Pro-Rata Fish Quota Allocation Criteria for MFMR Feb. 2016

Criteria Pro-Rata Fish Quota Allocation MFMR Feb. 2016

Criteria on Quota Allocation (Art. 33(4)) When considering an application for a right or during quota allocation, the Minister may have regard to: 1. 2. (a) whether or not the applicant is a Namibian citizen; (b) where the applicant is a company, the extent to which the beneficial control of the company vests in the Namibian citizens; (c) the beneficial ownership of any vessel which will be used by the applicant; (d) the ability of the applicant to exercise the right in a satisfactory manner; (e) the advancement of persons in Namibia who have been socially, economically or educationally disadvantaged by discriminatory laws or practices which were enacted or practised before the independence of Namibia; (f) regional development within Namibia; (g) co-operation with other countries, especially those in Southern African Development Community; (h) the conservation and economic development of marine resources; (i) whether the applicant has successfully performed under an exploratory right in respect of the resource applied for; (j) socio-economic concerns; (k) the contribution of marine resources to food security; and (l) any other matter that may be prescribed. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

The Criteria Nothing new Objective: Comprehensive operationalization as per the Act The three issues: 1. What exactly does each criteria mean? What does it include? 2. What is the weight of each criteria relative to the other criteria? Equal? Not equal? (which is more important than which? The Formula? 3. How can each criteria be measured? What will count in the evaluation? How will the information submitted by companies be validated?

The process of determination 1. Open and frank stakeholder consultation Clarifications on criteria All views considered Different scenario of possible weights on criteria discussed 2. MFMR analysis and development of formula and mechanism evaluation 3. Round 2 consultation with industry On the formula 4. Gazettement 5. Implementation

The Criteria Step by-step 1. Whether or not the applicant is a Namibian citizen; 100% Namibian shareholding carries more weight than less than 100% Namibian shareholding Weights? Gender balance, youth, disabled, veteran status Where the applicant is a company, the extent to which the beneficial control of the company vests in the Namibian citizens; 2. extend to which beneficial control Shareholding? management benefits? Corporate governance issues? The beneficial ownership of any vessel which will be used by the applicant; 3. beneficial ownership : vessel is key in fishing Flag status only? Nationalities of vessel owners? Proof? Over capacity issue? Creative sharing issues?

Criteria cont 4. The ability of the applicant to exercise the right in a satisfactory manner; The capacity issue: knowledge/experience? Vessels/facilities/infrastructure? Money/capital? Returned quota issue 5. The advancement of persons in Namibia who have been socially, economically or educationally disadvantaged by discriminatory laws or practices which were enacted or practised before the independence of Namibia; Basis: those disadvantaged by discriminatory laws Regional considerations?

Criteria cont 6. Regional development within Namibia; Equal consideration of all regions or criteria based on ? Examination of regional representation within each shareholding? Windhoek? Regions? Tribe? Residence?: economic impact 7. Co-operation with other countries, especially those in Southern African Development Community; The bilateral quarter How many per fishery? A ceiling on maximum bilateral quota?

The Criteria Cont 8. The conservation and economic development of marine resources; Balancing conservation and economic development Guidelines? Affects TAC setting. Quota allocation also? 9. Whether the applicant has successfully performed under an exploratory right in respect of the resource applied for; Criteria limited to rights allocation only and not quotas?

Criteria Cont. 10. socio-economic concerns; Definition of socio-economics: how economic activity affects and is shaped by social processes A. Employment Direct Indirect? Compliance to labour standards and laws/ OHS , . training Measuring employment numbers? Quality? Payroll? B. Income tax payment Amount of income tax paid by companies A. Value addition skills transfer direct Indirect? Measure: ectend of transformation? Number of jobs per MT? Preferential Procurement Local or import A. Investment direct Other development -Linkages with other sectors of economy Measure: sustainability? money? Jobs? B. Corporate Social responsibility As part of business? Non associated CSR? Measure: number impacted? Money?

Criteria cont.. 11. The contribution of marine resources to food security. Proportion of fish sold locally? Empowerment of local SMEs Contribution to food banks? Other Direct food security interventions by companies? 12. Any other matter that may be prescribed. Any other matter

Valid criteria for quota pro-rata Which ones and why? Any ranking? Possible weights?

Criteria for quota allocation Weight Overall (%) Company performance (%) Criteria 1 whether or not the applicant is a Namibian citizen 2 where the applicant is a company, the extent to which the beneficial control of the company vests in the Namibian citizens; 3 the beneficial ownership of any vessel which will be used by the applicant; 4 the ability of the applicant to exercise the right in a satisfactory manner 5 advancement of persons in Namibia who have been socially, economically or educationally disadvantaged 6 regional development within Namibia 7 socio-economic concerns; 8 the contribution of marine resources to food security;

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