% cost-sharing model for the EMS implementation, they said, would render it challenging, if not impossible, for the numerous small and medium-sized enterprises operating on narrow profit margins in the sector to maintain their competitiveness, which would lead to many of them facing closure, resulting in job losses and a cascading effect that would undermine the industry as a whole.
“If our operations are compelled to scale down or cease entirely, the impact will extend beyond the fishing industry, affecting the broader economy. The inability of companies to sustain their operations will lead to job losses, diminished fish supply, and an increase in imports of fish products, harming local businesses. As local fishing companies struggle to meet the financial demands of the EMS implementation, foreign companies may gain a competitive advantage, further marginalising Ghanaian companies within their domestic market,” the letter stated.
It added that this would lead to reduced self-sufficiency in the fishing industry, diminishing the country’s capacity to provide affordable fish to the public.
According to the trawl companies, they remain committed to sustainable fishing practices and are willing to collaborate with the government to explore practical solutions that protect both the industry and the interests of Ghanaian consumers.
GNA