KARACHI: Proposal to increase rent rate rejected: Fish harbour facilities
By Latif Baloch
KARACHI, Jan 4: The provincial government has disagreed with a proposal to review its earlier decision to increase the rent rate charged on facilities available at the Karachi Fish Harbour, it is learnt.
The proposal was made by the Fishermen’s Cooperative Society as a compromise formula to resolve the over a decade-long contentious issue.
It had been submitted to the then governor on Oct 6, 2000, after a decision of a joint board meeting between the FCS and the Karachi Fisheries Harbour Authority.
Rejecting the petition, the governor maintained that the decision to increase the rent from Rs250 to Rs622 per square-yard annually, instead of Rs1,000, had been taken in a meeting on May 19, 2001, which was, among others, attended by the FCS chairman himself.
It was, thus, subsequently approved and hence the call by the joint board to reverse the decision would not be possible, the governor added.
He was of the view that the income amounting to Rs130 million earned by the FCS during the financial year 2001-2002 from the auction, using facilities of jetties, auction halls, etc., belonged to the Karachi Fisheries Harbour Authority.
Thus, the payment of rent at Rs650 per square-yard per annum, which is slightly over Rs15 million or roughly 12.13 per cent of the total income of the FCS, did not seem to be higher.
A senior FCS director said that the matter regarding the ownership of harbour land and other facilities was still pending in the court.
According to him, it would be premature to say or comment on this “sensitive” issue unless the question of assets and other related issues, which was the root cause of the dispute, was decided. Thus, all other subsequent issues are immaterial, he added.
The dispute on sharing of income from commission earned from the auction of fish catch and fixation of rent on available facilities at the harbour has been lingering between the FCS and the KFHA for a long time.
The KFHA was created by the government of Sindh through an ordinance in 1984, under which all affairs of the harbour were to be regulated by the Authority. In 1995, the government transferred all land and water areas within the harbour to the KFHA.
An amendment to the ordnance was made in 1996 and approved by the provincial assembly, whereby the number of directors of the KFHA board was increased from 11 to 15 and nominees of the FCS was reduced from 6 to 5.
In a notification on Nov 11, 1996, the government directed the KFHA to enter into a lease agreement with the FCS in respect of fish marketing auction halls at the harbour.
The agreement was to be executed for six months at the initial period which was to be renewed for another six months, keeping in view the satisfactory performance of the management of operational activities and hygienic conditions as required by the European Commission.
The FCS was required to pay 3.125 per cent (50 per cent of the commission collected by them through the mole-holders) to the KFHA.
The notification was, however, not honoured and the FCS filed a constitutional petition in the high court which is still pending.
Thereafter, on Oct 6, 2000, a joint meeting of the board of directors decided that the FCS would withdraw its petition and in return the KFHA would give up its demand for 50 per cent share of commission from the FCS.
It was further decided that the FCS would be treated as a lessee of the KFHA and would enter into a lease agreement with the KFHA for an area measuring 24,102 square-yards at the rate of Rs250 per square-yard per annum.
In response to the decisions of the joint board meeting, the government issued a notification modifying the previous notification and directing the KFHA to enter into a lease agreement with the FCS in respect of a 24,102 square-yard area for 15 years at Rs650 per square-yard per annum instead of 50 per cent of 6.25 per cent - ie 3.125 per cent commission with subsequent enhancement as regulated by the rent regulation of the government from time to time which may be renewed with mutual consent of both the parties and the government.
According to a KFHA source, it is up to the FCS to honour the decisions taken at the highest forum. He said the KFHA had undertaken a shrimp-peeling complex at a cost of Rs25 million as required by the European Union.
