May 13, 1999
(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'd like to take this opportunity today to inform my honourable colleagues that the outlook for the Newfoundland and Labrador fishing and aquaculture industries for 1999 is a positive one. All indicators this year, point towards continued growth and strengthening of our fishery. This growth is the result of many things, including the professionalization of the industry and our Quality Assurance Program.

Last year, the fishing industry pumped $700 million into our provincial economy and I am proud to report that we are optimistic that we will experience an additional $100 million in export value this year. This means an export value of close to $800 million for Newfoundland and Labrador fish products in 1999. This is great news for our province as the fishery continues to be a major contributor to the economy.

Our continued improved industry performance, which saw approximately 27,000 people employed directly in the fishery last year, is largely due to our inshore shrimp fishery and crab fishery. The strong performance of these fisheries has brought back increased confidence in our province's fishing industry. In 1998, the private sector invested $110 million in harvesting and processing and there will be 11 shrimp processing plants on stream in 1999. I believe that if our shrimp and crab resources are managed properly and we continue on with our trend to developing a multi-species fishery, the opportunities to make a reasonable living for those who remain in the fishery will continue to improve.

The 1999 quota for inshore shrimp was increased to 41,029 tonnes from 29,840 in 1998. The 1999 crab quota is 61,185 tonnes, up from 49,000 last year. The ground fishery is experiencing slow recovery overall but there are signs of recovery in some areas including the stocks in 3Ps. The 3Ps cod stock has recovered to where a substantial commercial fishery is now possible. The TAC for 1998 was 20,000 tonnes and we are anticipating an increase in the quota when the federal government announces the 1999 quota very shortly . The Fisheries Resource Conservation Council recommended last week that the TAC for the south coast fishery in 3Ps be increased to 30,000 tonnes.

With the increases in crab and shrimp quotas, and an anticipation of an increase in the 3Ps cod stock, we expect approximately 285,000 tonnes of fish to be landed in 1999, with an estimated landed value of about $450 million. We have worked hard to achieve a regional balance in terms of the number of fish plants around the province. I should say that when I became minister in 1996 there were approximately 240 licensed primary processing plants. The number of licensed plants has now been reduced to 169 with 127 showing production in 1998. I am confident that we will achieve further consolidation in the processing sector through our core/non-core processing licensing policy.

Peak monthly employment in the processing sector totaled 13,400 in 1998 with average monthly employment at 6,200. Our objective is to increase, over time, the duration of employment for these employees. In 1997, plant workers obtained 6.6 million person hours of work and this increased to eight million hours in 1998.

Our aquaculture industry is growing and it has the potential for new opportunities in Newfoundland and Labrador. Like all new industries, there are challenges, but we are confident about this industry's future. In 1998 the province's aquaculture sector produced 2,700 tonnes of product, with an estimated market value of $12.9 million. We are anticipating a 57 per cent increase in production in 1999 and a market value of approximately $16 million.

Of the 2,700 tonnes of product last year, 1,000 tonnes of mussels were produced for a market value of $1.9 million; and we are proud to report that mussel production is expected to double in 1999. Salmonid production had a market value of $10.5 million last year and we are projecting that amount to increase to $13 million this year.

It's important to point out that all aspects of our fishery be managed in a quality conscience manner. We have made major inroads in terms of our quality enhancement initiatives and we are confident that only premium products will continue to be landed and produced during 1999. The disciplined approach we have been taking in producing and selling our products has benefitted the industry greatly and resulted in positive market response. Our quality assurance measures ensure that we get the maximum value of our fish resources.

The success of our fish price settlement pilot project had a very positive impact on our fishery last year, with early fishery openings and orderliness throughout the season. The pilot project also proved very successful for 1999 and all parties involved in this process are to be commended. Fish prices have been settled for a number of species and negotiations are ongoing for others, this translates into our fisheries opening on a timely basis again this year, thus providing maximum harvesting and processing employment opportunities for people throughout the province. As a result of our price settlement mechanism, we are supplying the markets with premium products on a timely basis, which is vital to the future of our fishing industry.

We are optimistic that 1999 will be another great year for the fishing industry in our province - a professional fishing industry that is now being driven by private sector investment. The professionalization of our fishery will continue to contribute to the development of a multi-species fishery.

In 1999 and beyond, we will continue working towards obtaining full economic benefits from harvesting, processing and marketing of our marine resources. Our fishery has always been and will always be the backbone of Newfoundland and Labrador.

1999 05 13                     2:30 p.m.