Federal Government Ignores Principle of Adjacency
in Application of Northern Shrimp Quota

Today, the Honourable Clyde Jackman, Minister of Fisheries and Aquaculture, responded to the announcement made this week by the Honourable Gail Shea, federal Minister of Fisheries and Ocean, in relation to the northern shrimp quota for shrimp fishing area six. The Federal Government decision to ignore the principle of adjacency in determining allocations for this area will be detrimental to Newfoundland and Labrador said the minister.

"Against the advice of our government, the federal Minister of Fisheries and Oceans has decided to apply a last-in first-out approach to quota allocation reductions," said Minister Jackman. "This approach provides a greater level of protection for the offshore sector rather than the inshore fleet. The impact of this approach is that one group in the province is losing access and the province's inshore harvesters will see their allocation reduced by 18,000 tonnes. There are principles of quota distribution that are far more important to maintain than the last-in first-out approach. The principle of adjacency must be paramount."

Newfoundland and Labrador is the only province adjacent to this shrimp fishing area. There are approximately 1,500 harvesters and 2,600 plant workers involved in the cooked and peeled shrimp industry in this province. The employment and revenue generated from this fishery is extremely important to rural areas of the province. The North of Fifty-Thirty Association on the Northern Peninsula will be significantly impacted by the loss of this allocation. This association is a group of groundfish dependent enterprises that were given access to a shrimp quota in 2003. This allocation generated revenue for approximately 350 inshore enterprises from the communities of River of Ponds to Englee. These enterprises have been hit especially hard by the recent decline in lobster prices and the low lumpfish and cod catches.

The inshore sector was made a permanent participant in the Northern shrimp fishery by the Federal Government in 2007 and therefore should not be subjected to the last-in first-out approach. Having the inshore fleet take a disproportionate reduction in their quota will seriously jeopardize their ability to participate in this fishery. This will also impact many other regions of the province that depend on this shrimp for processing activity.

"We are pleased that the Federal Government did continue to provide access for the Innu Nation of Labrador and the Fogo Island Co-op," said Minister Jackman. "However, the continuation of the last-in first-out approach will mean these quota holders will be removed should the expected decline in the overall quota occur in coming years."

On April 26, Minister Jackman wrote Minister Shea to explain the Provincial Government's position on the northern shrimp quota for 2010. This took place immediately following the meeting of the Northern Shrimp Advisory Committee in St. John's. This committee recommended a substantial reduction in the total allowable catch for shrimp fishing area six. Both the Provincial Government and the province's fishing industry supported this quota reduction based on scientific advice and the requirement of the Marine Stewardship Certification. However, the province also took the position that those adjacent to the resources should have priority access. This has consistently been the provincial position across all fisheries.

"I advised the Federal Government that the Government of Newfoundland and Labrador did not support removal of any adjacent quota holders from this fishery," said Minister Jackman. "We asked that Minister Shea consider the economic importance of this resource to the people adjacent to it. The impact of this decision will cause hardship for harvesters and seafood processors in this province, particularly on the Northern Peninsula.

"The Federal Government is aware that our province has been experiencing a very difficult year in the fishing industry," added Minister Jackman. "While we understand that there are challenges in other areas, decisions which reduce our access to adjacent resources raise serious issues and concerns for the Newfoundland and Labrador fishery. Our government will continue to recommend adjacency to the resource as a primary consideration in the setting of quotas."

- 30 -

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

2010 05 19                                                    9:35 a.m.