June 13, 1996
(Fisheries and Aquaculture)

Crab licences announced for three multi-species regional plants

Three fish plants are being issued new processing licences for snow crab, making the plants multi-species regional plants, Fisheries and Aquaculture Minister John Efford announced at a news conference in St. John's today.

The new licences go to plants at St. Lawrence, Burgeo and Benoit's Cove, all in regions where no plants have licences to process snow crab.

Mr. Efford said that of the 19 licences currently active to process snow crab, three are in Labrador, with the other 16 concentrated along the Northeast Coast and the Avalon Peninsula where the snow crab fishery first started.

"Clearly, we have an imbalance in regional distribution of snow crab processing licences. There is not one snow crab processing licence on the West Coast, not one on the Burin Peninsula, not one along the South Coast. Today that will change," Mr. Efford said, noting that landings in those areas have increased in recent years.

The three plants, when fully operational in the processing of crab, could generate a combined workforce of upwards of 500 workers. The minister said this is important to economic development in these regions and communities, particularly in the case of St. Lawrence where the plant has not operated since 1992, and in Burgeo where the plant has been closed since 1993. In the case of the plant at Benoit's Cove, the new licence will augment other continuing processing operations.

"In shaping the fishery of the future, the Government of Newfoundland and Labrador is committed to ensuring that there is a regional distribution of benefits from the fisheries sector. The role of regional, multi-species plants will be emphasized" he added.

The minister pointed out that with the snow crab resource appearing to be in a very healthy state, the quota has been increasing for several years, with this year's quota being about 6,000 tonnes higher than last year's. Landings have practically tripled since 1990. Despite all that, he said, there has been a freeze on new snow crab licences since the early 1980s, except for one issued in 1990 to facilitate development of a new resource adjacent to Cartwright in Labrador. Licences have been issued for other crab species (rock crab, toad crab, Atlantic king crab, porcupine crab) in keeping with government policy to develop fisheries for underutilized species.

Mr. Efford emphasized that the plants receiving the new licences will not process snow crab alone. "They are not crab plants. They are multi-species operations, with the ability to process pelagics, shellfish and all species of groundfish.

"Our fishery must be rebuilt around regional multi-species operations. Government is confident that this regional, multi-species plant approach will be the basis of a stronger, more viable fishery in the future. This will ensure longer employment periods and higher levels of earned income for plant workers," he said.

Mr. Efford said that government places high priority on ensuring that quality is the number one priority for fish and seafood products. He noted that last year the quality of crab suffered because too much The minister also noted that over the next several months, the Fishing Industry Renewal Board will be conducting public consultations on all aspects of processing capacity. "My announcement today will not compromise on this process," he said.

Mr. Efford also praised the community, plant worker and company representatives for their commitment to making a success of the plant operations. "Without their cooperation and commitment, I would not be making this announcement today," he said.

The St. Lawrence plant, owned by the provincial government, is being leased to Grand Atlantic Inc. Seafreez owns the Burgeo plant, and Allen's Fisheries Limited owns and operates the plant at Benoit's Cove.

The minister indicated that while this announcement is the beginning of a more regionally-balanced, multi-species plant approach, further licensing policy changes are under consideration.

Contact: Josephine Cheeseman, Director of Public Relations (709) 729-3733.