In keeping with government�s commitment to provide a more stable economic environment for the fishery, the Provincial Government supports the reduction of taxes for fishers.

The Honourable Tom Rideout, Minister of Fisheries and Aquaculture, said, "The federal government has taken an important step that will be critical as we go forward in the fishery. Our government will support this move financially through our own reduction in revenue from fisheries taxes on an ongoing basis. We estimate that the financial impact of these new tax provisions will be cost-shared by the federal and provincial levels of government on approximately a 60-40 basis."

All federal Budget 2006 tax measures were recently passed into law, including this budget initiative for fishers. These new tax provisions mean that, effective from May 2, 2006, fishers will now be able to transfer their fishing assets to their children or grandchildren without incurring the cost of capital gains taxes. As well fishers will now be able to benefit from a $500,000 lifetime capital gains exemption, if they sell their assets to anyone else.

These new provisions will provide immediate assistance to fishers to ease the transfer of fishing property from one generation of fishers to the next. It will also assist harvesters who may wish to retire from the industry in selling their vessels. "This will help to sustain the fishery, families and fishing communities over the long term," said Minister Rideout.

"The fishery is a high priority for this government," said the minister. "It will continue to be a priority as we move forward in addressing the concerns of our resource industries and rural communities."

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Media contact:
Lori Lee Oates
Director of Communications
Department of Fisheries and Aquaculture
709-729-3733, 690-8403
oatesll@gov.nl.ca

2007 02 26                                                     4:55 p.m.