No money for patrol boats
2006-11-03 14:38
Cape Town - South Africa's four new marine patrol vessels, bought at a cost to the taxpayer of close to half a billion rand, are spending more time in port then they ought to because Marine and Coastal Management (MCM) cannot afford to run them.
The new vessels, together with another four vessels operated by MCM, cost on average R690 000 a day each to keep at sea, and R220 000 a day to keep in harbour, Parliament's environmental affairs portfolio committee heard on Friday.
According to department of environmental affairs officials, the vessels now spend an average 175 days a year at sea, compared to an "optimum" 250 days. Also, some of the sea time is not in the service of MCM, but under charter.
Briefing members on the status of the Marine Living Resources Fund (MLRF), created to pay for the operating costs of the new vessels, Environment Minister Marthinus van Schalkwyk admitted planning at the time a decision was taken to buy them had gone awry.
"On the expenditure side, there we have the huge challenge of the vessels, and especially the operational costs."
This was a very difficult challenge, he said, seemingly laying the blame for the problem with the previous management of MCM.
"You receive advice and a model from people who are supposed to know what the costs will be, but it turned out that it was not the correct model that MCM relied on at that stage," Van Schalkwyk said.
Speaking at the briefing, his director-general, Pam Yako, said the MLRF was "not able to generate income that exceeds expenditure".
For every one rand earned [this year], 80 cents is spent on the [eight patrol and research] vessels. Fuel for the vessels comprises 60% of this cost," she said.
According to a document circulated at the briefing, fuel costs "increased by 192% over the past four years... [and] this could not be recovered from the industry".
Among the MLRF's revenue sources are levies on fish products, licence fees and the cost of permits.
The MLRF also generates money through the sale of confiscated abalone. It currently has R30m - about 80 tons of "wet" product - sitting in its warehouses, according to officials.
The fund has been lashed by the Auditor General over the past four years for its lack of internal controls; having no proper accounting or fixed-asset system; lacking historical data and supporting documentation; and insufficient control on debtors and income.
According to the briefing documents, Treasury has agreed to fund a R35 million "shortfall" for the vessels during the current financial year (2006/07). It has also "agreed to assist with vessel costs over the next three financial years".
Yako said this would amount to R68 million a year.
- SAPA