Following an urgent application
from the St Helena Fisheries Corporation (SHFC) to Executive Council (ExCo),
requesting additional subsidy to fund repairs to equipment in the Fish
Processing Factory, Elected Members instructed the formation of a Fisheries
Task Group. The Task Group was set up to undertake a review of the
current fish processing and sales on St Helena, and present an alternative
business model to ExCo on 29 October 2019. The key focus for the Group was to
produce a model that curtails the crippling losses incurred by the SHFC with a
view to reducing the subsidy provided to it by taxpayers.
Background
Over the last five years a total
of £1,387,000 has been provided as operational subsidy by Government to
the SHFC and the operation continues to report financial losses year on year.
The SHFC’s business model has been broken for some time but masked by SHG
paying out ever growing levels of subsidy to the fishing sector on an annual
basis. This is money SHG can no longer afford. The fish factory has not made
any profit for several years, it continues to build up ever-increasing losses,
in the forlorn hope that it just might earn some cash from overseas sales to
pay back the hundreds of thousands of pounds that have been sunk into the
venture. In 2019 alone in nine months of the financial year the SHFC has used
up a subsidy of around £450, 000 with nothing but even more losses to
show for it.
The time has come for everyone,
SHG, the SHFC, the St Helena Commercial Fishermen’s Association (SHCFA), all
Fishermen and every resident of St Helena to realise that this cannot go on. A
fundamental change in the system of fishing on the Island is needed with the
adoption of a business model that, at the very least, has a fighting chance to
break even. The SHFC and SHCFA have been asked repeatedly to propose,
individually or collectively, a better way forward and to date neither entity
has been able to produce a plan to address the serious losses.
In the absence of an alternative
model from either entity, SHG’s Task Group in October, put forward a draft
interim business model for a slimmed down fishing sector that has, as its first
priority, sustaining a supply of fish to the domestic market. The draft model
proposes an alternative interim business solution lasting between 6-18 months
focusing on providing the local market with fresh and affordable protein and
the possibility of fresh exports by air of premium grade tuna. The plan
depicts options for alternative revenue streams and options for cost reduction.
ExCo recognised the
draft business model was not perfect and improvements needed to be made if it
was to be acceptable. ExCo requested the Task Group to engage with the SHFC and
SHCFA, as well as individuals with an interest in fishing, to work together to
see if the plan could be improved. Targeted consultation is being carried out
with the SHFC (staff and members of Board), SHCFA and Fishermen. To date the
Task Group have met twice with the SHFC Board of Management and are awaiting
feedback as promised, they have also offered support to the SHFC Board of
Management for staff engagement.
The Task Group is
keen to meet with Fishermen to get their input, the Group would particularly like to
understand from the Fishermen whether there are any alternatives to some of the
assumptions proposed within the model. The Group recognises that the SHCFA is well-placed to work with SHG to help to build a more promising
business plan for the future, however to date the Task Group has not been
successful in securing a meeting with the Association.
The Task Group is
now extending an invitation to all commercial fishermen to
attend a meeting next Monday evening, 25 November 2019, in the Council Chamber
at 5.30pm, to meet with members of the Fisheries Task Group, Councillor Lawson
Henry and the Chief Secretary.
Copies of the draft Business Model are
available from the Press Office and any Fishermen requiring a copy should
contact: kerisha.yon@sainthelena.gov.sh or tel: 22368.
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SHG
20 November 2019
