May 20, 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:

Today I wish to inform the House of government's decision with respect to a call for proposals for the operation of the middle-distance vessel, the Nain Banker. This vessel, constructed at Marystown, is the last of four such vessels that remains under effective control of the province.

As honourable members may remember, the vessel was leased in 1997 to the Torngat Fish Producers Co-operative for a two-year period, with the company having an option to terminate the lease during that time. The Co-operative has exercised that right and notified government in February this year that it intended to terminate the lease effective March 8, for reasons internal to the company. Following this, advertisements calling for proposals for the operation of the Nain Banker were placed.

In considering proposals received both in 1997 and again this year, government gave priority consideration to the special needs of the fish processing sector in Labrador. A shortage of raw material for plants has been a chronic problem in Labrador. In this context, government maintains a policy that fish landed in Labrador must be processed in Labrador.

The Nain Banker is ideal for fishing off coastal Labrador, particularly for northern turbot. It was one of two middle-distance vessels used five years ago in an experimental project that proved the feasibility of such vessels prosecuting the deep water turbot fishery off Labrador. In fact, the turbot resource represents the only significant groundfish opportunity for Labrador plants.

I am happy to inform the House that the Nain Banker is being leased this year to the Labrador Fishermen's Union Shrimp Company Limited, based in L'Anse au Loup. This arrangement will supplement the supply of raw material for Labrador fish plants which have been largely dependent on landings from transient inshore vessels from the Island.

The shrimp company will utilize the vessel primarily for harvesting turbot off northern Labrador, for processing at L'Anse au Loup. The company has also begun discussions with the Torngat Fish Producers Co-op for the shrimp company to harvest Torngat's turbot quota on behalf of Torngat for the coming fishing season. This would benefit the plant in Makkovik, and possibly the one in Hopedale.

I must note, that a condition of the lease of the Nain Banker is that outside the operating season in Labrador, the shrimp company is required to make fish available on a competitive basis to more isolated plants on the Island, should such opportunities arise.

Labradorians must be given every opportunity to benefit from marine resources adjacent to them. Government's decision to lease the Nain Banker to the Labrador Fishermen's Union Shrimp Company is one such opportunity.

1998 05 20                     3:25 p.m.