Northern Shrimp Fishery: Offshore Initially developed through - - PowerPoint PPT Presentation

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Northern Shrimp Fishery: Offshore Initially developed through - - PowerPoint PPT Presentation

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Presentation to Ministerial Advisory Panel All-Party Committee on Northern Shrimp Allocations June 10, 2016 Northern Shrimp Fishery: Offshore Initially developed through foreign charters. Did not become Canadianized until the 1980s.

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SLIDE 1

Presentation to Ministerial Advisory Panel

All-Party Committee on Northern Shrimp Allocations

June 10, 2016

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SLIDE 2

Northern Shrimp Fishery: Offshore

  • Initially developed through foreign

charters.

  • Did not become Canadianized until the

1980s.

  • Offshore fishery developed in SFA 6 in the

1980s.

  • The offshore had sole access from 1977

to 1996 conducting its fishery mainly in northern areas.

  • During this time TAC increased from

8 200t to 37 600t

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SLIDE 3

Northern Shrimp Fishery: Inshore

  • NL inshore fishery dates back to the 1600s.
  • As cod resources declined, shrimp resources

increased.

  • Province advocated for inshore access to shrimp

fishery.

  • Inshore harvesters gained temporary access in 1997

to shrimp in the same areas where they had traditionally fished cod.

  • 2J3K is virtually the same geographical area as SFA

6.

  • Inshore harvesters have a centuries-old historic

attachment to fishing these waters.

  • Inshore harvesters granted regular permanent
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SLIDE 4
  • Newfoundl

dlan and a d and Labrad ador Adjac djacent to SF SFAs 4, 5 5, 6 an and 7 d 7

  • Offshore

hore ac access t to al all SF SFAs

  • Inshore a

acces ccess t to S SFAs As 6 6 & 7

  • SFA 7

A 7 cl closed 20 2015

Shrimp Fishing Areas (SFAs)

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SLIDE 5

Economic Importance of Northern Shrimp

  • The Northern Shrimp Fishery is a significant

contributor to the Newfoundland and Labrador Economy.

  • In 2015, the inshore and offshore sectors:

– Contributed $419 M in GDP; – Generated $196 M in labour income; and – Generated 2,054 person years of employment.

  • Resource declines will have a negative

impact.

  • Need a balanced approach that recognizes

the viability and contributions of both inshore and offshore sectors.

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SLIDE 6

NL Prior Response to Northern Shrimp Quota Reductions

  • Recognized the need for quota

reductions

  • Opposed to application of the LIFO

policy

  • 2014: Province established All-Party

Committee on Northern Shrimp Allocations:

  • Eliminate LIFO policy;
  • Establish a new sharing arrangement taking into

account adjacency and historical attachment;

  • Conduct full annual scientific assessments of
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SLIDE 7

Allocation reduction 2009 to 2015 by Sector under LIFO

  • Offshore: 73,700t to 62,900t (-14.7%)
  • Community: 28,000t to 26,000t (-7.1%)
  • Inshore: 77,000t to 31,600t (-59%)
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SLIDE 8

Northern Shrimp Allocation by Sector 1997- 2015

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SLIDE 9

Should LIFO be continued, modified, or abolished and why?

APC Position – Abolish because…

  • LIFO not used in other Canadian Fisheries
  • Ignores adjacency and inshore history
  • Doesn’t recognize DFO 2007 decision to

make inshore licences regular permanent.

  • Doesn’t recognize significant investments by

the inshore sector and the level of reliance

  • n access to shrimp.
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SLIDE 10

Abolish LIFO con’t

  • Ignores viability of the inshore fleet
  • Fails to consider relative mobility of the

fleets

  • Ignores availability of shrimp to the
  • ffshore in other SFAs
  • Does not consider impacts on rural

adjacent communities

  • Disproportionately impacts inshore

sector

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SLIDE 11

Resource sharing if LIFO continued

20,000 40,000 60,000 80,000 100,000 120,000 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Tonnes Year

Northern Shrimp Quota by Fleet Sector 1996 to 2016 under LIFO

Inshore Community/Special Offshore Threshold

Source: DFO (1996- 2015) *Assuming 50% reduction in SFA 6

*

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SLIDE 12

Projected Socio-Economic Impacts of LIFO Policy to Province NL- Inshore

  • Projected reductions of 35,681

t

  • GDP Loss $114 million
  • Labour Income Loss $68

million

  • Employment - Loss of 868

person Years

  • Impact 100 communities,

displace 160 vessels, 750 crew, 7 plants and 1000 plant workers

  • Lower municipal taxes and

less services

NL- Offshore

  • Projected reductions of

10,354 t

  • GDP Loss $34 million
  • Labour Income Loss $21

million

  • Employment – Loss of

271 Person Years

  • Displace 2 vessels and

108 crew

Pisces Report – Based on 2013 Data

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SLIDE 13

Socio-Economic Impacts of Shrimp Resource

  • Wade Locke Report - Commissioned

and Paid by CAPP

– Critiqued and refuted the Pisces Report – Argued that the offshore contributes more GDP/tonne than the inshore sector. – Recommended that the Province re-do the analysis

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SLIDE 14

Socio-Economic Impacts of Shrimp Resource

  • Department of Finance Calculated the Impacts of the

Shrimp Resource to Newfoundland and Labrador by Sector utilizing more recent data.

Value 2015 Impact per tonne Additional benefit from INSHORE Impacts Inshore Offshore Inshore Offshore $/tonne % GDP $217M $202M $6,040 $5,410 630 12% Labour Income $105M $91M $2,940 $2,440 500 20% Employment (py's) 1,321 733 0.03683 0.01959 88%

M= Millions py’s= person years

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SLIDE 15

GDP Impacts Per Tonne and Price Sensitivity

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SLIDE 16

What key considerations should inform the decision to abolish LIFO?

Principles

  • Adjacency
  • Historical Attachment
  • Fleet Mobility and Viability
  • Aboriginal and Community Participation
  • Economic Development
  • Maximize Employment
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SLIDE 17

What are the elements of a new access and allocation regime for the Northern Shrimp Fishery?

  • Remove Offshore from SFA 6

Other Examples: Sea Scallop on St. Pierre Bank Snow Crab in NL

  • Permanent Percentage Shares for All Current

Special/Community Allocation Holders

  • Decisions respect Land Claim Agreements
  • Consider social benefits of offshore licence

holders.

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SLIDE 18

Sea Scallop example

  • Access dispute on St. Pierre Bank
  • 2005 Hooley report:

– NL Inshore be provided exclusive access to northern bed (more adjacent). – Offshore exclusive access to middle and southern bed.

  • Recommendation accepted and

implemented by DFO

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SLIDE 19

3L Snow Crab Example

  • Near shore fishery developed by larger

inshore vessels in 1970s

  • Temporary access to smaller inshore

vessels in 1995

  • Temporary permits converted to

regular commercial licences in 2003

  • Smaller vessels provided exclusive

access to bays and nearshore areas.

  • Larger vessel access moved further
  • ffshore
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SLIDE 20

New Sharing Arrangement

20,000 40,000 60,000 80,000 100,000 120,000 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Tonnes Year

Northern Shrimp Quota by Fleet Sector 1996 to 2016 Inshore Harvesting Only in SFA6

Inshore Community/Special Offshore Threshold

Source: DFO 1996-2015) * Assuming 50% reduction in SFA 6

*

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SLIDE 21

Resulting Impacts

  • Achieves more balanced approach
  • Inshore fishery maintained in SFA 6.
  • Reduced impact for onshore plants and

associated communities

  • Offshore viability maintained through

continued access to areas north of SFA 6

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SLIDE 22

Resulting Impacts con’t

  • Special/Community/Aboriginal

allocation holders provided greater stability through permanent shares

  • Preserves ability of the adjacent

entities of the province to continue with needed social and economic development initiatives.

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SLIDE 23

Thank you