NLIS 3
December 10, 2001
(Fisheries and Aquaculture)

 

Minister announces panel members for Structural Study 
of Inshore Shrimp Fishery

Gerry Reid, Minister of Fisheries and Aquaculture, today announced the panel members for the Structural Study of the Inshore Shrimp Fishery. The panel will be chaired by David Vardy, who will be assisted by Ross Peters and Brian Delaney.

"When the shrimp fishery reopened this fall, after being closed throughout the summer, I, along with FANL and the FFAW, committed to establish this panel to examine the challenges facing the shrimp fishery, with a view to recommending ways to improve efficiency and cost effectiveness in the industry," said Reid. "I am pleased today to announce the panel members, both of whom are respected and competent individuals. I am confident that, in accordance with the Terms of Reference, they will undertake a complete and detailed study into this industry which will benefit both the fishery and the people of Newfoundland and Labrador."

On July 3, 2001, the shrimp fishery in the province closed when the Fish, Food and Allied Workers (FFAW) and Fisheries Association of Newfoundland and Labrador (FANL) concluded that market conditions made it unfeasible to process and sell shrimp. After months of uncertainty for harvesters and plant workers, and unsuccessful negotiations between the FFAW and FANL, the government, at the request of the two parties, agreed to facilitate an agreement. As a part of the resolution, in addition to a pilot project for production caps, the three parties agreed to undertake a structural review of the shrimp fishery, which would involve stakeholders, to be completed early in 2002.

"Clearly, we still face challenges in the shrimp fishery," added Reid. "As such, we must continue to work together in our efforts to grow the shrimp fishery into a viable and sustainable industry for the benefit of the people of the province. The panel will work closely with both the harvesting and processing sectors in reviewing the current situation in the shrimp industry. I am confident that a consensus can be developed on how we should proceed to put this fishery on a positive track. The work of this panel will assist us in generating sound policies which are vital to the future of the industry."

"There are some serious structural problems in the shrimp fishery that have to be addressed," said Earle McCurdy, President of the FFAW. "A key aspect of this study is that it will be done with full, ongoing participation of elected fleet representatives, as well as with the processing sector."

"The Newfoundland and Labrador shrimp fishing industry is facing a number of serious structural challenges including overcapitalization and a serious imbalance between seasonal production and market demands," said Alastair O'Reilly, President of FANL. "FANL's expectations and commitment to the work of the panel is aimed at finding solutions that will provide for industry viability and sustainability. The work of the panel is critical to protecting the interests and the investments of industry's processors and harvesters."

"I look forward to receiving the panel's report in the new year," said Reid. "The work of this panel, combined with the recent report from the Special Panel on Corporate Concentration in the Fishing Industry, will certainly assist us in developing sound future fisheries policies, as we continue to grow this billion dollar industry which is the cornerstone of the economy of rural Newfoundland and Labrador."

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



BACKGROUNDER

Profile of David A. Vardy
David Vardy is a native of the Province of Newfoundland and Labrador and a graduate of Memorial University, the University of Toronto and Princeton University. Early in his career as an Economist, he taught at Memorial and at Queen's University and served in the Public Service of the Government of Canada, in the Departments of Fisheries and Finance. Over the past twenty-seven years, he has held a variety of senior positions at the Deputy Minister level in the Government of Newfoundland and Labrador, including President of the Marine Institute (currently an institute of Memorial University of Newfoundland), Deputy Minister of Fisheries, Chair and Chief Executive Officer of the Newfoundland Public Utilities Commission, and Clerk of the Executive Council, the most senior Deputy Minister position in the Province. 

Many of the positions held by Mr. Vardy draw upon his knowledge of the fishery of Newfoundland and Labrador. Several years ago, he chaired a task force on collective bargaining and price settlement in the fishing industry. The recommendations of the task force formed the basis for a new approach adopted by fish harvesters, the processing sector and by the provincial government for the settlement of fish prices and the resolution of disputes without industrial action such as strikes and lockouts. 

On July 5 of 2000, the Professional Institute of the Public Service of Canada awarded Mr. Vardy its Year 2000 Gold Medal Award. This award was made "for contributions to labour relations, economic development, resource management and education". His nomination by the Province of Newfoundland and Labrador was based in part on the successful outcome of the work of the Task Force on Collective Bargaining and Price Settlement in the Fishing Industry. Nominations for the Award are made by the provinces and by the federal government. The award presented to Mr. Vardy in July is one which is given every second year on the basis of the decision of an independent panel of adjudicators.

On June 14 this year, the Institute of Public Administration of Canada (IPAC) presented Mr. Vardy with the Lieutenant Governor's Award for excellence in public administration.

Earlier this year, Mr. Vardy prepared a report on the safety of small fishing vessels for Transport Canada. This report was based upon focus groups of fish harvesters throughout the Atlantic region. Just recently, he prepared a shrimp arbitration report, having been selected as the final offer arbitrator by both the FFAW/CAW and the Fisheries Association of Newfoundland and Labrador.

Mr. Vardy has been a member of the Panel of Eminent Persons appointed by the Minister of Fisheries and Oceans to examine a number of issues related to the management of seals. The panel was asked to advise on the management of seal populations in Atlantic Canada and on their impact upon prey species. In addition to Mr. Vardy, the panel was comprised of three eminent marine mammal scientists. 

Mr. Vardy recently retired as Chair and Chief Executive Officer of the Newfoundland Public Utilities Commission, a quasi-judicial tribunal that regulates the electric power industry in the province, and he presently serves as Channing Fellow in the Public Policy Research Centre at Memorial University. 


Profile of G. Ross Peters
Ross Peters was born in Springdale, Newfoundland and Labrador. Mr. Peters is a graduate from Memorial University and the University of Toronto, holding a variety of degrees in the sciences and engineering fields, and has a PhD from Aberdeen University. Mr. Peters served on the faculty of Memorial University from 1963 up until 1996, when he retired having served as Dean of Engineering and Applied Science for more than 10 years of his extensive tenure at MUN.

In addition to his academic career, Mr. Peters has held positions on the Canada-Newfoundland Offshore Petroleum Board and the Hibernia Environmental Assessment and Review Panel. Mr. Peters has also served on several advisory committees and boards, and has participated in numerous research projects with several professional publications to his credit. Among his published work, more than 30 were in the areas of fisheries research, ocean engineering and university-industry research and development linkages.

Mr. Peters continues to teach part-time at MUN. He lives in St. John's, and is married with four grown children.


Profile of Brian Delaney
Brian Delaney is the Director of Planning with the Department of Fisheries and Aquaculture. He was the Director of Research with the Special Panel on Corporate Concentration in the Newfoundland and Labrador Fishing Industry and was the Director of Research/Task Force Secretary with the Task Force on Price Settlement Mechanisms in the Fishing Industry Collective Bargaining Act. Other positions he has held within government include Senior Policy Analyst with Cabinet Secretariat, Planning Supervisor with the Department of Fisheries and Aquaculture, Economist with both the Department of Forestry and Agriculture and the Department of Fisheries and a Labour Market Researcher with the Economic Recovery Commission. He joined government in 1991.

Brian Delaney is a graduate of Memorial University with a BA in Economics. Currently, he is enrolled in the Master of Marine Studies, School of Graduate Studies, Memorial University.

Prior to his employment with government, he worked in the oil and gas industry and at Memorial University in the chemistry and geography departments.

He lives in Holyrood, Conception Bay.


Task Force to Study and Make Recommendations on the Structure 
of the Newfoundland and Labrador Inshore Shrimp Industry
(Panel on Inshore Shrimp)
Terms of Reference


Background

The Newfoundland and Labrador inshore shrimp harvesting and processing sector has undergone unprecedented growth with total production of cooked and peeled cold water shrimp increasing from approximately 7,000,000 lbs to over 100,000,000 lbs between 1997 and 2000. During this time, there has been more than $200 million of private investment in harvesting and processing capacity.

On July 3, 2001, the Newfoundland and Labrador inshore shrimp fishery closed when the harvesting and processing sectors determined that market conditions made it unfeasible to process and sell shrimp.

In late August, the FFAW and FANL reconvened to attempt to negotiate a price, whereby the fishery could reopen. The two groups were unsuccessful in reaching an agreement on shrimp prices, resulting in an arbitration decision in favour of FANL. Despite the arbitrator's ruling, the fishery did not resume. Recognizing the gravity of the situation and the negative impact on rural Newfoundlanders and Labradorians who work in the fishery, the government, at the request of the two parties, agreed to facilitate an agreement between the two parties.

A part of the resolution to reopen the fishery in the province, FANL and the FFAW entered into a Memorandum of Understanding in which it was agreed that the parties would cooperatively undertake a structural review of the shrimp fishery. The review will include recommendations aimed at improving efficiencies, cost effectiveness and marketing efforts in the shrimp fishing industry.

Objective

The Newfoundland and Labrador inshore cooked and peeled shrimp industry has experienced rapid growth since 1997 and is now comprised of 10 active, one inactive and two pending processing facilities which provide seasonal employment to approximately 1,800 workers and markets for the catch of some 380 inshore fishing enterprises. The objective of the structural review is to improve the efficiency, cost-effectiveness and competitiveness of the province's inshore shrimp industry.

Statement of Work

The task force will examine the Newfoundland and Labrador inshore shrimp industry in the context of the global competitive environment, and will make recommendations on matters including, but not limited to the following:

Processing 

1. Number and location of plants
2. Access to additional shrimp processing licenses
3. Utilization of processing capacity
4. Seasonality of the shrimp processing sector
5. Productivity
6. Employment levels and associated incomes of industry participants
7. Impacts of public sector fees and taxation

Harvesting

1. Seasonality of harvesting activity
2. Quality/yield
3. Structure of the harvesting fleet, including the number of vessels and vessel size
4. Viability of existing shrimp fishing enterprises
5. Utilization of harvesting capacity
6. Vessel financing
7. Impacts of public sector fees

Marketing

1. Impacts of tariffs and other barriers to trade
2. Opportunities for market development and growth
3. Mechanisms for improving the effectiveness of marketing efforts, including an analysis of marketing consortia
4. Funding requirements/options
5. Trade and countervail implications

This task force will submit an interim report on February 20, 2002, and a final report by March 31, 2002. 

The task force members include David Vardy, Chairperson, Ross Peters and Brian Delaney. Offices for the task force are located in the Petten Building, Strawberry Marsh Road. Support staff include Rose Ledwell as administrative secretary.

2001 12 10                        12:50 p.m.


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