News Release
Office of the Official Opposition

   

 

Reid says province's fishing industry in crisis

September 16, 2005

Opposition Leader Gerry Reid says the fishing industry in Newfoundland and Labrador is reaching a crisis situation and many communities and workers throughout the province are beginning to suffer. Reid, along with MHAs Judy Foote, Percy Barrett and Fabian Manning, attended a meeting this afternoon in Clarenville with fish harvesters from Placentia and Fortune Bays who expressed their concerns about the future of the fishing industry in the province.

"After meeting with union representatives and fish harvesters from Placentia and Fortune Bays, it is obvious that there is a crisis in the fishing industry and rural Newfoundland and Labrador," said Mr. Reid. "The messages I heard today were those of devastation, outmigration and a growing crisis in the fishing industry. Fish harvesters and communities are feeling the strain of a fishing season that produced much less value than previous years and are now facing a dismal fall and winter."

According to union officials, the landed value of fish in this province is down approximately $200 million from last year. This translates into a drop of approximately $400-500 million in export value. In the crab industry alone, several negative factors were experienced that saw the market value of crab being lowered; a decreasing level of sales as a result of the high Canadian dollar; and the government imposed Raw Material Sharing (RMS) system that caused a labour dispute which shut down the industry for several weeks.

"While there are several factors negatively impacting the fishery, fish harvesters believe one of the biggest problems they currently face is the lack of collective bargaining. Currently, fish harvesters believe they are receiving an unfair price for their product. There is no mechanism in place that would resolve pricing disputes, except another strike that would shut down the fishery. Most in the industry agree this is not an option because of the devastation this would create for families and communities in the province.

"With all of these issues, it appears government is doing very little to help. No pricing dispute mechanism is in place and there does not seem to be any short-term or long-term plan to help the fishery in the province. It is imperative that government recognize the importance of developing a plan. In the short-term there needs to be some type of financial assistance that will help fish harvesters and the industry survive through this fall and winter. In the long-term there needs to be a strategy developed that will help rationalize the industry through early retirements and a buy-out of licences. To date, it does not appear the provincial government is willing to provide short-term aid, or lobby the federal government for an early retirement or buy out package for fish harvesters. Until there is action to address these problems, I fear the industry and workers will continue to struggle for their survival."

 

Media Contact:
Darrell Mercer
Director of Communications
Office of the Official Opposition
709-729-6151 or 709-687-0477