The stance of the ministry is that the levy increase is justified, as the levies have not been adjusted in the last ten years. The industry on the other hand argues that the industry is relatively young and has not recovered the money spent on their investments. A source in the ministry said this week that Dr Iyambo will make a decision on the matter next week. The minister is believed to have agreed in principle that the concerns raised by the industry are valid. According to the source, the new fees were introduced partly because the horse mackerel industry has not followed the government policy of Namibianisation.
Inflation is the other factor that has led the ministry to come up with new levies.
According to the official, the counter proposal by the industry was being given consideration. The industry has argued that the weak South African rand and unfavourable weather conditions are some of the forces working against it. Further, the midwater industry has said that since horse mackerel is not lucrative compared to other species like pilchard and hake, the increase would further reduce their very limited profit margins. Horse mackerel is sold mainly in west Africa and the Democratic Republic of the Congo. Fear within the fishing industry is that if implemented, the new fees would drive away the foreign companies, which are mostly Russian and Moroccan owned.