Fisheries and Aquaculture
June 13, 2008

Provincial Government Providing Funding for Voluntary Fish Auction Pilot Project

In continuing to fulfill its commitments under the Fishing Industry Renewal Strategy, the Provincial Government is providing funding to implement a voluntary fish auction pilot project.

The pilot project will be implemented by the Fish Harvesters Resource Centre (FRC), which will act on behalf of all harvesters and processors. An independent company called North Atlantic Seafood Auctions Incorporated has been established to administer the auction. The Provincial Government will provide funding for the pilot initiative through a grant of up to approximately $84,000.

"Our government is pleased to be moving forward with another element of our Fishing Industry Renewal Strategy," said the Honourable Trevor Taylor, Acting Minister of Fisheries and Aquaculture. "In an auction system, fish prices are determined based on fish quality and therefore provides an incentive to fishers to land the highest quality seafood possible. This increases the overall viability of the industry. Auctions have been used in jurisdictions such as Norway, Iceland, the Faroe Islands and the United States, where they have certainly proven this to be true. For this reason we are moving forward with an auction pilot project in Newfoundland and Labrador."

The pilot project will take place during the 2008 fishing season and is expected to run for 12 weeks. It will operate from auction ports at Fortune and Burin and will focus on 3Ps cod.

"This pilot is important in that it will allow us to assess the effectiveness of an auction in our fishing industry," said Minister Taylor. "Auctions can be very useful and we encourage the industry to participate. However, we must recognize that this is a pilot project and is very much a developmental initiative. There will undoubtedly be issues and challenges to resolve as we move forward and we encourage harvesters and processors to work with us to overcome any challenges that may arise."

North Atlantic Seafood Auctions Incorporated will be guided by a Board of Directors which will include representation from all sectors of the industry. It will include three members from the processing sector, three members from the harvesting sector, one member from the FRC and two ex-officio members, one each from the Department of Fisheries and Aquaculture and the Department of Fisheries and Oceans.

"We are pleased that the province is supporting our pilot project for an auction in the 3Ps cod fishery during 2008," said Wade Rogers, Chairman of North Atlantic Seafood Auctions Inc. "This project will lay the foundation for both harvesters and processors to increase the value of this resource and enhance Newfoundland and Labrador�s reputation for quality in the international seafood marketplace."

Following the completion of the pilot project, a final report will be presented to the Provincial Government which will provide an overview of the results, and recommendations on improvements and the future viability of fish auctions in general.

"Fish auctions have been considered for many years, but have never been used in the inshore sector in this province," said Minister Taylor. "However, an auction system was used in the province�s Middle Distance Fleet in the late 1980s with considerable success. Therefore, I look forward to the results of this initiative, so that we can properly determine what role, if any, fish auctions may play in the long term."

Under the Fishing Industry Renewal Strategy, the Provincial Government allocated $1.5 million over three years for the implementation of fish auctions. The strategy was announced on April 12, 2007 and, in total, includes a $140 million undertaking by the province.

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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 

 

2008 06 13                                                    10:15 a.m.


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