March 23, 1998
(Fisheries and Aquaculture)

The following statement was issued today by E. John Efford, Minister of Fisheries and Aquaculture. It was also read in the House of Assembly:

Statement Related to the Impending Termination of TAGS
and the
Report of the Standing Committee on Fisheries and Oceans

The severe impacts of the groundfish collapse are being felt throughout Newfoundland and Labrador. The scheduled termination of the TAGS Program in August and the establishment of a replacement program remains one of the most significant public policy issues facing this province today. I wish to assure the people of Newfoundland and Labrador that their provincial government remains vigilant on this issue and intends to continue to press the federal government for a well structured and substantive response program to replace TAGS.

The province continues to engage in an ongoing dialogue with the federal government on this issue. We intend to remain cooperative in providing our advice on the appropriate structure for a replacement program, while continuing to impress upon the federal government their overarching responsibility for the resolution of the crisis created in rural Newfoundland and Labrador as the result of the groundfish collapse. Given the anxiety being created by the impending end of TAGS, we also feel it is incumbent on the federal government to announce its intentions with respect to a replacement program as quickly as possible.

The province has been clear, in stating that a fundamentally different approach to the existing TAGS program is required to address the longer term challenges related to the collapse of the groundfish stocks. We have consistently stated that we believe that a new program must be comprised of five principal components.

Firstly, it is clearly evident that income replacement must be a major component. Most people will be unable to resume their participation in the traditional fishery in the near future, and in many of our communities there are few employment alternatives available at this time to replace all the jobs lost in the groundfish sector.

This reality gives rise to the second element, namely economic diversification. A major new program of economic development and diversification is needed to provide new opportunities in our regions. This is absolutely critical to the continued viability of families and rural communities which have been most severely affected by the groundfish closures. Thirdly, a post-TAGS program must support employment adjustment and training for those people who see this as a viable option for them. However, this initiative has to be linked to real job opportunities.

But clearly, training is not the solution for everybody, particularly those who are older. Therefore, there must be an early retirement option to allow those older workers who have longstanding attachments to the fishery to have the opportunity to exit the fishery with a measure of dignity.

Finally, there must be a licence buyback program, to promote further rationalization of the harvesting sector.

Given the magnitude of the crisis and the elements necessary to bring about the necessary adjustment, it is clear that substantial new funding will be required. It is inconceivable to even contemplate that these needs can be met through existing government programs.

It has been reported by some media that a TAGS replacement program will be a hard sell in Ottawa. I want to make it clear that the province does not consider a post-TAGS program to be a hard sell. The Harrigan Report clearly illustrated the profound impacts of the groundfish crisis on our rural families and communities. I understand the Standing Committee on Fisheries and Oceans, in the report it will table today, has confirmed this conclusion and will place the responsibility squarely on the federal government's shoulders. The province fully concurs. The committee's expected recommendation of a voluntary retirement and licence buyback program is also consistent with our views, as is the recommendation of a multiyear economic stimulation program and the continuation of income support.

Clearly the Standing Committee's detailed recommendations will require careful review. This said, the focus on redirection of foreign quotas to Canadian interests will have only marginal benefits for harvesters, processors and communities, given the relatively modest foreign quotas in place today and the enormous losses which accompanied the closure of the groundfish fisheries.

In closing I wish to reiterate that a substantive and well designed post-TAGS program is an absolute necessity and an unquestionable obligation of the federal government. The province will continue to take all necessary steps to ensure that this obligation is met in a timely and effective manner.