Minister comments on challenges facing the shrimp industry

Gerry Reid, Minister of Fisheries and Aquaculture, today commented on the potential closure of the shrimp fishery in the province during July and August, 2001, due to the current market prices for shrimp which makes it unfeasible to process any quantities of the product.

"We recognize the challenges which are currently facing the shrimp fishery, as market prices for cooked and peeled shrimp have declined significantly over the past year," said Reid. "The 20 per cent tariff on Canadian shrimp entering the EU, the largest shrimp market in the world, places local producers at a competitive disadvantage. This government has made repeated representation to the federal government to make this a priority issue at the international level. We have received a commitment from Industry Minister Brian Tobin to undertake to organize a working group to address tariff issues, and we will continue to do everything in our power to make this a priority issue as it affects so many Newfoundlanders and Labradorians."

Government recognizes the value of the shrimp fishery to the people of this province, which affects 350 boats and some 1,500 workers at 11 plants across the province. Since 1997, the shrimp industry has become a major component of the fishery in the province, and government has consistently supported the promotion and growth of the industry. Since 1999, government has invested in the industry through the Fisheries Diversification Program by providing funding in the amount of $441,000 to the Seafood Market Council for market development.

The premier, deputy premier and senior officials met today with representatives of the Fish, Food and Allied Workers and the Fisheries Association of Newfoundland and Labrador, to determine what impacts the closure of this fishery will have on plant workers across the province. As well, discussions addressed longer term issues such as the necessity to remove the EU tariff and the development of marketing response mechanisms, as they relate to the future of the shrimp fishery.

"The challenges facing the shrimp fishery are certainly not unique to Newfoundland and Labrador. In fact, other jurisdictions such as Quebec have already tied up their shrimp boats in the face of unfavorable market conditions," added Reid. "We will be monitoring this situation very closely and are committed to working with all stakeholders, to ensure that the impact on affected workers in this province is minimized."

Media contact: Elizabeth Matthews, Communications, (709) 729-3733 or (709) 727-3438.

2001 06 21                                                                3:30 p.m.