Fishing boats are lined up along the wharves in Jerseyside.

Transcontinental Media "It's going to be a tough world to be doing business in, no matter what your line of business is." That's Earl McCurdy's summation of the year ahead.

The president of the Fish Food and Allied Workers (FFAW) union says industry and government must work together to plan the best approach to what might be a difficult year.
"We think it would be folly to sit back and wait to see what the world is

FOR THE SOU’WESTER

Going to be like in April.

"We need to consider our options here," he says, noting that all over the world, governments have been responding to particular problems in particular industries, putting out unprecedented amounts of money to try to ease the flow of credit.

"The fishery is no different in needing a boost."

The fishery was worth $1-billion in new money to the provincial economy last year in terms of what was landed at the wharf and how much was processed and exported.

Yet with the world in a recession and the impacts being felt on practically every industry; and with consumers likely to spend less on non-essential items in the new year, those involved in the fishery are pondering what this year's season will mean.

The first hint of what may be to come was in Nova Scotia in December, with lobster prices falling to just over $3 a pound, making it impossible for harvesters to record a profit.

Processors are also anxious, wondering if their financial backers will be willing, or able, to extend operating lines of credit this year.

"It is worrisome when you have the kind of downturn that's currently going on, pretty well all over the world. That's serous stuff," says Earl McCurdy.

There are some silver linings among the clouds, however. The drop in oil prices may mean lower operating costs for fish harvesters. And the currency exchange rate is much more favourable for Canadian exporters, making Canadian fish products a little more financially palatable across the border.

Still, McCurdy says governments can help get the industry through the upcoming rough patch; from simple solutions like lowering the cost of licences and fees, to more radical approaches, like offering cost-shared programs to allow the industry to rationalize.

Finding solutions

Tom Hedderson is the province's newest minister heading the fisheries portfolio. He took on the post in October. Heading into 2009, he says the challenges are no different than in others years.

"If there's any changes in our ability to harvest or our ability to supply the markets, that's going to be problematic," he says, adding, "but I'm optimistic."

He notes the fishery renewal process, currently underway, "covers a lot of the aspects of the industry which will bode well in any time.

As for the fishery renewal process, Hedderson says, "Combining of enterprises is a big key to it.

"We're looking at trying to put some money into innovation; and we're looking at adjustment with regard to when plants close down. So these are areas that we are looking towards, trying to make the industry the industry it can be."

The provincial minister says it's essential that enterprises can combine. However, he acknowledges, the challenge for enterprise owners is finding the financial backing to purchase a second license.

"We committed to moving forward with the federal government in trying to ensure fishers had the ability to be able to do the combining. But right now there are a lot of concerns expressed by the harvesters as to the buddy-up system is gone, combining of licences is not as simple as some would like it to be."

McCurdy agrees rationalization can't proceed without financing. He also points out that during the provincial election campaign, the Conservatives committed to providing financing for a licence purchase program.

Ottawa, however, has not shown any interest.

McCurdy says one of the things the FFAW suggested to provincial minister Hedderson, when they met with him in December, was that the province take the money it was prepared to spend on a federal-provincial program and go ahead with its own cost-sharing program for harvesters who want to purchase licences.

"That's one of the things that can be done to facilitate rationalization."

Hedderson, meanwhile, says, "We'll have to see what's required and what part we can play in it."

If few fishers are in a position, financially, to purchase additional licences under the licence combination policy, Hedderson says the buddy-up system might be the way to go.

That option, whereby two fishers can team up in one boat to harvest catch, has been available for the past two years. The federal Department of Fisheries and Oceans (DFO) says that option won't be available this year, at least not to the larger boat fleets.

"Under fisheries renewal we are supportive of combining, and with regard to the buddy-up system, it sees to have worked in the past," Hedderson says. "Some of the detractors talk about rent extraction, but they don't realize that recruitment of crews is a big thing, especially in some of our smaller communities. It's getting extremely difficult for people to execute a season, so it (buddy-up) seems common sense," he says.

"But in going forward with a position we want to make sure we are looking at all aspects of it, and presenting the case that's really going to get us to where we need to be, which is rationalization."

As for a retirement package for plant workers, Hedderson says, "we've tried every which way to try to have the federal government engage with us. We've continued to lobby for it but it seems they're not interested.

"So we have to re-evaluate where we're going."

Crab has been the mainstay of the fishing industry since the cod moratorium. However, the projections for the crab stock in 3L are not as optimistic for the year ahead.

Any drop in quota or stock means less product landed at the wharf, and less landed value.

"I can only hope for the best," Hedderson says of that fishery.

As for whether the industry will be worth another $1-billion in 2009, the minister says, "Our product is as good as anything in the world. The appetite is there for it; the demand far exceeds what's there.

"I can only hope that through our marketing efforts, and good luck, that we will again be able to say this time next year that we're on par or exceeded (the industry value)."