NLIS 5
December 13, 2005
(Fisheries and Aquaculture)
 

Government releases report by RMS review committee chair

Tom Rideout, Minister of Fisheries and Aquaculture and Deputy Premier, today released a report on the raw material sharing (RMS) pilot project conducted during the 2005 fishing season. The report was developed by RMS review committee chair Richard Cashin, who was commissioned by government to evaluate the crab sharing pilot project in the context of the province�s overall fishing industry.

The report recommends that government end the RMS system and contains 16 further recommendations on collective bargaining in the fishing industry, general industry issues and federal-provincial policy.

"This is an extremely important and thorough report," said Minister Rideout. "As promised last May, government will accept Mr. Cashin�s recommendation on RMS. His report raises many points that support why government tried the crab sharing system, but acknowledges that, without cooperation, the system cannot work and therefore should be discontinued.

"The report also contains many other important recommendations, including legislative changes, which we will seriously consider. These recommendations have far-reaching implications for both government and industry which is why government must thoroughly analyze the report before making final decisions."

As an alternative to RMS, the report proposes that all parties explore a production limitation system and encourages increased cooperation in transferring and distributing available raw material as a means to address the ongoing serious challenges within the province�s seafood industry. Overcapacity in the processing sector, declining prices, unfavourable exchange rates and the possibility of the federal government cutting quotas are significant concerns.

"If this crisis situation is to be addressed, harvesters and processors must find a way to work together to make a production limitation system work," said the minister. "Our government is willing to facilitate opportunities for improved relations between the harvesting and processing sectors, but we are calling upon industry to look carefully at the report and demonstrate leadership that will provide a brighter future for everyone who depends on our fishery."

The fishing industry has traditionally been the backbone of the provincial economy, particularly in rural areas.

"Government is very concerned about recurring crises in our fishing industry," said the minister. "We place the utmost importance on the fishery and hope to use this report as a tool to help move the industry forward."

Media contact: Lori Lee Oates, ABC, Communications, (709) 729-3733, 690-8403

BACKGROUNDER

In response to government�s increasing concern with the crisis situation facing the province�s fishing industry, a two-year Raw Materials Sharing (RMS) pilot project for snow crab was introduced on March 2, 2005, as a means of stabilizing the crab fishery. The introduction of the RMS pilot project was a recommendation of the Fish Processing Policy Review.

Fish harvesters demonstrated a strong opposition to RMS and, as a compromise, government reduced the project from two years to one year on April 29, 2005. At that time, government also offered to establish an independent review committee which would be tasked with managing the implementation of the RMS system and gathering broad advice on whether or not it should proceed in 2006.

On May 10, 2005, government appointed Richard Cashin to chair the RMS Review Committee, oversee and review the pilot project, and report back to government. The overall mandate of Mr. Cashin was to evaluate the snow crab raw material shares pilot project and make recommendations to government on a future course of action. Government agreed that it would abide by Mr. Cashin�s recommendation with respect to the future of RMS, and take under consideration any other recommendations regarding the fishing industry as a whole.

The RMS Review Committee was comprised of Reg Anstey, as a representative of fish harvesters, Derek Butler representing fish processors and Eric Dunne as a government representative. The role of the committee was to assist Mr. Cashin in the evaluation of RMS and the development of recommendations.

The terms of reference established between government and Mr. Cashin stated that the RMS review would consist of the following four components:

  • Monitoring of the RMS system throughout the balance of the season;
  • Evaluating the RMS at the end of the season;
  • Recommending a future course of action to Government on the RMS system; and,
  • Recommending on such other related matters as may be appropriate.
  • The committee was also tasked to take into account the views of all interested parties.

    The report is available, in its entirety, online at www.gov.nl.ca/fishaq/CashinReport/.

    2005 12 13                          2:30 p.m.


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