Province responds to Harrigan report on TAGS impacts in Atlantic Canada

Beaton Tulk, Minister of Development and Rural Renewal and Chair of the Cabinet Committee on Rural Revitalization, responded today to Eugene Harrigan's Post TAGS Review Report on the impact of the program and its pending termination on Atlantic Canada. Minister Tulk said: "My initial assessment of the Harrigan Report is a very positive one. It clearly illustrates the major social and economic upheaval being experienced by the people of rural Atlantic Canada and in particular Newfoundland and Labrador. Mr. Harrigan's `outside objective' view clearly shows that this is a federal responsibility and requires an `extraordinary' solution to the devastation caused by the collapsed groundfishery." The minister confirmed that government will take the next few days to review the report in detail but said: "It is clear, Mr. Harrigan has laid out an obvious course of direction for the federal government to deal with this problem."

"Harrigan has confirmed what the province has been saying for the past several months," said Mr. Tulk. "People in this province, and indeed throughout Atlantic Canada, are very concerned about their future, and about the future of their communities and their youth in particular. Mr. Harrigan points out that TAGS clients are not people who want government handouts, but rather are hardworking people who want to work and who would take work if they could find it."

The report spells out the scope of the impact of the closure of the Atlantic groundfishery saying it is unprecedented in recent Canadian economic history. The report also says a large percentage of the most heavily reliant clients appear to have little prospect of alternative employment, either because of their age or educational profile. The situation, Harrigan says, is most acute in Newfoundland and Labrador, where about 79 per cent of all TAGS clients categorized as heavily reliant on TAGS reside, leading to the highest level of anxiety being in this province. With groundfish stocks not having returned to pre-moratorium levels, many individuals will be in dire financial circumstances unless support is continued, said the report.

People also view the fisheries crisis and its response to be a legal and moral obligation on the part of the federal government, arising from its responsibility for management of the fishery. "According to the Harrigan report, the continuation of TAGS in its current form is not the solution. I agree with the people who have said a `one-size-fits-all' approach must be avoided," said the minister. "There must be a greater emphasis on long term adjustment for individuals, families and communities. If rural Newfoundland and Labrador is to remain viable, a major emphasis must be on community-based economic diversification, both within and outside the fishery."

Specifically, Harrigan reports that there is strong support for an early retirement and licence buy out scheme, self-employment assistance for younger clients, community economic development assistance to increase long-term local employment prospects, as well as mobility assistance for those opting to leave.

The minister said the fishery crisis is clearly a long term problem which requires an extraordinary response, and he commended the objective perspective brought by Eugene Harrigan and his team. "It is very evident from his report that he spent a great deal of time talking to the people who have been affected by the moratorium, and that he placed a lot of credibility in what he heard."

Mr. Tulk said: "It is clear that the federal government has to take immediate action to develop and implement a substantive response program to follow up TAGS. The Harrigan report underscores the urgency by clearly illustrating that rural families and communities in Newfoundland and Labrador have been seriously affected by the groundfish closures, and will be severely impacted by the termination of the TAGS Program. I urge Minister Pettigrew to work with the provincial government to develop a new program that will replace TAGS, so that families in this province can again have a sense of security about themselves and their communities, based on a return to employment."

Contact: Karen McCarthy, (709) 729-0110.

BACKGROUNDER
Selected Quotes from the Harrigan Report

the primary goal of virtually every TAGS client is to find work. TAGS clients are not people who want government handouts; these are hardworking people who want to work and who would take work if they could find it. Page 7

In general, people are very concerned about their future, about the future of their communities and, in particular, about the plight of young people in their communities. Page 6

There is strong support for an early retirement and licence buyout scheme, self-employment assistance for younger clients, community economic development assistance to increase long-term local employment prospects, as well as mobility assistance for those opting to leave. Page 7

There is a high expectation for follow-up assistance with a majority view that support should be active not passive, and that it should be transitional, with employment as the main outcome. Page 7

There is widespread anxiety that, because the groundfish stocks have not returned to pre-moratorium levels, many individuals will be in dire financial circumstances unless financial support is continued. Page 7

The situation is most acute in Newfoundland, where about 79 per cent of all TAGS clients categorized as 'heavily reliant'reside. A large percentage of the most heavily reliant clients appear to have little prospect of alternative employment, either because of their age or education profile.Page 8

Even those who would not directly benefit from a continuation of income support advocate some form of continued assistance for the most affected individuals in their communities. Page 8

It is widely believed by fishers and plant workers that TAGS income support is both a legal and moral obligation on the part of the federal government arising from its responsibility for management of the fishery. Page 8

One of the strongest messages from the consultations is that government policy makers must avoid a `one-size-fits-all' approach when they consider options for the post-TAGS environment. The situation differs greatly from place to place, influenced by such factors as the relative strength of the local and regional economies or the availability of alternative employment, either inside or outside the fishery. Page 79