I rise today to update my honourable colleagues on the successful fish price negotiations which have recently been completed between fish harvesters and fish processors in the province.

In 1997 the Task Force on Fish and Crab Price Settlement Mechanisms was appointed to investigate price setting in the fishing industry. There had been a number of disruptions in the fishing industry resulting in an inconsistent supply to the market place and lower quality product.

The task force�s report was presented to government on January 15, 1998 and the chief recommendation was to implement a three-phase interest-based approach to negotiations on a pilot project basis.

Following the success of the pilot project between 1998 and 2000, a new fish price settlement mechanism for collective bargaining was devised for the fishing industry.

Referred to as the Final Offer Selection model, this process was designed by the Department of Fisheries and Aquaculture, the Department of Labour and industry stakeholders, including the Fish Food and Allied Workers and the Fisheries Association of Newfoundland and Labrador. All stakeholders agreed to implement this process on a permanent basis, and in June 2000, the Fish Industry Collective Bargaining Act was legislated into effect.

This process has proven to be both an efficient and equitable way in which to determine fish prices. Since the introduction of the process all major fisheries have started on time.

So far this year, prices have been successfully negotiated for crab, shrimp and cod for the 2001 season. Crab prices were negotiated using a price to market formula, and will be in place for the remainder of the season. Shrimp prices were negotiated for the period from April to June, and an arbitrator set prices for cod for the same period.

Prices for other species to be negotiated this year include capelin, herring, mackeral, lumpfish, squid, and some groundfish species. These negotiations will begin in early April.

This government has been pleased to work with the FFAW and FANL in developing and implementing this process which serves to benefit and enhance the fishery in Newfoundland and Labrador.

2001 03 21                                  2:20 p.m.