US tuna fleet could lose Pacific fishing licence for 2016

Transcript

The chief executive of the Parties to the Nauru Agreement says the US tuna fleet has until the end of the month to pay up or lose its fishing licence.

 Under the vessel day scheme agreement the fleet has to pay US $17 million dollars per quarter for fishing days but it may come up short for its payments for the first quarter of 2016.

Transform Aqorau told Koroi Hawkins the shortfall stems from an internal issue which could see the entire US fleet without licences in the start of the New Year.

TRANSFORM AQORAU:  What is happening is that there is a component of the US fleets that are in economic dire straits because they actually have older boats they have inefficient boats and their patterns of fishing is they land their fish in American Samoa but these are older boats therefore the problem with the US is an internal problem in that they are not able to afford the days that they asked the PNA to provide. The Pacific Island parties have said that in their most recent response to the US is that they signed an agreement with the United States government for a certain number of days to be given to the US and those days were actually demanded or requested by the United states and after making that commitment and after allocating with great difficulty being able to find those days. The US have now turned around and said they cannot pay. And so the situation as we stand as we approach the 31st of December a quarterly payment of 17 million there is going to be a shortfall because one element or component of the US fleet is not going to be able to pay their contribution to make up for the 17 million quarterly payment.

KOROI HAWKINS: Are there penalties for defaulting?

TA: At this point in time no, there is no, there are no penalties for defaulting but I think it puts the US fleet and the government in a very bad position. It shows that they are not a very reliable business partner to conduct your business with. It also holds to ransom those components of the US fleet that are willing and able to pay. And if they are not able to pay the full amount for what they are obliged to pay and then maybe they are not going to be given a licence so you might end up with a situation in which the entire US fleet is not fishing in Pacific Island countries.

KH: Has this ever happened before, How do you see it being resolved and what does it mean for the future of negotiations?

TA: Yeah it did happen, in this quarter, this final quarter for this year they almost defaulted in their payment. So the Pago Pago based fleet the Cape Cod boats had to take out a loan to balance the payment so it doesn't come as a surprise that they are in that situation. So PNA would probably be happy to take back those days eventually and sell them and trade them and auction them because the demand for days are still there and I think the PNA is pretty relaxed but disappointed.