May 19, 1998
(Fisheries and Aquaculture)

The following statement was issued today by John Efford, Minister of Fisheries and Aquaculture. It was also read in the House of Assembly:

On Friday past, May 15, my federal counterpart announced the 1998 management plan for northern shrimp. I am pleased to inform Honourable Members that for the second consecutive year, our inshore fishing sector is the major beneficiary of a significant quota increase.

The northern shrimp fishery, because of a major increase in its biomass, presents one of the major fisheries development opportunities for our province. For this reason, the province has made the strongest of representations to the Government of Canada insisting that this province be the principal beneficiary of any quota increases. I am glad to report that the Minister of Fisheries and Oceans has announced increases that have achieved our objective.

Last year, due to the northern shrimp quota increase, the inshore sector on the northeast coast of the province was granted access to the lucrative stock for the first time ever, with a quota of about 10,000 tonnes. As a result, more than 80 vessels with total crews of 350 harvesters participated in this new fishery in 1997, and another 400 people were employed in the shrimp processing sector. Considering the fact that the inshore shrimp fishery didn't start until July last year, this was a remarkable development.

This year, this province will again receive approximately 90 per cent of the 23,100 tonne increase in the quota. And again, the inshore sector will receive virtually all of the increase. In fishing area six off the northeast coast and southern Labrador, the total allowable catch has been doubled for a total of 46,200 tonnes. Ninety percent of the increased allocation will be available to owners of inshore vessels, and another 312 tonnes will be available to that sector in fishing area four in northern Labrador waters.

In total, our inshore fleet now has access to approximately 33,000 tonnes of northern shrimp, whereas two years ago this fishery did not exist for that sector.

For the second consecutive year, this new inshore shrimp fishery will generate new employment and investment opportunities both at sea and on land. I anticipate that 1,000 fish harvesters will participate in this year's fishery, and approximately 1,000 or more will be employed in the processing of shrimp before year's end as new shrimp plants come on stream.

I also note that the private sector's confidence in this fishery is demonstrated by the fact the processing sector has invested tens of millions of dollars into plant expansions or conversions to take advantage of the new opportunities that northern shrimp is providing. These investments are taking place at such locations as Port aux Choix, Anchor Point, St. Anthony, Port Union, St. Joseph's, Clarenville, Charlottetown in Labrador, Bay de Verde, Valleyfield and Old Perlican. Clearly, this will be of economic benefit in these rural areas.

I must also point out that in order to maximize the employment benefits from this new industry, I have made it a policy this year that all shrimp must be cooked and peeled before it is exported. Some flexibility will be provided for the processing of whole cooked shrimp in a final product form as well. This, combined with the increased quota for the inshore, and the fact that an early price settlement for shrimp allows for a timely harvest, will also have the additional benefit of placing our industry on a stronger footing in the marketplace.

This new inshore shrimp fishery is welcome news indeed for our fishery and our economy. It will have a landed value of approximately $50 million this year, and an export value of upwards of $100 million.

1998 05 19                  2:20 p.m.