December 2, 1998
(Fisheries and Aquaculture)

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

I have risen in this legislature on a number of past occasions to inform Honourable Members of significant ongoing developments in the fishing industry. On these occasions I have also made repeated reference to the challenges which the groundfish moratoria have had on individuals and communities throughout our province. I have also outlined government's vision of the fishery of the future based around professional fish harvesters, private sector investment, and the withdrawal of government subsidies.

All too often our society is not inclined to view private sector investment in the fisheries sector from the same perspective as investment in other sectors of the economy. Yet this investment gives rise to solid employment opportunities in our rural economy. Since the moratorium we have made solid progress in the rebuilding of the fishing industry around new resource opportunities. These opportunities are being developed and are having a profound impact on our provincial economy as evidenced by the fishing industry's export value of approximately $600 million projected for 1998.

We should all be encouraged by the level of private sector investment made in these fisheries opportunities in the past 12-18 months. These investments are giving a new face to the fishing industry - an industry which is internationally competitive, quality conscious and progressive especially in terms of the adoption of new technology and value added initiatives. Challenges remain, but I have every confidence that the progress made over the past several years, and which continues to be made, will help place the industry on a solid footing for the future.

I want, by way of example, to illustrate the kinds of private sector investment that are being made in the processing sector of the industry. We now have some of the most modern cold water shrimp processing plants in the world on the basis of approximately $60 million in new capital expenditures made by the private sector. In 1999 nine shrimp plants will have the capacity to readily process all available inshore landings together with industrial shrimp that may be available from the offshore fleet sector. These are located at St. Anthony, Port aux Choix, Anchor Point, Black Duck Cove, Clarenville, Port Union, St. Joseph's, Bay de Verde and Old Perlican.

These new processing sector investments are not only taking place in the shrimp fishery. Approximately $3 million has now been invested in world class seal tanning capacity at Catalina and Springdale. Again, we will be competing "head to head" with our principal competitors in world markets for fully cured and tanned seal furs. The investment in new species processing opportunities for such species as whelk and sea urchins is also most encouraging. Upwards of $1.2 million in new investments have been made in new processing capacity for these species thereby further diversifying the range of value added products produced within the industry.

These investments are complementing the progress being made in other traditional sectors of our fishery. I also note that new investments continue to be made in the crab processing sector where, in the past year, approximately $8-10 million in plant upgrading/modernization has been invested.

In short, I am happy to report that in excess of $75 million has been invested by the private sector in the processing sector of the fishing industry over the past 12-18 months. In addition, fish harvesters have invested well in excess of $50 million in upgrading and modernizing their vessels. This is clear evidence of a renewed confidence in our fishing industry; an industry which remains the engine of growth in our rural economy; an industry which is generating solid employment opportunities; and, above all; an industry which has further potential to generate new employment and investment opportunities.

1998 12 01                   2:15 p.m.