Livestock & Feedstuffs

Higher loan funds can 'help fishermen, save resources'

Officials have proposed to triple a government loan fund to help local fishermen switch to sustainable fishing and aquaculture.
The proposal comes amid an alarming decline in the catch of fish over the past 15 years. The Hong Kong fishing fleet's haul was 224,000 tons in 1990 but had fallen by more than 27 per cent to 162,000 tons by 2005.
Increased competition from mainland fishing vessels too have added to the plight of Hong Kong fishermen, Health, Welfare and Food Bureau officials have said in the fund request to the legislature's Finance Committee.
About HK$190 million more is required for the Fisheries Development Loan Fund if fishermen's needs are to be met, they have said in the proposal that will be examined on June 9.
The loan fund, with a start-up capital of HK$100 million, has a balance of only HK$28 million.
Democratic Alliance for Betterment and Progress of Hong Kong (DAB) lawmaker Wong Yung-kan, elected to the Legislative Council by the agriculture and fisheries sector, welcomed the proposal, saying that for long that had been demanded by the industry. "It is welcome in principle but we need to clarify further issues such as the government policy direction and assets to be mortgaged for the loans," Wong said.
According to the government data, the declining fish catch and competition from the mainland have dwindled local fishermen's profits from an annual average of HK$336,000 per vessel (for pair trawlers) in 1996 to HK$135,000 in 2004.
"Some fishermen, particularly those operating trawlers, have expressed interest in switching to other types of sustainable fisheries business. We support this change because it would help conserve marine resources," the government paper says.
Fishermen could, however, borrow from the government loan fund to promote fishing development such as offshore fishing. But the paper says the fund does not provide for the development of non-fishing sustainable operations such as aquaculture.
It is suggested that additional investment into the loan fund, low-interest loans at a compound rate of 2.5 per cent can be given to fishermen to encourage them to switch to sustainable modes of operation. The target could especially be those operating trawlers because they put the greatest pressure on local marine resources.
Commenting on the proposal, Wong said over the phone that it was important for the government to clarify its policy.
"It needs to devote more resources to the trade" he said. So handing out "piecemeal" loans would not achieve the purpose.