Fish, seafood prices to skyrocket

The goverment's 'arrogant dismissal' of pleas to rescind its decision to abolish fuel subsidies will be the death of the local fishing industry, says an industry source.

KUCHING: Switch to meat, if you must, as prices of seafood here and in the peninsula are expected to soar skyhigh this month following a decision by deepsea fishermen to stop fishing.

The fishermen, who operate C2 trawlers nationwide, are boycotting the sea in protest against the government’s decision to pull back their fuel subsidies.

(C2 operators are allowed to fish 30 nautical miles off the Sarawak coast.)

The latest group of fishermen to announce their boycott are from in and around Kuching.

Despite widespread appeals from fishermen and other affected groups, Domestic Trade, Cooperatives and Consumerism Minister Ismail Sabri Yaakob reiterated on June 3 that the government had already enforced the subsidy cut on June 1 as planned.

Following what was seen as the government’s “arrogant dismissal” of their pleas, the Kuching Trawlers Association and its members unanimously decided on Saturday, during a meeting, to stop going out to sea for a month.

The move was in line with calls by its counterparts nationwide to launch a boycott.

The Perak division had earlier announced a boycott to take effect on June 11.

It is learnt that several other divisions in peninsular Malaysia will also hold similar boycotts between June 11 and 13.

It was also learnt that the Kuching division will be meeting with MCA president Dr Chua Soi Lek next month for a solution.

Bleak future

An industry source said that the government’s refusal to listen would be its downfall.

“I think everyone is shocked that the government is not listening to our pleas. We have warned them of serious repercussions.

“We are Malaysian fishermen but we are already competing with foreign trawlers with C2 licences.

“These foreign trawlers also enjoyed fuel subisides. Revoke their permits and subsidies. Why touch us?” he said, adding that there are some 280 foreign trawlers.

The source added that the future was bleak now for deepsea fishermen in Malaysia given the dwindling catch in recent years and competition from foreign trawlers.

“Most of us will eventually have to switch vocations,” he said.

Earlier this week, Kuching division secretary, Tan Boon Ting, said that cutting fuel subsidy “should not be taken lightly.”

“If the cut is in place, we will have to pay an extra RM10,000 per trip. It is impossible for us to absorb this extra cost.

“If we do that, members will have to adjust the price of fish and the consumers will pay higher prices.

“And it will have serious repercussions on the fishing industry.”

There are 101 Malaysian trawlers operators in Sarawak with C2 licences.

Abolish subsidies to IPPs

Until May 31, 2011, the C2 trawler operators received a subsidy of 28,000 to 30,000 litres of diesel at RM1.25 per litre per month.

But, according to Sarawak Fishing Vessel Association chairman Ha Tung Ting, the removal of subsides now means the operators will have to pay RM1.90 a litre.

“It’s just too much for us to bear. It would mean an additional cost of as much as RM20,000 a month,” he said.

Ha had at the time said that they would be urging Deputy Agriculture and Agro-based Industry Minister Chua Tee Yong to help rescind the decision.

The C2 trawlers and nine other logistic-related groups are affected by the withdrwal of super subsidies for fuel.

The move, which the government said would save it RM659.30 million, was necessitated by the global increase in fuel prices, a view which has come under heavy fire from the opposition and consumer groups.

Groups opposing the cuts have urged the government to abolish subisides to Independent Power Producers (IPP) and AP (approved permit) holders.

Meanwhile, lorry operators in Sarawak, who are also affected, have said that they will raise transport charges from 20% to 30%.

With the subsidy cuts, all the affected operators now have to purchase the fuel at RM1.80, instead of RM1.48 per litre.

The RM659.30 million in saving will result in the cost of food rocketing in already expensive Sarawak where salaries don’t match those in Kuala Lumpur.