Social Evaluation Study for the Milne Bay Community-Based Coastal and Marine Conservation Program png/99/G41 Jeff Kinch April 2001 unops contract for Services Ref
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Recommendation: 18. Recognise the impact of the Misima Mine Closure and the consequences that this will have on the capacity of Local Level Government and portions of CBMMCAs 2 and 3. Support any plans by MML that contribute to LLG strengthening, food security and general welfare of communities and the environment. Summary and Conclusion The local requirement for cash is growing rapidly. It is now becoming necessary for acquiring foodstuffs, health care, and school fees, but also for the more traditional obligations. Copra was previously the main income for most island communities. This has changed with fluctuating and depressed prices and senescence of plantations. The market for non-perishable marine resources like beche-de-mer and trochus shell has increased to fill the gap of copra, and at present they continue to be one of the few reliable sources of cash for communities. In fact, more communities are now participating in this activity. The challenge for all levels of government and the MBP is to prevent the degradation of these resources through appropriate community management. This will help prevent the gradual slide into material poverty and resource degradation by communities in the CBMMCAs and the subsequent threat this poses to the protection of Milne Bay's biodiversity. Cash flow at the village level is reliant on the villager earning money and then spending it at home. Local demand for cash is generally highest in the January to May period. This is traditionally the time of food scarcity, often worsened by frequent droughts and cyclones. Also school fees and other debts particularly credit at tradestores, contribute to an increase in the sale of marine produce. With increasing monetisation of the rural economy and the growing consumer aspirations of the population at large, the nature of environmental values is changing. Over the past years, there has been a gradual shift in consumer orientation away from what the environment can provide. Money has come to be seen as the key to a better life, new opportunities, a means to meet one's obligations, and a source of social status. The result of this is that the environment now becomes valued insofar as it can provide financial rewards and better services to people. Traditional ways of relating within the family and the broader community are being challenged by the new values associated with modernity and the greater dependence on the cash economy. As a consequence, mortuary feasts have become more expensive exercises and thus an increasing burden to those with minimal or no access to the cash economy. Money in some areas is becoming more important than relationships with others and increasingly barter trade is declining in favor of cash-orientated transactions. Rice and flour are becoming major staples for communities within Zone1. In the last three years there have been significant increases in the prices of other commodities. This is linked to the recent devaluation of the kina over the past year which means that the price of exported goods has increased since the 1996 Real Domestic Factor Index was measured. This has further reduced community access to exported foodstuffs and other necessities. The inflation rate has risen to 20% in the year 2000 mostly reflecting the decrease in the exchange rate and the associated added costs to imported goods. From 1994 to the first six months of 2000, the kina has seen a reduction to 43% of its former value in 1994. Over the same period, inflation has decreased the purchasing power of 1994 to 45% of its former value (Mitchell et al, 2000). This has forced some goods to increase in value by around 50% to 100%. Higher prices reflect not only the increased cost of the goods in kina, but the increased costs of the transportation required to deliver the goods to the trade stores. Inflationary pressures resulting from the added costs of consumer goods and from a low exchange rate are likely to add harvesting pressure on marine resources. Chapter 9 The Fisheries Sector Summary History of Commercialisation Given the proportionately large area of reef present in Milne Bay, the marine resource in the Province represents a substantial portion of the total resource potential in Papua New Guinea. These resources are important socially because they contribute directly to the peoples in the CBMMCAs in terms of employment and food. Initially, it was the marine resources of the reefs of Zones 1 and 2, which attracted foreign interest in the mid-19th century. Chinese beche-de-mer traders were among the first foreigners working in the Engineers (CBMMCA 2), bartering with Tubetube people for beche-de-mer, pearlshell, and other shells, and employing some men as both assistants and divers (MacIntyre 1983a). The local inhabitants avoided the pearlers and beche-de-mer gatherers because they had a reputation for mistreating the islanders, and trading in these commodities did not take place until a later date (Milne Bay Rural Development Study, 1981a). During the 1880s, the CBMMCA 3 was visited by considerable numbers of foreign boats seeking pearlshell and beche-de-mer (Roe, 1961). During the 1940s to mid-1950s, shells of customary value in inland PNG (small cowry and pearlshell in particular) were harvested for use by Europeans for trade in the highlands (Toogood, 1947). This trade continued up until the mid-1950s. There was some purchasing of beche-de-mer during the 1970s to 1980s by the operator of the Nivani Plantation. From the late 1960s to 1981 (peaking in the mid-1970s), foreign fishing boats, notably from Taiwan, were illegally active in the area. Despite their illegal presence, Brooker and Motorina people worked with them in return for scarce supplies. During the 1980s, the main presence was the Milne Bay Fishing Authority (in association with the IFAD Artisanal Fisheries), which, after ceasing operations on Brooker in 1989, finally wound up in 1990 (Kinch 1999). Two previous unsuccessful fishing operations existed in the Louisiades: the Nimoa Fishing Association, which ran from 1969 to 1973; and the Louisiade Fisheries (1975-1977). Both of these were based at Sudest in the east of the archipelago, the latter being a Catholic mission initiative. Louisiade Fisheries was planning to involve the people of Sudest, Calvados Chain and the Renard Group. Its objectives were (i) to promote the economic and social welfare of the indigenous people of the Misima Administration Sub-district; and (ii) to promote, organise and regulate the taking and marketing of fish and marine products. A smokehouse was planned for Brooker (CBMMCA 3) (Louisiade Fisheries, 1972). These programs failed due to a lack of funding. The commercial buying of marine products seriously took off in the 1980s in the CBMMCAs, firstly with the Milne Bay Fishing Authority (MBFA). For the Calvados area, Coral Sea Fisheries was active from 1994 to 1996; and two local buyers on Misima during 1998-99. But the main actors in the late 1990s have been the two subsidiaries of the Alotau-based Masurina Company, Nako and Kiwali, which have been buying and exporting marine produce. Asiapac is also active in the area. The entry of China into the free market economy and its great rate of industrialisation and concurrent increase in wealth and purchasing power have vastly increased the demand for seafoods and other marine products, with significant impacts on the demand for exports and on prices. This provides both threats and opportunities to the MBP. Poor management of valuable marine resources will lead to decreased production affecting both food security and national wealth. Good management will mean that high valued stocks will be available for export, bringing increased prosperity and food security (see Munro, 1997). The Milne Bay Fishing Authority The Milne Bay Fishing Authority (MBFA) grew out of fisheries extension activities of the fisheries division of the Department of Primary Industries in the 1960s. In 1976 the program attracted aid from New Zealand and its basic operational structure was established, setting up depots around the Province. The creation of MBFA amalgamated the previous provincial extension effort with national government marketing endeavours in a single statutory corporation and was established by the MBFA Development Authority Act 1980 which was passed by the Provincial Government Assembly in 1981 (Maurice Pratley and Associates, 1989). The new Authority’s objectives are (i) to provide marketing outlets for fishermen, particularly in remote areas; (ii) to provide training to young Papua New Guineans in fishing technology, boat building, maintenance and other related skills required for fishing; (iii) to provide fisheries extension services throughout the Province; and (iv) to provide technical advice on fisheries development and management and assist in surveillance of fisheries resources (ANZDEC, 1995). The MBFA was set up for fresh fish marketing with a small volume of beche-de-mer and other shells being purchased. A Fisheries Station was set up on Samarai in 1980 under the Coastal Fisheries Development Plan, and was established around a flake ice machine, refrigerated and frozen storage facilities, and a blast freezer. This station was actually built in the earlier 1970’s under the old Department of Agriculture, Stocks and Fisheries. The Authority operated fish processing facilities, and maintained out-station fish collection centres at Vakuta and Isaelia in the north, and at Brooker (CBMMCA 3) and Tagula in the south (ANZDEC, 1995). A freezer plant was also constructed at Bwagaioa on Misima. This closed in 1983. The Coastal Fisheries Development Plan premise was that there were sufficient stocks of fish and marine invertebrates in each fishing station area to supply the needs of the station without adversely impacting upon the food needs of the village people or the long-term productivity of the waters. The plan offered as substantiation for its basic assumption the fishing effort employed by the (illegally fishing) Taiwanese in Milne Bay coastal waters. However, the Taiwanese efforts were not guided by either of these concerns and many of the reefs fished by them were depleted of marine resources. Data gathered by the Provincial Government from a coral survey (Chesher, 1980) did not support the assumption of large surplus quantities of fish. In addition, it was suggested that there were insufficient numbers of fishermen in the selected area to supply the needed effort for an economic through-put of fish. Other problems highlighted were conflicts concerning the traditional ownership of the reefs (Department of Primary Industries, 1981). High staff wages costs, an absence of accounting and budgeting systems, absenteeism, misappropriation of funds, and a breakdown in organisational structure finally contributed to the demise of this program (Maurice Pratley and Associates, 1989; ANZDEC, 1995). There was substantial overcapitalisation in plant and equipment, and overstaffing. In addition, the program also had to carry out a range of extension, training and other subsidised activities of a non-profit kind (ANZDEC, 1995). The bulk of the fisheries product comprised low-value reef fish which, when sold, failed to generate enough income to cover purchasing, transportation, processing, and marketing costs. Holding stock was limited to one or two species. Resource rights were also another problem. There was opposition from villagers over the artisanal prawn trawling in Orangerie Bay and the clam fishery. Finally added to this was a lack of protection by the government in the areas of illegal fishing, buyers from other Provinces and no strong policing of Government policies (Maurice Pratley and Associates, 1989). For the first two or three years, the Authority functioned with the support of government funding. From 1984 onwards, additional capital was injected by way of the IFAD Artisanal Fisheries Program (ANZDEC, 1995). In 1985 and 1986, IFAD funding was over K500,000 (Maurice Pratley and Associates, 1989). The program was wound up in 1990 eventually costing around US $12 million (ANZDEC, 1995). Whilst it was in operation, the average volume of fish processed by MBFA during one month was approximately 10 tonnes (Maurice Pratley and Associates, 1989). Product was sold within Papua New Guinea mainly at Port Moresby with marketing being carried out mainly by IFAD. Brooker (CBMMCA 3) was the most productive of all outstations. Table 54: MBFA Fish Collection (kg) by Outstations: 1985-1990 (Source: National Fisheries Authority)
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