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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*Others refers to catches from outside station areas and catches brought to the main station of Samarai. Problems that occurred at Brooker in CBMMCA 3 had to do with pricing, absenteeism of MBFA personnel and a dispute over rental of land for the plant area. Kaumas (1982) writes after a patrol to Brooker . . . they only receive 30 toea for every kilo of fish they sell. They are totally dissatisfied with the present rate and felt very much exploited for such pricing. Absenteeism from the program was reported by Kaidadaya (1981) causing people to stop fishing. The Manilobu clan who have rights over the plant area were requesting 200 kina rent per year for the area. This problem over rents eventually shut the outstation down in 1989. It was finally recommended that the MBFA operation be commercialised by involving private enterprises. A joint venture could be established where much needed expertise is brought in (Maurice Pratley and Associates, 1989). The assets of the MBFA were later acquired by Nako Fisheries in 1995. Coral Sea Fisheries Coral Sea Fisheries started in 1993 under Clause 16.1 of the Mining Development Agreement with the National Government and Misima Mines Pty Ltd (MMPL). It agreed to encourage Local Business Development with shareholders from the Local Government Council areas of Yaleamba and the Louisiaides, the Misima Resource Owners Association and other landowners. The mission statement of Coral Sea Fisheries Pty Ltd was to advance the living standard of the people of the Misima District economically, technologically and personally through judicious harvesting of marine products (Stevens, no date: 1). When Coral Sea Fisheries was established, no other similar fisheries program had succeeded in Papua New Guinea (MBFA had already collapsed and it was thought Coral Sea Fisheries would outlast the life of MML. Patrols were carried out during the early 1990s to ask the people their opinions and to discuss various options with them (Stevens, 1992). It was found that fishing programs and access to the cash economy were strongly desired by the people because the demise of MBFA had reduced people’s ability to obtain cash. The mother ship Tologi (formerly Milford Crouch then Flinders Trader) cruised from island to island encouraging villagers to fish. The Tologi had a store on board and goods available for purchase included fishing lines, hooks, flour, rice, biscuits, soap, sugar, and other products. In this way, it was thought the island communities could earn good money, and participate as both shareholders and workers in the fishing venture (Misima Mines, no date). The fish purchased by the Tologi was exported overseas via Townsville, utilising the freezer containers that came to Poon Misima Catering. In its first year of operation, Coral Sea Fisheries exported over 1,000 tonnes of fish and paid local fishermen K165,000 (Misima Mines, no date). The main targeted area throughout the lifetime of the project was Brooker (CBMMCA 3) and the Calvados Chain. Table 55: Coral Sea Fisheries Export (Source: National Fisheries Authority)
According to comments by Queensland fish distributors in Cairns, Townsville, Mackay and Brisbane, there were problems of grading, undersize and species description. On one occasion, Coral Sea Fisheries was warned by authorities for taking undersize fish. (Mounsey, 1996; Elfin, 1997) All the problems that had occurred with MBFA in markets, transport, storage and handling, supply and demand and the company’s increasing debt were all serious issues confronting Coral Sea Fisheries. Resource potential, customary ownership, weather conditions, the prices paid to local fishermen, and environmentally friendly fishing methods were again also issues of concern. Mounsey (1996) writes that of February 1996, Coral Sea Fisheries had not purchased fish from local fishermen since April 1995, and had reduced fish prices paid to locals to such a degree it was not worthwhile for fishermen to sell to the company. At this time the operation had become totally dependent on lobster tails to maintain cash flow, and the best lobster grounds were located outside the program area. In February 1995 it was advised by the Captain of the Tologi that there was little Pencillatus ornatus left in the Calvados area. Coral Sea Fisheries was in operation from 1994 to 1996. When Coral Sea Fisheries finally closed it was estimated to be 1 million kina in debt. Recommendation: 19. Recognise problems encountered in previous fisheries development projects to avoid unrealistic expectations in business development and adopt a go-slow approach. Nako Fisheries and Kiwali Exports Nako Fisheries and Kiwali Exports were subsidiary companies of Masurina Ltd, which was founded in 1974. It grew into a broad-based, Alotau-located trading company, which has business interests in properties and real estate, finance, forestry, fisheries, construction, hotel accommodation and public works. Masurina's founders Chris Abel of the Kwato Abels and Jean Luc Critten parted company last year after a 26-year business relationship. Abel has taken over the accommodation and construction part of the business and retained the name Masurina, whilst Critten has busied himself with fulfilling his goal of turning the rest of the company into a solely fishing company, servicing all the fishermen of Milne Bay. [Nako] today is a fishing company. Its future is with thousands of Milne Bay fishermen who are looking for better market for their fish. Fisheries in Milne Bay is still very much undeveloped, and as [Nako] development policy has always been made with the aim of involving individual fishermen as much as possible, our development strategy in the next few years will focus on creating the infrastructure and means for village-based fishermen to harvest and market their own fisheries resource, for their own benefit. In the next few years, as we move into the 21st Century, [Nako] will truly become a Fishing Company (Critten, 1999). Kiwali Exports became a buyer of small amounts of bêche-de-mer as early as 1977. It is involved in buying and exporting dry marine produce, principally beche-de-mer and trochus shell, from village fishermen. Table 56: Exports (kgs) from Milne Bay by Kiwali: 1994-1998 (Source: Kiwali)
Nako Fisheries is involved in buying fish and crayfish from village fishermen. Previously they exported clam muscle. They also trawl for prawn in Orangerie Bay in partnership with the Nata Resource Owners. The Nata Fishing Company Ltd was formed by the Orangerie Bay landowners and land their prawns at Nako Fisheries Limited. Nako Fisheries was 50% owned by Nata Fisheries and the other half owned by Masurina Ltd with Masurina providing the backing for both companies to become established. Nako is also involved in longlining for yellow fin tuna. They process and market all of the above to domestic and overseas markets. Chilled yellow fin tuna and high value lines such as crayfish are exported overseas by air on regular charter flights, while most shipments within PNG are by the weekly Consort Shipping service. In 1997, with the sale of Maurina's hardware businesses to Steamships Trading Co. they were able to make substantial investments in their fisheries operations. Nako Fisheries was started in 1994 with a capital investment of K 4 million and by acquiring assets of the MBFA is now the largest fishing company in Milne Bay outstripping its nearest rival Asiapac. In 1998 the company continued with a capital development program aimed at upgrading standards and operating capabilities. These developments included improvements to the Nako fish processing factory and office, an extensive new slipway, and further equipment for the marine workshop. Nako now also operates a Marine Services Division, with a slipway and boat repair facility, and merchandising of marine items and chandlery to service the Nako and Kiwali fleets, and the general public. It has been proposed by Masurina that Nako Fisheries become the company vehicle through which broad-based fisheries development is to be pursued in the future. It has absorbed the fish trading business previously carried out by MBFA, in fact most of its equipment and personnel are ex-MBFA. Its aim now according to the Director is to establish a broad-based, privately owned, fishing enterprise, with a wide local shareholder base, including local fishermen, church, local government and other Milne Bay companies. For many people in remote areas, Kiwali and Nako, through their buying programs, offer the only source of cash income. This sometimes leads to the less than judicious harvesting of marine resources, and awareness needs to be imparted. Community regulations on the activites of these companies will need to be in place through the use of resource management plans to protect community livelihoods and to ensure continued benefits from the presence of these companies. Collaboration by CI with Masurina will need to be explored for the possible success of the MBP. Nako and Kiwali's fleets could be involved in extension work delivering management and quality control messages. Also, since the most detailed harvesting records will come from the receipt books of these companies, mechanisms could be put in place where all catches that are purchased by these companies could provide accurate data for the MBP CBMMCAs (see Kinch, 2001; Mitchell et al, 2001 for more details). Asiapac and Coral Sea Delights The National Fisheries Authority allows for the provision of three exporters in Milne Bay. Asiapac, which started operations in 1992, is the only other current commercial buyer licensed for Milne Bay and purchases shell, beche-de-mer and sharkfin. Previously another company called Crome Investments was exporting, but this ceased operations in 1996. Coral Sea Delights based at Misima was purchasing produce from CBMMCAs 2 and 3 and Zone 2 in 1998 and 1999. As its export license was based in Port Moresby, it has currently ceased operations under the new regulations imposed by the Milne Bay Beche-de-mer Management Plan (2000). Table 57: Exports (Kgs) from Milne Bay by Asiapac: 1994-1998 (Source: Asiapac)
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