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Northern shrimp capture. (Photo: Stock File)
LIFO policy is devasting NL economy, shrimp committee study confirms
CANADA
Monday, April 27, 2015, 01:50 (GMT + 9)
Members of the all-party committee on northern shrimp quota allocations met with Fisheries and Oceans federal Minister Gail Shea to present a report, titled Socio-Economic Impacts of Shrimp Quota Reductions in Newfoundland and Labrador, recently completed for the provincial Department of Fisheries and Aquaculture.
The review confirms the committee's position that the Federal Government's "last in, first out" (LIFO) policy relating to Northern Shrimp allocation decisions is having a devastating effect on the province's economy, particularly in rural regions.
"The all-party committee has shown leadership in seeking a fair approach to northern shrimp quotas and allocations. The information we presented to the federal minister makes a compelling case to end the LIFO policy, adopt an allocation method that reflects the value of both inshore and offshore fleets and results in greater benefits to the provincial economy," said Vaughn Granter, Minister of Fisheries and Aquaculture of Newfoundland and Labrador.
"The recently announced rollover of northern shrimp quota and allocations in Shrimp Fishing Area (SFA) 6 for 2015 allows time for Minister Shea and her officials to review this information in advance of decisions regarding next year's quota and allocations. I am hopeful we can work together with the Federal Government to develop a more equitable sharing arrangement for the northern shrimp resource," he continued.
The committee also identified various mitigation strategies to lessen the social and economic impacts of shrimp quota allocations on Newfoundland and Labrador. The socio-economic review shows that the only high impact mitigation strategy is an alternative allocation method such as restricting SFA 6 to the inshore only, or establishing a permanent allocation percentage within SFA 6.
"The economic impact of the LIFO policy on Newfoundland and Labrador is of grave concern and needs to be fully addressed by Minister Shea. It's clear that DFO has the responsibility in this case to initiate a dialogue with both inshore and offshore shrimp harvesters which would result in an alternative policy. By eliminating LIFO and replacing it with a new policy mechanism to ensure a fair sharing of the resource, the outcome will be a greater balance in the northern shrimp allocations," said Dwight Ball, Leader of the Official Opposition.
During the meeting with the federal minister, the committee reiterated its warning that continued application of the LIFO policy would result in a significant decline in inshore harvesting enterprises, a loss of five or more shrimp processing plants, displacement of several hundred workers employed as vessel crew and plant workers, and negative impacts for dozens of communities.
"I look forward to our continued work in getting the federal minister to recognize the urgency for the future of Newfoundland and Labrador rural communities and the growth of the province's economy of ending the LIFO policy. I have encouraged her to recognize, as is so clearly shown in the study released by government, that adopting an alternative allocation method is the best way forward for the people and communities of Newfoundland and Labrador," stated Lorraine Michael, Parliamentary Leader of the New Democratic Party.
Related articles:
- 'Modest' TAC increase for Northern shrimp fishery
- Newfoundland shrimp sector mobilizes provincial support
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Photo Courtesy of FIS Member  NOAA/NMFSborrar
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