NLIS 5
May 20, 2004
(Fisheries and Aquaculture)

 

Minister clarifies situation surrounding damage to lobster pots

A lot of work has to be done before it can be determined whether fishers who lost lobster pots can qualify for government compensation, advises Trevor Taylor, Minister of Fisheries and Aquaculture.

An undetermined number of lobster pots were damaged or lost in storms on the west coast of the island on April 20 and May 8, 2004. Some federal politicians have publicly indicated that fishers will qualify for compensation through the federal government�s Disaster Financial Assistance Arrangements (DFAA). The DFAA was the program under which arrangements were announced on Monday for relief for Badger residents who were impacted by a flash flood in February 2003. Other qualifying events include the Red River flood in Manitoba (1997) and the Quebec and Ontario ice storm (1998).

The Newfoundland and Labrador Emergency Measures Organization (NLEMO) and the Department of Fisheries and Aquaculture are working to identify whether the west coast damage will qualify under the DFAA. A prerequisite for eligibility includes the provincial government�s current work with Environment Canada to determine the extent and magnitude of the storm, and if it can be classified as an abnormal event. The DFAA program, provided by Public Safety and Emergency Preparedness Canada, has rigid stipulations. Any damage must be within a defined area. It may not occur within the parameters of ordinary risk of a trade. Losses must have occurred during a single-event disaster. The damage is ordinarily inspected by federal and provincial officials. Estimates must be prepared and appraisal forms must be submitted. When water is involved, it is often difficult to identify pre-disaster conditions, and typically a case-by-case approach is undertaken.

"The suggestion has been made by some federal politicians that recent damage to lobster pots will qualify for compensation under the Disaster Financial Assistance Arrangements. Such public comments, to say the least, were overzealous," said Minister Taylor. "The reality is that the federal government�s disaster program has strict stipulations. For example, due to the nature of the fishery, accurately documenting loss is difficult to do when many of the lobster pots have vanished completely.

"We are in the process of identifying whether the lobster pots that were damaged or destroyed by storms on the west coast on April 20 and May 8-9 would qualify as a single event disaster. In the meantime, I have written to my federal counterpart, Minister Regan, to impress upon him the seriousness of the situation."

The NLEMO will administer the claims process and settlements. In the event that it is determined that these events do qualify under the DFAA, then the province would need to assess its ability to commit its share of a cost-sharing formula. For example, if the total value of claims were $2 million, then the province would be responsible for $1.15 million. The lower the amount of the damage, the greater the proportion the provincial government would pay. Lobster pots destroyed in other storms elsewhere in the province are separate environmental issues that do not qualify under the DFAA. Minister Taylor is on record in the House of Assembly stating that the province does not have the means to provide assistance outright.

Media contact: Alex Marland, Communications (709) 729-3733

2004 05 20                                       10:45 a.m.


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